National Trust Fund for Tourism Development Table of Contents 1. - PowerPoint PPT Presentation

National Trust Fund for Tourism Development

Table of Contents 1. Introduction - Economics in Mexico - Tourism Economy in Mexico - Tourism Investment in Mexico - Tax incentives in Mexico - What is FONATUR? - FONATUR’s Advantages - FONATUR’s Achievements - Integrally Planned Developments 2. Investment Opportunities - Marina Cozumel - IPD Sinaloa - Capomo 3. IPDs - IPD Huatulco - IPD Ixtapa - IPD Cancun - IPD Los Cabos - IPD Loreto 4. Contact 2

Economics in Mexico Unemployment Rate Gross Domestic Product Percentage Thousands of Million pesos at constant prices 9,500 7 6 9,000 5 4 8,500 3 8,000 2 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2011 Total Exports Inflation Rate Millions of Dollars Percentage 30,000 7 6 25,000 5 20,000 4 15,000 3 10,000 2 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 3 Fuente: Inegi, Banxico

Tourism Economy in Mexico Exchange Rate (MXN /USD) • The tourism participation in the Gross Domestic 14 14 13 Product is ~9% 11 11 11 11 11 11 12 10 9 10 • 80% of the tourism activities is hold by the national 8 market 6 • Current population is about 112.3 million people 4 2 • National tourism flows: 56.4 million passengers 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Direct Foreign Investment in Hotels and Restaurants (million dollars) Tourism Trade Balance (Million Dollars) 1,234 2005 2006 2007 2008 2009 2010 760 715 667 Incomes 11,803 12,177 12,852 13,289 11,275 11,872 438 389 403 159 58 Outcomes 7,600 8,108 8,375 8,526 7,132 7,283 Balance 4,203 4,068 4,477 4,763 4,144 4,588 -248 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Banxico, Ministry of Economics, SIIMT 4

Tourism Investment in Mexico Tourist Region Ranking Country arrivals • It is one of the world’s most stable, open and deregulated developing economies, providing 1 France 67.8 Europe foreign investors all the necessary legal 2 USA 52.5 North America facilities and guarantees. 3 Spain 51.7 Europe 4 China 50.0 Asia 5 Italy 41.6 Europe • Mexico is one of the most important tourist 6 UK 27.5 Europe destinations in the world. 7 Turkey 25.2 Europe 8 Germany 23.7 Europe 9 Malaysia 23.4 Asia • It offers a wide variety of opportunities for 10 Mexico 21.5 North America private investment through FONATUR. 11 Ukraine 20.3 Europe Ranking by currency income • Tourism is a national priority with the objective Position Country Billion Dollars of positioning Mexico among the 5 most visited countries as of 2018. 1 USA 93.9 2 Spain 53.2 • The total tourism investment in Mexico was 3 France 49.4 ~$2.6 billion dollars. 4 Italy 40.2 • In the last six years the infrastructure 5 China 39.7 investment was about 574.9 million dollars. … … … 23 Mexico 11.3 5 Source: SECTUR Private investment identified in the tourist sector, Dec. 2009

Tax incentives in Mexico • Temporary taxes exemption and state fees • Construction license payment exemption • Taxes and state fees reductions • Reductions in the rights generated from the Property Public Register • Reduction of real estate acquisition tax • Reduction in the payment of licensing fees for construction • Payroll tax cuts to companies that create new jobs Note: fiscal and legal incentives may vary by state 6

What is FONATUR? The National Fund for Tourism Development (FONATUR for its initials in Spanish) • Is part of the semi-private public sector • Is under the sector coordination of the Ministry of Tourism • Adapts its actions to the National Development Plan and the National Tourism Program 1. To be the institution responsible for the planning and development of sustainable tourist projects of Mission national impact. 2. To be the organism that promotes investment in the country’s tourist sector. 7

What is FONATUR? • FONATUR pioneered the planned tourism in Mexico creating Cancun (1974), Ixtapa (1974), Los Cabos (1976), Loreto (1976) and Huatulco (1984). • Cancun started the concept of IPD with the objective of developing tourism in an ordered manner, ecologically friendly and respecting the local urban development. • These efforts helped attract international tourism placing Mexico among the top tourist destinations in the world, six folding the number of international tourists that visit Mexico and generating well paid jobs. FONATUR established a new paradigm: Long-term planning as a reliable way to guide decision-making 8

FONATUR’s advantages Investment Advantages Added Value Observed in FONATUR’s IPDs • FONATUR’s IPDs are Average price by m 2 developed through USD/ m 2 sustainable master plans CGAR 2 400 • FONATUR provides Cancún 11% maintenance to the 350 IPDs , thus guaranteeing their Los Cabos 10% 300 status • 250 Buying from a government agency gives legal certainty 200 to the investors Ixtapa 3% 150 • FONATUR provides Huatulco 9% all services to the lot 100 Loreto 5% • FONATUR prices are 50 competitive and also have financing schemes 0 IPD Begining 1990 2000 2010 1 IPD Begining: Cancún 1974; Los Cabos 1976; Ixtapa 1978; Loreto 1980; Huatulco 1984 2 CGAR: Compound Growth Annual Rate 9

FONATUR’s Achievements Promotion of private Observed investment results Private investment (dollars) Beach hotels located in Foreign tourists that visit for each dollar invested by FONATUR’s IPDs FONATUR’s IPDs FONATUR 20% Cancun 19 40% FONATUR’s investment Los Cabos 14 1 Dollar Hotel capacity installed in Tourism Revenue IPDs generated in IPDs Ixtapa 9 20% Huatulco 9 44% FONATUR has invested 2.7 billon dollars Loreto 6 10

Integrally Planned Developments (IPD) 11

Table of Contents 1. Introduction - Economics in Mexico - Tourism Economy in Mexico - Tourism Investment in Mexico - Tax incentives in Mexico - What is FONATUR? - FONATUR’s Advantages - FONATUR’s Achievements - Integrally Planned Developments 2. Investment Opportunities - Marina Cozumel - IPD Sinaloa - Capomo 3. IPDs - IPD Huatulco - IPD Ixtapa - IPD Cancun - IPD Los Cabos - IPD Loreto 4. Contact 12

Marina Cozumel

Location • Marina Cozumel ‐ Located in Cozumel Island, Quintana Roo, 40 Km east from Playa del Carmen (40 minutes). • Accessibility ‐ Cozumel International Airport ∙ Distance: 8 Km ∙ Travel time: 10 minutes ‐ Cancun International Airport ∙ Distance: 5 Km to Playa del Carmen ∙ Travel time: 30 minutes ‐ Ferry (Playa del Carmen – Cozumel) ∙ Distance: 19 Km ∙ Travel time: 40 minutes ‐ Puerta Maya (Cruise ship pier) ∙ Distance: 100 meters ∙ Travel time: 5 min • Regional attractions ‐ Natural: ∙ Mildly warm climate ∙ Reef, forest, mangrove zone ∙ Exotic flora and fauna ‐ Cultural: ∙ Archeological zone ∙ Traditional architecture ∙ Traditional festivals 14

Statistics Cozumel Airport Cancun Airport Passengers Flights 48941 48628 46973 46694 3000 250000 50000 6000 2586 2460 41172 (in thousands) Passengers 2500 5000 200000 40000 Passengers 1735 2000 4000 1537 1486 150000 Flights 30000 3000 1500 100000 Flights 20000 1000 2000 10000 50000 1000 500 0 0 0 0 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Cozumel tourist arrivals (in thousand) Cancun tourist arrivals (in thousand) National Foreign +37% +32% 924 4097 4041 3266 3072 56% 3004 572 553 2432 526 2344 2285 627 447 384 2165 74% 2134 2022 320 394 1587 388 266 266 1753 1756 297 1100 233 26% 938 845 982 181 178 44% 138 119 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 Registered Rooms in Cozumel Registered Rooms in Cancun +9% +5% 4,582 30,131 4,495 4,543 4,540 4,540 29,538 29,725 4,321 28,078 27,654 26,826 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 15 Source: Sistema Integral de Información de Mercados Turísticos

Project Characteristics ‐ 1.13 Km waterfront ‐ 180º panoramic ocean views ‐ Total surface: 108.10 Acres ‐ Saleable surface: 64.33 Acres ‐ Maximum capacity: 1622 units ∙ Hotel: 572 units ∙ Residential: 1,050 units ‐ Marina: 333 positions (on construction) 16

Marina Cozumel 17

Tourist attractions Nautical services: Infrastructure: ‐ Tourist marina ‐ Commercial zone ‐ Yacht club ‐ Dynamic waterfront ‐ Dry marina ‐ Residential cluster ‐ Gas station Recreational activities: ‐ Beach club ‐ Clubhouse ∙ Restaurants ∙ Sport courts ‐ Theme park (Cenote “El aerolito”) 18

Master Plan Marina Cozumel Land use distribution Urban plan Percentage with respect to total m 2 Marina Cozumel 13% 9% Hotel 42% Commercial Marina with Residential 333 positions Single family 24% 1% Tourism facility 11% Other* Number of lots Available Lots Coming Soon: ‐ Commercial: 1 ‐ Hotel: 4 ‐ Commercial: 2 ‐ Residential: 9 ‐ Single Family: 55 ‐ Residential: 3 ‐ Tourism facility : 1 ‐ Tourism facility: 1 * Urban equipment, green areas, etc. 19

Use of land Area Use of Land Units (m 2 ) Hotel 57,180.80 4.00 Residential 105,906.30 12.00 Single family 46,164.90 55.00 Commercial 24,281.54 3.00 Tourism facility 6,120.16 1.00 Equipment 1,782.43 2.00 Green area 8,686.97 5.00 Streets 44,742.41 - 20