Identifier
Created
Classification
Origin
09MATAMOROS18
2009-01-23 16:30:00
UNCLASSIFIED
Consulate Matamoros
Cable title:  

PUSHING THE TOURIST ECONOMY IN NORTHERN MEXICO: IS IT

Tags:  BEXP BTIO ECON ELAB MX PGOV 
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R 231630Z JAN 09
FM AMCONSUL MATAMOROS
TO SECSTATE WASHDC 4360
AMEMBASSY MEXICO 
INFO ALL US CONSULATES IN MEXICO COLLECTIVE
AMCONSUL MATAMOROS
UNCLAS MATAMOROS 000018 


E.O. 12958: N/A
TAGS: BEXP BTIO ECON ELAB MX PGOV
SUBJECT: PUSHING THE TOURIST ECONOMY IN NORTHERN MEXICO: IS IT
WORKING?

REF: MATAMOROS 308

(U)
UNCLAS MATAMOROS 000018


E.O. 12958: N/A
TAGS: BEXP BTIO ECON ELAB MX PGOV
SUBJECT: PUSHING THE TOURIST ECONOMY IN NORTHERN MEXICO: IS IT
WORKING?

REF: MATAMOROS 308

(U) 1. SUMMARY: While the maquiladora industry remains the king
of the border economy, Mexico's northern states still rely
heavily on tourist dollars. In 2009, with the combination of a
weakened US economy and increasingly visible security threats in
Mexico, the tourism industry faces particular challenges.
Tamaulipas and neighboring states have ramped up efforts to
attract tourist dollars with efforts geared toward keeping
Mexican tourists at home (reftel),while attracting US and other
foreign visitors. The tourist economy across northeastern Mexico
is hurting -- security is a concern and day vacationers are not
crossing into Mexico, but tourists continue to visit farther
into the interior and tying vacations to business travel appears
to be a growing trend.

Mexican States' Promotional Efforts
--------------

2. EconOff attended a travel exposition in McAllen, Texas, on
January 9 which included seven Mexican state tourism
secretariats (San Luis Potosi, Coahuila, Guanajuato, Nuevo Leon,
Durango, Zacatecas and Tamaulipas) and numerous independent
exhibitors from across Mexico to further investigate regional
tourism trends. Mexican tourism representatives were out in full
force for the annual event specifically designed to attract
`Winter Texans' to regional tourism. (Winter Texans are
typically retired couples from the northern US and Canada living
in the region during the winter months to take advantage of the
temperate climate.) In addition to promotions by the various
state Secretaries of Tourism, all seven of the state-sponsored
booths included the free use of booth space for private travel
companies (hotels, resorts, etc.) and representatives from
municipalities within the states, varying in size and scope.
Unlike Zacatecas and Monterrey, for example, Durango sees many
regional tour groups, with far fewer visiting from greater
distances. While many Americans are afraid to drive themselves
in Mexico, group visits via buses and organized tours are still
popular. As a result, Durango has seen little slowdown in
overall tourism despite the drop in individual Americans driving
into Mexico.


3. In the border region, billboard advertising has also grown

in popularity to attract Mexican and regional tourists from the
US. The Tamaulipas Secretary of Tourism has advertised the
state's beach resorts south of the border, encouraging Mexican
travelers to stay in Mexico. According to Yadira Diaz,
representative of the Tampico, Tamaulipas, Secretary of Tourism,
Tampico's main goal is still to attract Mexican tourists --
keeping their dollars away from Texas. Nuevo Leon, on the other
hand, has recently added billboards promoting Monterrey as a
tourist destination along highways on the US-side of the Rio
Grande Valley. The new advertisements were timed well to meet
the seasonal arrival of Winter Texans and the annual travel
expo. Arturro Monctezuma with Apple Tree Cabanas, about 80
minutes south of Monterrey, and representatives of the Monterrey
Secretary of Tourism indicated that Monterrey tourism continues
to grow as the city makes a continued push to move its economy
beyond industry. According to Monctezuma, air travelers make up
a significant portion of the increase in tourists as a fear of
driving from the US into Mexico is keeping many visitors away
despite regional promotion efforts.


4. Farther into the interior, Zacatecas has reported a 300
percent increase in tourism in the past few years with many new
visitors coming from Japan, Australia and Canada. `Semana Santa'
and Zacatecas' music festival (featuring artists like Bob Dylan)
are big draws for international tourists. According to Luis
Raudel Rivas Naches, director of promotion for the Zacatecas
Secretary of Tourism, Zacatecas is allegedly the most secure
state in the country which helps the state promote itself.

Taking Advantage of Business Travel
-------------- -

5. In Tamaulipas, new resorts and other facilities are being
development and heavily promoted to attract business clientele
with meeting rooms and other business travel draws. A new hotel
has been completed near the `El Cielo' bio-reserve south of the
state capital in Ciudad Victoria. Additionally, significant
investments are being made to convert La Pesca, Tamaulipas, into
a new Gulf Coast tourist destination, and city of Tampico also
recently opened a new multi-million dollar Convention and
Tourist Center (reftel).


6. The city of Saltillo and the state of Coahuila also note
relative stability in tourism dollars. According to Cristina de
Hoyos Villarreal, coordinator of groups and conventions for the
city of Saltillo, business travel is still driving a significant
portion of the tourism dollars. She indicated that Korean and
Canadian businessmen, for example, regularly bring their
families with them when visiting for work for one or two week
stays.

Border Tourism is Down
--------------


7. Attractions in the border region typically visited by Winter
Texans are hurting significantly. While some blame confusion in
regard to US border crossing regulations (changing deadlines for
AmCits needing passports to re-enter the US, etc.),most of the
blame is being placed on the security situation and the US media
for scaring away valuable tourist dollars. The Chamber of
Commerce in Rio Bravo, Tamaulipas, which includes the town of
Nuevo Progresso which offers arguably the most convenient
Mexican border shopping district in the region, reports that the
2008 Winter Texan season saw a 50 percent decrease in retail
sales. The Mercado Juarez in Matamoros had reports of drastic
sales drops, down as much as 80 percent last year. And this year
is not expected to be any better. According to press reports in
late December, a low flow of winter tourists from the United
States this season has led to as many as 33 percent of the local
arts and crafts market vendors in Mercado Juarez to go out of
business. Affiliated businesses are also struggling. `For the
last two months we have been agonizing, due to the lack of
passengers,' said Francisco Dominguez, a taxicab driver
stationed at Matamoros' main plaza.


8. Hunting tourism is another example of a tourism push -- and
struggle -- in the state of Tamaulipas which is the number one
hunting site for foreign tourists according to the state
Department of Tourism. As of November, the state expected more
than 17,000 hunters from the US and Canada during the 2008-09
stag season which lasts through January. Each hunting tourist
spends an average of 1,000 USD according to one state official,
resulting in millions of dollars in revenue for the hunting
industry during stag season, alone. (Bird hunting is also
popular throughout the state at other times of the year.)
However, a late December press report noted that the current
deer hunting season in Tamaulipas has `been a failure,'
allegedly due to the economic crisis in the U.S. and Canada.
According to the press report, only 50 hunting tourists had
registered at the Zaragoza International Bridge in Matamoros as
of the end of December.


9. COMMENT: While the maquiladora industry is the backbone of
the border economy, Mexico's northern states rely heavily on
tourist dollars. The combination of a weakened US economy and
security threats in Mexico mean the tourism industry will face
particular challenges in 2009. From taxi drivers who transport
pedestrians from international bridges to shopping districts, to
pharmacies that rely heavily on selling discounted drugs to
Winter Texans, to hunting lodges farther into the interior, the
threat to small- and medium-sized businesses is arguably most
severe. And despite government and private efforts to promote
new segments of the tourist industry, such as resorts geared
toward business meetings and draws for weekend visitors farther
from the border, the tough global economy could threaten many
new ventures almost before they start. However, if the newer
ventures, in particular, survive the downturn and the current
security environment, they offer promise of diversifying the
regional economy and creating new service sector jobs that could
benefit thousands of workers with few other options outside of
city-centric maquiladoras and the low-paying agro-economy in
Mexico's northern states.


HAMMOND