The Mexican government announced a $3.4 billion recovery plan for the battered coastal resort of Acapulco, including tax breaks, humanitarian aid and infrastructure reconstruction.

The devastating Hurricane Otis destroyed homes, hotels, and other businesses in Acapulco last week, cutting communication lines and temporarily stranding the city's 900,000 residents.

Finance Minister Rogelio Ramirez de la O told a press conference that the recovery plan will require a total of 61.3 billion pesos ($3.4 billion).

A catastrophe bond that insures the country against earthquakes and hurricanes is expected to generate between $30 million and $60 million for Mexico, deputy finance minister Gabriel Yorio said. Mexican insurance covers an additional 5 billion pesos for reconstruction, Reuters reported. 

The damage caused by Otis could reach $15 billion, according to Enki Research, which tracks tropical storms and models their costs.