A lot of great suggestions - thanks! Oaxaca is trending - I will investigate. I just wanted to see Acapulco because it's (in)famous but, as #6 suggests, 3 weeks on the beach is probably too much. I have enjoyed exploring Merida and the sights nearby - looking forward to finding more like that. Bus travel isn't something I do much but will check it out. I usually rent a car but I have read so many travels advisories that say to avoid travelling alone at night or in remote places that I probably won't this time. But I read those about Merida several years ago, rented a car to explore and had no problems, although I didn't care for the road blocks at night with armed soldiers(?).
I think the Yucatan and Merida area is well suited to renting a car. Sparsely populated, lots of tourists and english spoken, flat roads etc.
But other, more mountainous areas of the country, bus travel is really nice. You can relax and enjoy the views and not worry about all the topes and pigs that are in front of you.

Yes, driving in Merida and the state of Yucatan is not indicative of the rest of the country. Drivers actually pay attention to stop signs in Merida, for example. For Oaxaca, I recommend the bus for many of the same reasons as bcmum.
looking for somewhere else - maybe...pre-Columbian sites;
This morning I attended a lecture at the Santo Domingo Cultural Centre by archaeologist Raul Matadamas, and he presented his findings about Copalita, the archaeological site at Huatulco. So if youre already there, go and see it, very near where the Rio Copalito empties into the ocean (but dont think there`s any public transport; ask around).
Close to Oaxaca city there are a lot of archaeological sites, all accessible by public transport: Monte Alban; Atzompa; Mitla; Yagul; Lambityeco; Dainzu; Zaachila; San Jose Mogote; etc.
Yes, you're right (thank you, mclarjh) I just looked for it online. I didn't know this when I wrote. I'm really sorry. It's a shame that some of the archeological zones suffered damages. If you ever get to visit that place, it'll be worth it, wadester.

If you don't want to drive long distances, then take first class buses. If it were me, I would just bus from TAPO to Oaxaca, a place worth at least five days. From there there are van services which go down to the coast and that includes going to Huatulco and other places nearby like Zipolite and Puerto Escondido.
Are there first class buses from Oaxaca to Huatulco or just the van services you mention? Easy to arrange, once there?

I haven't taken it myself but I believe that ADO has a bus which goes from Oaxaca City to Salina Cruz and then up to the Huatulco area. The route is relatively flat and this avoids the stomach wrenching trip down the mountains on van. It also takes a lot longer.
Yes, there are first class buses that depart the ADO first class station in Oaxaca for Huatulco that travel via Salina Cruz. Check their website for fares and schedules. And there are van services that travel direct to Pochutla, and at least one that travels direct to Huatulco via Pochutla. I´ve traveled on both vans and buses. Suggest a dimenhidrinato may be in order on either route. Both are easy to arrange once you´re there.
Note that in the past few weeks I´ve read about a serious accident, and an armed robbery, both happened to vans operating between Huatulco and Oaxaca city. The first class bus would be safer on both accounts.
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