Mexico Lures International Meetings With VAT Repeal
The January 2004 repeal of Mexico's value-added tax on international meeting and conference attendees has ...
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 The January 2004 repeal of Mexico's value-added tax on international meeting and conference attendees has encouraged meeting planners to look south of the border for meeting sites. The repeal of the tax, locally known as the Taso Cero—zero tax—initiative, was part of Mexico's years-long effort to attract more international business travelers. Nine months later, insiders said the VAT repeal is providing a boost to Mexico's international meetings industry.

The repeal translates into savings of 10 percent for attendees headed to Cancun or Los Cabos, two of the country's most popular meeting destinations, and 15 percent in every other Mexican city.

"We certainly have seen a boom," said Fernando Compean, president of Meetingplace Mexico and the Mexico chapter of the Society of Incentive & Travel Executives. "We don't have figures yet because it just started this year, but the growth has been significant."

Professional meeting planners north of the border also report greater interest among clients in Mexico as a destination. "It certainly has made a difference," said Carol Krugman, president and CEO of Krugman Group International, a St. Petersburg, Fla.-based firm that specializes in staging events in Latin American destinations.

There are those who say the VAT repeal still has further to go. At the moment, it does not apply to incentive travel, something the industry would very much like to see changed. A bill now pending before the Mexican legislature would remedy that, and Compean hopes that the law will pass.

"Things are going well," Compean said. "I couldn't say yes or no yet, but I would say that having a value-added tax reduction or elimination shows the importance the legislature is giving to meetings and incentives."
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