Home Mexico Travel & Economy Investment in Oaxaca Continues in Tourism, Energy and Freight Sectors

Investment in Oaxaca Continues in Tourism, Energy and Freight Sectors

by Brent May

Investment in the Oaxacan economy continues to grow. As reported in the articule The Unique Huatulco Real Estate Market: 9 Reasons to Invest Now, the economy continues growing stimulated by the commitment of the Mexican President, Lopez Obrador who took office in December 2018. Lopez Obrador pledged continued funding to different investment projects throughout the Oaxaca state. We are directly affected by several of these projects in Huatulco. We can actually see the construction projects picking up and several projects nearing completion in our area where our growth indicators are continuously strong.

Wind Energy Investment in Oaxaca

Oaxaca has a strong clean energy sector on the Isthmus of Tehuantepec, directly south of Huatulco. At its shortest point, the Isthmus of Tehuantepec stretches a short 192 kilometers from the Gulf in the east to the Pacific in the west. The trade winds from the Gulf travel across this zone due to a break in the Sierra Madre del Sur mountain range. Once considered as a location for the Panama Canal and used as a land trade route linking the two bodies of water, the Isthmus is the headquarters of 25 industrial wind energy farms today.

The Spanish company, Iberdrola will spend 270 million dollars in the construction of a new wind energy center in Oaxaca State throughout 2019 and 2020. The company has plans to produce 200 megawatts with the wind energy from the new industrial project.

The Mexican national energy company, the CFE, (Comisión Federal de Electricidad), will continue construction of high power lines to transport energy toward the center of the country. The high-profile Spanish investment is creating more jobs and development in the region.

Tourism Industry Investment Continues in Oaxaca

Airline connections continue increasing.

The state of Oaxaca counted 13,328 air connections to its main destinations of Oaxaca City, Huatulco, Puerto Escondido and Ixtepec in 2018, a 5% increase from 2017. Juan Carlos Rivera Castellanos, secretary of tourism in Oaxaca stated that the government of Oaxaca has collaborated with Volaris and VivaAerobus to continue increasing connectivity in the state and easy access for both national and international visitors.

“Oaxaca has done very well in terms of air connectivity. We have just signed an agreement with Volaris for a new route from Monterrey to the city of Oaxaca, which will begin in the last quarter of this year. In addition, we are working with Viva Aerobus to bring a flight from the Riviera Maya to Oaxaca,” he said.

Lopez Obrador also committed funding to the finalization of two Oaxaca highway projects and since this commitment, we can see progress here on the coast.

Hotel investment stays strong.

The increase in airline routes is part of a government strategy attracting more investment. “There is an investment of more than 150 million dollars for a Live Aqua hotel, … and in the capital there is investment in a Fiesta Americana Grand, which will be the most important five-star hotel of the area,” ensured Rivera.

Huatulco accounts for 47% of the State’s tourism Sector Activity

The Secretary of Tourism also confirmed that the Huatulco area accounts for at least 47% of all tourism activity in the state and is one of the major air traffic destinations in the state.

Modernization of the Salina Cruz Port Facilities Underway

After Lopez Obrador’s announcement of the investment of 22 billion pesos in the Salina Cruz port facilities, Asian companies have also expressed interest in investing in the state. Salina Cruz’s mayor, Juan Carlos Atecas announced that companies from Singapore have already pledged investment capital to modernize the port and reactivate loading and unloading of commodities via land, maritime and rail with the Ferrosur freight company linking Oaxaca and Veracruz by rail.

The Oaxacan economy continues to be strong and the tourism sector continues leading the country in terms of arrivals and spending. The activity around Huatulco and across the state testifies to the strength of our local economy, the government’s continued dedication to growing the state’s economy and the uniqueness of Huatulco as a tourism destination. Let us know how we can help you make your Huatulco real estate project become  a reality. 






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