Long exalted for posh hotels, luxury spas and extensive playtime options, coastal Mexico destinations are retooling their message in the midst of today’s economy and corporate environment. What’s being termed the “AIG effect” is having an effect on upscale destinations like Los Cabos and Cancun, where promoting overindulgence is being tempered, at least for now.
“Resorts themselves have to rethink what they are offering,” says Eduardo Chaillo, regional director for the U.S. at the Mexico Tourism Board. “We don’t want to lose the flavor of Mexico. We’re still a fun place to go. However, we have to speak the language of the client. If you always talk about nightlife and atmosphere on beaches, maybe you have to talk more about professionalism.”
As a whole, Mexico is seeing a decrease in group business in coastal areas, according to Chaillo. The trend is more frequent meetings and shorter booking windows, but fewer attendees.
“They pick a destination very fast, maybe three weeks in advance,” Chaillo says.
Associations are also still meeting, helping to offset some of the corporate downturn.
Another albatross Mexico is trying to shake is the barrage of media attention on the drug-related violence in its border areas.
“The problems we are having are in some localized areas that have to do with drug trafficking,” Chaillo says. “It’s located on the borders, in five or six cities out of 2,000 municipalities we have in Mexico. However, the media has generalized this. You can’t paint Mexico with one brush. Of course it has affected us. Meeting planners focus on attendees and attendees watch TV and believe what they see in the media.”
In response, the Mexico Tourism Board is gathering testimonials of groups in various destinations and showing that those places are safe.
The economy and travel alerts are also affecting Mexico’s DMCs. At Maritur, more than 65 percent of the company’s programs for 2009 have canceled due to the economic crisis, according to Adriana Aburto, director of marketing for the company.
“In regards to 2010, we recently had more than 15 percent of our groups in the books cancel because of the bad image our country has in regards to violence at the borders,” Aburto says.
But the news isn’t all bad.
“We’re still having some important groups who find Mexico very close, easy and affordable,” Chaillo says. “We have a strong devaluation, the dollar is stronger. We’re very affordable and there are very good deals on flights. All those factors combined are doing us a great favor.”
With the introduction of two new convention centers this year—one in Puerto Vallarta and another in Mazatlan—there is also cause for optimism.
Baja California Peninsula
Los Cabos has long been a favorite playground for groups, combining five-star resorts with endless adventure options. Its diversity is now its highest playing card.
“Los Cabos is an eco destination where you can splurge or come in on a budget,” says Ella Messerli, vice president of operations for the Los Cabos CVB and general manager of the Marquis Los Cabos. “We’re very privileged here because of the geography of Los Cabos. We can set up something spectacular just with lighting in the desert canyon.”
To help promote the destination, the CVB recently launched a new website, www.visitloscabos.org, which will have a new section for meeting planners where they can find hotel meeting packages and submit RFPs.
Groups are also tailoring their itineraries and substituting gala champagne dinners with more low-key events like beach parties and eco adventures, according to Messerli. Another trend has been creating group activities that give back to the community, such as silent auctions. A recent group raised over $5,000 for a children’s orphanage through a team-building competition.
In new developments, Capella Pedregal, a 66-room hotel and residence resort, will open along the Cabo San Lucas Marina. In 2010, the Montage Los Cabos will debut on the site of the former Twin Dolphin Hotel. Also under development is The Ritz-Carlton Los Cabos, Quivira, which is scheduled to open in 2011. Other top meetings hotels include Hilton Los Cabos and Crowne Plaza Los Cabos Beach.
“The destination won’t grow as fast as in other years, but all the airlines are continuing to support Los Cabos, and airfares have gone down to normal prices,” Messerli says.
Farther northeast along the peninsula is the town of Loreto, located between the Sierra de la Giganta mountains and the Sea of Cortez. The destination is being served by the new Loreto Visitors Bureau.
Still in the works is the Villages of Loreto Bay, an 8,000-acre project that features the Inn at Loreto Bay and will eventually include hundreds of home sites, spas, restaurants, retail stores and areas for group events. Villa Group Loreto is also building a 165-room property in downtown Loreto.
Pacific Coast
On the Pacific, Acapulco is promoting its ecotourism and cultural assets.
“Acapulco is not only sun and beaches,” says Daniel Martinez, manager of meetings and conventions for the Acapulco CVB. “There is a lot of ecological tourism. Main attractions include the Coyuca Lagoon. You can feel like you are in the middle of the jungle and 20 minutes later be in the middle of the city.”
The destination is still expanding. Currently there are 18,000 rooms in Acapulco and by 2011 the projection is for a total 20,000 rooms.
But Acapulco’s largest development, Mundo Imperial, is currently in a holding pattern. The project’s Foro Imperial, a 4,800-seat performing arts theater and sports venue, is open and in use, but the convention center and planned hotels will not open this year as planned.
“Back in November we were supposed to be opening for the first quarter this year,” says Seyed Rezvni, managing director for the Mundo Imperial complex, explaining that with over $260 million already invested in the project, construction will likely proceed in January 2010, with a tentative opening date by November 2010.
For now, groups can use the existing Acapulco Convention Center, and the Fairmont Acapulco Princess is adding convention space as part of a $30 million renovation as well.
Other upcoming projects include a the cliff-top Banyan Tree Cabo Marques hotel, slated to debut in June in the Punta Diamante district, and AQUA Acapulco, a Grupo Posadas property scheduled to begin construction in 2010.
Additionally, the Hyatt Regency Acapulco is now the Grand Hotel Acapulco.
Meanwhile, Puerto Vallarta is on target to open its Puerto Vallarta International Convention Center this year with over 160,000 square feet of space.
“The convention center is going to put us in a different league,” says Dennis Whitelaw, president of the Puerto Vallarta CVB. “We’ll be able to withstand 5,000 people. The most we’ve ever had is from 1,200 to 1,400. We couldn’t have a citywide.”
One of the destination’s top meetings properties, the CasaMagna Marriott Puerto Vallarta Resort & Spa, completed a $12 million renovation last year.
Aside from its newfound standing as a big-league player for conventions, Puerto Vallarta retains its local flavor—from its cobblestone streets to its vibrant art scene. The region is also a culinary hub with over 400 restaurants.
Puerto Vallarta’s new convention center will also benefit Riviera Nayarit, a 100-mile stretch of Pacific Coast north of Puerto Vallarta. Hot spots include Punta Mita, an exclusive resort and residential community covering more than 1,500 acres on a peninsula surrounded by Banderas Bay. Nuevo Vallarta features golf courses and a marina, as well as a high concentration of hotels.
“We’re a luxury destination surrounded by nature,” says Richard Zarkin, public relations manager for the Riviera Nayarit CVB.
Zarkin estimates that incentives represent 80 percent of group business in the region, which is well positioned with chains like Four Seasons, Grand Velas and Vallarta Palace. Last year three new hotels opened: Hotel Riu Vallarta, St. Regis Punta Mita and Dreams Villamagna Nuevo Vallarta.
Business is slowing down a bit, according to Zarkin, and other new hotels that were scheduled to debut in 2009 are moving opening dates to 2010, such as the Iberostar in Litibu. Other hotels in the works include the Park Hyatt and the Grand Hyatt in Punta Raza, and Capella in Destiladeras. Additionally, Los Veneros will be a new resort area on the Banderas Bay coast, and a second Jack Nicklaus golf course is also opening in Punta Mita.
The beach resort of Mazatlan positions itself as more of a value destination, which is a benefit in these economic times.
“We’re very competitive,” says Javier Paez, director of public relations and marketing for the Mazatlan Hotel Association. “We become a great choice for groups, with great value because we have a lot of attractions.”
Mazatlan offers access to fishing, beaches and mining towns dating to the 16th and 17th centuries.
“On the one hand we have the modern infrastructure of the hotel industry and nightlife and on the other is the history in nearby towns,” Paez says. “That’s what clients are expecting to see when they come to Mexico.”
With an eye toward growing group business, the Mazatlan Convention Center is scheduled to open this summer with a capacity for over 6,000 people. Previously the destination could only host about 2,000.
Mazatlan also opened the 250-room Crowne Plaza in December, and the Riu is slated to open in May with 600 rooms.
Ixtapa-Zihuatanejo prides itself on being two places in one: the upscale resort stretch of Ixtapa, where groups can find properties like the Melia Azul Ixtapa, which is expanding with a 150-room tower, and the smaller, intimate town of Zihuatanejo, with meetings properties like Villa del Sol.
Last year the Capella Ixtapa debuted with a spa and meeting rooms for up to 30. There is talk of a convention center for the area, but that is only in the preliminary stages, according to Ana Canarena, travel and trade manager for the Ixtapa-Zihuatanejo CVB.
Other destinations along the Pacific include Huatulco and Manzanillo, both low-key group options. Huatulco offers Las Brisas Huatulco and the Sheraton Huatulco, while Manzanillo features the Brisas Las Hadas and Barcelo Karmina Palace.
Mexican Caribbean
Flanking the shores of the Caribbean, the beach resorts of Cancun, the Riviera Maya and Cozumel blend an array of aqua adventure and ecological havens with easy access to archaeological treasures such as the Mayan ruins of Chichen-Itza, Tulum and Uxmal.
Until this year, Cancun, the largest of the resort areas, had been steadily growing its group business, according to Fernando Cervantes, groups and conventions director for the Cancun CVB, who says groups now represent 18 percent of the destination’s total occupancy. The goal is to raise that level to about 25 to 30 percent in the next five years.
“We need a new convention center in order to that,” Cervantes says.
There is talk of an expansion for the current convention center, though nothing is definite.
Cancun offers over 27,000 hotel rooms and 700,000 square feet of meeting space. Major meetings hotels include Moon Palace, which is expanding; Gran Melia Cancun; Fiesta America Grand Coral Beach Cancun, which is building a new spa; and Hilton Cancun, which is adding ballrooms.
Airlift is also expanding with additional service from AirTran, JetBlue and AeroMexico.
The island of Cozumel boasts the largest barrier reef in the Americas. Cozumel’s intimate atmosphere is a big selling point for groups, according to Ana Bravo, promotion manager of the Cozumel Tourist Promotion Board.
“Here in Cozumel we have about 30 percent repeat business,” she says.
One project that is moving forward is a new marina slated for completion by the end of this year near the InterContinental Presidente Cozumel. The project includes shopping venues, new restaurants and 854 hotel rooms.
South of Cancun, the Riviera Maya, extending from Puerto Morelos down to Tulum, features an array of spas, golf courses and eco parks such as Xcaret, Xel Ha and Tres Rios. This summer the destination is opening a new eco park, Explore, where exploration happens underground in caves, cenotes and subterranean rivers.
For the first part of the year, the region is actually seeing a rise in hotel business, up 3.5 percent over the same period last year, according to Javier Aranda Pedrero, executive director of the Riviera Maya Tourism Board.
One of the destination’s newest properties is Grand Velas All Suites and Spa Resort, which has more than 91,000 square feet of indoor and outdoor meeting space.
“That is important for meetings and conventions,” Aranda says. “The size allows us to have big groups.”
Veracruz
Veracruz is a city of festivals, the most famous of which is its Carnival celebration and Cumbre Tajin at the Tajin archaeological site, featuring traditional dance and music.
Group facilities include World Trade Center Veracruz as well as the Crowne Plaza Hotel Veracruz Torremar, Galeria Plaza Veracruz Hotel and Fiesta Inn Veracruz.
For More Info
Acapulco CVB 011.52.744.484.8555 www.visitacapulco.com.mx
Baja California Secretary of Tourism (Rosarito Beach) 800.962.BAJA www.rosarito.org
Cancun CVB 011.52.998.881.2745 www.cancun.info
Cozumel Tourist Promotion Board 011.52.987.872.7585 www.islacozumel.com.mx
Huatulco Hotel Association 011.52.958.581.0486 www.hoteleshuatulco.com.mx
Ixtapa–Zihuatanejo CVB 011.52.755.553.1270 www.visit-ixtapa-zihuatanejo.org
Loreto Visitors Bureau www.experienceloretobaja.com
Los Cabos CVB 866.LOSCABOS www.visitloscabos.org
Mazatlan Hotel Association 011.52.669.913.3333 www.gomazatlan.com
Mexico Tourism Board 202.265.9021 www.visitmexico.com
Puerto Vallarta CVB 888.384.6822 www.visitpuertovallarta.com
Riviera Maya Tourism Board 011.52.984.206.3150 www.rivieramaya.com
Riviera Nayarit CVB 011.52.322.297.2516 www.rivieranayarit.com
Veracruz CVB 011.52.229.923.0391 www.veratur.gob.mx
