Notitur March / April 2014

2014 March April

Digital »Industry Resales

How they are Affecting the Timeshare Industry

» Marketing Direct Mail

Important Part of the Vacation Ownership Marketing and Sales Plans

New Structure for the Ministry of Tourism A More Robust Strategic Ally for the Industry

Publication of:

www.amdetur.org.mx

» AMDETUR New Chairwoman of AMDETUR

» Legal Aspects Working Approach with PRODECON in Benefit of our Associates

BOARD OF DIRECTORS CHAIRWOMAN Ana Patricia de la Peña Sánchez Original Resorts VICE PRESIDENT Gerardo Rioseco Orihuela PROVAC Posadas EXECUTIVE PRESIDENT

Carlos Trujillo Balmaseda AMDETUR

2014 March April

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AMDETUR

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legal aspects

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ACADEME

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IndustrY

SecretarY Carmen Carballido Starwood TREASURER Jorge E. Téllez Landín Sol Mar LEGAL Gerardo Freyre Fregoso DIRECTOR Vera y Carbajal 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 president

Carlos Trujillo Balmaseda AMDETUR

publisher Aurora Martínez V. DESIGN KEMCS Diseño y Marketing www.kemcs.com TRANSLATION Elizabeth Collins Morrison elizcollins@mac.com Fotography Amdetur

José Mata / www.pbase.com/ppmata Cel. (04455) 1885 8581

ADVERTISING Aurora Martínez V. aurora.martinez@prodigy.net.mx

LOCAL ASSOCIATIONS Lic. Patricia de la Peña, 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) / 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. / Guillermo Dávila Espinosa, Asociación de Desarrolladores Turísticos de Manzanillo y la Costa Alegre, A.C. If you would like to receive the digital version of Notitur, in English or Spanish, you can request it at: aurora.martinez@prodigy.net.mx Or dowload it directly: issuu.com/notitur

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New Chairwoman of AMDETUR

During the 27th Ordinary General Annual meeting of AMDETUR, held on February 19 of this year, Ana Patricia de la Peña Sánchez was elected Chairwoman for the 2014-2015 term. Actively involved in the industry, De la Peña has been an AMDETUR Board Member as well President of the Association of Vacation Clubs of Quintana Roo (ACLUVAQ), among other positions.

What is PRODECON and How Can it Help You?

The Taxpayers' Protection Agency (Procuraduría de la Defensa del Contribuyente, known as PRODECON) is the first fiscal ombudsman for the Mexican government. It is a de-centralized agency with its own legal standing and equity, and its main purpose is to protect and defend the rights of taxpayers.

Training: A Key Factor for Growth

The federal government has budgeted 820.92 billion pesos in physical investment for 2014, 14.0 percent higher in real terms than in 2013.

How Resales are Affecting the Timeshare Industry

The relationship between the traditional resorts and the resale sector has been one of an awkward co-existence where each acknowledges the existence of the other and, in many respects, depends on each other for growth.

FEATURE New Structure for the Ministry of Tourism

On December 30, 2013, a new set of Internal Regulations for the Federal Ministry of Tourism was published in the Official Gazette of the Federation, describing the Ministry's faculties and attributes from here forward, clearly reflecting the spirit of transformation that the Ministry is undergoing today.

Marketing

Why Direct Mail Should Be an Important Part of Your Vacation Ownership Marketing and Sales Plans?

Media advertising and direct mail might be viewed primarily as actions to stimulate people, who are not currently in the market for buying your product, to consider doing so. The goal could be defined as arousing interest in vacation ownership among people for whom such an interest does not now exist.

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.

www.amdetur.org.mx / FB: AmdeturMx www.amdetur.org.mx

» AMDETUR

New Chairwoman of AMDETUR

Ana Patricia de la Peña, Chairwoman of the Board Of Directors of AMDETUR for 2014-2015.

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Industry professionals attending the 27th General Ordinary Annual Meeting of AMDETUR, held on February 19.

uring the 27th Ordinary General Annual meeting of AMDETUR, held on February 19 of this year, Ana Patricia de la Peña Sánchez was elected Chairwoman for the 2014-2015 term.

De la Peña has been an AMDETUR Board Member as well a President of the Association of Vacation Clubs of Quintana Roo (ACLUVAQ), as well as Vice President of the Cancun Hotel Association and Member of the Board of the Cancun Office of Visitors and Conventions, among other positions within the industry.

In her professional career, De la Peña has also served as Operations Manager for Grupo Cancun; General Director of Hotel Hacienda del Mar and the company De la Peña Vara y Asociados; and Director of Operations for Blue Bay Resorts Cancun. She is currently Vice President of the chain Original Resorts, which includes the brands Temptation Resorts & Spa, Sea Adventure Resort & Water Park, Desire Resort & Spa and Desire Pearl, located in Cancun and the Riviera Maya.

professional career has made her one of the most widely recognized Mexican businesswomen in the tourism industry.

De la Peña remarked that as Chairwoman of the Board of AMDETUR, she intends to continue promoting development of the Vacation Ownership segment, one of the fastestgrowing areas of the Mexican tourist industry. ◄

Ana Patricia de la Peña, accompanied

by Romárico Arroyo Marroquín, outgoing Chairman of the Board of AMDETUR.

She has an undergraduate degree in Hotel Business Management from the Escuela de Administración de Instituciones (ESDAI) of Universidad Panamericana, and has taken various courses in areas such as Leadership, ISO 9000 for Service Companies, Joint Ventures, Management, Marketing, Globalization, Benchmarking And UpperLevel Corporate Management, which together with her

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» AMDETUR

Amdetur Activities Second Meeting of the Tourism Regulatory Consulting Council of SECTUR

Among AMDETUR's activities in the last two months of 2013 were attending the second meeting of the Tourism Regulatory Consulting Counsel (CNNT) of the Federal Ministry of Tourism (SECTUR), held on December 18. During the session the Act of the Frist Regular Meeting 2013 was approved and the agreements and commitments included in it were reviewed -such as the NOMTUR (tourism Official Mexican Standards), besides the Technical Secretariat giving its report to the CNNT.

Third Anáhuac Conference Outlook on Tourism for Mexico

On January 17, AMDETUR attended the third Anáhuac University Conference, which was entitled "Outlook on Tourism for Mexico." In that conference, experts in a variety of fields explored the possibilities of achieving a greater connection between various sectors in the very near future – economic, political, fiscal, the energy reform – to benefit the tourism industry, and explored other upcoming prospects for the industry. This last presentation was given

by Francisco Madrid Flores, Director of the Tourism School of that university.

First Meeting of the COPARMEX National Tourism Committee in 2014 On January 17 of this year, the Mexican Employers' Confederation (COPARMEX) held its first National Tourism Committee meeting, in which the work plan for 2014 was presented. In that event, Javier Potes, Vice President of Medical Tourism for the COPARMEX Tourism Committee, informed members of the results of a meeting on this topic held in November 2013, and presented the "COPARMEX Proposal on Medical Tourism," which involves developing a national model for promotion and operation of this industry, in order to encourage the attraction of patients by integrating companies in the tourism and health sectors.

First Meeting of the CMIC-AMDETUR Mixed Commission on Tourism in 2014

During the first meeting of the Mixed Commission on Tourism formed by CMIC (the Mexican Construction Industry Chamber) and AMDETUR, on January 22, members reviewed progress to date and followed up on joint projects that had been agreed upon earlier. Among these were updating the "Tourism Developers' Diploma" given by the ITC (Construction Technology Institute) and the preparation of courses and webinars by the ICIC (Construction Industry Training Institute), both of them belonging to the CMIC, in order to offer AMDETUR affiliates and other interested parties from the industry up-to-date training and information in these areas.

Attracting Investors to the State of Baja California

On February 11, AMDETUR attended the kick off of "Baja California Week in Mexico," which was held at the Club de Industriales in Mexico City. The purpose of these events www.amdetur.org.mx

» AMDETUR Miguel Ángel Temblador, from KPMG Cárdenas Dosal and Eduardo Méndez, from Pricewaterhouse Coopers México.

Seminar on Tax Reforms and the LFPIORPI, given

by AMDETUR.

Roberto Calvet Martínez, Executive Coordinator of Tourism for the CMIC and Carlos Trujillo Balmaseda, Executive President of AMDETUR, during the first meeting of the CMIC-AMDETUR Mixed Commission on Tourism in 2014.

was to begin repositioning the state as the number one attraction for investment in Mexico, and to support the 120 strategic projects that the government of Baja California will be promoting in the next six years. The event included various forums, dealing with the state's manufacturing, infrastructure, energy, aerospace and tourist industries. The kick off was attended by the state Ministry of Tourism, Óscar Escobedo Carignan.

AMDETUR Seminar

On February 12, AMDETUR sponsored a seminar about the tax reforms that have taken effect in 2014 and the Federal Law for the Prevention and Identification of Transactions With Illegal Resources (LFPIORPI), given by panelists Miguel Ángel Temblador, Corporate Tax Partner for KPMG Cárdenas Dosal, and Eduardo Méndez, Tax and Legal Service Partner for PricewaterhouseCoopers Mexico. Confirming and reminding attendees of new laws that take effect in 2014, panelists spoke about recent documents issued by the Ministry of Finance and Public Credit (SHCP) regarding Reforms to the Finance Law for 2014 and ways tourism developers can minimize the impact of these changes; as well as the status of companies that already registered to comply with the (LFPIORPI) law and the sanctions for failing to comply, among other points of interest.

Second Meeting of the COPARMEX Tourism Committee

During the second meeting of the COPARMEX Tourism Commission, of which AMDETUR is part, members went over issues involved in the handling and destruction of PCBs (polychlorinated biphenyls), chemical compounds that can be damaging to the environment, as part of the collaboration agreement between COPARMEX and the United Nations Development Programme (UNDP).

Members also discussed the status of the COPARMEX Medical Tourism project, and some areas of Convention Tourism and its tremendous business potential, as well as the members and duties of the Tourism Cabinet. This last topic was handled by Francisco Madrid, Director of the Tourism School of Anáhuac University.

CNET Annual Meeting

On February 18, the National Tourism Business Council (CNET) held its General Meeting, which included elections to appoint the Executive Committee for 2014-2016. By unanimous vote of those present, Pablo Azcárraga was elected Chairman of the Executive Committee of the Board,

Second Meeting of the COPARMEX Tourism Committee

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» AMDETUR which will be his third term at the head of that organization.

During the meeting, which AMDETUR attended, Azcárraga ratified his commitment to ensure that CNET continues to benefit the tourism industry as it has in the past, and recognized that with concerted efforts by all members of the industry, some major advances have been achieved.

He also gave a special recognition to the work of Romárico Arroyo Marroquín, President of Financing and Development for Grupo Sunset, and at that moment Chairman of the Board of AMDETUR and Cristina Alcayaga, President of the Business Political Institute in Quintana Roo, in reducing the impact of the Tax Reform on our industry.

Romárico Arroyo, José Chapur Zahoul and Eduardo Sánchez -Navarro, during the General Meeting of CNET.

that further encourage tourism, to the need for building a permanent dialogue among industry participants; as well as ideas for encouraging the promotion, formation and training of human capital and following up on plans for restoring and reviving the port of Acapulco.

The first panel in this forum, "Laws for Tourism," was coordinated by Cristina Alcayaga, and panelists included Romárico Arroyo, who spoke about the National Trust Fund for the Development of Tourism (FONATUR) and José Chapur Zahoul, President of Palace Resorts, who commented on the project for the cross-peninsular train in southeast Mexico.

The event also included a panel to present the book "Doing Business in Mexico – Tourism," prepared by specialists at Price Waterhouse Coopers (PWC), and a presentation

by Gerardo Freyre Fregoso, AMDETUR’s Legal Director, speaking on the issue of environmental regulations. Arturo Méndez, specialist in tourism for PWC, was in charge of presenting this panel, which also included Carlos Joaquín González, Under Secretary of Tourism Innovation and Development for SECTUR, Francisco Madrid, Director of the Tourism School of Anáhuac, and other renowned specialists.

CEDOC and its Authors

The Ministry of Tourism (SECTUR), together with the Institute for Tourism Competitiveness and the Center for Tourism Research and Studies (CIET) of the Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM), held the first event of the Tourism Documentation Center (CEDOC) in 2014, entitled "CEDOC and its Authors." During the event, a new indicator called the State Tourism Competitiveness Index was presented by its creators, Juan Manuel Tello Contreras, Director, Giannina Consuelo Cerda Martínez, Coordinator for Consultancy and Research, and Paloma Pardo Manzanares, all of them part of the ITESM center.

12th National Tourism Forum

AMDETUR was present at the 12th National Tourism Forum, which this time focused especially on the Mayan World and was held in Merida, Yucatán, from February 23rd to the 25th. The conference addressed issues that ranged from air connectivity and the generation of tourist products

12th National Tourism Forum with the participation of Claudia Ruiz Massieu, Mexico's Minister of Tourism.

First CEDOC, organized by SECTUR and ITESM, presenting the State Tourism Competitiveness Index.

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www.amdetur.org.mx

Panel "How to Strengthen Tourism Investment?", Presented at the 12th National Tourism Forum.

New Chairman of ASUDESTICO

AMDETUR extends the most cordial welcome to Paul Wesley Little, who on January 1 of this year became chairman of the Board of Directors of the Southern California Association of Tourism Developers (ASUDESTICO) in Los Cabos, Baja California Sur.

Sé parte de este importante programa que ha sido diseñado para hacer extensivos los servicios que ofrecen el IMSS y AMDETUR a los profesionales de la industria, para estimular y reconocer el desempeño y entusiasmo en la consecución de las metas y objetivos profesionales que persiguen.

Como miembro del Club Elite AMDETUR tienes a tu alcance importantes beneficios, entre los que destacan:

AMDETUR

Aprovecha para ti y tu familia de los servicios que te ofrece el IMSS. Al realizar los trámites de registro mediante Club Elite se te otorga la inscripción por un año al Seguro Familiar, para brindarles seguridad en asistencia social, además de acceso a los servicios médicos (aplican restricciones), y otros beneficios de viaje a través de sus asociados.

Destacando los siguientes servicios, entre otros:

En seguro de enfermedades y maternidad otorga asistencia médico-quirúrgica, farmacéutica y hospitalaria.

Las prestaciones correspondientes de seguros de invalidez y vida; así como de retiro y vejez.

Gastos de funeral.

HOLIDAY SYSTEMS INTERNATIONAL (HSI)

Paul Wesley Little, new Chairman of ASUDESTICO.

Agreement with PRODECON

AMDETUR and the Taxpayers’ Protection Agency (PRODECON) have agreed to work closely in support of our affiliates in defending and promoting their rights as taxpayers. PRODECON is a public agency that provides consultancy, advice and free assistance to any taxpayer who is affected by the actions of the federal tax authorities, either regarding a tax charge or debt, paying a fine, or dealing with the attachment of property in connection with an income tax or value added tax payment. You will find more information about PRODECON inside this issue, and you can also contact AMDETUR to learn more about this new alliance.

Membresía por un año con derecho a hacer uso del Programa Advantage, el cual ofrece tarifas preferenciales y reservaciones en línea o por teléfono. Algunos beneficios son: Reservaciones en los mejores hoteles del mundo.

Todas las líneas de cruceros e itinerarios disponibles.

Paquetes atractivos de excursiones a nivel internacional.

Y más de 5,000 paquetes para participar en los eventos deportivos más emocionantes a nivel mundial.

Vacaciones Sin Límite

Exclusivo acceso a reservar a través de nuestra página de Internet, en donde encontrará diversas opciones vacacionales en destinos nacionales e internacionales a precios preferenciales, mismos que varían dependiendo del destino, ocupación y temporada.

Usted, sus familiares y amigos podrán elegir disfrutar sus próximas vacaciones en cualquiera de los más de 4,000 hoteles afiliados alrededor del mundo.

Contacto:

March / April 2014

Lic. Jaime Ramírez Valdemar Tels: 54-88-20-28 al 31 jaimeamdetur@prodigy.net.mx

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» AMDETUR

Income Tax Benefits for Timeshares that Comply with NOM 029 SCFI 2010

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ith the entry into force of the new Income Tax Law, which eliminates the previous rule by which tax was collected only on income from products and services not considered Timeshare under the current official standard, a business strategy has emerged to benefit taxpayers who provide tourist services in our industry.

Article 30 of the income tax law allows suppliers of tourism services in the Timeshare system to deduct estimated expenses regarding the direct and indirect costs of providing the service. To do so, they must meet the requirements established in official Mexican standard NOM 029 SCFI 2010, which defines Timeshare service providers as those whose standard form agreement registered with the Federal Attorney's Office of Consumer (PROFECO) contains a certification that the property is entailed for the provision of Timeshare services. Only through this mechanism can Timeshare providers take advantage of the benefit the law extends for deferral of income tax, an option that benefits many companies the industry, but excludes alternative programs, including some vacation clubs and various of what are called "exit programs."

This means that companies that sell on credit, either with their own programs or those acquired from third parties, that do not meet this requirement, must pay all of the tax for all of the total sales prices consigned in the contracts, and not on the amount actually collected, as was formerly the case, so they must take this into account when preparing their strategies and cash flows.

This being the case, we would not be surprised to see a set of synergies emerge among the various participants in this activity, which is always been characterized by rapid growth and innovation.◄

MDF Marco A Pineda Martínez CEO PMB Jurídico Fiscal S.C. direccion@consultores-pmb.com.mx

Remember you can find more more information on all these topics in our Fan Page of Facebook

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» LEGAL ASPECTS

What is PRODECON and How Can it Help You?

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he Taxpayers’ Protection Agency (Procuraduría de la Defensa del Contribuyente, known as PRODECON) is the first fiscal ombudsman for the Mexican government. It is a de-centralized agency with its own legal standing and equity, and its main purpose is to protect and defend the rights of taxpayers.

Prepared by the Taxpayers’ Protection Agency Department of Taxpayer Culture

It was created in response to a need to strengthen relations between federal tax authorities and tax payers, creating a neutral space in which they could meet and reach agreements in a climate of mutual trust.

On April 28, 2011, based on a slate of candidates proposed by the Mexican president, the Senate appointed Diana Bernal Ladrón de Guevara to serve as the country’s first fiscal ombudsman. According to its organizational law, the Agency had 120 days to begin operating and on September 1, 2011 it opened its doors to the public.

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» LEGAL ASPECTS Main Actions:

Legal Reforms Resulting from PRODECON Recommendations

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Garnisheeing accounts: • Asset ranking.- So that taxpayers are not stripped of assets they require for their habitual operations and for remaining current with their monetary obligations.

• The tax authorities may not garnishee amounts greater than the tax credit.

• Taxpayers must be notified (3 days after the garnishment).

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Preserve, defend and promote taxpayers’ rights, guaranteeing effective access to federal justice.

Checking and permanently improving the actions and practices of federal tax authorities.

Sphere of Action:

PRODECON has the authority to intervene in any tax ruling by federal tax authorities, including those by the SAT, IMSS, INFONAVIT, CONAGUA and coordinated tax authorities of the 32 Mexican states.

PRODECON has 9 main mechanisms for action: 1. Advice and consultation 2. Legal representation 3. Complaints or claims proceedings 4. Investigation and analysis of systemic problems affecting taxpayers 5. Proposing modifications to the internal regulations of the federal tax department (SAT) 6. Proposing modifications to fiscal provisions for approval by the Lower House 7. Issuing technical opinions at the request of the SAT 8. Regular or extraordinary meetings with tax authorities and autonomous tax entities 9. Imposing sanctions upon tax authorities when:

9.1- They fail to provide the requested information on a complaint or claim.

9.2- They fail to attend the regular or extraordinary meetings to which they are called

9.3- Report their actions to internal control bodies PRODECON after two years of activities: Today, PRODECON has central offices in Mexico City and 26 Regional or State delegations that cover almost the entire national territory.

Statistics from the Complaints and Claims Area show an effectiveness rate of 79%, which is the proportion of cases that were resolved in favor of the taxpayer.

In its activities from the time it opened through January 2014, PRODECON has published various systemic analysis documents on its web page dealing with violations of taxpayers’ fundamental rights that this agency had detected.

These documents contain recommendations or corrective measures for the tax authorities which are necessary to resolve the problem affecting the taxpayer.

Conclusive agreements: • Definitive solution.

• Early conclusion of the visit.

• Forgiveness of 100% of formal and substantive finds (for first time).

• Avoids long and costly trials, in keeping with the global trend toward “best settlement possible,” encouraging cooperative action between the tax authorities and the taxpayer.

CHALLENGES: • Continue simplifying the tax system.

• Guaranteeing respect for taxpayers’ fundamental rights.

• Making public spending more efficient.

• Encouraging a paradigm shift before the tax authorities, and in light of the latest reforms to tax laws.

The Taxpayers’ Protection Agency provides its services free of charge, offering expeditious and simple administrative procedures for demanding and defending your rights before the tax authorities. ◄

You can visit the Agency in person at: Insurgentes Sur 954, Col. Insurgentes San Borja, Delegación Benito Juárez, C.P. 03100, México, D.F. Call (55) 1205 9000, or contact us online through the web page at: www.prodecon.gob.mx.

Call

01-800-611-01-90

As part of its responsibility to supply information and guidance about the 2014 tax reform, PRODECON has issued fiscal studies that can be consulted on its web page, separately analyzing each of the most important aspects of the 2014 tax reform.

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»»Academia Academe

training:

A Key Factor for Growth The federal government has budgeted 820.92 billion pesos in physical investment for 2014, 14.0 percent higher in real terms than in 2013.

T

his marks the official launch of the infrastructure projects planned by this six-year presidential administration, among them construction of a second level of the Mexico City-Toluca highway, competitive bidding on the CrossPeninsular Railway from Mérida to Punta Venados, Quintana Roo; the expansion of the Mexico City International Airport; and an electric train in the Guadalajara metropolitan area, according to plans by the Ministry of Communications and Transportation.

A total of 17 new highways will be built in Mexico, and the government has pledged to deliver them before the end of this administration. These total 500 kilometers of high-speed highways, adding to the existing roads, among them the AtizapánAtlacomulco, Guanajuato-San Miguel de Allende and TuxpanTampico highways.

This is the general overview of the Mexican construction industry in 2014, which adds to the imminent and growing presence of foreign companies, which pose further challenges to domestic players in the industry.

By creating a participative climate that promotes competitiveness, we can create agents of change to generate added value for companies in society, involving robust competitive dynamics in the markets, stronger growth, greater productivity and even more equitable distribution of income. Thus, Mexico may be able to

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Âť Academe obtain the world-class infrastructure that is so vitally needed by tourism and many other industries in the country.

With this in mind, we at the Mexican Construction Industry Chamber (CMIC) seek to regulate foreign investment in this industry under the principles of fairness, reciprocity and sharing of state-of-the-art technology, placing a priority on the hiring of domestic labor and acquisition of Mexican made equipment and materials to strengthen the growth of the domestic market. In order to make this a reality, the country must have a highly qualified workforce to respond to these needs. By investing in the training of construction workers, we can help meet the demands of both workers and construction companies for technical knowledge necessary to succeed in an increasingly competitive market.

The CMIC estimates that some 1.5 million direct jobs, and another 800,000 indirect jobs, will be created in the construction industry between 2013 and 2018, a total of 2.5 million new jobs in that period.

Training encourages workers to develop an analytical and strategic vision, notably improving their performance on the job, optimizing resources and maximizing capital. Training makes it easier for all parties to identify and successfully take advantage of a greater number of business opportunities.

With a more thorough knowledge of their industry and their jobs, construction workers can maximize their strengths and minimize their weaknesses; they will be able to make correct decisions and reduce the risks and errors that directly affect their work, making them a source of capital in action.

A well-trained workforce makes it easier to obtain advanced tools and equipment, helping companies in any industry in our country to remain at the forefront of information and technological modernization.

Strengthening the Productive Chain in the Construction Industry The mission of our institutes, which are described below, is and will always be to train, evaluate and certify construction workers, improving their work and directly benefiting their quality of life. In the same tenor, they seek to give employers more confidence in their workers. In short, strengthening human capital is a key factor in increasing productivity.

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» Academe

As an example, the following is a brief summary of the objectives and contents of one of the courses provided by the ICIC:

REVIT ARCHITECTURE The Construction Industry Training Institute (ICIC) is present in the CMIC’s 43 delegations and 26 training offices across the nation. In the 35 years the ICIC has been operating, it has given 75 million man-hours of training, as well as 374,000 courses in which some 3.4 million people have participated.

Objective:

To give students the necessary tools to carry out preliminary studies, competitive bidding, blueprints, and viability studies by creating conceptual masses, generating complex and parameterized geometry, and transforming conceptual masses into constructive models; as well as to process modifications and create energy analysis models with various design options.

Subjects: The Construction Technology Institute (ITC) is present in 35 of the 43 CMIC locations across the country, and in three campuses with a full range of educational services in Tabasco, Oaxaca and Mexico City. These programs include 5 Master’s degrees, 22 diploma programs and 3 undergraduate degrees. Since 1983, 16,933 Master’s degree students, 6,491 undergraduate students and 4,093 diploma students – a total of 27,517 participants – have been attended.

The Construction Industry Foundation (FIC) has a presence in Guanajuato, Tabasco and Mexico City, providing specialized support for applied research and technological development to increase productivity.

March / April 2014

• • • • • •

Conceptual design environment Creation of solid and hollow forms Geometrics and dimensions Shape manipulation Creating planning tables Connections with AutoCAD and advanced 3-D design

Duration: 25 HOURS

ICIC Telephone (01 52 55) 5424 7400

Rómulo O' Farril #546, Col. Olivar de los Padres, C.P.01780, Delegación Álvaro Obregón, México, D.F.

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» INDUSTry

How

Resales

are Affecting the

TIMESHARE INDUSTRY

By Wesley Kogelman, President and CEO, BuyaTimeshare.com

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ith the popularity of the Internet and the e-commerce revolution that has changed the commercial landscape, there seems to be discussion at every industry event about how the timeshare industry can leverage the online world so resorts can grow their membership bases. However, there is a revenue stream available to resorts and developers that has existed for years on the Internet and continues to flourish – the timeshare resale market.

The relationship between the traditional resorts and the resale sector has been one of an awkward co-existence where each acknowledges the existence of the other and, in many respects, depends on each other for growth. The resale market would not exist if it wasn’t for the tremendous sales and marketing efforts of resorts, and the resorts need a stable secondary market to give confidence to consumers looking to purchase their products.

So where does the resale industry stand in the progression of today’s marketplace?

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» INDUSTRy ARDA Resale Statistics Tell The Story

There is no question that the industry was blind-sided by the Great Recession, with timeshare sales plunging in the U.S. from over $10 billion USD in 2007 to just over $6 billion in 2009. The psychological effects on consumer spending were significant, as spending on vacations dried up and tourists who did travel looked to save as much money as possible.

The tourism industry was one of the first business sectors to rebound from the recession and as people began taking vacations again, they were much more budget-conscious than before the economic downturn. We saw this effect contribute to the growth of the resale market, so much so that the American Resort Development Association (ARDA) included resale statistics in surveys commissioned through its educational foundation, the ARDA International Foundation (AIF), to monitor the impact of resales on the industry.

In 2010, AIF research disclosed that resales made up 17 percent of all timeshare sales in the United States. This established resales as a legitimate source of sales for the industry and created a benchmark for future research. Only two years later, in the AIF’s Shared Vacation Ownership Owners Report, 2012 edition, the 2012 statistics revealed that resales had grown to 32 percent of overall sales, with “an online timeshare resales listing company” given by respondents as their preferred resale channel.

These results led to the commissioning of the Shared Vacation Ownership Resale Study, 2013 edition, which concluded among its findings that “Resellers are doing a very professional job within both the buying and selling processes” and “there is an increasingly high level of satisfaction with the resale market from Buyers on the resale market.” The report also found that “with the potential ‘next generation’ of timeshare consumers already an internet savvy and technologically driven group, the resale industry is already at a slight advantage with a large majority of resale transactions being conducted online, reducing at least one ‘barrier to entry’ for current and future timeshare consumers.”

Using The Internet

It is clear from these reports that the resale market is strong and growing, with the Internet playing a major role in its development. As the 2013 report indicates, the internet is opening up the industry to new buyers who will go online to research and make choices regarding the product. With over 80 percent of consumers using the Internet to make travel decisions, according to Terry Jones, founder of Travelocity. com, it is imperative for resorts to have a strong presence online to influence these prospective buyers.

The decision for resorts is how to best utilize their resources to include online outreach and blend resales into their March / April 2014

Type of Sale (%) 2012 Base: 161

32

38 RESALE

13

17

NEW SALE Not Sure

2010 Base: 200

Previous Relationship New Developer

7 17 17

59

Resale Channel / Major Mentions (%) Base: 2012 (45); 2010 (34)

0

10

20

An online timeshare resales listing company

30 27

16

Directly from a friend or relative for little to no money

24 16 11

Affiliated real estate broker

14 11

Drirectly from previous owner

5 8 10

Owners association or management company Via an internet website (not online listing service)

5

Unaffiliated timeshare real estate broker

4

Classified ad

3

7 7 2 3

Online auction

2

An offline timeshare resales listing company

2 7

2012 2010

13

Âť INDUSTRy

With over 80 percent of consumers using the Internet to make travel decisions, it is imperative for resorts to have a strong presence online to influence these prospective buyers.

Wes Kogelman Wesley Kogelman is the President and CEO of BuyaTimeshare.com, one of the leading Internet advertising and marketing companies for timeshare owners who seek to sell or rent their timeshare by owner. Wes was an online pioneer for the timeshare secondary market, developing one of the first industry-dedicated platforms in 2000 which allowed owners to interact on the Internet to buy, sell and rent timeshares. BuyaTimeshare.com was listed as one of BusinessNH Magazine’s Top 10 Companies to Watch in 2009 and Inc. Magazine has ranked it as one of the fastest-growing, privately held companies in the U.S., making the prestigious Inc. 5000 list in 2010 and 2011. Wes has a Bachelor Degree in Management from the University of Tampa, an MBA from Rivier College in Nashua, New Hampshire, is married and makes his home in Nashua. marketing strategy. Companies such as Marriott Vacation Club have already begun this process, creating an online resale outlet for their products. Whether companies handle this in-house or with a third party is for each one to decide, but working with companies such as timeshare advertising companies or brokers is certainly an option, especially considering the ARDA research shows that buyers are looking to these companies for information about the product.

We are seeing potential buyers interact with owners of Mexico timeshare, with $6 million USD in offers in 2013 placed on Mexico timeshare intervals advertised for sale on our website. These conversations are taking place online, and the possibility exists for online companies who have developed systems to promote timeshare on the internet to work with resorts and developers to grow the industry.

WES KOGELMAN

Having been in the timeshare resale business for 14 years, I have seen significant trends over the years impact the industry and I believe there is an opportunity for technologybased companies to work together with resorts for the overall growth and benefit of the business. â—„

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» ARTÍCULO

THANK YOU

March / April 2014

15

» FEATURE

New Structure for the Ministry of Tourism A More Robust Strategic Ally for the Industry

By Carlos Manuel Joaquín González / Under-Secretary of Innovation and Tourism Development, Ministry of Tourism

O

n December 30, 2013, a new set of Internal Regulations for the Federal Ministry of Tourism was published in the Official Gazette of the Federation, describing the Ministry’s faculties and attributes from here forward, clearly reflecting the spirit of transformation that the Ministry is undergoing today.

Before getting into the details of this reorganization, it is important to mention that the Ministry’s re-design was the result of a thorough analysis of the needs of the tourism industry and a year’s experience operating under the structures, processes and functions inherited from the previous presidential administration.

The proposal was developed after this first year of operations, and with eye to the explicit priority placed upon this activity by the 2012-2018 presidential administration, which wants to make it a true springboard for the development of the entire country.

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» FEATURE A strategy was therefore designed, based on two fundamental pillars that will enable this Ministry to meet the mandate contained in the National Development Plan, which is to take advantage of Mexico’s tourist potential to generate a greater economic flow for the country.

The first of these two pillars is external—the creation of a Tourism Cabinet headed by the President of Mexico—and the second is internal: the Ministry’s reorganization.

The goals of this restructuring were: to more evenly balance internal functions and give more weight to the issues raised by the industry that were not being properly addressed in the past. This required a transformation of the Federal Ministry of Tourism, redistributing its functions and responsibilities and expanding its capacities in three Under-Secretaries, two Units and a Central Administrative Office: • • • • • •

Under-Secretary of Tourism Planning and Policy Under-Secretary of Tourism Innovation and Development Under-Secretary of Quality and Regulation Central Administrative Office International Affairs and Cooperation Unit Industry Sectorial and Regional Coordination Unit

or a diversification into nature or cultural tourism, or some other specialized area.

The Under-Secretary of Innovation also has two newly created areas, the first in charge of direct communication with resorts and the operation of vital programs like the “Magical Villages,” (Pueblos Mágicos) and the second, in mind of how important financing and investment are in this industry, works to facilitate lines of credit for large and small investors, and supports promotion of investment in Mexico as an attractive destination.

The third Under-Secretary is in charge of Quality and Regulation, and is responsible for defining the bases and guidelines for providing quality service in Mexico. One of its most important tasks is reviewing Official Mexican Standards and other standards that support certifications and quality seals. It also looks over the National Tourism Registry that underpins the National Certification System, which will allow to have a complete listing of tourist service suppliers to enable this office to ensure that service providers offer quality services and give domestic and foreign tourists more confidence in the products and services they receive.

The Central Administrative Office was created to handle the administrative duties relating to the handling of the Ministry’s material, human and financial resources.

New Units Under-Secretaries The Under-Secretary of Planning and Tourism Policy proposes strategies and systems for managing national and local tourism development, carries out institutional planning and programming, introduces guidelines for promotion and encouraging tourism, evaluates tourism programs and projects carried out by other areas of the Ministry and defines directives and guidelines for executing those programs.

This area incorporates broad guidelines for the tourist industry on integration of the latest trends in sustainability, in order to make protecting our natural resources an integral part of each tourism complex, and to encourage orderly planning to avoid environmental depredation.

The Under-Secretary for Tourism Innovation and Development has four basic responsibilities. The first is developing and innovating products, defining product lines by region and destination in order to chart a course of operation. The second is developing a regional perspective for tourism development in order to allocate resources to the creation of infrastructure and equipment in support of certain focus products, for example sun and beach destinations, March / April 2014

One of the two new units was created to handle matters pertaining to international cooperation, and will assemble and analyze international cooperation plans, programs and agreements proposed by the Ministry. It will also serve as a liaison with the Ministry of Foreign Relations and the Mexican Foreign Service, helping to strengthen the industry’s image and its relations abroad.

The other new unit is the Industry Sectorial and Regional Coordination Unit, representing the Ministry’s efforts to decentralize its duties by creating five Regional Delegations: Northeast, Northwest, Central, Southeast and Southwest.

These will be entrusted with the mission of forging closer ties with state and municipal governments as regards their needs, and will oversee actions taken within the various

» FEATURE projects, agreements and cooperation programs to ensure they are properly executed.

With this new structure, SECTUR is now stronger and more capable of providing attention to and serving as a strategic ally of investors and service providers, in pursuit of a more complete development and a greater flow of revenues to this country to benefit Mexican families. ◄

SECTUR’s restructuring involves a strategy based on two fundamental pillars, to take advantage of Mexico’s tourist potential to generate a greater economic flow for the country.

With the strength provided by this new structure, SECTUR can be a strategic ally supporting a more complete development for investors and services providers.

Carlos Joaquín González is Under Secretary of Innovation and Tourism Development for the Federal Ministry of Tourism (SECTUR). His professional career includes a series of impressive achievements, including serving as the Municipal President of the Town Council of Solidaridad, Quintana Roo; Minister of Tourism for that state, and Federal Representative for the Third Electoral District, in Cancun. He was also Chairman of the Tourism Commission of the Chamber of Deputies, and garnered great respect for his legislative efforts in updating the General Law on Tourism. In 2012 he was appointed Coordinator of Tourism for the Transition Team of newly elected president Enrique Peña Nieto, and when the President took office, Mr. Joaquín González was named Under Secretary of Tourism Operations at SECTUR. Since SECTUR’s reorganization took effect on December 30, 2013, he has held his current position. Joaquín González has a degree in public accountancy from the Universidad Autónoma de Yucatán and has an specialist’s diploma in UpperLevel Management from the Instituto Tecnoógico y de Estudios Superiores de Monterrey.

www.amdetur.org.mx

» MARKETING

Why Direct Mail Should Be an Important Part of Your Vacation Ownership Marketing and Sales Plans?

By Ron Kurtz / President, American Affluence Research Center

Although direct mail is not the “be all, end all” magic bullet that will overcome all of the challenges of today’s market place, it does provide a number of important benefits. Particularly in this very challenging environment, sales and marketing executives are focused on finding ways to increase the sales effectiveness and cost efficiency of their marketing programs. To achieve these goals, direct mail should be an important part of your marketing program.

The affluent market, which The American Affluence Research Center (AARC) defines as the wealthiest 10% of US households, based on net worth as determined by Federal Reserve Board research, is occasionally referenced in this article, as it is an important source of actual and potential sales of vacation ownership products.

What to Expect of Direct Mail Every good marketing program starts with a strong web site and a program of actions to attract visitors to the site.

Almost all of today’s consumers start their purchase process by researching the product of interest on the web. People who are considering a vacation ownership product should be able to find you easily during their research, and your web site should make a persuasive presentation as to why your product is their best buy.

March / April 2014

19

» MARKETING Media advertising and direct mail might be viewed primarily as actions to stimulate people, who are not currently in the market for buying your product, to consider doing so. The goal could be defined as arousing interest in vacation ownership among people for whom such an interest does not now exist. The second goal would be to lure these new prospects to your web site. It seems unrealistic to expect that the sale of a vacation ownership product could be made simply through direct mail and without closure by a sale representative.

It is important to have a realistic expectation of what direct mail can accomplish. With AARC’s surveys of the affluent, a response rate of 10% to 15% is pretty typical. This demonstrates that the affluent do open, read, and respond to good direct mail.

The response to promotional mailings is not as high. Our list clients have reported response rates as high as almost 3% for their promotional mailings, but most consider a half to one percent as a good response rate. Most clients do not share with us their response rates, but many allocate a major portion of their marketing budget to direct mail and come back to us for more lists, which is an indication that they have been satisfied.

What Determines the Effectiveness of Direct Mail?

When a client asks what they can do to increase the effectiveness of their direct mail program, we use the analogy of a three legged stool.

We emphasize that if one leg of the stool is shorter than the others, the whole stool will be wobbly and shaky.

• One leg of the stool is the product and its relevance to the audience receiving the mailing.

The product must have potential appeal and relevance to the target audience. While this may seem to be an obvious requirement, it is one that is often overlooked or addressed carelessly. We often find that our clients do not have good data on the profile of their current customers.

This is a prerequisite for every element of the marketing plan.

One must be objective about who is a realistic prospect for their product.

Do they have the necessary income or wealth to afford the product? Is their age and physical condition appropriate for the product? Is their marital and family status appropriate for the product? Do they have options that are more attractive than what you are offering? These are the types of questions that need to be answered when determining the profile of your prospects.

• The second leg of the stool is the quality of the promotional material, how effectively it communicates, and the persuasiveness of the material.

A (postage) heavy, expensive four color brochure is much less necessary than in the pre-internet age. The goal should simply be to attract the prospect to visit your web site, where you can make a more effective presentation of your story than with a brochure.

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• The third leg of the stool is the quality of the mailing list.

Finally, the quality of your list can be a critical factor in the effectiveness of your mailing. The most important aspect of the list is whether the names have the profile that matches that of your current customers and best prospects. This relates back to the first leg of the stool.

Very often we find our clients under estimate the level of wealth required to afford their product or to find it an attractive buy. Sometimes our clients are tempted to lower their standards to increase the number of names on the list. We recommend against this, as direct mail need not be just a “numbers game�. It can and should be a highly targeted promotional activity.

Securing a good mailing list is not as easy as it may appear to be, given the large number of list brokers and vendors. When AARC discovered the lists of the affluent that we were acquiring for our surveys from various list vendors were far short of what they were supposed to be and what we needed, we developed our own system for identifying people at various levels of wealth.

4 Points to Remember There are four important points that would be helpful to remember:

FIRST. The many benefits of direct mail include the ability to target niche markets efficiently, to test and evaluate messages and product receptivity among different market segments, to make special offers to limited niche markets, and to identify the results of and return on your investment in the promotion. second.

It is important to have realistic expectations of your direct mail program. The goals should be to attract people to consider your product category for a purchase, to draw people to your web site, and to identify qualified prospects for your product.

THIRD.

The effectiveness of your direct mail programs will depend on the relevance of your product to the audience receiving the mailing, the quality of the promotional material, and the quality of the mailing list.

fourth.

Plan to test, test, and test to continuously analyze and refine the effectiveness of your direct mail.

March / April 2014

» Mercadotecnia

As noted at the first of this article, direct mail is not the silver bullet that will overcome all of the challenges of today’s market place. However, it can and should be an important contributor to the sales effectiveness and cost efficiency of your sales and marketing programs.

Apart from the internet becoming increasingly important in the direct marketing process, it also provides marketers with a number of opportunities for channel integration, providing new levels of consumer insight and also enhancing the degree to which customer-centric communications are possible. For example, by making use of internet technologies it is already possible for marketers to link offline identity, attributes and relationships with online visitor details and behaviours - such as the use of unique, personalized URLs (web addresses) in direct mailing campaigns.

Personalised URLs allow marketers to generate a personal web page for every client in the database, typically looking something like this:

Ron Kurtz has over twenty years of experience in general management and senior marketing positions in the airline, cruise, and hotel industries. In 1989, he established The Management Resource Group, which has provided strategic planning and interim management services to such clients as Merrill Lynch, Philip Morris, The Home Shopping Network, Celebrity Cruises, and others involved in the hospitality and travel industries. Kurtz has specialized in and researched the affluent market since 1982, when he became the founding President of Sea Goddess Cruises.

Kurtz holds a BBA from The University of Texas and an MBA from The Harvard Graduate School of Business. He is the author of the book “Market Research: Strategy and Techniques”. www.affluenceresearch.org

http://www.companyname.com/customername

When the recipient visits or clicks on their personalized URL, they are directed to their own dynamically-generated 'microsite' (a personalized sub-site within the company's main web site) containing the offers, products, and services that are especially intended for them. Details of who accessed the site and how they behaved can then be tracked, providing the marketer with invaluable insight as well as a truly personal touch which, according to the survey, often inspires actions that are likely to lead to a sale. ◄

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RON KURTZ

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SUBASTA SUBASTA ANTE CORREDOR PÚBLICO DE UN SOLAR CON 15,000 METROS CUADRADOS, CON 196.8 METROS LINEALES DE FRENTE DE PLAYA, UBICADO EN LA ZONA HOTELERA DE CANCÚN, CON USO DE SUELO TURÍSTICO HOTELERO ESPECIAL.

Aeropuerto Internacional de Cancún

Las Corredurías Públicas 6 y 9, a cargo de los Licenciados Manuel José Rodríguez Villamil y Gerardo José Rodríguez Villamil, respectivamente, con fundamento en la fracción I del artículo 6 de la Ley Federal de Correduría Pública, y fracción VI de su Reglamento, CONVOCAN a la celebración de una subasta bajo los sistemas electrónico y presencial de acuerdo a lo siguiente.

En su modalidad electrónica la subasta se llevará a cabo en la dirección de internet: www.correduriaspublicas6y9.com/subastas; iniciará el día 1 de abril de 2014, y concluirá el a las catorce horas del día 8 de mayo de 2014.

Los postores registrados que deseen acudir a la etapa final de la subasta en su modalidad presencial, informarles que ésta tendrá lugar a partir de las once horas y hasta las catorce horas del día 8 de mayo de 2014 en la dirección que se precisará en el indicado portal de internet.

A las catorce horas del día 8 de mayo de 2014 concluirá la recepción de posturas y se adjudicará a las más alta que se hubiere ofertado a través del procedimiento electrónico o de forma presencial, lo que harán constar los suscritos corredores públicos en el acta que se levantará al efecto.

Folio

Tipo Inmueble

001

Solar de 15,000 m2 con 196.8 metros lineales

Ubicación Boulevard Kukulcan Hotelera de Cancún (21°01'38.3"N, 86°48'40.8"W)

Uso de Suelo

Precio Salida

Turístico Hotelero Especial (THE) COS: 30 % CUS: 2.5 Alt. Máx. 20 Pisos

$16,000,000 dólares de los Estados Unidos de América

Régimen Propiedad

Privada

Fecha Inicio Subasta

Fecha y Hora Cierre Subasta

1 de Abril de 2014

14 horas del día 8 de Mayo 2014

A partir del 10 de Marzo todos los detalles del procedimiento de subasta podrán consultarse y obtenerse de la página electrónica www.correduriaspublicas6y9.com/subastas.

Informes a los teléfonos 920 19-74 o 920 07-49, o directamente en las oficinas de las Corredurías Públicas 6 y 9 ubicadas en el predio marcado con el número 91 de la calle 18, entre las calles 15 y 17 de la Colonia México Norte, en Mérida, Yucatán.

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