Puerto Peñasco Post

Confirmation of Flights to LAX from Puerto Peñasco (Rocky Point)

Thanks to Mary Snyder from Puerta Privada for heading out to the Puerto Peñasco (PPE) airport yesterday to confirm the Aeromexico Connect flights to LAX actually happened (it's sometimes a necessity in Peñasco to confirm these things with a trusted set of eyes).  Mary sent me this picture of the airplane.  Looks like they are flying the Saab 340 and haven't yet had a chance to repaint the planes with the new Aeromexico Connect colors and logos.  The plane holds 33 passengers.

Fitch Ratings Bullish on Mexican Real Estate Market

Fitch Ratings today released its assessment of the Mexican real estate and mortgage market in a report entitled 'Credit Availability Underpins Homebuilder Growth - Challenges and Risks Remain'.  According to this article in Investors Business Daily, Fitch believes the Mexican real estate market, while experiencing some growing pains, has strong fundamentals, not enough homes to satisfy demand and is seeing increasing availability of mortgages due to competition among institutional mortgage lenders - all pointing to continued strong growth in Mexican real estate.  Governmental stability has also played a factor in allowing the Mexican mortgage market to expand.

Fitch Ratings is one of the three major credit rating agencies (S&P and Moody's are the two others) and is an important voice in determining how quickly the Mexican mortgage markets grow.  Ratings agencies are called upon to rate commercial and residential mortgage backed securities issuances into the secondary market and therefore play a critical role in determining whether Mexico's secondary mortgage market continues to grow and mature - thus providing better access to mortgages for Mexicans.  So it is good news that Fitch is bullish on Mexican real estate.

Increasing access to mortgages and credit is important to Mexico because credit allows the large numbers of Mexicans living in poverty a way to improve their lives, start businesses and to move up into an emerging Mexican middle class.  As credit is extended to more and more people, Mexico's economy should continue to grow, a good thing for Puerto Peñasco and Mexico in general.  As mortgages become more readily available to lower income Mexicans living in Puerto Peñasco, we should expect to see more offerings of new low-priced housing for locals and improvements in the living conditions for locals in town.

Aerolitoral now Aeromexico Connect

To clear up any confusion about the flights between Puerto Peñasco (PPE) and Los Angeles International (LAX), the flights were scheduled to begin on October 23rd.  The date was pushed back to tomorrow (the 30th) by Aeromexico (Aerolitoral's corporate parent) due to the recent sale of Aeromexico to Banamex.  The sale caused some short term organizational turnover that delayed flights commencing by a week. 

In connection with the sale, Aeromexico has announced that the Aerolitoral name will no longer be used and Aeromexico's regional service will now carry the name Aeromexico Connect.  Flights can be booked on Aeromexico's website.  This is a good development for promotion of the flight as the Aeromexico name is much better known in the western hemisphere.  And it also consolidates operation of the HMO-PPE-LAX routes under a major carrier's name.

A note that Aerolitoral's website that I have linked to several times in past posts is no longer up and running.  Also a reminder that passports are required for flights between LAX and PPE.

Short Term Lukeville Border Relief

Thanks to Brian at Puerto-Penasco.com and Terry who runs Playa-Encanto.com for alerting me to this article in the AZ Star today about a change in the processing at the Lukeville border crossing.

On Sundays and Mondays, when they reach the border, recreational vehicles and vehicles with trailers will be directed into the commercial vehicle processing lane (a lane that goes to the far right around the back of the CBP operations).  This will effectively add a lane to process the vehicles that often take the longest time in line.  It sounds like Mexican officials are going to try to direct these vehicles into the right lane when they initial get in line and hopefully keep two lanes of traffic on the Mexican side moving all the way to the border (instead of making these lanes merge into one like they did last Sunday due to the street vendors).  So if you are driving a recreational vehicle or pulling a trailer, don't expect to skip the entire line.  Get in line in the right lane and be prepared to be directed into the commercial lane when you get to the border.

It's good news that U.S. Customs is showing some flexibility and recognition of the problem since I know nerves get frayed while waiting in line and by the time crossers get to the border, they often feel that CBP isn't doing anything.  They are and I have proposed several other ideas, both short and long term, here.  This change isn't a solution but it will help wait times some.

Flights! LAX to Puerto Peñasco (Rocky Point)

Saw a beautiful thing today (while sitting in my living room on the internet).  I went to Expedia.com and did a search for a flight from LAX to PPE on Tuesday, October 30th.  It came back with a ticket ($176 one-way - which includes taxes and fees) on Aeromexico (operated by Aerolitoral).  To complete the round-trip coming back on November 4th totals $352.  If you book directly through Aeromexico's website, you will save $8.  There are probably start-up promotions that are happening but I do not have information on that yet.

Restaurant Recommendations in Puerto Peñasco (Rocky Point)

I’ve been focusing on some pretty heavy topics here for the last couple of weeks, so thought I would lighten it up and give some more tourism-related tips from my experiences in Puerto Peñasco (Rocky Point). First up are my restaurant favorites.

My recommendations are after the jump, so click below to keep reading…

More on the Lukeville Border Crossing from Puerto Peñasco (Rocky Point)

As I mentioned in my earlier post about the Lukeville border crossing, I wrote a column that was originally going to be included in the Peñasco Bulletin this past week, giving weekend visitors to Puerto Peñasco (Rocky Point) more information about the border crossing, what is being done and what can be done.  This bulletin is passed out every week on Fridays to visitors arriving in Puerto Peñasco. The editors made the decision to keep the Peñasco Bulletin more focused on weekend activities and to potentially include my column in the upcoming issue of the AZ Tourist News.

Since the border crossing is such a timely issue and I want readers on here to have an opportunity to comment on the column, I am printing it in advance on my blog.  The column contains some of the same points I made in a blog post several weeks ago that can be read here. 

I think there is a little bit of fear within the real estate and tourism community in Puerto Peñasco to discuss the border issue for fear of driving visitors away (possibly the reason the column did not make it in the Bulletin).  However, during the high season, the border crossing slowdown coming back into the U.S. has become so bogged down, that I believe everyone needs to know about it in advance so they can plan their trip accordingly and take action to help change the situation.  It isn't a problem that can be ignored, hidden or swept under the rug because virtually every weekend visitors will be affected by it.  And I would rather visitors coming down these days not end up having a great weekend spoiled by being surprised by a 3.5 hour wait on Sunday afternoon.

The column is after the jump, so click below to continue reading my thoughts on the border situation...

Actions To Curb Police Corruption in Puerto Peñasco (Rocky Point)

While it is not a major problem in Puerto Peñasco (Rocky Point), a small amount of police corruption can still have a big impact on tourism.  There have been several high profile stories in the Arizona media in the last year about police stopping tourists in Puerto Peñasco for minor violations or even for no reason, and then asking for bribes to "make the problem go away."  Tourists usually have little knowledge about what to do or who to call if they feel they have been treated unfairly - so they usually just pay the bribe and move on.  The tourists are in no danger of being harmed, but it can be a scary situation for someone who is in a foreign country, may not speak the language and may have some commonly-held (but often untrue) negative perceptions about Mexican police.  And it is an experience that will be repeated to friends and other potential visitors to Puerto Peñasco, thus hurting tourism.

For more information on what is being done, click below to read on... 

Being Prepared at the Lukeville Border Crossing

There is an article today on the New York Times' website documenting another reason the Lukeville border crossing wait times have increased so dramatically over the last year (click here for the full article).  Not only has Puerto Peñasco (Rocky Point) experienced an increase in visitors, but the border agents have also been taking much more time to process each car that crosses the border.  I have been traveling nearly every week between Phoenix and Puerto Peñasco over the last 2 1/2 years and have experienced this change.  When I first started traveling several years ago, we would just give verbal confirmation that we were American citizens and not bringing in any contraband and we would get waved through.  Now CBP officials always check IDs and type in our information as we cross.  The extra 30 seconds or so to process each car quickly adds up on a very busy Sunday afternoon.

It seems that the Department of Homeland Security is intent on implementing this type of processing to create a national database of information on all people who are crossing and the purpose of their trip (ostensibly to increase security).  So at this point, there isn't much crossers can do but be prepared when they reach the processing station.  Crossers should have identification and any other documentation they need to cross already out.  I have been told that providing a passport will speed the process sinced the passport can quickly be swiped (while drivers licenses cannot and information has to be manually entered).  So if you have a passport, hand it over right away.  Crossers should also not be carrying any fruits, vegetables or meats back across the border (even if you originally bought them in the U.S.), as the time it will take a border agent to dispose of these items will further slow down the crossing time.  These minor steps should help the process some.

For more information on customs and what you should expect at border crossings, check out Puerto-Penasco.com's page on customs. 

A note that the NY Times article incorrectly states that passports will be required on January 31, 2008.  So far DHS has only indicated that on that date, the only change will be that border agents will have to ask for some form of ID (a U.S. drivers license or birth certificate are expected to still suffice) instead of relying on oral representation of citizenship.  Passports or some alternative ID are expected to be required sometime in summer of 2008.  See my previous posts on passports and border crossing here.

My next post will be a short article I submitted to the AZ Tourist News for publication about what crossers can do to further help the situation.

L.A. Press Conference Announcing Flights from LAX to Puerto Peñasco (Rocky Point)

The press conference announcing Aerolitoral flights from Los Angeles International (LAX) to Puerto Peñasco (PPE) that begin on October 23, 2007 and will fly three times a week will be held on October 24, 2007 at The Westin Los Angeles Airport Hotel at 10 am with representatives from Aerolitoral (Aeromexico), ADITURPP and Sonora Turismo present.  I have uploaded to Youtube the promotional video that will be shown at the press conference.  Following is the video.

Confirmation of Flights to LAX from Puerto Peñasco (Rocky Point)

I spoke with the director of our developers association this morning and she indicated that the Director of Planning at Aerolitoral has confirmed that the Aerolitoral flights between Puerto Peñasco (PPE) and Los Angeles International Airport (LAX) will begin on October 23rd and will run on the schedule I previously posted here.  A press conference will be held in Los Angeles on October 24th to publicize the flight.  The Aerolitoral commuter jets carry 33 passengers.  I will post more information as it becomes available.

Puerto Peñasco (Rocky Point) Videos

I created a new page to share a few of the many Youtube videos people have created about Puerto Peñasco (Rocky Point).  For those of you not that familiar with the area, they provide a good overview of some of the current tourist activities in the town and also provide some great views from the air of the development of the town.  They focus primarily on Sandy Beach (on the west side of town), which is where a lot of the recent development has been focused.  New development is now spreading eastward as well into Las Conchas (the Las Conchas Resorts area), Playa Encanto and North Beach (both east of Las Conchas) and of course out at the Mayan - which is across from the almost-completed international airport.  I will be posting more information about this eastward expansion as it progresses.

Link to the new video page is here.

Puerto Peñasco (Rocky Point) International Airport Update and Pictures

A friend provided me some pictures of the new Puerto Peñasco (Rocky Point) international airport during the Border Governor's Conference a couple of weeks ago.  As you can see, the runway is complete and striped and was used for parking jets during the conference.  Governor Bours reportedly landed his plane at the airport for a dedication with Mayor Renteria, and other conference attendees used the airport as parking for their jets.

My source indicates that "the new airport will be available to commercial operations in the first quarter of 2009. Aeromexico Connect [Aerolitoral] will move its current operations at the Municial Airport (PPE) to the new instalations and probably new routes to both Mexico and the US will follow; there are several airlines that are looking at this new market."   So commercial airline operations to Hermosillo, Los Angeles and soon Las Vegas will ramp up using the Puerto Peñasco (PPE) airport as I have written in previous posts here and here and will eventually shift to the international airport as demand dictates.  Good news for the future growth of Puerto Peñasco.

Free MySpace slideshows, photo and video editing at www.OneTrueMedia.com

Breaking News - Flights from Puerto Peñasco (Rocky Point) to Los Angeles (LAX) to Begin

I just received confirmation that the Aerolitoral flights from Puerto Peñasco (PPE) to Los Angeles International Airport (LAX) have been approved and are tentatively scheduled to begin October 16th or 18th (following some final paperwork).  This is great news for Puerto Peñasco (Rocky Point) as the town is finally connected to flights through an international airport.  Visitors are now able to fly into Puerto Peñasco from anywhere in the world.  This will greatly expand the breadth of tourists in town and will be a big factor in the continuing growth of Puerto Peñasco into a world-class vacation destination.  Next on the list for Aerolitoral are flights to Las Vegas (LAS) - which should be coming soon.  See my previous post here for more details about Puerto Peñasco's airport status. 

Flight times are tentatively scheduled as follows:

Tuesdays, Thursdays & Sundays
Depart Hermosillo (HMO) to Puerto Peñasco (PPE) - 9:00 AM
Arrive PPE - 10:00 AM

Depart PPE to Los Angeles International (LAX)- 10:40 AM
Arrive LAX - 12:10 PM

Depart LAX to PPE - 1:30 PM
Arrive PPE - 3:00 PM

I do not have information on the final leg of the flight, but I am assuming the last flight from PPE to HMO will leave around 4:00 PM and arrive in HMO at 5:00 PM.  A reminder that passports will be required for U.S. citizens flying on the flight between PPE and LAX.

A big thanks to the local developers group, ADITURPP, and all the members who were able to contribute to providing a temporary subsidy to Aerolitoral to get these flights started.

Tourist Transportation Proposal for Puerto Peñasco (Rocky Point)

I was having lunch Friday with a couple of new friends and one of them remarked that a problem he sees at the resort he works for in Sandy Beach is that people want to get out and go visit the town, restaurants and bars/clubs. However, they often don’t want to drive around town for various reasons – particularly at night (DUI concerns, worried about their car, not knowing their way around town, etc.). Taxis in Puerto Peñasco aren’t perceived as that reliable yet by Americans (even though I and my friends will use them), so he suggested what I think is a great idea – a weekend shuttle. Click below to read my full proposal....

No "Deadly Amoeba" in Puerto Peñasco (Rocky Point), Mexico

In case you were wondering, there is no deadly amoeba in the beautiful Sea of Cortez (Gulf of California) or on the sandy beaches of Puerto Peñasco (Rocky Point).  The amoeba exists in warm freshwater (such as the sad tragedy documented at Lake Havasu), but not in saltwater (such as we have in Puerto Peñasco).  So enjoy the great fall season in Puerto Peñasco and enjoy the beaches!

Good News for Mexican Secondary Mortgage Market

HSBC Mexico announced yesterday that it sold $321 million of Mexican mortgage backed bonds, the first non-governmental sale of Mexican mortgage backed securities since the subprime meltdown a couple of months ago in the U.S. The Bloomberg article I am posting below points out something that distinguishes Mexican mortgages from U.S. subprime mortgages - they are much less risky due to the tight controls banks place on issuing credit in Mexico and, for Infonavit loans, the required direct employer contributions. See my post on the Mexican mortgage market and the follow-up discussion and clarifications on the market from several industry leading mortgage brokers in Mexico.

The continued growth of the Mexican secondary market for mortgages is an integral piece of Puerto Peñasco (Rocky Point) development. As the secondary market continues to mature, mortgages for vacation home and condo buyers will become more and more attractive, helping Puerto Peñasco to continue its sustained growth.

The full article is posted after the jump.

Border Governor's Conference News Report

Good to see ABC 15 in Phoenix do a story about the growth of Puerto Peñasco (Rocky Point) in the following report from the recent Border Governor's Conference. Sometimes I feel that the Arizona press focuses way too much on writing negative stories when it comes to Mexico - thus promoting negative perceptions and stereotypes of Mexicans and Mexico.  Kudos to ABC 15 for taking the time to focus on the real story of Puerto Peñasco - sustained growth and prosperity of the town through cross-border collaboration.

Sonora and Puerto Peñasco Business Article

I wanted to share one of the best articles I have read recently about the business climate and opportunities in the state of Sonora, and in particular Puerto Peñasco (Rocky Point), Mexico.  It was written by Ronald Buchanan in the North Mexico BizNews.  The article is a little lengthy, but for anyone doing business in Puerto Peñasco or considering doing business in Puerto Peñasco (in any field), it is a must read in its entirety.  The first section is about Sonora, the second is about Puerto Peñasco and then it also includes some great economic statistics about the region.

I am reprinting it after the jump to preserve it in my blog archive, so click below to read, or click here to read it on the site. 

Fall High Season in Puerto Peñasco

Late-September and October bring great weather to Puerto Peñasco (Rocky Point) and mark the beginning of the fall high season for the town – which these days extends right through New Years. On the heels of the excellent promotional efforts this past year done by Sonora Turismo in the U.S., bars and restaurants, resorts, hotels and tour operators will be extra busy as the town is expecting one of the largest fall high seasons yet.

Planned activities this fall for vacationers to Puerto Peñasco include the first International Jazz Festival on October 13th, Roger Clyne & the Peacemakers concert and OTP Beach Volleyball Tournament on October 20th and 21st and the always well-attended Rocky Point Motorcycle Rally on November 8th-11th.

While in town this fall, I encourage everyone visiting (and even locals) to try out a new restaurant or activity. This past year has seen the introduction of many new venues, so take a drive around town and re-familiarize yourself with Puerto Peñasco. Also stop by your favorite realtor’s office to check out the latest residential developments for sale. The impending completion of the international airport and coastal highway and the steady implementation of new commercial tourism infrastructure (restaurants, shopping, golf, spas, boat cruises and other new activities) is pushing Puerto Peñasco into its second phase of development – steady growth into a recognized, international vacation destination.  And it certainly isn't too late to purchase a house or condo now that will steadily appreciate with this growth over the next 25 years.

I will try to put up some more tourist-oriented posts over the next couple of weeks for those readers who are interested in learning more about what a local "gringo" would recommend to see, eat and do in Puerto Peñasco.

New Lower-Priced Housing Announced

I've been catching up with my real estate news and found an article in El Imparcial just over a week ago about a new housing development announced by Grupo Inmoser near the current Puerto Peñasco (Rocky Point) airport.  It will be called Country Garden Estates and will consist of 500 homes in clusters of 90 homes per cluster (yes, the math doesn't exactly work out).  Homes will have 2 bedrooms and 1.5 baths and will be priced between $90,000 and $130,000 USD.  They are apparently doing land prep right now and are slated to begin construction of the first cluster of homes this month - with a build cycle of 6 to 8 months. I will try to figure out exactly where the site is next week when I am down there.  The full article is here (in Spanish).

The lower-priced housing market is underserved in Puerto Peñasco, as most of the new development has concentrated on serving the high-end vacation population wanting to be on or near the beach.  As a more diversified group of vacation buyers, investors, retirees and local professionals look for housing in Puerto Peñasco, I think these types of developments will do well.  Some buyers who may have had big plans to be on the beach while watching their home equity soar in Arizona over the past couple of years may instead end up in these types of homes - close to the action, but still a couple of miles from the beach.   It's good to see developers adjusting to the needs of the market to make sure all the different buyer segments will have options.

Border Governor's Conference Wrap-Up

There was plenty of pomp and circumstance at the Border Governor's Conference in Puerto Peñasco (Rocky Point), Mexico this past week, some of which I have documented in my prior posts below. I just wanted to recap a few points about the conference.  My thoughts are after the jump.  Please read and post your own comments on the event.