Mexico! Just remembering your first trip across the border to Tijuana, Mexicali, Nogales, Juárez, Nuevo Laredo, Reynosa, Matamoros, or any other border town probably evokes thoughts of poverty. Our first introduction to extreme poverty was 25 years ago near the outskirts of Mexico City and we will never forget it. Although poverty still exists in Mexico, it is nothing like the stability of the peso and the boom of the Mexican economy over the past decade. Also, comparing Mexican Riviera resort towns to border cities is like comparing Beverly Hills to Bangladesh. We come to Puerto Vallarta, Mexico, known as PV or Vallarta by the locals, and have owned property here since 1984. In 1997 we purchased a beautiful new villa and made it our permanent residence. It has been a wonderful investment, the value of which has tripled in the last ten years. In 2002 we invested some money in the Mexican Stock Market at 3.25 pesos per share. That investment is currently trading at 11.55 per share, generating a 255% gain. During those five years, the Mexican peso has held firm at around 10.8 pesos per US dollar.
When we moved to PV ten years ago, women sitting on the sidewalks nursing their babies, hand and cup in front were common. The few old cars and buses often trailed or were missing their mufflers, were often dented and dented beyond recognition, and always came in such a variety of colors that it was virtually impossible to determine their original color. The streets and sidewalks were dirty and in need of repair and the shops looked like what one would expect in a sleepy little Mexican fishing village. Unemployment was high and help was available for $10 a day. None of the streets had signs or center lines, making driving your basic game. Ten years ago, prices in stores and restaurants were relatively low because labor was cheap, they only had locally produced products, and very few had air conditioning. Even in Vallarta, there was some degree of poverty, but one could survive due to the low standard and related cost of living.
Things have changed dramatically in PV over the last ten years. The Mexican economy is booming and it is especially true in Vallarta as a result of tourism. There is virtually full employment with most of the younger Mexicans speaking some degree of English since the income is about three times higher if one speaks and understands English. Ten years ago, we had a cruise ship that visited Puerto Vallarta every other day, whereas now, with the new maritime terminal, we have two or three cruise ships here every day. The International Airport is about four times the size it was ten years ago, with flights arriving and departing constantly. A second International Airport is currently in the planning stages. Real estate prices have roughly tripled in the last ten years, as have the prices of materials and labor.
With the booming economy and full employment, most of the locals now have their own cars and a good portion of them are new. Most of the mouthpieces are new and clean, and you rarely see a jalopy with a dragging muffler. In fact, the standard of driving has improved substantially because the locals are proud and take care of their new cars. All streets are now clearly marked, often lined with palm trees and immaculately kept. All public roads are new or have doubled in size with new bridges, lighting, etc. There are so many cars now in PV that congestion and parking have become major problems in our beautiful Paradise.
Three new parking garages have been built downtown in the last four years; one above ground and two below ground with public parks above. The old stores are being renovated or torn down and replaced with beautiful new buildings. Because there is such an opportunity available in Vallarta, the level of education is constantly improving at the new campus of the University of Guadalajara, which provides the ideal environment for thousands of young Vallarta to receive advanced education. The booming economy has attracted some of Mexico’s best doctors and dentists, many educated in the United States or Europe.
With the increase in talented doctors and dentists, two large medical centers have been built in the last five years, housing sophisticated state-of-the-art equipment. Fine restaurants abound in PV, all with clean, modern kitchens, providing employment for thousands of workers as do many modern hotels. New high-rise condominiums and those currently under construction are seen everywhere, providing excellent employment for thousands of construction workers.
On nights during the “high season”, from November to May, when everyone is dining or partying, the streets almost look like New York with yellow cabs everywhere. In fact, the Malecón, or promenade along the beach, has more people visiting and shopping at midnight than at noon. The sleepy little Mexican fishing village is no longer sleepy or small, with a population that now exceeds 350,000. During the “busy season”, PV oscillates for about 18 hours a day. One has to wonder if those sidewalk women ever got jobs or moved to Los Angeles. You certainly don’t see poverty in Vallarta today!