MEXICO,
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comes of age
LATEST REPORT
December 21st, 2000




 Mexico
A dynamic member of globalization










Lic. Joaquin Ernesto Hendricks Diaz, Governor

ESTADO de QUINTANA ROO

Interview with

Mr. Joaquin Ernesto Hendricks Díaz,
Governor of Quintana Roo

March 10th, 2000

Could you give us a brief description of the State of Quintana Roo in terms of the main industries, and their development?

One way of describing the state of Quintana Roo, what it signifies for the development of Mexico, what it means for the people of the region is simple, Quintana Roo has become the state of Mexico which offers the most diverse products in the country. We provide the country with the highest exchange earners in terms of tourism. The explosion of the economy of Quintana Roo depends greatly on the tourist sector. We are conscious of the dependence that we have with the tourist sector, by this reason and this reason alone we are preparing plans for long term diversification in economic development. We are orienting the interest of the potential investors to establish themselves within the southern part of the state. The most interest has come from investment in tourism infrastructure, in order to create and diversify in tourism products. We also hope to add products that will spread investment onto new planes. It is our aim to satisfy our tourists and provide packages for them in the whole state. We will be creating new jobs in Horticulture, and agriculture. By doing so we will balance the development of the state of Quintana Roo. The benefits that we receive from tourism will assist the local people.

What in your opinion is the second most important sector in development in the state?

After tourism, we have the commercial sector which sustains the balance so far as employment is concerned and we are constantly amplifying the commercial sector to create jobs. There has been a slow down in the sector but it has traditionally been the backbone of industry close behind tourism. The region is lucky to have hundreds of miles of shoreline. Although the fishing industry has never been taken advantage of we have set up a commission to create an efficient fishing sector and our plan is to take advantage of this resource naturally without ruining the environment and protection policies. We are providing the ideal platform for fishermen to establish themselves.

There have been major developments in the construction and development of the port, Can you outline what sort of investment is required to complete the port?

This is a huge project. Cancun is in need of a very important project of this magnitude in order to start the millennium properly. Cancun is a place of great beauty, surrounded by natural beaches and archaeology as well as some of the best hotels in the world. The project is extraordinary, with over 550 million dollars which if you compare to that investment of the whole state of last year, this is clearly a mega project and we are also counting on the full support of Fonatur and everyone in the project to oversee its success.

Can you tell us about other project developments and how are you attracting foreign investment?

There are other important projects along the coast of Quintana Roo. We have a project in the south called Costa May A project that we feel will balance the region. The federal government has shown its support and Fonatur believes that the project will have a great impact. We will develop at least 1500 hectares in one project and the infrastructure of the hotels will be supported by other projects. We are building a marina dock for cruises and ships. We are currently working had on the historic projects of the region. This will attract tourism that is not only interested in beaches and sun but in really learning about our roots and giving us an opportunity to show the world the richness of our culture. In the area of Chetumal, the capital of the state we are also developing other smaller marina areas. This city is full of some of the most beautiful natural scenes that nature gives The Bay of Chetumal will be environmentally protected throughout its development.We may also build a small port for use with Central America and the Caribbean. There are also other projects in our strategy. There is a plan for the next 25 years: It was expected to reach the targets set by 2010 but I am happy to announce that we have are ahead in the time line of our goals. Communications have been improved. Roads and highways are being developed and maintained as well as the Airports of Tulum and Playa del Carmen. We want to see the state much more accessable on all levels.

With all these projects beginning, how are you funding them in principle

There has been a new law passed that contains incentives to bring in investment. Incentives that provide good, solid ground for buying land and create initiative to private sector potential. We are constructing industrial parks and help industry take off. As far as taxes are concerned, we are making attractive packages to bring the investors here. Cancun is a great place to invest. But the land in Cancun is expensive and the south is a better place to invest now. The government plan is to attract investment towards the south and this is where the most investment is needed. We are also thinking of creating a historic museum.
For investors coming to your state, what has to be done to assure investment?

I do not see anything disadvantages for investors. Only that we must make sure that the industrialization process does not interfere with the environment. This is not just here but worldwide. This is a global effort to preserve what nature gave us. We are improving the laws to ecological protection. We need to ensure that investors have long- term growth but also outline that areas such as ours will keep the balance that will help sustainable development. There has to be no doubt that the potential investor will know all the requisites, laws and areas that have opportunity.

You said earlier that there has been millions of dollars of investment, what percentage of this investment is foreign and what percentage is national?

The majority of investment is foreign, concentrated in the hotel sector. The U.S. is obviously first but more recently we have seen the emergence of Spain, Italy and Germany.

What are the prospects of seeing a greater flow of investment coming from the European Union, taking into consideration the commencement of the free trade agreement with the E.U. beginning on July 1st.

Undoubtedly, the relationship between our state, Quintana Roo and and the European Union has much potential. Even before we reach the actual starting date, we are already seeing E.U. representatives from member countries. For example, The Dutch ambassador was recently here on a visit. Also, the Prime Minister of the Czek Republic.Other official visits are scheduled for this year. We are highly interested in the future of our relations with the E.U. We also want to maintain the ties we have begun as well with countries such as Germany whom we export honey to.

What are the concerns that you may have about such a rapid growth of Cancun?

What are you doing to prevent problems of scale before they begin?

This is definitely an issue. There has to be a way to control the situation and we are addressing issues are they develop. Of course we have to be careful and keep a tight reign on all aspects of growth. The local people are also a priority for our long term plans. There is a plan of action in process and if we accept more investment into Cancun, We have to make sure that it fits in with the infrastucture and harmony of what there is.

We will hope to be back in three years time and see the new developments, what are the anticipations that you can tell us about the future?

In three years time there will be an incredible transformation. We will live them solidly and positively. We will grow in population and it will appear very differently from now.

What is your final message to our distinguished readership?

My message to this great magazine is Quintana Roo is a land of opportunity and everyone is welcome to come here and taste it for themselves. There is a lot of potential for investment and all the requirements are set to create a city of the future. Investments are very secure. In a global world everyone can have their say, we would like everyone to have their say in Cancun and the State of Quintana Roo!


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© World INvestment NEws, 2000.
This is the electronic edition of the special country report on Mexico published in Forbes Global.
July 3rd 2000 Issue.
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