Tourism investment.

The Mexican government expects new tourism investment for this year to top US$2 billion, Reuters reported. The increase is attributed to foreign and local developers building golf courses, luxury spas and hotels at key travel destinations.

Tourism Secretary Rodolfo Elizondo said roughly 40 percent of the 2004 investment will be funneled to the Pacific Coast state of Guerrero and to the state of Quintana Roo on the Yucatan Peninsula. These states are home to the popular resorts of Acapulco and Cancun, respectively.

If the investment targets are met, it would signify a 20-percent increase over 2003, Reuters reported. The wire service also reported that tourists spent US$4.7 billion in Mexico between January and May, a 15-percent rise over the same period last year. Elizondo explained the increase was primarily due to a growing number of US tourists. The secretary also said tourism revenues are expected to account for 8 percent of gross domestic product this year.

Additionally, in mid-August, Elizondo's efforts to attract tourists from China bore fruit. China signed an accord certifying Mexico as a tourist destination. Cuba and Argentina are the only other American nations certified as tourist destinations by the Chinese government. China also has "certified" 25 European nations.

The deal facilitates travel to Mexico for Chinese citizens and streamlines visa procedures. It is estimated that 5 million Chinese tourists will potentially visit Mexico, with the restriction that any travel must be contracted via travel agents in both nations. Elizondo said the deal could boost tourism revenues by US$5 billion per year.

In conjunction with the accord, the Transportation Secretariat signed an agreement to establish direct flights between China and Mexico, which presently are non-existent. This will eliminate the need for Chinese travelers to obtain transit visas for the United States.