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Playa del Carmen Is Ideal For Business Startups

12 August, 2015

Playa del Carmen is a city that has a strong economy that has given birth to a substantial number of companies that boast an annual growth rate of 5 percent over the last 10 years. In addition,new Playa businesses have an average of at least five employees each,according to a report by consultant agency Aregional.

Cities like Manzanillo,Puerto Vallarta,Playa del Carmen and Los Cabos all form a group of cities in Mexico with more than 100,000 but less than 250,000 inhabitants. In addition,each of these destinations have a large number of economic units (or new companies) that have been established over the past 10 years,with a growth rate of 5 percent annually. In fact,these smaller cities have even reached levels of development that are much higher than larger metropolitan areas like Toluca and Leon,among others,and also above Merida and Cancun,which recorded a growth rate of 4 percent. 

Although the parameters that are measured at the local level are different from those used by Aregional,the city treasurer of Playa del Carmen – Gabriel Castro Cardenas – said that Playa is a platform for commercial success that has grown substantially over the last four years. During this period,Playa has increased the number of open shops dramatically. in 2012,a record three new businesses opened daily for every two closings,and in 2015 this number has has increased to 4.5 openings per 2.8 closures.

Employment Generation

Playa del Carmen is also becoming well known for creating new jobs. On average,each business – especially the micro,small and medium-sized enterprises – have increased annually by five workers,which is on par with manufacturing cities like Juarez,Chihuahua and Tijuana,among others. 

"Over the past 10 years,the fastest growing cities in generating new companies were mainly cities of more than 250,000 inhabitants,including Guadalajara,Queretaro,San Francisco del Rincon,Tehuacan and Toluca,” the Aregional report reveals. “But certain cities in metropolitan areas between 100,000 and 250,000 inhabitants (such as Puerto Vallarta,Playa del Carmen and Los Cabos) are also included in this group.” 

One peculiarity is that,according Aregional,growth in Playa del Carmen is not only reflected in the number of companies or their employees,but in that fact that companies in Playa generally recorded higher earnings thanks to the continual influx of tourism dollars. This economic prosperity is even reflected in the income of the workers in Playa del Carmen,because according to the State Employment Service the average monthly salary in the city is 6,700 pesos,which is the highest in the state of Quintana Roo,even above Cancun,which logs in at 5,800 pesos monthly.

Combined,all of these characteristics have helped Playa achieve a strong level of economic competitiveness,according to the Index of Systemic Competitiveness of Mexican cities (ICSar-Cities) which Aregional released in 2013. Back then,Playa del Carmen was already ranked 11th among 99 classified areas,which include the highest levels of social welfare.