Budget concerns have forced Mexico to cancel as host of the 2017 World Aquatics Championships in Guadalajara, with organizers saying they cannot afford the US$100 million cost for the multi-sport event.
The federal government was set to provide the funding but recent austerity measures because of falling oil prices mean the money is no longer available.
Historically, one-third of Mexico’s public spending comes from its oil revenues and the price in crude has fallen by more than 50 percent, from US$115 per barrel in 2014 to US$46 per barrel in 2015. The drop has prompted spending cuts that make the hosting of a lengthy sporting event a difficult proposition for the federal government.
Although the cancellation will be a harsh blow for the image of Guadalajara and the state of Jalisco, Governor Aristoteles Sandoval backed the decision, saying the money is better spent on health and education.
The pullout means Mexico will have to pay a US$5 million fine to the International Swimming Federation (FINA). In addition, the US$9.5 million already spent on the event goes to waste.
The world championships were scheduled for July 15-30 at the Scotiabank Aquatics Center, built for the 2011 Pan American Games adjoining Guadalajara’s Metropolitano Park.
Guadalajara had successfully hosted those games and was awarded the world swimming and diving championships a few weeks later. FINA was impressed by the excellent indoor facilities at the Scotiabank Center that would greatly reduce costs for Mexico. Nevertheless, after careful consideration over the past few weeks, the federal government came to the conclusion that it simply could not afford the event.
The withdrawal leaves the organizers in a difficult situation. FINA Director Julio Maglione said the news “is very painful for us.” It is now unclear where the competitions will take place. U.S. Swimming Executive Director Chuck Wielgus denied rumors that his country could take the event. “We would love to host a long course world championships in the United States, but the economic requirements make it impossible for us to seriously consider.”