Notitur November / December 2013

2013

November December

Digital »Industry

The Timeshare Revolution “Some Scattered Memories of the Early Years”

Strengthening

SECTUR to Continue

Moving Forward

Publication of:

www.amdetur.org.mx

» Amdetur

» Connections Sustainable

Activities in September-October Period 2013

Tourism Development: The Alternative

BOARD OF DIRECTORS CHAIRMAN Romárico D. Arroyo Marroquín Grupo Sunset EXECUTIVE Carlos Trujillo Balmaseda PRESIDENT Amdetur SecretarY Gerardo Rioseco Orihuela Fiesta Americana Vacation Club TREASURER Jaime Márquez Vargas Royal Holiday LEGAL Gerardo Freyre Fregoso DIRECTOR Vera y Carbajal COUNSELORS Juan Vela Ruiz / Grupo Velas Ricardo Montaudon Corry / RCI Juan Ignacio Rodríguez Liñero / RCI Kemil Rizk / Royal Resorts Marcos Agostini / Interval International Jorge Pallas Cáceres / Promotora Cancún Sunset Clubs Gustavo Ripol Bermúdez / Presidente Club de Viajes Francisco Aranda Bezaury / Club Real Resort Gibrán Chapur / Palace Resorts Jorge Herrera Rivadeneyra / Unlimited Vacation Club Director

2013

November December

1

AMDETUR

6

Connections

Notitur

9

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) / Dr. Jorge Téllez Landín, 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

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/stacks

Activities in September-October 2013

In September and October 2013 AMDETUR continued its work with the Mixed Commission on Tourism, created by the CMIC as well as with the COPARMEX Tourism Committee, along with other activities including a seminar on legal issues, participation in various tourist events and representation and follow-up on industry interests regarding some of the points contained in the Fiscal Reform presented by the Mexican president to Congress on September 8.

Sustainable Tourism Development: The Alternative

We at the Mexican Construction Industry Chamber are convinced the tourism is a fundamental and integrally important aspect of this country's economic and social policy, and for this reason, strategies to promote and encourage this activity should be implemented.

Revenues from the tourism industry should be sources of more jobs, wealth and competitiveness for Mexico, within a framework of sustainability and protection of our cultural heritage.

Rosa de Jesús Lugo Dorantes

CHAIRMAN Romárico D. Arroyo Marroquín

Grupo Sunset executive Carlos Trujillo Balmaseda president Amdetur publisher Aurora Martínez V. DESIGN KEMCS Diseño y Marketing www.kemcs.com

digital

13

INDUSTRy

The TimeShare Revolution

Fifty years after the concept that preceded and gave shape to Timeshare was created, we celebrate its birth and the process by which it became one of the fastest-growing segments of the global tourist industry, creating endless travel opportunities for millions of people. To mark this great event, we invite you to join us in celebrating one of the most respected and well-known personalities who helped place it on a firm and consistent path to growth.

feature Strengthening SECTUR to Continue Moving Forward

To fortify Mexico's position as a world-class destination, it is crucial that tourism forges close ties with other industries that are probably not directly identified with this activity, but which are deeply involved in its execution. We must establish clear commitments to promote the transformation of the industry and control the effects it may have on the environment and on surrounding communities.

17

ADVERTORIAL

Travel Protection in Two Words: Assist-Card

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 Activities in September-October 2013

I

n September and October 2013 AMDETUR continued its work with the Mixed Commission on Tourism, created by the CMIC as well as with the COPARMEX Tourism Committee, along with other activities including a seminar on legal issues, participation in various tourist events and representation and follow-up on industry interests regarding some of the points contained in the Fiscal Reform presented by the Mexican president to Congress on September 8.

New Anti-Money-Laundering Law On Thursday, September 3, AMDETUR held a seminar on the new Federal Law For the Prevention and Identification of Transactions With Illegal Resources (LFPIORPI), presented by experts from PricewaterhouseCoopers: Eduardo Méndez Vital, Legal and Fiscal Matters Area Partner; Martín Montealegre Hernández, Director of Money-Laundering Prevention Practice and Internal Auditing; and Gabriela Orozco Valadez, Legal and Fiscal Matters Manager

Seminar offered by AMDETUR on the new Federal Anti-Money-Laundering Law, Thursday, September 3

Meeting Organized by Grupo En Concreto On September 5, a breakfast meeting was held with leaders of the tourist industry, organized by Grupo En Concreto.

Among those in attendance were Carlos Joaquín González, Under-Secretary of Tourism Operations of The Ministry of Tourism (SECTUR), and hostess Mariel Zúñiga, radio show host and director of that group.

November/December 2013

Breakfast with tourist industry leaders, organized

by Grupo En Concreto. Mariel Zúñiga, radio show host and director of the group; Carlos Joaquín González, Under-Secretary Operations at SECTUR.

Tourism Diagnostic Forums AMDETUR attended the opening ceremonies held by the Ministry of Tourism (SECTUR), kicking off the Diagnostic Forums it organized to analyze needs and best practices for the development of each area of the industry, such as Romance Tourism (weddings), Second Residences, Luxury, Sports, etc. The event took place on September 10 in the city of Puebla, where a worktable was also held focused on Luxury Tourism, headed by Rui Reis, General Director of St. Regis Mexico.

Opening of the Diagnostic Forums held by SECTUR to analyze and identify best practices for the development of the various sectors that make up the tourism industry.

Worktable on Luxury Tourism, headed by Rui Reis, General Director of Saint Regis Mexico, as part of the Diagnostic Forums organized by SECTUR.

01

» AMDETUR COPARMEX-AMDETUR Tourism Commission

AMDETUR Board Meeting

During the seventh work meeting with the Tourism Committee of the Mexican Employers Confederation (COPARMEX), held on September 13, Eligio Serna Nájera, Executive Director of Commercial Operations of the Mexico Tourism Board (CPTM), spoke about the activities being carried out to promote our country abroad and presented two promotional videos that would soon be launched. At the same time, Roberto Zapata Llabrés, President of the National Tourism Council and Javier Potes González, Vice President of Medical Tourism and Director of the Mexican Consortium of Hospitals, announced the details of the "First COPARMEX National Medical Tourism Forum 2013," which will be held on November 13 at the Hyatt Hotel in Mexico City.

AMDETUR's latest Board Meeting was held in its Mexico City offices on September 26, 2013. The meeting was headed by Carlos Trujillo, Executive President of AMDETUR, standing in for Romárico Arroyo Marroquín, Chairman of the Board of AMDETUR, who could not be present because he was called to a meeting with the Federal Congress. During the meeting, a number of themes of interest for members were covered and agreements were reached to continue the Association's efforts in the coming months.

In the event, participants will analyze the opportunities available in this industry from a business perspective, and will define the services, processes and strategies needed to establish a value chain and long-term plans for its development. Among the issues that will be addressed are "The Mexico Brand," "Strategy by geographic zone, services and target markets," "Integration and synergies for companies in the tourism industry and health sector," and "Strategies for selling in the United States and Canada."

For more information, visit: First COMPARMEX Medical Tourism Forum

AMDETUR Board Meeting, held on September 26.

Mixed CMIC-AMDETUR Tourism Commission Continuing the work of the Mixed Tourism Commission founded by the Mexican Construction Industry Chamber (CMIC) and AMDETUR, on October 8 a meeting was held to go over promotional actions by the two institutions through their respective electronic media, as well as an analysis of the courses and programs offered by the CMIC, in line with the requirements of the vacation ownership industry.

▲Meeting of the COPARMEX Tourism Committee, in which AMDETUR participated. Pedro Joaquín Delbouis, Chairman of the Cozumel Business Council; Margarita Ortiz Muñoz, VP of the Tourism Committee and National Board Member of the Puerto Vallarta Business Council; Eligio Serna Nájera, Executive Director of Commercial Operations of the CPTM; Roberto Zapata Llabrés, President of the COPARMEX National Tourism Council; and Javier Potes González, Vice President of Medical Tourism and Director of the Mexican Consortium of Hospitals.

02

These courses and programs are given through the CMIC related business institutions: the Construction Industry Training Institute (ICIC), which trains and keeps works up to date on all areas and levels of the construction process; the Construction Technology Institute (ITC), whose purpose is to promote the relationship between academe and the construction industry through undergraduate degrees, master's degrees and diploma programs; and the Construction Industry Foundation (FIC), whose goal is to improve companies' competitiveness through technology.

www.amdetur.org.mx

» AMDETUR The ITC offers a wide range of study and training programs, including: • A diploma program entitled "Information Models for BIM (Building Information Modeling: Autodesk) Construction," consisting of seven modules, whose purpose is to promote the use of the most modern tool for computer assisted design, in all types of construction projects.

• "Diploma Program for Tourist Developers," with an eightmodule program which offers up-to-date information on the construction and management of tourist projects in accordance with the principles of sustainable development, conservation and the appropriate use of the natural environment and cultural heritage, among others • "Diploma Program In Real Estate Sales," whose five modules offer professional specialization for real estate salespersons by helping them to understand everything from the fundamentals of property acquisition to the necessary credit management.

For more information, see page 6 of this issue and visit the webpages: www.icic.org.mx and www.cmic.org

▲ Meeting of the National Tourist Standards Consulting Counsel, with Carlos Joaquín González, Under-Secretary of Tourist Operations for SECTUR (center), María del Rocío Ruiz Chávez, Under-Secretary of Competitiveness for the Ministry of the Economy (to his left), and Salvador Sánchez Estrada, Under-Secretary of Tourism Planning for SECTUR (to his right).

Mexico City Agreement On October 17, AMDETUR attended the signing and joined the effort of the Mexico City Agreement for the Prevention and Elimination of Discrimination, an initiative proposed by the head of Mexico City's government, Miguel Angel Mancera, In order to strengthen respect for human rights, equality, nondiscrimination and diversity.

▲ Meeting of the CMIC-AMDETUR Mixed Tourism Commission. Rosa de Jesús Lugo, Director of AMDETUR; Roberto Calvet Martínez, Exectuve Coordinator of Tourism, CMIC; Julio Calvo Arjona, General Director of CMIC.

National Tourist Standards Consulting Counsel On October 7, AMDETUR was present at the first meeting of the National Tourist Standards Consulting Counsel, an agency of SECTUR in charge of preparing official Mexican standards in the tourism industry, which was headed by Carlos Joaquín González, Under-Secretary of Tourist Operations for SECTUR, and included María del Rocío Ruiz Chávez, Under-Secretary of Competitiveness for the Ministry of the Economy and Salvador Sánchez Estrada, Under-Secretary of Tourism Planning for SECTUR, among other official personalities.

November/December 2013

Signing of the Mexico City Agreement for the Prevention and Elimination of Discrimination, led by Mexico City mayor Miguel Angel Mancera.

03

» AMDETUR Emergency Relief To help those affected by tropical storm Manuel, the Association of Tourism Developers and Operators of Ixtapa and Zihuatanejo (ADOTIZ), represented by Cristhian Orozco Oseguera, delivered aid packages to each of the promoters and salespersons working for the five resorts affiliated with the Association in that region, and thanked all the people who helped get the support to them.

When conditions permitted, ADOTIZ also took action to reactivate tourism in the zone by publishing announcements in the daily newspaper La Voz de Michoacán, which is published in the state that is the main originating market for tourists to the zone, notifying them that access to Ixtapa and Zihuatanejo was once again open. It also took part in joint efforts by the state government, the Office of Conventions and Visitors, and the local municipal government, to present a show with renown artists in order to help revive tourism.

• Taxes on the real estate industry and timeshare developments.

• Taxes on jet fuel.

• Elimination of the zero tax rate for congresses and conventions.

• Standardization of the VAT tax from 11% to 16% in Cancun and Los Cabos.

• VAT tax on land transportation.

• Elimination of the deductibility of restaurant tabs.

• Fiscal Consolidation.

Also as part of this effort, AMDETUR has been involved in various activities. On Friday, September 18 it called an extraordinary meeting in order to analyze the fiscal reform bill, in collaboration with its members.

Extraordinary meeting of AMDETUR in order to analyze the Fiscal Reform presented by the Mexican Presidency.

Each of the resorts affiliated with ADOTIZ – The Club at Presidente, Park Royal, Fontan, Azul Ixtapa and Pacífica-continued to encourage their promoters and salespersons to offer the resorts’ products to tourists and continue attracting visitors.

Cristhian Orozco Osegeura, President of ADOTIZ, organizing the collection of basic supplies to deliver to workers of the resorts affiliated with the organization.

On September 19, AMDETUR participated in a meeting of the National Tourism Business Council (CNET) and the Ministry of Tourism (SECTUR), to discuss concerns about the fiscal reform with both SECTUR and the Ministry of Financial Public Credit (SHCP).

Extraordinary meeting of CNET, SECTUR and the SHCP. Miguel Messmacher, Under-Secretary of Revenues for the SHCP; Pablo Azcárraga, President of CNET; Claudia Ruiz Massieu, Minister of Tourism; Eduardo Sánchez Navarro, President of Grupo Questro. ▼

About the Fiscal Reform In order to discuss the points of agreement and dialogue that the Mexican tourist industry wished to express with regard to the Fiscal Reform presented by the Mexican presidency, AMDETUR assisted the National Tourism Business Council (CNET) in preparing a strategy where each of the associations and chambers within the industry presented the issues affecting their specific sector. AMDETUR has followed up on articles 18 and 36 of the Income Tax Law, and is working together with CNET who is charge of the following areas:

04

▲ Romárico Arroyo Marroquín, Chairman of the Board of AMDETUR

www.amdetur.org.mx

» AMDETUR Another action was a presentation, in collaboration with CNET, to federal representatives Raymundo King and Jorge Herrera Delgado on September 24.

In collaboration with CNET, AMDETUR took part in a meeting with federal representatives Raymundo King and Jorge Herrera Delgado. ►

On September 25, AMDETUR had the opportunity to present to federal representative José Isabel Trejo Reyes, Chairman of the Finance Commission of the Lower House, and to a plenary session of that Commission, its concerns about the fiscal reform bill presented by the Mexican presidency.

Meetings in Baja California Sur In parallel, on September 27 and 28, the Baja California Sur Association of Timeshare Developers (ASUDESTICO), in coordination with the Los Cabos Coordinating Council, held a series of meetings with congressional representatives of the PRI and PAN parties, which were also attended by the Association of Quintana Roo Vacation Clubs (ACLUVAQ) and AMDETUR, to update them on aspects of the fiscal reform that will affect not only Los Cabos but the entire country.

AMDETUR has also followed up on other events held to deal with these issues, such as: • A meeting of CNET with the Fiscal Consultant of the Finance Commission, Herbert Bettinger, to prepare a Technical Note with the most important issues that could affect tourism.

The note was presented by Dr. Bettinger and CNET to the Chamber of Deputies on October 2.

◄ Romárico Arroyo Marroquín, Chairman of AMDETUR’s Board of Directors (center) in the presentation before the Lower House Finance Commission.

Meeting in Baja California Sur with representatives from the PRI. Samuel Aguilar Solís, Election Secretary of the PRI National Executive Committee; Julio Castillo Gómez, President of the Los Cabos Business Coordinating Council, and Senator Ricardo Barroso Agramont. ►

• As a member of CNET, AMDETUR attended meetings of the Congressional Finance Commission as well as the Tourism Commission of the Lower House.

• A meeting of CNET with the Under-Secretary of Revenues for the SHCP, Miguel Messmacher, at the National Palace on October 11. The meeting had the dual purpose of determining whether the SHCP had a specific response to the proposals presented to it by CNET in the first meeting on September 19, and also to present the Technical Note prepared and presented by Dr. Bettinger, during the same meeting.◄

▲Meeting in Baja California Sur with representatives from the PAN. Julio Castillo Gómez, President of the Los Cabos Business Coordinating Council, and Senator Ernesto Cordero Arroyo, Coordinator of the PAN side the Mexican Senate

Remember you can find more information about these contents and more subjets in our FB Page

November/December 2013

05

» CONNECTIONS

Sustainable Tourism Development:

By Luis Zárate Rocha / National Chairman of the Mexican Construction Industry Chamber

On photograph: Hotel Hacienda Tres Ríos, located within a 341 acres eco-touristic park, integrated sustainable principles from its design, construction and operation, offering the highest levels of luxury and service with a high environmental quality

B

The Alternative

ahias de Huatulco, in Oaxaca, Mexico, has become increasingly known nationally and internationally as a "green" tourist destination.

Local authorities have spoken of the long and laborious process to integrate the community into this sustainable development program by adopting environmental habits that participation in this type of project requires.

They have also admitted that attaining 100% sustainability is virtually impossible, but they have learned to adapt to social, environmental and political changes in order to attain the social benefits that Huatulco's tourism vocation should bring.

The work that has been done in the port of Huatulco is appreciated by other destinations, which view it as an example to follow. The state of Puebla is one of these, and its authorities have received training from service providers of the port city to adopt green policies in the entity. The coastal resorts of Mazatlan, Sinaloa, are also seeking to become a green destination through the construction of the Playa Espíritu Integrally Planned and Sustainable Center; both of these joining sustainable developments in the Riviera Maya like the Tres Ríos project, a model of sustainable luxury tourist development that currently houses the Hacienda Tres Ríos and that in the near future will include four new lodging centers providing a total of 1,397 new rooms in addition to the 40,000 already existing in the region and, just three kilometers away, the Mayakoba luxury resort.

06

www.amdetur.org.mx

Âť CONNECTIONS We at the Mexican Construction Industry Chamber are convinced the tourism is a fundamental and pervasive aspect of this country's economic and social policy, and for this reason, strategies to promote and encourage this activity should be implemented. Revenues from the tourism industry should be sources of more jobs, wealth and competitiveness for Mexico, within a framework of sustainability and protection of our cultural heritage.

This has not been an easy task, however. In recent years, the Mexican tourism industry has faced adverse conditions. Mexico lost its standing in the list of the top ten most frequently visited countries in the world, a position it had held for years, and annual growth in the past six-year administration was less than one percent.

Under the new federal administration, President Enrique PeĂąa Nieto announced an investment of 8.63 billion dollars in the tourism industry in 2013-2014, which will go to creating 176 projects ranging from hotels to timeshare facilities, airport infrastructure, restaurants, recreational parks and golf courses, marinas, clinics and retirement communities.

At the same time, the Ministry of Tourism (SECTUR) said that by the year 2030, Mexico will be a leading country in the tourist industry, by following a strategy that proposes: to recognize tourism as a key component of Mexico's economic development; to diversify tourist products and develop new markets; to encourage tourism companies to be competitive nationally and internationally; and to develop tourism while respecting natural, cultural and social environments.

Photograph: The Hotel Fairmont Mayakoba was designed to blend perfectly into its stunning natural surroundings, on the shores of the Caribbean in the beautiful Riviera May at the YucatĂĄn Peninsula.

For all these reasons, this is a good time for us as industry members to consider alternatives for strengthening the tourism industry, in order to reposition it as one of the primary sources of economic development.

We must actively assist in the efforts to promote its comprehensive growth, in keeping with the characteristics of each region, community and location in the country.

One of these alternatives is the development of sustainable tourism, apparently today the path everyone wants to follow, given international trends and competitive conditions in our markets. We must therefore analyze the potential and the weaknesses of this approach, and its real possibilities in both economic and commercial terms.

Sustainable tourism aims at optimizing the use of environmental resources by maintaining essential ecological processes and helping to conserve natural resources and biodiversity. It also encourages respect for the socio-cultural authenticity of host communities, preserving their cultural and architectural assets and traditional values, while contributing to intercultural understanding and tolerance. Finally, it must ensure that economic activities are viable over the long term and that they bring well distributed benefits to all socio-economic segments of the population, including stable employment opportunities, revenues and social services for host communities, and a reduction in poverty levels.

November/December 2013

Photograph: Hotel Las Brisas Huatulco, Silver Certificate from EarthCheck for its commitment to sustainability and environmental production.

07

» CONNECTIONS

U

Academe can contribute applied research to resolve concrete problems and promote studies into sustainable development, eco-technologies and eco-engineering for the restoration, repair and rehabilitation of ecosystems and resources.

Environmental

Sustainable

The social sector should encourage ethical and responsible participation in the decision-making process; contribute objective information and environmental criteria for conservation and sustainable use; promote and apply ecotechnologies and encourage environmental awareness and training.

Viable

Supportable

Social

~

Equitable

Economic

o

Dimensions of Sustainable Tourism The integral dimension of sustainable tourism will necessarily depend on a general tourism strategy that encourages the adoption of diversity. Only continuing efforts in the areas of investor coordination, legislative initiatives, planning regulations and a constant improvement in governance policies can bring real and effective results in the long term.

That is why every participant in the tourism industry must take decisive action.

The government, which is responsible for the country's environmental and tourism policy, must strengthen and update its main instruments with a regional, ecosystemfocused vision; generate clear and specific standards to encourage sustainable development; introduce new strategies for sustainable development, like Strategic Environmental Evaluation and Integrated Management of the Coastal Zone; generate environmental and legal certainty for the development of projects and investments; and strengthen technical capacity and information for planning and decision-making.

The public and private sectors that participate in tourism development should promote environmental and social responsibility for the introduction of sustainable development policies, programs and projects; comply with environmental regulations; change the paradigms of project design; develop new eco-technologies to mitigate the effects of development, and in the eco-engineering to create and restore ecosystems, environmental functions, goods or services; and provide and channel economic resources for the introduction of projects and programs that restore, repair and monitor the environment, in addition to environmental impact mitigation programs and projects.

08

The owners, communities and users of these resources, must make use of the properties, ecosystems and resources in an environmentally and socially responsible manner; comply with applicable legislation and standards; and introduce good environmental practices. ◄

This is a good time for us as industry members to consider alternatives for strengthening the tourism industry, in order to reposition it as one of the primary sources of economic development.

Luis Zárate Rocha

Luis Zárate Rocha is National Chairman of the Mexican Construction Industry Chamber, and is a member of the Mexican Academy of Engineering, Vice President of the Technical Committee of the Electrical Energy Saving Trust and Executive Vice President of Empresas ICA. He is also a member of the Boards of Directors and Executive Committees of companies like Operadora Mexicana de Aeropuertos, GEOICASA, ICAFLUOR, Maxipista, Servicios de Tecnología Aeroportuaria, ICA and Fundación ICA. He is a founding member of Fundación UNAM, A.C., where he is currently Board member and Vice Chairman, and professor in the Engineering Department of UNAM, where he gives courses on Construction, Edification and Project Integration.

www.amdetur.org.mx

» Industry

The Timeshare Revolution “Some Scattered Memories of the Early Years”

F

ifty years after the concept that gave shape to Timeshare was created, we celebrate its birth and the process by which it became one of the fastest-growing segments of the global tourist industry, creating endless travel opportunities for millions of people. To mark this great event, we invited one of the most respected and well-known personalities who helped place it on a firm and consistent path to growth.

Once upon a time, many, many years ago (as many as 50!) there was a tourist industry in which Timeshare did not exist.

Expensive properties and traditional hotels were the only forms of lodging. There were few opportunities for middle-class tourists. In those years, however, a true revolution took place.

A segment of this industry was created, developed and grew stronger, which provides jobs to thousands of people today and has contributed to the stability and prosperity of many tourist destinations.

By Gabriel Oropeza Griffith Former CEO of RCI Latin America

It all began to take shape in the late 1960s and early 70s. In the United States, properties in Florida and Hawaii were enjoying a major boom. Long lines of buyers fought for the right to buy a second house. It was nirvana for real estate developers, who were building incessantly!

Around that time, an Association was founded to represent these first real estate developers: the American Land Development Association, or ALDA, the forerunner of what is today ARDA (American Resort Development Association). Also around that time, the first condominium exchange company was born, called Resort Condominiums International (RCI), founded

by Jon and Christel DeHaan, in partnership with some ALDA

November/December 2013

09

Âť Industry executives. Curiously, RCI did not begin as a timeshare exchange company, but rather a company offering the exchange of full property use, which initially started off very slowly. In Mexico, AMDETUR was not yet born.

As in any boom, however, there is a beginning and an end, and this second-home boom was no exception. Some of the "old-timers" of our industry may still remember the great recession in the American economy in the wake of an oil embargo by Arab countries that were members of OPEC. Practically overnight, those long lines of second-home buyers evaporated, and soon, developers found themselves with a huge inventory of unsold condominiums and a pile of debts and financing to pay off.

One of the many wise bosses with whom I have had the opportunity of working over the years said that times of crisis are also times opportunity. And so, it occurred to someone in the United States that they could make condominium prices more accessible if the property were divided among a greater number of buyers, basically one for every week of the year. This marked the precursor of the Time-share or modern vacation club, the fixed week and fixed property unit.

A Vision of Success The concept was immediately a success in Florida and Hawaii and spread throughout the United States and beyond. In Mexico, the first timeshares were in Acapulco and Mazatlan, and in Europe, the Costa del Sol and Canary Islands were the industry's mecca. At the same time, Jon DeHaan immediately saw a tremendous opportunity for RCI. He thought it would be much better to have 52 members instead of one for every affiliated condo unit. He decided to buy the investments of his partners and with his then wife Christel, he launched a highly successful career that created a wonderful virtuous 10

circle: more condominiums affiliated to the exchange, more attractive exchange opportunities for travelers... and so on.

RCI's competitor, Interval International, was founded by the late Mario Rodriguez a few years later, in 1976, and the competition between these two giants has lasted even into the present in the form of innovations and benefits for both the consumer and the developer. But it has not always been easy. In those early years there were considerable distortions resulting from abuses committed by some companies in their sales practices, that even today continue to affect our industry's image. As many of my former colleagues said to me: "Nobody wakes up with the idea of buying a Timeshare property. There are few opportunities to contact a prospect, and little time to interact with them."

“Nobody wakes up with the idea of buying a Timeshare property.

There are few opportunities to contact a prospect, and little time to interact with them.�.

In those years, the situation led American sellers of Timeshare properties in Hawaii to develop a series of sales techniques that, carried to the extreme, became "questionable," to say the least. And yes, those same tactics were adopted in Mexico and Europe. Fortunately, 50 years later, the industry in the United States, Mexico, Europe and other parts of the world has learned how to face and deal with those challenges. Self-regulation; the formation of associations of industry professionals, like AMDETUR; codes of ethics and training conferences and seminars; and the entry of prestigious hotel brands into the business, like Disney, Hilton and Marriott, among others, as well as the responsible intervention of the authorities, have eventually www.amdetur.org.mx

» Industry forged an industry of developers, suppliers, and increasingly satisfied consumers.

Timeshare has evolved and adapted to an increasingly demanding client. Today there are many new ways to acquire and enjoy a vacation home--some people have even re-baptized it "vacation ownership!" But what we must never forget is that the essence of the concept is wonderful, and its popularity with consumers is what has made it grow and prosper. That's why everyone who participates in this industry should know how to care for, even pamper, this consumer, who is the basis for everything we are.

Although I only have a few brief lines to tell the story of an effort that lasted for many years, I want to mention those who I consider that were the pioneers who left their mark and charted the course for our industry. Daniel Chávez, who took his first "baby steps" selling Timeshare in Mazatlan door to door, and who today is a great entrepreneur with major developments in the country's leading tourist destinations; Pablo González Carbonell, whose intelligence, enthusiasm and courage enabled him to face down a thousand adversities and came out ahead in creating a huger international consortium with strong operations in South America; Richard Sutton and Mark Carney, who created a precedent for quality operations with their projects in Cancun and became the national and international benchmark; Roberto Chapur, who started out with nothing but whose intelligence and ability enabled him to become the largest supplier of

"Timeshare has evolved and adapted to an increasingly demanding client. Today there are many new ways to acquire and enjoy a vacation home. But what we must never forget is that the essence of the concept is wonderful, and its popularity with consumers is what has made it grow and prosper"

Timeshare rooms in the Mexican Caribbean; Neto Coppel, who became an industry icon for his creativity and for setting a new standards of quality in tourism products. And what can I say about Ricardo Montaudon, who has not lost an ounce of his enthusiasm since he began with RCI in the mid 1980s and has kept up his leadership to the present, supporting the industry and its clients, always inspiring us with his "can do" attitude. And there are many, many more.

These are all heroes in our industry, but so are the professionals that today are working quietly away and doing quality jobs from their respective trenches, putting the client before all.

Although the founders will always play a central role because of their vision and courage, having risked everything to build this industry, it is the new legions of professionals who are making this industry increasingly strong and long-lasting. Let this article serve as my hats-off to all of these heroes.

They're making history! ◄

Gabriel Oropeza was CEO of RCI Latin America for nearly 15 years. Under his leadership, the company grew from just a few developments and less than two thousand members in Mexico at the start of 1985, to 250,000 members and operations in all the major cities of Latin America.

Gabriel retired in 1999 and with his family founded the company Docsolutions, a company specialized in document management, data processing, digitalization and databases.

Gabriel is also Chairman of the Board of Christel House de México, a charitable institution founded and sponsored by RCI co-founder Christel DeHaan, to provide education and values that transform the lives of underprivileged children.

GABRIELOROPEZA

November/December 2013

11

RCI® Conference

LASOS

The Latin American Shared Owership Summit is a Success in Bogotá Ricardo Montaudon, president and executive director of RCI® for Latin America, stated: We are very happy about the high level of acceptance that LASOS has had in the beautiful city of Bogotá; the attendees feel that they have benefited by leaving with a great deal of information about the market that they represent and the boom that the tourism-related real estate industry has been having in all of its modalities. We hope that tourism will be strengthened and is seen as the cornerstone of development in the emerging countries of this region.

R

CI®, the world leader in the vacation exchange, together with its advisory and consultancy division, TORE, held LASOS - The Latin American Shared Ownership Summit, the only event of its kind in the region Oct. 23-24, 2013 in Bogotá, Colombia.

topics of interest to the audience, such as Carlos Vogeler, regional director for the Americas from the UNWTO, Luis Carlos Vélez, News Director for Caracol Television, Benjamin Beja of TAO Inspired Living and Isaac Perez, Managing Partner of Cliento.mx, among others.

This important event assembled more than 180 leading figures from the Tourism Industry form 11 different countries, as well as important members of PROEXPORT Colombia (Promotion of Tourism, Investment and Expositions), Marca País, COTELCO (Hotel and Tourism Association of Colombia), and Invest in Bogotá. LASOS provided a forum for major industry players to exhibit the most relevant business models and success stories in the region.

Some of the subjects that were covered during the event, which had a big impact on the audience, were: Perspectives from the Vacation Ownership Industry in Latin America, Latin America in Numbers, Digital Marketing and the New ROI, Structuring Products, Challenges & Benefits of Targeting Foreign Markets, Prospect Generation, Post-Sales Services, and Challenges of the Latin American Market, between others.

The main objective of this summit was to have a broad perspective of the current tourism situation in each of the Latin American countries, as well as to identify growth opportunities that can be replicated from the success stories that other countries in the region have had.

LASOS - The Latin American Shared Ownership Summit was a successful event that was able to bring together leading figures with experience and knowledge, and was the perfect framework for understanding the potential that Latin America has as a tourist destination, the challenges to be overcome, and the major business opportunities to be explored.

LASOS had the presence of distinguished participants who, given their expertise, were able to share relevant

www.amdetur.org.mx

Âť FEATURE

I

n Mexico, the tourism industry makes a clear contribution to the nation's growth. Despite having slipped from 10th to 13th place in the World Tourism Organization (WTO) ranking of the world's most popular international destinations (WTO Barometer 2012), it remains a strategic component of the national economy because of its capacity to generate foreign currency revenues, an indicator in which it currently ranks 24th in the world. Not only that, but it also encourages direct and indirect investment and contributes to regional development by bringing together many industrial, commercial, financial and service activities. This is the reason the federal government has declared this industry a national priority, highlighting its importance and raising its status.

The federal government, through the Ministry of Tourism (SECTUR) is responsible for the processes that originate from tourism activity, under a social and economic focus of promoting regional development (General Tourism Law, Article 1).

SECTUR in turn plays an important role in implementing and promoting the policies and planning of that activity under the principles of social welfare, sustainability and competitiveness in the industry, capitalizing on the natural and cultural bounties of the country to guarantee a unique experience for visitors.

This is not an easy task, given the complexities of the tourist phenomenon, which is constantly growing and changing, as well as its economic, social, political and environmental repercussions, and its capacity to positively or negatively affect the surrounding communities, generating various types of opportunities that influence their quality of life.

November/December 2013

Strengthening SECTUR to Continue Moving Forward

By Cecilia Zapata Hurtado / TSU Coordinator for Hotels and Restaurants, Universidad Iberoamericana

With this in mind, and in order to fortify Mexico's position as a world-class destination, it is crucial that tourism forges close ties with other industries that are probably not directly identified with this activity, but which are deeply involved in its execution. We must establish clear commitments to promote the transformation of the industry and control the effects it may have on the environment and on surrounding communities.

Mexico's Tourism Potential Within the national context, an important pillar of the National Development Plan 2012-2018 is "taking advantage of Mexico's tourism potential to generate greater economic flows in the country." There is a problem, however, and that is the lack of articulation among the various disciplines, primarily the federal government, the legislative branch, state and municipal governments, private enterprise and the financial industry. All of these must create synergies, reconcile interests and create alliances to harmonize in the best way possible the activities that support this crucial activity. The success of tourism policy is based on the capacity to formulate clear and consistent objectives for everyone, a win-win situation for Mexico. We cannot think only about increasing tourism revenues and foreign 13

Âť FEATURE currency without factoring in the environmental and social costs, which are typically high.

We must also bear in mind that there is a tremendous competition for tourists, not just between countries but also between regions and destinations. That is why those responsible for these policies must be aware of the decisions that must be made to formulate competitive, sustainable tourism models that benefit regional and national development. Plans and programs must be carried out efficiently and effectively at all levels, and the economic benefits should be channeled in part to the welfare and development of the host communities, because it is they who directly feel the impact of the tourists' presence. As we have mentioned before, to be competitive we must offer unique experiences, and the host community is an important ally in this effort.

sometimes it is unable to exercise this leadership role. The hard thing is not implementing tourism policies, but making decisions that do not always depend on SECTUR. Other ministries and the communities themselves also play a part, and their objectives probably do not coincide with the same order of importance as those of SECTUR. Tourism activity cannot survive without the management of government, which is ultimately responsible for working closely and in concert with other initiatives, seeking to combine all the ideas and generate mutual respect, understanding and trust. All of this, not only to achieve policies appropriate for its development, but also to assume the role of a leader who can generate agreements and alliances, and respond proactively to a situation in which market dynamics and competition are a serious threat.â—„

As we have seen, the Ministry of Tourism is responsible for ensuring the success of this industry. However, tourism activities encompass such a broad range of actions, in a wide variety of industries related with other ministries, that

Inflow of International Tourists (millions of travelers) Source: WTO

14

Ranking 2012

2010

2011

2012

% Change 12/11

World

949

995

1,035

4.0%

1. France

77.6

81.6

83.0

1.8%

2. USA

60.0

62.7

67.0

6.8%

3. China

55.7

57.6

57.7

0.3%

4. Spain

52.7

56.2

57.7

2.7%

5. Italy

43.6

46.1

46.4

0.5%

6. Turkey

31.4

34.7

35.7

3.0%

7. Germany

26.9

28.4

30.4

7.3%

8. United Kingdom

28.3

29.3

29.3

-0.1%

9. Russia

20.3

22.7

25.7

13.4%

10. Malaysia

24.6

24.7

25.0

1.3%

13. Mexico

23.3

23.4

23.4

0%

www.amdetur.org.mx

» FEATURE

Foreign Currency Revenues from International Tourism (billions of dollars)

Ranking 2012

2010

2011

2012

% Change 12/11

World

930

1,042

1,075

3.2%

Source: WTO

1. USA

103.5

115.6

126.2

9.2%

2. Spain

52.5

59.9

55.9

-6.7%

3. France

47.0

54.8

53.6

-2.2%

4. China

45.8

48.5

50.0

3.1%

5. Macau (China)

27.8

38.5

43.7

13.5%

6. Italy

38.8

43.0

41.2

-4.2%

7. Germany

34.7

38.9

38.1

-2.1%

8. United Kingdom

32.4

35.1

36.6

4.3%

9. Hong Kong (China)

22.2

28.5

33.1

16.1%

10. Australia

29.1

31.5

31.5

0%

24. Mexico

12.0

11.9

12.7

7.2%

Digital sources: 1. Consejo de Promoción Turística de México, 2013. http://www.siimt.com/zh/siimt/ranking_mundial_omt# 2. Manual de Organización General de la Secretaría de Turismo, diciembre 2010. http://www.sectur.gob.mx/PDF/MO_General_SECTUR.pdf 3. Plan Nacional de Desarrollo, Gobierno de la República, Eje IV México Próspero Sector Turismo. http://www.sectur.gob.mx/work/models/sectur/Resource/7263/1/images/ EjeMexico%20MediaCarta%20V5.pdf 4. Ley General del Turismo, Diario Oficial de la Federación, DOF 17-06-2009. http://www.sectur.gob.mx/work/models/sectur/Resource/14944/LEY_GENERAL_ DE_TURISMO.pdf 5. Panorama OMT del turismo internacional, edición 2013. http://mkt.unwto.org/es/publication/panorama-omt-del-turismo-internacionaledicion-2013

Cecilia Zapata Hurtado has a Masters degree in Tourism Administration and is currently TSU (Técnico Superior Universitario) Coordinator in Hotels and Restaurants for the Universidad Iberoamericana, where she was also formerly a teacher and coordinator of the undergraduate degree in Hotel Management and Hospitality Management. She has provided support in coordinating agreements relating to communities interested in developing sustainable products, and conducted research into the quality of hospitality companies. She has been a member of the Technical Council of the National Center for the Evaluation of Higher Education (Ceneval).

November/December 2013

CECILIAZAPATA

15

AWARD WINNING PRODUCT | AWARD WINNING TECHNOLOGY

EVOLVE YOUR VALUE PROPOSITION. Expand your reach globally TODAY! THE ONLY FUNCTIONAL SYSTEM OF IT’S KIND. Align value with consumer behavior with the Global Travel Benefits modular system. This system allows you to enhance value, options and brand loyalty while monetizing more of your customer’s leisure life. The system seamlessly integrates into your business model, allows you to offer comprehensive travel options, financial services that pay maintenance fees, and so much more.

CONTACT US TODAY AND BE AMAZED AT WHAT YOU CAN DO.

Global Travel Benefits

®

Powered by HSI®

800-353-0774 (U.S./Canada) | 01-800-681-1809 (Mexico) | 00-800-0012-2222 (Europe) | 702-254-3100 (Direct) | Sales.HolidaySystems.com

Advertise in the best

magazine

of the industry.

And reach for government agencies and private companies in the Tourism and Vacation Ownership industries of Mexico and the world.

Aurora Martínez

aurora@amdetur.org.mx t. 01 55 5488 - 2028 to 31 www.amdetur.org.mx FB: AmdeturMx

2013 March / April

06 04 www.amdetur.org.mx

» Advertorial

Travel Protection in

Two Words: Assist-Card

Traveling is a pleasure, but is not without its risks.

Every day 90,000 pieces of luggage are lost in airports around the world, and according to the Louis Pasteur Medical Institute Center, one out of every two travelers suffers from medical problems during their travel abroad.

This is to be expected, of course-- tourists go to places that are not familiar to them and encounter unknown situations depending on the destination. But today’s traveler has a simple philosophy: enjoy more and worry less.

Every time an incident is reported at a hotel, airport, beach or city, what is called "risk awareness" in the tourist industry rises. This risk, which affects every traveler, is ALWAYS present to some extent. Companies that sell travel experiences have already identified this risk as a factor that can cause their sales to decline, because a traveler with a bad experience has an 80 percent chance of not going back to the destination where it happened.

A traveler’s risk of encountering some problem is a factor usually beyond the supplier’s control, but it directly affects the entire travel experience. A clear example of this is that whether

November/December 2013

one is visiting a paradise-like beach or the most sophisticated resort, there is always the chance of coming down with one of the most common traveler afflictions: food poisoning.

Expert tourism industry providers are highly interested in what is the perfect alternative to this persistent predicament, which can be described as a "protective bubble" that provides the assistance the traveler requires, and has been doing it every day for more than 40 years: Assist-Card.

Assist-Card, is NOT an insurance policy, because it does not protect only the traveler’s valuables. It is a travelers’ assistance service that is available 24/7 and works in a very simple way: it does not have a DEDUCTIBLE and the travelers do not have to wait to be REIMBURSED. A typical traveler who has the Assist-Card need only consult the telephone directory that comes with their electronic card or their physical card to find the solution they need in the country they are visiting. They can call toll free from any phone, as it were local call, and right away, the experienced

17

» Advertorial team of assistants will call a doctor, if that is what is needed (and if the regulations of the country permit) or will direct them to the closest clinic or hospital, with information about their condition in hand, always making an effort to insure the traveler does not have to pay any cash out of pocket.

Assist-Card makes a strong sales promise: "To assist every traveler, 24/7," whether in a medical emergency, for lost or delayed baggage, or simply for tourist advice. That is why travels around the world completely trust Assist-Card. Not only that, but with 62 ALARM CENTRALS around the world, present in more than 100 countries and more than 250,000 assistant services supplied around the world in 2012, in addition to a broad portfolio of protection products – by day, by year, on multiple trips or in cancellation insurance and even products with no age limit, they have become the traveler’s guardian per excellence The next time you ask what more you can do for your passenger, guest or visitor, do not forget to protect them against emergencies and protect yourself as well against any unfortunate experience. You can rest assured that Assist-Card will be with you, and with the traveler, 24/7. ◄

Assist-Card makes a strong sales promise:

"To assist every traveler, 24/7" whether in a medical emergency, for lost or delayed baggage, or simply for tourist advice.

702-254-3100 (línea directa) 800-353-0774 (EE.UU./Canadá) 01-800-681-1809 (México) 00-800-0012-2222 (Europa) Sales@HolidaySystems.com www.Sales.HolidaySystems.com

Noviembre / Diciembre 2013

www.amdetur.org.mx 17

Never miss an issue!

Subscribe in

http://issuu.com/notitur And download all our editions in English and Spanish, to be informed about the most relevant information of the Vacation Ownership industry.

www.amdetur.org.mx

AmdeturMx