Notitur September / October 2014 by Amdetur

2014

September October

» Industry Tourism in Mexico and the importance of creating smiles by Pablo González Carbonell.

» Academe National Tourist Infrastructure Meeting 2014: “Tourism: Engine of development and social welfare.”

Tourism: much more than

sun, sand

and sea Publication of:

www.amdetur.org.mx

» AMDETUR Our 28th Annual Convention.

» Legal Aspects FACTA.

Foreing Account Tax Compliance Act.

NOTITUR DIGITAL

BOARD OF DIRECTORS

September / October 2014

CHAIRWOMAN

Ana Patricia De la Peña Sánchez Original Resorts VICE PRESIDENT Gerardo Rioseco Orihuela PROVAC Posadas EXECUTIVE Gonzalo Maqueda Cornejo President AMDETUR

SecretarY

Carmen Carballido Starwood TREASURER Jorge E. Téllez Landín Sol Mar

COUNCIL MEMBERS

Fernando Azcona Lizárraga / Villa Group Javier Robles / Grupo Vidanta Francisco Medina / Grupo Hotelero Santa Fe Gibrán Chapur / Palace Elite Marcos Agostini / Interval International Ricardo Montaudon Corry / RCI

Director

Rosa de Jesús Lugo Dorantes

Notitur CHAIRWOMAN

Ana Patricia De la Peña Sánchez Original Resorts VICE PRESIDENT Gerardo Rioseco Orihuela Grupo Posadas EXECUTIVE Gonzalo Maqueda Cornejo PRESIDENT AMDETUR publisher Raymundo Hernández DESIGN KEMCS Diseño y Marketing www.kemcs.com TRANSLATION Elizabeth Collins Morrison elizcollins@mac.com PHOTOGRAPHY José Mata / www.pbase.com/ppmata Amdetur Cel. (04455) 1885 8581 ADVERTISING Raymundo Hernández C. raymundo.hernandez@amdetur.org.mx rayhernandezlcc@gmail.com

LOCAL ASSOCIATIONS

C.P. Javier Vales González, Asociación de Clubes Vacacionales de Quintana Roo, A.C. / Lic. Alejandro Lemus Mateos, Asociación de Desarrolladores y Promotores Turísticos de Tiempo Compartido, A.C. (Puerto Vallarta) / Sr. Paul Wesley Little, Asociación Sudcaliforniana de Desarrolladores de Tiempo Compartido, A.C. / Ing. José Luis Centeno, Asociación de Promotores de Clubes Vacacionales del Estado de Guerrero, A.C. / Lic. Fernando de Leeuw Santiago, Asociación de Clubes Vacacionales de Cozumel, A.C. / C.P. Fernando Alaniz Cárdenas, Asociación de Clubes Vacacionales de Sinaloa, A.C. / Lic. Cristhian Orozco Oseguera, Asociación de Desarrolladores y Operadores Turísticos de Ixtapa y Zihuatanejo, A.C. / Ing. Guillermo Dávila Espinosa, Asociación de Desarrolladores Turísticos de Manzanillo y la Costa Alegre, A.C. Notitur Digital is a bimonthly online publication, published by the Asociación Mexicana de Desarrolladores Turísticos, A.C. (Amdetur), WTC, Montecito # 38, Piso 32, Oficinas 11 – 14, Col. Nápoles, Mexico 03810, D.F. Phone and fax (55) 5488 2028 to 31. It is a sister publication to the printed magazine Notitur, whose registry numbers are: Certificate of Valid Title no. 3856, dated April 19, 1989; Certificate of Valid Content from the Comisión Calificadora de Publicaciones y Revistas Ilustradas no. 3172, dated April 19, 1989; Reserve Certificate Number 04-2005-030817343600-102 from the Instituto Nacional del Derecho de Autor, Ministry of Public Education. Amdetur is not responsible for the advertisements or “advertorials” published in Notitur Digital. Notitur treats personal information on its subscribers accoridng to the privacy standards of the Federal Law on the Protection of Data Held by Private Parties. For more information on our privacy policy, visit our webpage at: www.amdetur.org.mx.

aRTICLE Much more than sun, sand and seA

Investing in the Mexican tourist industry has always been an appealing option for both foreign and local investors. Spanish investment in Mexican tourist destinations, for example, has been growing at a brisk pace. Among the current plans of Mexico’s Ministry of Tourism (SECTUR) is promoting investment projects called Comprehensively Planned Centers (CPCs), located in Cancún, Huatulco, Ixtapa, Sinaloa (Playa Espíritu), Los Cabos, Loreto, Nayarit (Costa Capomo) and Marina Cozumel.

Amdetur

Our 28th Annual Convention

More than 800 people, including students and professionals from Mexico’s vacation ownership and tourism industry, attended AMDETUR’s 28th Annual Convention, which was held in June in Los Cabos, Baja California Sur. The event was made of three conference groups: our traditional Convention, with the title “2020: The New Vision of The Vacation Ownership Industry;” the First Los Cabos Vacation Ownership Convention.

legal aspects

FATCA: A Law to Avoid Tax Evation

In March 2010, the United States Congress passed a law called the Foreign Account Tax Compliance Act (FATCA), whose main objective is to ensure that US residents pay taxes pertaining to financial assets or bank accounts they maintain outside the country.

INDUSTRy

Tourism in Mexico and the importance of creating smiles

“Tourist service providers are creators of smiles,” said Pablo González, President of Royal Holiday, in an interview with a renowned European news agency. In this interview, González had the opportunity to speak not only about Royal Holiday, but on behalf of the entire world tourist industry, and primarily in Mexico.

ACADEMe

National Tourist Infrastructure Meeting 2014: “Tourism: Engine of development and social welfare.”

The National Tourist Infrastructure meeting for 2014, organized by the Mexican Construction Industry Chamber, was held on June 26 and 27 in Puerto Vallarta, Jalisco.

If you would like to receive the digital version of Notitur, in English or Spanish, you can request it at: raymundo.hernandez@amdetur.org.mx Comparta esta Revista

Or dowload it directly: issuu.com/notitur/

www.amdetur.org.mx

AmdeturMx

AMDETUR

▲ Patricia De la Peña, Chairman of the Board of Directors of AMDETUR; Marcos Covarrubias, Governor of Baja California Sur; Carlos Joaquín González, Under Secretary of Innovation and Tourist Development for SECTUR; Raoul Chollet, Regional Delegate for Los Cabos and LoretoPuerto Escondido for the National Tourism Promotion Fund (FONATUR), during the ribboncutting even to open the AMDETUR Expo.

Our

28th

ANNUAL CONVENTION

20/20:The New Vision of The Vacation Ownership Industry Patricia De la Peña, Chairman of the Board of Directors of AMDETUR, gave the welcoming speech for the 28th Annual Convention and spoke about the activities our association has carried out to promote the industry. Among these were national and international promotional campaigns to highlight the benefits of vacation ownership, and forging closer ties with financial institutions in order to obtain better and more competitive financing conditions for our industry.

SEPTIEMBRE / OCTUBRE 2014

AMDETUR

▼ Panel on “Current Status of Tourism in Mexico: How can we Promote our Industry?” moderated by Carlos Velázquez, renowned columnist and expert on tourism, with the participation of authorities, Patricia de la Peña and Dr. Francisco Madrid, Director of the Universidad Anáhuac del Norte Tourism School.

▲ Marcos Covarrubias, Mayor of B.C.S., wrote the message “I'll take the enormous commitment over the next 14 months to support the most important tourism sector "over the wall" What I take from this Convention" in which all persons who wanted to share their comments about the event could write on it. ◄ Panel on “The Future of Vacation Ownership: The Pioneers’ Vision,” moderated by Alberto Villada, CO Puerto Los Cabos for Grupo Questro, with the participation of Ernesto Coppel, Chairman of the Board of Grupo Pueblo Bonito; José Chapur, President of Palace Resorts, and Kemil Rizk, Chairman and CEO of Royal Results.

Some of the figures shared at these conferences Tourism provides 1 out of every 11 jobs in the world, 9.5% of global GDP, 6% of exports and 266 million jobs. Carlos Joaquín González, SECTUR Approximately 90% of people who visit Mexico recommend it and come back within 5 years. Marcos Alberto Covarrubias, governor of the state of Baja California Sur, spoke to conference participants on the advantages that the Los Cabos region has found in vacation ownership, thanks to the flow of repeat tourism it generates and its capacity to attract investment from entrepreneurs who offer this type of product. Carlos Joaquín González, Under Secretary of Innovation and Tourist Development for the Ministry of Tourism (SECTUR), spoke about the importance of the crossindustry work being carried out by the Tourism Cabinet, headed by President Enrique Peña, and the actions included in the National Infrastructure Plan which will substantially strengthen the tourist industry in coming years. He also gave the keynote speech for the Convention.

Gerardo Llanes, CPTM

There were 1.15 billion Facebook users in 2013, and 500 Google user. TripAdvisor had 260 million hits a month, and more than a million visitors went to YouTube every month. Patrick Connolly Holiday Inn Club Vacations En la conferencia: Servicio al Cliente, tu Estrategia para el Futuro

In 2013, vacation ownership sales in the United States totaled 7.1 billion dollars, and the industry reported an occupancy rate of 76.8%. Marcos Agostini At the conference: Outlook on the Vacation Ownership and Tourist Industry

AMDETUR ▼ Rubén Reachi, Secretary of Tourism for Baja California Sur; Jorge Téllez, General Director of Corporate Marketing for Solmar; Paul W. Little and Javier Olivera, President and Director, respectively, of ASUDESTICO; and Gonzalo Maqueda, Executive President of AMDETUR, during this event.

First Los Cabos Vacation Ownership Convention The opening words of this first Forum in Los Cabos-aimed at the sales and marketing personnel of the tourist industry--were delivered by Rubén Reachi, Secretary of Tourism for the state of Bajaj California Sur, who spoke of how important the Timeshare business has become to Los Cabos, now accounting for 40 percent of the total supply of lodging in the state. Guest speakers included well-known names like Linda Clemons, President and CEO of Sisterpreneur, Inc., who talked about body language and its importance in the sales process. Jim Madrid, President and Founder of Entelechy Training & Development shared some techniques for raising standards to improve performance. Enrique González Sáinz, Director of Business Development at Millward Brown, commented on the use of digital platforms to build brands, and José Antonio Villavicencio, Manager of Corporate Communications and PR for RCI Latin America, described how and why image and persuasion have an impact when it comes to the sell. The second part of the Forum’s conferences was held simultaneously with the Annual Convention, so members of both groups came together in the afternoon to hear magnificent presentations by Michel Gehrig, President of Sales and Marketing for Welk Resort Group, who talked about teamwork; Shari Levitin, Chairman and CEO of Levitin Group, addressed the issue of leadership in the context of rapid change; and Paola Espinosa, winner of various Olympic medals, gave an extraordinary motivational speech.

Some Figures Shared at these Conferences

▲ Rubén Reachi, Secretary of Tourism for Baja California Sur, during his opening speech at the first Los Cabos Vacation Ownership Forum

59.2 million Mexicans use the Internet today, and this number is expected to grow to 78.2 million by 2017. Nationwide, the age breakdown for Internet users is: 85% are between 12 and 18, 79% are between 19 and 25, 73% are between 26 and 32, 57% are between 33 and 39, 41% are between 40 and 46, 39% are between 47 and 53 and 21% are between 54 and 70. Enrique González, Millward Brown

For people, more than 80% of communication is non-verbal, and more than 40% of our attitudes are the result of habit, more than a conscious decision. Linda Clemons, Sisterpreneur

September / October 2014

▲ Paola Espinosa, winner of several Olympic medals, gave an extraordinary motivational speech.

AMDETUR

Some Figures Shared at these Conferences There are 5,325 resorts offering timeshare in the world, distributed among 106 countries and bringing in sales of 14 billion dollars. Juan Pablo Gómez, Interval International

Conference for the University-Business Engagement Program, attended by students of various Los Cabos universities.

University-Business Engagement Program In this part of the event, experts in the vacation ownership and tourism industry in general spoke with students from various universities of Los Cabos regarding the wide range of employment options available in the field, and presented a panel of students who were the winners in the “One Heart, One Voice, One Mexico” program organized by RCI and Universidad Panamericana (UP), in which they created new ways to optimize the promotion of tourism to Mexico. At the end of these sessions, Paul Wesley Little, President of the Association of Time Share Developers of Baja California Sur (ASUDESTICO), spoke briefly to students on the importance of this industry as an engine of the Mexican economy, inviting them to continue their education in order to make a growing contribution to this activity.

In 2013, 181,655 timeshare intervals were sold in Mexico. This industry reports an occupancy rate of 74% and generates 18% of the jobs in the nation’s tourist industry. . Leonel Matiz, RCI

There are 5,051 timeshare units in the Los Cabos tourist corridor, 6% of them in Cabo San Lucas and 15% in San José del Cabo. These units have an average occupancy rate of 85%. Javier Olivares, ASUDESTICO

We’d like to warmly thank our sponsors:

Diamante

Gold

Silver

Bronze

▲ Panel of winners of the “One Heart, One Voice, One Mexico” program, organized by RCI and Universidad Panamericana.

amdetur.org.mx

AMDETUR

Alfredo Arvizu named Public Relations Professional of the year 2014 The Mexican Resort Development Association is glad to send its congratulations to Alfredo Arvizu on his appointment as the Public Relations Professional of the Year 2014 award. Alfredo Arvizu is partner and CEO of Arvizu Corporate Communication on his by the Mexican Association of Professionals in Public Relations. Alfredo Arvizu has contributed for more than 49 years to the evolution and transformation of the industry through various positions as Corporate Director of Communications at Tourism Real Group, EMI and Bancreser. He has taught at the Iberoamericana, Anahuac and Panamericana Universities. It is a founding member and served as President, in two periods, the Mexican Association of Public Relations, PRORP

▲ Paul Wesley Little, President of ASUDESTICO, speaks to students.

Olga Oro, PRORP President said: "It is an honor to award this recognition to a beloved and admired in the industry colleague, Alfredo is a role model and who all have much to learn."◄

September / October 2014

▲ Alfredo Arvizu, CEO of Arvizu Corporate Communication

Find more information on our convention and more of these topics in our fanpage: www.facebook.com/AmdeturMx

LEGAL ASPECTS

FATCA...

A Law to avoid Tax Evasion

n March 2010, the United States Congress passed a law called the Foreign Account Tax Compliance Act (FATCA), whose main objective is to ensure that US residents pay taxes pertaining to financial assets or bank accounts they maintain outside the country.

FATCA has been questioned from the start for a number of reasons, among them:

By José Luis Figueroa Jácome Assistant Counsel for Systemic Analysis and Regulatory Studies Taxpayers' Defense Agency

• The costs of implementation of the law for the US Treasury Department, as well as for Foreign Financial Entities (FFE), which represent the main source of information in this regard; as well as for the countries or jurisdictions that decide to support the US in this initiative. • The extraterritorial nature of the law. First, because its intent is to impose obligations on financial institutions outside of the US; and second, because it makes financial institutions in the US and other tax withholding entities in that country responsible for withholding 30% of the payments made to the FFE that are not able to supply the information requested by the FATCA act. • The complexity of its implementation. Despite these and other questions, FATCA continues to go forward (it took formal effect on July 1, 2014) and has even found support among various international organizations amdetur.org.mx

LEGAL ASPECTS

like the G 20 and the Organization for Economic Cooperation and Development (OECD), as well as various countries of the world, among them Mexico. The United States has introduced a number of mechanisms both locally and internationally to ensure proper implementation of FATCA, including: a) Creating inter-governmental agreements for the purpose of avoiding problems relating to bankers' secret and the protection of personal data that some financial institutions could face by directly sharing the information that this Act requires of them; b) Direct agreements with financial institutions; and c) An effort to raise support among international organizations.

this does not mean that the entry into force of the Act has been delayed, and warned that only financial institutions who could demonstrate they were acting in good faith in making an effort to fully comply with the requirements would be exempted temporarily from compliance with FATCA.

Automatic Exchange of Tax Information Between United States and MĂŠxico On November 19, 2012, Mexicoâ&#x20AC;&#x2122;s Ministry of Finance and Public Credit and the US Treasury Department signed an Inter-Governmental Agreement on the Exchange of Financial Information in connection with FATCA, in which they agreed to substantially improve mechanisms for the exchange of banking and financial information to verify compliance with tax obligations among their respective taxpayers. This document was replaced on April 9, 2014, by a new agreement expressing the reciprocal commitment of the United States and Mexico to share a variety of information for 2014 and subsequent years. The new agreement to improve international tax compliance, signed by the Ministry of Finance and Public Credit of Mexico and US Treasury Department, establishes that:

With regard to the support that the US has obtained internationally for FATCA, it is primarily in response to the benefits arising from the exchange of tax information among nations, which directly helps to combat tax evasion, which is in turn one of the primordial objectives of international tax treaties. Because of the complexity of implementing an initiative of this scope, the Internal Revenue Service (IRS) of the US created a transition period in order to give countries and institutions time to duly comply with and execute FATCA. This transition period will last for the rest of this year and the next, during which time financial institutions are expected to make the necessary operating adjustments to be able to prepare and deliver the required reports. With regard to this "transition period," the IRS has said that 07

September / October 2014

LEGAL ASPECTS

A) Each party must obtain specific information regarding Reportable Accounts and must automatically share information annually with the other party. B) The types of Reportable Accounts are: Individuals: • Accounts with balances greater than $50,000 • Life insurance or annuity contract with the cash value of more than $250,000 as of June 30, 2014, or a value of more than $50,000 in the case of new accounts Institutions: • Accounts with balances greater than $250,000 as of June 30, 2014, and balances of more than $50,000 for new accounts. C) The information that must be shared reciprocally between Mexico and the United States is: 1.- Regarding account holders that are individuals and are citizens or residents of the other party: name, address and federal tax identification number (RFC, in the code, or Tax Identification Number (TIN) in the US) 2.- Regarding account holders that are corporations that have been incorporated or have a tax resident in the other country: name, address and (copy from previously)

2015 at the latest.

With the signing of this type of inter-institutional agreement, Mexico becomes one of the countries that will cooperate by sharing information, encouraged by the OECD and the G-20. It is expected that with this type of informationsharing agreements, the tax authorities of both countries can improve their taxation capacities and levels of compliance with tax laws.◄

3.- Regarding corporations that are not the nationality of the other party, but with respect to which a national or resident of the other party exercises the controlling influence: name, address and (copy from previously). *In this case, information must be supplied both on the entity and on the national or resident of the other party – United States or Mexican – as the case may be. 4.- Account Number 5.- Name and identification number of the reporting financial institution. 6.- Average monthly balance during the calendar year (MexicoUS report); or 7.- Gross amount of interest/dividends or other income paid out of a source of wealth in the US (US-Mexico report) D) The information must be part of an exchange conducted during the 9 month following the close of the calendar year to which the information corresponds, so the first delivery of information must be made by September

amdetur.org.mx

ARTICLE

Tourism:

mUCH MORE THAN

SUN, SAND

AND SEA By César Ramírez Lead Tourism Industry Partner For KPMG Mexico asesoria@kpmg.com.mx www.delineandoestrategias.com

nvesting in the Mexican tourist industry has always been an appealing option for both foreign and local investors. Spanish investment in Mexican tourist destinations, for example, has been growing at a brisk pace. Among the current plans of Mexico’s Ministry of Tourism (SECTUR) is promoting investment projects called Comprehensively Planned Centers (CPCs), located in Cancún, Huatulco, Ixtapa, Sinaloa (Playa Espíritu), Los Cabos, Loreto, Nayarit (Costa Capomo) and Marina Cozumel.

Has the domestic tourist industry grown? Between January and December 2013, hotel occupancy in Mexico grew by 5%, according to data on the country’s top 70 destinations. In 2013, Mexican tourism brought in more foreign currency than in 2012, and estimates are that by the end of this year it will reach a total of around 13.80 billion dollars, an unprecedented figure in the history of the industry.

September / October 2014

ARTICLE

According to official data, in January-December 2013 some 11.77 million foreign tourists arrived in Mexico by air, a 9% increase over 2012, when the total was 10.80 billion. By the close of 2014, tourist industry experts project two-digit growth (more than 10%). In the first five months of the year, the amount of foreign currency generated by international visitors has risen 16.7%. On a similar note, arrivals of foreign tourists based on information from the Mexico City International Airport have grown 10.5% over the same period of 2013. The number of domestic tourists rose to 30.2 million between January and May, 10% higher than in the same period of 2013, reports SECTUR. Investment in the hotel industry this year is expected to reach 700 million dollars, a 10-year high. In 2013, transactions in this industry in Mexico--including investment in new developments and ownership changes in existing hotels, totaled 600 million dollars.

What kind of impact did Ingrid and Manuel have? Seven of Mexico’s Pacific coast tourist destinations were hit hard by tropical storms between September 16 and 20, 2013: Huatulco, Puerto Escondido, Acapulco, Ixtapa-Zihuatanejo, Manzanillo, Puerto Vallarta y Mazatlán.

Foreign Turists

2013

11 million 774 thousand tourists

2012

10 million 804 thousand tourists

By the close of 2014, the expectatives of growth are on 10% Photography: Conagua.

The heaviest economic losses incurred in the wake of hurricanes Ingrid and Manuel did not come from flooding and landslides, but from the plunge in hotel occupancy and canceled reservations. By the end of 2013, however, hotel activity in all these locations was making a strong comeback. In fact, key destinations like IxtapaZihuatanejo, Acapulco, Manzanillo and Puerto Vallarta all did better than expected during the December 2013 holiday period, reaching occupancy rates of almost 100%. The Mexican Hotel and Motel Industry Association (AHMH) and the Association of Hotels and Tourist Companies of Acapulco (AHETA) announced that eight of its affiliated tourist destinations were affected by Ingrid and Manuel, and the heaviest impact was in Acapulco. For the first weekend after the storms, the occupancy rate was expected to be 60% but the actual number was only 20%. The second weekend after, the occupancy rate was expected to be 40% and was only 12%.

Key destinations for triggering the inflow of tourists Approximately 30.2 % of the rooms available in Mexico are in Cancun, the Riviera Maya, Los Cabos and Acapulco, and 21.36% are located in the three main urban destinations (Mexico City, Guadalajara, and Monterrey). Although Mexico will continue promoting tourism in these zones, destinations like Yucatan and Puerto Vallarta must not be forgotten. amdetur.org.mx

Puerto Escondido / Photography: ecoturismo.realmexico.info

ARTICLE

Cancún Photography: www.safainla.us/

The Ministry of Tourism is determined to show foreign visitors a Mexico that inspires travelers’ imagination and awakens a desire to visit and discover it: authentic, diverse, modern and elegant, full of unparalleled places and experiences.

Key Destinations ■ Cancún, Riviera Maya, Los Cabos and Acapulco

There are destinations that are less well-known among foreign travelers but have potential appeal due to their natural or colonial heritage, such as Campeche, Tabasco and Chiapas, the northcentral Bajío zone, Puebla and Oaxaca.

■ Mexico City, Guadalajara and Monterrey

How important is tourism for Mexico?

21%

Tourism has been considered a strategic priority in Mexico’s National Development Plan for 2013-2018. For this reason, SECTUR is focused on the conviction that tourism is the path to progress and engine of development for the country.

30%

In Mexico, activities to promote international tourism were held, like the second Global Forum of the Tourism Knowledge Network, which was held from May 28 to 30Cclose to 400 international specialists came together from various national tourism administrations, specialized research centers, business associations, academe, and in general, people from all over the world interested in tourist activity. The purpose of the forum was to analyze and propose alternative solutions based on state-of-the-art innovations for improving tourist services and destinations. Specialists focused on three main topics: development of tourist products and experiences, competitiveness of destinations, and the impact of technology on tourist services. Another example of how the government is promoting tourism is the creation of the Tourist Cabinet as a permanent, inter-sectorial mechanism for solving concrete issues in the industry. One of its most important efforts is the creation of the Territorial Organization for Tourism (TOT) program.

Carlos Joaquín González, Undersecretary of Tourism, inaugurated the el 2° Foro Global de la Red del Conocimiento, de la OMT. www.tribunadigital.com.mx ▲

September / October 2014

ARTICLE

Mexican industry’s strong suit Tourism is today strategic for the federal government, because of the firmly held conviction that promoting tourism means promoting a strong economy and the creation of high quality jobs, and it can be a fundamental element for helping pursue the established goal of transforming the country. With this in mind, the General Secretary of the World Tourism Organization, Taleb Rifai, commented during the International Tourism Fair 2014 that Mexico is clear about the importance of the tourist industry as a transformative activity for society and a way to promote sustainable economic development. Rifai also remarked that Mexico’s designation as host of World Tourism Day was no coincidence, reflecting the country’s high level of political commitment to tourism.

new investment; and offering more to tourists who arrive in cruise ships. Some of the potential tourism opportunities in Mexico, which are shared by other of the nation’s industries, lie in promoting the growth of domestic markets, improving the attitude of service suppliers, and stimulating lending and investment in the industry. We must also communicate an image of Mexico as a destination offering unique experiences, beyond just “beach and sun” vacations, strengthening our brand as a country. UNESCO recognizes Mexico’s historic, natural and artistic heritage as among the world’s greatest. We must therefore continue our program of diversifying products and destinations, because our country has more world heritage sites than any other country outside of Europe.◄

Challenge to overcome in generating better tourism Important agreements have been signed recently to develop tourist promotion initiatives in order to increase bilateral flows, with an emphasis on luxury, adventure and nature tourism, sports, and sun and beach destinations. Others were reached on facilitating the movement of tourists between countries, and to promote the image of our cities and beaches through participation in seminars, conferences, tourist fairs, symposiums and congresses on tourism-related issues.

cesar ramirez

The challenges to continuing growth range from improving public safety in the most popular tourist destinations to attracting foreign investment in order to expand the supply of rooms and build up new destinations; investing in infrastructure in current tourist centers (water, sanitation, etc.); arranging Development Bank financing to attract amdetur.org.mx

Lasosummit

@LASOS_summit

OCT. 22nd & 23rd, 2014

Hard Rock Hotel Panama, Megapolis - PANAMA

RCI® the world leader in the Vacation Exchange and Tourism-Oriented Real Estate Industry presents:

LASOS - The Latin American Shared Ownership Summit

PARADIGM SHIFT We invite you to LASOS 2014 to shift the industry paradigms:

THE COMMERCIAL COST

THE LUXURY MARKET

THE VALUE PROPOSITION

EMOTIONAL SELLING PROPOSITION THE VALUE OF THE ALL INCLUSIVE LOCATION…LOCATION…LOCATION?

INDUSTRY

Interview of Pablo González Carbonell. President of Royal Holiday.

tOURISM IN MExico

AND THE IMPORTANCE OF

CREATING

SMILES amdetur.org.mx

INDUSTRY ▼ Royal Holiday Cancun

sea--it also boasts vast cultural wealth, which can be used to form part of a different and much more complete vacation concept. Besides offering a different experience, as part of Royal Holiday, Pablo González is well aware that his group has “a responsibility for managing beautiful moments for people, times that people have worked for, that they share with their families” and says that the greatest satisfaction for him and his staff comes “from seeing people smile, from creating beautiful and happy moments for people.” Mr. González goes even further, saying that when asked what is his group's mission statement, he replies simply, “we set out to be creators of smiles”. Mexico, a different tourist destination waiting to be discovered, a land of smiling people and with creators of smiles.◄

For the original interview, go to:

http://www.worldfolio.co.uk/region/north-americacaribbean/mexico/pablo-gonzalez-carbonellpresident-royal-holiday-club-group-mexico-n2994

ablo González was recently interviewed by World Folio, the webpage of AFA Press, a leading European press and communications agency. In the interview, the entrepreneur said that Mexico’s time had come, and that its government is now more aware than ever of the importance of tourism as a source of jobs. Entrepreneurs are also motivated to invest more in the industry. For this reason, he says, we must seize the moment to promote the Mexican tourist industry. A primordial goal is to increase the number of foreign visitors to Mexico, with the support of all the tourist service providers, who can play an essential role in achieving this. “The private sector has committed to investments of US$8 billion over 160 projects for completion within 18 months” to boost tourist capacity, he noted.

Pablo González Carbonell

Gonzalez went on to say that “we are facing a moment of great potential for growth in tourism” and that “the challenge for us lies in how best to promote ourselves since the guest industry in the country is already of excellent quality.” He also talked about the value of the tourist industry in Mexico, a country that has a lot more than sun, sand and

September / October 2014

ACADEME

National Tourist Infrastructure Meeting 2014: “Tourism: Engine of development and social welfare.”

he National Tourist Infrastructure meeting for 2014, organized by the Mexican Construction Industry Chamber, was held on June 26 and 27 in Puerto Vallarta, Jalisco. Its aim was to help deploy Mexico’s tourism potential and thus to promote the development of its regions, states, and the welfare of its inhabitants, in addition to analyzing the projects contained in Mexico’s National Infrastructure Program for 2014-2018 and participate productively in its execution.

OPENING CEREMONIES The opening speaker was Carlos Manuel Joaquín González, Under Secretary of Tourism Development for the Ministry of Tourism (SECTUR) and representing Mexico’s president, Enrique Peña Nieto. In his speech, the under secretary pointed out that tourism requires infrastructure--airports, highways and bridges, basic services like water and lighting, work to restore and protect each region’s natural and cultural heritage. He added that infrastructure is a strategic sector for the federal government, and that is why the National Infrastructure Plan this time includes a specific chapter on tourism. The official also noted that part of the federal government’s strategy for developing the tourist industry is an alignment of federal and local government budgets and private investment. If the 181 billion pesos

September / October 2014

ACADEMIA

in estimated tourist industry investment, he said, 112 billion will come from private enterprise. The national president of the Mexican Construction Industry Chamber (CMIC), Luis Zárate Rocha, took the floor to speak about tourism’s capacity, integrating productive chains that generate more than 8% of GDP, 2.5 million direct jobs and 5 million indirect jobs. It is also the fourth largest generator of foreign currency revenues for Mexico, some 13.8 billion dollars in 2013. This is a record for the industry, and it makes Mexico the leading tourist destination in Latin America and the Caribbean.

Inversión Turística $181 mil millones de pesos destinados para el sector, $112 mil corresponden a la iniciativa privada.

Mr. Zárate acknowledged that despite last year’s success, Mexico is no longer one of the ten most popular tourist destinations in the world. He attributes this loss of competitiveness to two main factors: first, the focus of tourist advertising on sun-and-beach destinations, which detracts from the potential of other destinations. The second is the lack of appropriate infrastructure to move and attend to tourists, in contrast to what other countries are doing in this area. The concrete result of these shortcomings is a 12-notch drop in Mexico’s ranking in the World Economic Forum’s Index of Travel and Tourism Competitiveness, from 49th in 2008 to 61st in 2013.

amdetur.org.mx

ACADEMIA

The opening ceremonies also involved speeches by the state secretaries of government and tourism for the Nayarit and Jalisco, José Trinidad Espinoza Vargas and Jesús Enrique Ramos Flores, respectively, who concurred that infrastructure construction, particularly land, air and sea connectivity, is key to developing Mexico’s tourist destinations. Other participants in the day’s events included Franco Juan Carreño Osorio, development director for the National Tourism Promotion Fund; Ramón Guerrero Martínez, municipal president of Puerto Vallarta; Ana Patricia de la Peña Sánchez, National President of the Mexican Association of Resort Developers (AMDETUR); Roberto Calvet Martínez, Executive Vice President of Tourism with the CMIC; Juan José Alberto Topete Rivas, president of the CMIC’s Nayarit delegation; Benjamín Cárdenas Chávez, president of the Jalisco delegation; and builders in the industry.

TOPICS Panel 1: Development and Regional Promotion of the Nayarit and Jalisco Riviera Carlos Manuel Joaquín González, Under Secretary of Tourism Development for the Ministry of Tourism (SECTUR) Franco Juan Carreño Osorio, development director for the National Tourism Promotion Fund (FONATUR) Jesús Enrique Ramos Flores, state Secretary of Tourism for Jalisco. Presiding: Roberto Calvet Martínez, president of the Mexico City delegation and Executive Vice President of Tourism with the CMIC Moderator: Benjamín Cárdenas Chávez, president of the Jalisco delegation of CMIC. Question and answer session

Panel 2: Infrastructure as a Springboard for new Tourist Centers and Regional Develoment Raul Murriete Cummings, Under Secretary of Infrastructure, SECTUR Porfirio Gonzalez Alvarez, CEO, OMA-Grupo Aeroportuario del Centro Norte Juan Visoso del Valle construction coordinator for the Aak-Bal resort in Campeche. Presiding: Angel Macías Garza, Executive Vice President of Infrastructure, CMIC Moderator: Eduardo Ramírez Leal, Executive Vice President for Delegations and Social Security Question and answer session

Panel 3: Tourist Resorts with Private Participation and new Roadbuilding Technology Ana Patricia de la Peña, Chairman of the Board of Directors AMDETUR Juan Vela Ruiz, Vice President of Promotora Turística Punta Bete, S.A.

de C.V. 19

September / October 2014

ACADEMIA

Gumaro Lizárraga Martínez, Founding President, GLM Comunicaciones

S.A. de C.V.

Presiding: Francisco Javier Solares Alemán, National Treasurer,

CMIC

Moderator: Roberto Calvet Roquero, Construction Director, ICA

Construcción Urbana

Question and answer session

Panel 4: Tourist Resort Financing and Business Opportunities in the Industry. Jacques Rogozinski Schtulman, CEO, Nacional Financiera (NAFINSA). Carlos Mier y Terán, Under Director of Ports, Airports and Tourism for FONADIN. Agustín Barrios Gómez Sequés, federal congressional representative and Secretary of the Ordinary Commission on Tourism of the lower house. John McCarthy Sandland, CEO, Leisure Partners. Presiding: Héctor Manuel Castellanos Frank, Executive Vice President of Development Banking and Public-Private Partnerships, CMIC. Moderator: Juan José Alberto Topete Rivas, President of the Nayarit Delegation of CMIC Question and answer session

Panel 5: Sustainable Tourist Infrastructure and Green Construction Sylvia del Carmen Treviño Medina, General Director of Environmental, Urban and Tourist Promotion, SEMARNAT. Pedro Antonio Gaeta Vega, General Director of Urban Planning and Management, Secretary of the Environment and Territorial Development, State of Jalisco. Luis Rubén Sánchez Cataño, former president of the College of Mexican Environmental Engineers Francisco Madrid Flores, Director of the School of Tourism and Gastronomy, Universidad Anáhuac del Norte. Presiding: Gustavo Adolfo Arballo Luján, National Secretary, CMIC. Moderator: Alfonso Chávez Vasavilbaso, Executive Coordinator for Environmental Affairs, CMIC Question and answer session

CONCLUSIONS With the participation of many industry specialists, some important projects and programs were introduced that will help promote tourism in all regions of Mexico, and to discuss new schemes of investment in the development and execution of infrastructure works to provide services to tourist resorts and developments. amdetur.org.mx

ACADEMIA

One proof of this was the well-defined set of investment projects contained in the National Infrastructure Program for the next four years, the Competitiveness Agendas for 44 priority destinations, and the program of 83 “Magical Villages,” which includes the development and promotion of the Nayarit and Jalisco Riviera, a world-renowned tourist destination. In the meeting, speakers commented on the commitment expressed by the federal government and the various departments of the Ministry of Tourism, and the National Tourism Promotion Fund (FONATUR), to improve the existing infrastructure and facilities at tourist destination, in close collaboration with the Ministry of Communications and Transportation, the Federal Electricity Commission, the Ministry of Agrarian Territorial and Urban Development, state and municipal governments, and private enterprise, totaling 181 billion pesos in estimated investment through 2018. A topic that generated considerable interest among participants in the meeting was the new Sustainable Building Standard, including the support offered by Nacional Financiera to identify projects, the support and financing offered by the National Infrastructure Fund to states, municipalities and high-level projects, and the concept of green construction and resilience in sustainable tourist infrastructure, as well as the handling of construction and demolition waste. Finally, the National President of the CMIC, Luis Zárate Rocha, spoke about how important it was for Congress to approve reforms and amendments to the Public Works and Related Services Law, because this is the legal framework under which the industry operates. The current law, he says, is out of step with the demands of the National Infrastructure Program, not only for the development of tourist infrastructure but for al six of the basic pillars announced by the President.◄

Roberto Calvet Martínez Vice President for Tourist Infrastructure Mexican Construction Industry Chamber ►

September / October 2014

“There is a clear, long-term strategy in place, and the National Infrastructure Program projects investment of 181 billion pesos between 2013 and 2013, in which the participation of private enterprise is crucial. “With the combined and coordinated efforts of all three levels of government, together with the private sector, we can make decisive progress on important regional and national projects. “Tourism is an activity that involves us all, because it is a potential area of development for various parts of the country. CMIC and its affiliated companies who specialize in this industry are prepared to successfully respond to this challenge and capitalize on its opportunities.”

· · · · · ·

900 empresas expositoras. 35,000 metros cuadrados de piso de exhibición El sistema de citas de negocios contempla alrededor de 20 mil citas preestablecidas. Se esperan más de 12 mil visitantes profesionales Cobertura de más de 300 medios de comunicación nacionales y extranjeros. Participación de las principales cámaras y asociaciones turísticas: AMAV Nacional, CANAPAT, COTAL, AMAV DF, CONEXSTUR, CONCANACO, IGLTA, AMTAVE, ATTA, MPI Capitulo México, CONFETUR, AFEET, AMATUR.

En el área de academia, una vez más, en coordinación con la UVM el foro “México” una marca Turística, Gastronómica y Hotelera sostenible.

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