Mexico eyes retiree market

Published on Friday, 28 September 2012 05:08

Baby boomers are potential cash cow

BY RICARDO CASTILLO

The News

SAN MIGUEL DE ALLENDE – The potential of the U.S. baby boomer market is huge, according to Javier Govi, and if marketed well, it could be the next source of dollars galore for Mexico.

Govi, president of the National Association for Assistance in Retirement (AMAR), said in a recent exclusive interview with The News that now is the time to start laying down the foundations for a future thriving business in Mexico.

“Mexico has a great potential and this (Babyboomer) sector has such an importance that it could become a source of dollar income equal to oil and remittances,” Govi said.

“We’re talking about millions of people who are about to retire” both in the United States and Canada.

A common denominator for all these retirees, Govi said, is that their retirement resources will be increasingly squeezed by inflation and higher living costs in both nations.

“Mexico is the place where care costs for a quality lifestyle can be lowered by as much as 50 percent. That gives us a future leading edge in this market niche.”

Govi participated at an AMAR membership gathering in San Miguel de Allende over the weekend, where he got an earful from local real estate businesses and investors in this type of venture. San Miguel boasts approximately 14,000 foreign retirees, with at least one fully functional nursing home, Cielito Lindo, offering assistance to the impaired elderly.

“This is an industry, and we are seeing it happen live here in San Miguel de Allende, that generates strong income and a source of better-paid jobs.”

Govi founded AMAR six years ago, and little by little he is garnering attention from Mexican investors who also see the “enormous” baby boomer potential.

Through his still small association, Govi, a marketing graduate from the University of California San Diego, where he lives, also hopes to draw the attention of the Tourism Secretariat (Sectur) to this type of residential tourism, which he sees as a branch of the medical tourism market. Mexico offers more affordable medical care than in the U.S.

“Six years after AMAR was founded, we still don’t have a leader to represent us in the federal government. The Tourism Secretariat is restricted to its tourism functions, and their notion of medical tourism is very limited. That’s something we are out to change.”