The problem with the reports about the violence is that as they say in the news business, if it bleeds, it leads. so they make no effort stating that the violence is mainly seen in border towns in northern Mexico. Tourists are just as safe in Cancun as they would be in any other place (of course there are areas to avoid just like anywhere else, but they are pretty well far from the tourist areas).
The swine flu had a huge impact. pretty much overnight hotel occupancy dropped to like 5% (yes, five).
Europeans generally tend to go further south. Puerto Morelos, Playa, Tulum, etc.
It is the press. If you believed it, everyone in Mexico is a drug dealer and shooting up the streets everywhere. Just like here in Kuwait. People think I am hiding in a tent from the camel riding terrorists here in the Middle East. Actually, I am struggling with whether to buy the Gucci or Prada shoes here at the new 360 Mall.........
Gotta love the press.