Since 2001, the Mexico real estate marketalong key nautical points on the Sea of Cortez and the Pacific coast of Baja California, have been anticipating the benefit of a newEscalera Nautica project a project which was created to improve the infrastructure of the marinas in the Sea of Cortez/Baja California area, increase the number of nautical centers, and overall increase the appeal of nautical tourism in this part of Mexico. As the plan develops, marina traffic will increase, and regions such as the Mazatlan real estate and La Paz real estate markets will probably see an increase in property ownership and rentals convenient for yacht owners.

Up until this year the project has been implemented mostly by investment from FONATUR (Mexico s program to develop and promote tourist destinations that have greater potential) and state and regional governments. The project, which is just concluding its first phase, already includes 8 marinas. It is expected that several of these marinas will introduce new Mexico homes and condos and possibly golf courses to complement the marinas.This year, as the project enters its second phase, FONATUR has decided to seek a greater amount of private investment for the project, selling some of the marinas, and for others giving concessions either completely or in parts, in order to move the project ahead more quickly and help continue stimulating the growth of nautical tourism in this area.

Juan Manuel Galarza, the General Director of FONATUR s department responsible for ports, confirmed that FONATUR is currently in discussions with the investment bank, Merryll Lynch.The bank is considering taking responsibility for promoting the new strategy and finding corporate investment. Galarza stated that FONATUR is investigating its options and determining which marinas will be better to sell and for which ones concessions will be given. He emphasized that the project has not been cancelled, but is simply increasing its investment base.

Galarza also noted that the process of finding investors will move ahead little by little, in consideration of delays which the project has encountered and of the current recession. On the other hand, FONATUR has already been approached by various Mexican and foreign companies interested in being involved in the investment. While the names of the companies still cannot be released, Galarza is confident that deals will be underway before the year s end.

The project has plans for 24 nautical stopping points; of these 8 have been completed and are functioning completely. Other than Mazatlan, marinas have also been completed in Puerto Escondido, La Paz, Santa Rosal a, San Felipe, Guaymas, Puerto Pe asco y San Blas. Likewise, two more are under construction in Topolobampo y Santa Rosalita. The current investment totals about 35 million dollars (500 million pesos); in order to move the project ahead a faster rate, the further investment sources will be necessary.

Although slow, the project has been successful so far in terms of bringing maritime tourism to the marinas, generating economic activity in these areas. The Sea of Cortez / Baja California area offers a lot in terms of tourist destinations. The area is rich in natural beauty, and in biological diversity; one example of this is that these waters include breading areas for grey whales, whale sharks and sea cows.

By 2014, the project aims to offer its benefits to 50,000 private boat landings and about 5,300,000 tourists and to create 29,000 permanent jobs. Besides the economic benefits, new marina real estate will also become available as the project continues. Mazatlan s marina has already brought increased tourism; as the new investment allows the project to grow, travelling between ports will become more convenient and marina traffic will continue to increase in Mazatlan. An increase in Marina tourism can only be good news for Mazatlan real estate, bringing more possibilities and opportunities into the market.

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Thomas Lloyd, graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years.  Mexico