The July 2018 announcement from Senator-elect Jose Luis Pech Varguez from Quintana Roo regarding the new Maya Train is a highly anticipated project. The train will carry passengers and light cargo to several destinations throughout the Yucatan Peninsula. Those involved assure that the project will bring economic prosperity to many communities that are in dire need of financial stimulation. The 6-year project with a 100-billion-peso (5.2 billion USD) price tag is still on track to begin in 2019. However, there have been several added stops. And the decision of where to begin construction is yet to be finalized.
The Project Keeps Growing
In recent months, the Maya Train project has had several updates. The project, which is a combined venture between public and private funding, has extended its original route. Mexico’s incoming president, Andres Manuel Lopez Obrador, announced that the original route has grown from 830 kilometers (approximately 515 miles) to 1,500 kilometers, or over 932 miles. The first leg of the train’s route will run from Palenque to Cancun with several stops in between. The second leg will run from Cancun through Valladolid, Merida and Campeche, before connecting back to the first leg in Escarcega, Campeche.
The added destinations and extended route have increased the project’s budget. The estimated cost has grown to 150 billion pesos. However, President-elect Lopez Obrador, or AMLO as he is known nationally, will subsidize the added cost by utilizing the tourism taxation fund. Authorities predict that this revenue source will bring in 7 billion pesos annually. Along with additional private investments, there will be more than enough to compensate for the additional expense. The newly elected President will take office December 1st and he will begin construction immediately. The original time frame was to take 6 years. There is now a big push to finish in 4 years or less.
Ambitious goal to make the Peninsula the world’s top destination
Elect-President Lopez Obrador’s commitment to promoting tourism is predominantly shown by appointing two new officials to his staff. The former Tourism Director of Tabasco and an active Federal Tourism official, Rogelio Jimenez Pon, will be heading up the National Tourism Promotion Fund (Fonatur). The other appointee is a very successful businesswoman and renowned Chef, Gabriela Camara. She will take control of the Tourism Promotion Council. Lopez Obrador’s latest appointments will be another tool in his efforts to make Mexico’s Yucatan Peninsula the number one vacation destination in the world. It seems that his first term as president will start out on the right track.
What does this mean for real estate investors?
It just keeps adding to the good news of tourism growth in the area and the revenue investors can generate from their vacation rentals. In fact, additional to the millions of tourists that already visit the Riviera Maya, the new Maya Train is reportedly going to attract 3 million passengers per year. That means that anyone visiting the Yucatan Peninsula, Campeche or any of the other states that had not considered visiting Quintana Roo, will be more likely to stop by. This, in turn, will continue rising the demand for alternative accommodations such as vacation rental condos.
Recent government reports calculate that 2019 will see 50% of hotel occupancy coming from vacation rental rooms. In the Riviera Maya, that is about 20,000 as of today. The demand for it, however, keeps increasing and shows no signs of slowing down any time soon. As tourism trends continue to be record-breaking, investors continue to show interest in the region. And why not? Being able to triple your IRA retirement funds by investing in a vacation rental in the Riviera Maya doesn’t seem too bad. Of course, there are many other ways of investing. Moreover, trends continue showing an increased interest in sustainable developments. Tulum, for example, is looking better and better each day for investors, as well.
The Maya Train is for locals and expats too
If you’re seeing beyond just investing, you’re in luck. The Maya Train will grant new traveling opportunities for locals and expats, as well. Anyone living in the area will be able to take advantage of the ease of transport this trail will bring. In fact, it seems more locals and expats are excited about the project. Traveling by bus to see all these other states can be tiring. Thus, being able to do quick weekend getaways is an attraction for anyone who lives here.
Either way, we recommend you start investing in a property today. Whether it is in bohemian-styled Tulum, urban chic Cancun or laid back Playa del Carmen, having a home in the Riviera Maya can’t be beat.
And remember, at Top Mexico Real Estate…we make it happen!
