The Mexican city of Mazatlan was on the Canadian government's list of dangerous destinations long before Calgary's Sheila Nabb was viciously beaten in a luxury hotel elevator.

And with growing reports of violence in the sunny resort city, many tourists have begun to stay away.

In a major blow to the local economy, some cruise lines decided not to dock in Mazatlan, meaning that peak-season appears more like off-season this January.

Tour bus driver Jorge Figuero knows first-hand what that bad reputation is doing to business.

"It will kill us," Figuero told CTV's Tom Walters, adding that his own income has declined 80 per cent since the tourists stopped coming.

"I don't even know how we survive," he said.

Local tourism officials say that word-of-mouth is the best promotion, and they point to the great tales of sun and fun that many travellers experience in the warm destination.

But bad news also travels.

Such is the case with Scott Giddy, a man from Ontario who recalled a tale about being beaten up and then taken to a private clinic where he was forced to pay a large medical bill.

After Giddy's beating, the driver took him to the private Balboa Clinic.

It's been suggested that clinic management pay drivers a commission for bringing injured tourists for treatment. For a 10-per-cent cut of the medical bill, the driver takes the unsuspecting tourist to the clinic, even if it's not an appropriate facility, said Figuero.

And as the tourist dollars dry up, locals are becoming more desperate, he suggested.

In one part of town, known as the Golden Zone, tourists used to swarm the central shopping district for luxury items.

On one block where five jewelry stores once operated, only one remains. Next door, there is a shuttered café that was once considered a local landmark.

Local officials have steadfastly presented evidence suggesting that another tourist is responsible for Nabb's injuries.

But even if that is true, the damage may already be done.