A 35-acre studio complex was thriving until drug-related violence and tough competition interfered. Now, with 'Little Boy,' it's trying for a comeback.
By Richard Marosi, Los Angeles Times
January 3, 2012
A huge replica of the Titanic, shown in 1997, was built at Baja Studios for the filming of the blockbuster movie about the doomed liner. The studio was all but shut down over fears of drug wars and fierce competition. (Los Angeles Times / January 13, 1997)
Reporting from Rosarito Beach, Mexico-
Hollywood made a big splash here when it sank the movie replica of the "Titanic" in an enormous water tank built specifically for the cinematic spectacle. The films "Master and Commander" and "Pearl Harbor" followed, with the cannon shots and explosions from those productions rattling high-rise condos and palapa bars up and down the craggy Baja California coast.
But fears of drug wars and incentives from rival production facilities all but shut down film-making at Baja Studios, a 35-acre facility on a bluff overlooking the Pacific. Also closed was the Titanic-inspired theme park, which once drew thousands to gawk at the mementos from Hollywood's second-biggest box office film of all time.
Now, movie fever may be building again. Cameras began rolling this summer on the first feature filmed in years at the studio. The movie, "Little Boy," a World War II-era film set in a Northern California fishing town, drew Academy Award-nominated actors, put local movie crews to work and signaled the studio's ability to still lure major productions south of the border.
Casting the film was a challenge as some actors shied away because they feared local crime, said Eduardo Verastegui, "Little Boy's" executive producer. But the 12-week shoot went off without a hitch for a cast that eventually included Kevin James, Tom Wilkinson and Emily Watson.
"They lived there for a while and were having a great time, and loving the people," Verastegui said. "It's an amazing studio ... and you save a lot of money at the same time."
Built in 1996 by 20th Century Fox, Baja Studios has four sound stages and outdoor water tanks that are among the biggest in the world. Other pluses: Local film crews are cheaper than their Hollywood counterparts and the studio's location just south of Rosarito Beach is a few hours' drive from Southern California. The trip is even shorter for people using the facility's heliport.
Over the years, all or part of about nine films were produced there. In 2005, one of the stages hosted rehearsals for the rock group U2 ahead of the band's Vertigo world tour. In 2007, 20th Century Fox sold the studio to a group of local investors who hoped to make it a job growth engine in the region.
But in 2008, during pre-production work for the "Chronicles of Narnia:Prince Caspian," Mexico's drug war flared in Rosarito Beach. Seven cops were killed in one month, and the studio moved the production to New Zealand.
Security concerns were only part of the reason for the switch, according to Kurt Honold, a Tijuana-based businessman who is part of an investors' group that owns the studio. With facilities elsewhere offering aggressive incentive packages, Baja Studios, as well as the broader Mexican film industry, had lost its competitive edge, he said.
The Mexican government responded by establishing incentive packages offering up to 17.5% cash rebates and tax breaks for the costs of movies shot in Mexico. President Felipe Calderon announced the incentives program at the studio in March 2010, saying he wanted Mexico to become "Latin America's movie capital."
U.S. and international locales continue rolling out ever-more enticing incentive packages, so Mexico's ability to attract film shoots faces serious challenges. Some observers say that Mexico's incentives still don't match other regions' aggressive offerings. And negative perceptions about drug violence persist, even though crime in Baja California has declined significantly in the last two years.
Mexican investors and government officials are hoping that the studio's track record for turning out blockbusters will provide an edge. With a deep pool of local film crew professionals, many of whom have worked in Hollywood, the studio is a "turn-key solution," said Ricardo Alvarez, the head of innovation at Pro Mex, the government agency that promotes the film industry.
"We have the people, we have the resources, we have the facilities and we have the supply chain," he said. "It's one of the advantages of being so close to Hollywood. Lots of our talent has experience working in Hollywood productions. That is really helpful. It allows you to solidify your credentials."
For Rosarito Beach, the movie dollars and big-spending studio executives and stars nourish all levels of an economy struggling from a collapse in tourism. During film shoots, actors and production crews fill dozens of hotel rooms and oceanfront homes. Residents still remember the sight of Russell Crowe jogging from his hotel to the studio every morning, and photos of Leonardo DiCaprio line the walls at a nearby Marriott Hotel.
For years, eateries offering Titanic-themed burgers and seafood did brisk business, and hundreds of extras would be shuttled from downtown Rosarito Beach. Honold said everyone from hotel maids to highly skilled camera technicians benefit from a film production, aswell as businesses across the border in San Diego, where people often make big-item purchases like cars.
"For every penny spent in Mexico, 50% goes back to the U.S.," Honold said.
Little Boy's production provided a taste of past windfalls, pumping about $14 million into the local economy, according to Honold. Crews constructed a Norman Rockwell-esque town overlooking the ocean and long-vacant production offices and dressing rooms - one still bearing the name of Peter Weir, the director of "Master and Commander" - were once again buzzing with activity.
Verastegui, the executive producer, said filming in Baja California sliced 50% off the budget, without sacrificing quality. Some cast members agreed. "I think that if people knew about this facility - that it's this good, with people around here that are this competent - they'd be flocking down here in droves," Wilkinson, the actor, said in an interview with filmmakers.
richard.marosi@latimes.com
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"Absolute Steel"
• 1,334 sq. ft., 2 bath, 2 bdrm single story - $175,000 USD - "Bargain"!
Rosarito Beach, In Town - YOU CAN"T BEAT THE VIEW!
This is a upgraded, “Turquesa” model that offers an open floor plan with an elegant touch of hacienda finishes. Located on the11th floor, with a wrap around balcony that gives you 180 degree panoramic ocean views.
NOTICE this unit has many upgrades, amongst others you will see the Step down crown molding on the ceilings through the whole unit, dome ceiling with recess lighting, big round kitchen island with front and back cabinets for extra storage, double bull-nose granite counter tops with matching back splash, Custom arched wood doors, tub in master bathroom, Osmosis water System and much more.
La Jolla del Mar is one of the most desirable developments because it is located on a long sandy beach and is only 5 minutes from downtown Rosarito and all main shopping stores. It is close enough to town and yet far enough away so you can relax and enjoy the sound of the ocean that is outside of your door. It has the most wonderful and breathtaking incomparable ocean views and is enriched with natural surroundings. You are within walking distance to shopping, restaurants, convenience stores, supermarkets, doctors, pharmacies and all the services with its abundant facilities and natural beauty, Rosarito is the perfect stage for all types of recreational events.
Throughout the year there are many scheduled attractions that will attract your attention, either as spectator or as participant.
Sports, social and cultural events staged in this magnificent scenery are certainly worthy of your participation or attention. All of them offer outstanding color and flair.
At night, Rosarito has authentic Mexican floor shows, karaoke bars, sedate and elegant night clubs and plenty of places in between.
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"Absolute Steel"
• 1,334 sq. ft., 2 bath, 2 bdrm single story - $175,000 USD - "Bargain"!
Rosarito Beach, In Town - YOU CAN"T BEAT THE VIEW!
This is a upgraded, “Turquesa” model that offers an open floor plan with an elegant touch of hacienda finishes. Located on the11th floor, with a wrap around balcony that gives you 180 degree panoramic ocean views.
NOTICE this unit has many upgrades, amongst others you will see the Step down crown molding on the ceilings through the whole unit, dome ceiling with recess lighting, big round kitchen island with front and back cabinets for extra storage, double bull-nose granite counter tops with matching back splash, Custom arched wood doors, tub in master bathroom, Osmosis water System and much more.
La Jolla del Mar is one of the most desirable developments because it is located on a long sandy beach and is only 5 minutes from downtown Rosarito and all main shopping stores. It is close enough to town and yet far enough away so you can relax and enjoy the sound of the ocean that is outside of your door. It has the most wonderful and breathtaking incomparable ocean views and is enriched with natural surroundings. You are within walking distance to shopping, restaurants, convenience stores, supermarkets, doctors, pharmacies and all the services with its abundant facilities and natural beauty, Rosarito is the perfect stage for all types of recreational events.
Throughout the year there are many scheduled attractions that will attract your attention, either as spectator or as participant.
Sports, social and cultural events staged in this magnificent scenery are certainly worthy of your participation or attention. All of them offer outstanding color and flair.
At night, Rosarito has authentic Mexican floor shows, karaoke bars, sedate and elegant night clubs and plenty of places in between.
Property information
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Rosarito Beach, In Town - Announcing a price reduction on 1104-La Jolla Real, a 1,334 sq. ft., 2 bath, 2 bdrm single story. Now - 175,000.00 "Bargain"!.
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Rosarito Beach Hotel
celebrates a Mexican tradition: http://www.rosaritobeachhotel.com/events/content/farmers_market_en.html
Dia de Los Muertos ...The Mexican Day of the Dead
The festive period begins on the night of October 31 and continues through All Saints Day and All Souls Day, celebrated November 1st and 2nd respectively. On the night of October 31st, in rituals that recall the ancestors worship of their Indian forefathers, many Mexican families erect altars to the dead in their homes. Included in these altars are ofrendas, offerings of the favorite foods and drinks of the departed, to be enjoyed by their spirits when they return to visit their loved ones. The altar is laden with bright orange marigolds (the zempoalxochitl, flower of the dead) and lighted with a multitude of candles. Traditionally, the altar is lighted on the 31st to await the arrival of the dead children, los angelitos. At twilight on November 1st until dawn of the 2nd, the altar is again lighted and this time the vigil is for the departed adults.
This is a time of happy communion with the dead, not a time of sorrow. Nobel Prize winner, Octavio Paz, in his essay, “The Labyrinth of Solitude” explores the Mexican fascination with the duality of life and death.
“Our relations with death are intimate”, Paz writes, “more intimate perhaps than those of any other people.” He further described this almost ghoulish celebration as an escape from the difficulties of every day existence – not only the poverty, but also a kind of blackness in the soul which perhaps has its roots in the joining of two antagonistic groups, the Indian and the Spanish. Whatever the reason, this Mexican fiesta is a full-blooded affair, colorful, highly emotional and it lasts for days.
On Dia de Los Angelitos, “Day of the little Angels”, the souls of the little children are said to return home. They find an abundance of candies, cookies, milk and honey and other favorite foods awaiting them. Nearby toys are placed fro them to play with after they finish eating.
The following night, November 1st, is for the returning adult souls. They are greeted with more abundant fare; turkey with mole (chocolate and chile sauce), chayote a potato like vegetable and pan de muertos, bread shaped in the forms of skulls and skeletons.
Additionally, tequila, pulque, or other local fermented drink is available in abundance.
Friends and family usually celebrate both nights, often talking with the departed ones in a very convincing manner. They rarely partake of the food prepared for the spirits, but later give it to friends or less fortunate neighbors. In rural Mexico it is not uncommon for the local curandero ( healer or wise man) to say a mass for the recent dead. This is followed by great amounts of tequila, tamales for the living, and a night of dancing, song and bonfires.
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The border tourism also recorder an increase, since in the first eight months of the year were reported 6 million 670 thousand tourist , representing an increase of 9.4% compared to the same period in 2010.
Mexico, D.F., The Secretary of Tourism reports that from the months of January to August 2011, arrived to our Country 15 million 280 thousand tourists from all over the world, a 1.8% more than last year.
The border tourism also recorder an increase, on the first eight months of this year have been reported over 6 Million of tourists, that represents an increase of 9.4%, compare with the same period in 2010.
From January 1st. to October 2nd, the number of occupied hotel rooms over the 70 different destinations monitored by the program Datatur (Statistical information about hospitality services occupancy), increased 3.2% compared with last year. on July and August only, recorder an increase of 4.4% compared to the same months the previous year.
Regarding domestic tourism, from January to August 2011 have accounted 115.2Million of tourists who have occupied hotel rooms or have use other forms of accommodation, representing a growth of 5.4% over the same period last year.
According to the Bank of Mexico, the average expenditure of international visitors has increased 4.3% while cruisers passengers spent 4.9% more.
From January to August, the border tourism, left a economic income of 369 millions of dollars, an amount 1.7% higher than the same period last year.
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Source EscapeArtist Aug 11,2011
The 'Tipping Point' and "The Global Mass Migration"
It has been speculated, and it is very possible given the economic crisis that 5,000,000+ Americans will migrate to Mexico and Latin America over the next 10-15 years taking their "201-K's", their Chia pets, their RV's and comic book collections with them. People will move for a variety of reasons; to find international companionship, a new career, personal and financial privacy, better quality of life, lower healthcare costs, and/or reduced taxation.
Econ-futurists are evangelizing that this unprecedented 'global mass migration and a coming generational storm' could manifest in an inevitable 'Tipping Point' of the largest financial default in the history of mankind. Will the "mass migration' of Americans to Latin America and hundreds of billions in retirements accounts and future tax revenues exiting the US threatens the economic livelihood of the USA? The future is uncertain, but one thing is for sure, an 'Escape Plan' should be on the drawing board.
Do the math! 5 million people times an average of $100,000 in assets is $500 Billion dollars in lost wealth. Is this the reason for the USA to fuel a 'Media War' along the US Mexico border? Would America do something so morally wrong to slow down or prevent cross border capital flows? A higher cost of money on debt that the USA could not afford to pay previously, provides the script for a story much bigger than the Maddoff debacle. Will the US dupe Canada, Mexico and the rest of Latin America into the creation of a Euro type currency called the Ameri-Dollar so the US Treasury could monitor all cash inflows and outflows in all of North and South America? Only time will tell...the question is how much will it cause you to suffer?
One thing is for sure...Mexico and it's Latin sisters have an unprecedented opportunity to position themselves as leading retirement destinations and home to tens of millions of people worldwide.
The sun is shining on the affordable beaches of Latin America!
Latin American countries with their abundance of natural resources, warm weather, low cost of living and affordable real estate possess a great appeal for North Americans. The Tourism Boards and respective Investment Promotion Agencies possess an unprecedented window of opportunity to grab massive marketshare and as it relates to social and economic investment. Tourism Boards are aggressively rolling out the welcome mat to North Americans in the wake of this financial uncertainty and growing fear that the USA will become the next Argentina or Greece.
Read Entire Article Here at EFAM
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The new World Trade Center has eight floors and 200,000 square feet of office space. / Photo courtesy of the center
The new World Trade Center has eight floors and 200,000 square feet of office space. / Photo courtesy of the center
Gregorio Goldstein, CEO of the Tijuana World Trade Center. / Photo courtesy of the center
TIJUANA — Even drivers speeding down Via Rapida highway in eastern Tijuana would find it hard to miss the new glass-enclosed building that rises just outside the city’s largest park. And for those left wondering what’s inside, tall white letters spell it out: World Trade Center.
Gov. Jose Guadalupe Osuna Millán and Tijuana Mayor Carlos Bustamante are among those expected at Thursday’s launching of the center. Members of the World Trade Center in San Diego also are scheduled to participate in the ceremony for this newest member of the New York-based World Trade Centers Association, which has 330 licensed franchises in 100 countries.
“We want to open Tijuana to the world and the world to Tijuana,” Gregorio Goldstein, CEO of the Tijuana World Trade Center, said Wednesday as workmen rushed about putting finishing touches on the building. The 57-year-old Tijuana native is well-known in the community: For years, he served as commercial director for the Dorians department stores and has been active in numerous business groups.
The center connects its members to the other World Trade Centers, allowing them to find markets for their products and build business ties. Robert Frueh, the association’s director of member services, said the network “represents literally hundreds of thousands of businesses through the collective communities that are represented.”
Gregorio Goldstein, CEO of the Tijuana World Trade Center. / Photo courtesy of the center
Establishment of the center is seen as a vote of confidence in Tijuana, where business leaders have been fighting to emerge from the global recession and its aftermath, congested border crossings and fear of crime that has led many members of the city’s economic elite to move across the border to San Diego.
The eight-story building has 200,000 square feet of office space. The center will take up the bottom two floors and has exhibit space, meeting rooms and a 176-seat auditorium. The plan is to lease the six upper floors to businesses. Hector Bustamante, who is marketing the office space, said “there are about 60 prospects” but no firm commitment yet.
A Tijuana company owns the franchise and building, Goldstein said. He would not reveal the size of the investment or name that financial backer.
Tijuana’s main business district, the Rio Zone, is across town and far closer to the San Ysidro border crossing. So setting a World Trade Center in a developing area in eastern Tijuana might seem to be an odd choice. Goldstein believes the location is ideal: “If you take a map, this is exactly the center of the city right now,” he said.
For years, developers and government planners have envisioned a new hub for Tijuana in this part of the city. The area now has housing developments, the El Trompo children’s science center, the Macroplaza Shopping Center and the future Museo del Ambar in Morelos State Park, a children’s museum that focuses on drug prevention. The Baja California Orchestra is housed nearby, as is the Culinary Art School.
Adding office space brings a new dimension. “It will raise the profile of Tijuana internationally,” said James Clark, director general of the Mexico Business Center of the San Diego Regional Chamber of Commerce. "Tijuana is a much more powerful, dynamic city than its image worldwide.”
The San Diego World Trade Center, which opened in 1994, played a role in getting the Tijuana center off the ground by training its staff. Bella Heule, president of the San Diego institution, said small and mid-size companies can reap the greatest benefits through the worldwide connections offered by the centers.
“The more trade opportunities we create, the more opportunities there are for San Diego companies,” she said. “As Tijuana continues to build international trade contacts, this can only benefit San Diego.”
sandra.dibble@uniontrib.com • (619) 293-1716 • Twitter @sandradibble
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Reduced!
• 2,200 sq. ft., 2 bath, 3 bdrm 2 1/2 story - $215,000 USD - Incredible View!
Playas de Rosarito, Baja California - This beautiful contemporary home has everything you’ve always wanted in an ocean view home. Situated on the hill side just up from Rosarito, it not only offers amazing panoramic ocean views but beautiful mountain views as well. It is located in a brand new, safe and private community. At almost 2200 square feet this 3 bedroom 2.5 bathroom offers a double lot at the end of a cul-de-sac so no one will ever build directly in front of it. There are balconies off of the master bedroom, on the side and a roof-top balcony that has a 360 degree view.
It comes with many upgrades including central heat and air-conditioning, tile floors and granite countertops, a fireplace and a covered garage. This home is complete with washer, dryer, refrigerator, dishwasher and stove.
It is a guarded, gated community that is far enough from the hustle and the bustle of downtown Rosarito but close enough to everything to enjoy the comforts of shopping, entertainment, beaches and all services.
Just 20 minutes from the international Tijuana San Diego Border, it is conveniently located. This prime location is close to restaurants, golf courses, sandy beaches, great fishing spots, schools, shopping and wine tasting experience in Baja!
Come and make a little piece of Mexico the home you always wanted!
Esta Hermosa casa contemporánea esta situada al sur de Rosarito en una comunidad privada, con una maravillosa vista al mar, cuenta con 2200 m2, 3 recamaras, 2 ½ baños la recamara principal tiene balcón así como acceso a la terraza.
Cuenta con aire acondicionado, piso de azulejo, acabados de granito en la cocina, estufa , lavadora y secadora así como una chimenea, garaje para 2 autos.
A tan solo unos minutos de la frontera con EUA, definitivamente esta puede ser la casa que siempre has querido no pierdas la oportunidad de venir a conocerla!
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• lot / land - $3,950,000 USD
Primo Tapia, Playas de Rosarito - This land of 13.72 hectares (approximately 30 acres) located in Playas de Rosarito, at kilometer 45 on the free road to Ensenada. It is at “Zona de Marbella”, a suburb “Primo Tapia” and close to Puerto Nuevo, known for the best lobster in the world.
The property is a ½ kilometer east of the scenic road, between Rosarito and Ensenada. It has an spectacular ocean view, and what is most important: IT IS THE ONLY ZONE IN ROSARITO WITH HOT SPRING WATER (58 C) which makes it ideal for:
A) The construction of a deluxe-spa that would meet the needs and wishes of the new important influx of residents in the area, with a feature that no other hotel or condominium development is able to offer.
B) An exclusive development for retiring baby boomers.
The city of Rosarito Beach is located in Baja California approximately, 20 miles south of the United States border at San Ysidro, California and Tijuana, Mexico.
Recently there has been a surge in construction that is attracting baby boomers to Rosarito. This has changed the personality of the town. It is a place where people are coming to retire and with them they are bringing pieces of what they left behind, which is transforming Rosarito into a city of multicultural charm.
You can’t compare the value you will receive when you purchase real estate in this area. The cost drops from 30% to 50% compared to prices just 50 miles north of Rosarito. It’s cheaper than Cabo, and much less expensive than California, and because of its proximity to the United States you get the best of both worlds. The weather is the same as San Diego’s, which is one of the most desirable cities to live in on the west coast.
These and other reasons make it important to think of creating a quality development that can offer lodging, medical services, diverse health treatments in a panoramic view site; a relaxation area where people can enjoy their golden years and where their income will be enough to live a life of quality.
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• 2,208 sq. ft., 2 bath, 3 bdrm single story - $385,000 USD
La Jolla del Mar / Real, Playas de Rosarito - This is a Brand New unit with a spacious open floor plan and an elegant touch of contemporary finishes. Located on the 12th floor it has panoramic ocean views and has many upgrades, such as; Step down crown molding on the ceilings, vaulted ceiling with recess lighting, custom solid wood doors, Jacuzzi tub in master bathroom, travertine floors in the living areas and many other upgrades. This exquisite and spacious open floor plan has unique Pacific Ocean views; the spacious kitchen is a chef’s delight and is outfitted in the finest finishes of travertine & granite, with all stainless steel appliances.
La Jolla Real is a brand new development that gives you that community feeling as well as a sense of neighborliness. This project is for those buyers that want to have high quality construction, a great location and resort style amenities. La Jolla Real is one of the most desirable developments because it is located on a long sandy beach and is only 5 minutes from downtown Rosarito and is close to all the fine dining, shopping areas and points of interest.
La Jolla is a private community with 24 hour security. The grounds are immaculately groomed and maintained. There are 3 resort style pools, children pools and several Ocean Front Jacuzzis, green areas and barbecue areas, which are immaculately groomed and maintained, covered parking, a fully equipped gym, tennis courts and a spacious clubhouse with pool tables, large flat screen TV and all of this set on a bluff overlooking a beautiful year round secluded sandy beach.
The clubhouse is beautiful and you can enjoy the ocean waves breaking over the rocks as you sip on your favorite beverage. A fully equipped gym is available to ensure that you maintain your health and fitness levels at their peak.
This unit can be offered completely furnished and turnkey ready or unfurnished.
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by Robert P. Miller, PhD
Mexico is in a unique position to reap many of the benefits of the decline of the US economy. In order to not violate NAFTA and other agreements the U.S.A. cannot use direct protectionism, so it is content to allow the media to play this protectionist role. The U.S. media - over the last year - has portrayed Mexico as being on the brink of economic collapse and civil war. The Mexican people are either beheaded, kidnapped, poor, corrupt, or narco-traffickers. The American news media was particularly aggressive in the weeks leading up to spring break. The main reason for this is money. During that two-week period, over 120,000 young American citizens poured into Mexico and left behind hundreds of millions of dollars.
Let's look at the reality of the massive drug and corruption problem, kidnappings, murders and money. The U.S. Secretary of State Clinton was clear in her honest assessment of the problem. "Our insatiable demand for illegal drugs fuels the drug trade. Our inability to prevent the weapons from being illegally smuggled across the border to arm these criminals causes the deaths of police officers, soldiers and civilians," Clinton said. The other large illegal business that is smuggled into the U.S.A. that no one likes to talk about is Human Traffic for prostitution. This "business" is globally now competing with drugs in terms of profits.
It is critical to understand, however that the horrific violence in Mexico is over 95% confined to the three transshipping cities for these two businesses, Juarez, Tijuana and Nogales. The Mexican government is so serious about fighting this, that they have committed over 30,000 soldiers to these borders towns. There was a thoughtful article written by a professor at the University of Juarez. He was reminded of the Prohibition years in the U.S.A. and compared Juarez to Chicago when Al Capone was conducting his reign of terror capped off with The Saint Valentine's Day Massacre. During these years, just like Juarez today, 99% of the citizens went about their daily lives and attended classes, went to the movies, restaurants, and parks.
Is there corruption in Mexico? YES !!! Is there an equal amount of corruption related to this business in the U.S.A.? YES !!!. When you have a pair of illegal businesses that generate over $300,000,000,000 in sales you will find massive corruption. Make no mistake about the Mexican Drug Cartel; these "businessmen" are 100 times more sophisticated than the bumbling bootleggers during Prohibition. They form profitable alliances all over the U.S.A. They do cost benefit analysis of their business much better than the US automobile industry. They have found over the years that the cost of bribing U.S. and Mexican Border Guards and the transportation costs of moving marijuana from Sinaloa to California have cut significantly into profits. That is why over the past 5-7 years they have been growing marijuana in State and Federal Parks and BLM land all across America. From a business standpoint, this is a tremendous cost savings on several levels. Let's look at California as an example as one of the largest consumers. When you have $14.2 billion of Marijuana grown and consumed in one state, there is savings on transportation, less loss of product due to confiscation and an overall reduction cost of bribery with law enforcement and parks service people. Another great savings is the benefit to their employees. The penalties in Mexico for growing range from 5-15 years. The penalties in California, on average are 18 months, and out in 8 months. The same economic principles are now being applied to the methamphetamine factories.
FOX News continues to scare people with its focus on kidnapping. There are kidnappings in Mexico. The concentration of kidnappings has been in Mexico City, among the very rich and the three aforementioned border Cities. With the exception of Mexico City, the number one city for kidnappings among NAFTA countries is Phoenix, Arizona with over 359 in 2008. The Phoenix Police estimate that twice that number of kidnappings goes unreported, because like Mexico 99% of these crimes were directly related to drug and human traffic. Phoenix, unfortunately, is geographically profitable transshipping location. Mexicans, just like 99% of U.S. Citizens during prohibition, go about their daily lives all over the country. They get up, go to school or work and live their lives untouched by the border town violence.
These same protectionist news sources have misled the public as to the real danger from the swine flu in Mexico and temporary devastated the tourism business. As of May 27 2009 there have been 87 deaths in Mexico from the swine flu. During those same five months there have been 36 murdered school children in Chicago. By their logic, if 87 deaths from the swine flu in Mexico warrants canceling flights and cruise ships to Mexico, then close all roads and highways in the USA because of record 43,359 automobile related deaths in the USA in 2008.
What is just getting underway is what many are calling the "Largest southern migration to Mexico of people and real estate assets since the Civil War" A significant percentage of the Baby Boomers have been doing the research and are making the life changing decision to move out of the U.S.A. The number one retirement destination in the world is Mexico. There are already over 2,000,000 US and Canadian property owners in Mexico. The most conservative number of American and Canadian Baby Boomers who are on their way to owning property in Mexico for full or part time living in the next 15 years is over 6,000,000. Do the math on 6,000,000 people buying a $300,000 house or condo and you will understand why the U.S. Government is trying to tax this massive shift of money to Mexico through H.R. 3056. The U.S. government calls this "The Tax Collection Responsibility Act of 2007". Those who will have to pay it are calling this the EXIT TAX.
Mexico: A better economic choice than China
Another large exodus from the U.S.A is high paying skilled jobs. The job shift in automobile sector, both car and parts manufacturing, is already known by most investors. In the last few months as John Deere and Caterpillar have been laying off thousands of workers in the U.S.A., and hiring equal numbers in Mexico. The most recent industry that is making the shift is the aerospace manufacturers. In the city of Zacatecas there is currently a $210 million aerospace facility being built. With the 11 U.S. companies moving there, it is estimated to provide over 200,000 new high paying jobs in the coming years. One of the main factors for the shift in job south to Mexico instead of China is realistic analysis of total production, labor and delivery costs. While the labor costs in China are 40% less on average, the overall transportation costs and inherent risks of a long distance supply chain, and quality control issues, gives Mexico a distinct financial advantage.
Mexico's real economic future
Mexico has avoided completely the subprime problem that has devastated the U.S. banking industry. The Mexican banks are healthy and profitable. Mexico has a growing and very healthy middle and upper middle class. The very recent introduction of residential financing has Mexico in a unique position of having over 90% of current homeowners owning their house outright. U.S. banks are competing for the Mexican, Canadian and American cross border loan business. It is and will continue to be a very safe and very profitable business. These same banks that were loaning in a reckless manner have learned their lesson and are loaning here the old fashioned way. They require a minimum of a 680 credit score, 30% down payment, and verifiable income that can support the loan. In most areas of Mexico where Baby Boomers are moving to, with the exception of Puerto Penasco (which did not have a national and international base of buyers), there is no real estate bubble.. The higher end markets ($2-20 million) in many of these destinations are going through a modest correction. The Baby Boomers market here is between $200,000 and $600,000. With the continuing demand, that price point, in the coming years, will disappear. This is the reason the Mexican government is spending billions of dollars on more infrastructure.
The other major area where America has become overpriced is in the field of health care. This massive shift of revenues is estimated to add 5-7% to Mexico's GDP. The name for this "business" is Medical Tourism. The two biggest competitors for Mexico were Thailand and India. Thailand and India's biggest drawback is geography. Also recent events, Thailand's inability to keep a government in place and the recent terrorist attack in Mumbai, have helped Mexico capture close to half of this growth industry. In Mexico today there are over 56 world class hospitals being built to keep up with this business.
Mexico is currently sitting on a cash surplus and an almost balanced budget. Most Americans have never heard of Carlos Slim until he loaned the New York Times $250 million. After that it became clear to many investors around the world what Mexicans already knew: that Mexico had been able to avoid the worst of the U.S. economic devastation. Mexico's resilience is to be admired. When the U.S. Federal Reserve granted a $30 billion loan to each of Mexico, Singapore, South Korea, and Brazil, Mexico reinvested the money in Treasury bonds in an account in New York City.
According to oil traders, Mexico's Pemex wisely as the price of oil shot to $147 a barrel put in place an investment strategy that hinged on oil trading in the range of $38-$60 a barrel. Since the beginning of 2009 Mexico has been collecting revenues on hedged positions that give them $90-$110 per barrel today. Mexico's recent and under reported oil discovery in the Palaeo Channels of Chicontepec has placed it third in the world for oil reserves, right behind Canada and Saudi Arabia.
The following is a quote from Rosalind Wilson, President of the Canadian Chamber of Commerce on March 19, 2009. "The strength of the Mexican economic system makes the country a favorite destination for Canadian investment".
I would offer a word of caution for investors in Mexico. Do not be seduced by the endless natural beauty that is everywhere, both inland in colonial towns and along thousands of miles of beach. Apply conservative medium and long term investment strategies without emotion. The demand for full and part time living by American and Canadian Baby Boomers is evident throughout the country. The top two choice locations are ocean front, and ocean view. The third overall choice, which is less expensive, is inland in one of the many beautiful colonial towns or small cities.
Mexico, with the world's 13th largest GDP, is no longer a "Third World Country", but rather a fast growing, economically secure state, as the most recent five-year history of its financial markets when compared to the U.S.A.'s financial markets suggests.
DOW JONES AVERAGES:
MAY 2004 10,200 - MAY 2009 8,200
20% LOSS IN 5 YEARS
MEXICAN BOLSA
MAY 2004 10,000 -
MAY 2009 23,000
130% GAIN IN 5 YEARS
By Robert P. Miller, PhD
535 Westfield Rd, Suite 100
Charlottesville, VA 22901
Click for more information on: Mexico Real Estate ,Baja Real Estate, Rosarito Real Estate, Ensenada Real Estate, Cabo Real Estate,Tijuana Real Estate
By: Capt. Pat Rains | Wednesday, June 01, 2011 12:01:00 PM |
Last updated: Wednesday, June 01, 2011 12:01:00 PM |
Three studies released last month paint a rosy forecast for boating tourists planning to visit the states of Baja California Sur on the Pacific and Quintana Roo on the Caribbean side of Mexico, according to Mexico Business Web (MBW) news service. 
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| Photo by: mexicoboating.com | | Boating Tourism Up, Report Says -- Economic growth of 5.8 percent was reported in Baja California Sur’s boating areas, including Los Cabos, according to reports from Bancomer and SECTUR -- with investments in marinas and revenue from golf courses all on the upswing. Dockmaster Capt. Jim Elfers is pictured here at Marina Puerto Los Cabos, one of the region’s newer marinas. | |
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Bancomer, the country’s leading bank, reported an economic growth rate of 5.8 percent for both Baja California Sur (Los Cabos, La Paz) and Quintana Roo (Cancun, Isla Mujeres, Puerto Morales). All locations specified by Bancomer’s study have existing marinas and more in construction.
In another study, Mexico’s federal Secretary of Tourism (SECTUR) reported that private investments during the first quarter of 2011 totaled $902 million, which is 127 percent higher than the same period the previous year. Projects include accommodations such as hotels and marinas, plus tourism infrastructure.
Gloria Guevara Manzo, head of SECTUR, said Mexico is maintaining a rapid recovery, thanks in part to its tourist attractions, and it is one of the most visited countries worldwide. Spain is building marinas on both coasts of Mexico, and other European countries are following suit.
“British are interested in investing in areas of tourism,” said British Trade Deputy Attaché Adriana Lopez in the MBW, “especially with regard to marinas and ports,” and health tourism.
Golf, anyone?
The final report from Turismo revealed that golfers brought $2 billion into Mexico last year, as green links are sprouting alongside marinas. “Golf is a growing sport and an attraction for national and international tourism, which last year accounted for 25.175 billion pesos,” said the report posted in MBW. That translates to more than $2 billion in U.S. funds.
Mexico has 168 golf courses and holds 12 championship golf tournaments each year, with 90 percent of the visiting duffers hailing from the U.S. |
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