Regional Opportunity



Responsive Development

Emerald Coast Property Investments is bringing ecologically and socially responsible development to one of the most dynamic tourism growth areas in the world today. ECPI works closely with local and regional governments to assure that their projects are culturally friendly and fiscally sound for local people, as well as tourists and investors. ECPI specializes in combining aesthetically superior homes and environments with exceptional financial opportunity. This is all supported by an extraordinary commitment by the federal government1 of Mexico and the State of Nayarit to bring leading-edge development planning and resources to this region.

ECPI is headquartered in the lovely village of San Pancho, in the State of Nayarit, on the Pacific Coast of Mexico.

Federal Support For Tourism Infrastructure


Image Courtesy of G Michael Moore

The national agency, Fonatur2 was founded 30 years ago to provide master planning and funding for large tourism developments in Mexico. Fonatur typically purchases large tracts of land, establishes infrastructure, clears title, and invites international investors, such as large resort hotels, to participate as development partners.

Every one of these projects has been highly successful. Cancun3 , for example, continues to be one of the most popular vacation destinations in the world. Past Fonatur projects (as noted on the first map) include:

  • Cancun
  • Playa del Carmen
  • Ixtapa
  • Huatulco
  • Los Cabos
  • Loreto


Developments in Mexico.PDF

Fonatur has designated the Emerald Coast of the State of Nayarit (also known as the Nayarit Riviera) as its next major development area. This is one of the most beautiful beach areas in Mexico. The last Fonatur project of this scale ended 20 years ago. Corollary to this project, the Mexican goverment is developing a series of marinas in the adjacent Sea of Cortez (Golfo de California), as shown on the second map.

The Nautical Staircase


Nautical Staircase.pdf

The Escalera Nautica (Nautical Staircase or, literally, Nautical Ladder) consists of an interconnected chain of marinas along the Sea of Cortez and Pacific coast. The marinas will be about 120 nautical miles apart (one day’s travel by boat).

The plan calls for 22 full-service marinas: 5 of these already exist, 7 exist but will be rebuilt, 10 will be new. The 10 new marinas will be located on sites with natural shelter, or bays, a common feature on the peninsula. Fonatur anticipates that 52,000 American boat owners will sail to these destinations and a good number will permanently moor there. Fonatur estimates that 76,400 boats will be cruising the Baja coastlines by 2010 and that there will be 5.4 million nautical tourists by 2014.

Development Activity Near San Pancho

Fonatur is developing the Emerald Coast of the Nayarit Riviera in three phases. As you can see on the road map, this will include a major new international airport, in addition to the existing one at Puerto Vallarta (which has excellent air connections to the US and Canada). Also shown on the map is a major new highway that is slated for construction NNE from Puerto Vallarta to Tepic in the next two years. This direct route will take heavy commercial traffic off the coastal highway (similar to the way US 101 in California keeps heavy traffic off CA 1, the scenic coastal highway). Note also the extensive National Park and Jaguar Preserve (Sierra de Vallejo) immediately east of the coast. New construction is prohibited in this area.


Regional Developments.pdf

Litibú (named after a native Huichol Indian bird) was the first phase in Fonatur's Nayarit project. 85 percent of the parcels were purchased within hours4 of their release in early 2006. Groundbreaking is scheduled for 2007 on the second phase, Monteon and La Peñita. The third phase, San Blas and Capomo, is scheduled for completion in 2025.

These three new developments will be officially designated as “Integrally Planned Resorts.” This means that they will be fully master planned with detailed construction schedules and comprehensive maintenance programs. Planners want to avoid the spring break/party crowd and instead attract affluent tourists who will stay longer. At the same time, they are taking new measures to avoid overwhelming the landscape and local culture.

Litibú marks a fundamental shift in Mexico towards ecologically and socially responsible investment5. For every palm tree taken out of the jungle, the law requires that five others replace them. All landscaping must consist of native species. Projects are designed to improve villagers’ lives without destroying the character of the towns, anticipating that sophisticated tourists will enjoy the colors, sounds and smells of a real Mexican village.

The Mexican government has allotted USD $5 billion to this project and has found an additional USD $5 billion in private funding from Mexican and foreign investors such as the Saint Regis Hotel, the Four Seasons Hotel and Carnival Cruise Lines. The national electric company has budgeted USD $2.2 billion to support new development in this area. In 2006, the Spanish group, Fadesa, purchased four Litibú parcels (out of 21 available). One lot will be for a 640-room luxury hotel, while the other lots will host a similar number of homes and condominiums.

Litibú includes a desalination plant and sewage treatment facilities, as well as paved roads and sidewalks in Higuera Blanca. This nearby village is occupied by Huichol Indians (their ancestors were the only tribe never conquered by the Spanish). Fonatur is enlarging their health center and school building. Litibú was started in 2002 and is on schedule for completion in 2007.

Punta Mita, just south of Litibú, contains the new Deepak Chopra Healing Center. Predevelopment prices for ocean view (but not beachfront) condominiums in this development are USD $750 thousand, with home sites at USD $4 million. Homes sites (property only) in the Four Seasons Development start at USD $4 million. Punta Mita is also home to the Four Seasons Resort Golf Course which was named by Conde Nast as the number one golf resort in the world in 2006, as well as being the top-ranked property for accomodations and service.

This increase in economic activity has created a surge in local employment in addition to funding for important public works improvements. As the following graphics indicate, in Mexico there is an unambiguous inverse relationship between the incidence of poverty and tourism infrastructure.


Tourism & Poverty

The State of Nayarit (whose South boundary is just north of Puerto Vallarta) has just passed its largest ever budget, almost tripling previous spending. 70% of this is dedicated for highway and infrastructure improvements along the 162 kilometer (90 mile) stretch of the Emerald Coast. San Pancho is in a quiet coastal area at the heart of this region. It lies 90 kilometers (56 miles) north of Puerto Vallarta, which has the nearest major airport, and 19 kilometers (12 miles) north of Litibú.


Development Details.pdf

San Pancho is also the home of Emerald Coast Developments S.A. de C.V. Emerald Coast Developments and its associated construction and real estate companies are widely recognized by local, state and federal officials, as well as local citizens, as being a guiding model for ecologically and socially responsible development.

Click on the image below to view a PDF file prepared by the Department of Tourism for the State of Nayarit on development along the Nayarit Riviera.


Nayarit Tourism Dept.pdf

[1] Mexican President Felipe Calderón has made the state of Nayarit the primary focus of federal tourism development efforts, referring to the area as “thriving, full of energy and vitality when it comes to tourism.” Calderón has:
  • Increased the overall federal tourism budget by 40%
  • Tripled Nayarit’s federal tourism budget
  • Scheduled USD $30 billion in federal funding for Nayarit tourism scheduled over the next ten years

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[2] Fonatur (The Mexican National Trust Fund for Tourism Development), founded in 1974, is responsible for founding seaside destinations that account for the majority of Mexican tourist income.
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[3] Work on Cancun was started in 1974. This was Fonatur’s first “Integrally Planned Center,” with a comprehensive design for over 30,000 acres of raw land, including hotels; commercial and residential zones; an international airport and convention center; water, electric,sanitary and communications infrastructure; roads and highways; and an ecological reserve covering more than a quarter of the developed area.
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[4] Investment in Litibú is about 90 percent foreign. Forbes.com (7/11/06) reports that Spain’s Fadesa Inmobiliaria group (with extensive hotel and condominium development holdings in Europe) is investing EUR €27 million to acquire four (of 21) lots in Litibú. This is for a tourist resort containing a 640-room hotel, a residential area of 1,284 rooms, and a beach club. The Spanish Iberostar chain has also been an early participant.

A Los Angeles Times (8/28/06) article, “Mexican Resort Areas Boomin Soft Real Estate Market,” quoted Fonatur statistics on foreign investment: In 2005, Spanish companies were the leading investors in Mexican tourism at USD $416 million, while US companies were second at USD $312 million.

Leading Mexican development companies, such as Bayview Grand and Paradise Village, are also active in the local area.

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[5] In response to wide-spread local environmental and social concerns, the Governor of Nayarit had the Ministers of Tourism, Transportation and Public Works draft legislation to guide development. This group partnered with private sector planners, using Costa Rica asa model for sustainable ecotourism.

Guidelines include the following:

  • Smaller properties with homes no taller than two levels, rustic in design and integrated with the natural environment
  • Use of native materials, such as palapa, wood, and tile
  • Hotels are encouraged to provide spaces for camping, cultural events, and tourist information and services

In addition, a series of national parks and preserves is being created (again, using Costa Rica as a model). Examples, so far, include:

  • The La Tovara estuary is a sanctuary for 460 native bird species and the native crocodile
  • San Pedro Lagunillas preserves fossilized tree forests
  • The volcano of Ceboruco with its panoramic views
  • Protected beaches of Los Arcos and the Marietas Islands
  • The development of Playa Tortugas (Turtle Beach) includes eight acres of common area in addition to protected estuary and mangrove habitat for 330 native bird species and three native turtle species
  • The car-free Villages of Loreto Bay, calling itself the “largest resort community in North America committed to the principles of sustainable development,” has dedicated two-thirds of its 8000-acre development to greenland preserve
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Mexico is the top destination for cruise liners in the world

  • Captured 64% of the world market in 2003
  • 15% increase in passengers from 2003 to 2004
  • Mexican Caribbean the largest world destination
  • Cozumel alone has 33% of world market share

Source: SECTUR 2/05

Emerald Coast
of the Nayarit Riviera

  • One million new tourist visits by 1028 (40% Mexican, 60% foreign)
  • Almost USD $13 billion in new hotel investment
  • 11,000 new rooms by 1028
  • Over 35,000 new jobs over the next 20 years
  • 140,000 new residents will require more than 30,000 new homes
  • USD $850 million in annual real estate and hotel investment income
  • More boat slips than any other Mexican area
  • Two new major convention centers
  • Average incomes among Mexicans are highest in areas that have a strong tourism infrastructure

Source: FONATUR 2/05