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Energy
Pemex Oil Output Falls 9.2% In 2008; Reaches Lowest Level Since 1995
January 21, 2009
Pemex said that Mexican oil production fell 9.2% to an average of 2.8 million barrels a day (b/d) from 3.08 million b/d
in 2007. The Cantarell oil field fell to an average of 1.01 million b/d in 2008, down 31% from 1.47 million b/d in 2007.
The slide in output also led to a 16.8% drop in exports to an average of 1.4 million b/d. Although exports fell, high oil
prices provided Pemex with USD 43.3 billion last year. Pemex specified that the drop in oil production was the highest
in 13 years.
Pemex To Lift Total Debt By USD 3 Billion In 2009
January 22, 2009
Pemex announced it will increase its total debt load by USD 2.5 billion to USD 3 billion this year, as it plans to boost
investments to nearly USD 20 billion. Pemex said it plans to carry out an aggressive investment program in an
attempt to halt a steep fall in oil production. The firm plans to invest USD 19.4 billion this year, mainly in exploration
and production, up from USD 18 billion in 2008. Pemex succeeded in lowering its total debt in 2007 and 2008, but
said this year's financing needs will not put a strain on it.
President Calderon Inaugurates Cemex, Iberdrola And Acciona's Aeolian Park
January 22, 2009
President Calderon has inaugurated Mexican cement maker Cemex's Eurus Aeolian Park (PEE) in the state of
Oaxaca. The project will begin operating in 1Q and aims at generating 250 megawatts of power using 167 wind
turbines of 1.5 megawatts each. The inauguration included wind farms built by Spanish concerns Iberdrola and
Acciona. Joint investment in the project amounted to approximately USD 800 million. Eurus will supply 25% of
Cemex's domestic power needs while eliminating emissions of 600,000 tons of carbon dioxide a year. Eurus is
connected to the national power grid operated by the Federal Electricity Commission (CFE).
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Trade & Investment
INEGI: Mexico's 2008 Trade Deficit Widens To USD 16.84 Billion
January 23, 2009
According to the National Statistics Institute (INEGI), Mexico registered its largest trade deficit in 14 years in 2008,
which amounted to USD 16.84 billion at the end of the year. Mexico posted a USD 2.07 billion trade deficit in
December, when commercial exports' value amounted to USD 18.6 billion and represented a 19.7% reduction
compared to the like-2007 month. December's reading was narrower than November's USD 2.83 billion deficit.
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Banking, Insurance & Finance
Three Siefores Jointly Lose MXN 31.6 Billion At End Of 2008
January 20, 2009
According to pension regulator Consar's monthly reports, three out of five pension fund managers' (Afores’) Siefores
investment vehicles lost a combined MXN 31.6 billion at the end of 2008 due to investment problems. Meanwhile,
Afores association AMAFORE said that the workers' funds they manage fell by MXN 30.6 billion in 2H last year, and
that they will continue to drop due to the international economic crisis and volatility in interest rates. However, Afores'
profits increased last year due to higher commissions.
Consar To Regulate Commission’s Afores Charge
January 21, 2009
Pension fund regulator Consar announced that it will regulate the commission’s pension fund managers (Afores)
charge. The Executive Branch published in the Official Gazette (DOF) a series of regulations providing more power to
Consar and other authorities in the pension system in order to prevent Afores from abusing workers.
Genworth Financial To Sell Mexican Insurance Unit To HDI-Gerling
January 22, 2009
U.S. financial group Genworth Financial announced that it has signed an agreement to sell its general insurance
subsidiary in Mexico to Germany's HDI-Gerling International Holding for an undisclosed amount. The deal includes
automobile, property and casualty, life and personal accident insurance business lines that Genworth Seguros Mexico
distributes through independent insurance agents.
Report: Citigroup Has No Plans To Sell Banamex
January 22, 2009
According to press reports and sources familiar with the rumored sale of U.S. banking group Citigroup's Mexican
subsidiary Banamex to billionaire Carlos Slim, there is no proof that such transaction will occur. Reports said
Citigroup sees Banamex as a solid business and has no plans to sell it, while Slim's spokespeople have said that the
tycoon has no intention of acquiring the bank. Meanwhile, a leftist legislator has demanded the Finance and Public
Credit Ministry (SHCP) suspend Banamex's operations in Mexico as it allegedly violates the Credit Institutions Law by
allowing the U.S. Government to hold ownership in the bank.
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Business & Industry
Groupe Safran To Invest Over MXN 2.1 Billion In Queretaro's Aerospace Park
January 21, 2009
French aircraft parts manufacturer Groupe Safran announced that it will invest over MXN 2.1 billion to build two
industrial plants in the state of Queretaro's Aerospace Park. The plants, which will produce Messier Dowty's landing
gears and Snecma Propulsion Systems' aircraft engines, are expected to create 510 direct jobs.
Grupo Bimbo Closes Acquisition Of Weston Foods
January 22, 2009
Mexican bakeries concern Grupo Bimbo announced that it has completed the acquisition of the U.S. breadmaking
unit of Canada-based George Weston. Bimbo paid USD 2.38 billion for Weston Foods and an additional USD 125
million for certain financial assets. The buyout was financed with USD 2.3 billion in bank debt and existing cash.
Bimbo Bakeries USA now has 35 plants, 7,000 distribution routes and employs more than 15,000 people.
DHL To Invest USD 112 Million In Mexico
January 23, 2009
U.S. courier company DHL said it will invest USD 112 million in Mexico in the following five years as part of its longterm
strategy. Investment is expected to allow the company to enhance its processes' efficiency and to improve its
customs capabilities. DHL said that the broadening of its facilities at the Mexico City Airport Customs will increase the
amount of packages it handles per minute by 300%, taking its installed capacity to 100,000 packages per month.
Celanese To Assess Closure Of France And Mexico Facilities
January 21, 2009
Global chemical company Celanese announced that it is assessing the potential closure of acetic acid and vinyl
acetate monomer (VAM) production in Pardies, France, and assessing the potential closure of VAM production at
Cangrejera, Mexico. The company believes this potential capacity reduction is required by the significant change in
the global economic environment and anticipated lower customer demand. The Cangrejera production unit, in the
state of Veracruz, has an annual production capacity of 115,000 tons.
Ajegroup Cancels Plans To Launch Big Chela In Mexico
January 22, 2009
Low-cost Peruvian beverage company Ajegroup announced that it cancelled plans to sell the Big Chela beer brand in
Mexico, which would cost 30% less than Mexican competitor Grupo Modelo's Corona, as calls from undisclosed
sources and from within the company itself dissuaded it from importing its product into Mexico. Ajegroup's spokesman
in Mexico said the firm made the decision following economic conditions of the market in response to questions
involving government lobbying by competitors Modelo and Moctezuma.
AMELAF, ANAFAM, AMIIF Analyze Congressional Proposals On Biotechnologics
January 23, 2009
The Mexican Association of Pharmaceutical Laboratories (AMELAF), the National Association of Medical
Manufacturers (ANAFAM) and the Association of Pharmaceutical Research (AMIIF) announced that they are
analyzing a proposal by the Senate's Health Commission to amend an article in the country's health law regarding
biotechnological and biocomparable medicines. All the parties involved are confident that the proposal will be voted
into law by Congress' full Houses starting in February.
Stoppages At Five Border States To Be Prolonged
January 23, 2009
According to a report by the industrial business chamber Canacintra, workers in the border states of Baja California,
Sonora, Chihuahua, Coahuila and Tamaulipas will prolong protests they started in order to stop massive layoffs that
have left over 50,000 jobless people in the past four months. Workers in export-oriented industries
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Automotive
Volkswagen Mexico To Lay Off 900 Temporary Workers
January 20, 2009
German automaker Volkswagen's Mexico unit announced between 800 and 900 layoffs including temporary workers
or employees whose contracts are expiring. The cut jobs are mostly from the assembly line, but also include people
from all areas of the plant, which is located in Puebla, in the state of the same name. After the cuts, the plant will have
9,413 technical staff and 13,218 total staff.
Toyota Delays Expansion Plans In Mexico
January 21, 2009
Japanese automaker Toyota Motor announced a delay in its expansion plans in Mexico as it expects a 20% drop in
new car sales in the country as the global economic crisis has affected demand. The change in its strategy includes
postponing the opening of five distribution centers of its luxury series Lexus, assessing the sale of the Prius hybrid in
Mexico, withdrawing 29 versions of certain models and reducing production at its Baja California plant.
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Housing & Mortgaging
ARA To Report 2008 Sales Of Between MXN 8.85 Billion And MXN 8.95 Billion
January 22, 2009
Mexican homebuilder Consorcio ARA expects to report 2008 sales of between MXN 8.85 billion and MXN 8.95 billion.
ARA put its preliminary margin on earnings before interest, taxes, depreciation and amortization between 20.6% and
21%, while home sales probably totaled 20,900 to 21,000 units last year. ARA said it will release its fourth quarter and
full year 2008 results on February 23.
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Construction & Infrastructure
Holcim Apasco To Invest USD 200 Million In Hermosillo Plant During 2009
January 22, 2009
Swiss-Mexican cement maker Holcim Apasco announced investment of USD 200 million for its Hermosillo plant, in
the state of Sonora, during this year. Holcim Apasco plans to invest a total of USD 400 million in the construction of
the mentioned facility, which will supply cement for infrastructure projects in Mexico, mostly in the Northwestern
region, and which will be operational by 2010. The plant will create 1,200 temporary jobs during the construction
phase and between 700 and 800 jobs once it is operational.
Spain's Construction Industry Crisis Forces Cemex To Change Strategies
January 23, 2009
The current crisis in Spain's construction industry has forced Mexican cement maker Cemex to halt production at its
Barcelona plant and to focus on other, more productive plants in Spain. According to Spanish press reports, Cemex
will now use the Barcelona plant as a distribution center. Changes might lead to a layoff of about 50 workers.
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Retail
ANTAD: Mexico Retailers See 2009 Same-Store Sales Down 4%
January 21, 2009
According to retail association ANTAD, Mexican retailers expect same-store sales to decline in 2009 for the second
consecutive year amid lower expectations for job growth, falling remittances from Mexicans living abroad, and less
consumer lending by banks. ANTAD said it sees same-store sales falling about 4% this year, which would make it the
worst year since 1996, when sales fell by more than 8%. ANTAD also said that retailers' investment this year will
decrease by 63% when compared to last year's figures, a drop amounting to USD 2.2 billion.
Comercial Mexicana Reaches Standstill Agreement With Banks
January 23, 2009
Mexican retailer Comercial Mexicana (Comerci) said it has reached a standstill agreement with Mexican banks as it
negotiates to restructure its liabilities. Comerci faces counterparty claims of USD 2.2 billion in derivatives losses while
recognizing only about USD 1.1 billion. Comerci said that under the agreement reached with the banks, creditors will
suspend legal proceedings against the company and will not initiate any proceedings before March 2. The agreement
complements another with U.S. banks before a U.S. court, which also runs to March 2.
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Transportation
KCSM To Invest Over USD 300 Million In 2009
January 20, 2009
U.S. railway company Kansas City Southern's Mexico unit KCSM announced plans to invest over USD 300 million
this year in projects, including the construction of a multimodal terminal in the port of Lazaro Cardenas, in the state of
Michoacan; the Megamex project, whose location is still undecided; and a project to build an international bridge
between the U.S. and Mexico. The firm will also destine USD 100 million to equipment maintenance.
SCT: Mexican Air Travel To Fall In 2009
January 23, 2009
Communications and Transport Minister Luis Tellez said that Mexico's air travel only grew 0.9% in 2008 when
compared to the previous year, and that it will decline during 2009, regardless of reductions in jet fuel prices. Tellez
recommended that airlines merge and implement new strategies in order to better take advantage of support by the
government as they address the country's air travel industry crisis. Other sources in the industry warned that some
airlines might have to file for bankruptcy if the trends persist.
AeroMexico Selected As "Best Airline In Mexico" By Global Traveler's Readers
January 21, 2009
Mexican airline AeroMexico has been selected as the "Best Airline in Mexico" for 2008 by Global Traveler's readers.
This is the second time the airline has led the competition and only the fourth year the category has been included in
the international travel magazine's annual survey. AeroMexico has been recognized consistently for its personalized
in-flight service, one of the world's best on-time flight records, the highest safety and quality standards ratings,
outstanding reliability and baggage handling performance, and exceptional value based on competitive fares and
superior service.
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Media & Entertainment
Televisa, Univision Settle Court Battle
January 22, 2009
Mexican media conglomerate Televisa and U.S. Spanish-language television leader Univision announced that they
resolved a long-running battle over their program-licensing pact and settled a related lawsuit. As part of the
settlement, Univision agreed to pay Televisa USD 25 million in disputed royalties and increase the license fees paid
to Televisa under its existing deal. Univision will also provide Televisa with at least USD 65 million annually in free
advertising on Univision's television networks for the next nine years. In exchange, Televisa affirmed its commitment
to continue to provide telenovelas exclusively to Univision through 2017. The companies are scheduled to have a trial
in March to decide whether Univision has the Internet rights to Televisa's programming. That case is also expected to
settle.
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Hospitality & Tourism
Mexican Tourism Fund To Generate 2009 Investment Of MXN 12.3 Billion
January 20, 2009
Mexico's National Tourism Development Fund (Fonatur) expects to generate MXN 12.3 billion of public and private
investment in tourism projects this year as the government aims to limit the local impact of the global financial crisis.
The investments will follow MXN 12.6 billion channeled into tourism development during the previous two years.
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Economy
Banxico: Inflation Falls In Early January
January 22, 2009
According to the central bank (Banxico) the country's high inflation has dipped in early January because of lower
prices for electricity and produce products. Banxico said inflation was running at a yearly pace of 6.4%, compared to
6.5% in December. Expecting the drop, Banxico recently cut interest rates 50 basis points to spur the economy and
help Mexico buffer the impact of the U.S. recession.
INEGI: Mexico Jobless Rate Falls To 4.32% In December
January 21, 2009
According to the National Statistics Institute (INEGI), Mexico's jobless rate fell to a lower than expected 4.32% in
December. The jobless rate, which was 4.47% in November, has been rising in recent months and is still close to a
more than four year high. The unemployment figure is not considered an accurate picture of Mexico's jobless rate
because of how it is measured, but analysts sometimes refer to it as a gauge of likely changes in consumer demand.
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Politics
Hispanics Greet Barack Obama Presidency With Optimism
January 20, 2009
According to U.S. press reports, the Hispanic community greeted with hope and optimism the inauguration of Barack
Obama as the 44th president of the United States. In Chicago, dozens of Hispanics gathered early in the day at a
Mexican community organization to watch on television the historic swearing-in of the first African American to
become the U.S. President. Some are skeptical but most are said to be very hopeful.
The Economist: Ebrard To Compete With AMLO For Presidency In 2012
January 19, 2009
According to British publication The Economist, current Mexico City Mayor Marcelo Ebrard is a very strong candidate
competing for Mexico's presidency in 2012. The Economist said Ebrard will be a contender against so-called mentor
Andres Manuel Lopez Obrador (AMLO), who lost the presidency against President Calderon in 2006, and who might
try again to become Mexico's president. Both Ebrard and AMLO are members of the leftist Democratic Revolution
Party (PRD).
Obama Reverses "Mexico City Policy" To Improve Women's Rights Worldwide
January 23, 2009
U.S. President Obama has issued an executive order repealing the Mexico City Policy, also known as the Global Gag
Rule, which prohibited federal funding from the U.S. government for nongovernmental organizations that discuss,
counsel on, or provide abortions in developing countries. U.S. legislators and others believe that the measure is an
important step in protecting women's rights and in improving health care worldwide. Mexico City's local Congress
passed a controversial law last year allowing abortion under certain circumstances.
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Justice, Safety & Crime
President Calderon Security Amendments Enter Into Force
January 23, 2009
President Calderon's proposals amending eight laws in the justice and safety fields that were passed by Congress in
December were signed into law and published in the Official Gazette (DOF) for their entry into force. The new norms
provide local authorities with new powers and regulate undercover agents' operations. Undercover agents will now
have a unique code name only known to the Federal Attorney General and the Public Security Minister, the head of
the agency ordering an investigation and the agent himself.
U.S. ATF: Mexico Border Violence Persists
January 18, 2009
According to former director of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Michael
Sullivan, the greatest challenge that his successor Ronnie A. Carter faces is violence along the Mexican border.
Sullivan said that violent drug trafficking organizations are killing police, government officials and innocent civilians,
and that the ATF needs to work more closely with both Mexican authorities and the roughly 6,000 gun dealers along
the Southwest border. The dealers play a key role in helping trace the source of weapons in Mexico, nearly all of
which are suspected to be smuggled from the U.S.
Bomb Detonated On U.S.-Mexico Border Bridge
January 25, 2009
Mexican officials said that a bomb found on the Puerta a las Americas international bridge linking the Mexican city of
Nuevo Laredo, in the state of Tamaulipas, to Laredo, Texas, was detonated by U.S. explosives experts using a robot.
Sources said a caller told the emergency operations center in Nuevo Laredo that six bombs had been planted on the
bridge. U.S. explosives experts searched the structure and found only one bomb, which was destroyed in a controlled
detonation. The bridge reopened a few minutes later to pedestrians and vehicles.
Colombian Police Chief Says Mexico Now At Center Of Drug Trade
January 25, 2009
Colombia's National Police Chief said that the war on drugs that his country has waged in recent years has shifted the
drug trade's "center of gravity" to Mexico. General Oscar Naranjo said that with the "disappearance" of the Norte del
Valle drug cartel, Colombia would try to prevent conflicts with Mexican traffickers. Naranjo said Colombian cartels are
trying not to compete with the Mexican (smuggling) routes to avoid conflicts. Naranjo added that Colombia is no
longer the provider of 90% of the world's cocaine, but only of 54%. The rest is provided by Peru and Bolivia.
Report: Mexico Is Not Prepared To End Drug War
January 25, 2009
According to a report by the Political Observatory for Latin America and the Caribbean, Mexico is not ready to end
and win the drug war it is currently fighting, due to the ability of drug cartels to endure and recover from authorities'
drug fighting operations. The report was based on a study prepared by French political science university, Sciences
Po, which stresses the fact that the government's focus should be to locate and disable police and military with links
to drug cartels.
Former Mexican Drug Czar Jailed On Corruption Charges
January 25, 2009
Prosecutors have arrested former Mexican drug czar Mariano Herran on corruption charges. Raciel Lopez, Attorney
General of the state of Chiapas, where Herran was arrested, said the latter was charged with embezzling funds while
working as Chiapas Economy Ministry last year. No further details were provided. Herran was Mexico's drug czar
from 1997 to 2000, replacing General Jesus Gutierrez Rebollo, who was convicted of aiding a top drug lord. Herran's
arrest follows the imprisonment of a dozen high-ranking officials with alleged ties to the Sinaloa cartel.
Drug Cartel Operative Disposing Of 300 Corpses With Acid Nabbed
January 23, 2009
Authorities in Tijuana, in the state of Baja California, have arrested Santiago Meza Lopez, a man accused of helping
drug kingpin Teodoro Garcia Simental, an alleged former lieutenant of the Tijuana-based Arellano Felix drug cartel,
dispose of at least 300 victims by dissolving their bodies in acid. The victims are believed to be rivals of Garcia
Simental. Meza, aka el Pozolero (the "Pozole (Stew) maker") said he was paid USD 600 a week.
Army Seizes Tons Of Marihuana, Pseudoephedrine
January 23, 2009
The army has seized 11.5 tons of marihuana and detained two people in the state of Zacatecas. The operation found
a total of 889 packs of different sizes containing the drug. Also seized in the operation were two SUVs with driving
plates from Mexico and the U.S., as well as a truck. In a separate operation, authorities seized 3 tons of
pseudoephedrine from South Korea. Soldiers and federal agents have found 8 million pseudoephedrine tablets
weighing 2.8 tons in 60 boxes aboard a ship in the Pacific port of Manzanillo, in the state of Colima.
Nine Armored Vehicles Stolen After Seizure By Authorities
January 19, 2009
The Attorney General's Office (PGR) announced that a group of unknown persons stole nine armored vehicles that
had been seized by authorities and were being kept at a ranch outside the city of Culiacan, in the state of Sinaloa.
PGR said that the incident took place when criminals entered the El Elefante Ranch, which lies along the road linking
Culiacan with the seaside resort of Mazatlan. The intruders "subdued and tied the three security guards hand and foot
and then escaped" in the vehicles.
Mexican Businessman Blames DEA For Cartel Attacks
January 25, 2009
Mexican businessman Alan Gamboa claims his rental property in Nuevo Laredo, in the state of Tamaulipas, has been
attacked by drug traffickers because U.S. Drug Enforcement Agency (DEA) personnel are using it to conduct an antidrug
trafficking intelligence operation. Gamboa said that since he began renting the property to individuals he thought
were U.S. Consulate workers, he has been targeted by cartel members. He says the cartel thinks he is an informant.
Police Arrest 18 Kidnappers, Rescue Two Captives
January 23, 2009
The State of Mexico's (Edomex) police department (ASE) said it rescued two kidnap victims during an operation in
which they arrested 18 people, one of whom committed suicide. The operation was launched following an anonymous
call reporting the presence of two armed men in the Zumpango shopping mall northeast of the capital, who were then
arrested by local police. The accused confessed that they engaged in extortion and kidnapping, while providing the
addresses of several buildings where they hid their captives.
Prominent Businessman Slain In Mexico
January 23, 2009
Rafael Fimbres Hernandez, a leading businessman in the city of Tijuana, in the state of Baja California, was gunned
down as he drove near an exclusive private school in the city. Authorities said they didn't have enough information
even to speculate on the motive for the slaying of Fimbres, whose family founded one of the state's biggest
supermarket chains.
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Arts & Culture
Authorities Seize Largest Batch Of Fossils For Sale
January 22, 2009
Authorities announced that they recovered 389 fossils, among which are the remains of dinosaurs and trilobites
hundreds of millions of years old, that were illegally being offered for sale at an antiquities store in the northern state
of Nuevo Leon. The Monterrey office of the National Anthropology and History Institute (INAH) and its Paleontologists
Council said that this is the most important confiscation to date in Mexico that includes unique fossils.
Fondo De Cultura Economica Celebrates 75th Anniversary
January 22, 2009
Mexican publishing house Fondo de Cultura Economica (FCE) will celebrate its 75th anniversary this year during an
international event on books and with the opening of two bookstores abroad, one in Buenos Aires, Argentina, and a
second one in Washington D.C.
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Other
Authorities Fear Need To Increase Water Rationing
January 24, 2009
Authorities warned that over the past few weeks the water level in reservoirs of the Cutzamala system have dropped
from 63% of capacity to 59%, which could require further rationing of the water supply for the Valley of Mexico. The
director general of the National Water Commission for the Mexico City valley area said that, for now, the program
consists of reducing the water supply three days a month until May, affecting some 5.5 million inhabitants of several
areas of Mexico City and municipalities of the Valley of Mexico.
Mexico City Invites People To Break World's Kissing Record
January 22, 2009
The Mexico City government is urging people to converge on the huge Zocalo city center and simultaneously kiss on
Valentine's Day. City Tourism Secretary Alejandro Rojas said the goal is to break the world record for the most
people kissing at one time. The announcement came two days after Guanajuato Mayor Eduardo Romero declared his
colonial city in central Mexico the "kissing capital" of the world. Romero was trying to disprove claims that he had
banned kissing through an antiobscenity law.
Mexico City Is The World's Top Religious Tourist Destination
January 22, 2009
According to local press, Mexico City finished first in a list of the world's most visited religious tourism destinations,
ahead of the Vatican and Lourdes in France. A study carried out by the Spanish Office of Tourism found that Mexico's
capital is the preferred destination of tourists seeking religious sites, largely because of its Basilica de Guadalupe,
which receives millions of pilgrims each year. The site of the basilica marks the spot where, according to Catholic
tradition, the Virgin de Guadalupe – Mexico's patron saint – appeared to indigenous farmer Juan Diego in 1531.
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