Americans are cutting back on trips to Mexico, which is bad news for Mexico's tourism industry and a warning sign about how squeezed US consumers feel.

• Tourism in some parts of Mexico has crashed by 20%.
• Americans are the ones staying home, not other travelers.
• High gas prices are already hitting people's wallets today.
• Food prices are expected to climb next, so people are bracing by skipping vacations.

Outlook: With gas costs high and food bills expected to rise, Americans will likely keep cutting travel spending in the near term.