Spoke yesterday with a marketing developer who is involved with projects in different areas of Mexico, and questioned him with how the marketing has been going for his projects over the last few months. He concurred with Softec, that there has definitely been a slowdown over the past four-six months, although it has been less noticeable in Vallarta when compared to other parts of Mexico. He is especially active in Cancun, and its been quite difficult there. People are concerned about a number of things, but especially hurricanes. They just don’t think its a good idea to have a second home in a place that is frequented by very strong hurricanes (sounds sensible to me). Vallarta does not have to deal with that objection. He has new projects coming online, but emphasizes that he’s telling his developers that they better have something unique to offer or he’s not interested in marketing it; there’s just too much good competition out there. He projects a leveling off of the market for 2008, back to normal after some very good recent seasons, at least until the USA election is over and the economy has come to grips with the current credit crunch. He concurs that the sub-prime doesn’t really effect our market, but a lack of credit does. Even though we have been a “cash” market, much of that came from people refinancing back home. That won’t come so easy in 2008.
National Marketing Developer’s Perspective