From January to April, tourist investments in Mexico have totaled $2.803 billion USD, accounting for 84% of the total annual goal in this area.

The SECTUR director noted that during the past 16 months of President Felipe Calderón’s administration, Mexico has accumulated $6.267 billion USD, as a result of which it has achieved 31% of its six-year goal of $20 billion USD.

On behalf of President Felipe Calderón, Elizondo inaugurated the 22nd Annual Convention of the Mexican Association of Tourist Developers (AMDETUR) on “Tourism, the Engine of Development for Mexico.”

Earlier today, Tourism Secretariat Rodolfo Elizondo inaugurated the 22nd Annual Convention of the Mexican Association of Tourist Developers (AMDETUR) on “Tourism, the Engine of Development for Mexico,” at which he told businessmen in the area that Mexico has shown favorable results regarding private tourist investment by accumulating $2.803 billion USD during the first four months of the year.

Accompanied by José Carlos Azcárraga, President of AMDETUR, the SECTUR director stated that as a result of the confidence of investors in the tourism sector, 31% of the six-year goal of $20 billion USD has been achieved, since over the past 16 months of President Calderón´s government, $6.267 billion USD of investment in tourism have been generated.

“55% of this investment comes from national capitals, while the remaining 45% corresponds to foreign investors, mainly from the United States and Spain.”

“The presence of those of you who are tourist investors and developers confirms your enormous confidence in Mexico and your willingness to continue combining forces and coordinating the actions that will enable us to increase tourist flows and investments and thereby contribute to Mexico’s economic development,” declared Elizondo Torres.

He went on to say that in order to continue promoting tourism in Mexico, the National Tourist Promotion Fund (FONATUR) will participate in major projects such as La Pesca in Tamaulipas as well as two tourist real estate developments in Puerto Escondido and Baja California Sur.

The Tourist Secretary admitted that tourism in Mexico will be further reinforced by President Calderón’s support of this industry, one example of which has been the creation of the National Infrastructure Fund.

“This fund provides the possibility of financing tourist projects for the state, which in turn will facilitate the construction of the tourist attractions we have planned, as well as the improvement of urban services in already consolidated destinations.”

In particular, he reported, the Tourism Secretariat has formally submitted a package of seven investment requests for providing basic services such as drainage, safe drinking water and the installation of wastewater treatment plants and other urban works for seven beach tourism destinations, including Cancún, Ixtapa-Zihautanejo, Loreto, Los Cabos, Puerto Peñasco, Puerto Vallarta and the Riviera Maya.

Lastly, Secretary Elizondo urged businessmen and investors to continue trusting in Mexico and to create a sustainable, orderly development for the benefit of the industry and Mexico’s economic and social development.
“The point is not to do business to the advantage of a few and to the disadvantage of many but to ensure that investments in Mexico are attractive and profitable for investments while distributing wealth, which will create well-paid sources of employment and provide local benefits.”

“I would urge you to continue investing in Mexico and for our growth to be orderly and planned and have a long-term vision rather than one based on doing business in a day,” he stated.

The inauguration of this event was attended by Ernesto Coppel Nelly, President of the National Tourist Business Council (CNET); Luis Antonio Mahbub Sarquis, President of the Confederation of National Chambers of Trade, Services and Tourism (Concanaco-Servytur), legislators, state tourist businessmen and businessmen in the area.
Source: Head Office of Media and Communication, Press and Information Office, Tourist Secretariat (SECTUR).

original here

Posted on June 23rd, 2008 by Tropicasa
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6/4/2008.-As of last Monday, the International Airport of Puerto Vallarta Gustavo Díaz Ordaz has a booth which is reimbursing the Value Added Tax (VAT) to foreign tourists that have made purchases in the country.

The booth is owned by the Mexican company Yvesam Retornos Mundiales S.A de C.V, who obtained a ten year concession to administer the reimbursement of the tax to those foreign tourists who can show a minimum purchase of 1,200 pesos (including the VAT) in Mexico and that they are returning to their country either via airplane or ship.

This booth has three people to attend to the customers and right now is open from 8:00 am to 8:00p.m. and soon will maintain the house of 7:00 am to 10:00 pm

The manager of operations of the booth, Uriel Miranda Zavala, indicated in an interview with the media, “the response of the businesses and the tourists has been scarce because of a lack of information on this new policy. We need to begin, both the government, the businesses and we ourselves, to spread the word that this is a benefit that will help tourism and obviously increase income to small and medium sized businesses from the consumption that the tourists make in those affiliated businesses.  At the same time, he revealed “that very few tourists have come by since they think it is a money exchange – all this due to misinformation that exists, and in fact, many businesses in Mexico still do not realize that they are returning the VAT to the foreign tourists here just like they do in other countries.”

It is important to note that the reimbursement of IVA to those foreigners in Mexico as tourists is only done in the event they have acquired products or services in one of the businesses or stores that are affiliated with the concessionaires authorized by the tax authority, in the case of Puerto Vallarta, the one currently operating is Yvesam Retornos Mundiales S.A de C.V.

Nevertheless, due to misinformation and lack of interest from Vallarta businesses, only two companies have become affiliated, (Optica Alvarez and No Name Boutique) even though affiliating costs nothing to the affiliating business; on the contrary, the affiliates shall actually have a “benefit” as the tourists will have a distinct advantage with merchandise that they acquire since they have the possibility of the reimbursement of the VAT.  It is also important to note that this benefit does not include services, such as hotel and restaurant, just as in other parts of the world.

The tax authority (SAT) granted concessions to three companies for operation.  These companies are Premier Tax Free, Global Refund México and YVESAM Retornos Mundiales S.A de C.V, who will be responsible for the administration of the return of the tax to foreign tourists that can show a minimum purchase of $1,200 pesos (including VAT) in Mexico and that they are returning to their country either via airplane or ship.

The Procedure

As part of the procedure, which shall be completed bit by bit throughout the country, purchases made by international tourists must be paid by credit card of debit card or in cash if less than $3,000 pesos.  Purchases may be made in those stores or businesses that have been affiliated with a concessionaire who is duly authorized by the tax authority.  For the reimbursement, the tourist shall have the right to receive up to 50% of the net reimbursable amount back in cash, as long as said amount is not more than $10,000 pesos, and the balance shall be sent electronically within 40 days.  The airports which are going to begin operation this summer, in the first phase, are the airports of Mexico City, Cancun, Guadalajara, Los Cabos and Puerto Vallarta; this because they have an large influx of international visitors.

In the second phase, in the next six months, booths will be set up in the airports of Monterrey, Cozumel, El Bajío, Mazatlán and Morelia; finally this will occur in the rest of the airports in Mexico and ports such as Acapulco, La Paz, Huatulco, among others.

(original, in spanish http://www.vallartavive.com/vallartavive.asp?id=2018)

Posted on June 9th, 2008 by Tropicasa
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From the 30 May 2008 Miami Herald, BY FEDERICA NARANCIO McClatchy Newspapers

WASHINGTON — When the U. S. economy sneezes, Latin American economies catch colds, according to an old saying. Not this time — at least for now. The U.S. crisis triggered by subprime mortgages and rising energy costs will spare most economies in Latin America, experts said Thursday.

The bad news is that the slowing U.S. economy and high oil and food prices will continue to drag down the global economy, including Latin America’s to some degree.

Overall, the International Monetary Fund predicted that the region’s growth would slow from 5.6 percent in 2007 to 4.4 percent in 2008 and to 3.6 percent in 2009.

Over the past decade, the region experienced steady economic growth, but not every country is well positioned for the downturn, said Anoop Singh, the director of the Western Hemisphere department at the International Monetary Fund. He and others spoke at the American Enterprise Institute, a neoconservative policy institute in Washington.

They noted that countries such as Venezuela, Brazil, Chile and Mexico have seen their economies grow because of a boom in commodity exports such as oil, copper and soy, but not due to fundamental improvements in their economies.

‘‘International commodity prices have experienced an unprecedented boom over the past five years, but they are expected to ease if there is a global recession,’’ said Desmond Lachman, an advisor to AEI.

THE POOR’S BURDEN

Independent of the U. S. economic situation, high food and energy prices are burdening Latin America’s poorest people, said Singh.

Countries such as Brazil and Mexico can deal with that because they have welldeveloped social programs to address the needs of the poor, he added. Other countries, however, lack the money to do so. Singh urged those countries to turn to international organizations such as the IMF for social welfare funds, rather than using their central banks.

Haiti has done that, Singh said, and other Central American and Caribbean nations are following suit. On Tuesday, the Inter- American Development Bank approved a $500 million line of credit primarily to assist Guatemala, Honduras, El Salvador, Costa Rica, Nicaragua, Panama and the Dominican Republic.

Because their economies are more closely tied to the U.S. economy and they rely on imported oil, Singh and other analysts said, they’d be more affected by the global food and energy crisis than other South American economies will be.

Inflation is another major concern in the region. Lachman and two other advisors from the institute gave Brazil and Mexico ‘‘A’s’’ for acting quickly to keep inflation low. Venezuela and Argentina got ‘‘ F’s’’ for adopting populist policies that will make it harder for them to rein in inflationary pressures.

In Argentina, where the government increased taxes on agricultural exports, farmers have been protesting on the streets for months.

LIVE AND LEARN

Richard Noriega, a former assistant secretary of state for Western Hemisphere affairs and now an advisor to AEI, said the popular protests in Argentina show that people are ‘‘terrified’’ by the prospect of an economic crisis. But he said that other countries in the region would learn from Argentina’s mistakes and avoid them.

‘‘Argentina and Venezuela are cautionary tales that reassure other countries that what they are doing is the right thing,’’ Noriega said. ‘‘If you slap the invisible hand of the market, you are more likely to have problems.’’

Posted on June 2nd, 2008 by Tropicasa
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