Tianguis Turistico 2003 Concludes as Mexico's Leading Tourism Authorities Report Strengthening...

News Editors/Business Editors/Travel Writers

ACAPULCO, Mexico--(BUSINESS WIRE)--April 3, 2003

Tianguis Turistico 2003, one of the leading tourism promotional and commercial events of its kind in Latin America, closed today in the port city of Acapulco on a high note as Mexico's

The four-day event, which primarily focuses on commerce in Mexico's tourism sector, concluded Wednesday with a closing message from Mexican President Vicente Fox, as well as addresses from Secretary of Tourism Leticia Navarro Ochoa and the Mexico Tourism Board's General Director Maria Elena Mancha.

"Tourism is a fundamental activity for several reasons, which include its significant impact on employment throughout the country, in addition to the fact that tourism is a dignified and efficient development and job creation alternative for many of the most remote regions of Mexico," President Fox said in a pre-recorded video message. "Tourism is now one of the fundamental activities of our economic agenda because it is a valuable tool to activate the domestic market."

As a commitment to his pledge last year in making tourism a national priority, President Fox said that in 2003, Mexico would invest approximately $1.4 billion in the sector. In reference to the possible downturn in international tourism and the current conflict in Iraq, Fox said Mexico could benefit as many tourists are cutting back on their travel distances. "For our American friends, for example, Mexico's tourism destinations are now closer than ever before," Fox explained.

Secretary Navarro announced that Mexico's tourism sector - the nation's third highest source of income -- is strong despite today's challenging economic environment. She said that in the five-month period from September 2002 to January 2003, a Banco de Mexico report revealed a total of 7.8 million foreign tourists visited Mexico, a 9.1 percent growth over the previous comparable period. During that same period, the tourist spending also increased by 18.5 percent to 3.62 billion dollars, while average spending by tourists rose 9.8 percent.

Tianguis, the largest fair of its kind in Latin America and the seventh largest in the world, brought together 2,166 exhibitors and 1,253 buyers from 21 countries. The number of buyers, including tour operators, wholesalers and travel agents, represented a six percent increase over last year's show.

"I am pleased to note the attendance and participation of buyers and sellers at the 28th edition of Tianguis in Acapulco - a fact that bears witness to the great vitality and dynamism characterizing the tourism industry," Navarro said in the conference's closing speech. "The success achieved in negotiations at Tianguis unquestionably reaffirms the strength and drive of this noble and productive activity that is a wellspring of progress and well-being for many people."

Some 680 companies scheduled 16,550 pre-arranged business appointments in the show's 423 business suites. Exhibitors represented the following regions: Mexico (569), the United States (400), Latin America (103), Canada (94) and Europe (83). More than 400 media (170 international and 240 domestic) were present at the show. Richard Copland, president and CEO of the American Society of Travel Agents (ASTA), delivered the show's keynote address.

Mancha reported international buyers and sellers agreed that the most popular Mexican destination at this year's convention was Cancun. Other top-selling destinations included: Puerto Vallarta, Acapulco, Los Cabos, Mexico City and Riviera Maya.

"There can be no doubt that your presence here is of great importance and it is a clear sign of the common objective we all share: to endorse the essential role played by tourism activity around the world," Mancha said. "Over the past 28 years, this forum has established itself as an event whose significance for our country's tourism has been amply shown, thanks to the participation of business people, tour operators, service providers and other agents from home and abroad."

She also reported that national buyers said 44 percent of the pre-arranged appointments were held and that these deals account for 37 percent of their annual sales volume. For international buyers, Tianguis is even more important as 64 percent of their tourist business is carried out or completed at Tianguis, accounting for 35 percent of their business sales.

At the closing ceremony, the Pluma de Plata and Lente de Plata awards were presented in recognition of the important role played by the international travel press in educating and encouraging travelers to visit Mexico. This year's North American winners were:

-- Pluma de Plata, Article in English -- Nick Gallo, Alaska

Airlines Magazine, "Magnetic Attraction"

-- Pluma de Plata, Article in English -- Judy Waytiuk, National

Post (Canada), "People of the Clouds"

-- Lente de Plata, Video -- Norm Neuweiler, National Geographic

Today, documentary series on the destinations of Mexico

-- Lente de Plata, Photograph - Judith Haden, Seattle Times, "La

Guelaguetza"

Other news from Tianguis

ASTA President and CEO delivers keynote; calls current travel market ideal for Mexico

Richard Copland, president and CEO of the American Society of Travel Agents (ASTA), today addressed the state of the travel industry and its impact on Mexico during his keynote speech at Tianguis Turistico 2003.

"Americans are traveling closer than ever not because of terrorism or security issues but mainly because they don't want to be stranded (far from home)," Copland said. "In addition, people are taking shorter trips a few times a year. The market is ideal for Mexico right now."

In his speech, "Travel Partnerships in Challenging Times," Copland also said that because of the transportation system's heightened security measures improving safety and security that "we've never been safer." Copland also predicted that once the war in Iraq is contained, the industry would see an enormous explosion in travel from the U.S.

Mexican Congress eliminates 15 percent sales tax on international conventions

The Mexican Congress announced it will suspend sales tax on international conventions held in Mexico. The new law will go into effect January 2004. The current bill reforms the Value Added Tax (VAT) Law imposing a 15 percent sales tax on international meetings and conventions held in the country. This is a key step in recognizing the importance of the $1.5 billion meetings and conventions market in Mexico, making Mexico a more competitive destination in the meetings, conventions and incentive travel industry.

"This is a key measure to support the hospitality industry," said Leticia Navarro Ochoa, Mexico's Secretary of Tourism. "We worked hard to convince Congress of this."

Mexico is quickly becoming a leading international destination for meetings and conventions. In 2002, the Mexico Tourism Board (MTB) invested nearly $7 million in promoting the business tourism segment, and has increased its presence at a variety of international incentive travel industry events, including CONFEX in London, the European Incentive, Business Travel and Meetings exhibition (EIBTM) in Geneva, Switzerland and IMEX in Frankfurt, Germany.

For more information about Tianguis, please visit http://www.tianguisacapulco.com. For more information on Mexico's many destinations, call 1-800-44-MEXICO or visit http://www.visitmexico.com. The press section of the Web site - http://www.visitmexicopress.com -- offers thousands of easily accessible archived photos for media usage.