New highway development

Oaxaca has been the recipient of federal grant money to rebuild the coastal highway from Puerto Escondido to Huatulco, expanding it to two lanes in each direction, and construct a new highway from Oaxaca City to Ventanilla (near Puerto Escondido) which will cut travel time substantially for travelers to the coast. The investment is part of Calderon’s plan to promote tourism on the Oaxacan coast and generate development similar to what is found on the Riviera Maya or the Acapulco-Ixtapa route in Guerrero.

Progress in highway development in Oaxaca (taken from

Progress in highway development in Oaxaca (from

According to a recent article at, construction on the remaining 104 km in the Oaxaca-Costa route has been approved and is restarting after budgetary problems stalled the project in 2009.  That route is scheduled to complete in 2 years for a total cost of 600 million pesos.

The east-west route from Puerto Escondido to Huatulco has been halted at El Tomatal due to a dispute with the agricultural community of San Francisco Cozoaltepec, which has filed a claim against the Secretaría de Comunicaciones y Transportes (SCT) in the agrarian courts. They are requesting compensation for allowing the roads to pass through the communal land in Santa María Tonameca, and it seems the neighboring district of San Pedro Pochutla will want a piece of the pie too. There will be no further construction until the matter is settled in court, and this particular court is known for moving at speeds that one friend described to me as “como una tortuga”.

The highways have been hyped up somewhat to generate great expectations in coastal towns for improved revenue from tourism, which has spurred increases in land purchases by small developers and aspiring home owners. Businesses imagine flocks of city dwellers from Oaxaca (and Mexico) as travel time to the coast drops from 8 hours to only 3.

However, the highways may become bogged down in further political infighting and budgetary mismanagement and will likely take longer to complete than anticipated. Once eventually finished, it may indeed bring hordes of people from Oaxaca City during Semana Santa and Christmas, and  more condos will be sold to rich Mexicans. But the condos and hotels will still be vacant most of the year, and for most of the area, a huge influx in tourism seems unlikely until general conditions in Mexico improve. Most Oaxacans (and other Mexicans) work 6 days a week and don’t make enough money to take weekend trips to the coast even if it is only 3 or 6 hours away, and those that have a lot of money would probably prefer to spend vacations somewhere with more services, such as Acapulco or the Riviera Maya on the Caribbean.

Unfortunately, over recent years, crowds at the beaches during Christmas and Semana Santa have gotten smaller, not bigger. However, despite the fact that tourism numbers only remain steady or are falling in recent years, investors continue to build. In many places more people come to the coast with the goal of providing services (selling things, i.e. building a posada, or starting a restaurant) than consuming them, and this trend will probably continue in the short term.

This trend also pushes local prices up, and the price inflation derived from anticipated growth has not helped attract tourists or benefited locals. In the smaller communities, locals would benefit much more from selling their extra land assets at a fair price and investing the profits elsewhere, rather than waiting indefinitely for prices to meet their ever growing expectations.

Of course it could be that development explodes after the economic crisis dies down in a few years, and that land prices are indeed at bargain rates. However, the frantic pace of development over the last decade was spurred by credit availability, not actual demand, and in most tourist locations in Mexico and worldwide there are now too many hotels and many are failing. Appetite for new development may not return quickly, with governments suffering heavy debt loads and so many new projects being sold cheap out of foreclosure.

Thanks for reading! Please share your comments below.
You might also like these related articles:

Post Tags: construction, development, highway, roads

Do you live in Oaxaca? Like the article? Would you like to have articles sent to you when they are posted?

RSS Feed Subscribe to our feed to receive articles when they are posted, or subscribe to comments to follow responses.

Subscribe by email Subscribe by email and have new articles emailed directly to your account!

Comments ( 13 )

Buy Yankee Candles Cheap…

[...]below you’ll find the link to some sites that we think you should visit[...]…

yankee candles cheap added these pithy words on Feb 28 11 at 10:43 am

qpvi nyuyg phen375 twxrar w sc o cvb

hzcq ojdne [URL= – phentermine[/URL – iqfjvh d dp g gab

slimming tablets added these pithy words on Feb 07 11 at 12:31 am

[url=]levothroid and itching[/url] [url=]melissa bayer[/url] [url=]cognex 5000[/url] [url=]dilute hcl[/url] [url=]dimethyl sulfoxide handling[/url] [url=]buy benzocaine powder uk[/url] [url=]tricor generic[/url] [url=]intrauterine vertical band[/url] [url=]importance of thiamin in the diet[/url] [url=]etodolac drug[/url] [url=]are septra bactrim the same[/url] [url=]vegetable glycerin stains[/url] [url=]sissy bar harley dyna[/url] [url=]drug felodipine[/url] [url=]paxil v xanax[/url] [url=]quitting levoxyl[/url] [url=]levoxyl switched[/url] [url=]recreational use for risperidone[/url] [url=]vess ivanov[/url] [url=]too much ultram er crossed eye[/url] [url=]living well medical supp nj[/url] [url=]canon zr 900[/url] [url=]cheap diet pill tenuate[/url] [url=]le tourment vert[/url] [url=]fast delivery meridia no prescription[/url] [url=]progesterone and infertility[/url] [url=]discontinued almay make up[/url] [url=]tobradex eye[/url] [url=]norco hills homeowners association[/url] [url=]stainless steel vhp bi carriers[/url] [url=]salt and baking soda nasal cleanser[/url] [url=]sundown pet scottsdale[/url] [url=]cbc tech prep credit[/url] [url=]klean[/url] [url=]mylanta gelcaps antacid[/url] [url=]canine lyme amoxil[/url] [url=]bob ferra[/url] [url=]gentamicin sulfate opthalmic solution[/url] [url=]mdp 1020 battery[/url] [url=]hormones breast cancer[/url] [url=]prescrition drug chlordiazepoxide[/url] [url=]idec home[/url] [url=]vanilla wafers recipes[/url] [url=]ensure boost[/url] [url=]voltaren danger[/url] [url=]lactobacillus bulgaricus for sale[/url] [url=]sarafem for pms[/url] [url=]versed anesthesia memory loss[/url] [url=]generic diamox[/url] [url=]happens when i snort methadone[/url]

Lobomucsoxb added these pithy words on Feb 11 11 at 11:33 pm

[url=]pentobarbital sodico[/url] [url=]nabumetone[/url] [url=]low thyroxine free levels[/url] [url=]dicyclomine to get high[/url] [url=]daytime privacy roller shades[/url] [url=]buy fluticasone propionate nasal spray online[/url] [url=]21 sf ambi mag release upgrade[/url] [url=]test for citrate[/url] [url=]finasteride results regrowth[/url] [url=]conex ground station[/url] [url=]hns monitor[/url] [url=]index of oto[/url] [url=]cytoxan taxotere herceptin[/url] [url=]applied card visa[/url] [url=]rob tyner mc5[/url] [url=]intercon security company[/url] [url=]benzonatate cap[/url] [url=]palmetto council[/url] [url=]flexeril ulcer[/url] [url=]i need to order bacteriostatic water[/url] [url=]lustra scotty doesn’t know[/url] [url=]lactulose liver disease[/url] [url=]pomonas pectin[/url] [url=]pentasa and cmv[/url] [url=]dok kulap hai ter kon diew[/url] [url=]chlorpromazine[/url] [url=]prevacid overdose[/url] [url=]liqui car tilter[/url] [url=]spanish language benicar[/url] [url=]zingo comfort zone[/url] [url=]neutropenia prophylaxis with neulasta or gcsf[/url] [url=]dentures toronto[/url] [url=]pipeline tabs[/url] [url=]mark gyetvay 2008 capex[/url] [url=]solia pink hair straightener[/url] [url=]omniscan verdict[/url] [url=]nasal delivery technology[/url] [url=]ingrown hairs[/url] [url=]acetylcysteine administration with soda[/url] [url=]effects of novocaine boil[/url] [url=]maxalt mlt without prescription[/url] [url=]dilatrend carvedilol[/url] [url=]niaspan flushing[/url] [url=]primacare 1[/url] [url=]fur real friends butterscotch pony[/url] [url=]epi otic[/url] [url=]how to cure a sunburn[/url] [url=]acetyl l carnatine studies[/url] [url=]thyroid hormone t4[/url] [url=]how is fluoride made[/url]

Zeisopfed added these pithy words on Feb 14 11 at 2:59 pm

After seeing an near mate going trough a tough time due to a sickness caused from cigarettes I made it my own quest to spare as many other individuals as is possible from the same exact fate, but shortly I realized that regardless of how great the arguments are it is actually almost impossible to have a smoker quit smoking, not necessarily because the actual arguments aren’t good enough and not necessarily because the smoker is not willing to stop but simply due to the fact nicotine is really a even more addictive drug than heroin and cocaine (scientifically proven).

Then I learned there’s in fact a way to quit smoking without giving up smoking, so allow a smoker his or her pleasure and habit yet save them from the dangerous effects of smoking.

What I am talking about are electric cigarettes. Read regarding all of the side effects connected with smoking cigarettes and the way an [url=]electronic cigarette[/url] can help you quite cigarettes or just allow you to follow your current habit and get your kick with no harmful negative effects associated with smoking cigarettes on my webpage

P.S. I really hope this will not get deleted because of having a link to my website as I only attempt to inform and help.

God bless you

Chrissy M.

estisa added these pithy words on Feb 15 11 at 12:31 pm

Here you can find huge amount of [url=]stock photos[/url].
This is quality content from 10 cents per image.
20% discount code is DC472863, number of uses is limited.

Pls remove if useless.

ImmuroboF added these pithy words on Feb 18 11 at 12:24 am

This is such a great resource that you are providing and you give it away for free. I love seeing websites that understand the value of providing a quality resource for free. It?s the old what goes around comes around routine.

personal loan added these pithy words on Feb 18 11 at 5:39 am

Date Hello, I have browsed most of your posts. This post is probably where I got the most useful information for my research. Thanks for posting, maybe we can see more on this. Are you aware of any other websites on this subject

personal loans added these pithy words on Feb 18 11 at 7:30 am

Hello! ggedeck interesting ggedeck site!

Pharmg604 added these pithy words on Feb 18 11 at 1:42 pm

Very nice site! [url=]cheap cialis[/url]

Pharme151 added these pithy words on Feb 18 11 at 1:43 pm

Very nice site! cheap cialis

Pharme288 added these pithy words on Feb 18 11 at 1:43 pm

Very nice site!

Pharme167 added these pithy words on Feb 18 11 at 1:43 pm

hi, new to the site, thanks.

Immichsix added these pithy words on Feb 21 11 at 9:27 am

© Copyright 2007 The Oaxaca Advisor. Thanks for visiting!