Eighteen killed in Acapulco drug shootout

ACAPULCO, Mexico, (Reuters) – Eighteen people were  killed in a shootout between drug gangs and soldiers in the  Mexican beach resort of Acapulco, the army said yesterday.

The gun battle, near tourist hotels in the Pacific Ocean  resort, was a further blow to Mexico’s tourism industry,  already reeling from cancellations by foreigners scared away by  the swine flu epidemic.

Gunmen battled troops from a cartel safe house, throwing  hand grenades at soldiers who had surrounded them and spraying  gunfire into military vehicles and nearby homes. The shooting  began late on Saturday and went on until after midnight.

“There were grenade and rocket explosions, and weapons like  AK-47s,” said an employee of a neighboring hotel. “The fight  lasted almost two hours.”

Sixteen suspected members of the Beltran Leyva drug gang  were killed as well as two soldiers, including a captain.
Mexican President Felipe Calderon has staked his presidency  on crushing drug gangs whose turf wars have killed about 2,300  people this year. Some 45,000 troops and federal police have  been deployed across the country.

While the clash was several miles away from the main area  where foreign tourists stay in high-rise hotels, a resurgence  of violence in Acapulco is bad news for the tourism industry.

Rival drug gangs fought over territory in Acapulco, home to  around a million people, several years ago, but the resort has  been relatively free of drug violence in recent years.

Tourism, a key industry for Mexico, took a hit in late  April and early May when the H1N1 flu virus spread through  Mexico and scared off travelers.

Violence associated with drugs across Mexico has damaged  investor sentiment and the U.S. government is concerned about  instability in Mexico, an ally and big oil supplier.

President Barack Obama visited Mexico City in April,  praised Calderon for tackling the drug gangs and offered more  U.S. help in the war.

Drug violence has also hurt Mexican beach resorts, like  Cancun and Ixtapa. The Beltran Leyva gang, rivals of the powerful Sinaloa  cartel, is believed to dominate the drug trade around Acapulco,  a popular destination for vacationing U.S. college students.

Also yesterday, the attorney general’s office said police  arrested Olga Cristina Lerma, a financial operative in the  Sinaloa cartel, which is based in northwest Mexico.

Lerma is responsible for bringing $22 million from drug  sales from the United States into Mexico and will be  extradited, the attorney general’s office said in a statement.