English is widely understood by most people employed in tourism, although less so in the less-developed areas. At the very least, shopkeepers in remote places will usually know numbers and basic phrases. Remember that regional accents vary (imagine trying to understand a Brit, French Canadian, Texan, and Aussie all in the same day). The average Mexican in and around Puerto Vallarta speaks good English, but speak slowly and avoid idiomatic expressions and slang.
As in most other foreign countries, knowing the mother tongue has a way of opening doors, so learn some Spanish words and phrases. Mexicans welcome even the most halting attempts to use their language. The exception to this rule are Mexicans who speak fluent English having a conversation with someone who wants to use his or her halting, high-school Spanish. This may work when you're seated at adjacent bar stools, but is less effective when there's a long line waiting for help at the front desk of your hotel.
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