AMDETUR Editorial
Dear Readers,
A
s we close out the old year and welcome the new, I would like to send my warmest greetings and best wishes to all of you.
The start of a new year always brings challenges and new goals
to pursue, and tourist activity is no exception. 2012 still looks to be a complex year for Mexico in many senses. It is an election year, in which we are faced with the challenge, along with the National Tourism Business Council, of establishing contact with each of the candidates to make them aware of the importance of our industry as one of the primary sources of revenues for Mexico, and to secure their commitment that if they are elected, they will support and facilitate the measures necessary to make tourism of true national priority, as it has been reiterated in so many tourist industry forums. Although substantial progress has been made with the National Agreement on Tourism, we need a more demanding program that can yield short-term results. We need to rapidly restore the flow of tourism to our country, in keeping with the ambitious goals that the agreement itself set forth, through more aggressive and effective
Cordially, Juan Vela RUIZ President
campaigns to counter the perception of insecurity in Mexico that still prevails in some sectors, and the remaining effects of the global economic slowdown, seeking to consolidate our natural markets, on which we are highly dependent, but at the same time turning the equation around to conquer emerging markets that show greater vigor and offer clearer growth opportunities. This is a crucial moment for promoting our industry with joint action between government and private enterprise. 2011 will go down in history as the “Year of Tourism�, but our commitment is not just for one year. We must continue to work to build a competitive industry which is at the forefront of the highest quality standards. This year, AMDETUR turns 25, and we believe this is a magnificent occasion to reiterate our commitment to all of our members. We invite you to participate with us in the celebration, as part of our annual convention to be held in June of this year, and also to be an active part of AMDETUR. Send us your comments or suggestions for enriching our work program for 2012.
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AMDETUR
www.amdetur.org.mx In this Issue:
Board of Directors Chairman Juan Vela Ruiz Grupo Velas Executive President José Alfonso Bayón Ríos Amdetur Secretary Gerardo Rioseco Orihuela Fiesta Americana Vacation Club Treasurer Jaime Márquez Vargas Royal Holiday General Counsel Juan Manuel Gutiérrez Nava Lecumberri, López y Gutiérrez Nava Counselors Carlos Berdegué - El Cid Resorts Ricardo Montaudon Corry - RCI Kemil Rizk - Royal Resorts Marcos Agostini - Interval International Juan Carlos Barillas – Sol Meliá Vacation Club Jorge Pallas Cáceres - Promotora Cancún Sunset Clubs Juan Ignacio Rodríguez - RCI Robert Louis Kistner - Grupo Villa Director Rosa de Jesús Lugo Dorantes
Notitur is the official magazine of the Asociación Mexicana de Desarrolladores Turísticos, A.C. (Amdetur) (Mexican Resort Development Association), published four times a year for its members and major official tourism organizations in Mexico. Notitur’s digital version in English is electronically distributed in several countries. All rights are reserved. This publication may not be reproduced in whole or in part without the prior written permission of the publisher: Opinions expressed in this publication are not necessarily those of the editor or Amdetur and no responsibility is accepted for lack of precisions in editorial or advertising content. Original magazine hard copies printed in Mexico. Amdetur: Montecito 38, Piso 32, Ofics. 11 a 14, Col. Nápoles, México 03810 D.F. Certificado de Licitud de Título No. 3856, de fecha 19 de abril de 1989. Certificado de Licitud de Contenido de la Comisión Calificadora de Publicaciones y Revistas Ilustradas No. 3172 de fecha 19 de abril de 1989. Número de Certificado de Reserva otorgado por el Instituto Nacional del Derecho de Autor, Secretaría de Educación Pública, 04-2005030817343600-102. NOTITUR JANUARY – MARCH 2012. e-mail: amdetur@prodigy.net.mx
14 Better Safe than Sorry!
Since July 2010, the Mexican government has developed legal reforms involving class actions which affect all sectors that are closely related to the environment, including the tourism sector.
18 Health Tourism
Health Tourism importance has been gaining strength for the last two decades, opening new opportunities for the creation of new concepts such as Telemedicine.
Sections: 4 AMDETUR
NOTITUR President Juan Vela Ruiz Executive President José Alfonso Bayón Ríos Publisher Aurora Martínez V. Graphic Design Reacción Gráfica S.A. de C.V. Tel. 52(55) 5004-4176 Art Director Sergio Octavio Funes Navarrete tavofunes@reacciong.com English Translation Elizabeth Collins Morrison elizcollins@mac.com Distribution AMDETUR Amdetur Photographer José Mata Cel. (04455) 1885 8581 www.pbase.com/ppmata LOCAL ASSOCIATIONS Patricia de la Peña Asociación de Clubes Vacacionales de Quintana Roo, A.C. Alejandro Lemus Mateos Asociación de Desarrolladores y Promotores Turísticos de Tiempo Compartido, A.C. (Puerto Vallarta) Jorge Téllez Landín Asociación Sudcaliforniana de Desarrolladores de Tiempo Compartido, A.C. Emmanuel Omaña Camín Asociación de Promotores de Clubes Vacacionales del Estado de Guerrero, A.C. Fernando de Leeuw Santiago Asociación de Clubes Vacacionales de Cozumel, A.C. Fernando Madero Irizar Asociación de Clubes Vacacionales de Sinaloa, A.C. Raúl Manzanares Romero Asociación de Desarrolladores y Operadores Turísticos de Ixtapa y Zihuatanejo, A.C.
If you would like to receive the electronic version of Notitur in Spanish or English, you can request it at:
aurora.martinez@prodigy.net.mx
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NOTITUR
This year, our Association is celebrating its 25th Anniversary with great satisfaction and gratitude to each and every person, company and authority that have collaborated with us along the way.
8 How the US and Canadian Economies May Impact On the Mexican Tourism Market?
In the opinion of Peter Tarlow, it is very important to develop media campaigns addressed to North American and Canadian markets in order to turn insecurity news into its real dimension.
10 Vacation Time-Share sales in Brazil
Timeshare products in Brazil are gaining popularity. Sales are up year-to-year, currently accounting for almost 25% of the total of this type of sales to local residents in Latin America.
AMDETUR
Another Step Forward in Linking Academe with Tourism Industry
O
n November 17 took place an event that represents one more step in the program to forge ties with educational institutions, which AMDETUR and some of its Associates have been working on for a number of years. Wilfrido Perea Curiel, General Director of the National College of Professional Technical Education (CONALEP) and Juan Vela Ruiz, President of AMDETUR, signed an Educational Cooperation Agreement whose
Tomás Pérez Alvarado, Academic Development and Training Secretary of CONALEP; Ramón Picazo Castelán, General Secretary of CONALEP; Wilfrido Perea, General Director of CONALEP, and Juan Vela Ruiz, President of AMDETUR, during the signing of the Educational Cooperation Agreement between CONALEP and AMDETUR.
main purposes are: to join forces in promoting the quality and currency of professional training for the tourism industry, and enrich cooperation to establish methodologies and new technologies that will meet the current and future needs of Mexican tourism developers. The agreement establishes that the participants will jointly decide on the actions to be taken, prepare and coordinate a work
program, and follow-up on the activities by means that include regular evaluation of the results. Appropriate mechanisms will also be designed to give both students and teachers in the CONALEP system access to companies for the purposes of carrying out Professional Internships that help train potential sales, administrative and operational personnel that meet the needs and competencies required in the tourism industry.
Real Estate Fonatur By Jorge A. Castañares Moreno Vice President, MARHNOS Real Estate
W
hen Enrique Carillo Lavat took office as the General Director of the National Trust Fund for the Development of Tourism (Fonatur) in November 2011, the Fund assumed a new Real Estate Fonatur shape -a focus that in my opinion Fonatur has been neglecting for some time, and was crucial to take up again. FONATUR has been undeniably important as the executive arm of the federal government in promoting tourism investment in Mexico. Its Integrally Planned Centers (IPCs) like Cancún, Huatulco, Ixtapa, Los Cabos and Loreto, have been sources of orderly regional development, jobs and foreign currency revenues, with more than 70 million tourists visiting them in the past 30 years. But the challenges faced by Fonatur's new director will put to test the
capacity and experience he has demonstrated in the real estate industry for many years. The other three IPCs that Fonatur is currently working on--Playa Espíritu, Marina Cozumel and Costa Capomo-- urgently require that Fonatur resumes its real estate activities and put together the master plans in record time. Enrique's arrival at Fonatur is backed by his track record in the real-estate and financial industries, and as I see it, the issues on his desk right now can be summed up in the following areas: • A greater involvement of public financial institutions (development banks) and private firms (commercial banks) in lending for investment in the tourist industry. • Increasing tourism investment in Mexico, improving competitiveness and pursuing synergies among the agents involved in the industry, to promote more than just destinations: "city branding," throughout the Mexican territory.
• Consultancy and guidance in searching for the best investment opportunities for domestic and foreign investors, in order to promote the harmonic development of the Mexican tourism industry. Carrillo Lavat not only faces the challenge of bringing Fonatur back to its role as real-estate developer, but pursuing public and private strategic alliances, to provide the intended new IPCs with the land and air connectivity, infrastructure and services they require, because the absence of these elements were clearly the reasons for the failure of other integrally-planned centers like Huatulco and Loreto. I have had the honor of personally knowing Enrique, and I am familiar with his tremendous capacity for work, professionalism, and dedication. I only hope that his appointment can transcend the change of presidential administration in 2012, because the recovery and growth of tourism investment in Mexico cannot be completed in less than a year of work. www.marhnos.com.mx; Twitter: @JCastanares
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AMDETUR
This year, we're celebrating the 25th anniversary of AMDETUR, and we are delighted to have shared and continue to travel along with our friends the path that has brought the vacation ownership industry to the outstanding place it occupies today within the Mexican tourist industry. And with renewed energy, and many plans to pursue, we urge all our members and affiliates to continue working together to attain the goals that constitute the path to sustainable growth and to the achievements we have set forth for ourselves. As part of our effort to recognize those who have been influential in AMDETUR's growth over the years, we have invited Alberto Villada, founding president of the Association, to comment on these first 25 years.
Celebrating 25 Years
of
AMDETUR By Alberto Villada Camerino Founding President of AMDETUR
D
uring the conference of the American Resort and Residential Development Association (ARRDA – currently the American Resort Development Association, ARDA), held in Las Vegas in 1986, then-president of interval international, the late Mario Rodriguez, invited me to a breakfast with Gary Terry, who was the president of ARRDA that year. At that breakfast we discussed a number of topics, among them the possibility of holding a tourist resort developers conference in Mexico, similar to what we had just attended. His response was positive, and when I returned to Mexico I brought the idea to Gumaro Lizårraga, Vice President of the Tourism and Urban Development Division of Grupo ICA. He was incredibly supportive of the idea, and that was the beginning of what is, today, our Association. As a result of that chat with Gary Terry, in January 1987 the first conference of Mexican tourist resort developers was held, cosponsored by Grupo ICA and ARRDA. In the threeday conference, participants held meetings with the idea of organizing Mexico's tourist resort developers, who due to
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the industry relevance could see the need of having a group that would serve as a common representative for the sector, which at the time was barely emerging. It took many meetings, analysis sessions, and long talks, to finally bring together the various lines of thought, and finally achieve what seemed like a tremendous enterprise, but which was vitally important to our future. By the month of July 1987 we saw our ambitions and our goals realized in the union of the eight companies that originally formed the Mexican Resort Development Association, AMDETUR.
The Traveled Distance Looking back, it's amazing to see the progress we've made and the importance that this Association has gained over the past 25 years. Reviewing some of the milestones, in August 1987 the first national timeshare meeting was held, organized by the Ministry of tourism, which AMDETUR attended as a participating Association. In the same year I had the honor of signing the organizational charter of the National Tourism Business Council (CNET),
AMDETUR
of which AMDETUR is proud to be one of the founding organizations. Another major achievement was the publication of our own news bulletin, Notitur, which continues to be published today and is without a doubt one of the most important tourist publications in Mexico. Since its beginnings, AMDETUR has been a major factor in various phases of this industry's development. For instance, in 1989, it helped draft the regulation for tourist services provision in the timeshare system. Under the presidency of Fernando González Corona, in 1990, AMDETUR created an educational institution. With Sergio Montero Querejeta, in 1990-93, this Association participated as a member of the investment desk of the free trade agreement between Mexico, the United States and Canada. Also, during the term of John McCarthy, AMDETUR was appointed a member of the Executive Council on Tourism, in 1993. In that same year, following intensive work involving AMDETUR, the Ministry of Tourism, the Mexican Federal Consumer Protection Agency, and the Ministry of Trade and Industrial Development, the official national standard on the timeshare industry was published. All of this gives us an idea of the vigor and the influence that AMDETUR has had in many activities essential to the industry's evolution. Among other milestones, I remember that Eduardo Chabert promoted the first vacation ownership advertising campaign, with the slogan “commitment to service." Under the presidency of Raul Sánchez Rucobo, the Latin American Confederation of Tourist Developers (LADETUR) was founded. During the administration of Mario Muro Aguierre, another national standard, called NOM 029 (Commercial Practices, Information Requirements for the Sale of Timeshare Services) was issued. Under the presidency of Manuel Niembro Tapia, AMDETUR was made a regular member of the board of governors of the Mexican Tourism Board (CPTM); and signed the Global Alliance for Timeshare Excellence, together with various associations from the United States, Canada, South Africa, Australia, Argentina, and the European Timeshare Organization. Between the years 2000 and 2002, when Pablo González Carbonell was President of the Association, AMDETUR underwent a modernization, becoming stronger and solidifying its position and influence in the tourism industry, and also publishing five different manuals: promoter training, liner, closer, sales manager, and marketing manager. During this period, the first economic impact study and the first legislative study were published, both of which were tremendously important and influential for this industry. In the next administration, under the leadership of Luz Maria Torres, substantial progress was made regarding the income tax law, and we secured the support of the Ministry of Tourism in updating the economic impact study of timeshare in Mexico. Under Jorge Pallas Cáceres, AMDETUR expanded its offices, giving the Association a new image, and later, during the term of Ernesto Coppel
Kelly, the tourism authorities of Mexico were called upon to work together with the private sector and the Ministry of Tourism, to address problems that were affecting the image of tourism in Mexico's leading destinations. Among the main points addressed in this phase were the optimization of natural areas like mangroves and dunes. We were also present in the first Inter-Secretarial Tourism Session, as it was transformed into the Tourism Consultancy Counsel. We worked closely with CNET during the presidency of José Carlos Azcárraga, in eliminating the precautionary principle, and making considerable progress toward the question of the mangroves and recovery of beaches in Cancun, the Mayan Riviera, and Cozumel. It was during this phase, in the year 2009, when a new document outlining the vision, mission, and values of AMDETUR was drafted. Today, under the presidency of Juan Vela Ruiz, some aspects of AMDETUR are being updated, and the Association was also present at the signing of the National Agreement for Tourism, which was led by the President of Mexico. Since 1987, AMDETUR has held a series of conferences for Mexican tourist resort developers, which have dealt with various topics related to our activity and in each of which specialists have been invited to update us on the latest advances in the industry. Looking back on this process, we become aware of the history, impact and importance that our Association has for tourism activity in Mexico. The journey is far from over, in fact it seems that this is a spark that was lit 25 years ago, and still has a long way to go and much to contribute to the benefit of new generations in our industry, in tourism and in our beloved Mexico.
Alberto Villada today works at Grupo Questro as director of Puerto Los Cabos and Club Campestre San José resorts in Los Cabos. He started his professional career in Grupo ICA where he held various positions such as Business Manager for the Tourism and Urban Development Division, 1986 – 1988, at the time he also took office of AMDETUR. He was also Under Director of development for the tourism division at Bancomer, and manager of development for Camino Real hotels, in the Grupo Real Turismo, among other major positions in the urban and tourism development industries
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Enterprise
Mergers and Acquisitions: Alternatives for Expanding your Business An economic climate like today's is complicated, but it can also contain opportunities. The financial markets are recovering, which will undoubtedly fuel the appetite of companies who need to grow by buying up competing or complementary businesses. In Mexico's case, there are opportunities for buying and selling companies, particularly those that can't find other channels of funding.
By Todd McClurkan, Partner, and Fernando Torres, Consultant, Transaction Services KPMG Mexico Based on preliminary data, in February 2011 the Ministry of Economy estimated that foreign direct investment in 2010 was more than 17 billion dollars, 16.6% more than in 2009. The climate in Mexico is favored by the impact of venture capital funds, which broke a record in 2010 by raising 8.1 billion dollars in investment for Latin America, 122% more than in 2009, according to data from the Latin American Venture Capital Association. Today we are seeing the results of these activities as venture capital funds seek out more investment opportunities.
Generally speaking, the world was turned upside down in 2011: the strongest economic growth was in emerging countries, one of which was Mexico. Meanwhile, developed countries like the United States and Greece, continue to face economic difficulties. We can therefore expect more corporations, venture capital funds and international investors to continue investing in Latin America. As a result, we expect the pace to continue, and in terms of transaction volume, 2011 may end at a similar amount to 2010, although it will probably not reach the same level in terms of the value of the transactions.
Announced Acquisitions of Mexican Companies Value
Volume
70
20.8
56 51
58 15.2 47
44
16.0
15.4
51
52
44
13.4
12.0
37
36 9.1
4.5
9.6
9.3
3.6
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Public information. Analysis by KPMG.
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Number of Announced Acquisitions
ith market liquidity and companie’s appetite for optimizing their costs and accelerating their growth, 2011 saw a boom in mergers and acquisitions, similar or even more intense than in 2010. A number of analyst agree that the value of the transactions announced in Europe, America, Asia and Africa was at least of 2.1 billion dollars in the first eleven months of 2011. In the first quarter of 2011, global mergers and acquisitions totaled 717 billion dollars, 58% more than in the same period of 2010. Although traditional financing flows slowly, money market liquidity spurred on the mergers and acquisitions (M&A) segment. A scarcity of bank funding for company operations, volatile markets, and growth problems in most economic sectors, combine to create a climate ripe for mergers and acquisitions, in which companies with liquidity and access to resources can put together consortiums to mutually provide services, through consolidations at attractive values. In 2010, in Mexico a total of 16 billion dollars in M&A were announced, higher than the average for the past 10 years, which was 11.3 billion. Given the current state of the economy and recovery in confidence, this is a good time to learn more about structured processes for business purchases. As for incentives, the Mexican economy has plenty, with a stronger currency and a dollar that in March was barely above 12.15 pesos. Not even insecurity problems have dampened these incentives.
Billions of Dollars
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Enterprise
An acquisition with no mysteries or surprises
Conclusions
In Mexico, there are very good examples of purchases and sales of companies in various industries. Companies interested in a transaction should evaluate the situation and their prospects for being a buyer or a target, depending on whichever position brings the most advantages: a company with development potential but with no funding access may take a quantum leap by merging with or being acquired by a larger firm, or finding an investor to provide that funding. Companies cannot remain static, waiting passively for investors that might not come. They can do a lot to fortify their position, broadcast their potential, shed a light on their strengths, and in general increase their appeal and therefore the price they might bring. A similar but opposite situation applies to those interested in buying out their competitors or another business to improve or complement their market position.
To be able to sell at the best price, entrepreneurs must prepare accounting, tax and payroll information in a way that reveals the value of their businesses. The same is true for buyers, who must investigate and evaluate the value, competencies and synergies of the target company, which could be facilitated through a structured process that includes analysis and a series of studies that can help to confirm the impact of the acquisition and integration of the business (due diligence), carried out by professionals.
Seems like a good idea
Strategic alignment
Identifying the target
• Understand clients' needs (e.g. Do we need a product to complement our existing line?) • Identification of market opportunities • Analysis by business unit • Regulations (antimonopoly laws, for example) • Optimization of tax aspects
• Strategic positioning • Identifying deal drivers and synergies • Market share • Preliminary business assessment • Critical business plan • Exclusivity contract letter of intent
During the transaction
Closing the transaction
Access to management or data room
Negotiating the contract and reaching the price
• Analysis of key business indicators and synergies • Quality of profits, assets, working capital and cash flow • Identification of debt and similar items • Analysis of accounting policies • Review of management projections • Human resources structure and compensation plans • Identification of legal, environmental, tax, and other risks and opportunities
• Review of dispute resolution mechanisms • Establishing financial definitions (e.g., EBITDA) • Inclusion of penalties and guarantees • Pricing mechanisms • Review of contract riders (e.g., disclosure schedules) • Bases for preparation and presentation of closing balance sheets • Tax payments
Todd McClurkan is a partner in transaction services, within the KPMG Consultancy Practice in Mexico. He has more than 20 years of experience, the last 12 of which have been focused exclusively on consultancy in mergers and acquisitions, focusing on the evaluation of profits and transaction structuring, among other aspects.
Closing balance
Integration
sheet
• Reorganization and cost-cutting • Integration of the information system • Analysis of purchase price • Working capital efficiency • Identification of redundant positions • Monitoring process
• Preparation of closing balance sheet • Defining and negotiating adjustment to purchase price • Intangible value assessment by purchase price • Integration plan (100 day plan)
Source: KPMG Note: This chart is intended as a general illustration and should not be considered legal, tax or professional advice.
Fernando Torres is transaction services advisor, within the KPMG Consultancy Practice in Mexico. He has been in business for more than 7 years, assisting corporations and private venture capital funds in the United States, Europe and Mexico, in the purchase of public and private businesses. His specialty is private equity funds.
asesoria@kpmg.com.mx Visit: www.delineandoestrategias.com Winter
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Industry
How the
US and Canadian Economies May Impact Mexican Tourism Market
Travel Trends in the Near/ Middle Future
A point of view… By Dr. Peter Tarlow, President of Tourism & More, Inc.
T
here is a classical saying that after the age of Biblical prophecy closed, only fools and children try to predict the future. While all businesses must work on some form of future planning, honestly all forces any writer to admit that often the wisest of modern prophecies may be wrong. Despite this caveat there are a number of indicators that provide us with some insights into the future of the North American travel market to Mexico. Currently the most important indicators are: 1. Mexico’s location and cultural richness 2. The cost of energy 3. The state of the US and Canadian economies 4. The value of each nation’s currency 5. Mexican security issues 6. The way the media choose to portray Mexico It must be emphasized that none of these factors are independent one from the other. Thus, there are multiple interrelationships between them that often form a cybernetic patterns making prediction that is much more difficult. Despite these difficulties we can make certain statements with surety and others with high probabilities of accuracy. 1) Mexico will continue to hold an especially prime location. The country is within only a few hours flight time from the large United States and Canadian population centers. It is also the only country in North America to escape cold winter and snow conditions, and its beaches are world-renowned. It is further blessed to have good
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NOTITUR
working relations with its three neighboring countries. Mexico’s prime geographic location is something that will not change and can be used as a major contributor toward national tourism and second home foreign development. Furthermore, Mexico is blessed with a wide range of geographic zones, from mountains to beaches, from tropical areas and jungles to arid planes. To add to this geographic bonanza, Mexico has a treasure trove of archeological wealth and is one of the few places where visitors can view pyramids in North America. 2) Mexico is a major oil-producing nation. This means that Mexico is not dependent on other nations for energy, and to a great extent can control its own destiny with regards to national transportation costs. 3) Like most nations’ tourism industries, Mexico’s tourism is dependent on the leisure traveler and their willingness to spend discretionary income. If the United States economy continues to weaken, this will impact Canada’s economy. Under recession and/or near recession conditions, leisure tourism tends to contract. When the economy is bad, people demand high levels of customer service and top quality for their money and tend to be less tolerant than at other times of bureaucratic hassles. These issues are central to the success of Mexican tourism. Mexico needs to provide not only sun and sea tourism, fine food, and interesting history, but also excellent customer service and tourist friendly solutions when things go wrong. Furthermore, as the United
Industry
States and Canada’s populations continue to age, these tourists will become increasingly concerned about the state of health care in Mexico and the purity of its food and water supplies. Mexico needs to assure that tourism areas have not only clean water and healthy foods, but it also needs to assure that major tourism areas are not polluted by garbage or illegal drainage into areas close to where people swim. Lastly, Mexico needs to assure its United States and Canadian visitors that they will have access to Mexico’s health care system and that in case of emergency these visitors will not be denied coverage. 4) Currency issues. The cost of a Mexican vacation and/or second home is to a great extent dependent on the cost of its currency. Mexican prices are valued in pesos. Should the peso rise that a Mexican vacation becomes that much more expensive, should the value of the peso fall against the US or Canadian dollar -then assuming that Mexican tourism areas do not raise their prices accordingly, the Mexican vacation becomes that much less expensive. 5) Tourism security and safety. In recent years Mexico has suffered from a reputation of being unsafe. That does not mean that all of Mexico is unsafe, but people tend to generalize and Mexico cannot ignore the fact that there are other alternatives to a Mexican vacation. If Mexico cannot regain control of its security situation in those areas, then despite the nation’s many tourism advantages, its tourism industry may face an increasingly difficult set of challenges. 6) Media portrayal. Mexican tourism, like that of so many other national tourism industries, can be harmed by one single incident that the media chooses to turn into a cause célèbre. Mexico has to keep up its work in order to turn alarming news into its real dimension.
placing the viability of Europe in jeopardy. The Mexican tourism industry should expect this period of economic turbulence to last for a considerable amount of time. • Mexican tourism must develop creative bundling packages. For example, packages that allow business travel to be combined with family vacations. Encourage hotels to include breakfasts, internet services and other amenities within the cost of a room. • Mexico must provide the best customer service possible. When money is tight our tolerance for bad experiences is even less. These are the times in which we cannot make customer service mistakes, and if a mistake is made, make sure to apologize and correct the mistake. In economically challenging times, no one wants to hear excuses for customer service errors. Unfortunately, the travel and tourism industry cannot change the world's economic policies, but travel and tourism representatives must remind Mexico’s leaders that a safe and secure environment are essential for the Mexican tourism industry’s survival and national prosperity.
Some Actions to Support Tourism Here are a few suggestions on ways Mexico needs to protect its current tourism industry and expand it as an economic development tool. • Mexican tourism officials need to emphasize that headlines are not necessarily reality. It is essential that Mexico develops a rapid response media team that can make sure that the US and Canadian markets know the truth. Mexican spokespeople need to be able to communicate in impeccable English. • It is essential for the Mexican tourism industry to face the current worldwide economic crisis. This global crisis is affecting not only in the US and Canada. Both China and Germany are now facing economic crises, and Europe’s so called “piigs” (Portugal, Italy, Ireland, Greece and Spain) are
Dr. Peter E. Tarlow is a founder and president of Tourism & More Inc. (T&M). He is a world-renowned speaker, expert and author in tourism security and lectures at major universities around the world on current and future trends in the tourism industry, rural tourism economic development, and international trade, among others. He also works with numerous cities, states, and foreign governments to improve their tourism products and to train their tourism security professionals. ptarlow@tourismandmore.com Winter
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Industry
Sale of Vacation-Time Share properties
growing rapidly and steadily in
Brazil
By Ricardo Montaudon, President and Executive director, RCI Latin America
A recent study reveals the Brazilians are seeking to better administer their investment in entertainment and vacations.
I
n recent years, Brazilian tourism has been doing fairly well. A study by the Brazilian Institute of Public Opinion and Statistics (IBOPE) revealed that 40% of Brazilians travel three or more times per year, while the middle class, in particular, travels twice a year. The main reason for this phenomenon is the positive impact of economic growth on the lower and middle classes, combined with the appreciation of the local currency (real) against the dollar. On this matter, Brazilian tourism specialists are very optimistic about growth projections for the coming years. In addition to the positive economic climate, Brazilian consumers are learning to research,
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NOTITUR
compare prices and negotiate. This is why in Brazil, timeshare products are gaining popularity, as evident in the brisk growth of sales in this segment in recent years. In the past 2 years, timeshare sales are up by 50% year-to-year. Among these, timeshare sales in Brazil today account for almost 25% of the total of this type of sales to local residents in Latin America. To better understand the importance of the timeshare segment, bear in mind that nearly 6.1 million families are associated with the timeshare and vacation exchange system and that these generate more than 3.3 million exchanges worldwide.
Industry
The products available are widely varied by type and price. The most common and most popular in Brazil grant a right to use of 10 to 15 years and give the owner the right to an average of one week of lodging per year.
Market preferences One of the most popular destinations for Brazilian travelers is the United States. When they have the opportunity of making an international trip, Orlando is the top choice, followed by a Miami, New York and Las Vegas. Mexico has become more popular among Brazilian travelers than Argentina, with a 12% increase in the number of bookings from 2010 to 2011; Cancun, the Mayan Riviera, Puerto Vallarta and Los Cabos are the most popular destinations. In Mexico, Brazilian travelers feel welcome from the time of their arrival, appreciating not only the quality of Mexican hotels but also the warmth of the people and the way those who greet them always try to make them feel “at home”. Brazilians love to explore, and above all, once they’ve visited a destination and enjoyed it, they're sure to recommend it to all their family and friends. That's why it's common to see a large number of individuals or groups come together to arrange joint travel; and coming back to the same destination year after year is never a problem, provided they always feel welcome and feel like they're being given an added value. Another good reason for travel is shopping. The current exchange rate and the high price of both domestic and imported products for those who live in Brazil have made shopping outside the country a great idea. Brazilians not only love to buy clothing, electronics and perfumes, among other articles; but according to the Real Estate Life magazine (data on construction and sale of properties) and Folha de Sao Paulo (one of the most prestigious newspapers in the country), Brazilian homebuyers have taken up approximately 25% of the inventory of home sales in the city of Miami since the 2008 crisis. “Buying is a passion, it's something that Brazilians have in their DNA; what's important is to find the right offer, at the right time.” Here we should point out that one of the main factors in deciding to buy a property, whether home or a timeshare product, is the monthly payment, which must be proportional to the buyers’ monthly spending budget. In other words, consumers pay more attention to this figure than to the total value of the product they're buying.
The industry in Brazil Today there are more than 55 timeshare salesrooms operating throughout Brazil. The most popular destinations for timeshare sales are the states of Goias, in western central Brazil, and Ceara in the Northwest. The buyers are 99.9% Brazilian, and come from all over the country although most of them Southeast—particularly the states of Rio de Janeiro, São Paulo, and Belo Horizonte. Some of the most successful sales companies are: Rio Quente Resorts, Beach Park, Royal Holiday Club, and Pestana Hotels. The industry was introduced into Brazil by RCI® (Resort Condominiums International), a global leader in vacation exchange and an expert in the vacation ownership industry, part of the Wyndham Worldwide group (NYSE: WYN) within its Wyndham Exchange and Rentals (WER) division; and it has more than 97,000 properties in more than 100 countries. Founded the United States in 1974, RCI ® has been deeply committed to the development of the business in Brazil since 1992, a commitment that extends to both its investors and to its buyers, and this commitment has translated into an almost absolute leadership in the Brazilian market. This industry, which is been active in South America for more than 20 years, has aroused a great deal of interest in recent years and has become increasingly popular among consumers. From the perspective of the hotel investor or second residence developer, it complements the business by helping to recoup their investment, and to increase their occupancy rates. Clearly, timeshare has become an interesting choice, particularly for the new Brazilian middle class. At the higher end of the market, there is the Fractional product (a more exclusive type of timeshare product, with fewer owners per unit and directly related to the concept of ownership). RCI® together with the Registry collection®, the world's largest luxury vacation ownership program, and one of the brands of Wyndham Worldwide (NYSE: WYN), conducted market research in the country's two largest cities: Rio de Janeiro and São Paulo. There, they found strong interest in potential in the Brazilian market for the Fractional product. Today, this business segment includes major brands like Odebrecht (the largest private Brazilian firm), with Quintas Private and Itacaré Paradise in the state of Bahia and Aguatiba Privilege in Parana.
Ricardo Montaudon is currently President and Executive Director of RCI for Latin America. He has more than 20 years’ experience in the vacation ownership industry, and has successfully held various positions such as Manager of Affiliations and Affiliations Service Director for RCI Latin America, and General Director of RCI Brazil, among others. Ricardo is also a founding member of the Mexican Resort Development Association (AMDETUR).
Winter
11
Sustainability
Better safe than sorry! By Alberto Silva Director, Environmental Department oodrich Riquelme and Associates
Class Actions:
An alert for touristic real estate companies. 14
NOTITUR
Sustainability
Due to the importance of the legal reforms and additions that have been made to different codes and laws in order to introduce Class Actions in Mexico, and how they affect our sector, we will be presenting important information on this topic in two follow-up editions. This feature points the environment – tourism industry chapters where Class Actions can be promoted, and the following edition’s article will refer to the legal rights that particularly affect timeshare.
T
he Class Actions were developed in the frame of current social and economic systems (derive from Industrial Revolution), which have begun to affect not only individuals easily identifiable but groups of people in a collective context. In recent years, large-scale works on sensitive ecosystems, the improper handling of wastes generated by anthropogenic activities and the irrational use of natural resources, have impacted significantly on the environment and the lives of individuals or communities aware that, before the amendments, were limited to enforce its rights to a healthy environment. The lack of legitimacy for those who were affected, made, on the one hand, impossible the access to justice for those who wanted to sue or demand respect for their fundamental rights and, moreover, allowed companies or corporations to act in breach of environmental legislation with the certainty of not being sued by communities or individuals affected by their actions or activities. Indeed, were these situations, amongst others, which began to generate “classes” of actors or plaintiffs, which gave rise to what is known in the US as “class actions”. Since July of 2010, the Mexican government has developed legal reforms involving class actions, which invariably affect all sectors that are closely related to the environment, including the tourism sector. These actions recognize individuals or communities’ right to exercise legal actions against companies that are likely to cause damage to the environment or, where appropriate, failed to comply with the environmental legislation at the federal and/or local level. Such legal actions may begin to be used within 6 months after its publication in the Federal Official Gazette i.e. March 1, 2012.
Legitimate interest in environmental matters Along with the package of reforms of class actions, the term “legitimate interest” has been incorporated in environmental issues. The amended article 180 of the General Law1 provides an administrative procedure called “Recurso de Revisión” against any person or company that, during the performance of its activities, violate the provisions of environmental laws and regulations, which allows third parties to challenge administrative acts (authorizing such activities) provided they show an impairment of the environment (legitimate interest) without having to provide a legal justification (legal interest). The mechanism itself has already proved its effectiveness. In 2011, the Mexican Supreme Court of Justice (the “Court”) ruled in favor of a neighbor from Quintana Roo, who claimed the lack of enforcement of the Ecological Regulation Program for State Territory during the process of issuance of the environmental impact authorization. In its ruling, the Court emphasized that the development of legislation on collective and diffuse interests tend to expand the legal margins of public participation in environmental policy, through the possibility to claim by legal acts, damage to the environment for failure to comply with applicable regulations. The individuals or entities authorized or legitimate to promote class actions on environmental issues are: (i) the Federal Prosecutor for the Environment, (ii) the common representative of a community composed of at least 30 members, (iii) environmental civil associations that meet the requirements set forth in the law, and (iv) the Attorney General’s Office. The statute of limitations for class actions established that plaintiffs may claim for its correspondent remedy during a term no longer than 3 years 6 months, counted from the date on which it was generated the environmental damage ,or if the damage continues over time, the period begins on the last day that any damage to the environment is detected. The admission of this type of action is mainly subject to: (i) prove the existence of an environmental damage, (ii) that the damage claimed has not been resolved or still is to be resolved in other class action different from that exercised, to warrant that the claimed damage has not yet been resolved -it or its resolution is not still pending through a different action (e.g. individual ordinary action), and (iii) the type of action exerted is suitable to environmental damage claim, among others.
Winter
15
Sustainability
Any of the aforementioned actors may bring any of the following class actions: DIFFUSE ACTION
COLLECTIVE ACTION IN STRICTO SENSU
INDIVIDUAL HOMOGENEUS ACTION
Plaintiff
Any of the legitimate persons, without necessarily the existence of relation with the defendant.
Any of the legitimate persons, when existing express legal bond with the defendant by means of a legal provision.
Any of the legitimate persons, sharing a contractual relation with the defendant. .
Remedies
Restitution of damage redressing the affected objects to their original state before damages, or compensation of damage if its restitution results impossible, that shall be destined to a fund.2
Restitution of damage and indemnification for each member of the affected group.
Specific performance of the contract or judiciary rescission. As well as restitution of damage and indemnification for each member of the affected group.
At any stage of the proceeding and at the request of the applicant community that proves the urgency, the judge may order the responsible to implement the following precautionary measures: (i) cessation of acts or activities that may cause damage to the environment (injunction), (ii) performance acts or activities resulting from its failure to generate a damage to the environment, (iii) the recall or seizure of goods, instruments, samples and products directly related to the damage to the environment, and (iv) in general, any other measure that the Judge considers appropriate. In order to avoid and/or extend the imposition of those measures, the responsible of the damage may provide sufficient security to cover the possible impairment of the environment. It is important to note that if an individual is considered affected by environmental damage may –by a simple statement- voluntarily adhere to the action brought by the group (community), during any stage of the process and up to 18 months after the final judgment or settlement. To enforce Court judgments or agreements, judges are empowered to impose fines up to an amount equal to thirty thousand days of the general minimum wage in Mexico City (i.e. around MX$1,788,600), an amount that may be applied for each day that passes without the determination pending to be fulfilled. In conclusion, class actions constitute a powerful source for communities, associations and non-governmental organizations, since those actions open the scope of new claims in a wide variety of circumstances. Such actions should be reviewed and evaluated by the companies and business, whose activities are closely related with the ecological and environmental regulations, including those from the touristic sector. Alberto Silva is head of the environment department of the consulting firm Goodrich, Riquelme and Associates. His professional practice focuses on consultancy and representation of Mexican and foreign firms and various environmental matters related to infrastructure, real estate, mining, finance, and industry. asilva@goodrichrqiuelme.com 1 General Law of Ecological Balance and Environmental Protection. 2 When remedy of restitution is not possible, the regulation requires the creation of a fund, to be managed by the Federal Judiciary Council, for the deposit of money judgments in certain cases.
16
NOTITUR
EstadĂsticas Health Tourism
Health Tourism By Antonio Arredondo General Director Mexican Health Tourism Association
Health Tourism is generally considered a new concept, but over the course of history we can find countless references to it in all cultures, because people have traveled in pursuit of health for hundreds of years.
18
NOTITUR
A
lthough the roots of Health Tourism are ancient, it was not until the last two decades that the growth and evolution of communications and transportation fueled a boom in this type of travel, as with many other segments influenced by globalization. But one of the biggest reasons for its growing popularity is the existence of electronic communications media. These media substantially lower costs and facilitate the development of new concepts like Telemedicine, which makes it possible to send complete medical files, with clinical histories of laboratory and medical consultation results, to be analyzed at a great distance by other specialists. This gives patients the opportunity to receive a second professional opinion, and also supports the therapist in the processes prior to and following treatment, even permitting follow-up through videoconferencing. In fact, because of the current structure of Health Tourism, itineraries and packages are widely available with transportation costs low enough to make them accessible to most people. This is true also for those who have medical insurance, because today insurance coverage can be extended to many countries, like those available in some states of the U.S., which offer coverage in Mexico.
Health Tourism
Definition of Health Tourism The term Health Tourism may be confusing, because there are different definitions and types existing around the world. For the purposes of our discussion, it is important to have a clear definition and simple classification that encompasses all the related aspects. The definition used by the Mexican Health Tourism Association is as follows: • Health Tourism encompasses all the activities conducted by a person who moves from their own location to another for more than a day and less than a year, involving the need for at least one night's lodging, and the primary or collateral purpose of which is to receive some sort of health or wellness service. It also includes the companion of the person who will be receiving the service; travel may be domestic–when it takes place within a single country– or international; and it must be sustainable. Health Tourism is divided into 3 major groups: • Medical Tourism • Wellness Tourism • Alternative and Complementary Medicine Tourism (ACM) This last category includes disciplines that may actually be classified as Medical or Wellness Tourism, depending on the country in which it takes place. For example Thermalism is recognized by official health agencies as a formal medical discipline, part of the field of Medical Hydrology. In Spain alone, around 2 million medical treatments in spots are covered by the state. In Europe, therefore, Thermalism is included under Medical Tourism. However, in America it is not recognized by health institutions and is therefore considered part of Wellness Tourism when its purpose is to attain wellness, although it may also be classified under ACM tourism when it is sought out for therapeutic purposes. In Mexico, Medical Tourism has experienced unprecedented growth, driven by the increasingly large number of patients who go from one city to another within this country seeking services that are not available in all locations due to the degree of specialization. These services may be paid for by the patient himself, a private insurance company, or even travel expenses paid by official health institutions; which are provided for under their bylaws. In the field of international Medical Tourism, competition today is fierce, with many institutions offering the best services at the lowest price, aware that their funding for medical care is tight, particularly in the United States–which has prompted the insurance system to seek out better price options. For example, medical services in Latin America are up to 75% lower than in the United States. Countries like Costa Rica, Panama, Colombia, Argentina, Brazil, Cuba and Mexico, all offer medical tourism at excellent prices, and they also have the
appropriate certifications from the United States and from the insurance companies from which reimbursement is sought; insurance companies even encourage patients to seek care in countries like these, because of the substantial savings it implies. Alternative and Complementary Medicine are also gaining recognition in the medical industry, and we know this is a market with tremendous potential. Control and oversight need improvement, however, and statistical data are lacking, in addition to the many differences that exist in local and international legislation. Wellness tourism offers a number of services, including spas. In Mexico, this industry is growing at a rate of up to 15% a year and is highly attractive for American, Canadian and European tourists, who can find services at very attractive prices enhanced by favorable exchangerate ratios. Caribbean countries and Mexico have by far the greatest number of Destination Spas in the world. Although Latin America is taking great advantage of the Health Tourism industry, there is still a lot to do. Our region has beautiful beaches and a tremendous number of natural spas with thermal waters that can be exploited, so we can definitely learn from European experience to promote the development of different types of therapy like Thalassotherapy (a discipline that uses the natural healing qualities of seawater) and Thermalism (the therapeutic use of the properties of natural mineral waters).
The Mexican Health Tourism Association (Asociación Mexicana de Turismo de Salud, A.C.) is a nonprofit corporation. The Association’s main objective is to promote the Health Tourism industry growth in Mexico. It holds working connections with different chambers and other associations in Europe and the U.S., and its advisory council is formed by experts in the tourism, medical and academic sectors, which grants the professional and ethical service the industry requires. Winter
19
Statistics AMDETUR
Trend in Sales and Prices in the Premium Vacation Ownership Segment in Cancun and the Riviera Maya T
By Omar Chárraga Director of Real Estate CEURA, S.A. de C.V.
20
NOTITUR
he State of Quintana Roo, like all regions where Premium category housing sold (properties selling for more than US$200,000)–either vacation or urban– has seen a change in price points in recent years, resulting from the muchdiscussed crisis in the real estate and mortgage industries. Today, resort developers are selling homes not so much to investors and speculators, but more to end buyers; i.e., those who plan to use the home and are not focusing on its resale value or the possibility of renting it out during the seasons they are not occupying it. The cumulative absorption of new homes reach record lows in the last 2 years (2010 and 2011). This is been the result of a phenomenon that combines the prevalence of clients who are more analytical and risk-averse (perhaps excessively so); a significant decline in bridge loans to developers in tourist regions; and the more recent deepening of the crisis in European countries (many of which were the source of real-estate buyers, particularly in the Riviera Maya).
Statistics
Annual sales of Premium Product per Zone 1200
Annual Sales
1000 800 600 400 200 0 2005 2006 2007 2008 2009 2010 2011e
100% 90% 80% 70% Percentage
60% 50% 40%
All the regions where Premium category housing is sold (properties selling for more than US$200,000) have seen a change in price points in recent years. Today, resort developers are selling homes not so much to investors and speculators, but more to end buyers.
30% 20%
Riviera Maya
10%
CancĂşn
0%
2005 2006 2007 2008 2009 2010 2011e
Annual Sales in CancĂşn and Riviera Maya by Type 1200
Annual Sales
1000 800 600 400 200 0 2005 2006 2007 2008 2009 2010 2011e
100% 90% 80% Percentage
70% 60% 50% 40% 30% 20%
Apartments
10% 0%
Homes
2005 2006 2007 2008 2009 2010 2011e Winter
21
Statistics AMDETUR
For Cancún, the change in price levels has been significant. Many international tourists are no longer buying here, and the market is being propped up largely by domestic homebuyers.
Reduction in price points in Cancún
Reduction in sales in the Riviera Maya
In Cancún, which for the purposes of this analysis include the municipalities of Benito Juarez and Isla Mujeres, the change in price levels has been significant: in 2005, 60% of the Premium properties sold went for more than US$400,000; in 2011, 70% cost less than US$300,000. Many international tourists are no longer buying here, and the market is being propped up largely by domestic homebuyers, particularly locals, a segment that in general has lower purchasing power. Beachfront sales and inventory have also declined, which results in lower average prices. This opens a potential market niche for properties without beachfront but with a view of the sea or the lagoon.
The Riviera Maya, which with the purposes of this analysis includes the municipalities of Solidaridad, Cozumel and Tulum, had seen an exorbitant growth in homes in the years 2006 and 2007, but unlike Cancún–where the decline stopped in 2011– it once again saw poor sales performance at the close of 2011 compared to 2010. The Riviera Maya seemed poised to take up the largest share of sales in the total for Quintana Roo; but its current share is only 50%, and with a slight shrinking trend compared to Cancún; still, a slight reactivation is in store for 2012, when the flow of international tourists is also suspected to revive somewhat. In the Riviera Maya (unlike Cancún) the change in “price points” has not been as pronounced, although the lower price range of US$200,000-US$250,000 has become more popular, while inventories and sales of high-end (more than a half-million dollars) have declined.
Annual sales in Cancún by price range (US$000) 600
Annual Sales
500 400 300 200 100 0 2005 2006 2007 2008 2009 2010 2011e
100% 90% 80%
750 – 1,000 500 – 750 400 – 500
22
NOTITUR
70% Percentage
1,000 – 1,000
60% 50% 40% 30%
300 – 400
20%
250 – 300
10%
200 – 250
0%
2005 2006 2007 2008 2009 2010 2011e
Statistics
Annual Sales in Riviera Maya by Price Range (US$000) 600
Annual Sales
500 400 300 200 100 0 2005 2006 2007 2008 2009 2010 2011e 100%
Even when a slight reactivation is in store for 2012, and the Riviera Maya seemed poised to take up the largest share of sales in the total for Quintana Roo in 2011, its current share is only 50% and shows a slight shrinking trend compared to Cancún.
90% 80% 70% Percent
60% 50% 40% 30% 20% 10% 0%
2005 2006 2007 2008 2009 2010 2011e
Outlook In the short term (from 1 to 3 years), in both cities the largest market niche will continue to be the US$250,000-US$400,000 price segment. These properties will be more urban than tourist, and around 90% or more will be apartments that have amenities like pool and clubhouse (but not necessarily beach clubs). Maintenance costs will also be lower, ranging from 2000 to 4000 pesos a month. Going forward, real estate developers must attack specific niches that have proven their solidity, like gay tourism, or what is called “the pink market," no longer an excluded or disadvantaged minority. These buyers enjoy higher-than average income and a marked taste for art, architecture and design. A number of cities have entire zones focused on this powerful market, like Mexico City's Pink Zone and Puerto Vallarta's Romantic Zone. Cancún, and even more so the Riviera Maya, have this distinction of zones friendly to different beliefs and lifestyles, and can take advantage of this circumstance to better serve current and future homebuyers.
1,000 – 1,000 750 – 1,000 500 – 750 400 – 500 300 – 400 250 – 300 200 – 250
Omar Chárraga is Director of Real Estate at CEURA, S.A. de C.V. He has 20 years of professional experience in the market research industry. He was formerly manager of tourist zones for Softec, supervisor of promotions at Procter & Gamble, and marketing manager at KPMG. He has consulted on 300 tourist and urban housing projects, golf courses, resorts, hotels, and mortgage financing projects, among others; and has given many conferences and authored a number of articles published in real estate industry media. ocharraga@ceura.com.mx Winter
23
Developers
An Amazing
Water Park
in Cancún
I
n April 2010, Original Resorts open the doors to its water park at Sea Adventure Resort and Waterpark Hotel (formerly Blue Bay Club), making a reality the group's dream of offering limitless fun to all the families who visit the complex, and completing yet another phase of the ambitious renovation plan and strategy that keeps this group at the forefront of its industry. Today, Original Resorts is proud to say that its water park has become one of the most popular attractions of the resort, as more and more tourists come to enjoy it every season. Although it has countless leisure areas, the big attraction of the park is clearly the Tree House, an interactive playground 40 feet high and with a waterfall that drops from a giant bucket containing more than 500 gallons of water. Huge waterslides and many other water attractions combine in enjoyable and unique family climate for kids and adults alike. At the Tree House playground, kids enjoy an atmosphere reminiscent of the Mayan culture, and as they explore, they find symbols of indigenous birds and animals of the region, as well as water guns, streams and buckets of water. The Tree House is connected to an interactive playground spread out over a huge wading pool 12 inches deep and +12,000 square feet in area, where kids under 6 years of age can find a world of fun streams of water and small waterfalls.
24
NOTITUR
Another one of the park's big attractions is the 18-hole putt-putt golf course, which extends over an area of 8,400 square feet formed by natural slopes that test the player's ability and skills. In addition, in an area of 1800 square feet–on the outskirts of the pool area--there is a snack restaurant that seats 68 guests, who can enjoy light meals and snacks in the shade of a traditional thatched palapa. In another area of 750 square feet, guests can enjoy a bar that services visitors to the pool–600 square feet and 3 feet deep, with tables and benches providing an excellent place to cool down and have a beverage with a view of the water play area. Finally, around the big water sled area the park offers a sunbathing area with 100 lounge chairs for resting and taking the sun. The complex also has a hard-surface tennis court, ringed by mesh fencing and lit at night. Another multiple-use court has asphalt paving and an awning overhead that can be taken down or put up according to weather conditions, so guests can play basketball, soccer, and volleyball, rain or shine. Then there is the natural grass soccer field, that measures 50 x 25 m, offering a roofed area for spectators shaded by metal and canvas awning structures, and a parking area with room for up to 80 vehicles in a perfectly leveled gravel parking lot. Through a tremendous investment of time and resources, the Sea Adventure Resort and Water Park boasts an architectural design that blends into the natural landscape of the region, which was achieved through a series of site preparation, construction and operating activities in strict compliance with environmental regulations, and the immediate reforestation of all the green areas with native vegetation.
IN 2012
JUNE 20TH, 21ST AND 22ND WILL BE SPECIAL BECAUSE WE WILL BE HOLDING OUR
26TH ANNUAL CONVENTION AND ALSO CELEBRATING WITH YOU our
SAVE THE DATES! WE LOOK FORWARD TO SEEING YOU AT THE HOTEL HILTON MEXICO CITY REFORMA MEXICO CITY
World Trade Center Ciudad de México Montecito 38, Piso 32, Oficinas 11 – 14, Col. Nápoles, México 03810 D.F.
Tels./Fax (52 55) 5488 2028 al 31 amdetur@prodigy.net.mx www.amdetur.org.mx