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Analysis

Broadening the appeal: Diversifying options for tourists and visitors
OBG
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Proximity with the US, particularly California, has made Baja California (BC) an historical access point for tourists seeking everything from beaches to extreme sports to retirement tranquillity. Every year BC’s border sees around 30m inbound crosses from the US. That influx does not include those coming through its airport and seaports, and the state receives more than 16m visitors from abroad…

Analysis

Location, location, location: Connectivity is key to making the most of the state’s unique position
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With close to 60m crossings per year in both directions, the boundary between Baja California (BC) and the US is the most crossed border in the world. BC is one of six Mexican states that share a border with the US, as well as being one of 11 states with access to the Pacific Ocean coast. The administration is looking to expand the existing infrastructure by including, as part of the State Development…

Analysis

Value from integration: Regional relationships are key to manufacturing’s future health
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As in many other sectors, proximity to US markets has been a strong driver of Mexican manufacturing, and Baja California (BC) has developed important infrastructure for the simplification and efficiency of international commerce. Many examples exist, including border crossings, railroad, highways, seaports and airports, which make commercial exchange easier not only with US markets, but also with…

Analysis

Turning ideas into businesses: Encouraging creativity and providing new ways to access the market
OBG
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On the back of repeated years of economic growth, more and more Mexicans are taking advantage of the macroeconomic stability and sizeable domestic market to create new businesses. An assortment of start-ups has been popping up across the country, especially in places like Guadalajara, Monterrey, Tijuana and within the populous Mexico City, the country’s capital. While it is estimated that…

Analysis

Change the channel: Reform is already bringing dynamism to the TV market
OBG
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Included in the telecoms sector’s reform, Mexico’s broadcasting market is set for a major transformation. New regulations allowing foreign ownership, a stringent reining in of dominant market players and a move towards digital terrestrial TV are set to change the entire environment. Although less dynamic than TV, radio and press remain important media vehicles, especially through their regional…

Analysis

Home away from home: Constitutional amendment will ease foreign ownership in coastal areas
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The real estate sector is expecting a wave of investment from overseas with the lifting of a law restricting foreign ownership of land within 50 km of the sea. A change in article 27 of the Mexican Constitution is set to ease ownership rules and attract an inflow of foreign buyers. The measure should provide encouragement for the vacation-home market, which has been negatively affected by the financial…

Analysis

Modernisation drive: New PPP law is likely to attract private investment in infrastructure
OBG
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Accompanying reforms in sectors such as energy and telecommunications, the government is rolling out an ambitious infrastructure development effort to support economic growth over the coming decades. President Enrique Peña Nieto announced in mid-2013 plans to channel MXN1.32trn ($102.56bn) to improve roads, airports, railroads and communications infrastructure. The World Economic Forum’s “Global…

Analysis

Building connections: Reorganising logistics platforms could help companies reduce costs
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Infrastructure development has helped expand Mexico’s transport system and strengthen logistics activities in the country. High among the reasons for this is the fast growth of containerisation, coupled with increased connectivity between transport modes. “Interconnection between different kinds of transport increased in 1995 with the privatisation of the national railways, because some of…

Analysis

Greater competition: The economy has benefitted from the modernised rail system but new laws may change the rules for operators
OBG
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A successful privatisation of Mexico’s railway network and an increase in trade with the US has helped strengthen rail transport across Mexico. Having established itself as a strategic freight carrier for manufacturing inputs, agricultural goods and the mining industry, the sector now faces challenges from legislators aiming to open Mexico’s railways to more participants. “In Mexico, railway…

Analysis

Blockbuster potential: The film industry’s success continues following international recognition
OBG
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In recent years the Mexican film industry has seen strong growth. The year 2013 was especially good for the industry, with a record 99 commercial releases and two box-office blockbusters. This growth has been in large part fuelled by incentives. As Mexican productions gain increasing international recognition, some are calling it “a new renaissance” in Mexican cinema. PRODUCTION BOOM: The…