Tag Archives: Fonatur

Huatulco

Huatulco’s Next Wave: Adapting to Mexico’s Changing Tourism Priorities

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By Randy Jackson

Each year, when we arrive at La Bocana for the first time, boogieboards tucked under one arm, we stop to see how the forces of nature have reshaped the beach since our last visit six months earlier. The sand is never the same; sometimes subtly shifted, sometimes dramatically reformed. But we always adapt. We watch the waves, find the rhythm, and surf. Huatulco, too, is shaped by forces of change, not only hurricanes and earthquakes but shifts in national policy and priorities. These changes may not be as visible as a redrawn shoreline, but they carry consequences just the same.

A New Presidency, Old Currents

This year, Mexico marks the first anniversary of President Claudia Sheinbaum’s term. She has been celebrated for breaking gender barriers and bringing a more academic tone to politics. But for resorts like Huatulco, the most significant shifts began earlier. The rethinking of tourism as an economic driver, along with the changes implemented by agencies like FONATUR, took root under the administration of former President Andrés Manuel López Obrador. So far, Sheinbaum appears poised to follow those policies.

The Fourth Transformation

To understand how Huatulco fits into this national realignment, it’s helpful to revisit what AMLO called the Fourth Transformation, his sweeping effort to redefine Mexico’s relationship with markets, foreign investment, and development itself. Drawing on three foundational periods in Mexican history—independence from Spain, the 19th-century Reform movement, and the Mexican Revolution—AMLO positioned his administration as the next great change. AMLO’s Fourth Transformation (4T) marked a departure from decades of neoliberal policies, aiming to reclaim national sovereignty and redistribute power away from economic elites, allowing the state to play a more active role in development.

Whether the 4T will live up to its historical billing remains to be seen. Still, President Sheinbaum has made her stance clear: “We are going to deepen the transformation, not reverse it.” For Huatulco, like other destinations born under FONATUR’s original vision, the Bob Dylan refrain still applies: The times, they are a-changin’.

FONATUR’s Rise and Retreat

Mexico continues to invest heavily in economic development, but large-scale, master-planned tourist resorts are no longer the centrepiece. When FONATUR was created in the 1970s, its mission was to plan, finance, and build integrated tourism destinations in remote coastal areas. The federal government would install airports, roads, water systems, and other infrastructure, setting the stage for private investors to bring hotels, restaurants, and jobs. The result was supposed to be a trickle-down boost for nearby communities.

In the 1980s, FONATUR transformed a string of untouched bays along Oaxaca’s coast into the resort of Huatulco. For some time, the concept seemed viable. But like the beachgoers adjusting to new surf, FONATUR found itself navigating shifting economic currents. The global tourism market for beach resorts became crowded, and other destinations, such as Caribbean all-inclusive resorts, and even competing FONATUR projects like Cancún and Los Cabos, offered cheaper and easier alternatives to Huatulco.

From Resorts to Railways

Still, the lesson took some time to sink in. FONATUR continued launching new mega-projects, such as Loreto in Baja California. In 2007, Loreto briefly topped destination real estate sales charts. However, the 2008 global financial crisis and subsequent U.S. recession halted the momentum. Investors paused. Projects stalled. And gradually, Mexico’s tourism strategy began to shift.

Under President Peña Nieto (2012–2018), a sector-wide review led to a curtailment of FONATUR’s expansion. Funding to destinations like Huatulco focused more on infrastructure maintenance than growth. Then came AMLO, who dramatically reoriented the agency. FONATUR’s traditional role in resort development and maintenance was significantly reduced. Resources were redirected to the Maya Train, a controversial infrastructure project billed as a tourism initiative, although it is perhaps better understood as a regional economic development initiative. President Sheinbaum has embraced and extended this strategy, most recently announcing the Maya Train’s expansion into Guatemala.

For Huatulco, this confirms what many already sensed: the national spotlight has moved elsewhere. The cartoon image below may exaggerate the moment, but the message is real: while some of us wave tourists into the surf, a much larger wave of policy, budget, and priorities is cresting behind us.

Still, FONATUR isn’t gone. It remains a significant landholder in Huatulco, controlling the unsold parcels from its original 1984 expropriation. The question is whether it can be repurposed as a steward, rather than a builder, which is less about launching new resorts and more about maintaining what already exists.

A New Kind of Partnership?

A new pivot might align well with Sheinbaum’s emphasis on sustainability. For Huatulco to ride the next wave, a new kind of partnership is needed —one that brings together FONATUR, the state of Oaxaca, and local stakeholders at the same table. A coordinated strategy could target essential needs, such as water and sewage infrastructure. Revenues from FONATUR’s Huatulco land sales, combined with FIDELO’s operational expertise and input from local businesses, could support a development plan that is realistic, sustainable, and tailored to the region’s needs.

Surfing Ahead

Whatever form it takes, the priority must be to protect what sustains Huatulco’s economy while preserving the natural beauty that draws people here in the first place. If successful, it could offer a model for other FONATUR-born resorts navigating similar transitions.

As President Sheinbaum completes her first year in office, balancing domestic pressures and global uncertainties, this type of pragmatic regional initiative could represent a meaningful path forward. The wave of change is real, and while Huatulco may seem like a small fish in Mexico’s broader political sea, it is of significant importance to us Huatulcoites. And as the surfers at La Bocana know, timing and effort often make the difference between riding the wave and being pulled under.

Huatulco

Stumbling Steps Towards Huatulco’s Pedestrian Corridor

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By Randy Jackson

Two years ago, in an article titled The Saga of Quinta Avenida (5th Avenue), I reported on the decades-long, start-and-stop development of the pedestrian walkway connecting Santa Cruz and La Crucecita. This corridor, signed as Andador Peatonal (Pedestrian Walkway), started as a project under the presidency of Felipe Calderón (2006-12) through the tourism development agency FONATUR (Fondo Nacional de Fomento Turismo). Since that time, some buildings have appeared along the walkway, although none have been completed, as uncertainties have stalled or slowed investments.

Comparison with Other FONATUR Projects
Pedestrian tourist corridors are a standard feature of FONATUR’s other resorts, and exist in Cancun (Playa del Carmen) and Ixtapa. They are all named 5th Avenue after the famous shopping street in New York City. However, starting right out of the development gate, Huatulco’s 5th Avenue faced one challenge the other resorts did not: Huatulco’s walkway climbs a significant hill. Yet in 2020, after FONATUR reconfigured the sizes of the lots, private developers (and likely some are speculators) stepped up to purchase all twenty-four lots available for sale, possibly buying into the notion “If you build it, they will come,” made popular by the 1989 film, Field of Dreams.

Recent Developments and Challenges
That notion may eventually apply to Huatulco’s pedestrian corridor. As of mid-February of this year, there were seven buildings, two of which appear nearly complete. One of these buildings has multiple retail locations with full glass storefronts; the other is a condominium near the sports complex. When sold, the lots had a covenant requiring the owners to complete their development by December 31, 2025, or face financial penalties. Some owners will undoubtedly exceed this period as most lots show no sign of construction.

Parking and Accessibility Issues
The corridor’s development calls for a mix of residential and retail properties, with 30% of the lots intended for hotels. When the corridor is fully developed, it could attract hundreds of daily guests and visitors, raising the question: What about parking? Parking areas have been allocated for each end of the corridor. On the Santa Cruz end, a 7,132 square-meter (almost 77,000 square feet) parking lot will parallel Santa Cruz Boulevard, next to the Pedestrian Corridor entrance. On the La Crucecita end, two separate lots stretching along the road behind the Naval hospital will total 4,927 square meters (over 50,000 square feet). This could allow approximately 150 to 175 parking slots on each end (using an AI model for the calculation). The parking areas are owned and managed by the corridor lot owners’ association, which is also responsible for ensuring security and maintaining the corridor. As of mid-February, no work has been done on the designated lots for parking.

The Present and Future of the Pedestrian Corridor
The pedestrian corridor stretches about 600 meters (about 660 yards) from end to end. It comprises a walking area on both sides of a single-lane service road. On foot, this traffic-free route is about one kilometre shorter than following the roads between Santa Cruz and La Crucecita. Many people now use this shortcut daily. And where pedestrians go, motorcycles can, regardless of the signs prohibiting motor vehicles. Unfortunately, the corridor has already been the scene of one motorcycle fatality.

Financial Viability and Investor Confidence
The surge in development along the corridor that began in 2022 has since stalled, leading to a financial dilemma for investors. For a pedestrian corridor to thrive, sufficient businesses must operate to draw customers. If the number of open businesses falls below this threshold, the financial viability of new stores, restaurants, and accommodations can be precarious until sufficient foot traffic exists. Furthermore, the earliest developments to open may face additional challenges from construction activity needed for subsequent projects, which can reduce pedestrian traffic. This would have been the rationale for having the time limit covenant for the purchasers of the lots. But that didn’t work.

Speculation on Future Developments
One can also speculate on another factor dampening investor ardour: uncertainty. FONATUR is leaving the future development of Huatulco to the State of Oaxaca, while infrastructure improvements are badly needed. Furthermore, two significant tourist assets, the golf course in Tangolunda and the convention center in Chahue, are mired in legal and political muck. How Huatulco’s 5th Avenue will fare in that context is far from certain.

Conclusion
The development of the pedestrian corridor thus languishes. Although many people appreciate the pedestrian route connecting Santa Cruz with La Crucecita, they will have to wait longer for businesses (and hopefully more illumination at night) to line the walkway.

For contact and comment, email: box95jackson@gmail.com

Huatulco

Huatulco after FONATUR

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By Randy Jackson

In 2023, a milestone agreement was reached that would alter the development path of the federally planned tourism resort of Huatulco. This agreement transfers the assets, responsibilities, and obligations of the developer, FONATUR (Fondo Nacional de Fomento a Turismo), to the State of Oaxaca and the municipality of Santa María Huatulco.

Huatulco was conceived, built, and financed by the federally run tourism development organization known as FONATUR, responsible for Mexico’s nationally developed resorts known as CIPs – Centros Integralmente Planeado, or fully-planned [tourism] centers, the first of which was Cancún in 1974. Prior to development, the Huatulco area was a pristine collection of bays and isolated fishing villages without road connections. Since 1984, FONATUR has developed, maintained, and operated Huatulco through the administrations of several different presidents. Under the recent presidency of Andrés Manuel López Obrador (AMLO), in a bid to decentralize tourism management in Mexico, the entire resort of Huatulco, along with the Mazatlán Marina, Los Cabos, Ixtapa, and parts of Cancún and Cozumel, were all slated to be transferred from FONATUR to state and local authorities. For Huatulco, this transition has begun.

In this article, I outline what we know about Huatulco’s FONATUR transition, its implications, and some of its current challenges.

The Transfer Agreements

1) Convenio General de Colaboración (General Collaboration Agreement), dated May 30, 2023. The agreement states that FONATUR transfers public services and infrastructure management in Huatulco’s CIP to the state government, including roads, water systems, lighting, and waste management. FONATUR will donate related assets and collaborate with the state of Oaxaca during the transition.

2) An agreement dated December 29, 2023, effective January 1, 2024. This agreement formalizes the transfer of infrastructure and public service management in the Huatulco CIP from FONATUR to the state of Oaxaca and the municipality of Santa María Huatulco. It includes transferring assets like water systems, waste management facilities, roads, green spaces, and financial support of $143.8 million MXN ($7.2 million USD) in 2024 to ensure seamless operations.

3) A modification agreement, dated January 4, 2024, amends the above agreement to designate FIDELO (Fideicomiso para el Desarrollo Logístico del Estado de Oaxaca, or the Trust for the Logistical Development of the State of Oaxaca), a state-run entity, as the primary entity to manage the transferred assets and oversee services like water supply, sanitation, and waste management.

The transfer agreements also state that FONATUR remains the legal title holder of the properties until all legal and administrative approvals are secured. It also states that FIDELO is to provide quarterly and annual reports to FONATUR detailing the operation and maintenance of the transferred infrastructure and services. These reports are to include financial statements, operational metrics, and compliance with established service standards. These reports have not been made public.

Enter FIDELO

FIDELO is a parastatal entity (a public corporation) created by the state of Oaxaca on February 15, 1997. Its main objective is to position the state as a competitive region for developing various productive sectors through the promotion and execution of logistics, social, commercial, and tourism projects. Among the functions of FIDELO are to:

· carry out infrastructure and urbanization works
· obtain credits and grant guarantees for financing
· enter into agreements with public and private entities to promote the state’s economic development

FIDELO has been involved in various projects in Oaxaca, notably revitalizing the Parque Industrial y Maquilador (Industrial and Manufacturing Park) in Magdalena Apasco, Etla (outside Oaxaca City). However, public information on FIDELO’s other projects is limited.

FIDELO has now assumed the public services and infrastructure management previously performed by FONATUR in Huatulco. This includes the water and wastewater systems, parks and boulevard maintenance, solid waste collection, landfill operations, infrastructure maintenance, and all areas of administration required for such services. FIDELO has appointed Lorenzo Lavariega Arista, a former president of the municipio of Santa María Huatulco, as Director of Tourism Center Development. He has an office in Huatulco.

When FIDELO assumed its current Huatulco obligations from FONATUR, it incorporated all the FONATUR staff who provided the transferred services. There followed a staff reduction of about 25%. Lavariega has said he expects the staffing level to increase as the budget allows. Both state and federal 2025 budgets are expected to be approved before the end of December 2024.

Transfer Implications for Huatulco

Transferring the Huatulco CIP from federal to local management has sparked significant concerns for residents and visitors. Oaxaca, the second poorest state in Mexico, may struggle to manage the project’s financial and operational demands. This is particularly alarming given the current inadequacies in critical infrastructure, such as potable water and sewage treatment, which are insufficient to meet existing needs. Urgent upgrades and maintenance are required to ensure sustainability and support future growth.

Additionally, FONATUR had outlined a vision for Huatulco’s future development. However, with its departure, the long-term strategy and prospects for Huatulco’s growth under state and local administration remain unclear beyond the immediate transition of services. While FONATUR has relinquished operational responsibilities, it retains a significant presence as the owner and marketer of undeveloped properties in Huatulco.

FONATUR’s underfunding of Huatulco in recent years has significantly contributed to the current challenges in critical infrastructure, leaving the state of Oaxaca, with at least some federal funding, to prioritize much-needed upgrades. Despite these pressing issues, the transition of operational control from FONATUR to the state of Oaxaca began over a year ago, but the state has not announced a comprehensive plan or future vision for Huatulco.

According to Director Lavariega, Huatulco is of great importance to the state of Oaxaca as a key driver of tourism and economic development. There are no plans for the municipio of Santa María Huatulco to assume the obligations currently held by FIDELO following the transition. Looking ahead, Lavariega anticipates that CIP Huatulco’s needs will be prioritized and addressed depending on the allocation of federal and state resources.

The transition from FONATUR to state and local control marks a pivotal moment in Huatulco’s development, and its future remains uncertain. While FIDELO has taken over essential services and infrastructure management, significant challenges persist, particularly regarding the adequacy of funding for infrastructure to support the area’s growing needs.

With Huatulco positioned as an important driver of tourism and economic growth in Oaxaca, the coming months and years will reveal whether the state can rise to the occasion and deliver a sustainable vision for Huatulco’s future. As residents, businesses, and visitors await some news of the path forward, the story of Huatulco after FONATUR is far from finished—its next chapter has yet to be written.

For comments or contact, email: box95jackson@gmail.com.

Huatulco

Navigating Progress: A New Highway to the Coast of Oaxaca

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By Randy Jackson

On February 4, 2024, the inauguration of an essential transportation artery for the Oaxaca Coast, including Huatulco, marked a significant milestone in the development of the coast of Oaxaca. La Autopista Barranca Larga-Ventanilla is a toll highway, linking Oaxaca City to the coastal road near Puerto Escondido, approximately 100 kilometers (60 miles) from Huatulco. This highway is expected to reduce travel time from Huatulco to Oaxaca City by approximately four hours and it will integrate the Oaxaca Coast into Mexico’s toll road system.

The construction of this highway over the course of 20 years has faced many challenges. The project was initiated under President Ernesto Zedillo in 1999. However, construction progress experienced numerous interruptions across subsequent presidential terms, spanning administrations from Vicente Fox to Felipe Calderón and Peña Nieto, before its inauguration by the current President Andres Manuel Lopez Obrador (AMLO). on February 4th.

The road isn’t quite finished, but it is in use. One taxi driver I spoke to drove the route the day before inauguration, and the trip to Oaxaca City took 5 hours from Huatulco. The highway is very similar to the road between the airport and Huatulco, two lanes with wide shoulders. It is a toll road but the government has announced it would be toll free for the first year. Some of the final work on the highway includes construction of the toll booths and highway connections to communities along its route.

The Use of Roadblocks

Amid the bevy of news reports announcing the inauguration of this highway were reports of two illegal blockades within 24 hours of the highway opening. One was set up by some members of the municipality of San Jerónimo Coatlán demanding an audit of their former administrator and current municipal president. Another blockade was by the municipality of San Pablo Coatlán, demanding payment for their lands and claiming they would charge a toll themselves.

Anyone familiar with driving on Oaxaca highways is aware of the issue of roadblocks. Highway blockades are an effective tool for municipalities in getting the attention of the state or federal authorities. The setting up of roadblocks within a day of the new highway’s inauguration serves as a troubling sign for users of this highway, although it should be noted that most Oaxacan roadblocks are typically short-term, allowing vehicles to pass through after a few hours. Some however, have been in place for much longer.

Roadblocks had been a major source of construction delays for this highway. Notably, one agrarian dispute between two communities which held up progress for over a year. This community dispute has resulted in up to 28 fatalities since 2008, according to Imparcial News. The expropriation of 13 kilometers of land for the new highway through these communities exacerbated tensions. The deployment of blockades to obstruct construction thrust this conflict into the limelight, capturing the attention of authorities and the wider Mexican public.

The Two Disputing Communities

Situated approximately 95 kilometers south of Oaxaca City, the two communities of Villa Sola de Vega (population 12,350) and San Vicente Coatlán (population 3,512) are both municipalities. In Mexico, municipalities represent the third tier of government, positioned below the Federal and State levels. Villa Sola de Vega spans an area of 680 square kilometers and encompasses 138 villages. San Vicente Coatlán covers an area of 105 square kilometers and includes 8 villages within its jurisdiction.

The communities’ dispute over the ownership of 19,600 hectares of land dates back to 1976. In 2006, The Tribunal Unitario Agrario 21 de Oaxaca (Unitary agrarian court of Oaxaca) ruled in favor of the municipality Villa Sola de Vega. San Vicente Coatlán disputed this, citing a presidential decree in 1754 allocating the land to them. This ruling by the agrarian court resulted in numerous acts of violence between the communities over the years, including the wounding of a state policeman in 2017.

Following AMLO’s election in 2018, he unveiled plans to prioritize the completion of the Barranca Larga-Ventanilla highway as part of his infrastructure agenda. In 2021, he personally visited these two communities, pledging to facilitate dialogue to address the conflict and expedite highway construction. However, by September 2022, the municipality of San Vicente Coatlán announced a blockade of the construction, citing perceived lack of progress toward resolution.

In January 2023, AMLO announced that his administration was in consultation with the two communities, and if a resolution could not be found within one month, an alternate highway route would be used avoiding the lands of these two municipalities altogether.

An agreement was made shortly thereafter and the construction of the highway was completed. The two communities each received 50% of the disputed lands and the Municipality of Villa Sola de Vega was to receive a gas station, a tourist inn, a communal property office, and a water and sewage treatment plant. This settlement demonstrates the effectiveness of blockades, and marks progress for these two communities.

The Road Beyond Inauguration

Although potential roadblocks and more construction delays may haunt this new highway for a time, the significance of this transportation infrastructure looks to be a game changer for Huatulco and the Oaxaca Coast. It promises economic benefits from more efficient transport of goods as well as more tourists, likely many more tourists. The increase in tourism is expected to bring more investments and jobs to Huatulco and the Oaxaca Coast.

New investments and jobs can be stymied, however, without further investments in service infrastructure, potable water and expanded sewage handling in particular. These services are at capacity in Huatulco, and exceeding capacities in Puerto Escondido. For nine years Puerto Escondido has been pumping raw sewage into the ocean, and their potable water system, like that of Huatulco, struggles to meet demand.

With the transition of Huatulco from FONATUR to the State of Oaxaca, any new service infrastructure will be the responsibility of the state. This may prove to be a test for the state government in their commitment to the development of the Oaxaca Coast. But for now at least, the road is open and Huatulqueños anxiously await future announcements of new service infrastructure to navigate further progress.

For contact or comment, email: box95jackson@gmail.com.

Huatulco

Bahías de Huatulco: Three Important Developments

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By Randy Jackson

Back in December 2021, I wrote an article for The Eye (Understanding Huatulco) that outlined some of the future uncertainty of the Bays of Huatulco as a resort area created and funded by the federal agency FONATUR (Fondo Nacional de Fomento al Turismo). The last official plan for Huatulco under FONATUR was issued by the federal administration of Felipe Calderón (2006-12). Since then, development has continued, but on a smaller scale than had been anticipated by the Calderón plan. Nonetheless, in recent years there has been a flourishing of residential real estate projects, and a continuous increase in the number of tourists, particularly domestic tourists.

Under the current Federal administration of AMLO (Andrés Manuel López Obrador), funding for and responsibilities of FONATUR were reduced in favor of AMLO’s pet project, the Mayan Train in the Yucatán. As his term comes to an end, AMLO has issued new directives that will have significant impacts on Huatulco, its current level of functioning, and its future development:

(1) The transfer of the ownership, governance, and maintenance of Huatulco from FONATUR to the State of Oaxaca and the municipality of Santa María Huatulco.
(2) The creation of three new national parks within the boundaries of Huatulco, along with the conversion of the Tangolunda golf course to a Natural Protected Area (Áreas Naturales Protegidas, ANPs).
(3) The opening of the toll road from the City of Oaxaca to the Oaxacan Coast.

FONATUR Set To Leave Bahías de Huatulco

The long-running rumor of the exit of FONATUR from Huatulco seems to have come to pass. In January of this year, the State of Oaxaca issued a press release announcing joint actions by the State of Oaxaca and FONATUR for the purpose of “rehabilitation of the Huatulco Comprehensive Planned Center [CIP, Centro Integramente Planeado].” On May 30, 2023, a collaboration agreement was announced by the federal Government of Mexico, the State of Oaxaca, FONATUR, and Tourism Mexico. I paraphrase the salient clauses of this agreement:

● FONATUR will transfer to the State of Oaxaca responsibility for operating the services it has provided to CIP Huatulco through FONATUR infrastructure.
● FONATUR will transfer to the State of Oaxaca responsibility for all matters related to the transfer of FONATUR real estate.
● The collaborating parties will enter into a series of specific agreements to enable the transfer of all assets, properties, licenses, permits, and staff of CIP Huatulco from FONATUR to the State of Oaxaca. The State government will accept the staff for which it has sufficient funds in its budget.
● FONATUR and the State Government will enter into specific agreements with the Municipality of Santa María Huatulco for the provision of services.
● The working group of the parties to this agreement will provide a critical path of actions required to carry out the transfer agreement. This critical path will be provided within 30 days of May 30, 2023.

Following this agreement, the State of Oaxaca announced a list of 700 real estate properties to be transferred from FONATUR to the state. In an October 26 article on NVI Noticias, an online Oaxacan news service, Saymi Pineda Velasco, Oaxaca’s Secretary for Tourism, announced the setting up of nine “work tables” (mesas de trabajo) to clarify the status of infrastructure for CIP Huatulco (for wells, sewage, water systems, treatment plants, etc.). This article also mentioned the only timeline I could find on the actual transfer of CIP Huatulco from FONATUR to the Oaxacan state; Pineda Velasco said it was “two months before the deadline for the delivery and receipt of the Huatulco CIP.” As the article was published on October 26, 2023, the putative transfer target date is December 31, 2023.

Will It Happen?
So, is this a done deal? Well, maybe, maybe not. The clock is ticking on AMLO’s mandate. The next federal election will take place on June 2, 2024, and the new president will take office on December 1, 2024. The number of agreements, legal documents, and possibly legislation required to make the transfer within both the state and federal bureaucracies would be substantial. Also, four of the 19 signatories to the transfer agreement have left their positions, most notably the head of FONATUR, Javier May Rodríguez, who has announced he is running to be the governor of the state of Tabasco. Also, the FONATUR Directors of Development, Commercialization, and Strategic Management and Institutional Liaison have all left their positions since signing the agreement.

Will time run out, and a new federal administration have a different approach to Huatulco? Who knows? But the motivation of the State of Oaxaca (the governor of Oaxaca, Salomón Jara Cruz, is now in the first year of his six-year term) could be a factor. Huatulco receives 17% of the state’s tourists and 45% of the state’s tourism revenue, and the potential sale of the 700 real estate properties that FONATUR would transfer to the state is certainly a source of revenue. It’s possible, as well, that Huatulco would be better off if it were operated by the State of Oaxaca; it would not be competing for funding with all the other priorities of a Federal government, although the state’s funds are more limited. I guess time will tell.

Creation of New National Parks within CIP Huatulco

On August 16, 2023, SEMARNAT, the federal Secretariat of Environment and Natural Resources, announced 13 new national protected areas within six states of Mexico. Three of those new areas are within the boundaries of the CIP Huatulco. These are:

● Ricardo Flores Magón National Park (1,801 hectares, about 4,450 acres)
● Oaxaca: Huatulco II National Park (2,261 hectares, about 5,587 acres)
● Bajos de Coyula National Flora and Fauna Protection Area (1,935 hectares, about 4780 acres)

The addition of these three new parks (5,997 hectares, ±14,820 acres), when added to the existing National Park of Huatulco (6,375 hectares, ±15,752 acres), brings the total hectares in CIP Huatulco under natural protection to 12,372 hectares (±30,572 acres). The parks are shown on the map below (courtesy of APRODIT – Asociación de Promotores Inmobiliarios y Turísticos de Bahías de Huatulco)

The Ricardo Flores Magón National Park will contain the Copalita Archaeological Park, which has been closed in the recent past but is currently open (except for the museum) to visitors.

Protests against the New Parks
The formation of these natural protected areas is not without controversy and protests. A number of business and environmental organizations (Association of Hotels & Motels of Huatulco, real estate and hotel promoter APRODIT, Equipo Verde Huatulco, tourism and hotel promoter PROHOTUR, and the Mexican Association of Travel Agents) have formally protested the new national parks, citing multiple issues.

● Huatulco draws people searching for economic opportunities; a good number of people have set up settlements in forested areas. These irregular settlements, like the settlements inside the existing national park at Cacaluta, are not controlled. More such dedicated protected land would exacerbate this issue.
● The sudden declaration of the new parks does not respect the development plan of CIP Huatulco, adding uncertainty for investors.
● The funding of national parks is woefully inadequate and more national parks dilutes this even further. The environment group NOSSA (Noroeste Sociedad Civil para la Sustentabilidad Ambiental), reported that the funds budgeted for national parks and protected areas in Mexico come to $10.7 pesos per hectare for 2024. For Huatulco, that would amount to $64,168 pesos ($3,620 USD) per year to staff, maintain, and operate all the newly announced protected areas of Huatulco.
● The natural area proposed for Bajos de Coyula is widely contested by the residents in and around Coyula, who were not consulted in the process.

A formal objection to these new protected areas has been submitted by the Municipality of Santa María Huatulco to María Luisa Albores González, head of SEMARNAT.

Turning the Golf Course into Parque Nacional Tangolunda
On October 12, 2023, AMLO announced that the golf course in Tangolunda would be converted to a national protected area. Up until August of this year, the concession for the golf course was held by Ricardo Salinas Pliego, a wealthy businessman who is head of TV Azteca. AMLO announced that the golf course would be auctioned off, expecting to raise $600 million pesos, with priority given to Salinas Pliego.

As there was no agreement with Salinas Pliego nor any other offers, AMLO declared it a National Protected Area, to be amalgamated with the Ricardo Flores Magón National Park. The 229-page study and justification document for “Parque Nacional Tangolunda” states that it will be converted to conditions before the golf course was established.

Here, too, there have been protests to the golf course conversion. These protests were acknowledged by Pineda Velasco, Oaxaca’s Secretary of Tourism, in an announcement of the Huatulco CIP transition (AVI Noticias, October 10, 2023). Currently, the golf course is still operating.

Overall, the new national parks and protected areas announced for Huatulco are being contested at the same time as FONATUR is transferring Huatulco CIP to the state of Oaxaca. As a result, uncertainty reigns.

New Toll Road from Oaxaca City to the Coast

The new autopista (highway) is a toll road to connect Oaxaca City, and thereby the toll road system of Mexico, to the Oaxacan coast. The latest (of many) officially scheduled opening was November 29, as per AMLO’s announcement that he would inaugurate the new highway on this date. However, on November 6, AMLO announced that because of a collapse, the highway wouldn’t open until January 2024.

The original concession to build the highway was granted in 2007, with an original projected opening date in 2010. This highway has had numerous opening dates announced that were subsequently canceled over the years, but it seems different this time. The construction seems largely complete and it has been touted as an infrastructure project that AMLO wants included in his legacy.

The official name is Barranca Larga-Ventanilla highway, although it’s usually called the Oaxaca-Puerto Escondido highway. The highway will shorten the travel time from Oaxaca City to the Oaxacan coast near Puerto Escondido from six hours to two hours; it will connect to Route 200, the coastal highway, 15 kilometers (±9 miles) east of Puerto Escondido and about 100 kilometers (±60 miles) from Huatulco.

The highway will have two lanes and run 102.4 kilometers (±61 miles), with nine interchanges and two toll booths along its length. Traffic is estimated at 4,253 vehicles per day traveling at speeds between 90 and 100 km/hr. The relative ease of connecting from the capital to the coast has important implications for Huatulco.

On the one hand, goods, services, and visitors from Oaxaca City and central Mexico can flow more quickly and cheaply than ever before. On the other hand, it raises the specter of an influx of people into an area where existing infrastructure is at or near capacity. And in some areas, during peak season, demand for water, sewage, and electricity already exceeds capacity.

These points were raised in an NVI Noticias article on infrastructure and massive tourism to the Oaxaca Coast. The article cites Gaulberta Rodríguez, President of the Mexican Association of Hotels and Motels of Oaxaca, on the fear that the new highway would cause a huge influx of tourists and economic migrants, possibly causing a collapse in infrastructure services as well as damage to the environment.

The More Things Change, the More They DON’T Stay the Same!

These three important developments, although the exact timing and final outcomes are somewhat uncertain, will significantly affect Huatulco. However, if you put these developments in the context of the history of Huatulco, it becomes easier to see these changes as steps along the development road. Until the 1980s, when the Mexican government sought to develop this area, there wasn’t even a paved road connecting Huatulco to anything – only a fishing village and coffee plantations existed here. The cruise ship dock at Santa Cruz only opened in 2003. As residents and long-term visitors, many of us have witnessed, over decades, many changes in the development of Huatulco. And now, with these three developments on the horizon, there is more change to come.

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