Many of the world’s most respected businesses and news organizations know that Mexico offers a wealth of opportunities,from its growing manufacturing sector to its booming tourism industry and rising real estate prices. As one of our clients recently said,“What’s not to love about Mexico?”
But don’t just take our word for it – here’s what the rest of the world has been saying about Mexico:
Barclay’s,Boston Consulting Group & Nomura Analysts
“We forecast that Mexico may overtake Brazil as the No. 1 economy in Latin America as early as 2022,on the back of strong growth in human capital and total productivity,” wrote Asia-based Nomura Group analysts in August of this year.
Barrons,Goldman Saks & NASDAQ
According to Barrons and NASDAQ,Goldman Sachs economist Jim O’Neill has been talking about Mexico,naming it the most attractive for investment out of the world’s 11 most popular emerging markets.
“Smaller emerging markets continue to gain popularity among investors,” writes Barrons. “Mexico has outperformed previous LatAm darling Brazil,with some of the same growth prospects but a lot less fanfare.”
The Wall Street Journal and Bloomberg Businessweek reported on Baskin-Robbins’ plans to open 25 new locations in Mexico throughout 2012,followed by at least 50 more stores over the next few years. As the world’s largest chain of ice cream specialty shops,Baskin-Robbins has partnered with BRICE,signing a new master licensing agreement with the company,which has more than 20 years of fast-food experience in Mexico.
“We are proud to represent Baskin-Robbins in Mexico as we look to expand its presence throughout the country,” stated Eduardo Diaz,who is chairman of BRICE. "We look forward to becoming a top destination in Mexico for friends and family to enjoy world class frozen treats.”
“If Mexico were a stock,now might be the time to buy. The country has been severely under-valued in recent years,” stated David A. Shirk of San Diego University’s Trans-Border Institute. “It is time to end excessively negative views of Mexico based on reports of drug violence.” Shirk goes on to urge readers to take a closer look at the extraordinary opportunity for investment Mexico presents.
According to Bloomberg and The Wall Street Journal,Mexico’s vehicle output is on track to reach a record number of more than 2.86 million units in 2012,and shows no signs of slowing down in the coming years.
Honda Motor Co. is currently building its first assembly plant here,Nissan Motor Co. is working to add a third factory located in Mexico real estate,Ford Motor Co. now manufactures its midsize sedans here and Audi will open its first luxury plant in Mexico by the year 2016… If that’s not enough to convince you that nation’s auto industry is growing by leaps and bounds,the Wall Street Journal reported that Toyota Motor Co. and Mazda Motor Corp. have recently agreed that Mazda will begin manufacturing cars for Toyota at its Mexico plant beginning in 2015.
Annual infrastructure spending in Mexico will rise by at least 56 percent in the coming years,according to a report by Bloomberg Businessweek. The numbers are expected to exceed $70 billion,as the Mexican federal government continues to pour additional funding into improving the country’s roads,ports,water supply and energy production capabilities.
Bloomberg Businessweek reported in mid-October that a U.S. Chamber of Commerce study of the world’s largest energy-consuming nations found Mexico to have the highest level of energy independence.
“They are a very resource-rich country with very low energy use per person,” shared Karen Harbart of the Chamber’s Institute for 21st Century Energy.
Mexico is on target to outperform Brazil in 2012 in economic growth. Since its peak in early 2011,Brazil has experienced a contracting GDP,while Mexico has grown more than 3 percent over the last 12 months and experienced a striking growth rate of more than 4.6 percent during the first quarter of 2012 alone.
In addition,Mexico real estate is positioned geographically close to the United States and benefits from an excellent relationship with what is still the world’s largest economy. According to Business Insider,this includes exporting more cars to the U.S. than Germany,Japan or Korea.
OnStar will expand to offer its integrated safety,security and navigation services in Chevrolet,Buick,GMC and Cadillac vehicles that are sold in Mexico beginning in 2013. This means Mexico will join an elite group,including the United States,Canada and China as one of the few countries where this luxury service is available.
“This expansion to Mexico will make OnStar the preeminent provider of automobile safety and security services in Latin America,” Mary Chan,president of Global Connected Consumer told CBS News.
Americans Who Own Mexico Real Estate Praise ‘Seguro Popular’ Universal Health Care
CBS affiliate KENS 5 in San Antonio recently reported that an increasing number of Americans who live in Mexico and own Mexico real estate are opting to enroll in the country’s Seguro Popular universal health care system.
“In the past,I’ve paid for medical care [in Mexico] and it’s been superb,” shared expat Rhonda Lerner.
According to the Harvard School of Public Health, “Evidence indicates that Seguro Popular is improving access to health services and reducing the prevalence of catastrophic and impoverishing health expenditures.”
Thanks to its stability and growth,Mexico is poised to become one of the world’s 10 largest economies by 2030,according to a recent statement by Renato Grandmont,executive director and chief investment officer of the Department of Wealth Management Latin America for Citigroup.
Mexico is expected to take this position regardless of whether or not planned structural reforms are actually carried out,thanks in large part to the country’s solid foundation. This has made it attractive for investments – both domestic and foreign – throughout the recent economic crisis and will keep Mexico growing at a steady pace throughout 2012 and 2013. It is also excellent news for the value of Mexico real estate,which is expected to increase dramatically in a number of locations over the coming months.
In an article published in late September of 2012,CNBC Senior Editor Mark Koba explores the emerging superpower’s exploding real estate market in Tulum,and talks with Investment Properties Mexico to learn more about Mexico real estate and what this seaside town on Mexico’s Riviera Maya has to offer.
“We weren’t out to buy land,but after talking to [Investment Properties Mexico],we decided to do it,” Kathy Brady,61,told CNBC. “[They] made it easy for us.”
Although the land is covered in jungle overgrowth,it has already realized an impressive rate of appreciation of more than 12 percent.
“They’re building an airport nearby,so it should go up even higher,and then we can sell it for development,” Brady shares. “Where else can you get that type of return these days?”
CNBC notes that Mexico “has been an inviting location for investors” over the last two years,proving that it has what it takes to be recognized as one of the world’s most impressive emerging markets.
“It’s pretty dramatic,” said S&P Capital IQ international equity strategist Alex Young of Mexico’s performance. “Mexico has been crushing Brazil for a long time.”
In addition,Mexico boasts a well-diversified economy,solid GDP growth,competitive labor costs,favorable inflation rates and low unemployment numbers. This recipe for success is furthered by Mexico’s strong central bank and stable currency,as well as the nation’s impressive federal balance sheet and low debt-to-GDP ratio,coupled with large foreign exchange reserves.
“Mexico,not Brazil,say analysts,is the export engine of Latin America,” writes CNBC. “Companies that previously outsourced work to China are now relocating to Mexico.”
CNBC reported this week that Mexico’s incoming president Enrique Pena Nieto has an agenda that is expected to positively transform the country’s energy sector,labor laws and tax base.
According to CNBC,the reforms would open Pemex to private sector investment and the company could even be listed as a publicly traded stock at some point in the future. This is predicted to be excellent news for U.S. investors,who will enjoy access to investing in Mexico’s growing energy sector through new investment vehicles that are already in development by US investment firms such as Morgan Stanley and Goldman Sachs.
“If he succeeds,it would have huge beneficial effects for Mexico’s economy,” Shannon O’Neil,senior fellow for Latin American studies at the Council on Foreign Relations,told CNBC. “The most obvious is an increase in foreign direct investment in the energy sector itself. But the benefits would spread to infrastructure more broadly,to services,and would lower the energy costs for companies in general – improving competitiveness.”
“Mexico has a large,stable and growing economy,currently the 14th largest in the world and,according to Goldman Sachs,will be the fifth largest economy by 2050,” writes CNBC.
“Mexican startups raised $469 million dollars in 25 projects in 2011 through these venture capital funds,compared to the $211 million dollars raised through 19 deals in 2010,” writes CNBC. “In 2012,the Latin American Venture Capital Association estimates that venture capital firms will invest at least $1 billion in more than 30 deals.”
“For many years,Mexico has been doing all it can to attract investors and has reached a high level of sophistication,” Jose Manuel Ramirez of tax audit firm KPMG told CNBC. “There are really a lot of great possibilities here.”
CNBC reports that Mexico is now one of the world’s leading export countries and a major manufacturing hub. Under NAFTA,almost 86 percent of Mexico’s exports and 50 percent of its imports are traded with the U.S. and Canada. In addition,Mexico is the largest North American auto-producing nation,having recently surpassed the U.S. and Canada. Mexico’s economic growth shows no signs of slowing down,as foreign investment dollars continue to pour into the country.
“With lower shipping costs and increasingly competitive wages,Mexico is enjoying a manufacturing boom,” writes CNBC. “It is attracting billions of dollars in foreign investment from firms that are building factories to supply the North American market – a concept known as reshoring.”
“The influx shows no signs of abating,” writes CNBC. “Foreign direct investment (FDI) in Mexico reached $19.4 billion in 2011 – with nearly half of that total destined for the manufacturing sector,according to the Mexican Ministry of the economy."
Conde Nast Traveler
According to Condé Nast,“Mérida’s very plan—a numerical grid of long,straight avenues lined with trees or storefronts and dotted with green plazas—is walkable and friendly. The city has become a magnet for Mexican and expatriate artists and culture-keepers,the kind of people one expects to be attracted to urban jitter or radical design.”
According to Condé Nast,Mérida is also one of the safest towns in Mexico,with no connections to the drug wars that have been found thousands of miles away along the country’s northern border. Amazingly,the Maya still make up more than 50 percent of the Yucatán’s population. These friendly,easygoing people are a joy to mingle with while in Mérida and they also add much to the colorful culture of the entire region.
“There is a real-estate boom of sorts going on here,with outsiders from Mexico and the United States and Europe buying up old town houses and remodeling them,” writes Condé Nast. “Beautiful houses are on the market cheap,many for less than $100,000.”
The Los Angeles Times and the Wall Street Journal recently reported on Delta Air Lines,which has invested $65 million in Mexican airline carrier Grupo Aeromexico’s capital stock.
“This investment creates the leading airline alliance between Mexico and the United States,” writes the WSJ. “The carriers collectively operate 93 codeshare flights offering greater benefits to the more than five million passengers they serve per year.”
The LA Times also covered the story,writing that Delta now owns around 4 percent of Aeromexico,which is a first for any Mexican airline. And Aeromexico is not just any airline. As the largest carrier in Mexico,this merger is significant,especially since Delta is the second-largest carrier in the United States.
According to a new article posted by Spanish Railway News on July 31st,the Spanish-owned railway corporation FEVE “will collaborate in the implementation of a new metropolitan railway in Mexico,” located in the heart of Riviera Maya real estate. The article states that the new tram train will link a variety of destinations throughout the Riviera Maya,which is home to Mexico’s most popular tourism areas.
Earlier this month,Fox News also wrote of the possibilities rail travel would bring,stating,"The region is considered of strategic importance to Mexico’s economy.”
Forbes recently wrote about the Cancun International Airport and its owner Grupo Aeroportuario Del Sureste (NYSE: ASR),calling the company “a great investment opportunity.” Why? In part because of the new Dragon Mart Cancun,which is currently under construction to the tune of a $1.5 billion investment by Chinamex,and is scheduled to open later this year.
“Once the international traveler checks their bags,they often have three hours to kill before getting on their plane,” shared Randy McDuff,who is one of the world’s most successful investors and was featured last year in the book The Warren Buffets Next Door. “The airport gets a piece of each and every dollar spent.”
“In 2011,Cancun International operating income rose by 19.7 percent on a 4.7 percent increase in passenger traffic,” stated McDuff. “In the first quarter of 2012,Cancun International traffic increased 9.6 percent year-on-year. Since the Dragon Mart Cancun project is literally 10 times bigger than most English speaking analysts believe,cash flow and earnings could easily surprise to the upside.”
“Mexico is currently the 12th largest economy in the world. Brazil is around No. 6,” writes Kenneth Rapoza of Forbes. “Mexico’s GDP last year was $1.65 trillion,up from $1.59 trillion in 2010 and $1.51 trillion in 2009. By comparison,Brazil’s GDP in 2011 was $2.2 trillion.”
Furthermore,Mexico’s currency is also expected to strengthen along with its economy. A stronger peso is expected to provide some of Mexico’s major corporations in their efforts to engage in acquisitions and joint ventures abroad.
“Mexico is not some flavor-of-the-month economy,” stated Heiner Skaliks,fund manager for the Strategic Latin America Fund (SLTAX). “One of the things we like about Mexico is that you can get big,liquid names that have a significant portion of their revenue stream from other parts of the world. Coca Cola’s subsidiary is listed in Mexico and 60 percent of their revenues come from South America. A lot of the companies are multinational in nature.”
In a recent installment of Forbes’ “Following the Money Trail” series,Mexico’s booming economy was the focus. Specifically,Citigroup CEO Vikram Pandit’s comments about Mexico as a leader among the emerging markets that have contributed to some good-looking financial results recently for the bank,which is the third largest in the U.S. “We think that Mexico is extremely well-poised for growth,” Pandit said on a conference call.
“The biggest evidence of Mexico’s success can be seen in the number of Mexicans who are staying or returning to Mexico,” writes Forbes. “As Calderon recently noted in ‘The Wall Street Journal,’ the net rate of migration of Mexican workers toward the United States has recently been zero. ‘We are in the middle of a rebirth,’ he said.”
“Cancun is nowhere near Mexico’s border with the U.S.; in fact,Cancun is located on the Yucatan Peninsula and the distance from Texas to Cancun is equidistant from Cancun to Miami,” writes Forbes. “Mexico is a huge country,so sizable that every region offers a variety of climates,cultures,culinary distinctions,activities and its own ancient history.”
Fox News recently named Puerto Vallarta “Mexico’s best beach town,” citing its gorgeous natural scenery and charming old-town feel as major reasons travelers from around the world keep coming back. This is bound to be great news for Puerto Vallarta real estate,which give buyers the opportunity to take full advantage of everything this fantastic region has to offer.
Fox News reported this October that Mexico has been ranked as the world’s fourth best investment destination by German magazine WirtschaftsWoche,following a study to locate world economies with the highest potential. According to the report,the magazine advised investors who are looking for “long-term success to position themselves in second-rung markets like […] Mexico.”
According to Fox News,the study took a wide range of variables into account in order to reach its conclusions,including “basic macroeconomic indicators,a balance of trade figures and political stability factors,and evaluated various characteristics of the different markets.” This broad approach ensures the highest degree of accuracy possible and is encouraging for investors who have been searching for opportunities amid today’s uncertain economic times.
According to a new report released by Mexico’s Tourism Secretary,Gloria Guevara,the number of foreign travelers entering Mexico real estate between January and July of this year rose by six percent compared to the same time period in 2011 and Guevara expects last year’s record of 23.4 million visitors to be surpassed by year’s end.
“We’re estimating that we’ll grow between 5 percent and 9 percent in 2012,” Guevara stated according to Fox News in an appearance at a tourism conference in Quito. “We have 2,500 municipalities,according to figures from the government secretary,and the tourists go to destinations that are tranquil. They’re at peace.”
According to an article published in late August by Fox News,an increasing number of young engineers,journalists,sound technicians,advertising professionals and graduates in business administration have been leaving Spain for job opportunities in Mexico.
“Many qualified Spaniards in search of a better future are setting their sights on Mexico,whose economic prospects remain positive despite the global slowdown,” writes Fox News. “Mexico offers them a promising future.”
“The Mexican labor market offers a lot of opportunities in a country where a dynamic private business sector continues to spur the country’s economic growth,” shared OCC public relations director Fernando Calderon.
GE wind turbines will soon power the new Comexhidro wind farm in Santa Catarina,Mexico,according to a report by the Wall Street Journal,with eight 2.75-megawatt turbines creating clean energy to provide public lighting. This development brings Mexico closer to realizing its wind energy potential,which the Mexican Wind Energy Association estimates to be at more than 50,000 megawatts.
GE announced the new project at its recent Mexico Wind Energy Forum,which brought civic and industry leaders together to collaborate about the many opportunities and potential surrounding wind power throughout Mexico. GE employs more than 4,600 people in Mexico and will soon generate around 2,000-megawatts of wind energy,powering 22 million households throughout the country.
The Globe & Mail
“Mexico is the second-best performing major market in the world so far this year,” reports the UK’s Globe & Mail. “The benchmark IPC has soared 23.6 percent in U.S. dollar terms,as investors have become increasingly convinced that cartel violence can’t derail Mexico’s growth.”
IBM & Reuters
IBM Cuts Major Deal with Mexico’s Cemex
In the biggest deal ever to occur between any Mexican company and U.S. computer giant IBM,Reuters reports that Mexico’s largest cement manufacturer Cemex will soon begin outsourcing jobs to the technology firm. The deal is expected to save Cemex more than $1 billion over the next decade and will increase the company’s financial stability while cutting costs.
According to Bob Hoey,who is IBM’s general manager for integrated technology services,this contract marks the most significant outsourcing deal ever to take place between IBM and a Mexican company and is one of the largest of its kind for the tech giant in all of Latin America.
Investor’s Business Daily
According to a report by Investor’s Business Daily,Mexico now offers much greater value in terms of wage advantage than China,which has driven its economic growth in recent months. In fact,according the Boston Consulting Group,Mexico’s wage advantage will hit an impressive $1.75 by as early as 2015,an impressive margin that will serve to attract even more foreign direct investment.
“Fast-rising Chinese labor costs are prompting companies to reshore production back to Mexico and the U.S.,where transportation and other logistical costs are lower,” writes Investor’s Business Daily. “Mexico is going to be a big winner in reshoring.”
LA Times,Travel Weekly & Elite Traveler
Resort Hosts Riviera Maya Sea Turtle Conservation Event
The LA Times,Travel Weekly and Elite Traveler reported that the Riviera Maya played host to an important sea turtle conservation event to benefit this endangered species,held from June 21 through 24th. The event was held at the Grand Luxxe Riviera Maya resort,which is situated about a half hour south of the Cancun International Airport.
According to Travel Weekly,for the next three months,the turtles will be monitored in what has become known as the Tour de Turtles,which tracks the movements of 15 different species of sea turtles,recording both their nesting places and where they forage for food. The turtle that has traveled the furthest at the end of the three-month period is announced the winner and their movements can be followed online.
A recent article by leading UK financial magazine MoneyWeek discusses the benefits of investing in Mexico as a way to profit from the current economic slowdown in China. Out of the four emerging markets that Goldman Sachs recently named for offering the hottest new investment opportunities – Mexico,Indonesia,South Korea and Turkey,or MIST – MoneyWeek says Mexico is the number one choice.
“Mexico’s finances are in good shape,” writes MoneyWeek. “Net government debt is only 35 percent of the GDP and private debt is low.”
According to a recent article in Money Week magazine,the current economic boom in Mexico real estate is backed by strong systemic structures,such as NAFTA,which are laying the groundwork for even more growth to come. Also,the peso has grown significantly stronger and Mexico’s substantial workforce helps to keep inflation down,which in turn makes the price of goods produced in Mexico even more attractive in other parts of the world.
“The gap between Chinese and Mexican wages has narrowed sharply from 260 percent in 2006 to just 10 percent today,” states Sergio Martin of British multinational banking and financial services company HSBC. “Taking into account travel costs,Mexican factories now beat Chinese ones on cost for many goods. That explains why 12.5 percent of America’s imports currently come from Mexico. That’s the highest in a decade,and second only to Canada.”
Morgan Stanley & Bloomberg
A report from Bloomberg Buisinessweek announced that Morgan Stanley plans to invest between $35 million and $110 million in each of Mexico’s top energy companies. The decision comes after the state-owned oil producer Petroleos Mexicanos (Pemex) announced that it will open up the industry to private capital and will boost spending in this sector to record numbers for Mexico.
“We already have a pipeline of potential projects and should be able to announce one or two investments in a couple months,” Reyes Heroles stated. “The large size of Mexico’s private industry in the energy sector is a very well kept secret,and it’s poised to keep growing.”
NASDAQ & Zacks
Mexico has become one of the world’s most talked about emerging markets,ousting Brazil as the number one choice in Latin America for investors and providing what NASDAQ calls a “safe haven” for investors.
“The great Bill Gross of PIMCO recommended buying Mexican sovereign debt earlier this summer,” writes NASDAQ. “Jim O’Neill of Goldman Sachs revealed how his new MIST countries – Mexico,Indonesia,South Korea,Turkey – are stomping the tired old BRICs in market returns. The Financial Times gushed a few days ago over new production records for Mexico’s auto industry.”
In addition,the widely respected Zacks Investment Research firm is encouraging investors to consider the iShares MSCI Mexico Investable Market Index,an ETF that consists of stocks that are traded primarily on the Mexican Stock Exchange. Since its launch in 1996,the fund has accumulated more than $1.2 billion in assets under management. The fund’s top sectors are consumer staples,telecom and materials.
“Growing consumer demand in the country suggests that the fund will benefit from its heavy exposure to consumer staples and telecom sectors,” writes Zacks. “The ETF has gone up 17.02 percent year-to-date.”
The New York Times
A travel article in The New York Times highlights the increased number of tourists that have been heading to Mexico,and discusses the ongoing efforts by the Mexico Tourism Board to attract non-US visitors in 2012 and beyond. In 2011 Mexico received 22.67 million visitors from around the world,which broke the previous record from 2008.
Although there are still more tourists from the United States heading to Mexico for vacation than from any other destination,last year’s increase was also spurred on by a sharp increase in visitors from other countries around the world,including Europe and Russia.
Number of UK Tourists in Mexico Growing
The Sacramento Bee reported last week that the number of English tourists heading to Mexico is set to increase dramatically over the coming months. According to the report,some of the UK’s leading travel companies and airlines have indicated that the frequency of travel to Mexico is expected to rise.
“Virgin Atlantic confirmed that from April 2013,the airline will increase by 50 percent the number of seats on its London-Cancun route,considered to be one of the most successful for the British company,” writes the Sacramento Bee. “Virgin Atlantic is also evaluating the opening of new flights to other Mexican tourist destinations.”
San Francisco Chronicle
The San Francisco Chronicle recently reported on the huge boost Mexico’s Riviera Maya region has received from the end of the Mayan calendar on Dec. 21 of 2012. To celebrate this monumental event,the Mexican government has created the Mundo Maya campaign,which has involved a variety of different celebrations throughout the year,found all over the region.
As the date approaches,the festivities are becoming more charged and even more visitors are making their way to the Mexican Caribbean to enjoy everything that Riviera Maya real estate has to offer. The Chronicle reports that an estimated 500 Maya-themed events are scheduled to take place between now and Dec. 21,which can make it overwhelming for travelers planning a trip to decide what to attend.
In a recent online article Shape Magazine recognized Tulum and Cancun for having “the most beautiful beaches in the world,” touting the sun and sand of these two destinations along Mexico’s Riviera Maya as excellent motivation to get bikini ready for summer.
“Cancun is a sun-kissed paradise that offers everything from horseback riding on the beach to canoeing to snorkeling to playing with dolphins,” writes Shape columnist Angela Nuñez
Travel Age West
According to a recent article by Travel Age West magazine,a leader in the U.S. travel industry,Mexico’s Riviera Maya is in the midst of an impressive tourism wave. According to the article,Dario Flota Ocampo of the Riviera Maya Destination Marketing Office said that although the region has always been a popular destination for travelers,2012 is poised to be yet another record-breaking year for tourism.
“Of the 10.2 million international travelers visiting Mexico in 2011,28.4 percent traveled to the Riviera Maya,” writes Mark Rogers of Travel Age West. “Last year the region shattered tourism records by welcoming more than 3.6 million visitors. This represented a 7 percent increase in overall visitation from 2010 and an increase of more than 200 percent from the year 2000.”
TripAdvisor & The Wall Street Journal’s MarketWatch
The Wall Street Journal and Real Resorts reported that the Gran Porto Real Playa del Carmen has received TripAdvisor’s important distinction,being named a Resort of Excellence for its outstanding customer service. TripAdvisor’s Certificate of Excellence is only bestowed upon the best resorts and is based on positive feedback from visitors.
The accolade was designed to honor outstanding performance worldwide in the hospitality industry and is only given to establishments that receive consistent high ratings by customers on TripAdvisor.com. Only around 10 percent of accommodations that are listed on TripAdvisor ever receive this award,which requires businesses to maintain an overall customer rating of at least four out of five. The award also takes into account the overall volume of reviews received every year.
After visitors voted,popular travel website TripAdvisor awarded Mexico’s Xplor Park,which is situated in the heart of Riviera Maya real estate,with its Certificate of Excellence. The award came this June,after the Xplor Park was found to have exceeded travelers’ expectations in both 2011 and 2012.
This is the first time the destination has received the award,which is “a very important means to measure visitors’ opinions,” according to TripAdvisor.
TripAdvisor is rolling out its Traveler’s Choice Awards for 2012,and on this year’s list of the Top 25 Beach Destinations in the World,Mexico has snagged four spots. TripAdvisor is one of the world’s largest travel sites and selected the top 25 beaches out of 181 locations worldwide. What makes these awards so special is that actual travelers from around the world select the winners by submitting reviews and opinions throughout the year.
The destinations in Mexico real estate that made the top 25 list in 2012 include Tulum,Cancun and Playa del Carmen on the Riviera Maya’s Caribbean coast,and Cabo San Lucas on the Baja Peninsula’s Pacific Ocean.
The Wall Street Journal,Bloomberg & Boston Consulting Group
New reports by Bloomberg and the Wall Street Journal prove that the story of Mexico’s auto industry is only beginning to unfold. According to Bloomberg,Mexico’s vehicle output is on track to reach a record number of more than 2.86 million units in 2012,and shows no signs of slowing down in the coming years.
Honda Motor Co. is currently building its first assembly plant here,Nissan Motor Co. is working to add a third factory located in Mexico real estate,Ford Motor Co. now manufactures its midsize sedans here and Audi will open its first luxury plant in Mexico by the year 2016. If that’s not enough to convince you that nation’s auto industry is growing by leaps and bounds,the Wall Street Journal reported that Toyota Motor Co. and Mazda Motor Corp. have recently agreed that Mazda will begin manufacturing cars for Toyota at its Mexico plant beginning in 2015.
“With the investment amounting to $500 million,Mazda’s Mexico plant is slated to kick off operations from fiscal year 2013 in April of next year,” the WSJ reports. “The deal will help to strengthen Toyota’s lineup in North America,[and] Mazda will also benefit from more efficient productivity and profitability.”
Rising wages combined with slowing growth in China have given Mexico a chance to emerge as a major player on the international stage. The Boston Consulting Group told the Wall Street Journal that Mexico is already a less expensive place to make an array of products for the U.S. market and China’s average manufacturing wage topped Mexico’s this year,especially after accounting for different levels of productivity.
“Mexican workers typically produce more per hour than Chinese workers,” writes the Wall Street Journal. “And its proximity to the U.S. means companies can ship faster and often at a lower cost to American consumers.”
The Washington Post
The rapidly growing middle class in Mexico is fast becoming the country’s largest demographic. This shift is redefining the difference between rich and poor in Mexico,and its impact is sure to reach the United States and beyond.
The strength of Mexico’s middle class is evident in the growing popularity of Wal-Marts throughout the country,as well as in the rising number of new cars on the streets and the increased use of Banamex credit cards. Also,instead of worrying about how to feed their children,the article reports,they are concerned about what their children are eating and that it might be too much.
Yahoo! Finance & ASUR
Yahoo! Finance: New Flights to Mexico,Air Traffic Increases in 2012
Mexico’s largest airport operator,ASUR recently reported that flights have increased dramatically during the first have of 2012,with the company’s total passenger traffic up 12.5 percent on average this June. Specifically,Cancun experienced an impressive 13.4 percent gain on the year,while Cozumel jumped by 21 percent and Merida had an increase of 23.5 percent. This growing interest among international travelers is a great sign for Mexico real estate,particularly in the Riviera Maya.
Travelers from the U.S. and Canada heading to Mexico have more flights to choose from than ever before,with a wide variety of dates and times available,as well as excellent pricing options. In fact,it is estimated that at least 1,500 new flights will be opening up during the latter part of 2012,including from international destinations such as Munich,Paris and Panama.
Mexico has been on fire recently in the news,as evidenced by the latest report from Zacks,which begs the question,“Can Mexico Become the New China?” Not only is Mexico real estate hotter than ever,but also as the analysts at Zacks point out,Mexico’s manufacturing sector has been giving China some fierce competition over the last year or so,with no signs of slowing down anytime soon.
“China’s average manufacturing wages,when adjusted for productivity,are above those in Mexico now,” writes Zacks,citing a study conducted by respected Boston Consulting Group (BCG). “BCG forecasts that by 2015,the fully loaded cost of hiring Chinese workers will be 25 percent higher than the cost of hiring Mexican workers.”
See our previous article: Look Who's Talking About Mexico Real Estate. click here