Tourism Investment:
Private sector tourism investment in 2010 was up 19.2% vs. 2009 totaling $3.5 billion US dollars, 17% of which was funded by foreign investors.  U.S. investors contributed the majority of foreign investment at $374.2 million USD, followed by Spain and Canada at about $61.5 million USD each.  The industries receiving the most private investment were hospitality and real estate tourism. Hospitality investment included new hotel developments, recreation, and food and beverage services.  Real estate included investment in condominum developements, active retirement communities, and independent, assisted living, and continuous care communities.

Vacation Tourism:
Mexico is ranked #10 in the world for attracting international tourism.  It’s 6,000 miles of beaches, varied archeological sites, native cultures, natural beauty, and the well-known warm hospitatlity of the Mexican people attract more tourists every year. While approximately 80% of tourists arrive from the U.S., the numbers are increasing from South America and Europe, particularly in the luxury and adventure markets.  Many U.S. and Canadian travel agents, as well as their sun and beach seeking clients, are familiar with the well-established Mexican beach resorts of Los Cabos, Mazatlán, Puerto Vallarta, Ixtapa-Zihuatanejo, Acapulco, Cozumel, Cancun and the smaller towns nestled along the Riviera Maya.  But beyond these well-developed beach destinations lie lesser known sun and sand resorts:  Puerto Escondido, Huatulco, and the Riviera Nayarit on the Pacific coast; Isla Mujeres, Playa del Carmen, and Akumal on the Caribbean coast; and historic ports such as Veracruz on the Gulf coast and Campeche on the Yucatán Peninsula.  Inland, the European-built colonial cities of Guanajuato, San Miguel de Allende, Queretero, Morelia, Oaxaca and many charming smaller towns offer history, culture and excellent cuisine. Add to this the Mayan, Aztec, Zapotec, Mixtec and other archeological sites plus specialized regional cuisine, arts and crafts, and traditional fiestas, and the attractions are compelling.  Luxury level boutique hotels, 5 star resorts, world-class golf, excellent marinas, and health resort Spas offer high end tourism experiences in Mexico.  Cruise ships provide a comfortable way to see many ports in Mexico with options for short inland excursions.

Residential Tourism (Living or Retiring in Mexico):
The U.S. baby boomer generation (born 1946 to 1964) and other Americans and Canadians are buying or renting condominiums and homes throughout Mexico for long winter stays or for permanent residency. Their reasons are:  warm or temperate climate year-round with a more relaxed pace and less stress, proximity to the U.S. for visitors, cost of living (about 30% less or more than in the U.S.), good health care facilities and professionals at prices much less than in the U.S., secure and well-built communities, good communications and transportation systems, English-speaking residents, plenty of activities for every interest, and the welcoming Mexican people. Between 1.2 and 2 million Americans currently live full or part time in the country, representing approximately 20-25% of all (non-military, non-governmental) Americans living outside the U.S.  Some Americans are renting apartments for 3-6 months in various resort and inland cities before deciding to buy their own home in Mexico.  The largest expat communities are found in Riberas de Chapala (south of Guadalajara), the Puerto Vallarta area, and inland in San Miguel de Allende where10% of the population are native English-speakers, mostly from the U.S. and Canada. Other popular expat locations are:  Cancun and the Riviera Maya, Merida, Mazatlán, Mexico City, Guadalajara, Zihuatanejo, the Nayarit coast, and Morelia. The procedure for purchasing real estate in Mexico was facilitated greatly in 1994 under the NAFTA/ TLC agreement. A foreigner may safely own property in the beach resort areas through a Mexican bank real estate trust (see Mexico’s foreign investment law) or inland on a fee simple title basis just as in the U.S.  The purchase process is different than that in the U.S. with the purchase transactions and title deed handled by an official Notary Public, a specialized lawyer in Mexico.  While a Mexican-based realtor provides a valuable service in finding a suitable property to purchase, a degreed Mexican or American attorney knowledgable in Mexico real estate investment law is recommended to guide you through the purchase or sale process and to help you understand the legal and tax benefits and differences. Many options for financing are now available for purchasing Mexican property. Title insurance is offered by several American companies.  Following the correct legal process for buying property in Mexico is safe and offers future enjoyment and investment rewards to “residential” tourists.

Business Tourism (Conventions, Meetings, Congresses):
Meeting planners for U.S. Corporations, assocations and organizations are increasingly orgnanzing their meetings, conventions, trade shows, exhibitions, congresses, and reunions in Guadalajara, Mexico City, Puerto Vallarta, Cancun, and the Riviera Maya (Mexican Caribbean). Additionally, U.S. corporations organize incentive trips to many of Mexico’s beach resorts, pairing R ‘n’ R with visits to nearby archaeolocial sites and historic Spanish colonial towns. Mexico is already one of the top business group travel destinations in the world. According to the International Congress & Convention Association (ICCA), Mexico is the world’s 27th most important convention destination in terms of number of events hosted. Mexico offers both meeting planners and corporate incentive groups excellent air lift and access, quality convention venues, availability in five star hotel rooms, state of the art technology, first class ground transportation, and varied sightseeing activities. Destination management companies (DMC’s) offer complete business group planning services throughout the country.  Weather is excellent (forget snow storms) and the tradition of Mexican hospitality thrives.  Mexico’s infrastructure includes 58 international airports, 55 convention and exhibition centers, and over 515,000 hotel rooms in 3,100 hotels, many world class.  Additionally, all international group business tourism receives a waiver of the VAT (value added tax of 10-15%) on all services purchased in Mexico by foreign corporation and association meeting participants. That means 0% VAT. The MCB (Mexico Convention Bureau), a specialized area within the MTB (Mexico Tourism Board) works with many CVBs (Convention & Visitor’s Bureaus) to help the MICE segment plan, promote and develop their group events.

For more information: www.visitmexico.com