Mexico a new world of Tourism investment. (Special Advertising Feature).

Already one of the world's most popular tourist destinations, Mexico offers a wealth of opportunities for private investment. Led by the National Trust Fund for Tourism Development (Fonatur), a number of new developments are on the drawing boards that will greatly expand Mexico's tourism offerings.

"With renewed vigor, we are beginning a new chapter in planned tourism in Mexico," says John McCarthy, director general, Fonatur, which leads the development of tourism by planning new offerings, encouraging private investment, coordinating government activities, and supporting private tourism companies.

"To this end, we have come up with new and diverse tourist business options that meet the demands of a highly competitive world market," adds McCarthy, citing five major new projects:

* Nautical Ladder. A nautical-oriented development in the states of Baja California, Baja California Sur, Sonora and Sinaloa that will include the construction of 22,850 slips, designed to attract yachters from the southern United States.

* Mayan Coast. A real-estate tourism development in the state of Quintana Roo, where plans call for build 9,500 hotel rooms, a marina with 130 slips and five 18-hole golf courses for high-level tourism.

* Mayan Riviera. A renovation project in the south of Cancun that aims to attract mainly European and Latin American tourists. It includes the construction of 67,666 hotel rooms and 6,500 slips.

* Copper Canyons in Chihuahua. A low ecological impact project focused on adventure tourism, with 3,490 rooms planned.

* Palenque -- Agua Azul Waterfall. A development in the state of Chiapas that comprises the archeological sites of Palenque, Bonampak and Yaxchilan, and the natural areas of Agua Azul and Playas de Catazajan. The project, which includes 8,350 hotel rooms, is aimed at attracting cultural, adventure and ecological tourists.

Tourism is a national priority for Mexico, which provides all necessary facilities and legal guarantees for international investment. Mexico's regulatory framework supports 100 percent foreign ownership in most economic activities, including real estate. Mexico's foreign investment law provides legal guarantees and affords certainty to Mexican and foreign investors, while simplifying the administrative procedures for registering foreign investments.

In addition to international trade agreements, the free repatriation of earnings, royalties, dividends and interest, and reciprocal investment promotion agreements have been key factors in attracting greater investment in Mexico's tourism sector. In 2002, about 30 percent of the nation's US$1.519 billion in private investment came from abroad.

Mexico is one of the world's most stable, open and deregulated emerging economies with the highest federal reserves on record, US$51 billion, and an annual inflation rate of 6.24 percent, as of January 2003. The three most important rating agencies in the world granted investment grade ratings to Mexico's long-term sovereign debt in foreign currency.

In the tourism sector, Mexico ranks first in Latin America and eighth in the world, with 19.8 million visitor arrivals in 2002--about the same as Canada and Germany, and virtually unchanged from 2001. However, cruise arrivals increased 43.6 percent last year, reflecting the desire of many North Americans to vacation closer to home. Tourist expenditures totaled US$8.8 billion in 2002, 5.4 percent more than in 2001, and the highest in Latin America.

McCarthy notes that Mexico's competitive advantages for leisure and business visitors include:

* A wide range of attractions, including the sun, sand and other attractions of Mexico's beachfront resorts to historic colonial towns, museums and ecological destinations that enhance the nation's great biodiversity.

* A geographic location that caters to visitors from North America and the rest of the hemisphere with convenient air service to major leisure and business destinations.

* A wide and diversified supply of tourist services, with continuing private investment throughout this dynamic sector.

* Systematic promotion of Mexico aboard; for instance, the Mexican Tourism Promotion Board will invest US$73 million in 2003.

* Government support for business tourism, including zero VAT for foreign conventions and meetings held in Mexico, starting in 2004.

Another of Mexico's advantages is visitor security--as indicated by the market's stability in 2002 despite the worldwide impact of the attacks of September 11, 2001. A recent poll by Conde Nast Traveler indicated that North Americans consider safety and security, as well as value for money, in choosing their leisure destinations. In this regard, 89 percent of subscribers polled by the magazine indicated that Mexico is a safe country for traveling and 79 percent said Mexico provides good value to tourists.

Fonatur and its five integrally planned resorts - Cancun, Los Cabos, Ixtapa, Huatulco y Loreto - have helped to multiply foreign tourism in Mexico by a factor of six. Together they contain 245 hotels and more than 36,800 rooms. These destinations are master planned to ensure consistent development, and benefit from annual public works and maintenance operations carried out by Fonatur. "These resorts come top of the list the world over when Mexico's competitive and high-quality tourism industry is mentioned," says McCarthy. These destinations now represent 40 percent of Mexico's five-star hotels, receive 46 percent of foreign tourists that visit Mexico, and generate 54 percent of Mexico's foreign exchange earnings from tourism.

Recent Fonatur projects include Puerto Cancun, a 623-acre development with golf course, marina, beach clubs, hotel zone and residential zone, and Puerto Los Cabos, a 1,895-acred development with marina, two golf courses, hotel and residential lots, beach clubs and parks. Negotiations to develop another six large-scale projects in Loreto, Cancun, and Los Cabos are now in an advanced stage.

For more than 27 years, Fonatur has made a major contribution to the Mexican tourism industry. Today, Fonatur can act as a joint venture partner in private tourism development. "In Fonatur, you will find a dedicated and reliable team of high experienced tourism industry specialists who share the philosophy of successful businessmen and strive to create greater and better development opportunities for the benefit of the entire nation," says McCarthy.

For more information, visit www.fonatur.gob.mx.