This is a good question that I have pondered myself. If you ask a vacation rental owner, most of them will say - "I charge US dollars because everyone else does."
The most easily understood answer is that they maintain that they bought or built their house in US dollars, so that their investment is in US dollars. Therefore their return on that investment should be in US dollars.
One could argue that the currency differential could be the other way around, and that a falling US dollar value will affect their investment negatively.
The fact that US dollars are used here is not unique to Mexico. If I book a one-way ticket from Mexico to Canada on a Canadian airline, the ticket is in US dollars. A one-way ticket in the other direction is in Cdn dollars.
Out of interest, I Googled a tour of Argentina. US dollars. A safari in Africa. US dollars.
Nevertheless, the current situation is bad for Canadians who must rent is US dollars. Given that most visitors to La Manzanilla are Canadians, this likely will affect the economy over time.
Of course, in the meantime, my American friends are buying the drinks. I hope.
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