Episode V-The city of Merida
Merida in context
The capital of the state of Yucatan has been under the spotlight over a couple of years, since it was categorized as one of the safest cities with best quality of life in Latin America. The perception of security rates in 72%, among the highest in Mexico, compared to the national average of 30% (Valenzuela, 2020).
The state of Yucatan represents 2.0% of the total national territory (INEGI, 2020), meaning that its territory covers an area of 39.524 square kilometers while Merida covers a range of 858.41 square kilometers of land.
Being in less than 50km south from the Gulf of Mexico, bordered to the east by the state of Quintana Roo and to the west by the state of Campeche locates Merida in a strategic point for national and international tourism. It is an easily accessible destination by land, air, and sea (Ayuntamiento de Merida, 2021).
Merida is the best city to visit outside the United States according to the Conde Nast Traveler magazine’s readers (Lozano, 2019). Merida is centrally located within the Yucatan Peninsula, the region is surrounded of archaeological sites, natural reserve parks, beaches, and Pueblos Mágicos. The city possesses a rich Mayan and colonial heritage that can be perceived through its architecture (UNESCO, 2019).
Merida reported a total population of 995,129 inhabitants in 2020, stated by Data Mexico, but the economically active population in the state of Yucatan had a total of 66.3 labor participation in the fourth quarter of 2022, an increase of 0.5 over the previous quarter (DataMexico, 2022).
Economy and business
Data Mexico (2022) shows that Merida's global sales experienced a decline of 20.5% in 2022, generating a revenue of US$861M, as compared to the previous year. Among the products that contributed significantly to its international sales in 2022, were articles of jewelry and parts, which generated revenue of US$236M, followed by turbo jets, turbo propellers, and other gas turbines, which generated US$228M. Additionally, diamonds, generated US$40.9M in revenue.
In 2019, Merida had new developments in infrastructure, hence the roads to the port of Progreso were extended and, a new industrial zone called the Merida-Hunucma Industrial Corridor was under construction (SIMCA Desarrollos 2021).
Merida is in the eye of investors since 2015 thanks to its famous low-cost land, having a price per square meter starting from 250 Mexican pesos (Lara, 2022). Real state has been the main investment factor in the city of Merida, the trigger of real estate investment was due to the quality of housing infrastructure with major real estate developments in large extensions, such as golf courses, plus the proximity of the coast from Merida (Valenzuela, 2020)
However, the city is just an emerging market, since, at the end of the third quarter of 2022, an inventory of industrial spaces of 935,000 square meters were available, almost the same as in Mexico City.
Mérida's food industry plays a significant role in preserving its cultural heritage, while also delivering economic and employment opportunities to the local community, with more than 25,000 jobs created. The city's gastronomic and tourism industries work together, attracting over 1.5 million visitors every year. As a result, the region benefits from a significant financial boost, accounting for approximately 8% of the State's GDP.
Variety of industries
The city of Merida is a bustling hub of economic activity. The city boasts a diverse range of industries, which play a crucial role in the region's economic growth and development. One of the most significant industries in the city is tourism, which attracts millions of visitors every year. The monthly report on the results of tourist activity in the state of Yucatan mentions an arrival of 157,348 tourists with overnight stays during January 2022 (SEFOTUR, 2022).
In addition to tourism, Merida is also home to a thriving manufacturing industry. The city's strategic location and well-developed infrastructure make it an ideal location for manufacturing operations. The mentioned-above Industrial Corridor Merida-Hunucma is home to a great variety of industries like the brewing industry, food industries, international logistics companies, auto parts manufacturing, glass, paper, and cardboard factories, among others.
Companies like Grupo Kekén, Grupo Cervecero Modelo, Grupo Gondi, Bachoco and Trymex are one of the many distinguished enterprises of the country that have presence in this industrial corridor.
The city is home to numerous farms, producing a wide range of crops, including fruits, vegetables, and grains. Additionally, the region is renowned for its production of habanero chili peppers, which are exported to markets around the world. These habanero seed have been traced back and they have been associated with the Mayan heritage. The Yucatan Peninsula is the only region that possesses the certification of origin for the habanero peppers (Fideicomiso de Riesgo Compartido, 2017).
Innovation
An article of Cluster Industrial written in 2021 reports that Mexico was invited to participate in Artemisa, an initiative by the NASA to travel back to the moon in 2025. The article states that the director of the Mexican Space Agency (AEM) affirmed that the south-east of the country could have an Aerospace cluster. He assured that Mexico and Yucatán have the strength to take advantage of the aeronautical industry and venture into the construction of satellites, space medicine, development of launch technologies and many other opportunities (Cluster Industrial, 2021).
The Secretary of External Relations affirms that Mexico`s accession to the Artemisa Agreements will improve and boost the Mexican space sector through the exchange of information and technology development for the creation of Mexican space companies. This project will position the aerospace industry as the tenth largest in the world, with a generation of more than 100,000 jobs and 12 billion dollars in exports (SRE, 2021).
Cluster Industrial. (December de 2021). El sureste mexicano puede ser clave para volver a la Luna en 2025. Retrieved from https://www.clusterindustrial.com.mx/noticia/4334/el-sureste-mexicano-puede-ser-clave-para-volver-a-la-luna-en-2025
Data Mexico. (2022). Retrieved from https://datamexico.org
Fideicomiso de Riesgo Compartido. (May, 2017). Chile Habanero, con Denominación de Origen. Retrieved from https://www.gob.mx/firco/articulos/chile-habanero-con-denominacion-de-origen?idiom=es
INEGI. (2020). Información por entidad. Retrieved from https://cuentame.inegi.org.mx/#.
Lara, G. (2022). 3 razones por las que todos quieren invertir en Mérida. Retrieved from Obras por Expansion: https://obras.expansion.mx/inmobiliario/2022/10/27/merida-el-spot-de-las-inversiones-inmobiliarias
Lozano, L. F. (October, 2019). Mérida supera a Florencia y Québec como la Mejor Ciudad del Mundo. Retrieved from https://www.forbes.com.mx/merida-supera-a-florencia-y-quebec-como-la-mejor-ciudad-del-mundo/
Ayuntamiento del Merida. (2021). Información de la ciudad. Retrieved from https://www.merida.gob.mx/municipio/sitiosphp/merida/php/informacion.phpx
SIMCA. (2021). Mérida: Potencia industrial en el sureste del país. Retrieved from https://blog.simca.mx/merida-potencia-industrial-en-el-sureste-del-pais
SRE. (2021). Artemisa. Retrieved from https://embamex.sre.gob.mx/eua/index.php/es/2016-04-09-20-40-51/educacion/1925-artemisa
UNESCO. (2019). Mérida. Retrieved from https://en.unesco.org/creative-cities/merida
Valenzuela, H. (March de 2020). Mérida, entre el desarrollo económico de la ciudad y el desafío ambiental. Retrieved from https://www.eleconomista.com.mx/estados/Merida-entre-el-desarrollo-economico-de-la-ciudad-y-el-desafio-ambiental-20200309-0030.html