MONTERREY'S UNIVERSAL FORUM OF CULTURES: A HIT LOCALLY, A

UNCLAS SECTION 01 OF 03 MONTERREY 000067 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: SCUL ETRD ECON PGOV MX SUBJECT: MONTERREY'S UNIVERSAL FORUM OF CULTURES: A HIT LOCALLY, A BLIP GLOBALLY REF: A) 07 MONTERREY 783, B) 07 MONTERREY 576 MONTERREY 00000067 001.2 OF 003 (SBU) Summary. A major goal of Nuevo Leon Governor Natividad Gonzalez Paras has been to change Monterrey from an industrial town to a center of culture and knowledge. As part of this transformation, the Governor arranged for Monterrey to host the 2nd Universal Forum of Cultures, a global event taking place every three years with the purpose of bringing together people from all over the world to celebrate cultural diversity and discuss the most pressing issues affecting the world today. The Forum was held from September 20 to December 8, 2007, with over 1,000 events in and around Monterrey focusing on the themes of peace, sustainability, cultural diversity and knowledge. The Monterrey Forum was mired in controversy early on due to mismanagement and expenditures that greatly exceeded the original budget. State officials promised that the Forum would bring the city increased revenues in tourism and commerce with an expected number of two million visitors. In the end, the Forum drew twice that, with over four million visitors, but the visitors were primarily local and regional. Further, the Forum has left new civic infrastructure in place: a riverwalk, museums and other attractions. However, it is striking that the entire effort was focused on holding the Forum, and little thought was given to the possible use of the Forum structures after closure. It remains to be seen whether the Forum will have any long-term benefits for Monterrey in terms of increased tourism or economic development. End Summary. ¶2. (U) The concept of the Universal Forum of Cultures started with the idea of creating an intellectual and cultural dynamic event of global proportion, with UNESCO becoming an official partner to this effort in 1999. In 2004, the first Universal Forum of Cultures was held in Barcelona, Spain. Thereafter, Monterrey was chosen as the site for the second Forum, beating out other cities, such as Naples, Italy and Valparaiso, Chile. Monterrey's Version of the Forum -------------- ¶3. (U) Monterrey pushed hard to host the 2nd Forum. It became a pet project of Governor Natividad Gonzalez, in line with his goal of transforming Monterrey into an 'International City of Knowledge' (reftels A and B). As such, whereas the Barcelona Forum dealt with the themes of peace, sustainability, and cultural diversity, Monterrey added a fourth theme of knowledge. It was also decided that entrance to the parks and to most events would be free to increase accessibility for all people. Monterrey chose Fundidora Park, in the heart of the city, as the main Forum site. ¶4. (U) The Monterrey Forum was open for 80 days, and the program consisted of dialogues, exhibitions and cultural expressions. In all, 800 dialogues on 12 topics encompassing the main Forum themes were held. The dialogues featured 350 speakers from five continents and were intended to be interactive. For the exhibitions, sixteen were organized in various parks, museums and exhibit halls. They included ones on Frida Kahlo, Buddha, American Immigration, and Isis and the Plumed Serpent (a collection of ancient Egyptian and pre-hispanic Mexican artifacts). The Cultural Expressions consisted of numerous concerts and cultural performances. In all, the Forum brought to Monterrey 2,300 artists representing 77 countries and 450 international figures, such as Rigoberta Menchu and Mario Vargas Llosa. Big Promises Followed by Low Expectations -------------- -------------- ¶5. (U) The promoters of the Monterrey Forum expected two million visitors, and although the main targeted audience was youth and university students, Forum officials and local politicians promised the Forum would draw hundreds of thousands of international visitors as well (reftel B). They also promised substantial local economic benefits due to increased hotel and restaurant sales and pledged that the Forum would help transform Monterrey's international image. ¶6. (SBU) During the run-up to the event, local critics sniped about the event's expense and alleged mismanagement of public funds. The Forum was budgeted for US$270 million, including US$90 million in federal funds, including new infrastructure to the tune of US$130 million. Yet early on, controversy brewed as word of mismanagement and wasteful expenditures spread (reftel B). Gaston Melo Medina, the first Forum administrator, was accused of, and largely perceived to be, guilty of poor management at best and outright corruption at worst. Local National Action Party (PAN) delegates brought a petition before MONTERREY 00000067 002.2 OF 003 the Public Ministry against him and pushed for an audit, but this was rejected by the PRI-led state government. On November 30, 2007, days before the Forum's closure, Melo was exonerated by state officials. However, the decision was largely perceived to be a political one in order to save face for the Governor. Yet, the many accusations and considerable controversy in the two years leading up to the Forum led many to believe that the proposed infrastructure would not be ready in time and that the Forum would fail. In addition, the upsurge in narco-related violence in Nuevo Leon in 2007 led many to fear that the Forum would be a tempting target for organized crime, with some envisioning an eventual bloodbath. ¶7. (SBU) In October 2006, Melo was replaced by Othon Ruiz Montemayor, a well-respected scion from the local business community. Ruiz had less than one year to clean up the mess left behind, find sponsors, complete the infrastructure, and turn the public's negative perception around. In a scramble, the Forum organizers managed to secure 13 big sponsors who gave between one to 2.5 million USD. Among the sponsors were such heavyweight companies such as Cemex, Femsa, Telmex, Maseca, Bancomer and Banorte. Only one, HBO, was a non-Mexican company. A Forum official charged with collecting sponsorships noted that it was impossible to solicit sponsorships at that late date from foreign corporations and so private funding fell far below expectations. Positive Reviews but a Questionable Legacy -------------- -------------- ¶8. (SBU) Despite the bad press and to the general public's surprise, the Forum organizers succeeded in completing the infrastructure in time. This included an expansion of Parque Fundidora with the Paseo Santa Lucia, an artificial river based on the concept of San Antonio's Riverwalk. An elegantly designed walkway measuring 5 kilometers now surrounds the river offering pedestrians an open public space unlike any other in Monterrey. New museums and an exhibit hall were also created. The new infrastructure has received very positive reviews from the public, business community, and local press. It's seen as a welcome and worthwhile investment for the city. Nevertheless, the total cost of the Forum is estimated to be over US$475 million, with the infrastructure costing about US$354 million. Final budget figures are still being prepared and will be presented to the General Counsel charged with overseeing the Forum. Forum officials claim they broke even in the end. However, this is hard to believe since few sponsors were found, and the estimated total cost was nearly double the original budget. Indeed, Nuevo Leon has shown the strain, as there have been public reports of a number of infrastructure projects delayed in 2008 due to lack of funds. ¶9. (SBU) Over the course of 80 days, the Forum drew about 4.5 million visitors, more than double the expected number and considerably larger than the 3.5 million that visited the Barcelona Forum. However, the majority of the visitors were locals. According to state officials, only about 20% of the visitors were from outside of Nuevo Leon, and of those, most were from neighboring states. Nuevo Leon officials estimate that about 40,000 were estimated to be foreigners, mostly from the U.S. (Texas),and the rest from Spain and Italy. Econoffs took several trips to the Forum, confirming that this was predominately a Northern Mexican event, with extremely few foreigners attending. Yet, it was widely observed that the 4.5 million visitors represented all socio-economic levels. This is unusual given Monterrey's economically-stratified society, where the upper class rarely mixes with the lower class. In addition, no incidents of crime, vandalism or accidents were reported at the Parque Fundidora throughout the entire event. Among the most popular attractions were the cultural exhibits such as Frida Kahlo and Isis, which drew large crowds and wait times that averaged two hours. The dialogues, on the other hand, were poorly attended. Though most agreed that the concept and content of the dialogues were good, they were plagued with ticketing errors early on, as well as poor promotion and scheduling. A survey of Consulate contacts found that few had attended a dialogue, although almost all had been to an exhibition or performance. ¶10. (SBU) Despite the large number of participants and overall positive reviews, it does not appear that the Forum will deliver the promised economic boom. Figures from the Nuevo Leon Hotel and Motel Association show that hotel occupancy increased only 7.5 to 8% during the Forum, with an average 75% occupancy level. Yet, the owner of the Monterrey Howard Johnson and Four Point Sheraton noted that occupancy levels were better when the Rolling Stones visited in March 2006. Restaurant sales, which MONTERREY 00000067 003.2 OF 003 were expected to increase by at least 10%, were also disappointing with only a 4-7% increase; although those closest to the main Forum site were up 50%. On the other hand, the Director of Parque Fundidora, Eric Jurgensen, noted that in addition to the large turnout during the Forum, the park has seen a 120% increase in visitors in the first month since its closure. However, the popular Isis exhibit ran 6 weeks longer, pushing up these numbers. Monterrey now has additional tourist attractions, but it still is not a tourist destination. Nevertheless, state officials expect that business travelers may now stay an additional day to see the city. ¶11. (SBU) A possible negative side effect of the Forum is the delay in other city infrastructure projects. The staggering cost of the Forum seems to have left little in the state and city budgets for other intended projects, such as the extension of the Monterrey metro, amplification of major avenues, and the construction of a new security building. Moreover, the original Forum budget did not include a separate allotment for the continued maintenance of the new infrastructure after the Forum's closure. Meetings with several Forum officials revealed that there is currently no plan for how the new spaces will be used in the future or who will pay for their upkeep. Some suggested that a private-public partnership will need to be formed to manage the buildings, but gave no specifics on who, how or whether any proposals have been put forward. Others suggested that some, if not most, of the new spaces would be self-sustaining, such as the Paseo Santa Lucia. Yet, currently there is little commercial development there, with only three restaurants on the Riverwalk. Though the idea is to follow the model of San Antonio's Riverwalk by continuing to develop the park, there is no specific plan on how to go about doing this and no one seems to be charged with coming up with one. ¶12. (SBU) Overall, the Forum was viewed as a success in the end, even by those who had turned against it, such as business community leaders. The general perception seems to be the Forum has helped to change Monterrey's image from an industrial, provincial town to a more sophisticated, cosmopolitan one. Roberto Cavazos, President of Monterrey's American Chamber of Commerce, remarked that the Forum 'was a spark, a beginning' for a city in transformation. As for the expected deluge of foreign tourists, there appears to be little concern that they never really materialized. Forum officials have since downplayed the promise that the event would attract many foreigners. In a meeting with Jorge Salazar Tamez, one of the Forum directors, he stated that 'The idea was not to bring Monterrey to the world, but to bring the world to Monterrey.' Comment: -------------- ¶13. (SBU) Comment. For Governor Natividad, the Forum's success may be a legacy he can claim as part of his political career. For Monterrey, it remains to be seen whether the Forum will have any lasting effects. Given all the problems in putting the Forum together, very little attention was given to anything beyond the Forum's closure. The fact that funding for the continued maintenance of the new buildings and public spaces was not included in the Forum budget could mean that the Forum's success will turn out to have been short-lived. Those involved with putting the Forum together and ensuring its success have since moved on to better things, or back to their regular jobs. Aside from those still working on the final budget figures, Forum officials appear to have wiped their hands clean of the event. Even those responsible for the promotion of the event, at a cost of over 6 million USD, have not bothered to take down the large posters and other advertisements that still blanket the city two months after the event's end. Finally, since Governor Gonzalez Paras' term ends in 2009, unless the Forum structures are truly self-sustaining, it is unclear if they will be supported beyond that time. End Comment. WILLIAMSON