Mexican Pacific Coast Tourism Project to Outshine Cancún
Barnard R. Thompson - MexiData.info
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The Mexican government has announced a major new tourism development that will stretch along the Pacific Ocean coast of southern Sinaloa – a project that will ultimately be twice the size of Cancún. A master planned tourist area to rival not just Cancún, but too the Riviera Maya that runs along the shores of the Mexican Caribbean.

President Felipe Calderón, with officials from the Mexican government`s National Trust Fund for Tourism Development (Fondo Nacional de Fomento al Turismo, or Fonatur), made the announcement at the September 29 opening of the Fonatur sponsored Mexican Real Estate and Tourism Investment Expo, in Mexico City.

Provisionally called the Pacific Coast Integrally Planned Center, infrastructure work is scheduled to begin during the first half of 2009, with the final stage of the phased developments to be completed by 2025. This in much the same way that other Fonatur master planned seaside resorts, such as Cancún, Los Cabos, Ixtapa, Loreto and the Bays of Huatulco, have been done.

The 5,884 acre [9.2 square miles] Pacific Coast CIP will be in the midst of the Sinaloa National Wetlands, in part on the near 5,000 acre Rancho Las Cabras, owned by former Sinaloa governor Antonio Toledo Corro. The area is 80 miles south of Mazatlán and west of the Mexico Highway 15 town of Escuinapa, in the municipality of the same name. On land between the Pacific Ocean and lagoons and marshes known as the Laguna Agua Grande, the area will include 7.5 miles of beaches between the villages of Isla del Bosque and Teacapán to the south on the State of Nayarit border.

The coastal area is well known locally for its beauty and tranquility. Slightly inland from the coast, the estuaries, lagoons and mangrove stands are surrounded by palm and tropical flora filled valleys, with a notable abundance of birds and migratory waterfowl. Deer, mountain lions and peccary, among other animals, are found in the area.

And fishing is big in the region, commercial fishing (and shrimp farming), and of course sportfishing. Several species of protected sea turtles come to area beaches, and at sea among the many species found are billfish, humpback whales and white sharks.

Of historical significance, there are large oyster shell mounds near Teacapán that experts say were harvested by indigenous peoples living in the area as long as 4,000 years ago.

The investment by the Mexican government is to be around MX$5 billion pesos [US$465 million as of September 29], according to President Calderón (who made the announcement before the current worldwide financial crises came to a head, and the anticipated cutbacks). Calderón added that the aforementioned Mexican public sector investment should spark another US$6.638 billion in private national and international investments.

First stage construction costs will be some MX$1.5 billion [US$139 million as of 9/29], according to a Fonatur executive, that will be applied to 988 acres. That first phase is scheduled for completion in 2012.

The President went on to say that the mega-development will ultimately create 78,000 direct and indirect jobs. He also said estimates are that the Pacific Coast CIP will attract nearly 3 million tourists by the year 2025, and US$2.8 billion in foreign exchange.

Once completed the overall complex is to include four golf courses; two marinas for a total of 1,000 vessels; 44,200 hotel rooms (hotels, condominiums, etc.); a five mile beachfront walk; and a light railway. Plus the possibility of a new airport is in the offing (or the small airport at Teacapán could be expanded).

Based on what has been learned from other CIPs, such as Cancún, hotels will not be allowed right on the beach. The required buffer zone will be 300 meters. Hotels will also have a maximum height limit of four stories.

Urban zones and shopping areas will integrate open space shielded by law against construction, as will cultural centers and convention facilities.

Emphasis will be placed on nature and the environment, with 25 percent of the total 5,884 acres dedicated as natural protected areas, acreage that must be devoid of development. Furthermore, 109 acres of the surrounding wetland environs will be kept intact. Regarding the lagoon and marsh areas, visitors will be able to enjoy ecotourism activities via a series of canals and pathways.

As well, Pacific Coast CIP developments will have to meet marine and land area environmental standards and requisites that are included in the 2006 Marine Ecological Ordinance of the Gulf of California Program.

For workers, at least 5,000 homes will be built, along with schools, hospitals and facilities for needed community services.

Water will be provided through three separate systems, wastewater treatment plants will be built, and each hotel will have to install not only rainwater catchment receptacles, but too separate systems for rain and wastewater drainage and control.

On an interconnected regional basis, highway improvements are planned for the stretch of Highway 15 from Mazatlán south to Tepic, Nayarit (and on to Tequila and Guadalajara; or southwest to the Bahía de Banderas-Compostela Tourist Corridor and Puerto Vallarta). Too, the road inland from Mazatlán to Durango is to be improved, all arteries that will give area visitors, among others, easier access to tourist and cultural sites, neighboring cities, mountain regions, archeological zones, and indigenous communities.

And finally, for ocean going visitors, the Pacific Coast CIP is to be in harmony with Fonatur`s Sea of Cortez Plan, the system of Transient Marinas, and the so-called Nautical Staircase.

Barnard Thompson, editor of MexiData.info, has spent 50 years in Mexico and Latin America, providing multinational clients with actionable intelligence; country and political risk reporting and analysis; and business, lobbying, and problem resolution services.

Want to Buy in Mexico? Here's What You Need to Know
Michael Sasges - Westcoast Homes
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Buy smart, just as you would in Canada, former Vancouverite recommends.

In Mexico, the asking price of a new-construction home is one-quarter to one-third the asking price of a comparable Canadian home. But property ownership by foreigners is restricted. The weather is lovely, but... And the scenery is so different, but...

A recent Mexican real-estate seminar by Canada2Mexico Consulting provided an opportunity to investigate the dream and the reality. Providing the answers below is Victoria Pratt, a former Vancouverite now selling Mexican real estate.

Q: At which Canadians was the Canada2Mexico Consulting seminar aimed?

A: We are seeking Canadians interested in buying a vacation home or a second residence, which could be either a condo or a single-family dwelling, on the Costa Vallarta of Mexico.

This zone is anchored by Puerto Vallarta and the greater Bay of Banderas, and includes towns and resort destinations that Vancouverites may have heard of, such as Nuevo Vallarta, Sayulita and San Francisco in the states of Jalisco and Nayarit.

Q: If a holiday or retirement home in Canada, on average, costs X, what is the Mexican equivalent, or Y?

A: The cost of a resort residence in our area is generally one-third to one-quarter the cost in Canada. Good developments are ranging from about $150 US to $250 US per square foot, completely outfitted with quality ceramic or marble floors, granite countertops, integrated kitchen cabinets and good carpentry for closets and finishes.

I have a buyer who bought a three-bedroom condo in Mexico as a second home for $425,000 US and jokingly commented that he had paid $1.2 million US for his False Creek condo of smaller square footage. Both were bought in pre-construction and both are waterfront properties.

Some listing examples:

• An excellent pre-construction condo development on the El Tigre golf course offers large two-bedroom plans for less than $250,000 US and includes beach-club and health-club memberships and golf-club privileges.

• A three-bedroom oceanfront townhouse with about 2,500 square feet, and fully-furnished, is listed at $789,000 US.

• A two-bedroom oceanview condo of about 1,400 square feet, fully-furnished, is listed for $445,000 US.

The very highest end condos and homes with the finest finishes and most exclusive locations would be in the $300 to $400 per-square-foot range.

Q: The seminar news release says rising house prices, an unstable economy and increasingly expensive medical and health-care costs in Canada are changing the way many Canadians consider their future. Is the Mexican economy stable? What's stability?

A: As a resident of Mexico, I consider the Mexico economy as stable as the global economic conditions currently permit. I am not an economist so can't elaborate on what stability is in technical terms, but can give you my sense of the economic environment in my area.

The tax base is increasing - more people are paying taxes - and tourism has steadily grown over the past 10 years, along with tourism infrastructure in our area, as has real estate development and investment. We will be most affected on a national basis by declining oil prices, similar to the factors that are currently affecting Canada.

Q: Can gringos own real property in Mexico?

A: Yes, foreigners can own property fee simple in the non-restricted area, which is 50 kilometres beyond the ocean borders and 100 kilometres beyond the national borders.

The restricted zone was established within the Mexican constitution for sovereignty reasons. In the mid-1970s, an administrative mechanism was created to permit foreigners to own in the restricted zone by way of deeding the property within a trust.

The trusts are administered by the chartered banks of Mexico and ownership is registered with the secretary of foreign affairs. The owner is named as the first beneficiary of the trust and has all the rights of being able to sell, bequeath, rent or chattel the property in the same manner as a fee-simple regime.

Q: How easy or difficult is probate down there? Is there probate in the Napoleonic Code? Is there joint tenancy? Tenancy in common?

A: A lawyer and the Canadian consulate could be your resource to answer those technicalities.

A foreigner buying real estate in the area in which I sell is required to register title to the property under a trust, as it is located in the "restricted zone.'' The trust offers the advantage that one can name one's heirs as beneficiaries and the process for claim is as simple as proving identity and presenting a death certificate to the authorities in Mexico, notarized and legitimized, of course.

Q: The last half-dozen headlines atop Mexican dispatches published on the Vancouver Sun's news pages, and published before the seminar, suggest that Mexico is plagued by cultural and natural violence. People do ask, I am sure. What do you say?

A: The violence to which the headlines refer is all related to the crackdown on corruption and particularly drug trafficking that is the mandate of Mexico's presidente, Felipe Calderon. The violence is occurring between factions and in retaliation for policing and convictions, as the president implements his anti-corruption campaign.

My personal viewpoint is that there is a lot of money at stake and there is bound to be a power struggle, but it is infighting and the violence is not targeted at the public.

I know similar issues are affecting Vancouverites as one sees the reports and debate on rampant gun use, escalating gang violence and cross-border drug and gun-smuggling.

As residents of the Puerto Vallarta area, we have seen increased security personnel and we feel safe in that protection is there and, if one is not part of a criminal lifestyle, one should not be affected.

With regard to hurricanes, I chose the Costa Vallarta, as it is relatively safe from those perils, being protected by Mexico's third largest bay and having what sailors refer to as a meteorological trough off the coast and that buffets drastic weather. Hurricane risk is mainly in the Atlantic/Gulf/Caribbean area of Mexico and is seasonal.

Q: Please share with Sun readers one "horror story" and its lessons and one life-should-be-so-good story and its lessons.

A: In my 10 years as an owner and nine years living on the Costa Vallarta, I have not had any horror stories among my friends or clients that I could say are unique to Mexico.

There have been a couple of instances of medical emergencies for which my friends rave about the level of medical care. People are happily living their life of retirement, semi-retirement or on vacation.

One hears of folks making silly real-estate deals from time to time. I would say they have likely not acted in the manner they might at home and perhaps made snap decisions or have not consulted with credible professionals.

The lesson is to align yourself with reputable advisers and make an educated decision -- same as in Canada.

Q: Am I wrong to think that in September, when your cross-Canada meetings were announced, they were anything but extraordinary, and now are extraordinary, with so much wealth disappearing around the world?

A: Of the two conferences staged by Canada2Mexico, I have identified buyers for my area. The common denominators are that they have funds earmarked for a vacation-home purchase.

There is, however, warranted concern on where the dollar will settle, but it has not stopped them from actively looking with a purchase goal in mind.

Many developers are considering setting an advantageous peso exchange rate or publishing in pesos (rather than the traditional U.S.-dollar-based price lists) to give a sense of stability to both national and foreign buyers.

We have had, and continue to have, many positive factors as stimulants in our market and we certainly hope they will at least partially offset the effects of the economic crisis.

Victoria Pratt is a sales associate with Pacific Boutique Properties. Her Mexican telephone number is 011 52 1 322 779 9283. Her email address is vp(at)pacificboutiqueproperties.com