The move comes after the February 21 explosion on the ferry that links Playa del Carmen with the town of Cozumel.
The Canadian government said Mexican authorities located another explosive device on a ferry also operating out of Playa del Carmen on Mar.1.
The U.S. Embassy in Mexico City posted the notice on its website Wednesday.
The U.S. has also closed its consular agency in Playa del Carmen, and is banning its embassy staff from travelling there because of a "security threat".
Conversely, U.S. State Department spokeswoman Heather Nauret said in a statement that all travelers should check the U.S. Bureau of Consulate Affairs website before embarking on an global trip. "We do not know why the USA government made a decision to emit this alert", the statement said.
"All tourism and economic activity in Playa del Carmen continues in a normal manner", the state government wrote in a statement, noting that hotel occupancy at the resort was 80 per cent.
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Playa del Carmen's beaches and resorts have typically been a huge attraction for spring break travelers from the United States.
"Mexico is by far the most popular sun destination among our clients but, of course, if someone is feeling uncomfortable travelling anywhere, we can always find them somewhere else to go", Wallace said.
It was just two weeks ago an explosion rocked the ferry from Playa del Carmen, injuring 25 people, including two Americans.
"According to Government of Mexico statistics, the state experienced an increase in homicide rates compared to the same period in 2016", the warning for Quintana Roo states. A day earlier, a shooting at a music festival in Playa del Carmen left three foreigners and two Mexicans dead.
Be aware of your surroundings and exercise caution.
The alert, issued Wednesday night, says USA government employees have to cease traveling to the town "immediately" and "until further notice". State prosecutors say the ferry incidents are under investigation.