Where are the Boom Towns? Where the Tourists and Investors Are.

Mexico is booming, as far as tourism is concerned. And savvy property buyers know that where tourists go, investments are more apt to pay off.

That's why news just released by Mexico's Tourism Secretariat (Sectur), should be of interest. According to its latest comprehensive study on the subject, private investment in Mexico's tourism sector exceeds $11.6 billion U.S., already surpassing federal goals for the 2001 to 2006 period by 29%.

Domestic and foreign private investment reached the original $9 billion goal in June, 2005, after increasing at least 12% annually since 2002. International sources account for 25% of all private investment, with the United States as the top foreign investor in Mexico's tourism infrastructure.

The report also shows that interest in Mexico's famous beaches remains high, with the sun-and-beach segment outpacing all other tourism products by reaping 48% of private investment.

Three coastal states also ranked in the top three in the amount of private investment received: Guerrero ($2.63 billion), Quintana Roo ($2.47 billion), and Nayarit ($92.5 million) captured almost 52% of the total amount invested between 2001 and 2006.

Approximately 89% of private investment in Guerrero went to tried-and-true beach resort Acapulco on the Pacific Ocean. Of the private investment Quintana Roo received, 82% was channeled to the Caribbean hot-spots of Cancun and Riviera Maya. More than 60% of Nayarit's private investment went to the Pacific resort town of Nuevo Vallarta.

Rounding out the top five states receiving the highest amount of public investment are border states of Baja California ($86.3 million) and Sonora ($78.4 million). Together, the states on the U.S./Mexico border, which also include Chihuahua, Coahuila, Nuevo Leon, and Tamaulipas, received 19% of private investment in Mexico, ranking the region second overall.

Among the northern region's major tourism attractions are Copper Canyon in Chihuahua; La Quemada archaeological sites in Zacatecas; the bustling city of Monterrey in Nuevo Leon and the 200,000-acre Cuatro Cienegas Valley in Coahuila.

For a long time now, Mexico has been taking strategic steps to stimulate tourism and attract private investors through its National Trust Fund for Tourism Development (Fonatur). Since its inception in 1974, this government agency is responsible for conceiving, planning and building five sea-side tourism destinations - Cancun, Los Cabos, Ixtapa, Loreto, and the Bays of Huatulco.

We've told you about these destinations in Mexico Insider, and we believe this latest report from Sectur verifies that Mexico is more popular than ever with those seeking a place in the sun.

Best Regards,

Marzena Romanowicz
International Living, Mexico

For information about Mexico, please e-mail Mexico@InternationalLiving.com.

P.S. Plenty of tourists will be in town when we host our International Living Live & Prosper in Mexico Seminar in San Miguel de Allende October 29-31, 2006. That's because the seminar coincides with the colorful Dia de los Muertos (Day of the Dead) festivities that culminate on November 2. In contrast, our seminar will be positively "lively." We'll discuss…in detail…the ins and outs of buying property in Mexico…we'll tell you where, why and how. We'll also talk about visas, health care, insurance, and more. Plan to stay on after the seminar for our free optional real estate tours and to enjoy the colorful Dia de los Muertos fiestas. Learn more here.