A rich history backlights its dynamic 21st Century.
Located in the high plateaus of south-central Mexico lies Mexico City — the country’s capital and largest city. It is also one of the oldest cities in the world. The city was originally built as Tenochtitlan by the Aztecs in 1325 and it remained part of the Aztec Empire for nearly 200 more years. When the Spaniards arrived in 1519, Emperor Montezuma unwittingly accepted Hernándo Cortés and his band of men into his fold (thinking they were descendents of a god). Two years later the city lay in ruins having been defeated by Cortes and his Indian allies.
The city was designed and rebuilt in accordance with Spanish urban standards. And, as of 1525, was officially named Mexico City as part of the Spanish colonial empire.
Fast Forward
Mexico City extends over an area of 572 square miles. Its estimated 2009 population exceeds 8.84 million people; its metropolitan area’s balloons to more than 21 million. And, Mexico City is home to the largest population of US Americans living outside of the United States, with estimates as high as 600,000. Today, Mexico City ranks as the second-largest economy in Latin America. The city proper (Federal District) produces 25 percent of Mexico’s $815 billion economy, making the city alone the 30th largest economy in the world.
As one of the world’s fastest growing economies, Mexico City’s GDP is expected to double by 2020.
Although Mexico has a well-deserved reputation as a playground, it is also very good at doing and facilitating business. In 2008, Mexico had 16 companies listed in the Forbes Global 2000 list of the world’s largest companies. Similarly, many international companies have a presence in Mexico City. As a leading Latin American center of the advertising industry, many international ad firms maintain offices here including Leo Burnett, BBDO, Ogilvy, Saatchi & Saatchi and McCann Erickson.
But there’s considerable domestic wealth, too, and the number and fortunes of local power players are growing. The city is the focal point in Latin America for the music, television and film industries. The two largest media companies in the Spanish-speaking world — Televisa and TV Azteca — are headquartered here.
Aside from international travel, there is a great deal of domestic travel to Mexico City, for both business and leisure. Once known as the City of Palaces, Mexico’s history is ever present, and the city’s many attractions include nearly 160 museums, more than 100 art galleries and 30 concert halls. In addition, it has the fourth highest number of theaters in the world, following New York, London and Toronto. It’s no wonder that tourism is among the main industries that support Mexico City. According to a statement made last year by Alejandro Rojas Diaz-Duran, Mexico City government’s tourism chief, two-thirds of Mexico City’s economy is somehow linked to tourism. It generates a million jobs and around 4 billion US dollars a year, equivalent to some 8 percent of the capital’s gross domestic product.
And to this end, meetings and conventions are pivotal to the overall economy of this global city.
Meetings & Conventions
As an economic leader in Latin America, and with its emergence into North American and European markets, Mexico has the aptitude for the development and consolidation of any type of commercial trade.
These traits have advanced the demand for exhibit spaces in recent years, primarily in Mexico City. Early on in this decade, business travel was on the upswing and the government and private sector began investing in new convention hotels and millions of dollars were spent in hotel renovations that focused on meeting and banquet space.
That being said, and in consideration of hosting a meeting or convention in Mexico City, its mere size may be daunting. It is beneficial to know that most business takes place in one of three neighborhoods:
• The Centro area which is largely a district of banking and government;
• Polanco, home to embassies, management consulting firms, financial companies, media and public relations agencies;
• and Santa Fe, 7.5 miles from historic downtown, and the city’s newest development, where many international companies have their local offices.
Aside from understanding the lay of the land, it is important to note that an exemption from Mexico’s 16 percent VAT was introduced for international conventions in 2004. Quite a savings.
The Mexico City Convention & Visitors Bureau is designed, as are its US counterparts, to assist with suppliers, services and local venues for a meetings, events or conferences. The city’s conference venues support a CVB policy of continual investment in technology and equipment. Further, the service levels are constantly monitored and benchmarked against other top meeting destinations.
One such venue is the Centro Banamex, located in the northwest section of the city. It is a convention center that can accommodate several thousand attendees and is readily available for corporate conferences, meetings and industry trade shows. A team of professionals can assist in creating a truly memorable event. For three consecutive years, Centro Banamex has been cited as the best convention and exhibit center in Mexico, with successful events like the World Water Forum, World Congress of Families, Microsoft 100th Anniversary and World Aids Conference, among others. It boasts 365,973 square feet of exhibit space plus 75,347 square feet of meeting space with 25 breakout rooms. An alliance created by Centro Banamex offers some of the best lodging and transportation options in the city by integrating:
• Six 5 star hotels
• Camino Real
• Melía Mexico Reforma
• Hotel Nikko Mexico
• Presidente Intercontinental
• Hilton Mexico City Reforma
• Sheraton María Isabel
• Group fares through Aeromexico and the Skyteam network
• Shuttle transportation between the venue and hotel
One of the most famous and recognizable buildings is the Mexico World Trade Center. Located in the heart of the city, it is the fourth tallest building in Mexico City. Its 52 stories offer 258,333 square feet of exhibition space, 43,000 square feet of meeting space that includes 23 breakout rooms, and other amenities that cater to international business. This magnificent structure was once known as a white elephant, and it took nearly 30 years to realize its intended purpose. It was originally slated to open as the Hotel de Mexico for the 1968 Olympics (it did not open in time). This project/facility was also to feature a center for business, culture and tourism. The project ran over schedule and budget, and eventually bankrupted its owners. However, the building was transformed and opened its doors in 1995. Today, more than 1,000 events and 120 exhibitions are held here that attract 3.5 million visitors annually.
The Expo Bancomer Santa Fe is another exhibit and convention center in the Santa Fe area of the city. The center affords more than 334,000 square feet of exhibit space, 55,000 square feet of outdoor expo space, and 60,000 square feet designed for business meetings, conventions and conferences. Ten hotels are nearby, including chains such as Holiday Inn Express and Sheraton Suites.
When it comes to hotels, there are reportedly 177 hotels representing all categories in Mexico City. As we quantify on 4 and 5 star hotels best suited for business people, there are 53 such properties within a 12 mile radius of the city’s center. Among them, and also duly noted as excellent venues for conferences and business meetings are:
• Sheraton Maria Isabella Hotel & Towers-755 guest rooms and more than 25,000 square feet of meeting space
• JW Marriott Mexico City-312 guest rooms/suites with 9,386 square feet of meeting space
• Four Seasons Hotel Mexico-240 guest rooms/suites with 13,000 square feet meeting space
• W Mexico City Hotel-230 guest rooms with 7,700 square feet of meeting space
The former Sheraton Centro reopened its doors in December 2009 as the Hilton Mexico City Reforma and became the first Hilton hotel in Mexico City’s business district. Strategically located at a gateway to the business district, it is a stone’s throw away from major corporations and financial institutions. This Hilton features 458 guest rooms and suites and is the largest hotel convention center in the city with nearly 45,000 square feet of meeting space.
On The Upside Of Down
Virtually no city has escaped the downward spiral of the economy and 2009 hit Mexico City hard. It was combating the throes of the recession/depression and was dealt another bad hand when the H1N1 (swine) flu besieged the city in April. Talk about diminishing occupancy rates — some hotels’ occupancy dropped to the single digits. Overall, occupancy rates bottomed out in May 2009. As reported by Smith Travel Research, May’s occupancy rate was 24.3 percent — a negative percent change of 59 percent when compared to May 2008. The ADR for May was $95.33, representing a negative percent change of 27 percent from the previous May. As of January 2010, an ADR of $106.66 is reported, along with an occupancy rate of 46.6 percent. This represents a 4 percent increase over January 2009.
All things being relative, these figures are not exceptionally low. “To see an increase of 4 percent could be a sign of stabilization in Mexico City,” says Jeff Higley, vice president of digital media & communications for HotelNewsNow.
And, meetings and conventions continue to be on the docket for Mexico City this year. To name just a few, there is the:
• Expo Forum 2010, transportation event linked to the carriage of passengers in Mexico (March)
• Expo Finanzas 2010, an international exhibition & conference specializing in financial services (March)
• Saie Mexico, an international building show (May)
• Paace Automechanika Mexico, an international trade exhibition for automotive original equipment, aftermarket and remanufacturing (July)
• Enviro-Pro/Techomex, an international trade fair and congress for environmental technology and recycling (September)
And, conventions are being booked for 2011 and beyond.
This year Mexico celebrates its Bicentennial. Although history tells us that Mexico became independent from Spain in 1821, it is the 1810 anniversary, which marks the beginning of the independence movement, that will be celebrated this September 15 and 16. In addition, 2010 marks the Centennial of its Revolution (in November). The entire year has been proclaimed as the “Year of the Nation,” and celebrations and projects are in place to commemorate both anniversaries.
A monument to commemorate the bicentennial will be constructed in Mexico City along the Paseo de la Reforma, the city’s main avenue, beside the Torre Mayor. Two 104-meter high columns made of steel and covered in quartz will be inaugurated as the Bicentennial Arch on September 15, 2010.
Ruta 2010 or Route 2010 signs are in place on many of the nation’s highways and roads. These routes link to monuments related to both events, as well as movements of armies and other key players of both the Bicentennial and Centennial.
Over 245 acres have been set aside for a Bicentennial Expo Park in the state of Guanajuato, where a type of world fair will take place from July through November, 2010. The Park’s grand opening is planned to take place on July 10, 2010, and special events will be held on September 15.
There are meeting discounts and packages being offered by many hoteliers. Mexico City is ready when you are and is served by the Mexico City International Airport, also known as the Benito Juarez International Airport (MEX). MEX is Mexico’s and Latin America’s busiest airport, transporting more than 24 million passengers in 2009. In recent years, the Toluca Airport — the Licenciado Adolfo López Mateos International Airport — has become a major alternate airport. It is a great option and only 30 minutes from the Santa Fe financial district.