Notitur Digital / September - October 2013 by Amdetur

2013

September October

Digital »Legal Issues New Non-Binding Criteria: Tax Practices This Land is my Land: Land Use Limitations New Genaral Law on Climate Change

»Industry: Vacation Ownership in Colombia

Quality of

Tourism and Culinary

Education in Mexico

Publication of:

www.amdetur.org.mx

» Amdetur 27th Annual Convention

» Connections Beach Destination

Airports Growing

“A New Era for Tourism"

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

digital

September October

AMDETUR

legal issues

A NEW ERA FOR TOURISM

AMDETUR's 27th Annual Convention was held from June 19 to 21 in Mexico City, on the theme of “The New Era of Tourism: Capitalizing Vacation Ownership Opportunities.”

New Non-Binding Criteria: Tax Practices

On August 14 of this year, the Official Gazette of the Federation published the official “Third Resolution on Changes to the Miscellaneous Tax Rules for 2013 And Appendix 3.” Among the salient aspects of this resolution is the now official publication of a change in the Non-Binding Criteria of the provisions of the Income Tax Law.

Rosa de Jesús Lugo Dorantes

Notitur 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

THIS LAND IS MY LAND

Although the ownership of land is important, the ability to use that land is essential to the economic development of a region and respect for the environment.

New General Law on Climate Change

In October 2012, the long-awaited General Law on Climate Change took effect, with the primordial goal of regulating greenhouse gas emissions and mitigating and adapting to climate change.

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

INDUSTRy

FEATURE Quality of Tourism and Culinary Education in Mexico / Evaluation and Accreditation CONAET

Vacation Ownership in Colombia

The Colombian Timeshare industry dates back to the resorts that first offered this system in the late 1980s.

Connections Beach Destination Airports Growing

Mexico's airport industry saw significant growth in the second quarter of 2013, when the number of passengers in the nation's various airports rose to nearly 22,000,000 travelers, 8 percent more than in the same quarter of last year.

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.

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» AMDETUR

Pablo Azcarraga, President of CNET and Romárico Arroyo, Chairman of the Board of AMDETUR, inaugurating the Expo-AMDETUR XXVII.

AMDETUR's 27th Annual Convention was held from June 19 to 21 in Mexico City, on the theme of “The New Era of Tourism: Capitalizing Vacation Ownership Opportunities.” We chose this title in order to underscore our confidence that we are on the right path and working to usher in a new age in this country's tourism industry, in close collaboration with all of its participants.

Activities During the Event As has been the case for the past several years, this event included a University-Enterprise Liaison Program, in which experts from the Vacation Ownership industry spoke with teachers and students from some of the leading tourism schools in Mexico City to discuss the defining characteristics of the industry and the extensive range of job opportunities it offers. The convention was also the forum for a second panel on the impact of the current Labor, Social Security and Tax Reforms on tourist resorts. Francisco Colunga, of Colunga Becerril, acted as moderator, and the panelists were Pablo Noreña of KPMG Cárdenas Dosal; Mauricio Peña Muñoz of PricewaterhouseCoopers; Orlando Corona Lara of GosslerCrowe-Horwath-Gossler, and Gustavo Ripol, CEO of The Club at Presidente. September / October 2013

The outcome of this panel was an informational document prepared by AMDETUR's Committee on Outsourcing, with the advice of Gerardo Freyre, the Association's Legal Director, specifying the impact of the central reforms on this industry and including some comments on the implications.

Expo and Annual Convention The ribbon-cutting to open the AMDETUR Expo was handled by Romárico Arroyo Marroquín, Chairman of the Board of Directors of AMDETUR, accompanied by Pablo Azcárraga Andrade, Chairman of the National Tourism Business Council (CNET), who later took a tour of the Expo together with Carlos Manuel Joaquín González, Under-Secretary of Operations with the Ministry of Tourism 01

» AMDETUR (SECTUR), Salvador Romero Domínguez, Marketing Director of the National Trust Fund for the Development of Tourism (FONATUR) and Enrique de la Madrid Cordero, Director of the Foreign Trade National Bank (BANCOMEXT). ▲ Francisco Colunga, from Colunga Becerril, moderator of the panel on Labor Reforms that affect our industry; Mauricio Peña Muñoz, from PricewaterhouseCoopers and Pablo Noreña from KPMG Cárdenas Dosal.

In his opening words, Romárico Arroyo said: “We understand that the Ministry of Tourism has made progress toward creating more precise programs and reiterate our sincere interest in participating in this process as it evolves, as we had been doing through CNET. " Later, Carlos Joaquín González, UnderSecretary of Operations for SECTUR, officially opened the 27th AMDETUR Convention. In his speech, Joaquín González told those gathered that within the National Tourism Policy that Mexican president Enrique Peña Nieto has set forth for this administration are issues like restructuring and transforming the industry, innovation and competitiveness, promotion and development, all with an eye to creating a sustainable social benefit for all Mexicans.

▼ Miguel Osuna, Senior Marketing Executive Supervisor, Mexican Caribbean, Unlimited Vacation Club, Reynaldo Ramirez, Director-Mexico Resort Sales and Services, Interval International, Angelica Vela, General Manager and Aftersales Service Partner, Royal Holiday, Carlos Trujillo, President Amdetur Executive, and Ruben Rangel, Sales Manager, Royal Holiday, at the end of the University-Enterprise Liaison program conference.

This time, the Convention program placed special emphasis on issues like social networks, emerging markets, the Mexico brand and marketing and sales, with the participation of renowned industry experts and internationally respected presenters. These are some of the conferences and panels that made up the event. Remember that you can view these presentations and videos available at www.amdetur.org.mx and on Facebook. ▼ Official opening of the Convention XXVII AMDETUR. Carlos Joaquin Gonzalez, Undersecretary of Operations, Tourism Secretary, Salvador Romero, FONATUR; Romárico Arroyo, AMDETUR, Enrique de la Madrid, BANCOMEXT; Pablo Azcarraga, CNET and Robert Craycraft, American Resort Developments Association (ARDA).

"Policies and programs of the Tourism Sector". Salvador Romero, FONATUR, Enrique de la Madrid, BANCOMEXT, Carlos Joaquin Gonzalez, Tourism Secretary, Pablo Azcarraga, CNET, Francisco Madrid, Director School of Tourism, Universidad Anáhuac Norte.

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» AMDETUR

During the official tour of the 27th AMDETUR Expo, Juan Ignacio Rodríguez, RCI; Pablo Azcárraga, CNET; Salvador Romero, FONATUR; Carlos Joaquín, SECTUR; Enrique de la Madrid, BANCOMEXT, guided by Romárico Arroyo, Chairman of the Board of Directors of AMDETUR. ►

a. Álvaro Rattinger, opinion leader and creator of Merca2.0, the most widely read online magazine in Latin America, during his lecture.

B. Juliette Powell addressing her conference on social networks and technological trends applied to the communications media.

Romárico Arroyo presenting a recognition to Juan Ignacio Rodríguez, RCI and Marcos Agostini from Interval International.

Jeremy Rabe, CEO of Club Premier, Aeromexico,

made a presentation on Loyalty Programs ►

▼ Romárico Arroyo, after delivering a tribute to Ricardo "Finito Lopez" -former boxer who won 51 and ended in a tie one out of 52 fights, for the extraordinary motivational conference that gave closure to the Convention.

September / October 2013

» AMDETUR Announcement on Private Investment in the Tourism Industry

On July 2, AMDETUR was present at an event headed by Mexican President Enrique Peña Nieto, who reiterated his administration’s determination to make Mexico a great global tourist power. Backing up this pledge, the President announced an investment of USD 600 million by the Apple Leisure Group to develop six tourist projects that will enrich the hotel supply in destinations like Cancun, Riviera Maya, Los Cabos and Puerto Vallarta. These funds will be invested in expanding and building high-quality tourist complexes that will provide jobs for more than 4,000 people and generate an economic flow of more than 350 million dollars in their first year of operation.

Second Meeting of The Board Of Directors of CPTM

In the Second Meeting of the Board of Governors of the Mexico Tourism Board (CPTM), held on July 3, participants included Romárico Arroyo, Chairman of the Board of Directors of AMDETUR, Pablo Azcárraga, Chairman of the National Tourism Business Council (CNET) and Pablo González Carbonell, Chairman of the Association of Investors in Tourist Companies (AIET), who commented, among other themes, on the importance of beginning tourism promotion campaigns for Mexico and boosting the flow of visitors heading into the high season at year-end.

General Aspects of the Federal Environmental Responsibility Law

On July 10, AMDETUR held a webinar entitled “General Aspects of the Federal Environmental Responsibility Law and Its Impact on Tourist Resorts,” given by Gerardo Freyre Fregoso, Legal Director of the Association and Director of the law firm Vera & Carvajal in Cancun, Quintana Roo. Participants learned about the latest modifications to the Federal Environmental Responsibility Law, and the implications of new obligations contained in the Law on Creation and Operation of Tourist Resorts.

through the various electronic communications media, including the publications Construcción and Notitur.

Sixth Meeting of the Tourism Commission of COPARMEX

During the Sixth Meeting of the Tourism Commission of the Mexican Employers Confederation (COPARMEX), of which AMDETUR is a member, held on August 9, Salvador Romero, Marketing Director of the National Trust Fund for the Development of Tourism (FONATUR), presented the work that his organization has carried out in recent months of the new administration, as well as investment opportunities in the various destinations where it is active.

Third CANADEVI Forum on Housing and Real Estate Development

The National Chamber of the Housing Development and Promotion Industry (CANADEVI), held its Third Forum on Housing and Real Estate Development on August 15 in

First Meeting of the Mixed AMDETUR-CMIC Commission 2013

Following up on collaboration agreements between the Mixed Commission of the Mexican Construction Industry Chamber (CMIC) and AMDETUR, on July 30, the first Work Meeting of 2013 was held. In it, members defined various actions like exchanging information of interest to both organizations, covering issues like the advantages of CMIC study programs through the Construction Technology Institute (ITC) and training plans and/or seminars that may be given to professionals in the tourist industry, particularly

Sixth Meeting of the Tourism Commission of COPARMEX. Pedro Joaquin Delbouis, Vice COPARMEX Tourism Commission; Salvador Romero Dominguez, FONATUR; Roberto Zapata Llabrés, President and Cristina Flores, Coordinator of the Tourism Commission of COPARMEX.

www.amdetur.org.mx

Âť AMDETUR the city of Tijuana, Baja California, where the president of the state chapter, Roberto Anda, reported that the housing industry generates the greatest economic flow for the state, and the national chairman, Fernando Abusaid, said that it accounts for 4% of Mexican GDP and provides 4 million direct jobs. As part of the event, AMDETUR's Executive President, Carlos Trujillo, took part in a panel of developers that proved highly interesting to all attendees, because CANADEVI has decided to focus more closely on other areas, including tourist-type real estate projects.

Club Elite Program

Developers Panel at the Third CANADEVI Housing Forum, with the participation of Miguel Angel Islas, Vice President CANADEVI Baja California, as moderator, Antonio Ruiz-Galindo, Founder and Advisor Mexican Private Equity Association (AMEXCAP) Pablo Charvel Orozco, Vice President National Association of Industrial Parks (AMPIP) Northwest Zone, and Carlos Trujillo, Executive President AMDETUR.

New chairman for ADOTIZ

We extend a warm welcome to Cristhian Samuel Orozco Oseguera, recently named chairman of the IxtapaZihuatanejo Association of Tourist Resort Developers and Operators (ADOTIZ), who is also currently Project Director of The Club at Presidente Ixtapa (since 2007) and was also Project Director for Club Quinta Real (2003-2007), treasurer of ADOTIZ (2003) and Project Director of the Fontan Ixtapa Vacation Club (2002-2003).

Cristhian Samuel Orozco Oseguera, New Chairman of ADOTIZ.

September / October 2013

Through its Club Elite program, AMDETUR seeks to consistently provide superior service to the administrative personnel and commission-based professionals who participate in our industry. For this reason, we are pleased to announce to members of the Club that in addition to the benefit of medical care from the Mexican Social Security Institute and the privileges that Resort Condominiums International de Mexico offers for the use of vacation weeks and travel services, they now have access to the products offered by Holiday Systems International (HSI), with a wide range of travel and entertainment opportunities through its Advantage system. For more information, call (52-55) 5488 2028 through 31, or write to us at: amdetur@prodigy.net.mx.

AMDETUR Job Bank

Remember that on our website at www.amdetur.org.mx, we have a Job Bank section, in which we promote contact between those seeking and offering jobs in our industry. Here you can find everything from specific job descriptions for the industry to resumes and a form for sending your information to us.

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

» AMDETUR President Enrique Peña Nieto during the Tourism Cabinet Installation Declaration and the National Investment Announcement for the Tourism Sector.

Announcement

Domestic Investment in of

the Tourism Industry and Official Inauguration of Tourism Cabinet

n August 21, Mexican President Enrique Peña Nieto announced that private investors will devote 8.63 billion dollars to 176 tourist projects, which will be developed in 27 destinations in the country over the next two years. The National Tourism Business Council (CNET) announced that this record amount of investment will be promoted by 100 corporations, including companies and investment consortiums. It stands out the construction of new hotels and timesharing properties as well as airport infrastructure, restaurants, recreational parks, golf courses, marinas, clinics and retirement communities, all of which are featured on the list of tourist plans. During his presentation of the investment, President Peña Nieto highlighted the confidence shown by the private tourism industry in participating in the country's economic development, as evident in these investments, which were introduced by Pablo Azcárraga, Chairman of CNET. Several aspects of this announcement are particularly interesting for our industry: ● AMDETUR played a leading role in collecting this information, as much of the data used in the announcement was supplied by the Association. ● A little more than 50% of the total investment–some 4.49 billion dollars--will be generated by companies affiliated with AMDETUR. ● Both Pablo Azcárraga and President Peña Nieto stressed that a large part of the investment will be in the timeshare industry, and both recognized the importance of this business segment. This is

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» AMDETUR

Left: Claudia Ruiz Massieu, Minister of Tourism, Enrique Peña Nieto, President of Mexico, Pablo Azcarraga Andrade, President of CNET, Jose Antonio Meade Kuribreña, Secretary of Foreign Affairs.

Top: Claudia Ruiz Massieu, Minister of Tourism, Enrique Peña Nieto, President of Mexico, Pablo Azcarraga Andrade, President of CNET Bottom Left: Pablo Azcarraga Andrade, President of CNET

the first time that a Mexican President has specifically mentioned the timeshare industry, which is a sign of how important it has become in this country's economic activity and in the generation of jobs. Investments in the hotel and timeshare industry will add around 33,000 new rooms or villas, generating slightly over 28,000 direct jobs and 78,000 indirect jobs, all of them wellpaid positions that can contribute to the national welfare. The President also stated that “the construction of these 33,000 hotel rooms must be conducted in a manner respectful of the environmental balance of the country.”

● Ministry of Agrarian, Territorial and Urban Development ● Ministry of the Economy ● Ministry of the Interior ● Ministry of Finance and Public Credit ● Ministry of the Environment and Natural Resources ● Ministry of Foreign Relations ● Ministry of Tourism The workgroups created to address the various tasks of this Tourism Cabinet will join forces with the private and volunteer sectors and other agencies that play a role in the issues they will be addressing. ◄

Because of the importance of the event, the President took advantage of the occasion to formally inaugurate the new Tourism Cabinet, which is made up of the following agencies: ● Legal Counsel to the Mexican Presidency ● Office of the Mexican Presidency ● Ministry of Communications and Transportation September / October 2013

» Legal Issues

New Non- Binding Criteria:

Tax Practice

By Jaime Márquez Vargas / Fiscal Planning Director, Royal Holiday and Treasurer of AMDETUR.

n August 14 of this year, the Official Gazette of the Federation (DOF) published the official “Third Resolution on Changes to the Miscellaneous Tax Rules for 2013 And Appendix 3.” Among the salient aspects of this resolution is the now official publication of a change in the Non-Binding Criteria of the provisions of the Income Tax Law, as follows: Modification to rule 17/ISR, revenues from job risks compensations or illness and two new rules, 31/ISR and 32/ ISR, intended to inhibit the use of outsourcing and the simulation of tax withholding receipts for salary payments as vehicles for income tax evasion.

17/ISR: Revenues from Job Risks Compensations or Sick Pay The following tax practices are now illegal:

1. Failing to pay income tax, totally or partially, or obtaining an undue benefit to the detriment of federal tax revenues, by making payments as if they were workmen's compensation or sick pay, when they were actually genuine wages or benefits stemming from the labor relationship. 2. Failing to take into account those wages or benefits as taxable for income tax purposes. 3.Deducting these expenses against taxable income without 08

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» Legal Issues

complying with the obligation to withhold and acquaint the corresponding income tax to the federal government. 4.Counting contingent risk bonuses as risk compensation. 5.Counseling, advising, providing services or participating in the realization or implementation of any of these practices.

31/ISR - Outsourcing y Retención de Salarios

2. Those who credit a withholding for the purposes of income tax deduction and fail to collect documentation from the withholder certifying full and complete withholding and acquaint of those taxes. 3. Those who counsel, advise, provide services or participate in the realization or implementation of any of these practices. ◄ The full Spanish text of this notice can be viewed here.

The following tax practices are now illegal:

1.Directly or indirectly creating or signing a contract with an entity, whether individual or corporation, to receive services identical to or similar to those provided by workers or service providers with the aim of avoiding the payment of some tax or obtaining an undue tax benefit to the detriment of federal tax revenues. 2.Pursuant to the above, failing to withhold income tax from workers or service providers with whom the party maintains a labor relationship, even if their wages were paid to them through some intermediary or subcontractor. 3.Deducting for income tax purposes and crediting for VAT tax purposes, based on a tax receipt that certifies the provision of services issued by a labor intermediary without collecting documentation from that intermediary certifying full and complete withholding and acquaint of those taxes. 4.Counseling, advising, providing services or participating in the realization or implementation of any of these practices.

C.P. Jaime Márquez is Public Accountant by the Instituto Politécnico Nacional (IPN). Certified by the Colegio de Contadores Públicos de la Ciudad de México of which he has been a member for 28 years. He has a Tax Diploma, is a member of the Instituto Mexicano de Auditores Internos and was a member of the Auditing Commission of the Colegio de Contadores Públicos for 10 years. He currently is AMDETUR Treasurer and Tax Planning Director for Royal Holiday -for over 16 years.Previously, he worked and came to be a partner in the Roberto Casas Alatriste Public Accountant firm. He has taken several lecturer training and coaching courses having participated in several forums. jmarquez@royal-holiday.com

Jaimemárquez

32/ISR: Simulating Tax Receipts An illicit tax practice is committed by:

1. Those who directly or indirectly create or sign a contract with an entity, whether individual or corporation, to serve as withholder in exchange for some form of compensation, and as a result, failing to pay some tax or obtaining an undue tax benefit to the detriment of federal tax revenues.

September / October 2013

Âť Legal Issues

This Land is

My Land

By Gerardo Freyre Fregoso / Cancun Office Director for Vera & Carvajal and Legal Director of AMDETUR.

roperty has long been mankindâ&#x20AC;&#x2122;s primary store of equity, as land is a type of good that has economic, religious and cultural attributes. In many ways it is the cornerstone of our society. It is the way we preserve our heritage and legacy, but it has also been the source of many social conflicts. Land is a tangible, quantifiable good, synonymous with wealth and social position, that defines one's own rights against those of others. Every person conceives their property as their absolute domain, to do with it what they will. Although the ownership of land is important, the ability to use that land is essential to the economic development of a region and respect for the environment. The use of property is not an absolute right, and above all, it is not always subject to the desires of the landowner. The loss of natural resources has an impact on society, which means we as a society must set limitations on the use of land. To regulate the use of property, a number of legal instruments have been created, like Environmental Organization Programs (EOP) and Urban Development Programs (UDP) the purpose of which is to restrict certain types of territory for certain uses (zoning), permitting, limiting or prohibiting specific works and activities. These are planning instruments that permit orderly growth under the principle of sustainability.

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» Legal Issues Obviously, it is the government that must establish limitations on the use of private property in order to guarantee the right to a clean and healthy environment. However, it is a matter of some confusion today whether these responsibilities lie with the federal government, state governments or the municipal authorities.

Who Should Control the Use of Property? According to our Constitution, the municipal government is responsible for forming, approving and administering zoning in its territory, as well as for authorizing, controlling and supervising the use of land and participating in the creation and administration of environmental reserves.1 In essence, except for federal territory or federal Natural Protected Areas (NPAs), municipalities must “freely” administer the use of land within their borders, with no further limitation than abiding by the guidelines, principles and conditions established in the legislation. In other words, the legislation must regulate and organize municipal authority, not place conditions upon it or much less usurp its functions.

In contrast to this principle, federal and state governments have changed the system created by the Constitution, through laws that have imposed “conditions” under which municipalities are “allowed” to administer the use of land in their territory, establishing an authority above the municipal government. A clear example of this invasion and control by the state government over its municipalities is the Ecological Balance and Environmental Protection Law of Quintana Roo, which specifies that local EOPs must be authorized by the governor; and the Law of Human Settlements in Quintana Roo, which says that municipal UDPs must be approved for “consistency” by the state Secretary of Urban Development and Housing. This law allows the state government, through its own Congress, to go beyond merely establishing sustainability criteria, technical guidelines or legal procedures—with the involvement of civil society—for the creation of environmental and urban plans, and positions it as the authority that passes judgment on the municipality’s decisions on the use of land in its own territory. In the federal sphere, the General Law on Sustainable Forest Development establishes that all land with forest vegetation is subject to an authorization for change of land use from the Ministry of the Environment in Natural Resources (SEMARNAT), which can be considered the most egregious intervention by the federal government into municipal territories for assigning land usage. Furthermore, the General Law on Ecological Balance and Environmental Protection gives the federal government the faculty to authorize EOP when there

September / October 2013

» Legal Issues at the federal level to centralize all issues involving land use and ownership under the new SEDAT, due to the tremendous importance of land to society and the country.

is a federal PNA and also the power to evaluate and, if such is the case, authorize and environmental impact statements for both EOPs and UPDs. This gives SEMARNAT the last word in planning, administration and zoning in municipal territories: the municipality proposes, the state supports, but it falls to the federation to decide whether not to authorize the proposed use of land, overseeing the faculties of the other two orders of government.

Why Have Municipalities Lost Control Over Zoning? Due to the control exercised by the federal and state governments, municipalities have lost their freedom to administer their territory, and although this runs contrary to the Constitution, it is undoubtedly an appropriate control from an environmental standpoint, in keeping with principles of the rational use of natural resources. It does, however, show a clear lack of trust in the responsibility, honesty and efficacy of our municipal authorities. Clearly, as long as municipalities are unable to develop their territories in a sustainable manner, the federal government will have to intervene to control the lack of regulation or improper application of regulations relating environmental organization and human settlements.

This means that we are not entirely free to use our land as we wish, because we may violate universal rights like the right to a healthy environment. The problem is that faculties are being improperly duplicated because of a battle between governments over the domain of the ownership and zoning of land. The unseen cost of this battle is the loss of investment over lack of regulatory clarity and a sense of vulnerability with regard to environmental laws. Only through clear regulations, respect for constitutional faculties and the appropriate application of environmental laws can we encourage sustainable development and attract investment to our land.

◄ 1

CPEUM 115, Section V

Gerardo Freyre Fregoso is a legal counsel and litigant with a degree from the Universidad Autónoma Metropolitana specializing in environmental and urban law. He has specialty degrees in Environmental Law from ITAM and in tax law from the Escuela Libre de Derecho. He is Director of the Cancun Office of Vera & Carvajal, where he serves as environmental consultant for the leading tourist resorts of Cancun and the Riviera Maya; he is Legal Director of AMDETUR and Professor of Environmental Legislation and Tourist Legislation in the Department of Sustainable Tourism at the Universidad del Caribe. He also has published a number of articles on the environment, tourism and the Constitution.

GERARDOFREYRE

The federal government has already created a specialized state ministry to deal with matters of property, the Secretary of Agrarian, Territorial and Urban Development (SEDATU), leaving environmental matters to SEMARNAT. However, there is a tendency 12

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Âť Legal Issues

n October 2012, the long-awaited General Law on Climate Change took effect, with the primordial goal of regulating greenhouse gas emissions and mitigating and adapting to climate change. The law is also intended to promote Mexico's transition to a competitive, sustainable economy with low greenhouse gas and compound emissions, bringing it one giant step closer to sustainable development, for the benefit of present and future generations.

New General Law

on Climate

Change

By Alberto Silva / Head of the Environmental Department of Goodrich, Riquelme y Asociados

Key aspects Some of the central aspects of the new law refer to the creation of a National Emissions Registry that will contain information relating to emissions generated by a number of fixed and mobile sources that regulators will determine. In other words, regulatory authorities will establish which industries, subindustries and activities are obliged to report their emissions to the Registry. It will also lists information about projects or activities that mitigate or reduce contaminating emissions as well as domestic or international transactions involving carbon offset or reduction certificates. The law also establishes that, in keeping with National Climate Change Policy, the federal, state, and Mexico City governments must develop and apply economic instruments that encourage compliance with the objectives of that policy, the most important of which are mitigation and adaptation to

September / October 2013

Âť Legal Issues climate change. This means tax stimulus incentives provided for under the Federal Budget Revenue Law will be available for activities relating to research, incorporation, or the use of energy efficiency systems; technology and equipment that avoid, reduce or control emissions; the development of renewable energy sources; and activities relating to mitigation and adaptation to climate change. These economic instruments can have an impact on the tourism real estate sector, either through market instruments like concessions, permits, authorizations and licenses relating to reestablished volumes of admission (or authorized emission quotas), or through fiscal economic instruments which translate, in most cases, into tax incentives as is common in Mexico City.1 Tourism real estate developers may find it attractive to apply for tax benefits by implementing, for example, energy consumption saving systems, such as those already being introduced in various tourist projects, or obtaining LEED certification of the real-estate project by offering environmental benefits such as a substantial reduction in energy use, waste and water consumption.

to participate in the system, but what is clear is that this system of carbon certificate trading will provide incentives for private companies to lower their greenhouse gas emissions and thus contribute to Mexico's goal of reducing these emissions by 30% by the year 2020 and by 50% by 2050. In summary, the General Law on Climate Change will bring new obligations and business opportunities for the tourism real estate industry in our country, in addition to the environmental and social benefits that will result from its application and enforcement.â&#x2014;&#x201E;

Tax stimulus incentives provided for under the Federal Budget Revenue Law will be available for activities relating to mitigation and adaptation to climate change.

Alberto Silva is currently head of the environmental department of Goodrich, Riquelme and Associates. He has a Master's Degree in International Environmental Law (LLM) from the University of Nottingham, England. He is an active member of various committees, like the Environmental Rights Committee of the AsociaciĂłn Nacional de Abogados de Empresa, Colegio de Abogados, A.C. (ANADE), and the Section of Environment, Energy and Resources of the American Bar Association (ABA). asilva@goodrichriquelme.com

Another important aspect that has attracted widespread interest in the private sector is the creation of a voluntary system of emission trading, in which interested parties can voluntarily participate in trading carbon offset certificates, such as in other countries, primarily the United States and the European Union.

albertosilva

We will have to wait for the specific regulations on this law to determine the guidelines and criteria required 1 The Environmental Law of Mexico City and the Tax Code of Mexico City provide for tax stimulus incentives consisting of a reduction in property taxes and payroll taxes.

www.amdetur.org.mx

» INDUSTRy

Vacation

Ownership

in Colombia By Juan Luis Londoño Osorio / Chairman of the Board of ASTIEMPO

he Colombian Timeshare industry dates back to the resorts that first offered this system in the late 1980s. But it was not until the 90s when Vacation Ownership programs took formal hold in the country, accompanied by legislation to regulate them and make them a legally-established vacation system. In more recent years, the Timeshare boom has brought a growth of 13 percent between 2011 and 20212, according to studies by Resort Condominiums International (RCI) Mexico.

More recent studies have shown that Colombians are beginning to incorporate annual vacations into their lifestyle, and today vacation planning is a basic part of any family budget.

The growth has been driven by a variety of factors, like an improvement in the domestic economy, a reactivation of foreign investment, the growth of the middle class, and, more importantly, security policies adopted in Colombia over the past 10 years, which have encouraged tourists to travel to the country’s various tourist destinations by car, and have even promoted the creation of new tourist resorts in some of the farthest reaches of our territory.

Vacation Ownership Preferences

September / October 2013

Vacation Complex Zuana Beach Resort, Santa Marta.

The most popular domestic vacation destinations for Colombians are Cartagena, Santa Marta, Eje Cafetero, San Andrés and Amazonas, according to a study by Interval International. The most popular international destinations are the United States, Caribbean, Mexico and South America.

The Vacation Ownership models that are most frequently sold in Colombia are point-based systems, although traditional floating and fixed-week schemes also remain popular. 15

Âť INDUSTRy The main buyers of vacation property in Colombia continue to be Colombian citizens, with only a small participation by foreign citizens. This is evident in the following graph. Estimated Breakdown of Colombian Timeshare Owners by Place of Residence, 2012 98% Subtotal Colombia 0.5% Latin America 0.1% United States 0.2% Europe 1.2% Others

ago it worked together with the Vice Ministry for Tourism and with the support of the Tourism Promotion Fund (FONTUR), a special account of the Ministry of Commerce, Industry and Tourism, created to manage public-sector service fees and charges paid by users, which by law must go to promoting and making tourism more competitive, to develop industry standards. Today, with the support of FONTUR, researchers have begun investigating market sensitivity in the industry, what consumers consider to be its most important attributes, and the impact of sales prices on growth of the industry, seeking information on new distribution and communication channels that would allow investors to leverage on concrete expectations of future expansion. In parallel, an industry-wide survey is being developed in order to determine the impact and growth of the segment. At present it is estimated that close to 60 hotel properties are active participants in the industry.

Source: Vacation Ownership Factbook Latin America and the Caribbean, 2012. RCI

Participation of ASTIEMPO in the Industry

In Colombia, the evolution of tourism laws has strengthened the Vacation Ownership industry contributing to its institutionalization, ethics and transparency. Tourism today is a major contributor to Colombiaâ&#x20AC;&#x2122;s economy, and in order to promote its development, new regulations were created recently to grant tax incentives to the tourist industry for building hotels and vacation complexes.

In order to promote regulation of the Timeshare system, and encourage a harmonic and reliable growth of the tourist industry, the Colombian Timeshare Association, or ASTIEMPO, was founded in 1994 by a group of tourist resort builders and promoters. This Association played an active role in developing the General Tourism Law in 1996, and our industry was included in its regulations. Among ASTIEMPO's main goals are promoting the comprehensive development of the Timeshare industry in Colombia, and preserving professional ethics and personnel training. The Association has a Code of Ethics that regulates the industry and promotes plans and programs intended to guarantee protection of users and consumers of our products. ASTIEMPO collaborates on an ongoing basis with government institutions. For example, several years 16

Vacation Complex Zuana Beach Resort, Santa Marta.

www.amdetur.org.mx

» INDUSTRy

" The Vacation Ownership models that are most frequently sold in Colombia are Point-based systems, although traditional floating and fixed-week schemes also remain popular." The outlook for growth this year is encouraging, based on components such as a specific consumer protection framework promoted both by the authorities and by industry participants; a clear priority on market research; a wide variety of vacation products, in harmony with new developers that have assessed commercial opportunities in in the industry; and indicators that point to expansion.◄

Juan Luis Londoño Osorio has a degree in Business Administration from Colegio de Estudios Superiores de Administración CESA. He has been involved in the Vacation Ownership industry for 17 years as Manager of the Tourism Division of Constructora Bolívar S.A. and President of the Colombian Timeshare Association (ASTIEMPO), in recent years. jlondono@zuana.com.co

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 September / October 2013

DAVIDKrantz

06 04 17

www.LASOSummit.com

October 23rd and 24th, 2013 JW Marriott Bogota, Colombia

With the goal of bringing together the top players in the Vacation Ownership and Leisure-Oriented Real Estate Industry, RCI®, together with the official sponsor TORE -Tourism Oriented Real Estate Advisory and Consulting - presents:

LASOS The Latin American Shared Ownership Summit LASOS is the first Latin American event of its kind, created by tourism industry experts to discuss new trends and innovations that will undoubtedly set the course for the Latin American tourism industry. LASOS has been designed as a dynamic, cutting-edge two-day event that offers guests the opportunity to benefit from keynote speeches led by world renowned speakers such as: C Carlos Vogeler Ruiz - Regional Director for the Americas, World Tourism Organization - will give a lecture entitled, “Tourism: Global Outlook”. C Luis Carlos Velez - News Director at Caracol Televisión – will present the topic, “Economic Outlook in Latin America and the United States”. C Benjamin Beja – TAO Inspired Living – will lead a lecture entitled, “Creating Concepts”. C Isaac Perez- Managing Partner of Cliento.mx – will discuss “Digital Marketing and the new ROI”. Furthermore, during panel discussions and workshops led by key industry figures, you'll have the opportunity to become familiarized with the latest industry trends, perspectives, insights, and recommendations geared toward supporting the growth of the Tourism-Oriented Real Estate Industry in Latin America.

Don't miss the opportunity to attend the Tourism Industry's premier event! Find the full line-up of speakers at www.LASOSummit.com as well as all the details you'll need to know about this singular event.

www.amdetur.org.mx

» FEATURE

Quality of Tourism and Culinary education in México

Evaluation and Accreditation by the National Council for Tourism Education Quality (CONAET) By Rafael Gutiérrez Niebla / Chairman CONAET

efore beginning, I should clarify that “tourism education" refers to all academic programs in tourism, tourism management, hospitality, gastronomy, institutional management, alternative tourism (ecotourism, cultural tourism) that are most frequently mentioned in the Mexican higher educational system and are among the top five graduating programs in the area of tourism and gastronomy. To save time in this presentation I have grouped them all under the term “tourism education."

After around 50 years of experience, tourism education in Mexico has entered a phase in which diagnostic evaluation and quality certification are the keys to the present and to a possible and probable future. Taking a hard look at ourselves after this half century, the academic sector of one of the country’s most important economic activities is convinced that there are four immediate challenges to overcome:

1 2 3

An insufficient production of in-house didactic and pedagogical instruments for development. A disconnect between Mexican tourist activity and employers, society, government and academe.

The lack of scientific, academic and methodological rigor that permeates many tourism educational programs in the country, which has contributed to the idea that these are “easy” careers without a clear identity, and is also reflected in the profession itself.

September / October 2013

» FEATURE

A complete lack of professional identity, which leads much of the public to believe that it's about “traveling a lot and meeting many people.” With these overarching challenges as a premise, the founding document of the National Counsel for Quality in Tourism Education (CONAET), with which AMDETUR collaborates, establishes that one of the primary functions of this nonprofit and nongovernmental organization is to comprehensively evaluate and accredit academic degree programs in tourism offered by various higher educational institutions, in order to be able to recognize the quality of these degree programs and encourage their continuous improvement. To this end, and pursuant to the regulations established by the Higher Education Accreditation Council (COPAES) -an umbrella organization sponsored by the Mexican Ministry of Public Education (SEP) which recognizes 28 accrediting agencies that cover almost the entire spectrum of training in sciences and disciplines of knowledge like medicine, engineering, administration, tourism and others, CONAET has defined various documents and instruments like the General Framework, the Self-Study form and the Glossary of Terms, which must be followed by academic institutions requesting evaluation for the purposes of accrediting their tourism degree programs. The purpose is to make these accreditation processes more consistent, regardless of the level and profile of the graduates, and thus to share a unified view of the concepts of accreditation and quality of an educational program in keeping with the guidelines

of UNESCO (United Nations Educational, Scientific and Cultural Organization). This guarantees that the results of accreditation are always reliable and that the evaluation itself is also submitted to a continuous process of improvement, based on national and international standards, while taking into account each region’s place in the socioeconomic context. In Mexico, accreditation is voluntary, in keeping with an educational policy based on international trends and agreements, like the section of the North American Free Trade Agreement, signed in the 1990s, entitled “Professional Services.” This means educational institutions are free to request evaluation or not, although the benefits of a culture of internal and external quality has created a rising demand for the public recognition that accompanies program accreditation.

Educational Programs

In the universe of higher educational programs, according to the UNESCO denomination (Bachelors Degree, Technical Colleges, Universities and Associated Professionals) and based on data from the General Department of Educational Planning and Statistics of the Mexican Ministry of Education in 2011, consists of 732 degree programs, 17% of which are offered by public institutions and 83% by private schools, although enrollment is divided half-and-half, meaning 50% of students are studying in public universities and schools and the other 50% in private institutions. There are 98 different names to refer to those programs, and overall enrollment is approximately 90,000 students.

www.amdetur.org.mx

» FEATURE

Looking at the profile of graduates, 9% of the programs offer degrees in Tourism Planning and Development (with a mix of business administration), 61% grant degrees in Tourism Business Management, 27% in Gastronomy, .4% in Institutional Administration/Hospitality, and the last 2.60% are in the most recently created program, Alternative Tourism (nature, culture, etc.). From the time it received official recognition in 2004 from COPAES and through the first half of 2012, CONAET has completed 100 evaluation processes, covering 13% of the total universe, for the purpose of accrediting higher educational academic programs in the area of tourism. In this process, 78 programs obtained recognition (15 of them reaccreditation after 5 years), 60% were public institutions and 40% were private schools. At present, 18 more evaluations are in progress, in various phases of evaluation. The following are the primary conclusions of the evaluations conducted between 2004 and the present, although this does not imply that the programs of institutions that have not yet been evaluated lack quality. Bear in mind that an evaluation requires time, work, resources and personnel to prepare the self-study and to gather and document corresponding evidence, and that the Accreditation System is relatively young, having been developed for only 13 years with COPAES www.copaes.org.mx .

September / October 2013

• CONAET's tourism education accreditation process yielded results that had already been identified empirically over its 50 years of existence, but which had not been backed up by solid analysis as they are now. • It is crucial that we work together on the identity of tourism education programs, in keeping with the profession, dignifying our image before society and generating a culture and awareness of tourism of and in Mexico. • An ongoing review of descriptive letters or programs to analyze course material, as well as comprehensive study plans every five years, should enable us to compare curricula against the Curricular Design Recommendations Guide, which has been developed by national consensus and is in the process of being updated. • Command of English or other languages is not a direct component of a tourism education degree, but it has traditionally been considered an advantage for graduates, and for this reason we need to diversify mechanisms and instruments for accrediting this ability, as a requirement for admission, continuance or graduation from the degree programs. This has been a constant demand in the industry that employs graduates, and including foreign language course material in the curricula has not yielded results over 50 years. • Although it is a structural problem of the Mexican educational system and a challenge to higher education, students' functional illiteracy (they know how 21

» ARTÍCULO

to read and write but do not understand or produce concepts nor much less have the ability to place them in the context of each age), the lack of quantitative abilities and thinking skills, deficiencies in oral or written expression or in mathematical reasoning, are all realities that directly affect the quality of higher education–not just in tourism–and remedial mechanisms and instruments must be developed. • The area of Academic Personnel is the focus of the greatest number of accreditation valuation criteria, and therefore the area that requires the greatest attention and development. • It is imperative we develop mechanisms by which tourism education in Mexico can formalize universityenterprise engagement programs to create a firm structure of practical training (in all forms and at all levels of the curriculum), managed comprehensively by academic institutions, which is fundamental in training human resources for tourism. • By having instruments that enable them to establish formal and systematic ties, academic institutions will be able to pursue joint projects with the communities around them and produce their own literature, improve the quality of their knowledge and take advantage of opportunities to access equipment and computer and software infrastructure used in the tourism industry.

For more information, see www.conaet.net, where you will find figures on performance against 143 evaluation indicators nationwide from 2004 to 2013, as well as statistics generated from the information obtained on Mexican educational programs in the same period.◄ www.conaet.net Conaet @conaet Rafael Gutiérrez Niebla has an Undergraduate Degree in Tourism from the Universidad Hispano Mexicana and a degree in philosophy from UNAM, and has been working in the tourism industry since 1978, especially in travel agencies, public relations agencies, events and conference organization. He has been involved in academe since 1991, and has headed various nonprofit academic associations, nationally and internationally. He has given 143 conferences in Mexico and another 17 countries of the Americas and Europe. Founder and chairman of CONAET from 2002 to the present.

• It is urgent and imperative we develop a culture of research with the participation of government, business, society, employers and academe.

RAFAELGUTIÉRREZ

www.amdetur.org.mx

» Connections

Beach Destination

Airports Growing By Víctor Valdés / Professor-Researcher, Universidad Anáhuac

exico's airport industry saw significant growth in the second quarter of 2013, when the number of passengers in the nation's various airports rose to nearly 22,000,000 travelers, 8 percent more than in the same quarter of last year. The growth varied from airport to airport, however, with some advancing and some of them even losing ground.

Among the tourist airports that reported more than 100,000 passengers in the quarter and saw the strongest growth (see figure 1) were Cancun, San Jose del Cabo, Veracruz and Mazatlan, all of them reporting double-digit growth. Cancun, for example, welcomed 4 million passengers in that period, an 11 percent increase, and San Jose del Cabo grew by 17 percent, to more than 800,000 passengers. More moderate growth was reported by Acapulco, Merida and Puerto Vallarta, which turned in increases of 9 percent, 5 percent and 3 percent, respectively. Finally, airports with around 100,000 passengers, like Huatulco, Cozumel and La Paz, reported little change or, in some cases a reduction.

Airports: Key to the Development of Tourist Destinations

Tourist destinations rely primarily on pleasure travelers, from within the country and abroad, and many of their

September / October 2013

» Connections Millions of passengers per airport during the second quarter of 2013 4.0

Source: In-house calculations based on data from the General Department of Civil Aeronautics (DGAC)

3.6 / 4.0

2012 2013

3.0 2.0

visitors arrive by air. That's why the farther they are from the centers of the country's population, and the weaker the land infrastructure is, the more important than airport is for the destination’s development. There is a strong connection between the growth in airports that serve Mexico City and those of tourist destinations. In the second quarter of 2013, the Mexico City International Airport (MCIA) grew 7 percent, while the Toluca International Airport (TIA) grew by 35 percent, both largely attributable to the increase in domestic passengers heading for tourist destinations. As for international traffic, the San Jose del Cabo, Merida and Cancun airports confirmed their role as “international” ports of entry, because the growth was stronger among international travelers, while the La Paz, Veracruz, Acapulco and Cozumel airports actually experienced a downturn in the number of passengers from other countries.

0.6 0.1 La Paz

0.1 Cozumel

Huatulco

0.1 Puerto Vallarta

0.3

Mérida

0.1 Acapulco

0.2 Mazatlán

San José del Cabo

Cancún

0.2 Veracruz

0.7/ 0.8

1.0

In conclusion, we are seeing a consolidation and/ or reactivation of some tourist destinations, which are taking advantage of their infrastructure and the growth in domestic and international demand to attract visitors, like Cancun, Los Cabos and Mazatlan. Others have made up for the loss of international travelers by bringing in more domestic visitors, like Acapulco and Veracruz, although–in another category altogether– there are warning signs in destinations like Huatulco, La Paz and Cozumel, which are becoming increasingly less competitive as destinations for attracting domestic and foreign tourists. ◄

Víctor Hugo Valdés Cervantes has a doctorate in Strategic Management and Development from Universidad Anáhuac Norte as well as a Master’s Degree in economics from Cornell University in the United States. He is a professor and researcher at Universidad Anáhuac México Norte, where he specializes in the areas of competition and regulation, with an emphasis on the air transport industry. He is also an analyst in the General Department of Economic Research in the price index area for Banco de Mexico. vhvaldes@anahuac.mx

www.amdetur.org.mx

» advertorial

Is your product

evolving

with consumer spending

behavior?

n a time when consumer demographics are changing, so must the vacation ownership value proposition. The vacation ownership industry as a whole has not responded in pace with the changing demographics of today’s customers. The demographic profile that was once a prime buyer is now more fragmented as a result of more readily-available options. Today’s buyers view vacation ownership as just one segment of their leisure life. While some vacation ownership organizations are struggling as they continue to hunt for the perfect demographic profile, others are doing better by choosing to evolve their value proposition to appeal to a wider audience. As times change, so must our product value proposition. Understanding current global leisure spending behavior is crucial to remaining relevant in the eyes of our customers. There are two key areas to this value proposition evolution, (1) unique shared ownership benefits that enhance flexibility and brand loyalty, and (2) global travel benefits that incorporate competitor services. When enhancing these two areas properly, vacation ownership organizations are seeing impressive results. When it comes to shared ownership benefits, one thing is for certain; simply adding timeshare exchange benefits is not enough for today’s customers. When it comes to global travel benefits (i.e. hotel stays, cruises, tours, airfares, etc.), if the vacation ownership organization does not offer these benefits “competitively”, as a benefit of their brand, they force owners to competing

September / October 2013

providers through pay-as-you-go methods. This is the wrong message. Owners need to know they can obtain all their leisure needs from one place, their vacation ownership program. From a business perspective we must monetize every aspect of an owner’s leisure life, and we must not allow our owner’s disposable income to be captured by competitors. Consumers are choosing pay-as-yougo travel over vacation ownership at an increasing frequency. By incorporating travel benefits that are actively purchased, the timeshare organization expands value, increases sales, increases brand loyalty and captures lost revenue. However, when it comes to partnering with a travel provider, there are significant differences between one provider and another. Today, more so than ever before, customers are measuring value by comparing alternatives, largely because of how readily available those alternatives are through the Internet. Here are a few examples of current leisure spending behavior: In 2012, over 57% of all lodging was purchased online, up over 43% in the last ten years. Additionally, more than 44% of all travelers are using price-based websites to book travel. This impacts vacation ownership

» advertorial sales, because as online pay-as-you-go spending increases, prepaid right-to-use (vacation ownership) spending decreases. These are factual spending behaviors. If this is how consumers are actively spending their money, this makes it imperative for the vacation ownership industry to adapt to this behavior. We are not suggesting developers sell these benefits as their core product, but we recommend imbedding them within the value proposition competitively and profitably. The results are more sales, better loyalty, less leisure spending fragmentation, and, when partnering with the right company, this also creates a new perpetual revenue stream important to the bottom line.

. As a travel aggregator, HSI’s affiliates benefit from the world’s most comprehensive selection of travel options backed by the world’s most generous best-price guarantees. From over 500,000 hotels, to over 400,000 destination activities, and every other imaginable global travel benefit, no other single company offers more, or better pricing.

Holiday Systems International (HSI) is just that company. HSI has been an industry leader in product innovation for the last 20 years. When it comes to choosing the right partner to synchronize value proposition with consumer leisure behavior, HSI has “written the book” on the subject. For both unique shared ownership benefits and global travel benefits, HSI has a very impressive track record. When enhancing these two areas with HSI’s awardwinning services, vacation ownership organizations see remarkable results. HSI partners are benefiting from HSI’s infrastructure by leveraging the following three primary strengths:

. As a technology company, HSI’s affiliates benefit from award-winning enhancement systems, sales tools, user interfaces, point system enhancements, online booking systems, loyalty programs, lead generation systems, room occupancy solutions, administration systems and more.

. As a timeshare specialty company, HSI’s affiliates benefit from game-changing services that pay maintenance fees, enable vacation ownerships to spend like cash for best-price travel, and many other unique and valuable enhancements that support vacation ownership.

When combining HSI’s full infrastructure of proprietary technologies, timeshare specialty services and travel aggregator access, HSI is uniquely positioned to assist their affiliates in monetizing current consumer behavior in a scalable and sustainable way. Furthermore, HSI makes the industry’s most generous financial cash commitment to each affiliate in both maintenance fee payments and transaction revenuesharing. As the only company in the world to actually pay owner maintenance fees, HSI has paid over $33,000,000 (U.S. dollars) in maintenance fee payments, benefiting over 1,300 properties. As the industry’s most generous travel revenue-sharing partner, HSI affiliates receive millions in travel transaction revenue. Additionally, HSI provides the industry’s most sophisticated vacation ownership loyalty systems, which they actually fund with their own money! Yes, HSI will fund an affiliate’s loyalty program with cash deposits, increasing onsite spending, upgrades, brand loyalty and more. All HSI services are provided through their in-house infrastructure without third-party dependencies, making their affiliate customization options limitless. From fully customized private-branded systems, to whatever the

www.amdetur.org.mx

» advertorial imagination can devise, HSI has either created it, or can create it. Whether it’s a comprehensive loyalty system, a private-branded hotel booking engine, cruise booking engine, customized points system, or enhancements to an existing points system, HSI will impress you with their professionalism and infrastructure. When it comes to product control, HSI has written this chapter as well. HSI partners always control their owner value (travel pricing to owners) and transaction profit (affiliate revenue-sharing), which is configurable at a user-per-user level… something just not available through any other company. We end this article with a compelling HSI message… Stop doing business with companies that selfishly monetize your owners. Instead, isn’t it time you did business with a company that empowers you to monetize your owners? Now more than ever, vacation ownership properties need to partner with a generous

company like HSI. Currently servicing over 4 million private clients in seven languages, HSI is a proven leader in today’s global vacation ownership industry.◄

Want to learn more about HSI? Please contact them at: 702-254-3100 (direct) 800-353-0774 (U.S./Canada) 01-800-681-1809 (Mexico) 00-800-0012-2222 (Europe)

Sales@HolidaySystems.com www.Sales.HolidaySystems.com

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.

Global Travel Benefits

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

September / October 2013

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