http://www.mexidata.info/id640.html

October 17, 2005

Mexico now world’s seventh largest tourist destination

Office of the President of Mexico


President Vicente Fox said that Mexico must continue its fiscal, monetary and budgetary discipline, stay the course and maintain discipline in the implementation of its public policies, since nothing would be more detrimental to the country’s success than trying out different methods and returning to corruption, populism and demagogy.

Mexico, he added, has clearly determined the path it must take, which has yielded positive results, as borne out by the fact that during the current administration, accumulated investment will have totaled just over US$11 billion.

He explained that this figure is the highest ever recorded in a single administration, and that it has been achieved through the application of strict financial and fiscal discipline.

During his inauguration of the Fifth International Tourism Congress, the president added that Mexico is receiving investments from all over the world. Although direct foreign investment has fallen 25 percent worldwide in recent years, in the case of Mexico it has risen by 25 percent.

He also pointed out that Mexico has the lowest unemployment rate in the whole of Latin America and Europe, according to the measuring and procedures standards of the Organization for Economic Cooperation and Development (OECD).

The president said that tourism is a source of progress and well being for all Mexicans, since it is one of the country’s leading economic activities.

He went on to say that this sector accounts for approximately 8 percent of the total production of goods and services of Mexico’s gross domestic product (GDP), and that over two million families benefit from this activity.

President Fox recalled that in 2004 income from the tourist sector grew at a rate of 8.6 percent, which was higher than the growth of the Mexican economy that was approximately 4 percent.

He added that this year the sector would break its own record, since it is estimated that by December tourism will have yielded profits of US$12 billion, and that over 24 million visitors will have visited at least one of the country’s tourist resorts.

“Mexico has become the world’s seventh most important tourist resort, but has yet to achieve all of its enormous potential. We must strive to achieve even more,� he urged.

He mentioned that Mexico has a favorable geographical location and has some of the world’s greatest biodiversity, since it has the scenery and natural resources for promoting all kinds of recreational activities and satisfying the most demanding tourists.

In his message, President Fox asked the tourist sector to redouble its efforts to diversify and integrate the supply of tourism, provide more and better infrastructure, and improve its organization and promotion.

Talking about the positive results achieved by the tourist sector, he explained that those results are not by chance, but rather from effort, work and the confidence that exists in the country, as well as its economic, political and social stability.

He said that people often ignore the stability the country enjoys, although he said that it is only in a climate of stability that progress can be generated and investment increased.

Gordon F. Viberg, president of the National Tourist Business Board, called upon the Mexican Congress to approve the 2006 budget, modify the Federal Labor Law, and to create four-day weekends whenever holidays fall on either side of a weekend.

He also asked Congress to approve a 50 percent increase in the deductibility of restaurant charges, since this would place restaurants in a more competitive position vis-ÃÂ*-vis their Free Trade Agreement partners.

He also said it is essential to apply the zero tax rate to businessmen in the tourism industry. “Legislators, senators and deputies â€â€