Travis Bembenek, Author at Mexico News Daily Mexico's English-language news Thu, 30 May 2024 20:16:18 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.3 https://mexiconewsdaily.com/wp-content/uploads/2022/10/cropped-Favicon-MND-32x32.jpg Travis Bembenek, Author at Mexico News Daily 32 32 Noriteru Fukushima, Japanese ambassador to Mexico, talks to Mexico News Daily https://mexiconewsdaily.com/japan/interview-japanese-ambassador-to-mexico-fukushima/ https://mexiconewsdaily.com/japan/interview-japanese-ambassador-to-mexico-fukushima/#respond Thu, 30 May 2024 19:17:07 +0000 https://mexiconewsdaily.com/?p=347852 As Mexico News Daily's "Japan in focus" week continues, CEO Travis Bembenek shares highlights from his talk with Ambassador Noriteru Fukushima.

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It’s easy to look at Mexico through the lens of the United States and Canada, and lose sight of many other important relationships. 

Mexico News Daily’s “Global Mexico” series is dedicated to highlighting the political, economic and cultural relationships between Mexico and other countries around the world. 

Tamanna Bembenek, Ambassador Fukushima and Travis Bembenek
Mexico News Daily CEO Travis Bembenek (right) with co-owner Tamanna Bembenek in the interview with Ambassador Fukushima. (Courtesy)

Recently I had the opportunity to sit down for a one-on-one meeting with the Japanese ambassador to Mexico, Noriteru Fukushima as part of our “Japan in focus” week. Below I share some highlights and takeaways from our 90-minute conversation about Mexico and Japan, and the future of their relationship. 

  1. Ambassador Fukushima was born in Mexico City (in Polanco) and has lived in Mexico multiple times throughout his life. However, Fukushima actually had to give up his Mexican citizenship in order to become Japan’s ambassador. 
  2. Mexicans love to travel to Japan. Mexico is the country with the highest percentage increase in tourists to Japan since the pandemic. Currently there are direct flights between Japan and Mexico operated by two airlines, Aeroméxico and All Nippon Airways (ANA).
  3. There are more than 7,000 Japanese restaurants in Mexico, ranking fifth among countries with the most Japanese eateries in the world.    
  4. The beautiful jacaranda trees that we enjoy every spring in many parts of the country were introduced in the 20th century by two Japanese expats — Tatsugoro Matsumoto and his son Sanshiro — who started a gardening business in the Roma neighborhood of Mexico City. 
  5. The Japanese are huge fans of Mexican lucha libre wrestling. In fact, there is currently a Japanese luchador wrestling in Mexico named Shigeo Okumura.
  6. Mexicans are some of the biggest fans of Japanese anime anywhere in the world — and have been now for many years. On a very personal note, my first job out of college nearly 30 years ago was creating and selling billions (that number is not a typo!) of Tazos to Mexicans of all ages working with the Sabritas company. At one point we were selling over 100 million Tazos per week in Mexico alone. By far the most popular characters were those of Japanese anime.
  7. There are currently about 1,500 Japanese companies across many industries with operations in Mexico. This number has increased by over 200 companies in just the past few years. Over 50% of the companies are in the manufacturing sector, including the automotive industry.  
  8. There are nearly 10,000 Japanese citizens currently living in Mexico (the 3rd largest population in Latin America after Brazil and Argentina) and around 79,000 Nikkei (people of Japanese descent) who call Mexico home. 
  9. The first people-to-people exchange between Mexico and Japan began over 400 years ago — with the first diplomatic relations dating back over 130 years. The first Japanese to arrive in Mexico came to the southern state of Chiapas over 100 years ago to work in the coffee plantations. The next waves came to the states of Coahuila for mining and Baja California for fishing.
  10. This year Japan and Mexico celebrate the 50th anniversary of the Japan-Mexico Training Program for the Strategic Global Partnership. Over 5,000 students and young engineers from Mexico and Japan have exchanged through and benefited from this unique government-to-government scholarship program. Many business, academic and government leaders furthered their studies through this program.
  11.  Since 1999, Japan has ranked fourth in terms of foreign direct investment in Mexico. Ambassador Fukushima sees huge potential for further investment by Japanese companies in important industries including in the automotive sector. 

Ambassador Fukushima has seen a lot in both countries over the years. He ended our conversation with an optimistic tone and expectations. Optimistic due to the opportunities that lie ahead, the strong historical foundation, and the deep ties of the relationship between the two countries. Mexico has potential and prospects due to its geographic importance in relation to nearshoring.

On a personal level, I have a deep respect for Japanese culture and companies. As a resident of Mexico and a big proponent of a strong Japan-Mexico relationship, I am excited to see what is to come for these two countries. 

Travis Bembenek is the CEO of Mexico News Daily and has been living, working or playing in Mexico for over 27 years.

This article is part of Mexico News Daily’s “Japan in Focus” series. Read the other articles from the series here

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The magic of music in Mexico: A perspective from our CEO https://mexiconewsdaily.com/mexico-living/magic-of-music-mexico/ https://mexiconewsdaily.com/mexico-living/magic-of-music-mexico/#comments Sat, 25 May 2024 17:10:25 +0000 https://mexiconewsdaily.com/?p=346002 Mexico News Daily CEO Travis Bembenek shares recent experiences of the magic of music in Mexico and how much it's a part of daily life.

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The Mexican love of music and dancing is something to admire, embrace and I think might just be a key element to their overall happiness.

Music is everywhere in Mexico. Traveling in a taxi anywhere in the country you’ll often get a mini DJ set — with the taxi driver never considering for a second that you might not want to hear their music. I actually think that many of them secretly take pride in their musical selection for you.

Both Taylor Swift and Madonna on their recent global tours performed more nights in Mexico City than any other city in the world, except for Los Angeles.

The sound of music is everywhere and seemingly enjoyed by everyone.

For Mother’s Day weekend here in San Miguel de Allende, there was a free concert in the town square by the Colombian cumbia group La Sonora Dinamita. Everyone there was singing and dancing — husbands and wives, mothers with their children, grandmothers with their grandchildren — it was magical. Pure bliss under the stars to end an oppressively hot week.

This past weekend was another example of the magic of music in our adopted hometown of San Miguel de Allende. On Friday night, after yet another long day of heat, we walked to the center of our town. In one small plaza in front of a beautiful 18th century church, a DJ had set up and was playing what can only be described as “cartoonish electronic dance music.”

People of all ages were dressed up as their favorite movie or cartoon characters and were dancing wildly and energetically to the music. I said to my wife: “that’s one way to shake off the stress of a long week — dress up like a Looney Tunes character and go dance like nobody’s watching!”

From that plaza, we walked a few more blocks to the main plaza in town. As is always the case, there were multiple mariachi bands playing to different groups of people. For some reason, it felt like more people were ordering up songs and dancing than usual. Perhaps the heat of the day inspired people in the cool evening to just want to get up and dance.

We saw a large extended family of nearly 20 people in a circle around a mariachi group, with a grandmother dancing away with what must have been her grandson. A sight like that is something truly special to observe. They didn’t just dance for a moment for a photo, but rather for multiple songs, and with the entire family singing and dancing around them.  We sat for at least an hour and enjoyed watching other groups celebrating birthdays and anniversaries with music and dance.

The next morning, which was Saturday, I walked into town to get some fruits and vegetables. Walking by yet another church (SMA has lots of them!), I saw a DJ set up about 100 feet in front of the entrance absolutely blaring Mexican ranchero music. Next to the multiple 2 meter high speakers of the DJ were pictures of the bride and groom about to be married. I wonder if the bride and groom specifically requested this? Or did some crazy uncle or cousin just decide to surprise them upon their arrival at the church for their big day? Either way, it couldn’t help but make me smile.

Later that evening, we went to a “Candlelight concert” at a hotel in town. A quartet of Mexican classical musicians played Coldplay’s greatest hits — surrounded by over 4,000 candles and under the light of the moon and stars. It truly was a wow moment. They played two concerts that night and I was surprised and inspired to see that probably 95% of the attendees were Mexicans of all ages.

On Sunday morning, the musical weekend continued as we were awakened at 7:30 a.m. to music blaring from behind our house at a local park. The DJ was doing a sound check in advance of a race that was to take place at 9 in the morning. The song that woke us up was none other than “Staying Alive” by the Bee Gees. I found it fitting — perhaps Mexicans have discovered that the secret to staying alive and happy is in fact listening to lots of music.

For those of you who know Mexico and have traveled a lot to other countries, what do you think? In what other countries of the world, would all of this have happened on one random weekend?

Travis Bembenek is the CEO of Mexico News Daily and has been living, working or playing in Mexico for over 27 years.

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Is Mexico getting too expensive too fast? https://mexiconewsdaily.com/business/mexico-too-expensive-too-fast/ https://mexiconewsdaily.com/business/mexico-too-expensive-too-fast/#comments Sat, 18 May 2024 18:08:42 +0000 https://mexiconewsdaily.com/?p=343809 Mexico News Daily CEO Travis Bembenek explains how increased wages without increased productivity can cause serious problems for businesses.

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As I have written about previously, Mexico is getting more expensive (particularly some parts), and businesses in Mexico are facing a delicate balance right now between labor costs and labor productivity, as they have seen their costs skyrocket over the past few years.

The national unemployment rate is at a record low, with many cities and states facing labor shortages. Labor costs have increased from the combination of low unemployment (leading to salary increases), years of higher than normal inflation and President López Obrador’s administration more than doubling the minimum wage since 2018. For many companies, the appreciation of the peso has even further exacerbated the problem.

Of course conceptually, the idea of workers making more money is a good thing — especially in certain parts of Mexico and certain industries that have historically had very low wages.

However, in reality, things are not quite that simple for businesses. It is critical for the increased wages to be accompanied by increased labor productivity. Not getting this balance right results in a workforce that ultimately is not cost-competitive or worse still, in a diminished product or service offered to customers.

In some industries, I have seen encouraging signs of getting it right. Examples include many advanced manufacturing industries like automotive, auto parts, aerospace, and medical devices that are investing in both technology and training to improve the productivity of their workers. I am also optimistic about the investments of productivity enabling companies like Amazon Web Services and Microsoft in Mexico that bring technologies and training to many professional services workers across large and small businesses.

Where I see a concerning trend playing out is with more basic service (think restaurants, hotels, stores) and construction industry workers. Many employers in these sectors in the past have not invested much in technology and training of their workers quite simply because they didn’t need to. Labor was cheap and plentiful and so it was more profitable to have low-cost unskilled workers, than invest in training and technology to improve worker productivity. This is no longer the case, and unfortunately as a result, I am increasingly seeing companies cut back on their work force to save costs. If this is not done in a thoughtful manner, it can result in a lower quality of service being delivered. Let me share an example.

Just this past week I was in Tulum for a few days. Prices there for many goods and services have increased dramatically from where they were historically, and now even relative to many parts of the United States. I increasingly saw businesses that had reduced their labor headcount in an effort to reduce costs. Restaurants, hotels, stores, pretty much everywhere I went, all had fewer employees than there would have been in the past.

Fewer employees that were dedicated to serve customers, keep things clean, do routine maintenance and make for an enjoyable customer experience. The reduced value versus the cost of what I was paying for was painfully apparent — and many of the employees I saw seemed overworked, frustrated and under-trained.

This could create a big problem for these businesses.

If customers don’t perceive value in what they are paying for, they aren’t satisfied and often won’t come back. Think about when you have had a bad restaurant experience somewhere — the odds of you returning go down dramatically.

This isn’t just a “Mexico” or “Tulum” problem. For example, recently Starbucks Inc released sales and profit results globally for the first quarter of the year that hugely disappointed investors. The CEO, on a painful earnings call, explained that they “did a poor job providing value to their customers, and as a result, customer visits were down.”

In other words, they probably raised their prices too much without also raising the customer value by an equal amount. It is critical for a business to get this balance right or they will likely lose customers, sales and profits.

The reaction to this problem is often further cutting costs, which only exacerbates the problem. In defense of business owners, the cost increases have increased so quickly that the problem is not easy to solve. However, it is precisely those businesses that invest in their employees through training and technology, even in relatively low-technology industries, that will survive and thrive.

As I was leaving the Riviera Maya area on our way to the airport, I passed an employee shuttle of the Belmond Maroma hotel on the highway. The employee shuttle was one of the nicest I have ever seen — unlike many employee shuttles throughout Mexico — and clearly was an example of the investment the company is making in their employees.

The shuttle had a slogan written in English, Spanish and Mayan on it: “Our employees are the heart of our company.”

More companies in Mexico will need to start thinking and acting similarly if they are going to survive in these increasingly complicated times.

Travis Bembenek is the CEO of Mexico News Daily and has been living, working or playing in Mexico for over 27 years.

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The Mexican Stress Test: How do you think you would do? https://mexiconewsdaily.com/mexico-living/the-mexican-stress-test-how-do-you-think-you-would-do/ https://mexiconewsdaily.com/mexico-living/the-mexican-stress-test-how-do-you-think-you-would-do/#comments Wed, 08 May 2024 20:47:18 +0000 https://mexiconewsdaily.com/?p=339320 Mexico News Daily CEO Travis Bembenek shares how he and his wife respond to the inevitable challenges of life in Mexico.

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Many people, including myself, wax poetic about how life in Mexico has changed them.

We talk about how the different pace of life has made us more patient. We share how we have a newfound appreciation for things we didn’t notice before.

But how do we really know if we have actually changed, or if we are just telling ourselves (and others) that we have changed? I present to you: the Mexican Stress Test.

A disclaimer: I just invented the Mexican Stress Test last night — but I do think I am on to something.

My wife and I have had the luck of having the power go out in our home in San Miguel de Allende two of the past three nights. The first time, it was very localized, just the 20 or so homes in our privada. Last night, it was big — basically all of central San Miguel went out, and there were outages reported in 21 states across the country. When the power goes out in our home, it is extra special because it also immediately cuts out our water and internet. So we get the trifecta — an immediate total loss of our power, water, and internet. Oh, and we don’t have a backup generator.

Here is where the Mexican Stress Test comes into effect. The question I would like each of you to ask yourselves is: what do you do when your power goes out at your home?

Be honest with yourself. Do you stress out? Get angry? Call the power company repeatedly until you get a clear answer? I’ll be honest, when I lived in the U.S., I did all of those things.

I truly had a “time is money, I must be efficient, and the power outage is wasting my time and making me inefficient” mindset. I would call the power company, text friends and neighbors to see what they knew and complain to my wife. In summary, I wasted the entire power outage being stressed about the power outage.

In Mexico, I have found that I take the outages totally differently.

Of course, it’s hard to imagine how you will react until it actually happens. Two nights ago, the power went out around 9 p.m. with an exploding transformer that startled us. My wife and I just laughed, sighed and set up a makeshift bed on our ground floor to sleep (as it is relatively cooler than our upstairs bedroom).

We had never done this before, it’s not like we were super prepared to do this, but it just seemed like the logical thing to do at the moment. We slept fine, woke up without power, and walked to a friends house in a nearby neighborhood that had power so we could shower. We bought breakfast at a little coffee shop and by the time we got home by late morning, our power was back!

Tonight’s outage was a bit more dramatic as the power went out all over the city. I was finishing a walk and all of a sudden, boom!, it went out and everyone immediately started coming out of their homes and hanging out on the street.

I needed to buy some water, so I went to the local mini-store to find them still open, lit by a single Coke bottle with a candle in it. I talked to a family in the street, petted an 8-week-old husky puppy for awhile that a woman was playing with in the street, and then headed home to find my wife just laying on top of the bed, in the dark, meditating and thinking.

Woman holding a husky puppy
A new friend Travis made while the power was out. (Travis Bembenek)

After making a wager as to how long this particular outage would last, I laid down next to her and we spontaneously started having a strategic brainstorming session about our business — Mexico News Daily.

There we were, in total darkness, with no internet, and with phone signals jammed from so much cellular traffic that there was nothing to do but just talk. Over the period of the next 90 minutes, completely uninterrupted by the many distractions of modern life, we had a wonderful, high-quality discussion about some strategic issues that needed to be addressed.

When the power came back on, we were actually a bit disappointed that it returned so quickly, as we were still deep in thought and conversation.

I can’t say that I hope for another power outage anytime soon, but as I reflect on these two evenings, I am surprised by how calm I was on both occasions. I wasn’t stressed, I wasn’t complaining about what I wasn’t able to do, I just took it in stride, enjoyed the journey, and actually got some great thinking done that I was having trouble getting to when the power was on.

I think I passed this particular Mexican Stress Test. And I feel damn good about it.

Travis Bembenek is the CEO of Mexico News Daily and has been living, working or playing in Mexico for over 27 years.

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5 places to visit in Mexico if you like nature, adventure and fewer crowds https://mexiconewsdaily.com/travel/5-places-to-visit-in-mexico-if-you-like-nature-adventure-and-fewer-crowds/ https://mexiconewsdaily.com/travel/5-places-to-visit-in-mexico-if-you-like-nature-adventure-and-fewer-crowds/#comments Sat, 04 May 2024 12:25:22 +0000 https://mexiconewsdaily.com/?p=337451 Mexico News Daily CEO Travis Bembenek shares his personal favorite destinations in Mexico for nature-loving, adventurous travelers.

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I am often asked about my favorite places to travel.

I think that, in general, a very good destination with fewer tourists is much better to visit than a “great spot” mobbed by people taking selfies.

I might sound a bit dated in saying this, but travel in the social media era baffles me. I am often astonished at people who seem to care more about their selfie than actually looking at and enjoying the place they are visiting. So many times, I’ve seen people spend significant time and energy trying to get the perfect photo (with themselves in it), and then simply move on to the next selfie spot.

I also have noticed over the years, and increasingly so, that many beautiful spots around the globe are getting a lot more crowded than they used to be. It might still be the post-pandemic travel bounce, or increased accessibility of travel, but it feels like something more than that. These really photogenic places around the globe are shared on social media so voraciously — of course, with absolutely perfect photos — that they’re now crowded with tourists looking to replicate those photos for their own social media accounts.

Part of what makes Mexico so special to me is that you can still find unbelievable places that are unspoiled, beautiful and uncrowded. Of course, they are getting discovered too and receiving more tourists, but they are still years behind the huge crowds of many other tourist hotspots.

With that in mind, I am sharing here five special places in Mexico for anyone looking for nature, adventure and fewer people. It’s still a good idea to follow some tips to avoid crowds even in these less discovered locations.

These destinations most certainly aren’t for everyone – perhaps not for most – as they don’t have the same range of accommodations, they aren’t easy to get to and they might entail some decidedly “unglamorous” moments.

My intention here is of course not to increase mass tourism to these destinations, but rather inspire the truly adventurous out there to add these locations to their bucket lists.

Huasteca Potosina, San Luis Potosí

Never in my life had I stayed in one hotel for 7 consecutive nights until we did here. Seven days straight of pure, unspoiled, uncrowded nature.

Waterfalls, thermal pools, stand-up paddleboarding in a jungle river, whitewater rafting, canoeing, ziplining, waterfall jumping, birdwatching, seeing pumas and jaguars in their natural habitat, I could go on and on.

It’s not fancy, it can be swelteringly hot, but this part of Mexico is a guaranteed awesome natural adventure.

Grutas de Tolantongo, Hidalgo

Imagine over 80 natural hot spring pools in the mountains, each with different temperatures, each with an amazing view, each of which can be enjoyed during the day or under the stars.

Hot spring at Grutas de Tolantongo.
A hot spring at Grutas de Tolantongo, in the state of Hidalgo. (Archive)

An underground spring of hot water feeds this incredible cave and river system. The hotels are 2 stars at best, the food is 1 star at best, but the spot is absolutely epic!

Isla Holbox, Quintana Roo

A 2-3 hour drive from Cancún, Playa del Carmen or Tulum and then a ferry ride out to the island means Isla Holbox is not easy to get to, but it’s worth the effort.

All vehicles on the island are golf carts or smaller. The island is growing fast, but it still has a pace no longer found in most places on the planet.

Isla Holbox
The crystalline waters and white sandbar of Isla Holbox beckon. (Depositphotos)

Strolling in the crystal-clear water on the sandbar that goes on for miles into the ocean is the main activity. It’s a surreal experience to walk so far out into the ocean in ankle- to-knee-deep water — spotting fish, sting-rays, flamingos and more.

Bacalar, Quintana Roo

A 2.5 hour drive south of Tulum, and soon with its own Maya Train stop, Bacalar is increasingly getting discovered and touted as the “Maldives of Mexico.”

Bacalar is actually a large lake that is also known as “the lagoon of 7 colors.”

Lake Bacalar in southern Quintana Roo.
Lake Bacalar in southern Quintana Roo. (Gobierno de México)

The water color is stunning, the nature activities amazing, and it’s just now getting discovered. Truly a beautiful and relaxing place to visit.

Puerto Escondido-Mazunte, Oaxaca

This stretch of about 70 kilometers of coastline is still truly wild and undiscovered compared to many beach areas in Mexico.

On these beaches I have been within a few meters of pods of whales, seen thousands of dolphins, taken a small river boat next to giant crocodiles, sat next to hundreds of sea turtles laying eggs, kayaked at dawn with thousands of birds, and released baby sea turtles at sunset.

Every day, people gather at Punta Cometa, Mazunte, to watch the sunset. (Tomás Acosta/Cuartoscuro)

Each and every one of these wildlife events was truly special and among the top nature experiences I have had in my life. Oaxaca sunsets are stunning, the crashing waves mesmerizing and the beaches are still unspoiled. Throw in the people, the food and the culture, and you have an unbeatable experience.

If you love nature and have a sense of adventure, you can count on enjoying these recommendations. So forget about that selfie, leave the phone in your backpack and get out and explore this amazing country!

Travis Bembenek is the CEO of Mexico News Daily and has been living, working or playing in Mexico for over 27 years.

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Is senior health care an untapped opportunity in Mexico? https://mexiconewsdaily.com/business/is-senior-health-care-an-untapped-opportunity-in-mexico/ https://mexiconewsdaily.com/business/is-senior-health-care-an-untapped-opportunity-in-mexico/#comments Sat, 27 Apr 2024 17:23:20 +0000 https://mexiconewsdaily.com/?p=334532 Mexico News Daily CEO Travis Bembenek considers the market for senior health care, particularly for the growing number of expats moving to Mexico.

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At Mexico News Daily, we highlight key growth industries and report on the major investments taking place in Mexico.

Just earlier this week, we reported on how Mexico has received announcements of foreign direct investment (FDI) from January to April 15 of this year totaling more than all FDI recorded in 2023, which was a record year.

We get a lot of questions from readers asking us about the big opportunities for investment in Mexico moving forward, and we try to highlight some of those as well.

Water scarcity is a huge issue across the nation and we have been covering the risks as well as opportunities, and what some companies are doing to help address the problems. We have also covered the automotive, digital services, medical device production, semiconductors and aeronautics industries, which are attracting significant investment.

Other big opportunities that we have written about are in infrastructure, commercial, residential and industrial real estate, as well as in agricultural production. Just recently the CEO of the American Chamber of Commerce of Mexico, Pedro Casas, highlighted 4 key growth industries in an article he wrote for Mexico News Daily.

A significant opportunity that I think is still in its infancy is the senior health care services industry.

Many people have asked me for my thoughts on this topic, specifically regarding the areas of senior living and care, as well as medical tourism. I don’t have expertise in these industries, and so far, our coverage has been limited to a recent article we did on Mexico’s first hospice care clinic, which is opening soon in San Miguel de Allende.

However, it is an intriguing topic for many reasons. Today there are at least 1.6 million U.S. citizens and over 12,000 Canadians already living in Mexico — many of them are retirees. Many more are coming every day. Many have been in Mexico for years and have no plans to go back to live elsewhere. As we all know, providing safe and affordable health care services is already a major concern in many parts of the U.S. and Canada.

Rapidly rising costs — from the products and services themselves, to the real estate, to labor — have all contributed to the skyrocketing total costs of care. To make matters worse, since the pandemic, many hospitals have been struggling with labor shortages that make it difficult in many areas to provide the care needed.

Surprisingly, there are very limited options for senior living and senior care in Mexico focused on the foreign market. I have heard of assisted living facilities focused on serving seniors in places like San Miguel de Allende, Los Cabos, Puerto Vallarta and Chapala/Ajiiic.  However, these types of specialized services being done in Mexico have their own challenges — language barriers, staff training, on-site specialized medical care, and healthcare insurance — just to name a few.

Mexico seems like a very logical answer to many of these problems considering that the country has a relatively young and well-trained workforce. In addition, the costs of everything from labor to real estate are often significantly lower. The ability to have 24-hour care in most parts of Mexico is far more economically viable. Mexicans culturally are accustomed to very close extended and multi-generational families. As a result, it is a culture that is known for a high degree of respect, warmth, care and empathy towards elders.

Most people I speak with who have had experiences with Mexican doctors, nurses, and health care providers overwhelmingly have nothing but positive things to say about the quality of care that they have received.

Health care is arguably one of the most complicated industries on the planet, so I am not saying that this opportunity would be easy. As with any business idea, it comes with significant risks and challenges. Building and managing adequate facilities with the properly trained staff in Mexico would not be inexpensive or risk-free. But the opportunity is too big to not gain more attention from the business and investment community.

Based on what I hear from talking to expats around the country, this is a large and growing market that is here to stay; there is a significant market need; and supply is extremely limited.

Let’s hope that some bright entrepreneurs and business folks go after it, as demand for these services increases.

Travis Bembenek is the CEO of Mexico News Daily and has been living, working or playing in Mexico for over 27 years.

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How much does it really cost to live in Mexico compared to the US? https://mexiconewsdaily.com/mexico-living/how-much-does-it-really-cost-to-live-in-mexico-compared-to-the-us/ https://mexiconewsdaily.com/mexico-living/how-much-does-it-really-cost-to-live-in-mexico-compared-to-the-us/#comments Sat, 20 Apr 2024 18:42:37 +0000 https://mexiconewsdaily.com/?p=330222 Mexico News Daily CEO Travis Bembenek shares his take as an expat on rising prices in Mexico, and how the cost of living compares to north of the border.

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It’s hard these days to avoid reading something about the rising cost of living in Mexico.

YouTube videos targeting expats are everywhere — carefully mapping out how much the costs of certain items and experiences have increased in different parts of Mexico. The commentary reached a fever pitch this past week with the peso hitting 16.30 to the US dollar, an almost 9-year high and a 30% move in just the past two years.

It is undeniable that there is a noticeable difference in the prices of most goods and services these days, even when paying in pesos and not thinking about the price in dollars.

This of course is due to the wave of high inflation that has affected pretty much every corner of the globe over the past several years. When one adds the impact of the recent peso appreciation, some price increases are downright startling! This has created some sticker shock and “Mexico soul searching” for more than a few expats. For decades now, expats in Mexico have been able to rely on a weak peso, which would often offset any inflation and make the country an affordable place to live for those from the U.S. or Canada. Those days are over.

Let me share a simple real-life example. I like to go to our local farmers’ market for breakfast on Saturday mornings. Last week, I ordered my usual, from the same three vendors: a fresh-squeezed orange juice (it would be really hard for me to go back to Tropicana at this point!), a fresh-baked cinnamon roll from a local bakery (sorry Cinnabon!) and two tacos with freshly made blue corn tortillas.

Two years ago, this meal cost me 86 pesos. Today, the exact same meal from the exact same vendors (all using 100% local products, nothing imported which could distort the costs) cost me 130 pesos. In other words, just the pure inflationary cost increase in pesos of my local breakfast is 51% over two years or 25% per year! Now, when we add in the appreciating peso impact, the increase is even more dramatic. The meal two years ago at a 22 peso to US dollar exchange rate cost me US $3.91. Today, that same meal cost me US $7.88 (at 16.5 pesos to the US dollar). This means that, in dollars and taking into account the inflation, the same meal from the same vendors increased 102% in price in just two years!

My point here is not to debate if the meal is worth US $7.88 or to compare how much the meal would cost in San Francisco or Dallas. I am simply pointing out the scale of the cost increases for expats in Mexico.

While costs of some goods and services have increased A LOT in Mexico over the past several years due to inflation and a stronger peso, does that mean living in Mexico now costs as much as living in the United States? Not at all. Let me explain.

There is another very important component that I think most of the YouTubers fail to point out — and that is the differences in levels of consumption. When I refer to consumption, of course I am generalizing as the consumption of each individual and household is different. In general, as I have personally experienced and have heard many expats agree, they consume far less in Mexico than in the United States.

In the U.S., consumption is usually quick, affordable and easy: online ordering, easy return policies, nearly constant sales promotions, ample parking and short check-out lanes all make it effortless. However, in Mexico, buying things can require more effort: service is often slower, returns are nearly impossible, lines are longer, parking is harder. I find this makes me buy less. Depending on where you live here, you might walk to the grocery store and as a result, end up only buying only you can carry home. People often have smaller cars and homes here which equals less consumption. Changing the décor of your home often is as simple as some new plants or flowers (less consumption). I’d go so far as to say the pressure to “keep up with the Joneses” is felt less by expats living in Mexico.

The bottom line is if you import the same lifestyle you had in the United States when moving to Mexico, you’ll really feel the pain of the increased costs. If you modify your consumption lifestyle, you will spend less, as well as be a lot less frustrated.

As a result, even if items cost a lot more than they used to, or even if they begin to approach U.S.-level prices, because there’s a tendency to consume less in Mexico, the overall cost of living is still much lower.

So, how much does it really cost to live in Mexico? Having lived here now for four years, I have been able to carefully do an “all-in” comparison of our monthly total living expenses in San Miguel de Allende versus Chicago. The result is that we spend 30-40% less in any given month here compared to up north.

Has this lifestyle change led to less fulfillment, less satisfaction, less happiness? Quite the contrary — at least in our case, we are healthier, happier and feel more fulfilled than ever.

I would love to hear your thoughts in the comments section. Do you agree with my analysis of the cost increases? Do you agree with my thoughts on consumption in the United States compared to Mexico?

Travis Bembenek is the CEO of Mexico News Daily and has been living, working or playing in Mexico for over 27 years.

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Why don’t more students from the US and Canada study abroad in Mexico? https://mexiconewsdaily.com/mexico-living/why-dont-more-students-from-the-us-and-canada-study-abroad-in-mexico/ https://mexiconewsdaily.com/mexico-living/why-dont-more-students-from-the-us-and-canada-study-abroad-in-mexico/#comments Sat, 13 Apr 2024 10:44:34 +0000 https://mexiconewsdaily.com/?p=327111 Mexico News Daily CEO Travis Bembenek shares his own study abroad experience in Mexico and its impact on his professional and personal life.

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The year was 1995, but I remember the anxiety I felt like it was yesterday.

It was my second year at the University of Wisconsin-Madison, and I found myself looking around at what some of my best friends were studying: engineering, chemistry, accounting, physics.

I wondered, how will I find a good job with a generic management/marketing degree?

So I started thinking about what I could do that would give me some more experience and hopefully, more marketability to get hired after graduation.

The North American Free Trade Agreement (NAFTA) had just gone into effect the year before, and I remember Ross Perot talking about the infamous “giant sucking sound” of jobs going to Mexico. Was it time to learn Spanish?

I intensely disliked Spanish in high school and did the minimum required to get into college, but maybe it was time to try again? I looked into the study abroad program of the UW Madison Business School to learn more about programs in Spanish-speaking countries.  My options: Santiago, Chile or Barcelona, Spain. Both great places, but neither struck me as very relevant to a future career in business. Mexico seemed like a more logical choice, but I wasn’t sure how to go about it.

This being the pre-Google era, I researched by reading the campus daily newspaper, and one day came across an ad for a study abroad program in Guadalajara through Beaver College (now called Acadia University) in Pennsylvania. Had I ever heard of Beaver College?Of course not! Did I know anything about Guadalajara? Absolutely not! But I decided to take the plunge — which turned out to be the single most important and impactful decision I’ve ever made in my professional life.

Fast forward to 2024, thirty years later, and it’s both surprising and disappointing to learn how few students study abroad in Mexico. I looked at the UW-Madison Business School study abroad options currently available and there are over 30 programs to choose from around the globe. In fact, there are programs at five different universities in Spain, but still none in Mexico! I couldn’t believe it. How can it be that so many people are coming to Mexico to vacation, so many foreigners are now living in Mexico, so many business people from around the world are coming to work in Mexico, and yet such a tiny amount of students come here to study?

A quick Google search shows that over 25,000 U.S. students study each year in Spain, over 14,000 in France, and yet less than 3,000 study in Mexico. What’s going on here? Are kids just generally not interested in Mexico as a study-abroad option? Are parents not interested in sending their kids to study in Mexico? Are U.S. and Canadian universities lagging in offering programs in Mexico? Are Mexican universities not stepping up and offering attractive programs?

I understand that Mexico might not be as “attractive” as a European country in some respects. Europe offers an unparalleled experience to study with people from all over the world and the opportunity to easily travel to many countries — which is invaluable.  But Mexico has so much to offer as well, given the increasing political, business, social, and cultural ties across North America.

Taking me as an example of a student who did study abroad in Mexico, the experience was life-changing and the impact was lifelong. Mexico offers a much easier opportunity to “keep up the connections,” given the proximity to the United States and Canada. Many expats I’ve met who are now living in Mexico studied here earlier in their lives.

It’s important to remember that the overall impact of a study-abroad program is not just academic, but rather as an experience. A few highlights from my time here included weekends on isolated tropical beaches, exploring ancient pre-Columbian pyramids, discovering 500-year-old cities, learning how to dance in Acapulco’s clifftop discos and camping in a Chiapas rainforest. I was invited countless times to stay, eat, and travel with my new Mexican friends’ families, and most importantly, I learned how to be independent, curious and confident.

Why not study art in the footsteps of Frida Kahlo in Mexico City? Why not learn anthropology in the shadows of Maya pyramids in the Yucatán peninsula? Why not take business classes at a university in Monterrey, Guadalajara, Querétaro, or Guanajuato where there is a massive investment boom? Why not take culinary classes (along with some surf lessons) in Oaxaca? Why not challenge yourself by taking an economics or liberal arts class somewhere in Spanish? The opportunities are endless.

I recently spoke to the U.S. Embassy about what is being done to foster student exchange on both sides of the border, and I was happy to see that some progress is being made.  However, my sense is that there is a lot of work yet to be done to fully take advantage of the opportunity.

We at Mexico News Daily believe that this is an important topic to explore further, and we will be providing increasing coverage of the issue going forward. Our intent is to inspire new ideas, debate and dialogue, so please share your thoughts in the comments. And in the meantime, try to inspire a student you know to study in Mexico!

Travis Bembenek is the CEO of Mexico News Daily and has been living, working or playing in Mexico for over 27 years.

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Is there an emerging anti-foreigner backlash happening in Mexico? https://mexiconewsdaily.com/mexico-living/is-there-an-emerging-anti-foreigner-backlash-happening-in-mexico/ https://mexiconewsdaily.com/mexico-living/is-there-an-emerging-anti-foreigner-backlash-happening-in-mexico/#comments Sat, 06 Apr 2024 14:38:46 +0000 https://mexiconewsdaily.com/?p=324486 Mexico News Daily CEO Travis Bembenek shares his thoughts on some flare-ups of anti-foreigner sentiment in Mexico that have gone viral.

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Let me start by expressing that I’ve always felt welcomed in Mexico. In the nearly 30 years I’ve been visiting the country for business, vacation, and now as a permanent resident, I can honestly say I’ve rarely, if ever, felt unwelcome. While speaking the language certainly helps, it’s more than that — I’ve found Mexicans to be generally warm, welcoming, and friendly.

So, what do we make of the emerging backlash on social media calling out foreigners living or traveling in Mexico? What’s the real cause, and is it something to be concerned about? Allow me to share my thoughts and perspective on this complex issue.

To begin with, it’s important to remember the long history between the United States and Mexico. Dating back to the 1800s, there was a war between the two nations, during which the U.S. military advanced all the way down to Chapultepec Castle in Mexico City, and resulting in Mexico losing over 50% of its territory to the United States. Obviously, this is not something easily forgotten. One of the most famous statues in Mexico, located in Chapultepec Park in front of the castle, honors the “Heroic Boys,” six young Mexican soldiers who died in the battle. According to legend, one of the six wrapped himself in the Mexican flag and jumped to his death to prevent the flag from being taken by the U.S. military.

In more recent history, former U.S. President Trump often exacerbated negative perceptions between the two countries with his inflammatory language about Mexico and its people. Just in the past few weeks, current U.S. Speaker of the House Mike Johnson made it clear in a press conference that “we are the United States, Mexico will do what we say…”

Imagine a high-ranking Mexican political leader making such a statement about the United States, and it’s not difficult to understand why tensions are escalating. Add to this the presidential elections this year in both countries, and you have the perfect recipe for increased strain on the relationship.

Furthermore, Mexico’s current president, Andrés Manuel López Obrador (AMLO), has been more nationalistic than many recent presidents. He has prioritized protecting and investing in state-owned electric (CFE) and oil (Pemex) companies, along with large infrastructure projects primarily undertaken by the Mexican military, such as the new Mexico City airport (AIFA), the Tulum airport, the Maya Train and the transoceanic train and trade corridor. He has also emphasized that the relationship between the U.S. and Mexico should be one “between equals.” Recently, he went on the popular U.S. news show 60 Minutes to refute Speaker Johnson’s comments by saying, “No, no, Mr. Legislator … that is disrespectful … we are an independent nation, free, sovereign … we are not the colony of any country … we are not subordinate to any other nation.”

So, on one hand, there’s a long history up to the present day of politicians stoking emotions. On the other hand, there’s an increasingly confident Mexico not willing to remain as passive as it has historically been. Mexicans are well aware that they are now the top exporter to the U.S. and that China views them as a strategic country, welcoming their investments. They also know that record numbers of Americans and Canadians are vacationing and living in their country. In short, Mexico realizes that it is more important and relevant to North America and the world than perhaps ever before.

Another aspect of this story is the “gentrification” occurring in many parts of Mexico. While much of this trend is driven by an increasingly wealthier and more mobile Mexican population, the influx of Americans and Canadians into many neighborhoods and cities is clearly exacerbating the issue and providing a focal point for resentment. Many social media posts imply that gentrification by fellow Mexican citizens is one thing, but when it’s done by foreigners who often don’t speak the language, seem unwilling to embrace many aspects of the culture (and even complain about parts of it), and constantly talk about “how cheap” it is here compared to back home, it creates an entirely different level of emotion and resentment.

I frequently witness examples of this in San Miguel de Allende, where I live, and while there is still relative harmony, there are increasingly difficult questions without easy answers. For instance, imagine being priced out of the neighborhood you live in, only for your former housing unit to be sold to someone who doesn’t even live in the city and then rented out to tourists. Some people benefit from this, but clearly, others do not. Imagine foreigners who have lived in town for a year or two complaining about the noise and traffic from your several hundred-year-old traditions. I increasingly see and hear these types of situations occurring, and one only needs to imagine these things happening in the U.S. or Canada to understand why people are expressing their frustrations on social media.

Just this past week, another example of increasing tensions occurred in the Pacific Ocean seaside city of Mazatlán. Foreign tourists listening to a sunset guitar solo were interrupted by noise from a local group on the beach playing banda music. While the music has deep roots and tradition in Mazatlán, it ignited a debate on whether this “local” music should take priority over music that may be preferred by outsiders (Mexican or foreign). To many locals in Mazatlán, it felt like yet another example of gentrification and its consequences being imposed on them.

I believe this issue is not going to dissipate quickly and should be taken seriously. The upcoming elections on both sides of the border will likely only further inflame emotions, and as Mexico continues to rise economically, the country rightfully becomes increasingly confident and proud of its culture, traditions, history and language.

What does this mean for foreigners living or traveling to Mexico? I think these incidents serve as an important reminder that whether we are in Mexico for a two-day business trip, a one-week vacation, or as a resident with a home, we are guests in this country. I would say the same to any foreign visitors to the U.S. or Canada. Perhaps many Americans and Canadians need to spend more time seeking to understand the history and the present of Mexico and take extra steps to ensure that they are respecting it, even if they don’t completely agree with it.

If the U.S., Canada, and Mexico can foster this mutual respect and cooperation, the potential for all three countries to be friends and partners is enormous. This will likely require residents of all three countries to invest more time in learning, understanding, and appreciating each other. The effort is more crucial and strategic than ever, so let’s commit to it!

Travis Bembenek is the CEO of Mexico News Daily and has been living, working or playing in Mexico for over 27 years.

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Behind the scenes at Mexico News Daily: Our interview on ‘Mexico Matters’ podcast https://mexiconewsdaily.com/mexico-living/behind-the-scenes-at-mexico-news-daily-our-interview-on-mexico-matters-podcast/ https://mexiconewsdaily.com/mexico-living/behind-the-scenes-at-mexico-news-daily-our-interview-on-mexico-matters-podcast/#comments Sat, 30 Mar 2024 13:28:13 +0000 https://mexiconewsdaily.com/?p=321443 In a wide-ranging conversation with podcast host Mariana Campero, MND's owners discussed their move to Mexico, doing business here and safety.

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Naturally, we at Mexico News Daily believe strongly in the increasing relevance and importance of Mexico on the world stage.

So we were honored to be recently invited to participate as guests on the “Mexico Matters” podcast hosted by Mariana Campero and share our thoughts on our personal journey, as well as discuss topics such as elections, nearshoring, safety and migration.

Mariana has an exceptional background as the former CEO of the Mexican Council on Foreign Relations (COMEXI), a current member of the board of directors of Citibanamex, and current Senior Associate of the Washington, D.C.-based Center for Strategic and International Studies (CSIS).

Mariana is currently based in New York City and she regularly interviews political and business leaders on her “Mexico Matters” podcast. Former guests of the podcast have included Larry Fink (CEO of Blackrock), General David Petraeus (former director of the CIA) and Robert Lightheizer (former U.S. Trade Representative).

Mariana asked my wife and co-owner Tamanna and me a wide range of questions in the nearly 30-minute interview. The title of the podcast is “Americans are migrating to Mexico too” and we began with a discussion on the numbers, trends, and issues around the fast-growing migration of Americans other foreigners to Mexico. We talked about the upsides of this migration, as well as some of the challenges that it is causing.

We also discussed the fact that many of these foreigners come to Mexico to do business, and highlighted some of the issues that we personally have faced, both in our corporate and entrepreneurial experiences in the country.

Mariana also asked us about the serious issue of violence against journalists in Mexico, especially during electoral campaigns, and what this means for our team. We shared with her the strategies we use at MND to keep our team safe, and how our content is focused on what is relevant for our readers to be better-informed residents or visitors to Mexico.

We ended with some discussion about the impact of nearshoring on the country’s economy, from the perspective of our own personal experiences and reporting.

What the team at MND does is not easy, and not without risk, but we are immensely proud to be able to bring you a front-row seat to Mexico. We strongly believe that good journalism keeps our readers around the world informed, to make better choices and to provide optimism rather than worsen anxiety.

Please take a few minutes to listen to the podcast below, and thanks for supporting Mexico News Daily.

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