Economy
[edit]
Nearly 80% of the workforce is employed in tourism-related industries: hotels, restaurants, personal services, and transportation.
Tourism trends[edit]
Puerto Vallarta Hotel SkylineTourism in Puerto Vallarta has increased steadily over the years and makes up 80% of the city's economic activity in 2020. The high season for international tourism in Puerto Vallarta is from late November through March (or later, depending on the timing of the college spring break period in the U.S.) The city is especially popular with U.S. residents from the southern and western U.S. because of the number of direct flights between Puerto Vallarta and Atlanta, Los Angeles, San Francisco, Seattle, Portland, Denver, Phoenix, Dallas/Fort Worth, Houston, Minneapolis/St Paul and Chicago.
Real estate tourism[edit]
Velas Vallarta Hotel
Puerto Vallarta has become a popular retirement destination for U.S. and Canadian retirees. This has created a number of neighborhoods within the Puerto Vallarta region that cater primarily to real estate tourism, such as the Hotel Zone, which stretches from downtown Vallarta to the airport and Marina Vallarta (near the airport), and Amapas and Conchas Chinas, which are built into the mountain slightly south and behind Puerto Vallarta, and overlook the city and bay. Most recently the downtown area, especially in Emiliano Zapata (also known as the Romantic Zone), has seen a somewhat controversial trend of traditional homes being razed for the construction of condominium buildings. This region in recent years has been the most popular for Vallarta real estate tourism, with nearly 25% of all real estate sales for the region taking place there in 2019.
Restaurant at Puerto Vallarta's DowntownThe Puerto Vallarta real estate tourism market is made up of both full-time retirees and second-home owners, primarily from the United States. On average about 40% of buyers are American, with 30% consisting of Mexican nationals, and Canadians and other foreign buyers making up the remaining 20%. Mexicans favor destinations such as Puerto Vallarta, Los Cabos and Cancún not just for the sun and beach, but also as real estate investments, as real estate in these regions is priced in USD, rather than in pesos like the rest of the country.
Puerto Vallarta can be classified as a medium-ranged real estate market with a market consisting mostly of condominiums with an average price around US$320,000 in 2019. Any foreigner wishing to buy real estate in Puerto Vallarta (or anywhere along the coast of Mexico), can't own real estate there outright, but needs to establish a fideicommissum or beneficial trust which is held with a Mexican bank on the owner's behalf. It is not the same as holding the title. The trust is good for 50 years and can be renewed for another 50-year period.
LGBT tourism[edit]
Main article: LGBTQ culture in Puerto Vallarta
The LGBTQ portion of the Playa de Los Muertos (Beach of the Dead)
Puerto Vallarta has developed into Mexico's premier resort town as a sort of satellite gay space for the larger state capital, Guadalajara, much as Fire Island is to New York City and Palm Springs is to Los Angeles. It is now considered the most welcoming and gay-friendly destination in the country, dubbed the "San Francisco of Mexico." Previously quite conservative, the municipal government has become increasingly supportive in recognising and accepting the LGBTQ tourism segment and supporting LGBTQ events such as Vallarta gay pride celebrations, which launched in 2013 and are now held annually to coincide with U.S. Memorial Day weekend. It has a gay scene, centered in the city's south-side Zona Romántica, consisting of hotels and resorts as well as many bars, nightclubs and a gay beach on the main shore. Puerto Vallarta has been cited as the number one gay beach destination in Latin America, with city officials claiming a 5% tourism increase in 2013.
Population and growth rate for Puerto Vallarta[edit]
The major suburb is Bahia de Banderas in Nayarit across state lines, in which Nuevo Vallarta and Sayulita are localities. Ixtapa is a locality in PV, not to be confused with the municipality of Ixtapa in Guerrero state.
1950
1960
1970
1980
1990
1995
2000
2005
2010
2015
2020
Locality
93,503
121,844
151,432
177,830
203,342
221,200
224,166
Municipality
10,801
15,462
35,911
57,028
111,457
184,728
255,725
275,640
291,839
Growth-related problems[edit]
Poverty remains a problem, fueled by the constant influx of persons seeking employment. Many areas of the city are still poorly served by roads and sewers. For example, Colonia Ramblases is served by roads in generally poor condition only 10% of which are paved, and Ramblases has been a populated neighborhood since the 1940s. The Municipality of Puerto Vallarta comprises about 45,000 regular dwellings. Of those, 10% do not have a potable water supply (carrying their water from a public tap), 8% do not have connections to a sewer system or septic system (using instead crude septic pits or dumping sewage directly into waterways), and 4% do not have electricity. There have been improvements in 2005 to 2007, such as new IMSS facilities in Col. Versalles, improvements to several recreation facilities, improved communal beach access policies, etc. Still efforts seem to aim more at quick and visible infrastructure improvements than at solving the more pressing and enduring problem of insufficient infrastructure for basic services.
One positive result of recent growth has been that in relative terms a smaller percentage of the population lives in older and poorly served neighborhoods. A growing number of residents live in housing projects and low-income housing developments which provide at least adequate basic services.