Tourism versus beachfront isolationism in Mexico
http://www.mexidata.info/id639.html
By Barnard R. Thompson
October 17, 2005
Based on the importance tourism represents to Mexico, a number of events were held this year in late September and early October commemorating World
Tourism Day, that actually fell on September 27. Mexican President Vicente Fox dedicated most of his weekly radio program, Fox Contigo (Fox is with
you), to tourism and visitor industry development on October 1, with Tourism Secretary Rodolfo Elizondo and Mexico Tourism Board chief Francisco Ortiz
being among the guests.
Fox pointed out that tourism is one of Mexico?s strategic activities, considering its economic importance, the number of jobs the hospitality industry
includes, and the development opportunities it brings not just to popular resort destinations, but to otherwise backwoods areas as well. ?We are
putting emphasis on tourism in order to bring in more investments ? because this sector is not only about recreation, it is also about development,
the creation of jobs, growth, and well-being for everyone in the country,? the president declared.
With respect to foreign exchange, tourist spending represents almost 8 percent of the national economy, a factor that has played a significant role in
Mexico?s economic stability in recent years, Fox said. In 2004 the rate of annual growth of income from tourism was 8.6 percent, far above Mexico?s
economic growth as a whole, the president added. As of now, spending for 2005 by visitors from abroad is projected at US$12 billion.
?This truly makes us a world tourism power, seventh in size in the world with a flow of more than 22 million tourists,? Fox said.
Tourism Secretary Rodolfo Elizondo put the figure at 24 million foreign visitors. As well, more than 53 million Mexicans will travel nationally this
year, and occupy a hotel room for at least one night, according to Elizondo.
Francisco Ortiz is head of the Mexico Tourist Board, which has a mandate to promote Mexico as a tourist destination throughout the world. As such,
but also taking into consideration broader opportunities for national and foreign investors and developers, Ortiz offered some interesting comments
about what he calls Mexico?s best-known product ? sun and beaches.
?Today?s most visited destinations, by international tourists, are sites on the Mexican Caribbean which (include) Canc?n, the Maya Riviera and
Cozumel, where we receive approximately 35 percent of our tourists. Next we have part of Jalisco, which would be the Vallarta area and the Costa
Alegre. And then there is Baja California Sur, with destinations like Los Cabos. Today, at the world level they are the most popular,? Ortiz said.
He mentioned the importance of niche-type tourism, and the opportunities offered for aficionados of natural history tours and ecotourism, adventure
tours, fishing and hunting. In what Ortiz referred to as premium tourism, he lumped together higher-end resorts and resort hotels, golf, boating and
nautical activities, spas and boutique hotels.
Ortiz also touched on Mexico?s growing business in conventions, conferences and incentive tourism. ?In some ways this is considered business tourism,
that is a tourist who leaves us lots of money when he or she comes to the country,? he said.
Now there are two significant common denominators in all of this. First the Fox government wants to attract growing numbers of foreign visitors to
Mexico, as well as to stimulate national tourism. And second, the areas attracting tourists the most are coastal regions and beach areas.
Too, the Mexican government wants to find investors, developers and joint venture partners, visionaries who recognize the many opportunities in Mexico
? however for obvious reasons they too are primarily interested in sun and beaches and the business those areas can bring.
But here comes the potential rub with respect to foreign investors.
Mexican entrepreneurs, especially in the tourism industry, are complaining that foreign investors are buying up Mexico?s prime coastal property.
Protesting over their inability to compete with foreign buyers due to credit unavailability and costs in Mexico, there are complaints that foreigners
will soon takeover all of Mexico?s beachfront property.
One of those leading the charge for government action against the supposed foreign invasion is hotelier Roberto Zapata, general director of Hoteles
Misi?n and vice president of tourism with Mexico?s Confederation of National Chambers of Commerce.
"Loans for tourist endeavors are very difficult to obtain, and the few that are granted have prohibitively high interest rates of at least 18 percent.
Foreigners on the other hand can borrow at 2 or 3 percent, with a 30-year loan. At this rate they will buy up all of the best real estate in tourist
destinations," Zapata says.
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