Following the devestating effects of Swine Flu, Mexico City’s government has just taken the bold step of announcing it will offer — and pay for — health insurance for every foreign visitor coming to the city.

The big news comes as Mexico City’s hotels are currently languishing at a mere 27 percent occupancy rate — costing its crucial tourism sector millions of dollars a week.

But from now on, “tourists will be insured the moment they register in their hotels,” Alejandro Rojas, the Mexico City’s tourism minister, told the Financial Times yesterday.

The insurance will be provided by ACE Seguros, the Mexican arm of the ACE Group — an international insurer — and lets those struck sick seek medical care at private hospitals city-wide.

With airfares to Mexico City deeply discounted as well, a long-term visit South of the Border might just the solution the U.S. needs for its tens of millions of uninsured.