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					   CTO – MEXICO
FY11 Monthly Reports
Monthly Report – TravelPIE – México                                            CTO Mexico – July 2010
Fast Facts:

  Highlight 1:
  Through the press release sent in June, stories on the Biennial of the Americas that took place in Denver were
  published in two of the 4most important newspapers in Mexico and a radio interview was broadcasted in one of
  the most prestigious travel radio shows in the country.

  Highlight 2:
  The first individual fam trip took place on the second week of July. We met with the journalists after they
  returned to go through the material gathered during their trip as well as to receive their input on the itinerary and
  activities scheduled for them. The first article will be published in Elite’s magazine September issue.


Public Relations
     • Numbers of Media Calls/Follow up Calls: 25
     • Press Release sent: 1
     • Attended: 2

      •   Total Monthly Media Equivalency compared Year to Date in US Dollars: $36,430.70 USD
      •   Total Cumulative Equivalency compared Year to Date in In-Market currency: $469,956.03MXP

      •   TravelPIE PR Placed Monthly Media Equivalency compared Year to Date in US Dollars: $23,880.7 USD
      •   TravelPIE PR Placed Cumulative Equivalency compared Year to Date in In-Market currency:
          $308,061.03 MXP

Travel Trade
     • Number of Sales Calls: 11
     • Number of Trade Inquiries: 0
     • Attended: 1

Current Running Co-Ops
IPC has approved the following programs which began on April and end in July:
                   • Julia Tours (Nationwide) – printed advertisement in summer catalogue. Distribution
                       began on April.
                   • Servicios de viaje 365 (Guadalajara) – Training seminar for travel agents took place on
                       April 29th at Quinta Real Hotel.
                   • Despegar (Nationwide) – the micro-site was launched on Wednesday 26th. It includes
                       valuable and comprehensive information on what Colorado offers during summer and
                       several packages (in Denver as well as in other cities) that include airfare,
                       accommodation and activities.

Consumer Fulfilment
    • Number of Consumer Inquiries: 2
    • Distribution of Materials: 2


US Dollar Exchange Rate (May) 12.72
   • Compared to 13.19 in July 2009

Online Activities:
 CTO Official Website Visitors (Mexico’s version of Colorado.com): 748 visits

Thursday, July 29, 2010                                                                                              1
 Website Visitors from Mexico: 469




Thursday, July 29, 2010              2
         TravelPIE – Monthly Report
         Public Relations

         Total Media Equivalency Clipping Evaluation Report – TravelPIE
                                                                                                   Evaluation (in
                                                 Date of                           Circulation                      Evaluation in USD –
    Publication                Title                                 Journalist                       market                              Source                  Details
                                                 Publish                            and Type                          Ad Equivalency
                                                                                                     currency)
                         Colorado: el Napa                                          Magazine                                                       The note talks about Colorado’s
    Bleu & Blanc                                   July         Ricarado Garza                        30,133              9,350            PR
                        Valley de la cerveza                                         43,500                                                        microbreweries and beer festivals.

                                                                                    Magazine                                                       The article talks about the outlets
      Swishy            Outlets de Colorado     June-July               ---                           162,400             12,550           NA
                                                                                     10,000                                                        available in Colorado.
                                                                                                                                                   The article talks about the Biennial of
                                                                                   Newspaper
                          Bienal de las                                                                                                            the Americas that took place in
     Reforma                                       July                 ---       Travel section      187,446             14,530           PR
                        Américas en Denver                                                                                                         Denver during July and its general
                                                                                     145,963
                                                                                                                                                   activities agenda.
                                                                                   Radio show                                                      Marco Aguilar was invited to the
Imágenes del turismo    Summer in Colorado         July        Laura Rodriguez      200,000                                                GA      radio show to talk about Colorado’s
                                                                                    audience                                                       proposal during summer.

         Source Key –

         PFI or PFG         Press FAM result (individual or group)
         PR                 Result of press release
         PC                 Result of press conference/media event
         P                  Result of the promotion
         GA                 Result of general PR activity
         NA                 Not Assisted by CTO




         Thursday, July 29, 2010                                                                                                                                            3  
Total Placed Media Equivalency Chart Report – Generated by TravelPIE

Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $23,880.7                            $23,880.7
  August 2010
 September 2010
  October 2010
 November 2010
 December 2010
  January 2011
  February 2011
   March 2011
   April 2011
    May 2011
   June 2011

     TOTAL        $23,880.7                            $23,880.7

Total Media Equivalency Chart Report – Generated from all sources on Colorado
Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $36,430.7                            $36,430.7
  August 2010
 September 2010
  October 2010
 November 2010
 December 2010
  January 2011
  February 2011
   March 2011
   April 2011
    May 2011
   June 2011

     TOTAL        $36,430.7                            $36,430.7




Thursday, July 29, 2010                                                           4  
             Press Releases:
             A “Gastronomy scene in Colorado” press release was written and distributed to our media database.

             B-Roll, Video and Photo Usage:
             Received photo requests from Bleu & Blanc magazine to publish a note on Colorado’s beer festivals and microbreweries.

             Update of Media Calls/Press Contacts:
             July (first week) – Enrique Escalona – Photographer & Editor – Elite magazine
             Kept in touch to finalize his individual trip itinerary and details.

             July 1st – Alfonso Castillo – Publimetro
             Visited us to provide information on this publication and offer advertising packages.

             July 2nd – Ricardo Garza - Coeditor – Bleu & Blanc magazine
             Emailed to request high resolution images of the Great American Beer Festival that will take place in Denver. Sent several options and detailed
             information.

             July 15th – Enrique Escalona & David Paniagua – Photographic Editor and Travel section Editor – ESPN & Elite magazines
             Met for dinner in order to follow-up on the individual trip they did in Colorado and have their feedback and impression on the itinerary and activities
             booked for them.

             July 20th – Gretel Zanella – Editor – Destinos, “El Universal” newspaper travel section
             Spoke with her to go through Colorado’s summer & fall proposal. She will come back to us later on to let us know if any of the topics discussed are
             of her interest.

             July 21th – Rubén Hernandez - “Travel Connection” radio show
             Met with him to provide his radio show audience with an update on Colorado’s summer and fall proposal. A 10 minute clip will be broadcasted in
             short.

             July 28th – Armando Gallegos – Gozipa “celebrities’ content agency”
             Met with him for breakfast to talk about the projects he’s currently working on, and that he considers might be of interest to promote the State of
             Colorado in the Mexican market.


             Confirmed Individual Media FAM Trips
                                             Attending         Circulation of                                                                  Date Article
Date of FAM Trip         Publication                                                 Profile               Theme              Destinations                         PR Value $
                                             Journalist         Publication                                                                     Appeared
                                                                                                                           Denver, Colorado
                                                                                                       National Parks,     Springs, Manitou
                        Elite magazine,                         Elite – 10,000
                                          Enrique Escalona                                            Sports scene and     Springs, Durango,
      July             ESPN en español,                        ESPN – 80,000                                                                      TBD
                                           David Paniagua                                            urban experience in   Mesa Verde,
                        LaGiraffe.com                         LaGiraffe – 8,000
                                                                                                           Denver          Durango-Silverton
                                                                                                                           train


             Thursday, July 29, 2010                                                                                                                                5  
         Group Media:
                                         Attending         Circulation of                                                                                Date Article
Date of FAM Trip        Publication                                                      Profile                   Theme            Destinations
                                         Journalist         Publication                                                                                   Appeared      PR Value $




         Media Events:

         Travel Trade Promotions

         Current Co-ops:
         Company           Details                                      Dates                      Partners   On-Line OR Off-Line              Results


         Julia Tours       OFFLINE CAMPAIGN – CONSUMER                      Spring / Summer                              Off line
                                                                                  2010

         Servicios de      OFFLINE CAMPAIGN – CONSUMER                      Spring / Summer                              Off line
         viaje 365                                                                2010

         Despegar.com      ONLINE CAMPAIGN – CONSUMER                       Spring / Summer                              Online
                                                                                  2010


         Trade Contacts/Sales Calls/Sales Leads:

         •    Ofertas Turísticas – Met with Miguel Angel Perez (Managing Director) because he’s interested on advertising a summer package in
              Colorado. Information on Epic Summer and other itineraries has been sent and training seminars have been scheduled for August 11th.

         •    Boutique de viajes – Met with Managing Director to deliver Colorado travel guides and brief her on the state’s year round proposal. She is
              interested on including Colorado product (trains, national parks and ski) in the agency’s catalogue. Will send her detailed request further
              ahead.

         •    Hivisa Viajes – Met with Sales Manager to deliver Colorado travel guides and brief her on the state’s year round proposal. Their main product
              is business and convention trips but they were positively surprised by the State’s diversity of attractions and will go through the travel guide
              with the Product Manager in order to determine what kind of product could be of interest to their clients.

         •    Tres mares – Met with Managing Director, Product and Sales Managers to deliver Colorado travel guides and brief them on the state’s year
              round proposal. They are interested on including Colorado product (summer & winter) in their catalogue. Will send their detailed request
              further ahead so we can provide specific contact info & material.



         Thursday, July 29, 2010                                                                                                                                         6  
•     Viajes Fama – Met with all their travel agents and wholesaler department staff in order to deliver Colorado travel guides and provide a general
      explanation of what the State has to offer. Will follow-up further ahead to find out what their interests are.

•     Conceptos avanzados en turismo – Met with Sales Manager to deliver Colorado travel guides and brief her on the state’s year round
      proposal. Their main product is business and convention trips but they were positively surprised by the State’s diversity of attractions and will
      go through the travel guide with the Product Manager in order to determine what kind of product could be of interest to their clients.

•     Viaggi - Met with Sales Manager to deliver Colorado travel guides and brief her on the state’s year round proposal. Their main product is
      business and convention trips but they were positively surprised by the State’s diversity of attractions and will go through the travel guide with
      the Product Manager in order to determine what kind of product could be of interest to their clients.

•     Iconn Travel – Emailed us to request information on Denver and Colorado Springs to include in their electronic magazine. Information and
      images were provided as they requested.

•     Maxitravel - Met with travel agents to deliver Colorado travel guides and brief them on the state’s year round proposal.

•     Alimay – Met with travel agents to deliver Colorado travel guides and brief them on the state’s year round proposal. They sell a lot of ski
      packages but, since they’re not wholesalers, they buy it directly from Holam International. They are interested on receiving information of
      Colorado products for they believe it might be of interest to their clients. Particularly since most of them don’t want to travel to Canada
      anymore due to the visa imposition.

•     Felgueres Jovi - Met with travel agents to deliver Colorado travel guides and brief them on the state’s year round proposal.


Travel Trade Events, Trainings, Seminars, Workshops:

•     Julia Tours – On Tuesday 13th we conducted product training for the wholesaler’s travel agents. They are currently selling 2 summer
      packages that were featured in their summer product catalogue.

•     Asociación Metropolitana – Attended their monthly meeting on July 21st


Trade FAMS (Group or Individual):
    Date of FAM                                                                                                          Participating
                            Company             Attending personnel          Title         Profile / Current product                         Results
        Trip                                                                                                             Destinations
                                                                                                                        Denver, Grand
                                                                                                                           Junction,
                                                                                          Summer co-op with them to
         th       th                                                                                                   Colorado Springs,
    June 7 – 13        Servicios de viaje 365      David Aguirre      Managing Director   promote 2 Colorado summer
                                                                                                                          Glenwood
                                                                                                  packages
                                                                                                                           Springs,
                                                                                                                         Breckenridge




Thursday, July 29, 2010                                                                                                                                    7  
                                                                                                                                Denver, Grand
                                                                                                                                   Junction,
      th       th                                                                                                              Colorado Springs,
 June 7 – 13         Viajes Coaplaza              Oscar Giron           Product Director
                                                                                                                                  Glenwood
                                                                                                                                   Springs,
                                                                                                                                 Breckenridge
                                                                                                                                Denver, Grand
                                                                                                                                   Junction,
      th       th                                                                                                              Colorado Springs,
 June 7 – 13           Iconn Travel           Luis Guillermo Viquez   Marketing Manager
                                                                                                                                  Glenwood
                                                                                                                                   Springs,
                                                                                                                                 Breckenridge
                                                                                                                                Denver, Grand
                                                                                                                                   Junction,
                                                                                                 Summer co-op with them to
      th       th                                                                                                              Colorado Springs,
 June 7 – 13            Julia Tours               Arleth Sevilla      Commercial Manager         promote 2 Colorado summer
                                                                                                                                  Glenwood
                                                                                                         packages
                                                                                                                                   Springs,
                                                                                                                                 Breckenridge
                                                                                                                                Denver, Grand
                                                                                                                                   Junction,
      th       th                                                                                Most important ski-packages   Colorado Springs,
 June 7 – 13        Holam International         Sandra Ginsberg        Sales Department
                                                                                                  wholesaler in Mexico city       Glenwood
                                                                                                                                   Springs,
                                                                                                                                 Breckenridge



Travel Tradeshows:

Consumer Promotions

Consumer-Related Programs (Consumer shows/Consumer leads): 0

Consumer Inquires without brochure fulfilment:

Distribution of Materials for corresponding Month and Cumulative Amount to date:

Month                                                www.colorado.com                      Other – telephone/ email request                        Total
July 2010                                 0                                          2                                              2
August 2010
September 2010
October 2010
November 2010
December 2010
January 2011
February 2011
March 2011
April 2011

Thursday, July 29, 2010                                                                                                                                    8  
May 2011
June 2011
Total

                                                    Colorado Fulfilment Stats 2009
Total fulfilment graph
                                                      200




                                 No of packs sent
                                                      150
                                                      100
                                                       50
                                                        0
                                                            Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

                                                            Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
                           Packs (Colorado.com               67
                           requests)
                           Trade packs (phone                75
                           requests)
                           Consumer packs (phone              3
                           requests)




Thursday, July 29, 2010                                                                                 9  
                                        MARKET INTELLIGENCE

                                                 Economy
                                                                                               Source: Banco
                                 Jan      Feb       Mar        Apr        May        June      de Mexico;
                                                                                               National
Exchange Rate (U.S)          12.97       12.87     12.35       12.28      12.68      12.94     Statistics,
                                                                                               Geography and
Consumer Confidence                                                                            Information
                                 82.1     80.6      81.8       82.5
Index                                                                                          Institute
                                                                                               (INEGI);
Oanda.com

SPANISH BANK TO BUY LARGER STAKE IN MEXICAN UNIT
(From . June 9, 2010)
Banco Santander, the Spanish bank, said on Wednesday that it would buy Bank of America’s 24.9
percent stake in Santander’s Mexican arm for $2.5 billion, giving it almost total ownership of the unit.
Santander said the deal, which had been widely expected by analysts, was set to close in the third
quarter, subject to regulatory approval.

The Spanish bank said the deal would increase its earnings per share by 1.3 percent in the first year.
Business abroad has been one of the strengths of Santander’s balance sheet, and the bank said that
the acquisition would raise Mexico’s part of group profit by two percentage points, to 7 percent.
“This acquisition reinforces Santander’s commitment to Mexico, a country with a very positive outlook
for growth, and furthers the geographic diversification of our group,” Emilio Botín, Santander’s
chairman, said in a statement.

The bank’s first-quarter earnings report showed that the bulk of its profit growth was coming from its
Latin American units, with the Brazil business increasing profit by 38 percent, to 603 million euros;
Mexico by 32 percent, to 111 million euros; and Chile by 15 percent, to 117 million euros. Some
European units — notably in the Iberian peninsula — were posting declines.
Banco Santander Mexico is one of the country’s largest lenders, making 13 percent of all loans and
taking in nearly 15 percent of all deposits.
Bank of America will divest itself of a stake it acquired in 2003 for $1.6 billion. At the time, the purchase
valued the Mexican bank at $6.4 billion, while the current transaction puts its worth at $10 billion, a 56
percent increase.
CONSUMER PRICES DROP, INFLATION COOLS
Mexico’s Economy is Limping Back from a Severe Recession
(From The News. June 10, 2010)
Inflation cooled in Mexico during May in the latest sign the country’s weak economic recovery could
allow the central bank to leave interest rates low into next year.
Consumer prices fell 0.63 percent during the month, a slightly bigger drop than expected and the lowest
fall since the same month in 2003, at 0.32 percent . This May’s decline pushed the annual inflation rate
lower to 3.92, the lowest level since December.
“The market is betting that the central bank will not raise interest rates this year and this data confirms
that expectation,” said Scotiabank economist Mario Correa.

Thursday, July 29, 2010                                                                                    10
Electricity prices fell by 16.07 percent and fresh vegetables like onions and tomatoes fell by 44.97
percent and 18.37 percent, respectively, while natural gas prices declined 3.11 percent and the cost of
eggs fell by 4.75 percent.
However, some products kept their upward trend: the year-on-year price of airline transportation rose
3.94 percent while low-octane gasoline rose by 0.82 percent. Small diners raised their menu prices by
0.36 percent due to factors such as a 2.14-percent rise in poultry, a 16.18-percent rise in the cost of
oranges and an 0.89-percent price hike for canned beverages.
As a whole, basic food item prices fell 1.35 percent in May, with a 3.94-percent year-on-year decline;
this contrasts with April’s year-on-year increase of 4.35 percent.
Mexico’s economy is limping back from a severe recession and the central bank expects it will
underperform until at least early next year.
The yield on Mexico’s 6-month interest rate swap edged down a half basis point to 4.9741 percent,
suggesting some investors might have slightly trimmed bets on a rate hike by year end.
Analysts polled by Reuters had expected prices would fall 0.58 percent. Annual inflation was 4.27
percent in April.
The closely watched core index, which strips out some volatile food and energy prices, rose 0.24
percent during the month, which was slightly lower than expected, Banxico said.
On Sunday, Economic Commission for Latin America and the Caribbean (Cepal) official Alicia Bárcena
said that Mexico was likely to generate “good economic perspectives” this year, with an economic
growth of 4 percent.
This year “will be a very interesting (one); according to our estimates, Mexico will have a good
economic recovery, with domestic markets growing by 4 percent,” she said.

IN MEXICO, TRANSACTIONS WITH DOLLARS FACE SCRUTINY
(From The Associated Press. June 15, 2010)
Mexico announced some of the toughest restrictions in its history on dollar cash transactions on
Tuesday in an attempt to fight money laundering that is fueling an increasingly bloody drug war.
Tourists and Mexicans without bank accounts will be limited to exchanging a maximum of $1,500 per
month, Finance Secretary Ernesto Cordero said. The measure is meant to help stem the flood of about
$10 billion per year in suspicious cash flows that are thought to be linked to drug trafficking.
Much of the money has bought the heavy weaponry that drug gangs are using in attacks on the police,
like an ambush on Monday in the western state of Michoacán that killed 12 officers. If such
sophisticated, mass attacks continue, June is likely to be one of the bloodiest months since President
Felipe Calderón began an antidrug offensive shortly after taking office in late 2006.
The chief of the federal police antidrug unit, Ramón Pequeño, attributed Monday’s attack to La Familia,
a drug cartel that is based in Michoacán and has become notorious for bold assaults on federal security
forces. The police described it as a planned ambush in which cartel gunmen blocked a road with a bus
and opened fire with assault rifles.
Also on Monday, gunmen killed three federal officers in the northern city of Chihuahua, and inmates at
a prison in northern Sinaloa State used guns apparently smuggled inside to shoot to death 21 other
prisoners. Officials said it appeared to be an intergang dispute. At least eight other inmates were later
stabbed to death, apparently in reprisal attacks at the same prison.
On Tuesday, 15 gunmen were killed in a shootout with soldiers in the popular tourist town of Taxco, a
Mexican Defense Department official said. Taxco, known for its silver workshops, has also been the
scene of bloody drug cartel turf battles. The official, who was not authorized to speak publicly, said no
soldiers were killed or wounded. The soldiers were working on a tip about suspicious activity in Taxco
when the gunmen opened fire, he said.
The dozens of deaths on Monday and Tuesday followed a particularly bloody pair of weeks. Last week,
armed commandos killed 16 people in one day in the northern city of Ciudad Madero, and gunmen
burst into a drug rehabilitation center in Chihuahua and shot to death 19 men.
Mexican officials have attributed much of the violence — more than 22,700 deaths in drug-related
violence since late 2006 — to turf battles between drug cartels. But the cartels are also increasingly
turning to attacks on the police and prosecutors.


Thursday, July 29, 2010                                                                               11
On Tuesday, the police vowed to fight back. Mr. Pequeño said federal forces were confident they would
catch the cartel gunmen responsible for Monday’s ambush and detain their chiefs.
“The main objective now is to arrest the leaders of the criminal organizations,” he said at a news
conference announcing the detention of a top aide to a drug lord, Édgar Valdez Villarreal, who is known
as La Barbie, and six of his suspected henchmen.
The influx of suspect United States dollars has also contaminated legitimate Mexican businesses,
according to banking industry officials.
“The problem is in the formal, legal economy, where we have seen an unusual increase in transactions
carried out in dollars,” Luis Robles, the vice president of the Mexican Association of Banks, said at a
news conference. In recent years, banks have seen an excess of about $10 billion in dollar deposits
and transactions that cannot be explained by normal business activity.
“This excess is going to decrease substantially” by limiting the way in which dollars were used so freely
in the economy, Mr. Robles said. Previously there was no such limit, and it was possible to buy high-
ticket items like cars and houses in cash dollars.

TREASURY RESTRICTS DOLLAR TRANSACTIONS
Cordero: Exchange Cap will Reduce Money Laundering
(From The News. June 16, 2010)
Mexico has imposed limits on dollar transactions to fight money laundering as part of the war on
organized crime and drug trafficking, Treasury Secretary Ernesto Cordero said on Tuesday.
Beginning next Monday, tourists and Mexicans without bank accounts will be limited to transactions of
up to US$300 per day and $1,500 per month. In tourist zones and on the northern border, the limit will
be set at $7,000 per month.
Businesses will have another ninety days to adapt to the measure, Cordero said, and banks will still be
able to buy and sell U.S. dollars electronically without any limit.
The limit imposed on dollar transactions for individuals is superior to the average income of 98 percent
of Mexican households, Cordero said, adding that there would be no limit imposed on transactions in
pesos.
Cordero added that tourists would not be affected by the measure, as their average spending outside
the border region is estimated to range between $282 and $830 per visit, only 35 percent of which is
usually spent in U.S. dollars and in cash.
The Treasury Secretariat (SHCP) said that the measure sought to regulate and normalize the purchase
of U.S. dollars in cash only, without impacting on the economic sectors that depend on the U.S. dollar.
Regarding remittances, Cordero said that more than 96 percent of dollar deposits are made through
electronic transfers and are received as pesos and thereby would not be affected by the new
regulations.
Reinforced measures against money laundering will include identifying and monitoring the transactions
and money exchanges of all bank users, be they clients or not, Cordero said. The SHCP estimates that
about $10 billion per year in illegal cash could be feeding drug violence, which has killed more than
22,700 people since December 2006.

MEXICO HAS DONE ITS HOMEWORK
At G-20 Summit, Nation Praised for Economic Strength
(From The News. June 28, 2010)
TORONTO – Mexico continues with its growth expectations despite the slow financial recovery in the
United States and the European Union, Ernesto Cordero, the Mexican Treasury Department’s (SHCP,
or Hacienda) secretary said Sunday at the G-20 Summit in Toronto, Canada.
Cordero said that industries, including construction, were improving in the U.S., but unemployment
levels were still rising.
“We believe the Mexican economy is is going to improve this year as well as the next.
“We can see things beginning to recover little by little, at a reasonable pace, but unfortunately, not as
fast as we would like.”
Cordero said Mexico was one of the countries that “has done its homework,” because it has kept the


Thursday, July 29, 2010                                                                                 12
gross domestic product’s fiscal deficit at a rate of 0.7 percent, and its fiscal debt at 32 percent, which is
positive compared to other nations, some with as much as 80 percent of their GDP.
Mexican President Felipe Calderon said Mexico and other G-20 members needed to show more
commitment in reducing greenhouse gases. Cancún will host the United Nation’s Climate Change
Conference later this year.
He also called for more cooperation in efforts to stave off climate change. Calderón praised the
financial reforestation aid Mexico has received from Norway as one example of such cooperation.
Mexico was chosen to host the G-20 summit in 2012. Next year’s meeting will be held in France.

ECONOMY GROWS 7.2 IN APRIL
(From The News. June 29, 2010)
In April, the Mexican economy grew by 7.2 percent, in comparison to 2009 statistics, reflecting the
positive results of all sectors in the first four months of the year, the National Institute of Geography and
Statistics (INEGI) said on Monday.



                                     Outbound Travel Market
General


Long haul




                                    Competitive Environment

Competitor Spend/Activity



Routes



                                         Consumer Trends
General


Lifestyle


Socio Demographic

MEXICO FILES COURT BRIEF AGAINST ARIZONA IMMIGRATION LAW
Opponents of Arizona's Controversial Immigration Law Rally in New York in May
(From cnn.com. June 22, 2010)



Thursday, July 29, 2010                                                                                    13
Mexico on Tuesday filed a brief in federal court in Arizona supporting a lawsuit challenging the
constitutionality of a tough new immigration law, Mexico's foreign ministry said.
The lawsuit seeks to overturn SB 1070, a recently passed law due to go into effect late next month,
which stipulates that police can ask the residency status of people being investigated for a crime.
"The government of Mexico has requested the court that SB 1070 be declared unconstitutional and that
it does not enter into force," the foreign ministry said in a written statement.
The Mexican government gave its support to the lawsuit filed by a group of civil rights organizations,
including the Mexican American Legal Defense Fund, the National Immigration Law Center and the
American Civil Liberties Union.
In its brief, Mexico "underscored that it is fundamental and imperative that the human and civil rights of
its citizens are duly respected while present in Arizona or in any other state of the United States," the
foreign ministry said.
In filing the brief, Mexico said it was upholding its duty to protect its nationals in the United States and
ensure that they are not discriminated against based on their ethnic


Internet


                                       Travel Trade Trends

Travel Agents


Tour Operators

Airlines

FRONTIER EXPANDS MEXICO FLIGHTS
(From Travel Weekly. June 29, 2010)
Frontier Airlines is expanding service to Mexico from Denver and Kansas City.
Seasonal nonstop service between Kansas City and Los Cabos is scheduled to operate Dec. 18
through April 16, 2011. Seasonal nonstop service between Denver and Ixtapa-Zihuatanejo is scheduled
for Jan. 15 through March 26, 2011.
Both new routes will be flown by the carrier's Embraer 190, a 99-seat aircraft with two-by-two all-leather
seating with four rows of an additional five inches of legroom. This will be Frontier's first Mexican
deployment of the E190 aircraft.
Frontier also said it is extending the season for its Indianapolis-Cancún service. The Saturday-only
service will start six weeks earlier on Nov. 6 and extend to April 30, 2011.

VIRGIN AMERICA EXPANDS INTO MEXICO
(From Invertour. June 2010)
As American low-cost carrier, Virgin America, was opening its first international route, between San
Francisco and Toronto, they announced that they plan to expand into Mexico by year’s end.
Virgin America has requested authority to fly between its San Francisco hub and Cancun, and Los
Angeles and Los Cabos by the end of 2010.

AEROMEXICO WILL FLY TO CUBA AND HOUSTON IN JULY
(From Invertour. June 22, 2010)
As part of its international expansion plan, Aeromexico announced it will fly, 4 times per week, from
Mexico City to Havana, via Cancun, starting July 5th.



Thursday, July 29, 2010                                                                                  14
On the same day, Aeromexico will also launch daily, non-stop service between Monterrey and
Houston’s George Bush International Airport.


General


                                             Media Trends
Print – newspapers
Two of the most important newspapers in Mexico published articles on the Biennial of the Americas that
took place in Denver.

Print – magazines
Marco Arroyo took over the position of Editor in “Mundo Traveler” magazine.
Ski special editions development has begun. We approached Travesías magazine to find out what we
can provide for them to include stories on Colorado.

Online
Social media continues to gain strength as a powerful tool to create awareness of touristic destinations.
Facebook and Twitter are the most popular communities and thus, valuable sources to reach hundreds
of potential travelers.

Broadcast


General
Summer is at its peak and will remain as the most popular topic for all media until mid August, right
before kids go back to school.

                                             General News

MEXICO EYES THE GULF OIL SPILL
(From cnn.com. June 3, 2010)
Five Mexican states are monitoring the Gulf oil spill, Mexico's top environment official said, according to
the state-run news agency Notimex.
Juan Rafael Elvira Quesada, minister of the Department of the Environment and Natural Resources
(Semanat) said Wednesday the initial monitoring concerned the coasts of Tamualipas and Veracruz,
but Semanat has now added the states of Tabasco, Campeche and Yucatan.
Elvira Quesada said that Mexico has developed preventive and monitoring activities aimed at the
detection of hydrocarbons in national waters and coasts.
Staff from the Secretariat of the Navy (Semar) customarily monitors Mexican waters from the air, while
environmental agencies monitor beaches and the Chamber of the Fishing Industry supports hundreds
of boats that monitor territorial waters.
In an interview with Notimex, Elvira Quesada said ocean currents could bring the oil near Mexico by
October, in a worst case scenario, but more realistically that would occur in early January 2011.

TOP PRI CANDIDATE SLAIN
Calderón: Drug Gangs to Blame for Assassination of Tamaulipas’ Torre
(From The Associated Press. June 29, 2010)




Thursday, July 29, 2010                                                                                 15
Gunmen assassinated the front-running candidate for governor of a Mexican border state Monday in
what President Felipe Calderón called an attempt by drug gangs to sway local and state elections this
weekend.
The assailants ambushed Rodolfo Torre Cantú’s vehicle as he headed to the airport in Ciudad Victoria,
capital of Tamaulipas, a state torn by a turf battle between two rival drug cartels. At least four other
people traveling with him were killed and four of his campaign staff were hospitalized.
“Today has proven that organized crime is a permanent threat and that we should close ranks to
confront it and avoid more actions like the cowardly assassination that today has shaken the country,”
Calderón said in a televised speech. “We cannot and should not permit crime to impose its will or its
perverse rules.”
He warned that organized crime “wants to interfere in the decisions of citizens and in electoral
processes.”
Torre, of the Institutional Revolutionary Party (PRI), is the first gubernatorial candidate assassinated in
Mexico in recent memory. He is the highest-ranking candidate killed since PRI presidential candidate
Luis Donaldo Colosio was gunned down in 1994.
The attack was the biggest setback yet for Sunday’s elections in 12 states. Corruption scandals, threats
and attacks on politicians have raised fears for months that Mexico’s powerful drug cartels are buying
off candidates they support and intimidating those they oppose. Calderón did not say which gang was
suspected in Torre’s assassination or why he would be targeted. Last month, gunmen killed Jose
Guajardo Varela, a candidate for mayor of Valle Hermoso, Tamaulipas. Guajardo, of the National
Action Party (PAN), had received warnings to drop his campaign.
Tamaulipas Gov. Eugenio Hernández said he didn’t know of any threats against Torre, a doctor who
had served as the state’s health secretary. Hernández said Torre didn’t express any fear when the two
met Sunday to watch the Mexico-Argentina World Cup game.
“We couldn’t see this attack coming at all,” Hernández said. “We are in a situation of a lot of pain.”
Torre, 46, was heading from Cd. Victoria to Matamoros to accompany the PRI’s mayoral candidates in
the closing of their campaigns Monday.




Thursday, July 29, 2010                                                                                 16
Monthly Report – TravelPIE – México                                       CTO Mexico – August 2010
Fast Facts:

  Highlight 1:
  The second radio interview took place this month to discuss Colorado’s summer proposal and reinforce product
  placement within the Mexican market. The significant PR value of the interviews broadcasted in August and
  July is a reflection of the large audience reached through them.

  Highlight 2:
  As a result of Guillermo Viquez’s attendance to June’s trade FAM trip, Iconn Travel published 2 Colorado
  summer packages in Bancomer’s e-magazine, distributed to ALL credit card holders (1,500,000) so that they
  can explore the destination and buy any of the 2 packages featured in the story.


Public Relations
     • Numbers of Media Calls/Follow up Calls: 30
     • Press Release sent: 1
     • Attended: 1

     •   Total Monthly Media Equivalency compared Year to Date in US Dollars: $300,393.27
         Total Cumulative Equivalency compared Year to Date in In-Market currency: $4,108,551.28 MXP

     •   TravelPIE PR Placed Monthly Media Equivalency compared Year to Date in US Dollars: $300,393.27
     •   TravelPIE PR Placed Cumulative Equivalency compared Year to Date in In-Market currency:
         $4,108,551.28 MXP

Travel Trade
     • Number of Sales Calls: 15
     • Number of Trade Inquiries: 3
     • Attended: 2

Current Running Co-Ops
IPC has approved the following programs which began on April and end in September:
                   • Julia Tours (Nationwide) – printed advertisement in summer catalogue. Distribution
                       began on April.
                   • Servicios de viaje 365 (Guadalajara) – Training seminar for travel agents took place on
                       April 29th at Quinta Real Hotel.
                   • Despegar (Nationwide) – the micro-site was launched on Wednesday 26 . It includes
                                                                                                  th

                       valuable and comprehensive information on what Colorado offers during summer and
                       several packages (in Denver as well as in other cities) that include airfare,
                       accommodation and activities.

Consumer Fulfilment
    • Number of Consumer Inquiries: 2
    • Distribution of Materials: 2


US Dollar Exchange Rate (August) 12.67
   • Compared to 13.24 in August 2009

Online Activities:


Friday, July 22, 2011
 CTO Official Website Visitors (Mexico’s version of Colorado.com): 1502 visits

                                                                                                               1
 Website Visitors from Mexico: 225




Friday, July 22, 2011                2
         TravelPIE – Monthly Report
         Public Relations

         Total Media Equivalency Clipping Evaluation Report – TravelPIE
                                                                                                Evaluation (in
                                                 Date of                          Circulation                    Evaluation in USD –
    Publication               Title                                  Journalist                    market                              Source                  Details
                                                 Publish                           and Type                        Ad Equivalency
                                                                                                  currency)
                                                                                                                                                The story talks about Colorado’s
                                                                                  E-Magazine
   Viaje y Punto        Colorado en verano       August                  -                       201,262.95            15,885           PR      summer proposal and promotes 2
                                                                                   1,500,000
                                                                                                                                                summer packages.
                                                                                  Radio show                                                    The interview is about Colorado’s
 Travel Connection      Verano en Colorado       August        Rubén Hernández                  1,119,360.00          88,347.27         GA
                                                                                   250,000                                                      proposal during summer
                                                                                                                                                The article talks about the Biennial of
                          Bienal de las                                                                                                         the Americas that took place in
  Boy de viaje.com                                 July         Kenny Penman       Website         45,860             3,619.57          PR
                        Américas en Denver                                                                                                      Denver during July and its general
                                                                                                                                                activities agenda.
                                                                                  Radio show                                                    Marco Aguilar was invited to the
Imágenes del turismo    Summer in Colorado         July        Laura Rodriguez     200,000        2,439,500          192,541.43         GA      radio show to talk about Colorado’s
                                                                                   audience                                                     proposal during summer.

         Source Key –

         PFI or PFG         Press FAM result (individual or group)
         PR                 Result of press release
         PC                 Result of press conference/media event
         P                  Result of the promotion
         GA                 Result of general PR activity
         NA                 Not Assisted by CTO




         Friday, July 22, 2011                                                                                                                                           3
Total Placed Media Equivalency Chart Report – Generated by TravelPIE

Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $23,880.7                            $23,880.7
  August 2010     $300,393.27                          $324,273.97
 September 2010
  October 2010
 November 2010
 December 2010
  January 2011
  February 2011
   March 2011
   April 2011
    May 2011
   June 2011

     TOTAL        $324,273.97                          $324,273.97

Total Media Equivalency Chart Report – Generated from all sources on Colorado
Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $36,430.7                            $36,430.7
  August 2010     $300,393.27                          $324,273.97
 September 2010
  October 2010
 November 2010
 December 2010
  January 2011
  February 2011
   March 2011
   April 2011
    May 2011
   June 2011

     TOTAL        $324,273.97                          $324,273.97




Friday, July 22, 2011                                                             4
Press Releases:
A “Fall in Colorado” press release was written and distributed to our media database.

B-Roll, Video and Photo Usage:
Received photo requests from Iconn Travel wholesaler to publish a story on Colorado in the e-magazine for Bancomer card holders.

Update of Media Calls/Press Contacts:
August 1st – Alfonso Castillo – Publimetro
Visited us to provide information on this publication and offer advertising packages.

August 3rd - Marty Mc Lennan - Journalist – Bleu & Blanc magazine
Emailed to find out if he is publishing stories on the ski fam trip he attended back in December. He will publish 4 pages in Bleu & Blanc’s special
ski edition.

August 5th – Mildred Ramo – Coeditor – Bon Voyage, Excelsior newspaper travel section
Requested information and high resolution images to schedule Colorado stories in upcoming editions. She will let us know whenever a story is
about to be published.

August 6th – Valerio Negri – Editor – Bleu & Blanc magazine
Sent invitation to attend Fall fam trip and followed-up on his confirmation and photographer attendance request. Tickets were bought to guarantee
availability and lowest possible airfare.

August 6th – Gabriela Said – Editor – Vuelo magazine
Sent invitation to attend Fall fam trip and followed-up on her confirmation. Due to Mexicana airlines situation, her participation was cancelled.

August 6th – Liliana García Brena – Co-Editor – La Revista magazine
Sent invitation to attend Fall fam trip and followed-up on her confirmation. Tickets were bought to guarantee availability and lowest possible
airfare.

August 6th – Laura Pardo – Editor – De viaje, Reforma newspaper travel section
Sent invitation to attend Fall fam trip and followed-up on her confirmation and photographer attendance request. Tickets were bought to guarantee
availability and lowest possible airfare.

August 6th – Andrés Tapia – Editor – GQ magazine
Sent invitation to attend Fall fam trip and followed-up on her confirmation. Tickets were bought to guarantee availability and lowest possible
airfare. They also requested authorization to send a photographer but due to delay on authorization, they couldn’t find an affordable airfare for the
photographer.

August 9th – Alexandra Rubalcava – Commercial Director – Travesías magazine
Spoke with her to find out if we could send story ideas for their gastronomic edition. She wanted us to buy publicity in order to place Colorado
content in this edition.



Friday, July 22, 2011                                                                                                                                 5
             August 11th – Rubén Hernandez - “Travel Connection” radio show
             Follow-up of the interview done in his radio show. The broadcast date and recording was received during the first half of the month.

             August 13th – Beto Adame – freelance photographer & Jounalist
             Emailed to request an appointment in order to discuss the possibility of arranging an individual trip for him to visit Colorado. Will speak further
             ahead, so that he has time to send a written proposal.

             August 12th – Claudia Martinez – Estée Lauder
             Met to explore possible projects that we can develop together. PR Manager wasn’t at the office but will follow-up on our meeting discussion.


             Confirmed Individual Media FAM Trips
                                               Attending         Circulation of                                                                       Date Article
Date of FAM Trip         Publication                                                  Profile              Theme              Destinations                                PR Value $
                                               Journalist         Publication                                                                          Appeared
                                                                                                                           Denver, Colorado
                                                                                                       National Parks,     Springs, Manitou
                        Elite magazine,                           Elite – 10,000                                                                    September (Elite
                                           Enrique Escalona                                           Sports scene and     Springs, Durango,
      July             ESPN en español,                          ESPN – 80,000                                                                        and ESPN)
                                            David Paniagua                                           urban experience in   Mesa Verde,
                        LaGiraffe.com                           LaGiraffe – 8,000
                                                                                                           Denver          Durango - Silverton
                                                                                                                           train

             Group Media:
                                               Attending         Circulation of                                                                         Date Article
Date of FAM Trip         Publication                                                       Profile                 Theme           Destinations
                                               Journalist         Publication                                                                            Appeared         PR Value $
                                                                                                                                  Denver, Vail,
                                                                                                                                 Aspen, Durango,
                         Bleu & Blanc       Hilda Dominguez         43,800                                                                                             28,680 USD per
September 9 – 15                                                                                                                Mesa Verde, Black          TBD
                          magazine             (Co-editor)          monthly                                                                                            page
                                                                                                                                  Canyon of the
                                                                                                                                    Gunnison
                                                                                                                                  Denver, Vail,
                                                                                                                                 Aspen, Durango,
                         Bleu & Blanc      Carlos García Mora                                                                                                          28,680 USD per
September 9 – 15                                                     43,800                                                     Mesa Verde, Black          TBD
                          magazine           (photographer)                                                                                                            page
                                                                                                                                  Canyon of the
                                                                                                                                    Gunnison
                                                                                                                                  Denver, Vail,
                                                                                                                                 Aspen, Durango,
                                                                    70,560                                                                                             37,322.83 USD per
September 9 – 15             GQ              Mariela Gomez                                                                      Mesa Verde, Black          TBD
                                                                    monthly                                                                                            page
                                                                                                                                  Canyon of the
                                                                                                                                    Gunnison
                                                                                                                                  Denver, Vail,
                                                                                                                                 Aspen, Durango,
                       De viaje, Reforma   Sergio Zepeda de         145,963                                                                                            30,000 USD per
September 9 – 15                                                                                                                Mesa Verde, Black          TBD
                          newspaper         Alba (journalist)        weekly                                                                                            page
                                                                                                                                  Canyon of the
                                                                                                                                    Gunnison
                                                                                                                                  Denver, Vail,
                       De viaje, Reforma   Yolanda Garduño          145,963                                                      Aspen, Durango,                       30,000 USD per
September 9 – 15                                                                                                                                           TBD
                          newspaper         (photographer)           weekly                                                     Mesa Verde, Black                      page



             Friday, July 22, 2011
                                                                                                                                  Canyon of the

                                                                                                                                                                            6
                                                                                                                                  Gunnison


                                                                                                                                Denver, Vail,
                                                                                                                               Aspen, Durango,
                                         Liliana García        10,000                                                                                        24,000 USD per
September 9 – 15        La Revista                                                                                            Mesa Verde, Black        TBD
                                              Brena            monthly                                                                                       page
                                                                                                                                Canyon of the
                                                                                                                                  Gunnison

         Media Events:

         Travel Trade Promotions

         Current Co-ops:
         Company           Details                                       Dates               Partners   On-Line OR Off-Line                  Results


         Julia Tours       OFFLINE CAMPAIGN – CONSUMER                    Spring / Summer                          Off line
                                                                                2010

         Servicios de      OFFLINE CAMPAIGN – CONSUMER                    Spring / Summer                          Off line
         viaje 365                                                              2010

         Despegar.com      ONLINE CAMPAIGN – CONSUMER                     Spring / Summer                          Online
                                                                                2010


         Trade Contacts/Sales Calls/Sales Leads:

         •    Iconn Travel – Kept in touch with Claudia Lopez to provide material (content & images) to include a section on Colorado in their electronic
              magazine (sent to all Bancomer credit card holders). Followed-up on the design and information. Final version was uploaded on Monday 23rd.

         •    Iconn Travel – Guillermo Víquez emailed several partners requesting information on their products / services. We followed-up on his emails
              and spoke with him to receive his feedback on the product options sent to him.

         •    Ofertas Turísticas – Met with Miguel Angel Perez (Managing Director) to follow-up on the information he received from ski.com as he is really
              interested on selling ski for the 2010-2011 ski season. Product training took place with 15 travel agents at their central office.

         •    Exitur – Met with International Coordinator to deliver Colorado travel guides and brief him on the state’s year round proposal. Their main
              product is business and convention trips but they were positively surprised by the State’s diversity of attractions and will go through the travel
              guide with the Product Manager in order to determine what kind of product could be of interest to their clients.

         •    La Casa del viaje - Met with their travel agents to deliver Colorado travel guides and brief them on the state’s year round proposal. They
              requested contact information on ski product for that is their clients’ main interest; they will study Colorado’s summer proposal and come back


         Friday, July 22, 2011
              with their questions.
                                                                                                                                                                   7
•     Navitur – Met with Jaime Rogel in order to discuss his clients’ particular interests and what Colorado can do to have more presence / products
      within his catalogue. He is also in charge of Babylon, the most important gay travel agency in the country and is interested on options to build
      honeymoon packages (gay marriage has been authorized recently in Mexico and honeymoons currently represent a major business
      opportunity)

Travel Trade Events, Trainings, Seminars, Workshops:

•     Ofertur – On Wednesday 18th we conducted product training for the wholesaler’s travel agents. They are building 2 summer / fall packages
      and interested on including more Colorado product in their catalogue.

Trade FAMS (Group or Individual):
    Date of FAM                                                                                                              Participating
                            Company             Attending personnel            Title          Profile / Current product                        Results
        Trip                                                                                                                 Destinations
                                                                                                                            Denver, Grand
                                                                                                                               Junction,
                                                                                             Summer co-op with them to
         th       th                                                                                                       Colorado Springs,
    June 7 – 13        Servicios de viaje 365      David Aguirre        Managing Director    promote 2 Colorado summer
                                                                                                                              Glenwood
                                                                                                      packages
                                                                                                                               Springs,
                                                                                                                             Breckenridge
                                                                                                                            Denver, Grand
                                                                                                                               Junction,
         th       th                                                                                                       Colorado Springs,
    June 7 – 13          Viajes Coaplaza            Oscar Giron           Product Director
                                                                                                                              Glenwood
                                                                                                                               Springs,
                                                                                                                             Breckenridge
                                                                                                                            Denver, Grand
                                                                                                                               Junction,
         th       th                                                                                                       Colorado Springs,
    June 7 – 13            Iconn Travel         Luis Guillermo Viquez   Marketing Manager
                                                                                                                              Glenwood
                                                                                                                               Springs,
                                                                                                                             Breckenridge
                                                                                                                            Denver, Grand
                                                                                                                               Junction,
                                                                                             Summer co-op with them to
         th       th                                                                                                       Colorado Springs,
    June 7 – 13             Julia Tours             Arleth Sevilla      Commercial Manager   promote 2 Colorado summer
                                                                                                                              Glenwood
                                                                                                      packages
                                                                                                                               Springs,
                                                                                                                             Breckenridge
                                                                                                                            Denver, Grand
                                                                                                                               Junction,
         th       th                                                                         Most important ski-packages   Colorado Springs,
    June 7 – 13         Holam International       Sandra Ginsberg        Sales Department
                                                                                              wholesaler in Mexico city       Glenwood
                                                                                                                               Springs,
                                                                                                                             Breckenridge



Travel Tradeshows:


Friday, July 22, 2011                                                                                                                                    8
Consumer Promotions

Consumer-Related Programs (Consumer shows/Consumer leads): 0

Consumer Inquires without brochure fulfilment:

Distribution of Materials for corresponding Month and Cumulative Amount to date:

Month                                                    www.colorado.com              Other – telephone/ email request       Total
July 2010                        0                                                 2                                      2
August 2010
September 2010
October 2010
November 2010
December 2010
January 2011
February 2011
March 2011
April 2011
May 2011
June 2011
Total

                                                             Colorado Fulfilment Stats 2009
Total fulfilment graph
                                                               200
                                      No of packs sent




                                                               150
                                                               100
                                                                50
                                                                 0
                                                                     Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

                                                                     Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
                               Packs (Colorado.com                    67
                               requests)
                               Trade packs (phone                     75
                               requests)
                               Consumer packs (phone                   3
                               requests)



Friday, July 22, 2011                                                                                                                 9
Friday, July 22, 2011   10
Monthly Report – TravelPIE – México                                           CTO Mexico – September 2010
Fast Facts:

 Highlight 1:
                                                                                 th     th
 The first Fall media fam trip for the Mexican market took place from September 9 to 16 with very positive
 results. ALL the media that attended the trip returned amazed with Colorado’s natural beauty and diverse
 touristic proposal.

 Highlight 2:
 Ten days after returning from the Fall media fam trip, Sergio Zepeda, journalist of the most prestigious
 newspaper in Mexico, published a 3 page story on Denver that was featured in the travel section’s main page
 (full page). Due to the article’s outstanding quality (content and images), it was also featured in “Mural” and “El
 Norte” Sunday editions, which are Reforma’s newspaper editions for Guadalajara and Monterrey cities,
 respectively.

Public Relations
     • Numbers of Media Calls/Follow up Calls: 25
     • Press Release sent: 1
     • Attended: 1

         Total Monthly Media Equivalency compared Year to Date in US Dollars:
         $ 494,893.96 (September 2009 $49,538.45 USD = 445,355.51USD more this year)
         Total Cumulative Equivalency compared Year to Date in In-Market currency: $10,413,109 MXP

     •   TravelPIE PR Placed Monthly Media Equivalency compared Year to Date in US Dollars:
         $494,893.96 (September 2009 $49,538.45 USD = 445,355.51USD more this year)
     •   TravelPIE PR Placed Cumulative Equivalency compared Year to Date in In-Market currency:
         $10,255,983 MXP

Travel Trade
     • Number of Sales Calls: 10
     • Number of Trade Inquiries: 2
     • Attended: 0

Current Running Co-Ops
IPC has approved the following programs which began on April and end in September:
                   • Julia Tours (Nationwide) – printed advertisement in summer catalogue. Distribution
                       began on April.
                   • Servicios de viaje 365 (Guadalajara) – Training seminar for travel agents took place on
                       April 29th at Quinta Real Hotel.
                   • Despegar (Nationwide) – the micro-site was launched on Wednesday 26 . It includes
                                                                                                   th

                       valuable and comprehensive information on what Colorado offers during summer and
                       several packages (in Denver as well as in other cities) that include airfare,
                       accommodation and activities.

Consumer Fulfilment
    • Number of Consumer Inquiries: 3
    • Distribution of Materials: 3


US Dollar Exchange Rate (August) 12.52
   • Compared to 13.50 in September 2009

Tuesday, November 02, 2010                                                                                             1
Online Activities:
 CTO Official Website Visitors (Mexico’s version of Colorado.com): 1,354 visits
 Website Visitors from Mexico: 30




Tuesday, November 02, 2010                                                        2
         TravelPIE – Monthly Report
         Public Relations

         Total Media Equivalency Clipping Evaluation Report – TravelPIE
                                                                                                   Evaluation (in
                                                 Date of                           Circulation                      Evaluation in USD –
    Publication                Title                                 Journalist                       market                              Source                  Details
                                                 Publish                            and Type                          Ad Equivalency
                                                                                                     currency)
                                                                                                                                                   The story talks about Colorado’s
                                                                                   E-Magazine
    Viaje y Punto       Colorado en verano       August                  -                          201,262.95            15,885           PR      summer proposal and promotes 2
                                                                                    1,500,000
                                                                                                                                                   summer packages.
                                                                                                                                                   The three page story talks about the
                           All Access:                                              Magazine
  ESPN en Español                              September       Enrique Escalona                      1,035,000          82,667.73          PFI     Broncos’ stadium and provides a
                         INVESCO Field                                               80,000
                                                                                                                                                   general review of its story
                                                                                                                                                   The article was the cover story for
                                                                                                                                                   this edition and talks about Denver’s
  De viaje, Reforma                                            Sergio Zepeda de    Newspaper
                         Denver de cerca      September 26                                           1,548,970           123,917.6         PFG     cultural proposal as well as
     newspaper                                                       Alba         Travel section
                                                                                                                                                   neighborhoods like LoDo, Highlands
                                                                                                                                                   and Cherry Creek.
                                                                                                                                                   The article was the cover story for
                                                                                                                                                   this edition and talks about Denver’s
                                                               Sergio Zepeda de    Newspaper
       Mural             Denver de cerca      September 26                                           1,548,970          123,917.6          PFG     cultural proposal as well as
                                                                     Alba         Travel section
                                                                                                                                                   neighborhoods like LoDo, Highlands
                                                                                                                                                   and Cherry Creek.
                                                                                                                                                   The article was the cover story for
                                                                                                                                                   this edition and talks about Denver’s
                                                               Sergio Zepeda de    Newspaper
      El Norte           Denver de cerca      September 26                                           1,548,970          123,917.6          PFG     cultural proposal as well as
                                                                     Alba         Travel section
                                                                                                                                                   neighborhoods like LoDo, Highlands
                                                                                                                                                   and Cherry Creek.
                                                                                    Website                                                        The story talks about Denver and
  Aeroméxico.com        Denver en bicicleta   September 27      Mariela Gómez                         35,828             2,768.78          PFG
                                                                                     7,500                                                         how to explore it riding a bike.
                                                                                                                                                   The story talks about Durango city,
                                                                                    Website
   LaGiraffe.com        Ciudades secretas     September 19     Enrique Escalona                       99,216             7,924.60          PFI     the Durango-Silverton railroad and
                                                                                     7,500
                                                                                                                                                   Mesa Verde National Park.
                                                                                                                                                   The story talks about Denver
Bon Voyage, Excelsior      Denver y sus                                            Newspaper
                                               September         Mildred Ramo                         173,966            13895.05          PR      museums and the King Tut exhibit at
     newspaper               museos                                                  90,000
                                                                                                                                                   the DAM

         Source Key –

         PFI or PFG         Press FAM result (individual or group)
         PR                 Result of press release
         PC                 Result of press conference/media event
         P                  Result of the promotion
         GA                 Result of general PR activity
         NA                 Not Assisted by CTO




         Tuesday, November 02, 2010                                                                                                                                         3
Total Placed Media Equivalency Chart Report – Generated by TravelPIE

Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $23,880.7                            $23,880.7
  August 2010     $300,393.27                          $324,273.97
 September 2010   $494,893.96                          $819,167.93
  October 2010
 November 2010
 December 2010
  January 2011
  February 2011
   March 2011
    April 2011
    May 2011
   June 2011

     TOTAL        $819,167.93                          $819,167.93

Total Media Equivalency Chart Report – Generated from all sources on Colorado
Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $36,430.7                            $36,430.7
  August 2010     $300,393.27                          $336,823.97
 September 2010   $494,893.96                          $831,717.93
  October 2010
 November 2010
 December 2010
  January 2011
  February 2011
   March 2011
    April 2011
    May 2011
   June 2011

     TOTAL        $831,717.93                          $831,717.93




Tuesday, November 02, 2010                                                        4
Press Releases:
A “Colorado in the Top 10 outdoors destinations in the US” press release was written and distributed to our media database.

B-Roll, Video and Photo Usage:
Received photo requests from Excelsior newspaper, Bleu & Blanc and GQ magazines.

Update of Media Calls/Press Contacts:
            nd
September 2 – Mariana Mendoza – Forward magazine
Contacted us to request to be added to our media database. Agreed to meet further ahead to go through the publication she directs.
             th
September 5 – Mildred Ramo – Coeditor – Bon Voyage, Excelsior newspaper travel section
Followed-up on the content and images provided to her on Denver and Colorado museums. She confirmed the publication date of the story
produced with this material.
             th
September 6 – Valerio Negri – Editor – Bleu & Blanc magazine
Requested support to publish a story on The Broadmoor. Sent material for his consideration and he confirmed the story will be published in the
October edition.
             th
September 7 – Sergio Zepeda de Alba – Journalist – De viaje, Reforma newspaper travel section
Emailed to request additional activities in Denver during his attendance to the Fall media fam trip. Among Jennifer Bartlett and Jenn Elving, the
requested additions were arranged.
             th
September 8 – David Paniagua – Photo Editor – ESPN magazine
Emailed a PDF file with the article published on the INVESCO field in September’s edition. This article is the first coverage published as a result of
the individual trip him and Enrique Escalona did in July.
               th
September 13 – Esther González – Coeditor – Donde ir magazine
Sent her contact info and requested to be added to our media database. She used to work in Reforma newspaper and recently moved to Donde Ir
magazine.
               th
September 13 – Vicente Ochoa – Journalist – Ocho Columnas newspaper (Guadalajara)
Emailed us to inform he wrote a story on Denver (based on the breweries press release sent in June) to talk about the Great American Beer
Festival, that would be published in September.
              th
September 19 – Enrique Escalona – Editor – La Giraffe
Emailed to inform the second coverage of his individual trip to Colorado was published that day in LaGiraffe.com
              th
September 20 – Luz América Alvarado – Editor – Indie Food magazine
Emailed to introduce the new magazine she’s working for and request a meeting to present her mid-term projects.
              th




Tuesday, November 02, 2010
September 20 – Mildred Ramo – Coeditor – Bon Voyage, Excelsior newspaper travel section

                                                                                                                                                     5
             Emailed to request high-resolution images on Rocky Mountain National Park to write a story on it (based on the press release sent).
                           st
             September 21 – Mariela Gomez – Journalist – Christmas supplement for Excelsior newspaper
             Emailed to request support to gather material (content and high res images) on Vail and Aspen proposal for kids during winter.


             Confirmed Individual Media FAM Trips
                                              Attending         Circulation of                                                                                  Date Article
Date of FAM Trip         Publication                                                      Profile                    Theme               Destinations                                PR Value $
                                              Journalist         Publication                                                                                     Appeared
                                                                                    Mexicana Airline’s
                                                                                    business class in-
                                                                                                                                                              September - ESPN
                                                                                     flight magazine.                                Denver, Colorado
                                                                                                                                                               story on IVESCO    82,667.73 USD
                                                                                        ESPN is the          National Parks,         Springs, Manitou
                       Elite magazine,                           Elite – 10,000                                                                                       field       ESPN
                                           Enrique Escalona                         Spanish version of      Sports scene and         Springs, Durango,
      July            ESPN en español,                          ESPN – 80,000                                                                                 September – Mesa
                                            David Paniagua                         the US magazine, it     urban experience in       Mesa Verde,
                       LaGiraffe.com                           LaGiraffe – 8,000                                                                                    Verde in      7,924.60
                                                                                    publishes its own            Denver              Durango - Silverton
                                                                                                                                                                 LaGiraffe.com    LaGiraffe.com
                                                                                   contents and only a                               train
                                                                                   small % is from the
                                                                                        US version.

             Group Media:
                                              Attending        Circulation of                                                                                     Date Article
Date of FAM Trip        Publication                                                            Profile                       Theme           Destinations
                                              Journalist        Publication                                                                                        Appeared           PR Value $
                                                                                                                                             Denver, Vail,
                                                                                   Mexico’s most important high-
                                                                                                                                            Aspen, Durango,
                        Bleu & Blanc       Hilda Dominguez         43,800          end travel magazine. It                                                                        28,680 USD per
September 9 – 15                                                                                                                              Mesa Verde,             TBD
                         magazine             (Co-editor)          monthly         celebrated its 10th anniversary                                                                page
                                                                                                                                            Black Canyon of
                                                                                   this month.
                                                                                                                                             the Gunnison
                                                                                                                                             Denver, Vail,
                                                                                   Mexico’s most important high-
                                                                                                                                            Aspen, Durango,
                        Bleu & Blanc      Carlos García Mora                       end travel magazine. It                                                                        28,680 USD per
September 9 – 15                                                   43,800                                                                     Mesa Verde,             TBD
                         magazine           (photographer)                         celebrated its 10th anniversary                                                                page
                                                                                                                                            Black Canyon of
                                                                                   this month.
                                                                                                                                             the Gunnison
                                                                                                                                             Denver, Vail,
                                                                                   Mexican edition of the
                                                                                                                                            Aspen, Durango,
                                                                   70,560          renowned US magazine. The                                                                      37,322.83 USD per
September 9 – 15                GQ          Mariela Gomez                                                                                     Mesa Verde,             TBD
                                                                   monthly         most popular men’s magazine                                                                    page
                                                                                                                                            Black Canyon of
                                                                                   in México.
                                                                                                                                             the Gunnison
                                                                                   Mexico’s most prestigious
                                                                                                                                             Denver, Vail,
                                                                                   newspaper. It also publishes
                                                                                                                       Denver cultural      Aspen, Durango,
                      De viaje, Reforma   Sergio Zepeda de         145,963         “Mural” in Guadalajara and “El
September 9 – 15                                                                                                       scene and five         Mesa Verde,        September 26th   123,917.6 USD
                         newspaper         Alba (journalist)        weekly         Norte” in Monterrey. Contents
                                                                                                                       neighbourhoods       Black Canyon of
                                                                                   are shared in these three
                                                                                                                                             the Gunnison
                                                                                   editions.
                                                                                   Mexico’s most prestigious                                 Denver, Vail,
                      De viaje, Reforma   Yolanda Garduño          145,963         newspaper. It also publishes                             Aspen, Durango,                       30,000 USD per
September 9 – 15                                                                                                                                                      TBD
                         newspaper         (photographer)           weekly         “Mural” in Guadalajara and “El                             Mesa Verde,                         page



             Tuesday, November 02, 2010
                                                                                   Norte” in Monterrey. Contents                            Black Canyon of

                                                                                                                                                                                       6
                                                                           are shared in these three                                  the Gunnison
                                                                           editions.

                                                                           High-end magazine with a                                   Denver, Vail,
                                                                           monthly print-run of 10,000                               Aspen, Durango,
                                       Liliana García        10,000                                                                                              24,000 USD per
September 9 – 15        La Revista                                         copies. Half of it is distributed                           Mesa Verde,         TBD
                                            Brena            monthly                                                                                             page
                                                                           to a VIP database                                         Black Canyon of
                                                                           (personalized copies)                                      the Gunnison

         Media Events:

         Travel Trade Promotions

         Current Co-ops:
         Company           Details                                     Dates                     Partners      On-Line OR Off-Line               Results


         Julia Tours       OFFLINE CAMPAIGN – CONSUMER                  Spring / Summer                                   Off line
                                                                              2010

         Servicios de      OFFLINE CAMPAIGN – CONSUMER                  Spring / Summer                                   Off line
         viaje 365                                                            2010

         Despegar.com      ONLINE CAMPAIGN – CONSUMER                   Spring / Summer                                   Online
                                                                              2010


         Trade Contacts/Sales Calls/Sales Leads:

         •    Iconn Travel – Alejandro Lemus, Sales Director, sent a proposal to put together a campaign to advertise the upcoming ski season. After
              attendanding June’s trade fam trip, Iconn Travel is very interested on working together and upload Colorado product to their website inventory.

         •    Holam International – Met with Moises Braverman to discuss possible campaigns to promote the 2010-2011 ski season.

         •    Abiega Operadora – Sent an email to request information on Aspen product during Fall because they have a client interested on having a
              honeymoon trip to Aspen.

         •    Tac Tours – Spoke with Jesús Tafich to discuss possible advertising campaigns we can do together to promote winter’s ski season.

         •    Servicios de Viaje 365 - Spoke with David Aguirre to discuss possible advertising campaigns we can do together to promote winter’s ski
              season




         Tuesday, November 02, 2010                                                                                                                                   7
Travel Trade Events, Trainings, Seminars, Workshops:


Trade FAMS (Group or Individual):
 Date of FAM                                                                                                             Participating
                        Company             Attending personnel            Title          Profile / Current product                        Results
     Trip                                                                                                                Destinations
                                                                                                                        Denver, Grand
                                                                                                                           Junction,
                                                                                         Summer co-op with them to
                                                                                                                       Colorado Springs,
 June 7th – 13th   Servicios de viaje 365      David Aguirre        Managing Director    promote 2 Colorado summer
                                                                                                                          Glenwood
                                                                                                 packages
                                                                                                                           Springs,
                                                                                                                         Breckenridge
                                                                                                                        Denver, Grand
                                                                                                                           Junction,
                                                                                                                       Colorado Springs,
 June 7th – 13th     Viajes Coaplaza            Oscar Giron           Product Director
                                                                                                                          Glenwood
                                                                                                                           Springs,
                                                                                                                         Breckenridge
                                                                                                                        Denver, Grand
                                                                                                                           Junction,
                                                                                                                       Colorado Springs,
 June 7th – 13th       Iconn Travel         Luis Guillermo Viquez   Marketing Manager
                                                                                                                          Glenwood
                                                                                                                           Springs,
                                                                                                                         Breckenridge
                                                                                                                        Denver, Grand
                                                                                                                           Junction,
                                                                                         Summer co-op with them to
                                                                                                                       Colorado Springs,
 June 7th – 13th        Julia Tours             Arleth Sevilla      Commercial Manager   promote 2 Colorado summer
                                                                                                                          Glenwood
                                                                                                 packages
                                                                                                                           Springs,
                                                                                                                         Breckenridge
                                                                                                                        Denver, Grand
                                                                                                                           Junction,
                                                                                         Most important ski-packages   Colorado Springs,
 June 7th – 13th    Holam International       Sandra Ginsberg        Sales Department
                                                                                          wholesaler in Mexico city       Glenwood
                                                                                                                           Springs,
                                                                                                                         Breckenridge



Travel Tradeshows:

Consumer Promotions

Consumer-Related Programs (Consumer shows/Consumer leads): 0

Consumer Inquires without brochure fulfilment:

Distribution of Materials for corresponding Month and Cumulative Amount to date:


Tuesday, November 02, 2010                                                                                                                           8
Month                                                 www.colorado.com              Other – telephone/ email request       Total
July 2010                     0                                                 2                                      2
August 2010
September 2010
October 2010
November 2010
December 2010
January 2011
February 2011
March 2011
April 2011
May 2011
June 2011
Total

                                                          Colorado Fulfilment Stats 2009
Total fulfilment graph
                                   No of packs sent         200
                                                            150
                                                            100
                                                             50
                                                              0
                                                                  Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

                                                                  Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
                             Packs (Colorado.com                   67
                             requests)
                             Trade packs (phone                    75
                             requests)
                             Consumer packs (phone                  3
                             requests)




Tuesday, November 02, 2010                                                                                                         9
MARKET INTELLIGENCE

Economy

                       Jan      Feb     March    April    May     June

Exchange Rate (U.S)    12.97   12.87    12.35    12.28    12.68   12.90

Consumer Confidence
                       82.1     80.6    81.8     82.5     84.6    87.5
Index
                       July    August   Sept    October   Nov     Dec

Exchange Rate (U.S)    13.35   13.26

Consumer Confidence
                       87.4
Index




Tuesday, November 02, 2010                                                10
Source: Banco de Mexico; National Statistics, Geography and Information Institute (INEGI); Oanda.com

CONSUMER PRICES CLIMB IN AUGUST
Analysts See Demand Rising for the Rest of ‘10
(From The News. September 10, 2010)
Mexican inflation rose less than expected in August as consumer prices were held down by a weak
economic recovery that should give the central bank more room to keep interest rates on hold.
Consumer price inflation rose to 0.28 percent in August from 0.22 percent in July, while analysts had
expected a reading of 0.32 percent for the month.
Twelve-month inflation, however, broke a four-month streak of declines rising to 3.68 percent from the
3.64 percent seen in July, the central bank said on Thursday. The closely watched core index, which
strips out some volatile food and energy prices, was up 0.1 percent during the month.
Fuel costs should continue to climb through the year, along with volatile food prices, driving up overall
inflation. But the core inflation figure that most concerns central bankers should stay muted, said Arturo
Vieyra, an economist with Banamex.
“We also see internal demand increasing for the rest of the year as the employment picture improves,”
he said.
Consumer confidence climbed slightly in August but unemployment also saw an uptick in July.

RATES ON HOLD
The central bank slashed interest rates in 2009 in an effort to stem the global financial crisis, but the
economy still contracted 6.5 percent that year.
Analysts expect the central bank to keep its key lending rate steady through at least the middle of 2011
as growth is expected to slow next year.
In announcing its budget proposal on Wednesday, the Finance Ministry said it expects a 3.8 percent
growth rate for 2011 with inflation at 3 percent for the year. Mexico has been an economic laggard
compared to its regional peers as the global economy struggles to rebound from a deep downturn.


Outbound Travel Market

General


Long haul


Competitive Environment

Competitor Spend/Activity


Routes


Consumer Trends

General

MEXICO KICKS OFF BICENTENNIAL CELEBRATIONS
(From USA Today. September 15, 2010)

Tuesday, November 02, 2010                                                                              11
Mexico celebrates its 200th birthday tonight, kicking off a two-day bicentennial extravaganza of laser
shows, fireworks and music aimed at lifting citizens' spirits in the midst of a recession and a bloody war
against drug cartels.
On Tuesday, work crews tested hundreds of lights in Mexico City's main Zócalo Plaza, where hotel
rooms were going for $2,600 apiece. Actors rehearsed on floats, portraying historical events. Honor
guards from 16 nations, including the United States, drilled for their role in a military parade.
Security was tight because of worries that drug cartels might stage an attack during the festivities. Two
years ago, attackers hurled grenades during an Independence Day festival in the central city of Morelia,
killing seven people and wounding 132.
"We're in bad shape as far as violence goes ... but you can't deny people a party if they want to
celebrate something," said Francisco Segura, 52, a building contractor.
Mexico has spent billions of dollars on public works projects leading up to the bicentennial, including
new airports, freeways and parks.
Even so, the development has been overshadowed by President Felipe Calderón's military crackdown
on the drug cartels, which began in December 2006. Since then, more than 22,000 people have died in
drug-related violence, according to an unofficial tally by the Reforma newspaper.
Officials in the violence-plagued border city of Ciudad Juárez kept crowds away from the site of the
traditional grito, or call-to-arms ceremony, in the city's main plaza. In Mexico City, riot police and
armored vehicles practiced crowd-control techniques on Tuesday.
Tonight's celebration marks the day in 1810 when Mexico began its war of independence against
Spain, an event that triggered similar uprisings across the Western Hemisphere.
In September 1810, rebels in the central state of Guanajuato were secretly planning an uprising against
the Spanish when their plot was discovered. As Spanish troops moved to arrest conspirators, one of
them, priest Miguel Hidalgo, realized the moment for revolution was upon them.
Before dawn on Sept. 16, 1810, Hidalgo rang the church bell to gather residents in the town of Dolores,
and then delivered a famous call to arms known as the grito, or shout.
The war lasted 11 years before Spain finally gave Mexico and Central America its independence. The
territory included what is now California, Arizona, Nevada, Utah, New Mexico, Texas and parts of
Wyoming and Colorado.
Tonight at 11, Calderón will ring a bell in the Zócalo Plaza and recite the names of Hidalgo and other
independence heroes. After each name, the crowd shouts Viva!— long may he live.
The event, which is repeated by mayors and governors across Mexico, has become an annual sign of
hope, said Oriel Gómez Mendoza, a historian at Michoacan University.
"Mexicans never give up," Gómez Mendoza said. "We're a country that never loses its pride."
The ceremony will be followed by fireworks, light shows, parades and concerts across Mexico,
organizers say.
Mexico's centennial celebration in 1910 also occurred during hard times. Two months after the
celebrations, Mexico was torn by a bloody civil war — the Mexican Revolution— that lasted 10 years.

MEXICO BICENTENNIAL NO CAUSE FOR CELEBRATION FOR MANY CITIZENS
(From cnn.com. September 16, 2010)
Mexico celebrates its bicentennial Wednesday, an event known as "El Grito," the shout for
independence first credited to a Catholic priest who demanded freedom from Spain. For many
Mexicans today, though, it's a quiet shout of despair.
The country is mired in a bloody drug war that has seen more than 28,000 people killed in less than
four years. The economy has barely begun to rebound from the global downturn, which hit Mexico
harder than most Latin American countries. Tourism, a major lifeblood for the nation, is drastically down
because of the violence and a flu pandemic last year that began in Mexico. And oil revenues, long a
rich sustenance for the nation's economy, also have suffered a major collapse.
Despite government efforts to hold a vast celebration that one leading newspaper called part Disney
and part infomercial, many Mexicans are just not feeling it.




Tuesday, November 02, 2010                                                                             12
"The climate in which we're living in this country does not lend itself to a real celebration," said Adrian
Jesus Garrido Gomez, who owns a car rental company and chauffeur service in Villahermosa, the
capital of southeastern Mexico's Tabasco state.
Garrido sounds leery of the nearly $232 million (about 2.97 billion pesos) the government says it has
spent on celebrations in Mexico City. The lavish events Wednesday night will feature a parade,
fireworks and a show that has merited visits by five Latin American presidents and dignitaries from 50
nations.
"They are grabbing it as an effort to make us forget everything that is happening in the country,"
Garrido said. "It's more of a distraction."
That distraction does not seem to be working.
"Mexico is downbeat," said Peter Hakim, president emeritus of the Inter-American Dialogue, a non-
partisan policy institute in Washington. "People are nervous about the future."
Andrew Selee, director of the Woodrow Wilson Center's Mexico Institute, sees Mexico at a crossroads.
"It's a time of soul-searching," he said Wednesday.
It's also a time of anxiety for authorities, who want to make sure the festivities go off without any major
incidents or violence from the nation's organized crime groups.
A bombing at a Grito celebration two years ago in Michoacan state left eight dead and more than 100
wounded.
More recently, narcotrafficking cartels have taken to setting off car bombs, an unprecedented event in
the nation's drug wars.
Authorities have dispatched more than 14,000 police and troops to the streets of Mexico City to guard
the peace. More than 2 million people are expected to throng the streets of the central city to watch the
parade.
Mexico formally recognizes its independence day each September 16 -- Thursday -- but the major
celebration traditionally begins the night before.
Close to midnight, President Felipe Calderon will make the symbolic shout "Viva Mexico" in the city's
Plaza de la Constitucion, better known as the Zocalo. It is one of the largest plazas in the world. The
shout pays tribute to a priest who called for sparked Mexico's struggle for independence from Spain on
Sept. 16, 1810.
Other cities have canceled celebrations. Juarez, the most violent city in the country, is one of them.
Celebrations also were canceled in Tabasco state.
That's probably a good thing, Garrido said.
"You can't openly go out and celebrate," he said.
Besides the security concerns, there's another reason Garrido does not feel like celebrating -- the
economy. Rain and recent storms have washed over much of Villahermosa, damaging the tourist trade
upon which the father of two young boys relies for his chauffeur and car rental business.
"The little that I make goes to pay bills," he said.
Gone this year, he said, is the usual trip over the holiday to visit his wife's parents in nearby Veracruz.
"We're going to have to do it in a more simple way," he said.
Despite the problems and the worries, Selee says Mexicans will rally around the flag this week.
"By tonight, people will celebrate," he said Wednesday morning. "When people around the country
shout, 'Viva Mexico,' they will come together with pride about Mexico."
But how long will that last?
"People will put aside their differences for 24 to 48 hours," Selee said.
Some might say it's not much of a reprieve for a country celebrating 200 years since it first tried to gain
independence.


Lifestyle

IN MEXICO, A WAR EVERY CENTURY
By Enrique Krauze
(From The New York Times. September 14, 2010)

Tuesday, November 02, 2010                                                                               13
Evry100 years, Mexico seems to have a rendezvous with violence. As the country gathers on
Wednesday night for the ceremony of the “grito” — the call to arms that began the war for
independence from Spain — we are enduring another violent crisis, albeit one that differs greatly from
those of a century and two centuries ago.
In 1810 and 1910, revolutions erupted that lasted 10 years or more and were so destructive that both
times it took decades for the country to re-establish its previous levels of peace and progress. Both
episodes furthered Mexico’s political development, however, and our collective memory centers on
these two dates that have taken on such symmetrical and mythical significance.
In 2010, Mexico is again convulsed with violence, though the size and scope of today’s conflict does
not even remotely approach that of 1810 or 1910. This war is unfolding within and between gangs of
criminals, who commit violent acts that are fueled only by a competitive lust for money. This is strikingly
different from the revolutions of 1810 or 1910, which were clashes of ideals.
In 1810, Mexican-born Spaniards — the creoles — saw no recourse other than violence as the means
to gain independence from Spain. Their principles were inspired by the doctrines of 16th-century
thinkers like the Jesuit Francisco Suárez, who argued for “popular sovereignty.” But the creoles were
also driven by specific grievances: they had long resented domination by men from the Iberian
Peninsula; they were also indignant that the seemingly inexhaustible wealth of New Spain had been the
principal financial resource for the frivolousness and senseless wars of the Spanish empire.
Yet the crown repeatedly ignored opportunities that might have avoided violent revolution — Spain
certainly could have loosened connections with its overseas dominions and granted Mexico some
degree of independence. When the provincial priest Miguel Hidalgo y Costilla shouted his call to arms,
the grito, from the steps of his Dolores church, the war for independence finally exploded.
Shortly afterward, a vast, mostly Indian army, armed mainly with slings, stones and bludgeons,
conquered various regional capitals, stopping just short of Mexico City itself. Though Father Hidalgo
was captured and executed in 1811, the uprising continued under the leadership of another priest, José
María Morelos, who would also be seized and killed by the Spanish government. But Mexico would
finally gain its independence in September 1821.
From 1810 to 1821, the war for independence cost about 300,000 lives in a population of around 6
million. Afterward, state income, agricultural, industrial and mining production, and, above all, the
availability of capital for investment did not reach their pre-1810 levels until the 1880s. And the material
desolation was followed by almost five decades of insecurity on the roads, political instability and
grievous civil and international wars.
There was also a series of confrontations between the country’s Liberal and Conservative factions until
the victory of President Benito Juárez over the Conservatives and the French army that supported
them. Following this unstable period, the Liberal government separated church and state and adopted a
stable, electoral political structure.
Unfortunately for our fledgling democracy, Porfirio Díaz, Juárez’s greatest general, seized power in
1876. Still, under his long authoritarian regime, Mexico achieved notable material progress in the
development of industry, the transportation network and foreign trade.
In 1910, after more than three decades of dictatorship, a large portion of the population believed that
violence was the only way to overthrow Díaz. A brief, purely democratic revolution attained its aim but
was soon reversed through a military coup supported by the American ambassador.

This new assault on the honor and well-being of the country — along with other accumulated
grievances of peasants, workers and the nationalistic middle class — led to the first true social
revolution of the 20th century.

The revolution of 1910 was even more destructive than the one in 1810. About 700,000 of some 15
million Mexicans died in warfare or through illness or starvation. An additional 250,000 emigrated to the
United States. Industrial production plummeted. Ranches, haciendas and cities were demolished. And
from 1926 to 1929 came the additional devastation of the Cristero war between Catholic peasants and
the anti-clerical government; the state’s eventual victory took 70,000 lives.


Tuesday, November 02, 2010                                                                               14
Beginning in 1929, the country re-established a central government (though unlike the Juárez
presidency, it was not a democratic one) under the hegemony of the Institutional Revolutionary Party.
The government carried vast agricultural reforms, substantially improved the conditions for workers,
established public institutions for social welfare that are still alive and well and oversaw decades of
growth and stability. In the view of most historians, the great social reforms accomplished by later
governments justified the Mexican Revolution’s decade of violence.

Today, a handful of powerful criminal groups has unleashed a blood-soaked and utterly illegitimate
wave of violence against the Mexican government and Mexican society. This “war,” which rages in too
many cities and states of my country, has created a truly Hobbesian situation of human brutality.
This situation is, in part, an unintentional result of Mexico’s definitive transition to democracy. In the
past 10 years, there has been a centrifugal effect on power, loosening the authoritarian hand of the
president and giving more latitude to local forces that, unfortunately, have included drug cartels and
other criminal enterprises.
This war, though, will have to be won — and economic growth will have to be revivified — within the
rules of democracy. Congress and President Felipe Calderón must agree on reforms to make the
economy more open, competitive and efficient. And the struggle against organized crime will require a
centralized police force that is more honest and professional; secure prisons; better control of the
customs apparatus and the flow of money; and changes in the judicial system, along with nationwide
campaigns against drug addiction.
Despite a bloody mythology that venerates the great protagonists of 1810 and 1910, most of whom met
brutal deaths, the common denominators of our national history have been social, ethnic and religious
coexistence; the peaceful construction of cities, villages and communities; and the creation of a rich
cultural mosaic. Many of us want to believe that we are living through a nightmare from which, one
morning, we will simply wake up, once again at ease.
But this is not the way things are. We are dealing with a situation generated, to a great extent, by the
market for drugs and weapons in the United States and by the refusal of many Americans to recognize
their own portion of responsibility in these tragic events. The drug war will have to be resolved on both
sides of the border.
Nonetheless, on Wednesday night, as we have on every Sept. 15 for 200 years, Mexicans will gather
together in the central squares of our cities and towns, even in the smallest and most remote villages.
At midnight, we will hear a local governing official re-enact the grito uttered by Miguel Hidalgo, the
“father of the fatherland.”
All the plazas across Mexico will be filled with light and music and color. And in the historic center of
Mexico City, we will watch the fireworks and the parades and we will hear President Calderón ring the
church bell once sounded by Miguel Hidalgo and then we will shout, jubilantly, with genuine feeling:
“Viva México!”


Socio Demographic

ELITE FLEE DRUG WAR IN MEXICO’S No. 3 CITY
(From The Wall Street Journal. September 10, 2010)
MONTERREY—A surge of violence by drug gangs in this industrial hub is leading to an exodus of
wealthy Mexicans as well as scores of U.S. and foreign expatriates, dealing a blow to what has long
been one of Latin America's richest and safest cities.
The security situation is so alarming in Monterrey, known as the "Sultan of the North" for its industrial
power, that the mayor has sent his family to live in Dallas, according to people familiar with the matter.
The mayor's office didn't respond to requests for comment.
In the past two weeks, U.S. farm equipment maker Caterpillar Inc. ordered executives with children to
leave the city, following a similar move by the U.S. State Department for American diplomats here.
Other U.S. firms are allowing employees to leave voluntarily.


Tuesday, November 02, 2010                                                                                15
"Based on recent guidance from the State Department, Caterpillar has informed expat employees in
some regions of Mexico (including Monterrey) that they and their families should repatriate as soon as
possible," Jim Dugan, Caterpillar's chief spokesman, said in an email to The Wall Street Journal. The
move affects about 40 employees, he said.

Mexico's Drug Killings
Nearly 23,000 people have died in drug-related violence since 2006, according to the government, with
northern border states experiencing the worst of the violence.
Monterrey is caught in a war between two powerful and bloodthirsty drug cartels, the Gulf Cartel from
neighboring Tamaulipas state, and the Zetas, a splinter group that used to provide its security muscle.
The two groups fell into open war at the start of this year, Mexican officials and analysts say.
Monterrey sits just 135 miles from the U.S. and is used as a staging ground to smuggle drugs north.
The battle has shocked the city, which historically had murder rates lower than the U.S. average. More
than 274 people have been executed in gangland hits so far this year, according to local officials.
Residents don't only face the threat of getting caught in the crossfire: Gangs are also carrying out a
wave of kidnappings—most of which go unreported because of fear of police involvement—and
extorting local businesses, demanding protection money.
Crime in Monterrey has helped push Mexico up the agenda of U.S. President Barack Obama, U.S.
officials say. This week, administration officials said they will look for stepped-up military cooperation to
help Mexico fight what some U.S. officials called a growing "narco-insurgency" threat, suggesting
Mexico had lost control of parts of the country.
In Monterrey, cars with Zeta gunmen patrol the city streets at night. Residents describe an informal 10
p.m. curfew, a time when many taxi drivers call it quits for the day.
Some Mexican businessmen say the panic about Monterrey is overdone. "This place used to be like
Switzerland, so it's the change that bothers people," said one businessman.
But the fears are taking a toll. One young Mexican executive at cement giant Cemex SAB, which has
headquarters in Monterrey, said he can count at least 20 different families from his circle of friends who
have left—nearly all of them for nearby Texas. "It's a rush for the exits," he said.
So many people are leaving that the city's leading businessman, Cemex Chief Executive Lorenzo
Zambrano, recently used his Twitter account to urge his fellow regios, as people from Monterrey are
called, to stop the exodus.
"Whoever leaves Monterrey is a coward. We have to fight for what we believe. We have to reclaim our
great city!" he wrote.
The decline of Monterrey presents one of the biggest challenges for President Felipe Calderón in the
three and a half years since he took power and declared war on powerful drug cartels. The city of 3.7
million, surrounded by dramatic mountains, is Mexico's third biggest after Mexico City and Guadalajara,
accounts for 10% of the country's annual economic output, and is a symbol of modernity for the rest of
the nation.
"Mexico can't afford to lose Monterrey," says Raul Benitez, a security expert at the National
Autonomous University of Mexico, the country's biggest university.
Officials in Nuevo León state, where Monterrey is located, say they are going all-out to fight organized
crime, improving coordination with the army, rooting out corruption in local police forces and launching
programs to improve social conditions in poor neighborhoods.
"We are not going to hand the keys to the city over to these groups," says Javier Treviño, the deputy
governor of Nuevo León.
Last year, Monterrey still had a relatively low murder rate of 6.5 deaths per 100,000 residents, well
below Mexico's average, and comparable to New York City. This year has brought one grim event after
another. In March, two doctoral students at the Monterrey Institute of Technology and Higher
Education, Mexico's most prestigious university, were killed in a gun battle between soldiers and cartel
gunmen.
A month later, hooded men raided a Holiday Inn in the downtown area and seized several guests, who
remain missing and are presumed dead. In late August, a mayor from a Monterrey suburb was
kidnapped and executed by a presumed drug gang.

Tuesday, November 02, 2010                                                                                16
But the event that spooked residents here the most took place on Aug. 20, when two bodyguards from
a leading Monterrey company were killed by cartel gunmen near the entrance to the prestigious
American School Foundation, where most American expats and many Mexican elite send their children
to school.
The shooting took place just as school was letting out, prompting frightened children to take cover in
the cafeteria.
Danielle Helfrich had just picked up her 12-year-old daughter Ema and was driving on the street in front
of the school when a dark-colored sport-utility vehicle suddenly came to a halt in front of them. Men
carrying automatic rifles poured out and began shooting at another SUV on the right. Mrs. Helfrich tried
to back out, but was blocked by traffic.
"We were stuck. I pushed my daughter down in the car. All I could hear were gunshots and her
screaming," says Mrs. Helfrich. "It was terrifying."
At least one bullet shattered the windshield of her Honda CRV. After several minutes, the shooting
stopped. Mrs. Helfrich drove home and packed their bags. She and her daughter left Monterrey the
following morning, and now live in Texas.
Days later, the U.S. consulate said it would order out any underage family members of U.S. diplomats
in Monterrey, putting the city on a par with rules for U.S. outposts in places such as Sudan, Yemen, and
Beirut.

U.S. officials say the city's ill-equipped local and state police forces are no match for the cartels. They
also say the city's police have been broadly corrupted. "We felt we had no choice," says one U.S.
official.
Mr. Treviño, the state deputy governor, doesn't dispute that there is corruption in the state's 51 different
local police forces. The state is pushing Mexico's Congress to pass a proposed bill to eliminate
Mexico's municipal police forces and replace them with 32 state forces, one for each state.
Some Mexicans and Americans in Monterrey aren't waiting around for things to improve. "The wealthy
Mexicans have been leaving for a few months now, but the exodus of Americans is just getting
underway," says Rafael Moreno, owner of Moreno Moving Co., which has seen a surge in demand for
its services. "It's really sad to see."
In recent months, the violence has moved into Monterrey's most exclusive neighborhoods. One
spooked American resident said he recently witnessed a drive-by shooting. Another said he decided to
leave Monterrey after four decapitated bodies were found along the route where he regularly went
biking.
Even longtime American residents of Monterrey are moving. "I know what the last reel of this movie
looks like, and I'm not sticking around to watch it," said a prominent American businessman who has
lived here for 20 years. He said he is moving to Mexico City within a few months and plans to leave
Mexico altogether shortly after.
The businessman said he is pessimistic about Mexico's ability to create honest police and a functioning
judicial system in order to weaken the cartels.


Internet



Travel Trade Trends


Travel Agents


Tour Operators

Tuesday, November 02, 2010                                                                                17
Airlines

CRISIS AT MEXICANA AIRLINES
Please refer to special section at bottom of this report

AIR CANADA EXPANDS SERVICE TO MEXICO CITY
Air Canada resumes daily flights to and from Montreal and Mexico City and introduces new
flight between the destination and Vancouver
 (From Travel Weekly. September 1, 2010)
Air Canada has announced that beginning in November, it will increase service between Mexico City
and Canada with the resumption of daily flights to and from Montreal and the introduction of a new flight
to and from Vancouver.
Twice daily flights between Toronto and Mexico City will also continue year round.
Air Canada currently operates twice daily service between Toronto and Mexico City using a 120-seat
Airbus A319.
Beginning November 1, Air Canada will launch additional daily service between Mexico City and
Canada with the reintroduction of daily service to and from Montreal.
On November 6, Air Canada will begin weekend service (Saturday and Sunday) between Vancouver
and Mexico City that will increase to daily service starting December 1.
All flights will be operated with Airbus A319 aircraft featuring Executive Service, individual seatback
entertainment systems, the ability to collect Aeroplan miles and lounge access for qualified customers.
The flights are also timed for convenient local and international connections.
Service between Montreal and Mexico City (beginning Nov. 1, 2010):

ALASKA AIRLINES ANNOUNCES NEW SERVICE FROM GUADALAJARA TO SAN JOSE AND
SACRAMENTO, CALIFORNIA
(From PRNewswire via COMTEX. September 16, 2010)
Alaska Airlines will inaugurate service between San Jose, Calif., and Guadalajara, Mexico, starting Dec
15, 2010, and between Sacramento, Calif., and Guadalajara, starting Dec 16, 2010. Tickets will go on
sale pending government approval of the new routes. "We are pleased to be able to offer more service
to this important Central Mexico market from two new gateways," said Joe Sprague, Alaska Airlines'
vice president of marketing. "Alaska Airlines has served Guadalajara from Los Angeles since 2003, and
we look forward to expanding our reach to our customers in the Bay Area." Summary of new service:
The new flights will be operated with Boeing 737-800 aircraft, accommodating 16 passengers in first
class and 141 in the main cabin. Alaska Airlines introduced service to Mexico in 1988 and flies an
average of 1 million passengers annually between the U.S. West Coast and Mexico. Alaska and sister
carrier Horizon Air together serve seven Mexico beach destinations -- Ixtapa/Zihuatanejo, La Paz,
Loreto, Los Cabos, Manzanillo, Mazatlan and Puerto Vallarta -- in addition to serving Guadalajara and
Mexico City.
General

ROYAL CARIBBEAN TO OPEN CORPORATE OFFICE IN MEXICO CITY
(From E-Turbo News. September 7, 2010)
Royal Caribbean Cruises Ltd. announced today it will establish a dedicated corporate office in Mexico
City in response to the increasing interest in cruising in Mexico. The new office will open in December
2010 to support the Sales, Marketing and Commercial Operations for the company's three cruise
brands: Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises.
American Express will continue representing Royal Caribbean in Mexico until the end of 2010, to allow
for a seamless transition.
"American Express has successfully served as the international representative of Royal Caribbean's
business in Mexico for the past 15 years, and their excellent team has done an outstanding job building

Tuesday, November 02, 2010                                                                            18
a solid foundation in this expanding market," said Michael Bayley, executive vice president of
international for Royal Caribbean Cruises Ltd. "In our new business model, American Express will
continue to play an important role by becoming a preferred distribution partner for their own sales
channels in Mexico. We look forward to continue building our business together," Bayley added.
"American Express is proud to be a part of the Royal Caribbean history in Mexico," said Daniela
Cerboni, vice president and general manager of American Express Membership Travel Services
International. "For many years we have worked together to grow the Royal Caribbean business and the
cruise industry in the market. We look forward to the opportunity to work with Royal Caribbean in the
future, and plan to continue to strengthen our long standing partnership, offering even more valuable
cruise benefits to our American Express Cardmembers in the market," Cerboni added.
The opening of Royal Caribbean's Mexico office is strategically timed. All three brands already enjoy
very strong positions in various segments of the market and a dedicated office will provide an
opportunity to further strengthen the market leading position.
"Our research shows that our Mexican guests really enjoy our various brand, product and destination
offerings," said Bayley. "This coupled with the knowledge that Mexico already is a substantial source
market for new cruise guests, and a great geographic location on the doorstep to several exciting and
appealing destinations, illustrates the great potential for growth in Mexico."
Royal Caribbean Cruises Ltd. is a global cruise vacation company that operates Royal Caribbean
International, Celebrity Cruises, Pullmantur, Azamara Club Cruises and CDF Croisieres de France. The
company has a combined total of 39 ships in service and three under construction. It also offers unique
land-tour vacations in Alaska, Asia, Australia/New Zealand, Canada, Dubai, Europe and South
America.



Media Trends

Print – newspapers


Print – magazines
Travesias magazine had its first Awards Ceremony in September 23rd to acknowledge the best
contents on Mexico (due to the bicentennial celebration). They plan to cover international destinations
for the second edition, in 2011.

Online
More printed magazines are developing /strengthening their electronic presence. Escala (Aeroméxico’s
in-flight magazine) launched its e-magazines, Facebook and Twitter profiles this month and the Editor
of “Indie Food”, a culinary & ecology magazine contacted us to inform their electronic version will be
launched in November.

Broadcast


General
The International Tourism of the Americas Fair took place from September 23rd to 25th. Networking
among media representatives and tourism offices / organisms was very successful.


General News


FCH: UN FORCES NOT NEEDED HERE

Tuesday, November 02, 2010                                                                            19
President Also Bashes U.S. Arms Sales
(From The News. September 3, 2010)
Mexico’s President Felipe Calderón on Sunday said that it would feel “out of place” to see the UN’s
“blue berets” in Mexico to help improve security conditions, and regretted that the United States is
doing so little to stop “the irresponsible sale” of weapons.
“I think it is out of place. The truth is that it is not only a problem of police forces and surveillance,” said
Calderón in an interview with the Spanish-language U.S. media company Univisión.
“You cannot recall a confrontation between Mexican Army forces and criminals in which the Mexican
army lost, not one,” answered Calderón to journalist María Elena Salinas.
Calderón said that part of the problem is coming from the United States, caused by drug consumption,
and now it’s being “aggravated by an irresponsible sale of weapons in the United States.”
“When the ‘Assault Weapons Ban’ was abolished in 2004, the sale of AK47, R-15 and other rifles
expanded quickly. During my administration, we have seized 85,000 weapons, out of which 50,000
were rifles and over 7,000 grenades and 9 million cartridges,” Calderón said.
Salinas questioned him about the role of the United States in Mexico’s cycles of violence.
“Certain authorities have reacted positively, such as the U.S. Bureau of Alcohol, Tobacco, Firearms and
Explosives. But the United States is still supplying weapons to Mexican criminals,” Calderón added.

PEÑA NIETO BASHES PARTY ALLIANCES
Governor Talks Politics, Economic Growth in State Address
(From The News. September 6, 2010)
During the occasion of his fifth State of the State adress, Gov. Enrique Peña Nieto attacked alliances
with opposing philosophies and said they were authoritarian and incongruous.
“In the search for power, there are alliances between opposing parties, which generate a mistrust in
politics. It is a way of distorting democracy, the government and its institutions,” Peña said.
He defended the participation of the Institutional Revolutionary Party (PRI) in Mexico’s democratic
transition and ruled out that a return of the PRI to presidency would imply a step back to the “old
authoritarian system.”
Regarding next year’s vote, in which State of Mexico residents will elect Peña’s successor, he
guaranteed clean and unbiased elections.
During his speech on economic security, Peña said that “only when a high and equal economic growth
is reached, will it be possible to provide opportunities and development for everyone. The generation of
wealth and its distribution are the only way to combat the historical problems of poverty and inequality.”
He said that his administration has reduced the state’s public debt 24 percent, and increased state
finance, which has allowed an increase in public investment by 3.4 factors. It also doubled the state’s
income collection.
Regarding Small and Medium Businesses (SMBs), Peña said that despite the economic crisis, the
State of Mexico has been able to attract new national and international investors. Foreign investment
increased by 27 percent, reaching $1 billion.
Regarding the labor sector, he said 106,000 new jobs were created, which represents the highest
number reported over the last 10 years.
The state government, he said, is convinced that it is important to modernize transportation. Peña said
that Toluca’s International Airport has consolidated its strategic value after a 2-year crisis, and it has
served 13.5 million passengers.

CLINTON’S WORDS RANKLE SENATORS
(From The News. September 9, 2010)
Drug gangs in Mexico are morphing into an insurgency like that which gripped Colombia 20 years ago,
Secretary of State Hillary Clinton said on Wednesday.
“It’s looking more and more like Colombia looked 20 years ago, where the narco-traffickers controlled
certain parts of the country,” Clinton said.
These comments drew a variety of reactions from Mexican senators.
National Action Party (PAN) member and president of the Justice Commission, Alejandro González,

Tuesday, November 02, 2010                                                                                   20
backed Clinton’s statement saying, “we are on our way to ‘Colombianization’.”
However, González said that he hopes this is not the beginning of a U.S. military intervention in Mexico.
“I hope they aren’t comparing us with Colombia with the intention of doing the same to Mexico,”
González said.
In reaction to Clinton’s statement, Fernando Castro Trenti, the coordinator of the Institutional
Revolutionary Party (PRI), said the United States is also responsible for this situation, since it hasn’t
reduced drug consumption or regulated its arms manufacturing sector that supplies cartels.
The PAN vice-coordinator, Carlos Pérez Cuevas, said that it is the job of the Foreign Affairs Secretariat
(SRE) to ask Clinton for an explanation.
He recognized that violence has damaged Mexico’s image, but added that, “it could seem as if the 32
states were in the same situation, but in many parts of the country it is under control.”

OBAMA: MEXICO NOT LIKE COLOMBIA
President Does Not Agree with Clinton’s Comments
(From The News. September 10, 2010)
U.S. President Barack Obama on Thursday denied that rising drug violence made Mexico look
increasingly like Colombia at the height of its drugs war, rebuffing comments made by his Secretary of
State.
“Mexico is a vast and progressive democracy, with a growing economy, and as a result you cannot
compare what is happening in Mexico with what happened in Colombia 20 years ago,” Obama told Los
Angeles-based Spanish language newspaper La Opinion.
Obama’s comments were printed in Spanish and no English transcript was available from the White
House.
The U.S. leader’s remarks appeared a day after Secretary of State Hillary Clinton said cartels operating
in Mexico and Central America were starting to look like an “insurgency,” a comment that reflected
Washington’s growing concerns.
Mexico is “looking more and more like Colombia looked 20 years ago, where the narco-traffickers
control certain parts of the country,” Clinton told a foreign policy think-tank in Washington.
Colombia has spent decades battling leftist rebels financed by a lucrative cocaine trade. At the height of
Colombian violence in the 1980s and 1990s, the South American country was gripped by attacks on
political figures and civilians.
While violence has waned in Colombia, Mexican cartels have grown in power in recent years as they
took over much of the drug trade from Colombians, analysts and officials say.
More than 28,000 people have been killed since President Felipe Calderon took office in late 2006, but
the Mexican government says a spike in violence reflected cartels’ vulnerability.
Homicides in the northern state of Nuevo Leon, home to Mexico’s most violent drug war city, Ciudad
Juarez, dropped to 44 in August from 107 in July due to government security operations, senior
Mexican official Alejandro Poire told a news conference on Thursday.



Crisis at Mexicana Airlines


CHAOS AND STRANDED TOURISTS AFTER MEXICANA SHUTDOWN
(From The New York Times. September 1, 2010)
The sudden shutdown of Mexico’s largest airline on Friday stranded many tourists and left the Mexico
City airport in chaos for much of the weekend. But tour operators said on Monday that they were
confident they could reschedule flights.
Still, many Mexicans who had tickets for flights on the airline, Mexicana, said they feared they would
not get promised refunds for tickets for future flights, and complained of having to buy full-price tickets
to replace worthless Mexicana tickets.


Tuesday, November 02, 2010                                                                                21
Tour operators said that while the news on Friday of the suspension of all flights by Mexicana was
abrupt, it did not come as a total surprise. The company was saddled by debt and unable to renegotiate
labor contracts with its unions. It had already signaled to travel operators that its continued operation
was precarious.
Mexicana served more than a dozen routes to the United States and about a dozen routes inside
Mexico, as well as flights to Latin America and Europe. Over the last couple of years, it has lost market
share to low-cost airlines, and the whole industry suffered when tourism dropped last year in the wake
of the swine flu outbreak and the economic crisis. Reports about violence in the country have also
continued to discourage travel.
“Mexico is a tough sell because of the bad publicity,” said Bob McMillen, the chief executive of
TravelWizard.com, a travel agency. “This is not going to help. It’s a shame that this has happened.”
Jim Osborne, a vice president at Virtuoso, in Fort Worth, a network of travel agencies, said the
shutdown came during a slow season for travel to Mexico. “If it had to be, it’s the right time,” he said. “If
it had happened in winter, it would have had a much bigger impact.”
Because Mexico’s resort destinations are served by several airlines, rescheduling flights is relatively
easy, tour operators said.
Mexican officials played down the effect on passengers at a news conference on Monday. Gloria
Guevara, the tourism secretary, said that she did not expect the Mexicana shutdown to reduce the
ministry’s forecast for the number of tourists visiting Mexico this year. Several foreign airlines were
already planning new routes to Mexico, she said.
But for many Mexicans who had bought Mexicana tickets for their vacations, the outlook is not as clear.
More than 4,000 people wrote to a forum set up by El Universal, a Mexico City daily, to complain, many
of them offering tales of ruined vacations and unanswered telephone calls.

AEROMEXICO: NO HELP FOR MEXICANA
The Airline Says it Will Not Invest or Buy its Former Competitor
(From The News. September 7, 2010)
Despite speculation to the contrary, Grupo Aeroméxico says it is not considering buying or investing in
Nuevo Grupo Aeronáutico, which controls Mexicana de Aviación and its affiliated businesses.
In a press release Monday, Aeroméxico added that “given the new realities facing the national airline
industry,” it is evaluating new opportunities for investment in both international and national flights. The
release also suggests the company had no quick moves planned. Rather, it would wait until there were
firmer rules and regulatory framework governing competitive labor contracts.
For the moment, the company is focusing on strengthening its presence in its current network
destinations, while maintaining the promotions and discounts affecting its current rates and products,
“to make sure our passengers will continue enjoying the confidence and security that has distinguished
our group.”
Earlier Monday, Communication and Transportation Secretary (SCT), Juan Molinar Horcasitas
generated speculation of a collaboration when he did not reject the possibility of Aeroméxico involving
itself in Mexicana’s reorganization.
“With the bankruptcy proceeding we are seeking to attract new investors that can provide capital to
Mexicana. The new holder, Tenedora K, is willing to invest in Mexicana if it is possible to restructure the
company, and it will accept new partners that provide fresh capital,” Molinar added, also stating that the
government will not “rescue” Mexicana by providing a public investment.

MEXICANA GIVEN 185 DAYS TO WORK WITH CREDITORS
If Restructuring Fails for Currently Defunct Airline, Bankruptcy is Imminent
(From The News. September 8, 2010)
The credit protection program, known in Mexico as the “Concurso Mercantil,” issued by Mexicana de
Aviación on August 3 was declared valid by Mexico City Judge Felipe Consuelo Soto on Tuesday.
The approval was due to the company’s state of bankruptcy that does not allow for it to pay off its 15-
billion peso debt as well as 602,000 dollars in rent expenses.
The judge declared a 185-day conciliation period for the credit protection, allowing Mexicana that period

Tuesday, November 02, 2010                                                                                22
of time to reach an official agreement with its creditors and staff, as well as to restructure its
administration and finances.
If Mexicana is unable to do so in the given period, it will have to declare bankruptcy.
According to the settlement, the Communication and Transportation Secretariat (SCT) has five days to
appoint a credit facilitator charged with advising the judge, the company and the creditors, in order to
reach an agreement.
According to sources from Tenedora K, the current owner of the carrier, the SCT has appointed Javier
Christlieb as the credit protection facilitator.
Christlieb, who was the president of the National Chamber of Aero-Transportation (Canaero) until
January 2010, will be in charge of chairing negotiations and preventing strikes by the pilots and flight
attendants’ unions.
The low-cost airlines Click and Link won’t be included in Mexicana’s credit protection, as Justice Felipe
Consuelo Soto rejected the request of the airline’s owners to integrate Mexicana’s subsidiaries into the
process, including Mexicana MRO.
Consuelo said that the creditor protection for these companies should be treated apart from Mexicana’s
case, even if they are controlled by the same firm, “Nuevo Grupo Aeroportuario” (New Airport Group).

SCT ANALYZES MEXICANA CASE
Treviño: Connectivity Problem is the Priority
(From The News. September 9, 2010)
The Communication and Transportation Secretariat (SCT) is analyzing the recommendation of the
Federal Commission of Competition (CFC) to reassign the airport slots that belonged to Mexicana de
Aviación and its subsidiaries, Click, Link and MRO.
In an interview on Wednesday, the SCT Under-Secretary, Humberto Treviño, recognized that although
they are negotiating with the CFC to guarantee competitiveness in the aviation sector and have obeyed
its orders, “we disagree with reassigning slots.”
Treviño explained that it is necessary to consider that not all the airlines have the capacity to
immediately react and offer services.
He said that the priority is to solve the connectivity problem with several destinations, and Mexicana
has rights that the SCT is not willing to violate.
Treviño said that around five or six investors have talked to SCT Secretary Juan Francisco Molinar
Horcasitas, union organizations, the Labor Secretariat and Tenedora K, in order to express their
interest in investing in Mexicana.
However, “in order to complete any project they must know the state of Mexicana’s balance sheet,
business plans and investment needs. As soon as this information is available, it is possible that
investors will form a group.”
Treviño said that beginning yesterday, José Gerardo Badín Cherit and Javier Christlieb were the official
facilitator and administrator, respectively, of Mexicana de Aviación’s credit protection program.
Regarding Badín, Treviño said that the SCT took into account his experience with the Federal Credit
Protection Institute and in other situations where he was the facilitator and liquidator.
In Christlieb’s case, Treviño said he is an experienced professional in the sector and knows the history
of Mexicana, which will help to speed up the process.

MEXICANA AIRLINES’ INSOLVENCY PETITION
ACCEPTED IN CONCILIARY PHASE
This ruling and the actions stemming from it will no doubt lay the foundations for the airline’s
future
(From Mexicana.com. September 10, 2010)
Mexicana Airlines (CMA) today announced that the Concurso Mercantil petition, initially filed on August
2, 2010, was accepted by the 11th Civil District Judge on Tuesday, September 7.
The objective of the Concurso Mercantil ―as insolvency proceedings are referred to in Mexican law―
is to restructure costs and secure financial viability. Tuesday’s decision marked the beginning of the
conciliation phase and, pursuant to the procedures stipulated by law and at the proposal of the

Tuesday, November 02, 2010                                                                            23
Department of Communications and Transportation, the judge approved the appointment of Mr. Javier
Christlieb Morales as administrator of Mexicana Airlines. Mr. Christlieb Morales assumed his duties on
September 8.
Also at the behest of the Department of Communications and Transportation, in its capacity as the
granting authority, Mr. Gerardo Badín Cherit’s appointment as arbitrator was approved by the judge.
Mr. Badin Cherit will be responsible for facilitating restructuring agreements between the company and
its creditors.
This ruling and the actions stemming from it will no doubt lay the foundations for the future of Mexicana
Airlines.




Tuesday, November 02, 2010                                                                             24
Monthly Report – TravelPIE – México                                           CTO Mexico – October 2010
Fast Facts:

  Highlight 1:
  The 2010 – 2011 ski season promotion began this month. Travel agencies were contacted in order to book
  product training seminars, deliver brochures and find out if they have contact information required to package
  Colorado products. On the other hand, TravelPIE attended Vail Resorts luncheon for travel agents in Mexico
  city in order to follow-up on what’s new for the season and screen / identify travel agents needs and interests.

  Highlight 2:
  Iconn Travel (Bancomer travel agency) sent the traffic report the Colorado article featured in their “Fall special
edition” had among Bancomer’s credit card holders. Since a summer co-op has been authorized with them, we
are keeping record of the impact and strategies their website has among the bank’s credit card holders. With the
result, we will build the most profitable co-op to position Colorado summer products among their clients.
Regarding ski product, we are also pushing for them to sell packages to different resorts in Colorado.

Public Relations
     • Numbers of Media Calls/Follow up Calls: 30
     • Press Release sent: 1
     • Attended: 1

      •   Total Monthly Media Equivalency compared Year to Date in US Dollars:
          $ 450,684.39 (October 2009 $54,239.95 USD = 396,444.44 USD more this year)
      •   Total Cumulative Equivalency compared Year to Date in In-Market currency:
          $16,015,115.96 MXP

      •   TravelPIE PR Placed Monthly Media Equivalency compared Year to Date in US Dollars:
          $ 450,684.39 (October 2009 $42,675.8 USD = 408,008.59 USD more this year)
      •   TravelPIE PR Placed Cumulative Equivalency compared Year to Date in In-Market currency:
          $15,857,989.96 MXP

Travel Trade
     • Number of Sales Calls: 15
     • Number of Trade Inquiries: 2
     • Attended: 2

Current Running Co-Ops

Consumer Fulfilment
    • Number of Consumer Inquiries: 3
    • Distribution of Materials: 3


US Dollar Exchange Rate (September) 12.43
   • Compared to 13.22 in October 2009

Online Activities:
 CTO Official Website Visitors (Mexico’s version of Colorado.com): 1,385 visits
 Website Visitors from Mexico: 386




Friday, October 29, 2010                                                                                               1
        TravelPIE – Monthly Report
        Public Relations
        Total Media Equivalency Clipping Evaluation Report – TravelPIE
                                                                                                  Evaluation (in
                                                Date of                          Circulation                       Evaluation in USD –
  Publication                 Title                                 Journalist                       market                              Source                  Details
                                                Publish                           and Type                           Ad Equivalency
                                                                                                    currency)
                                                                                                                                                  The 10 minutes interview talks about
De viaje, Reforma                                             Sergio Zepeda de    Newspaper                                                       Denver’s cultural proposal as well as
                             Denver             October                                              30,000             9,654.06          PFG
   newspaper                                                        Alba          radio show                                                      neighborhoods like LoDo, Highlands
                                                                                                                                                  and Cherry Creek.
                                                                                                                                                  The story talks about the Great
                          Festival de la      September                                                                                           American Beer Festival at Denver as
Ocho Columnas                                                  Vicente Ochoa     Newspaper           25,000             8,045.05          PR
                       cerveza en Denver        26th                                                                                              well as the micro breweries in the
                                                                                                                                                  city.
                                                                                                                                                  The article talks about The
                        The Broadmoor,                                            Magazine                                                        Broadmoor as the month’s
  Bleu & Blanc                                  October         Lilliana Maya                        155,864           50,157.36          PFG
                        Colorado Springs                                           43, 250                                                        recommendation to stay at while in
                                                                                                                                                  Colorado.
                         Gorilla run en                                            Website                                                        The story talks about Denver and
Aeroméxico.com                                  October        Mariela Gómez                         35,828             2,768.78          PFG
                           Denver                                                   7,500                                                         how to explore it riding a bike.
                       Exposición del Rey
                                                                                   Website                                                        The story talks about the King Tut
Aeroméxico.com         Tut en el Museo de       October        Mariela Gómez                         35,828             2,768.78          PFG
                                                                                    7,500                                                         exhibit at the DAM
                         Arte de Denver
                                                                                                                                                  The story talks about Denver’s
                       Microcerveceríasen                                          Website                                                        microbreweries, makes special
Aeroméxico.com                                  October        Mariela Gómez                         35,828             2,768.78          PFG
                             Denver                                                 7,500                                                         mention of Wynkoop as well as the
                                                                                                                                                  breweries tour.
                                                                                                                                                  The story talks about the Red Rocks
                                                                                   Website
Aeroméxico.com             Red Rocks            October        Mariela Gómez                         35,828             2,768.78          PFG     amphitheater and the K5 competion
                                                                                    7,500
                                                                                                                                                  that took place in this location.
                                                                                                                                                  The cover story talks about Vail as
De viaje, Reforma       Vail. Y se hizo la                                        Newspaper                                                       the most popular village of Vail
                                              October 24th    Carmen Gonzalez                       1,548,970          123,917.6          PFG
   newspaper                  nieve                                              travel section                                                   Resorts and describes the luxury
                                                                                                                                                  accommodation available for visitors.
                                                                                                                                                  The interview talks about Denver’s
 De viaje, Mural        Vail. Y se hizo la                                        Newspaper                                                       cultural proposal as well as
                                             October 24th     Carmen Gonzalez                       1,548,970           123,917.6         PFG
  newspaper                   nieve                                              travel section                                                   neighborhoods like LoDo, Highlands
                                                                                                                                                  and Cherry Creek.
                                                                                                                                                  The interview talks about Denver’s
De viaje, El Norte      Vail. Y se hizo la                                        Newspaper                                                       cultural proposal as well as
                                             October 24th     Carmen Gonzalez                       1,548,970           123,917.6         PFG
   newspaper                  nieve                                              travel section                                                   neighborhoods like LoDo, Highlands
                                                                                                                                                  and Cherry Creek.

        Source Key –

        PFI or PFG         Press FAM result (individual or group)
        PR                 Result of press release
        PC                 Result of press conference/media event
        P                  Result of the promotion
        GA                 Result of general PR activity



        Friday, October 29, 2010
        NA                 Not Assisted by CTO

                                                                                                                                                                           2
Total Placed Media Equivalency Chart Report – Generated by TravelPIE

Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $23,880.7                            $23,880.7
  August 2010     $300,393.27                          $324,273.97
 September 2010   $494,893.96                          $819,167.93
  October 2010    $450,684.39                          $1,269,852.32
 November 2010
 December 2010
  January 2011
  February 2011
   March 2011
    April 2011
    May 2011
   June 2011

     TOTAL        $1,269,852.32                        $1,269,852.32

Total Media Equivalency Chart Report – Generated from all sources on Colorado
Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $36,430.7                            $36,430.7
  August 2010     $300,393.27                          $336,823.97
 September 2010   $494,893.96                          $831,717.93
  October 2010    $450,684.39                          $1,282,402.32
 November 2010
 December 2010
  January 2011
  February 2011
   March 2011
    April 2011
    May 2011
   June 2011

     TOTAL        $1,282,402.32                        $1,282,402.32




Friday, October 29, 2010                                                          3
Press Releases:
A “Denver Big Air” press release was written and distributed to our media database.

B-Roll, Video and Photo Usage:
Received photo requests from Excelsior newspaper, Bleu & Blanc, Aeroméxico, Indie Food, Terra.com and GQ magazines.

Update of Media Calls/Press Contacts:
          th
October 4 – Mariana Mendoza – Forward magazine
Followed up on our pending appointment. She was abroad most of the month and agreed to call back when returning.
           th
October 7 – Mildred Ramo – Coeditor – Bon Voyage, Excelsior newspaper travel section
Followed-up on the press release sent. She confirmed publication will be until November.
           th        th   th
October 6 , 7 , 8 – Luz América Alvarado – Editor – Indie Food magazine
Met for lunch to discuss topics she can publish in her magazine and go through the publication’s media profile. A note on Colorado breweries will
be published at some point in November.

October (several times during the month) – Sergio Zepeda de Alba – Journalist – De viaje, Reforma newspaper travel section
Emailed to inform he was interviewed in the newspaper’s radio show on his trip to Colorado and sent a link to download the podcast.

October (several times during the month) – Hilda Dominguez – Coeditor – Bleu & Blanc magazine
Kept in touch to follow-up on her visit to Colorado and verify if they needed further information to write their stories.

October (several times during the month) – Mariela Gómez – Journalist – GQ magazine
Kept in touch to help her get images and other material for the notes she has published in Aeroméxico.com as a result of her attendance to the
Fall fam trip. We also assisted her on gathering winter material to publish a story on Aspen and Vail winter vacations in GQ magazine.
                th
October 20 – Armando Gallegos – Journalist – Gozipa Agencia de Comunicaciones
Emailed us to ask if CTO would be interested on hosting an individual FAM trip for a Mexican celebrity. According to what was discussed at the
IPC meeting Marco Aguilar attended, we didn’t take this offer.
           st
October 21 – Raúl Sayrols – Owner – Editorial Lyrsa
Emailed to request a meeting to discuss possible projects with his editorial company to promote Colorado 2010-2011 ski season. We agreed on
meeting at the beginning of November.




Friday, October 29, 2010                                                                                                                            4
             Confirmed Individual Media FAM Trips
                                             Attending         Circulation of                                                                                    Date Article
Date of FAM Trip        Publication                                                      Profile                      Theme               Destinations                                PR Value $
                                             Journalist         Publication                                                                                       Appeared
                                                                                   Mexicana Airline’s
                                                                                   business class in-
                                                                                                                                                               September - ESPN
                                                                                    flight magazine.                                  Denver, Colorado
                                                                                                                                                                story on IVESCO    82,667.73 USD
                                                                                       ESPN is the            National Parks,         Springs, Manitou
                      Elite magazine,                           Elite – 10,000                                                                                         field       ESPN
                                          Enrique Escalona                         Spanish version of        Sports scene and         Springs, Durango,
      July           ESPN en español,                          ESPN – 80,000                                                                                   September – Mesa
                                           David Paniagua                         the US magazine, it       urban experience in       Mesa Verde,
                      LaGiraffe.com                           LaGiraffe – 8,000                                                                                      Verde in      7,924.60
                                                                                   publishes its own              Denver              Durango - Silverton
                                                                                                                                                                  LaGiraffe.com    LaGiraffe.com
                                                                                  contents and only a                                 train
                                                                                  small % is from the
                                                                                       US version.

             Group Media:
                                             Attending        Circulation of                                                                                       Date Article
Date of FAM Trip       Publication                                                             Profile                        Theme           Destinations
                                             Journalist        Publication                                                                                          Appeared           PR Value $
                                                                                                                                              Denver, Vail,
                                                                                  Mexico’s most important high-
                                                                                                                                             Aspen, Durango,
                       Bleu & Blanc       Hilda Dominguez         43,800          end travel magazine. It                                                                          28,680 USD per
September 9 – 15                                                                                                                               Mesa Verde,             TBD
                        magazine             (Co-editor)          monthly         celebrated its 10th anniversary                                                                  page
                                                                                                                                             Black Canyon of
                                                                                  this month.
                                                                                                                                              the Gunnison
                                                                                                                                              Denver, Vail,
                                                                                  Mexico’s most important high-
                                                                                                                                             Aspen, Durango,
                       Bleu & Blanc      Carlos García Mora                       end travel magazine. It                                                                          28,680 USD per
September 9 – 15                                                  43,800                                                                       Mesa Verde,             TBD
                        magazine           (photographer)                         celebrated its 10th anniversary                                                                  page
                                                                                                                                             Black Canyon of
                                                                                  this month.
                                                                                                                                              the Gunnison
                                                                                                                                              Denver, Vail,
                                                                                  Mexican edition of the
                                                                                                                                             Aspen, Durango,
                                                                  70,560          renowned US magazine. The                                                                        37,322.83 USD per
September 9 – 15             GQ            Mariela Gomez                                                                                       Mesa Verde,             TBD
                                                                  monthly         most popular men’s magazine                                                                      page
                                                                                                                                             Black Canyon of
                                                                                  in México.
                                                                                                                                              the Gunnison
                                                                                  Mexico’s most prestigious
                                                                                                                                              Denver, Vail,
                                                                                  newspaper. It also publishes
                                                                                                                        Denver cultural      Aspen, Durango,
                     De viaje, Reforma   Sergio Zepeda de         145,963         “Mural” in Guadalajara and “El
September 9 – 15                                                                                                        scene and five         Mesa Verde,        September 26th   123,917.6 USD
                        newspaper         Alba (journalist)        weekly         Norte” in Monterrey. Contents
                                                                                                                        neighbourhoods       Black Canyon of
                                                                                  are shared in these three
                                                                                                                                              the Gunnison
                                                                                  editions.
                                                                                  Mexico’s most prestigious
                                                                                                                                              Denver, Vail,
                                                                                  newspaper. It also publishes
                                                                                                                                             Aspen, Durango,
                     De viaje, Reforma   Yolanda Garduño          145,963         “Mural” in Guadalajara and “El                                                                   30,000 USD per
September 9 – 15                                                                                                                               Mesa Verde,             TBD
                        newspaper         (photographer)           weekly         Norte” in Monterrey. Contents                                                                    page
                                                                                                                                             Black Canyon of
                                                                                  are shared in these three
                                                                                                                                              the Gunnison
                                                                                  editions.
                                                                                  High-end magazine with a                                    Denver, Vail,
                                                                                  monthly print-run of 10,000                                Aspen, Durango,
                                           Liliana García         10,000                                                                                                           24,000 USD per
September 9 – 15        La Revista                                                copies. Half of it is distributed                            Mesa Verde,             TBD
                                                Brena             monthly                                                                                                          page
                                                                                  to a VIP database                                          Black Canyon of
                                                                                  (personalized copies)                                       the Gunnison

             Media Events:



             Friday, October 29, 2010
             Lilliana Maya attended an editorial board meeting at Reforma newspaper’s travel section in representation of CTO.
                                                                                                                                                                                        5
Travel Trade Promotions

Current Co-ops:
Company        Details                                       Dates                Partners   On-Line OR Off-Line         Results


Tac Tours      OFFLINE CAMPAIGN – CONSUMER                    Ski season 201 -                          Off line
                                                                    2011

Servicios de   OFFLINE CAMPAIGN – CONSUMER                    Ski season 201 -                          Off line
viaje 365                                                           2011

Holam          OFFLINE CAMPAIGN – CONSUMER                    Ski season 201 -                          Online
                                                                    2011


Trade Contacts/Sales Calls/Sales Leads:

•   Iconn Travel – Followed up with Alejandro Lemus, Sales Director, on the results the Colorado article, featured in their Fall digital magazine
    had. He sent statistics report and will send a sales report further ahead to keep track on their clients preferences / interests.

•   Holam International – Met with Moises Braverman to discuss campaigns to promote the 2010-2011 ski season.

•   Abiega Operadora – Had product training seminars at their offices, delivered brochures, maps and information on ski season offers.

•   Tac Tours – Spoke with Jaime Fast to go through the ads to promote winter’s ski season. The publication dates and media have been sent
    and we are currently waiting for the ad so that CTO can verify it and approve it before publishing.

•   Servicios de Viaje 365 - Spoke with David Aguirre to start working on the winter co-op project

•   Estudios en el Extranjero – Maricarmen Escobedo, from a travel agency in San Luis Potosi, requested our support to book a ski vacation in
    Durango for a client. Further information was requested in order to properly fulfill her client’s interests and we are currently waiting for her
    feedback.

•   Almeida Viajes - Ivan Orduño – Requested support to get brochures and information on affordable ski resorts for a group of college kids that
    are interested on skiing and snow boarding. General information was sent on Colorado’s 26 ski resorts and brochures were mailed to his
    office.

Travel Trade Events, Trainings, Seminars, Workshops:
Abiega Operadora – winter product training
Ofertur – winter product training and support to review ski.com contract
Vail Resorts trade luncheon



Friday, October 29, 2010
Trade FAMS (Group or Individual):

                                                                                                                                                       6
 Date of FAM                                                                                                                       Participating
                        Company                 Attending personnel            Title                Profile / Current product                                Results
     Trip                                                                                                                          Destinations
                                                                                                                                  Denver, Grand
                                                                                                                                     Junction,
                                                                                                   Summer co-op with them to
                                                                                                                                 Colorado Springs,
 June 7th – 13th   Servicios de viaje 365          David Aguirre        Managing Director          promote 2 Colorado summer
                                                                                                                                    Glenwood
                                                                                                           packages
                                                                                                                                     Springs,
                                                                                                                                   Breckenridge
                                                                                                                                  Denver, Grand
                                                                                                                                     Junction,
                                                                                                                                 Colorado Springs,
 June 7th – 13th     Viajes Coaplaza                Oscar Giron           Product Director
                                                                                                                                    Glenwood
                                                                                                                                     Springs,
                                                                                                                                   Breckenridge
                                                                                                                                  Denver, Grand
                                                                                                                                     Junction,
                                                                                                                                 Colorado Springs,
 June 7th – 13th       Iconn Travel             Luis Guillermo Viquez   Marketing Manager
                                                                                                                                    Glenwood
                                                                                                                                     Springs,
                                                                                                                                   Breckenridge
                                                                                                                                  Denver, Grand
                                                                                                                                     Junction,
                                                                                                   Summer co-op with them to
                                                                                                                                 Colorado Springs,
 June 7th – 13th        Julia Tours                 Arleth Sevilla      Commercial Manager         promote 2 Colorado summer
                                                                                                                                    Glenwood
                                                                                                           packages
                                                                                                                                     Springs,
                                                                                                                                   Breckenridge
                                                                                                                                  Denver, Grand
                                                                                                                                     Junction,
                                                                                                   Most important ski-packages   Colorado Springs,
 June 7th – 13th    Holam International           Sandra Ginsberg        Sales Department
                                                                                                    wholesaler in Mexico city       Glenwood
                                                                                                                                     Springs,
                                                                                                                                   Breckenridge



Travel Tradeshows:

Consumer Promotions

Consumer-Related Programs (Consumer shows/Consumer leads): 0

Consumer Inquires without brochure fulfilment:

Distribution of Materials for corresponding Month and Cumulative Amount to date:

Month                                                  www.colorado.com                      Other – telephone/ email request                        Total
July 2010                                   0                                          2                                              2
August 2010
September 2010



Friday, October 29, 2010
October 2010

                                                                                                                                                                       7
November 2010
December 2010
January 2011
February 2011
March 2011
April 2011
May 2011
June 2011
Total

                                                    Colorado Fulfilment Stats 2009
Total fulfilment graph
                                                      200




                                 No of packs sent
                                                      150
                                                      100
                                                       50
                                                        0
                                                            Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

                                                            Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
                           Packs (Colorado.com               67
                           requests)
                           Trade packs (phone                75
                           requests)
                           Consumer packs (phone              3
                           requests)




Friday, October 29, 2010                                                                                8
Mexico News Highlights Provided by TravelPIE
 October 2010 


                                        MARKET INTELLIGENCE

                                                     Economy
                                 Jan         Feb        March         April        May         June

Exchange Rate (U.S)             12.97        12.87       12.35        12.28       12.68        12.90

Consumer Confidence
                                 82.1        80.6         81.8        82.5         84.6        87.5
Index


                                 July      August        Sept       October        Nov         Dec

Exchange Rate (U.S)             13.35        13.26       12.82        12.43

Consumer Confidence
                                 87.4
Index
Source: Banco de Mexico; National Statistics, Geography and Information Institute (INEGI); Oanda.com




MEXICO BOOM BIGGEST IN AMERICAS AS DRUG CRIMINALS LOSE TO NAFTA
(From Bloomberg News. October 4, 2010)
Mexico’s stocks, bonds and currency are beating the U.S. and Brazil for the first time since 2002, data
compiled by Bloomberg show. For all of the killings of elected officials at war with the criminal drug
gangs, there is no stopping the Mexican investment boom thanks to the 16-year-old trade agreement
that is buoying Latin America’s second-largest economy.
Dollar debt issued by Mexico is returning 16 percent in 2010, more than the 14 percent for Brazil bonds
and 8.8 percent for U.S. Treasuries, according to JPMorgan Chase & Co. and Bank of America Corp.
The IPC stock index is up 5.3 percent, compared with a 2.8 percent advance for the Standard & Poor’s
500 and 2.4 percent gain for the Bovespa. The peso rallied 4.5 percent against the dollar this year,
surpassing the Brazilian real’s 3.2 percent increase.
“The reality is that you will continue to see companies making long-term investments,” said Guillermo
Osses, who helps oversee $50 billion in emerging-market assets at Newport Beach, California-based
Pacific Investment Management Co., the world’s biggest bond fund manager. “We still have significant
exposure in Mexico.”
The North American Free Trade Agreement that took effect in 1994 continues to lure investors even as
Mexico confronts its worst-ever drug violence. The treaty signed with the U.S. and Canada caused

Friday, October 29, 2010                                                                               9
overseas sales to quadruple. In the first seven months of this year, Mexico’s share of U.S. exports rose
while China’s fell, according to the U.S. Commerce Department. Gross domestic product expanded 7.6
percent in the second quarter, the most since 1998, boosted by U.S. demand for everything from
refrigerators to cars.

Growing Partnership
Investors poured $2 billion into Mexican equities in the 12 months to July, reversing a $470 million net
withdrawal in the year-earlier period, according to EPFR Global, a research firm in Cambridge,
Massachusetts.
The IPC index will climb 6.5 percent in the next year, compared with 15 percent for the Bovespa,
according to Bank of America forecasts on Sept. 16. The S&P 500 will gain 4.3 percent by the end of
this year, according to the average estimate of 11 strategists surveyed by Bloomberg.
The violence is negative “from a human perspective,” said Pimco’s Osses. “But from an investor
perspective it’s not that big of a problem.”
The peso is forecast to climb 2.3 percent by the end of next year, compared with a 0.6 percent drop for
the real, according to the median estimate of analysts surveyed by Bloomberg.

Tourism Revenue
Mexico’s international tourism revenue fell 15 percent last year, the first decline in a decade, as swine
flu drove down spending by travelers to $11.3 billion. While spending by visitors rose 6.8 percent in the
first six months of the year to $6.5 billion from the same period in 2009, the amount is still down 11
percent from the first six months of 2008.
“If tourism is affected, it’s not so much from the drug violence but from issues here in the U.S., such as
the economic crisis,” said Francisco Alzuru, who helps manage about $200 million in emerging-market
assets at Hansberger Global Investors in Fort Lauderdale, Florida. “The impact of the swine flu was a
major one.”

Biggest Threat
Fifty-seven percent of business executives say the drug war is the biggest threat to the economy in
Mexico, Latin America’s second-largest after Brazil, according to a July survey published by Deloitte
Touche Tohmatsu, up from 49 percent in March and 22 percent in December 2009. Finance Minister
Ernesto Cordero said Sept. 1 that violence from organized crime is shaving 1.2 percentage points off
economic output a year.
“The federal government reiterates that it will continue working for the security of its citizens with all the
state resources at its reach,” Calderon said in an e-mailed statement on Sept. 8.

Expanding Economy
The International Monetary Fund forecasts Mexico’s economy will expand 4.5 percent this year after
shrinking 6.5 percent in 2009, the biggest rebound among the world’s largest nations after Russia.
Sales at retailers in the U.S., Mexico’s largest trading partner, climbed in August for a second
consecutive month, allaying concern the world’s largest economy will stumble in the second half.
Mexican production of cars and light trucks rose 53 percent in August from the same month a year
earlier, the nation’s Automobile Industry Association said on Sept. 8 in a statement distributed in
Mexico City. Exports increased 58.1 percent from a year ago to 175,904 cars and light trucks.
Mexico’s exports to the U.S. gained market share from China during the global financial crisis as
companies benefited from lower shipping costs from a border country, said Luis De la Calle, a former
Mexican negotiator for Nafta.

MEXICO SELLS $1 BILLION CENTURY BOND
(From the Wall Street Journal. October 5, 2010)
In one of the boldest moves by an emerging-market sovereign entity this year, Mexico raised $1 billion
in the largest-ever 100-year bond offer Tuesday, offering investors a yield of 6.1%.



Friday, October 29, 2010                                                                                    10
Mexico's sale is the latest sign of the euphoria over emerging-market debt that has prompted a surge in
new debt issuance this year. Governments and companies around the developing world have been
eager to tap international capital markets to take advantage of reduced borrowing costs and ample
investor interest at a time when fixed-income assets in much of the developed world are offering near-
record-lows.

THE MEXICAN STOCK MARKET IS GOING GANGBUSTERS THIS YEAR DESPITE A DRUG WAR
THAT HAS CLAIMED MORE THAN 28,000 LIVES
(From cnn.com. October 7, 2010)
The Mexican stock market's IPC Index has increased 6.7% year-to-date, outpacing the Dow Jones
industrial average's 5% gain.
This is one of the factors that prompted John Lomax, emerging markets equity analyst for HSBC in
London, to upgrade Mexico to an "overweight" rating, in other words: "buy."
"We saw very strong growth in Mexico for the first half of the year," said Lomax, noting that the export-
driven economy has bounced back from its dismal performance in 2009.
"Clearly the drug related issues are a problem for Mexico," he said. "Not withstanding that, the Mexican
economy has been performing in a normal and familiar way."
This means that the Mexican economy is tracking the U.S., sharing many of the same benefits and
problems.
The impact of drug violence -- which has been centered on cities near the border, like Ciudad Juarez,
Tijuana and Monterrey - has had a mixed impact on the economy. Lomax said the violence has been
"geographically concentrated" to certain cities, preventing widespread damage.
"This is an issue for Mexico, but that has not stood in the way of the economy having a normal cyclical
recovery," he said.
Mexico's strong performance this year is in stark contrast to its GDP contraction of 6.9% in 2009
prompting Alonso Cervera, emerging markets analyst for Credit Suisse in New York, to raise his GDP
forecast to a 4.7% gain in 2010.
But Cervera said that violence in Mexico presents a "clear threat" to the economy.
"It is true that most of the killings take place in certain locations, but I feel that the insecurity created by
the killings and the extortions and kidnappings are having an impact on private consumer activity and
private business investments," he said.
In a recent note to analysts, Cervera wrote, "It is impossible to estimate the cost that these problems
have inflicted on economic activity - we are just in the process of finding that out. But clearly the cost of
doing business in Mexico has risen."
Much is riding on the efforts of President Calderon to win the drug war that erupted when he took office
in 2006. Since then, parts of the country have become a battle zone between cartels and federal police.
Assassinations of public officials have become commonplace.


                                      Outbound Travel Market
General


Long haul



                                     Competitive Environment
Competitor Spend/Activity



Friday, October 29, 2010                                                                                     11
Routes

AVIANCA INCREASES FREQUENCY BETWEEN MEXICO AND COLOMBIA
(October 14, 2010)
Avianca of Colombia is now able to offer passengers three daily flights between Bogota and Mexico
City.
Avianca now operates the largest number of non-stop direct flights between the two capitals, with 21
frequencies and approximately 3,000 seats each week.
With this new schedule, travellers departing from Mexico City have the ability to connect quickly and
efficiently onto flights to the main cities of Latin America including Caracas, Lima, Quito, Guayaquil,
Sao Paulo, Santiago de Chile and Buenos Aires. There are also good connections to the regional cities
of Colombia, through multiple daily flights to destinations such as Medellin, Cali and Cartagena.
The flights are operated by modern Airbus A-320 and A319, with 150 (12 Business Class and 138
Economy Class) and 120 passengers (12 Business Class and 108 Tourist Class), respectively.
All aircraft have sophisticated in-flight entertainment systems including: touch screen individual screens
on every seat with USB and IPOD connections in Business Class.



                                            Consumer Trends
General


Lifestyle



Socio Demographic



Internet

                                            Travel Trade Trends

Travel Agents


Tour Operators


Airlines

MEXICAN GOVERNMENT: LITTLE CHANCE TO SAVE MEXICANA
(From Just For Airlines. October 8, 2010)
Mexican Labour Minister Javier Lozano said there was little chance of saving grounded airline
Mexicana from liquidation, given the lack of investors coming forward with fresh capital as bankruptcy
procedures continue, reported Dow Jones Newswires.
"There are not many options: either new investors come forward very soon or it's going to go bankrupt,"


Friday, October 29, 2010
Lozano said. "It looks very complicated because of the company's debts," he said.

                                                                                                        12
Bankruptcy proceedings are moving forward "with a slight hope of reaching a new agreement," he
added.
Lozano said that a group of potential investors in Mexicana had pulled out of talks due to a lack of
agreement over labour issues, while adding that the airline's labour unions had participated in good
faith and "done their part".
In the event of the airline's closure, Lozano said he'd make sure workers receive severance pay as
stipulated by Mexican labour law.
Local bank Ixe Grupo Financiero said it was no longer working on Mexicana's restructuring.
In a statement, Ixe said it had informed all the interested parties and government authorities about the
decision.
Legacy carrier Mexicana de Aviacion filed for bankruptcy protection in Mexico and the U.S. in early
August and then stopped operating later in the month, along with its two domestic subsidiaries,
MexicanaClick and MexicanaLink.

DELTA TO SERVE MEXICO CITY FROM MEMPHIS
(October 14, 2010)
Delta Air Lines today announced it is adding a sixth international destination from its hub at Memphis
International Airport with a new weekly flight to Mexico City beginning Jan. 8, 2011.
The new flight fulfills a key goal of Memphis business leaders, which have long requested new service
to Mexico’s capital city to boost trade ties between the Mid-South and Mexico.
The new Mexico City flight will operate once weekly, on Saturdays, with 124-seat Airbus A319 aircraft.
In addition to Mexico City, other international destinations served by Delta from Memphis include year-
round, daily flights to Amsterdam and Toronto and seasonal flights to Cancun, Cozumel and Montego
Bay.

UNITED-CONTINENTAL ANNOUNCE NEW U.S.-MEXICO SERVICES
(From PRNewswire. October 14, 2010)
United Continental Holdings, Inc. today announced Continental Airlines and United Airlines will boost
flights between the U.S. and Mexico where the carriers provide the leading network among U.S.
airlines.
The service changes are consistent with the airlines' previously announced capacity guidance.
"The new flights complement our industry-leading service to Mexico," said Jim Compton, executive vice
president and chief revenue officer of United Continental Holdings, Inc. "With our expanded global
network, we are focusing on linking together our key markets to improve travel options for our
customers."
Continental Airlines will launch daily nonstop service between Los Angeles International Airport (LAX)
and Leon/Guanajuato, Mexico (BJX), subject to Mexican government approval, beginning Nov. 1. The
daily service will be operated with a Boeing 737-500 aircraft, with seating for 114 customers (eight in
first class and 106 in economy)
No other carrier offers more departures from the U.S. to Leon/Guanajuato, and the new service from
LAX complements Continental's existing service to Leon/Guanajuato from Houston. The airport serves
the cities of Leon, known for its leather goods and shoe production; and Guanajuato, a UNESCO World
Heritage site characterized by winding cobblestone streets, colonial architecture and historic sites, and
home of the International Cervantes Festival.

UNITED-CONTINENTAL, DELTA ADDING MEXICO FLIGHTS
(From Travel Weekly. October 20, 2010)
In the wake of Mexicana's shutdown, several U.S. carriers are expanding in Mexico, including the newly
merged Continental Airlines and United Airlines.

Continental is scheduled to start daily nonstop service between Los Angeles and Leon/Guanajuato,
subject to Mexican government approval, Nov. 1. The flights, using Boeing 737s, serves the airport that
is the closest to two colonial cities, Guanajuato and San Miguel de Allende; the latter is a popular


Friday, October 29, 2010                                                                               13
second home and snowbird destination for Americans. Continental has long served Leon/Guanajuato
from Houston.

Continental also filed for authority to begin once-weekly nonstop service to Cancun from three new
cities: Austin and San Antonio, Texas, and Raleigh-Durham, N.C. The Saturday services would begin
Feb. 19 with Boeing 737s with seating for 124 customers: 12 in first class, 112 in economy. United
applied for authority to place its UA code on Continental-operated flights between these cities.

Continental -- which flies to 30 destinations in Mexico, more than any other airline from the U.S. --
serves Cancun 76 times weekly from its hubs in Houston, Newark and Cleveland. United flies to
Cancun 31 times weekly from Denver, Los Angeles, Chicago, San Francisco and Washington Dulles.

Meanwhile, United is expanding service into Mexico City from its hubs in Chicago, Denver, Los Angeles
and San Francisco. United launched a second daily flight from Los Angeles to Mexico City on Oct. 15
and will add a third daily beginning Jan. 4.

From Chicago, United's current Saturday-only service to Mexico City will become twice-daily beginning
Nov. 4. From San Francisco, daily service to Mexico City becomes twice-daily on Nov. 4. From Denver,
United will offer once-daily service to Mexico City between Dec. 16 and Jan. 3. All flights will be
operated with Airbus A319 and Airbus A320 aircraft.

Meanwhile, Delta plans nonstop Saturday flights from Memphis to Mexico City starting Jan. 8, pending
Mexican government approval. Delta's existing Mexico service consists of seasonal flights to Cancun
and Cozumel.

AIRLINE DEBATE STILL ON
(From The News: October 21, 2010)
The Secretary General of the Pilots Union Association (ASPA), Fernando Perfecto, said Wednesday
that a proposal to create a 150-million U.S. dollar. emergency fund that could save Mexicana de
Aviación (Mexicana) is being discussed in the Chamber of Deputies. However, the Institutional
Revolutionary Party (PRI) Deputy Heliodoro Díaz Escárraga denied that the Chamber of Deputies is
considering such a proposal, because they can’t use the public’s resources to finance the tricks of the
businessmen who diverted Mexicana’s resources into their pockets. Díaz added that the emergency
fund was a proposal made by some deputies from the Labor Party (PT) and the Democratic
Revolutionary Party (PRD) during the discussion to pass the 2011 budget revenue bill, but they never
made a formal proposal to the Treasury and Transportation committees. He recognized that it would be
similar to the Banking Fund for the Protection of Savings (Fobaproa), and this is the reason why
deputies are not willing to cover up for the irresponsibility of those who led Mexicana into bankruptcy.

AEROMEXICO CUTS PREMIER CLASS FARES
(From Travel Weekly. October 27, 2010)
Aeromexico reduced Premier Class rates, by 45% on flights from Chicago to Mexico City and as much
as 39% on Chicago-Guadalajara service, for example.
Also, Premier Class rates are as much as 53% lower on tickets to Mexico City from San Francisco and
a 27% from Houston. In addition, Mexico City-Los Angeles Premier fares are down 14%, and Mexico
City-Phoenix are down 31%.
Meanwhile, Aeromexico partnered with the NH hotel at Mexico City Airport/T2 (Terminal 2) to provide
services for those flying Premier Class or Aeromexico Plus.
Those passengers may take advantage of a three-hour room stay, so they can rest, take a shower and
refresh from a redeye flight. This offer is valid from 6 a.m. to 8 a.m. for passengers on flights from
Chicago, San Francisco, New York and Los Angeles.
Passengers flying economy class are offered the three-hour stay at a special rate of $85, tax included,
by showing their boarding pass at the NH T2 Airport Hotel.


Friday, October 29, 2010                                                                                14
General



                                           Media Trends
Print – newspapers
Winter topics begin to appear in the travel sections. Reforma newspaper travel section invited Lilliana
Maya to join the 2011 Editorial Board and had the first introductory meeting on October 26th.

Print – magazines
Ski and winter activities special editions were out this month. Bleu & Blanc has a skier on the cover and
already confirmed Colorado will be featured in the North America ski special edition.

Online


Broadcast


General



                                           General News

FLOOD LEAVES FAMILIES IN PERIL
(From the cnn.com. October 2, 2010)
• The Chiapas region of Mexico has been hit hard by massive flooding
• The Red Cross estimates that 100,000 families have been affected by flooding
• Some areas are covered with more than 6 feet of water
• The rain may let up in some areas this weekend
Mexico declared 15 more municipalities disaster areas as the country deals with major flooding caused
by tropical cyclones that recently battered the area, according to state media.
The new announcement Friday makes a total of 35 areas that have been given the disaster
designation, state-run Notimex news agency said.
Video footage shows entire neighborhoods engulfed by water as high as the roofs of homes.
The Red Cross estimated that 100,000 families have been affected by the flooding.
"As the rain and flooding continues, the damage may worsen in some already inundated areas, like
Veracruz which has approximately six-and-a-half feet of water.
In the southern state of Oaxaca, many people are living in makeshift tents on hillsides after landslides
ravaged the area," the Red Cross said in a statement Friday.
Much of the flooding was caused by Tropical Depression Matthew and other weather systems that
dumped heavy rain over eastern and southern Mexico, and Central America in late September.
CNN Meteorologist Ivan Cabrera said some of the hard-hit areas in Mexico may get a break from
significant rain over the weekend as much of the rain has moved to Central America.




Friday, October 29, 2010                                                                                  15
Monthly Report – TravelPIE – México                                        CTO Mexico – November 2010
Fast Facts:

  Highlight 1:
         TravelPIE placed Colorado ski resorts’ stories in the winter special editions of the 3 most important
         newspapers in Mexico (Reforma, El Universal and Excelsior) as well as in the only bimonthly edition of
         the most prestigious upscale travel magazine (Bleu & Blanc) in the country. The latter ensures
         Colorado’s presence in the winter special editions of the most important / influential media.

  Highlight 2:
         TravelPIE assisted Estrella Woods (Telluride Ski Resort) with her media appointments in Mexico city to
         provide an update on the 2010-2011 ski season as well as additional information for their ski & winter
         specials. Follow-up was done to fulfill specific requests and guarantee Telluride’s presence in all the
         publications she met with.

Public Relations
     • Numbers of Media Calls/Follow up Calls: 35
     • Press Release sent: 2
     • Attended: 1

     •   Total Monthly Media Equivalency compared Year to Date in US Dollars:
         $ 80,679.11 (November 2009 $54,239.95 USD = 26,439.16 USD more this year)
     •   Total Cumulative Equivalency compared Year to Date in In-Market currency:
         $ 17,015,536.92 MXP

     •   TravelPIE PR Placed Monthly Media Equivalency compared Year to Date in US Dollars:
         $ 56,162.98 (November 2009 $93,302 USD = 37,139.02 USD less this year)
     •   TravelPIE PR Placed Cumulative Equivalency compared Year to Date in In-Market currency:
         $16,554,410.91 MXP

Travel Trade
     • Number of Sales Calls: 25
     • Number of Trade Inquiries: 6
     • Attended: 2

Current Running Co-Ops
     • Tac Tours (Monterrey) – Printed advertising on travel section of “El Norte” newspaper and “Publitur”
         trade magazine

Consumer Fulfilment
    • Number of Consumer Inquiries: 4
    • Distribution of Materials: 4


US Dollar Exchange Rate (November) 12.40
   • Compared to 13.04 in November 2009

Online Activities:
 CTO Official Website Visitors (Mexico’s version of Colorado.com): 1,813 visits
 Website Visitors from Mexico: 724




Tuesday, November 30, 2010                                                                                         1
        TravelPIE – Monthly Report
        Public Relations


        Total Media Equivalency Clipping Evaluation Report – TravelPIE
                                                                                             Evaluation (in
                                              Date of                       Circulation                       Evaluation in USD –
   Publication              Title                           Journalist                          market                              Source                  Details
                                              Publish                        and Type                           Ad Equivalency
                                                                                               currency)
                                                                              Website                                                        The article describes several
                                             May 5th –
 Aeroméxico.com     Guía Denver familiar                   Mariela Gómez   30,000 monthly       35,828             2,768.78          PFG     activities / places to visit during
                                            November 1st
                                                                                visits                                                       family vacation.
                                                                                                                                             The story talks about the cultural
                                                                              Website
                                             May 13th –                                                                                      scene in Denver and includes the
 Aeroméxico.com     Guía Denver cultural                   Mariela Gómez   30,000 monthly       35,828             2,768.78          PFG
                                            November 1st                                                                                     review of the most important
                                                                                visits
                                                                                                                                             museums in the city.
                                                                               Excelsior
                    Conozca y disfrute el                                     newspaper                                                      The article describes Colorado’s four
   Bon Voyage                               November 7th   Luisa Guzmán                         222,180           17,917.74          PR
                     verde en Colorado                                      travel section                                                   national parks in detail.
                                                                           90,000 weekly
                                                                               Excelsior
                    Conozca y disfrute el                                                                                                    The article describes Colorado’s four
  Excelsior.com                              November      Luisa Guzmán       newspaper         38,400             3,096.77          PR
                     verde en Colorado                                                                                                       national parks in detail.
                                                                                website
                                                                               Excelsior
                                                                                                                                             The note talks about the new
                     Hotel histórico en      November                         newspaper
   Bon Voyage                                              Mildred Ramo                         55,545             4,479.43          GA      Wyndham hotel that will open in
                     Colorado Springs          21st                         travel section
                                                                                                                                             Colorado Springs historic building.
                                                                           90,000 weekly
                                                                               Excelsior                                                     The note talks about the new
                     Hotel histórico en
  Excelsior.com                              November      Mildred Ramo       newspaper         38,400             3,096.77          GA      Wyndham hotel that will open in
                     Colorado Springs
                                                                                website                                                      Colorado Springs historic building.
                    Descubren fósiles de                                     Newspaper,                                                      The article talks about the fossils
                                             November
   El Universal      edad del hielo en                       Notimex       science section      112,800            9,096.77          NA      discovered last month nearby
                                               21st
                         Colorado                                           216,000 daily                                                    Snowmass Village
                    Descubren fósiles de                                                                                                     The article talks about the fossils
                                                                            Newspaper’s
   El Universal      edad del hielo en       November        Notimex                            38,400             3,096.77          NA      discovered last month nearby
                                                                              website
                         Colorado                                                                                                            Snowmass Village
                    Descubren fósiles de                                                                                                     The article talks about the fossils
                                             November                       Newspaper,
    La Crónica       edad del hielo en                       Notimex                            112,800            9,096.77          NA      discovered last month nearby
                                               21st                            daily
                         Colorado                                                                                                            Snowmass Village
                    Descubren fósiles de                                                                                                     The article talks about the fossils
                                                                            Newspaper’s
    La Crónica       edad del hielo en       November        Notimex                            40,000              3,225.8          NA      discovered last month nearby
                                                                              website
                         Colorado                                                                                                            Snowmass Village
                                                                           Travel website
                       6 hoteles con                                                                                                         The story features the Stanley Hotel
    La Giraffe                              October 30th   Ricardo Garza   15,000 monthly       20,000              1,612.9          GA
                        fantasmas                                                                                                            in their Top 6 haunted hotels.
                                                                                visits
                                                                              Reforma
                                                                                                                                             The 4 pages article features The
                      Haunted hotels,                                        newspaper
     De viaje                               October 31st   Cecilia Núñez                        154,560           12,464.51          GA      Stanley Hotel in the category of
                      terror included                                         monthly
                                                                                                                                             haunted properties in the US.
                                                                             magazine
                       8 ejemplos de                                          TV News
                                             November                                                                                        The article features Littleton as one
CNN Expansión.com        ciudades                                -            program           95,680             7,716.12          NA
                                               23rd                                                                                          of 8 entrepreneurial cities.



        Tuesday, November 30, 2010
                      emprendedoras                                            website


                                                                                                                                                                      2
Source Key –
PFI or PFG     Press FAM result (individual or group)
PR             Result of press release
PC             Result of press conference/media event
P              Result of the promotion
GA             Result of general PR activity
NA             Not Assisted by CTO




Tuesday, November 30, 2010                              3
Total Placed Media Equivalency Chart Report – Generated by TravelPIE
Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $23,880.7                            $23,880.7
  August 2010     $300,393.27                          $324,273.97
 September 2010   $494,893.96                          $819,167.93
  October 2010    $450,684.39                          $1,269,852.32
 November 2010    $ 56,162.98                          $ 1,326,015.3
 December 2010
  January 2011
  February 2011
   March 2011
    April 2011
    May 2011
   June 2011

     TOTAL        $ 1,326,015.3                        $ 1,326,015.3

Total Media Equivalency Chart Report – Generated from all sources on Colorado
Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $36,430.7                            $36,430.7
  August 2010     $300,393.27                          $336,823.97
 September 2010   $494,893.96                          $831,717.93
  October 2010    $450,684.39                          $1,282,402.32
 November 2010    $ 80,679.11                          $ 1,363,081.43
 December 2010
  January 2011
  February 2011
   March 2011
    April 2011
    May 2011
   June 2011

     TOTAL        $ 1,363,081.43                       $ 1,363,081.43




Tuesday, November 30, 2010                                                        4
Press Releases:
A “Christmas in Colorado” press release and a “Denver update” were distributed to our media database.

B-Roll, Video and Photo Usage:
Received photo requests from Excelsior newspaper, Bleu & Blanc, Reforma, La Giraffe and GQ magazines.

Update of Media Calls/Press Contacts:
           th
November 3 – Mildred Ramo – Coeditor – Bon Voyage, Excelsior newspaper travel section
                                                                                                                          th
Followed-up on the press release sent. She confirmed publication of Colorado’s National Parks was scheduled for November 7 .

November (several times during the month) – Valerio Negri – Editor – Bleu & Blanc magazine
He requested high resolution images of the ski resorts that will be featured in their special ski article (published in the only bimonthly edition they
have). Many options were provided until fulfilling all the magazine requirements.
              th
November 10 – Raúl Sayrols – Owner – Editorial Lyrsa
                                                                                                   th
Emailed to requests a meeting for Estrella Woods from Telluride Ski Resort. They met on November 17 .

November 11th – Mildred Ramo - Coeditor – Bon Voyage, “Excelsior” newspaper travel section .
Emailed to requests a meeting for Estrella Woods from Telluride Ski Resort. She assigned an interview with one of the section’s journalists for
             th
November 19 .

November 11th – Laura Pardo - Editor – De viaje!, “Reforma” newspaper travel section .
Emailed to requests a meeting for Estrella Woods from Telluride Ski Resort. She assigned Haydé Murakami, Editor of the monthly magazine for
                                                                                                 th
they were working on a ski special edition. Estrella went to the newspaper offices on November 19 .
              th
November 18 – Sergio Zepeda de Alba – Journalist – De viaje, Reforma newspaper travel section
Since he attended the Fall fam trip, last September, the Denver update newsletter was sent to him in case he finds the information useful for
pending publications on the places visited during the trip.
              th
November 18 – Mariela Gómez – Journalist – GQ magazine
Since she attended the Fall fam trip, last September, the Denver update newsletter was sent to her in case he finds the information useful for
pending publications on the places visited during the trip.
              th
November 18 – Hilda Dominguez – Co-Editor – Bleu & Blanc magazine
Since she attended the Fall fam trip, last September, the Denver update newsletter was sent to her in case he finds the information useful for
pending publications on the places visited during the trip.
              th
November 18 – Liliana García Brena – Co-Editor – La Revista magazine
Since she attended the Fall fam trip, last September, the Denver update newsletter was sent to her in case he finds the information useful for
pending publications on the places visited during the trip.




Tuesday, November 30, 2010                                                                                                                                5
             Confirmed Individual Media FAM Trips
                                             Attending         Circulation of                                                                                    Date Article
Date of FAM Trip        Publication                                                      Profile                      Theme               Destinations                                PR Value $
                                             Journalist         Publication                                                                                       Appeared
                                                                                   Mexicana Airline’s
                                                                                   business class in-
                                                                                                                                                               September - ESPN
                                                                                    flight magazine.                                  Denver, Colorado
                                                                                                                                                                story on IVESCO    82,667.73 USD
                                                                                       ESPN is the            National Parks,         Springs, Manitou
                      Elite magazine,                           Elite – 10,000                                                                                         field       ESPN
                                          Enrique Escalona                         Spanish version of        Sports scene and         Springs, Durango,
      July           ESPN en español,                          ESPN – 80,000                                                                                   September – Mesa
                                           David Paniagua                         the US magazine, it       urban experience in       Mesa Verde,
                      LaGiraffe.com                           LaGiraffe – 8,000                                                                                      Verde in      7,924.60
                                                                                   publishes its own              Denver              Durango - Silverton
                                                                                                                                                                  LaGiraffe.com    LaGiraffe.com
                                                                                  contents and only a                                 train
                                                                                  small % is from the
                                                                                       US version.

             Group Media:
                                             Attending        Circulation of                                                                                       Date Article
Date of FAM Trip       Publication                                                             Profile                        Theme           Destinations
                                             Journalist        Publication                                                                                          Appeared           PR Value $
                                                                                                                                              Denver, Vail,
                                                                                  Mexico’s most important high-
                                                                                                                                             Aspen, Durango,
                       Bleu & Blanc       Hilda Dominguez         43,800          end travel magazine. It                                                                          28,680 USD per
September 9 – 15                                                                                                                               Mesa Verde,             TBD
                        magazine             (Co-editor)          monthly         celebrated its 10th anniversary                                                                  page
                                                                                                                                             Black Canyon of
                                                                                  this month.
                                                                                                                                              the Gunnison
                                                                                                                                              Denver, Vail,
                                                                                  Mexico’s most important high-
                                                                                                                                             Aspen, Durango,
                       Bleu & Blanc      Carlos García Mora                       end travel magazine. It                                                                          28,680 USD per
September 9 – 15                                                  43,800                                                                       Mesa Verde,             TBD
                        magazine           (photographer)                         celebrated its 10th anniversary                                                                  page
                                                                                                                                             Black Canyon of
                                                                                  this month.
                                                                                                                                              the Gunnison
                                                                                                                                              Denver, Vail,
                                                                                  Mexican edition of the
                                                                                                                                             Aspen, Durango,
                                                                  70,560          renowned US magazine. The                                                                        37,322.83 USD per
September 9 – 15            GQ             Mariela Gomez                                                                                       Mesa Verde,             TBD
                                                                  monthly         most popular men’s magazine                                                                      page
                                                                                                                                             Black Canyon of
                                                                                  in México.
                                                                                                                                              the Gunnison
                                                                                  Mexico’s most prestigious
                                                                                                                                              Denver, Vail,
                                                                                  newspaper. It also publishes
                                                                                                                        Denver cultural      Aspen, Durango,
                     De viaje, Reforma   Sergio Zepeda de         145,963         “Mural” in Guadalajara and “El
September 9 – 15                                                                                                        scene and five         Mesa Verde,        September 26th   123,917.6 USD
                        newspaper         Alba (journalist)        weekly         Norte” in Monterrey. Contents
                                                                                                                        neighbourhoods       Black Canyon of
                                                                                  are shared in these three
                                                                                                                                              the Gunnison
                                                                                  editions.
                                                                                  Mexico’s most prestigious
                                                                                                                                              Denver, Vail,
                                                                                  newspaper. It also publishes
                                                                                                                                             Aspen, Durango,
                     De viaje, Reforma   Yolanda Garduño          145,963         “Mural” in Guadalajara and “El                                                                   30,000 USD per
September 9 – 15                                                                                                                               Mesa Verde,             TBD
                        newspaper         (photographer)           weekly         Norte” in Monterrey. Contents                                                                    page
                                                                                                                                             Black Canyon of
                                                                                  are shared in these three
                                                                                                                                              the Gunnison
                                                                                  editions.
                                                                                  High-end magazine with a                                    Denver, Vail,
                                                                                  monthly print-run of 10,000                                Aspen, Durango,
                                           Liliana García         10,000                                                                                                           24,000 USD per
September 9 – 15        La Revista                                                copies. Half of it is distributed                            Mesa Verde,             TBD
                                                Brena             monthly                                                                                                          page
                                                                                  to a VIP database                                          Black Canyon of
                                                                                  (personalized copies)                                       the Gunnison




             Tuesday, November 30, 2010                                                                                                                                                 6
Media Events:
Marco Aguilar attended the media interviews Estrella Woods had during her visit to Mexico city, and that were booked by Lilliana
Maya.

Travel Trade Promotions

Current Co-ops:
Company         Details                                     Dates                Partners   On-Line OR Off-Line         Results


Tac Tours       OFFLINE CAMPAIGN – CONSUMER                   Ski season 201 -                         Off line
                                                                    2011

Servicios de    OFFLINE CAMPAIGN – CONSUMER                   Ski season 201 -                         Off line
viaje 365                                                           2011

Holam           OFFLINE CAMPAIGN – CONSUMER                   Ski season 201 -                         Off line
                                                                    2011


Trade Contacts/Sales Calls/Sales Leads:

•   Iconn Travel – Followed up with Guillermo Viquez on what they’re doing to promote the 2010-2011 ski season.
•
•   Holam International – Met with Moises Braverman to follow-up on strategies / campaigns to promote the 2010-2011 ski season.

•   Abiega Operadora – Followed-up on the product training session given last month. Sent several newsletters on special offers at several ski
    resorts in Colorado.

•   Tac Tours – Followe-up on the advertising design. Final approval is due before printing.

•   Servicios de Viaje 365 – Kept communication with their RP agency in order to build an advertising strategy for the 2010-2011 ski season.
    Final proposal hasn’r been achieved.

•   Ofertas Turísticas – Met with Miguel Angel Perez to discuss his interest on selling ski this season. He signed an agreement with ski.com and
    requested product training for his travel agents since this is the first time they sell ski. He has a charter to Las Vegas and San Antonio with
    Aeromexico and, depending on how this ski season goes, he would consider having one to Denver for the 2011-2012 ski season.

•   Cuali Viajes – Erik Ortiz – Followed-up on his experience with ski.com. Detailed feedback will come until next year.

•   Corporate Travel Services – Isabel Parada – Emailed her to find out if she’s selling ski product, where to and who she’s buying from. She
    was interested on working with ski.com but hasn’t signed the agreement.



Tuesday, November 30, 2010                                                                                                                        7
•      Panorama Viajes – Jorge Mackissack – Emailed to find out how’s the ski product doing and if he needs brochures, guides or any other
       material for his clients.

•      Viajaen.com – Natanael Morales - Emailed to find out what sort of ski product he’s interested on selling. He emailed ski.com asking
       information to work with them but hasn’t provided further information on their clients’ needs.

Travel Trade Events, Trainings, Seminars, Workshops:
Abiega Operadora – winter product training
Ofertur – winter product training and support to review ski.com contract
Telluride Ski resort trade breakfast

Trade FAMS (Group or Individual):
    Date of FAM                                                                                                             Participating
                           Company             Attending personnel            Title          Profile / Current product                        Results
        Trip                                                                                                                Destinations
                                                                                                                           Denver, Grand
                                                                                                                              Junction,
                                                                                            Summer co-op with them to
                                                                                                                          Colorado Springs,
    June 7th – 13th   Servicios de viaje 365      David Aguirre        Managing Director    promote 2 Colorado summer
                                                                                                                             Glenwood
                                                                                                    packages
                                                                                                                              Springs,
                                                                                                                            Breckenridge
                                                                                                                           Denver, Grand
                                                                                                                              Junction,
                                                                                                                          Colorado Springs,
    June 7th – 13th     Viajes Coaplaza            Oscar Giron           Product Director
                                                                                                                             Glenwood
                                                                                                                              Springs,
                                                                                                                            Breckenridge
                                                                                                                           Denver, Grand
                                                                                                                              Junction,
                                                                                                                          Colorado Springs,
    June 7th – 13th       Iconn Travel         Luis Guillermo Viquez   Marketing Manager
                                                                                                                             Glenwood
                                                                                                                              Springs,
                                                                                                                            Breckenridge
                                                                                                                           Denver, Grand
                                                                                                                              Junction,
                                                                                            Summer co-op with them to
                                                                                                                          Colorado Springs,
    June 7th – 13th        Julia Tours             Arleth Sevilla      Commercial Manager   promote 2 Colorado summer
                                                                                                                             Glenwood
                                                                                                    packages
                                                                                                                              Springs,
                                                                                                                            Breckenridge
                                                                                                                           Denver, Grand
                                                                                                                              Junction,
                                                                                            Most important ski-packages   Colorado Springs,
    June 7th – 13th    Holam International       Sandra Ginsberg        Sales Department
                                                                                             wholesaler in Mexico city       Glenwood
                                                                                                                              Springs,
                                                                                                                            Breckenridge




Travel Tradeshows:


Tuesday, November 30, 2010
Telluride Ski Resort product training for travel agents.

                                                                                                                                                        8
Consumer Promotions

Consumer-Related Programs (Consumer shows/Consumer leads): 0

Consumer Inquires without brochure fulfilment:

Distribution of Materials for corresponding Month and Cumulative Amount to date:

Month                                                    www.colorado.com              Other – telephone/ email request       Total
July 2010                        0                                                 2                                      2
August 2010
September 2010
October 2010
November 2010
December 2010
January 2011
February 2011
March 2011
April 2011
May 2011
June 2011
Total

                                                             Colorado Fulfilment Stats 2009
Total fulfilment graph
                                                               200
                                      No of packs sent




                                                               150
                                                               100
                                                                50
                                                                 0
                                                                     Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

                                                                     Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
                               Packs (Colorado.com                    67
                               requests)
                               Trade packs (phone                     75
                               requests)
                               Consumer packs (phone                   3
                               requests)




Tuesday, November 30, 2010                                                                                                            9
                                        MARKET INTELLIGENCE

                                                     Economy

                                 Jan         Feb        March         April        May         June

Exchange Rate (U.S)             12.97        12.87       12.35        12.28       12.68        12.90

Consumer Confidence
                                 82.1        80.6         81.8        82.5         84.6        87.5
Index


                                 July      August        Sept       October        Nov         Dec

Exchange Rate (U.S)             13.35        13.26       12.82        12.43

Consumer Confidence
                                 87.4        88.7         91.6        92.05
Index
Source: Banco de Mexico; National Statistics, Geography and Information Institute (INEGI); Oanda.com

MEXICO’S LOWER HOUSE PASSES SPENDING PART OF 2011 BUDGET IN 454 TO 13 VOTE
(From The New York Times. November 15, 2010)
Mexico’s lower house of Congress approved the 2011 budget today with a smaller deficit and a
spending increase of 8.2 percent in nominal terms compared with this year.
The lower house voted 454 to 13 in favor of the spending portion of the budget, which calls for 3.44
trillion pesos ($280 billion) in outlays. Lawmakers modified the total spending of 3.35 trillion pesos
proposed by President Felipe Calderon on Sept. 8.
The bill, which now goes to Calderon for signing, shifts 98.6 billion pesos of spending, Luis Videgaray,
head of the budget committee and member of the Institutional Revolutionary Party, or PRI, told
reporters earlier today.
Roberto Gil, also a member of the lower house budget committee from the National Action Party, or
PAN, said in an interview that the reallocations from the president’s original proposal go mainly to the
agriculture and infrastructure sectors.
The funds were taken mostly from cuts in government operating expenses, deficit increases, a higher
oil price and taxes on cigarettes and energy drinks such as those sold by Red Bull GmbH.

The Congress last month approved the income portion of the budget with an estimated oil price of
$65.40 per barrel and a deficit equal to 0.5 percent of gross domestic product, excluding debt from
state-owned oil company Petroleos Mexicanos, or Pemex. Mexico’s 2010 budget calls for a deficit of
0.7 percent of GDP.

Rebounding Economy
The budget approval comes as Mexico’s economy is rebounding from its worst slump since 1932 on
the back of export growth. The government allayed concerns about the strength of public finances by
approving a wider deficit and tax hikes last year.
The budget plan approved by the lawmakers doesn’t include a reduction in the country’s value-added
tax, which had been sought by the Institutional Revolutionary Party and opposed by Calderon.


Tuesday, November 30, 2010                                                                             10
Mexican exports, buoyed by a 44 percent rise in auto sales abroad, climbed 21 percent in September
from a year earlier. The central bank forecasts the economy will grow 5 percent this year and 3.2
percent to 4.2 percent in 2011. The economy contracted 6.5 percent last year.

CANADA, MEXICO AGREE ON REVISIONS
Legislators Recognize NAFTA Needs Fine Tuning
(From The News)
At the 16th Canada-Mexico Interparliamentary Meeting, legislators from both countries agreed there is
a need to bolster the North American Free Trade Agreement (NAFTA). Since its inception in 1994, it
has presented great advantages in competitiveness for both nations. The legislators also spoke in favor
of a revision to the agreement. Alberto Juraidini Rumilla, an Institutional Revolutionary Party (PRI)
Deputy, said that the NAFTA does not represent a risk for the competitiveness of Mexico because there
is a clause in the document which deals with that issue. Canada and Mexico will work together to
strengthen the region in regards to other economic regions which have a stronger competitiveness
agenda. Canadian legislator, Randy Hoback, pointed out that the NAFTA has been very beneficial for
the region. However, he spoke in favor of revising the document in regard to fields which were not
considered at the time of its creation. “Although the NAFTA was a successful agreement back in ‘94,
there were many things that were not considered. For instance, no progress was made in regard to the
elimination of bureaucracy and certain rules,” added Hoback. In related news, the United Food and
Commercial Workers International Union (UFCW), endorsed the proposal of Canadian Senator Mobina
Jaffer, which would entitle temporary agricultural workers the right to be heard. The Senator said
working conditions for these kinds of workers are inadequate, unsafe and unhealthy.



                                   Outbound Travel Market
General


Long haul



                                  Competitive Environment
Competitor Spend/Activity


Routes




                                       Consumer Trends
General


Lifestyle



Tuesday, November 30, 2010                                                                           11
Socio Demographic



Internet

                                         Travel Trade Trends

Travel Agents


Tour Operators


Airlines

SOUTHWEST TO LAUNCH MEXICO CONNECTIONS IN DECEMBER
(From Travel Weekly. October 28, 2010)
Southwest Airlines said its partnership with Mexican carrier Volaris, announced two years ago, will take
effect Dec. 1.
Starting Nov. 12, Southwest customers can book service from 20 Southwest cities to five Volaris
destinations in Mexico (Cancun, Guadalajara, Morelia, Toluca/Mexico City and Zacatecas). Volaris has
three U.S. gateways, all in California: Los Angeles, San Jose and Oakland.
The booking solution is a "one-of a-kind connecting product," said Bob Jordan, Southwest's executive
vice president of strategy and planning.
When customers make reservations, Southwest said two separate transactions will be made -- one with
Southwest's reservations system and one with Volaris'. The new technology will connect the two
transactions and provide customers with one fare.
Customers will be required to check in with each carrier, but baggage will be transferred by the airlines
and delivered to the final destination, Southwest said.

MEXICANA REVEALS REVIVAL PLAN, HOPES TO RESUME OPERATIONS IN DECEMBER
(From The News. November 22, 2010)

Mexicana Airlines, which ceased operations in August under severe financial distress, said the Mexican
firm Capital PC has agreed to invest more than $150 million to allow the carrier to restart operations
next month.

It said tentative approval of the restructuring plan has been given by relevant Mexican authorities, but
its labor unions and creditors must still approve the deal. The company filed for creditors protection in
both Mexico and the US in August, and had planned to continue operating while it restructured, but was
unable to meet basic fiscal obligations or reach concessionary agreements with its workers.

"The business plan proposed by PC Capital has as its objective to begin operations in mid-December of
this year and projects ordered growth and, above all, sustainability," MX said in a statement. It added
that former Aeromexico CEO Arturo Barahona Oyervides will oversee the restructuring effort.

Dow Jones reported that MX plans to return to the skies operating around 30 Airbus A320 family
aircraft, which would be less than half the size of its mainline fleet at the end of 2009 which included 57
A320 family aircraft as well as other types. Subsidiaries Link and Click reportedly would remain
grounded.

Tuesday, November 30, 2010                                                                               12
FLIGHT ATTENDANTS AND PILOTS LIKE COMPANY’S PROPOSAL
(From The News. November 23, 2010)
The leader of the Flight Attendants Union (ASSA), Lizette Clavel, on Monday confirmed that the ASSA
and the Pilots Union Association (ASPA) had accepted the proposal made by PC Capital to restart
Mexicana de Aviación’s (Mexicana) operations. The offer made by PC Capital establishes that 30
percent of Mexicana workers would be rehired, which means that 375 out of 1,050 flight attendants
would be reintegrated into the airline, Clavel said. Mexicana’s flight attendants and pilots are ready to
sign the creditor agreement that will allow the airline to retake flight in December of this year. The
ASSA and the ASPA accepted the proposal made by PC Capital, which will settle with 100 percent of
the workers, abiding by their contracts, in three installments: in cash, in shares in the company and
promissory notes. Clavel said that the proposal states the airline will restart operations with 28
airplanes. However, this process would be progressive, not immediate. Mexicana would begin flying
seven routes to the United States and about five national routes. Clavel recognized that the floor
personnel is the most numerous, but the largest nominal costs are represented by pilots, followed by
non-union employees, flight attendants and, finally, the floor personnel. In her opinion, the offer made
by the TG Group wasn’t convenient for anyone. Even though it proposed rehiring 85 percent of the
workers, it would also have reduced the income of the personnel. Clavel added that PC Capital
proposed a model of a low-cost airline, but with an administrative and operating plan similar to a
standard commercial airline.


General


                                           Media Trends
Print – newspapers
Winter topics begin to appear in the travel sections. Reforma newspaper travel section invited Lilliana
Maya to join the 2011 Editorial Board and had the first introductory meeting on October 26th.

Print – magazines
Ski and winter activities special editions were out this month. Bleu & Blanc has a skier on the cover and
already confirmed Colorado will be featured in the North America ski special edition.

Online
Colorado content has been placed in social websites such as facebook and twitter. Also, the articles
published in all the newspapers have been available on line during the 30 days after their printed
publication.

Broadcast


General
                                           General News

MEXICAN LAWMAKER: JOBS, EDUCATION KEY TO FIGHTING DRUG WAY
(From cnn.com. November 12, 2010)
Sen. Manlio Fabio Beltrones says Mexico's current war on drugs is a "fight of firepower"
There could be as many casualties as there were in the Vietnam War, he says
Beltrones is a former governor of Sonora state, which borders Arizona


Tuesday, November 30, 2010                                                                                13
Mexico's government must create jobs and improve education to help fight drug trafficking, the
country's senate president said in an interview with CNN en Espanol.
"Together they form a true strategy for fighting crime and violence," said Sen. Manlio Fabio Beltrones
Rivera, a top official in Mexico's opposition Institutional Revolutionary Party.
Currently, Mexico's war on drugs is a "fight of firepower between criminals and the state," he said.
"We have seen 30,000 people die in the past four years," Beltrones said. "And we are very close to
seeing, at the end of this six-year term, an equal number of dead as in the Vietnam War."
Mexican President Felipe Calderon announced a crackdown on cartels shortly after taking office at the
end of 2006. Since then, more than 28,000 people have died in drug-related violence across the
country. And Calderon's government has dispatched about 50,000 troops to the nation's trouble spots.
A past governor of Sonora state, which borders Arizona, Beltrones also discussed California's recently
defeated proposition to legalize marijuana.
Proposition 19, which failed to garner enough support from California voters earlier this month, left
many Mexican lawmakers wondering what they would do if it had passed, he said.
California has already legalized medical marijuana. Supporters of Proposition 19 argued that the
"prohibition" of marijuana -- much like that for alcohol decades ago -- has created a violent criminal
black market, led today by international drug cartels. But opponents prevailed earlier this month.
Still, Beltrones said the debate over legalizing marijuana is an issue Mexican officials will have to tackle
"sooner or later."
"But we could not do it without developing a strategy with the United States, which is the drug's largest
consumer... Crime and drug trafficking, which are transnational problems, need international solutions,"
he said.

MEXICO’S BANORTE AND IXE TO MERGE
(From The Wall Street Journal. November 17, 2010)
Mexican banking concern Grupo Financiero Banorte SAB de CV said Wednesday that it has agreed to
merge with niche financial group Ixe Grupo Financiero SAB de CV in an all-stock deal valued at about
16.2 billion pesos ($1.3 billion).



CARLOS SLIM’S MEXICAN RETAILER SANBORNS CONSIDERS NEW YORK CITY LOCATION
(From The Wall Street Journal. November 17, 2010)
Billionaire Carlos Slim’s Mexican retail chain is considering opening a location in New York City to
expand in the U.S.
Sanborns, the retailer owned by Slim’s Grupo Carso SAB, hasn’t made a final decision on the location,
Arturo Elias, Slim’s spokesman and son-in-law, said in an e-mail. He didn’t provide a timeframe in
which the company would decide.
New York would be the first U.S. market for Sanborns. The chain has about 160 locations in Mexico,
selling books, televisions and chocolates.
In Mexico, most Sanborns locations house a restaurant selling traditional Mexican food and a bar. The
retail chain, founded in 1903 and acquired by Slim in 1985, had sales of 10.2 billion pesos ($825
million) last year, almost all from Mexico, according to Grupo Carso’s annual report.
Slim has boosted his real-estate investments this year in New York. He was part of a group of investors
who paid $44 million for a townhouse on Manhattan’s Fifth Avenue in July. His family’s closely held
investment vehicle, Inmobiliaria Carso SA, also bought an office tower at 417 Fifth Ave. for $140 million
in June.
Slim, a New York Yankees fan, is the biggest shareholder in New York-based luxury retailer Saks Inc.
and holds a stake in publisher New York Times Co. Reuters reported Sanborns’s New York City plans
earlier today.




Tuesday, November 30, 2010                                                                               14
Monthly Report – TravelPIE – México                                           CTO Mexico – December 2010
Fast Facts:

  Highlight 1:
         Colorado was the ski destination with the most coverage achieved in ALL ski and winter issues. In
         average, other ski destinations were featured in 2-4 pages while Colorado had from 5 to 12 pages on
         each publication (magazines, newspapers and special winter/ski guides) without having to buy publicity
         from any of them. For more detailed information, please refer to this month’s media coverage report
         (page 2). No other ski destination in the world received better coverage than Colorado during December
         in all Mexican media.

  Highlight 2:
         TravelPIE assisted 5 wholesalers interested on working with ski.com during the current ski season. The
         most important contract signed was with Ofertur. They have weekly charters with Aeromexico to Las
         Vegas and Orlando and are open to finding a new product to replace Canada’s charters (were cancelled
         after visa imposition to Mexicans). If they do well with the ski product, they’d consider having a charter to
         Denver for the 2011-2012 ski season.

Public Relations
     • Numbers of Media Calls/Follow up Calls: 20
     • Press Release sent: 1
     • Attended: 1

     •   Total Monthly Media Equivalency compared Year to Date in US Dollars:
         $ 885,384.40 (December 2009 $445,699 USD = 439,685.40 USD more this year)
     •   Total Cumulative Equivalency compared Year to Date in In-Market currency:
         $ 28,003,157.32 MXP

     •   TravelPIE PR Placed Monthly Media Equivalency compared Year to Date in US Dollars:
         $ 876,045.17 (December 2009 $409,343 USD = 466,702.17 USD more this year)
     •   TravelPIE PR Placed Cumulative Equivalency compared Year to Date in In-Market currency:
         $27,426,131.46 MXP

Travel Trade
     • Number of Sales Calls: 30
     • Number of Trade Inquiries: 8
     • Attended: 2

Current Running Co-Ops
     • Tac Tours (Monterrey) – Printed advertising on travel section of “El Norte” newspaper and “Publitur”
         trade magazine

Consumer Fulfilment
    • Number of Consumer Inquiries: 5
    • Distribution of Materials: 5

US Dollar Exchange Rate (December) 12.41
   • Compared to 12.90 in December 2009

Online Activities:
 CTO Official Website Visitors (Mexico’s version of Colorado.com): 1,520 visits


Wednesday, January 05, 2011
 Website Visitors from Mexico: 513

                                                                                                                    1
         TravelPIE – Monthly Report
         Public Relations

         Total Media Equivalency Clipping Evaluation Report – TravelPIE
                                                                                                      Evaluation
                                                  Date of                         Circulation and                   Evaluation in USD –
 Publication                   Title                               Journalist                         (in market                          Source                     Details
                                                Publication                            Type                           Ad Equivalency
                                                                                                      currency)
                                                                                  43,800 copies                                                    The 22 pages ski guide, dedicates 11
                         Guía de esquí en
 Bleu & Blanc                                     Dec-Jan       Marty McLennan     Monthly upscale    4,982,863.2        401,520           PFG     pages to feature Telluride, Crested Butte,
                          Norteamérica
                                                                                   travel magazine                                                 Beaver Creek, Vail and Aspen ski resorts.
                                                                                                                                                   The 5 page story, published in the
                                                                                   Men’s lifestyle                                                 magazine’s longest edition ever and only
                                                                 Mariela Gomez
  GQ Mexico             Colorado de blanco        Dec-Jan                         magazine 70,560     2,315,881.6       186,614.15         PFG     bimonthly issue, features Aspen and Vail
                                                                   Roquero
                                                                                   monthly copies                                                  ski resorts and makes special mention to
                                                                                                                                                   “The Viceroy” at Snowmass.
                                                                                                                                                   The 5 page story features Vail and Aspen
                                                                                     “Excelsior”
                                                                                                                                                   as top ski destinations to plan a family
   Excelsior      Colorado: vacaciones en                        Mariela Gomez       newspaper
                                                    Dec                                               1,210,881           97,573           PFG     vacation during winter season. The article
  newspaper               la nieve                                 Roquero        Christmas special
                                                                                                                                                   is highlighted on the edition’s cover and
                                                                                    supplement
                                                                                                                                                   index.
El blog de Deby          Aspen-Snowmass:                                          Gastronomy and                                                   The story talks about the organic food
                                                  Dec 7th          Deby Beard                           40,000           3,223.20          NA
     Beard              totalmente orgánico                                         wine blog                                                      options in Aspen – Snowmass.
                                                                                                                                                   The story provides general information on
                                                                                    “El Universal”
                      Viaja a Colorado y                                                                                                           how to plan a winter vacation to Colorado
                                                                                  newspaper Travel
   Destinos        olvídate de los números        Dec 5th        Jessica Servín                        118,560           9,553.58          PR      without having to spend a lot of money.
                                                                                   section 216,000
                             rojos                                                                                                                 Denver, Colorado Springs, Vail, Keystone
                                                                                        weekly
                                                                                                                                                   and Breckenridge are featured in the story.
                                                                                      “Reforma”
                                                                                                                                                   The ski special edition features 4
                                                                                      newspaper
   De viaje!                   Ski.               Nov 28th      Haydee Murakami                       1,700,160         136,999.19         PC      destinations in 30 pages from which 15
                                                                                        special
                                                                                                                                                   were dedicated to Colorado ski resorts. Th
                                                                                     supplement
                                                                                      “Reforma”                                                    The story focuses on 3 ski destinations as
                     Un resort para cada                                          newspaper Travel                                                 their “must” recommendations for the
   De viaje!                                     Dec 19th       Haydee Murakami                        154,560           12,454.47         PC
                          esquiador                                                section 145,963                                                 season. Telluride is one of the 3 places
                                                                                        weekly                                                     featured.
                                                                                      “Excelsior”
                                                                                                                                                   The cover story features the top 5 ski
                                                                                      newspaper
                                                                                                                                                   resorts to visit during the current ski
 Bon Voyage         Destinos de invierno         Nov 28th         Laura Llerena   newspaper travel     388,815          31,330.78          PC
                                                                                                                                                   season and dedicates a full page to
                                                                                    section 90,000
                                                                                                                                                   Telluride.
                                                                                    weekly copies
                     Aspen recibirá a los                                                                                                          The one page story provides a general
   Invertour       amantes de la nieve con       Nov 15th               -         Trade newspaper       75,900           6,116.03          NA      update of the new attractions and services
                     grandes sorpresas                                                                                                             the ski resorts offers to its visitors.
                                                                                    “El Universal”
                  Tentaciones a prueba de                                         newspaper Travel                                                 The article provides a general review of
   Destinos                                      Nov 14th        Jessica Servín                        118,560           9,553.58          PR
                    grinchs del invierno                                           section 216,000                                                 what the 2010-2011 ski season will offer.
                                                                                        weekly

         Source Key –
         PFI or PFG            Press FAM result (individual or group)




         Wednesday, January 05, 2011
         PR                    Result of press release
         PC                    Result of press conference/media event
                                                                                                                                                                                 2
P                   Result of the promotion
GA                  Result of general PR activity
NA                  Not Assisted by CTO

Total Placed Media Equivalency Chart Report – Generated by TravelPIE
Month               Total Placed Equivalency FY 10 USD   Combined Equivalency USD
      July 2010     $23,880.7                            $23,880.7
     August 2010     $300,393.27                         $324,273.97
 September 2010     $494,893.96                          $819,167.93
     October 2010    $450,684.39                         $1,269,852.32
 November 2010       $ 56,162.98                         $ 1,326,015.3
 December 2010      $876,045.17                          $2,202,060.47
     January 2011
  February 2011
     March 2011
      April 2011
      May 2011
      June 2011

       TOTAL        $2,202,060.47                        $2,202,060.47

Total Media Equivalency Chart Report – Generated from all sources on Colorado
Month               Total Placed Equivalency FY 10 USD   Combined Equivalency USD
      July 2010     $36,430.7                            $36,430.7
     August 2010     $300,393.27                         $336,823.97
 September 2010     $494,893.96                          $831,717.93
     October 2010    $450,684.39                         $1,282,402.32
 November 2010       $ 80,679.11                         $ 1,363,081.43
 December 2010      $885,384.4                           $2,248,465.83
     January 2011
  February 2011
     March 2011
      April 2011
      May 2011
      June 2011

       TOTAL        $2,248,465.83                        $2,248,465.83




Wednesday, January 05, 2011                                                         3
             Press Releases:
             A “Ski update in Colorado” press release was distributed to our media database.

             B-Roll, Video and Photo Usage:
             Received photo requests from El Universal newspaper and Bleu & Blanc magazine.

             Update of Media Calls/Press Contacts:
                          th
             November 29 – Jessica Servín – Journalist – Destinos, El Universal newspaper travel section
             Ms. Servín requested information to publish a story on Colorado ski vacation with a low budget .
                         th
             December 7 – Deby Beard – Journalist – El blog de Deby Beard
             Emailed to let us know she had recently published a story on Aspen in her blog.
                         th
             December 9 – Valerio Negri - Editor – Bleu & Blanc magazine.
             Requested additional high resolution images on Mesa Verde National Park to illustrate the story that will be published in the February’s edition.
                              th
             December 10 – Anaïs de Melo – Journalist – Radio Mente abierta
             Met to update her on Colorado’s proposal and discuss the possibility of participating in her radio show during 2011.

             December 12th – Mariela Gómez – Journalist – Excelsior newspaper
             Emailed to confirm publication date of her second article on Colorado ski resorts. The five page article was published in the “Christmas” special
             edition of Excelsior newspaper (distributed only to subscribers).
                              th
             December 16 – Enrique Escalona – Editor – LaGiraffe.com
             Met to find out his plans for the upcoming months and receive an update on possible publication dates for new Colorado stories.
                              th
             December 18 – Marco Daniel Guzmán – Conductor – Expedición W radio show
             Met to receive an update on his plans and topics he’s interested on covering in his radio show. He will send the updated media profile as well as a
             list of events he’d like to broadcast live for our consideration.
                              th
             December 20 – Valerio Negri - Editor – Bleu & Blanc magazine.
             Requested a story on the Pike’s Peak cograilway (content and photographs) to publish in the March edition. The story will be written by Lilliana
             Maya; the images were provided by Visit Colorado Springs.

             Confirmed Individual Media FAM Trips
                                             Attending        Circulation of                                                                         Date Article
Date of FAM Trip         Publication                                                  Profile               Theme               Destinations                             PR Value $
                                             Journalist        Publication                                                                            Appeared
                                                                                 Mexicana Airline’s
                                                                                  business class in-                                               September - ESPN
                                                                                                                             Denver, Colorado
                                                                                   flight magazine.                                                 story on IVESCO   82,667.73 USD
                                                                                                         National Parks,     Springs, Manitou
                       Elite magazine,                         Elite – 10,000         ESPN is the                                                          field      ESPN
                                          Enrique Escalona                                              Sports scene and     Springs, Durango,
      July            ESPN en español,                        ESPN – 80,000      Spanish version of                                                September – Mesa
                                           David Paniagua                                              urban experience in   Mesa Verde,
                       LaGiraffe.com                         LaGiraffe – 8,000    the US magazine.                                                       Verde in     7,924.60
                                                                                                             Denver          Durango - Silverton
                                                                                  Only a small % of                                                   LaGiraffe.com   LaGiraffe.com
                                                                                                                             train
                                                                                 the content is from



             Wednesday, January 05, 2011
                                                                                   the US version.

                                                                                                                                                                           4
         Group Media:
                                           Attending        Circulation of                                                                            Date Article
Date of FAM Trip     Publication                                                          Profile                    Theme          Destinations
                                           Journalist        Publication                                                                               Appeared          PR Value $
                                                                                                                                    Denver, Vail,
                                                                             Mexico’s most important high-
                                                                                                                                   Aspen, Durango,
                     Bleu & Blanc       Hilda Dominguez        43,800        end travel magazine. It                                                                  28,680 USD per
September 9 – 15                                                                                                                     Mesa Verde,         TBD
                      magazine             (Co-editor)         monthly       celebrated its 10th anniversary                                                          page
                                                                                                                                   Black Canyon of
                                                                             this month.
                                                                                                                                    the Gunnison
                                                                                                                                    Denver, Vail,
                                                                             Mexico’s most important high-
                                                                                                                                   Aspen, Durango,
                     Bleu & Blanc      Carlos García Mora                    end travel magazine. It                                                                  28,680 USD per
September 9 – 15                                               43,800                                                                Mesa Verde,       Feb 2011
                      magazine           (photographer)                      celebrated its 10th anniversary                                                          page
                                                                                                                                   Black Canyon of
                                                                             this month.
                                                                                                                                    the Gunnison
                                                                                                                                    Denver, Vail,
                                                                             Mexican edition of the
                                                                                                                                   Aspen, Durango,
                                                               70,560        renowned US magazine. The                                                                37,322.83 USD per
September 9 – 15         GQ              Mariela Gomez                                                                               Mesa Verde,     Dec-Jan issue
                                                               monthly       most popular men’s magazine                                                              page
                                                                                                                                   Black Canyon of
                                                                             in México.
                                                                                                                                    the Gunnison
                                                                             Mexico’s most prestigious
                                                                                                                                    Denver, Vail,
                                                                             newspaper. It also publishes
                                                                                                                 Denver cultural   Aspen, Durango,
                   De viaje, Reforma   Sergio Zepeda de        145,963       “Mural” in Guadalajara and “El
September 9 – 15                                                                                                 scene and five      Mesa Verde,     September 26th   123,917.6 USD
                      newspaper         Alba (journalist)       weekly       Norte” in Monterrey. Contents
                                                                                                                 neighbourhoods    Black Canyon of
                                                                             are shared in these three
                                                                                                                                    the Gunnison
                                                                             editions.
                                                                             Mexico’s most prestigious
                                                                                                                                    Denver, Vail,
                                                                             newspaper. It also publishes
                                                                                                                                   Aspen, Durango,
                   De viaje, Reforma   Yolanda Garduño         145,963       “Mural” in Guadalajara and “El                                                           30,000 USD per
September 9 – 15                                                                                                                     Mesa Verde,       Sept 2010
                      newspaper         (photographer)          weekly       Norte” in Monterrey. Contents                                                            page
                                                                                                                                   Black Canyon of
                                                                             are shared in these three
                                                                                                                                    the Gunnison
                                                                             editions.
                                                                             High-end magazine with a                               Denver, Vail,
                                                                             monthly print-run of 10,000                           Aspen, Durango,
                                         Liliana García        10,000                                                                                                 24,000 USD per
September 9 – 15      La Revista                                             copies. Half of it is distributed                       Mesa Verde,         TBD
                                              Brena            monthly                                                                                                page
                                                                             to a VIP database                                     Black Canyon of
                                                                             (personalized copies)                                  the Gunnison



         Media Events:
         TravelPIE attended the New Year dinner organized by Expomayoristas on December 2th.




         Wednesday, January 05, 2011                                                                                                                                       5
Travel Trade Promotions

Current Co-ops:
Company           Details                                     Dates                Partners   On-Line OR Off-Line          Results


Tac Tours         OFFLINE CAMPAIGN – CONSUMER                   Ski season 201 -                          Off line
                                                                      2011

Servicios de      OFFLINE CAMPAIGN – CONSUMER                   Ski season 201 -                          Off line
viaje 365                                                             2011

Holam             OFFLINE CAMPAIGN – CONSUMER                   Ski season 201 -                          Off line
                                                                      2011


Trade Contacts/Sales Calls/Sales Leads:

•     Iconn Travel – Followed up with the Sales Department on their feedback working with ski.com and offered to book training seminars for their
      travel agents. Dates will be determined during the first days of January.

•     Cuali Viajes (Mog Travel) – Followed up with the Sales Department on their feedback working with ski.com.

•     Ofertas Turísticas – Followed-up on their feedback working with ski.com and agreed on scheduling product training sessions for January’s
      second / third week.

•     Cuali Viajes – Followed-up on his experience with ski.com. Detailed feedback will be provided after the ski season ends. They have a
      contract with Vail Resorts thus until now, they prefer to buy directly from them rather than from ski.com

•     Corporate Travel Services – Isabel Parada – Met with Isabel to discuss their training needs and book product training for January.

•     Tac Tours – Emailed to follow-up on their ski sales as a result of the current printed campaign we have with them. A detailed report will be
      provided until the ski season ends.

Travel Trade Events, Trainings, Seminars, Workshops:
Ofertur – winter product training based on ski.com Colorado product. This is the first ski season they sell thus the travel agents require several
seminars to improve their sales tools for this product.

Trade FAMS (Group or Individual):
    Date of FAM                                                                                                      Participating
                        Company         Attending personnel            Title            Profile / Current product                         Results
        Trip                                                                                                         Destinations




Wednesday, January 05, 2011                                                                                                                          6
Travel Tradeshows:
Telluride Ski Resort product training for travel agents.
Consumer Promotions

Consumer-Related Programs (Consumer shows/Consumer leads): 0

Consumer Inquires without brochure fulfilment:

Distribution of Materials for corresponding Month and Cumulative Amount to date:

Month                                                          www.colorado.com              Other – telephone/ email request       Total
July 2010                              0                                                 2                                      2
August 2010
September 2010
October 2010
November 2010
December 2010
January 2011
February 2011
March 2011
April 2011
May 2011
June 2011
Total

                                                                   Colorado Fulfilment Stats 2009
Total fulfilment graph
                                                                     200
                                            No of packs sent




                                                                     150
                                                                     100
                                                                      50
                                                                       0
                                                                           Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

                                                                           Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
                                     Packs (Colorado.com                    67
                                     requests)
                                     Trade packs (phone                     75
                                     requests)
                                     Consumer packs (phone                   3
                                     requests)


Wednesday, January 05, 2011                                                                                                                 7
                                        MARKET INTELLIGENCE

                                                     Economy
                                 Jan         Feb        March         April        May         June

Exchange Rate (U.S)             12.97        12.87       12.35        12.28       12.68        12.90

Consumer Confidence
                                 82.1        80.6         81.8        82.5         84.6        87.5
Index


                                 July      August        Sept       October        Nov         Dec

Exchange Rate (U.S)             13.35        13.26       12.82        12.43       12.33        12.41

Consumer Confidence
                                 87.4        88.7         91.6        92.05       88.50
Index
Source: Banco de Mexico; National Statistics, Geography and Information Institute (INEGI); Oanda.com



WHERE IS MEXICO’S OIL HEADING?
(From Fortune Magazine. December 9, 2010)
Mexico appears set to allow foreign oil companies to operate on its soil for the first time in 72 years
following a Mexican court ruling earlier this week. But while the news is being hailed as a major coup
for the large multi-national energy companies, including ExxonMobil (XOM, Fortune 500), Chevron
(CVX, Fortune 500), BP (BP), Repsol, (REP) Eni (E) and Shell (RDSA), it remains to be seen if drilling
south of the border would be in their best interest.
In Mexico, state ownership of the oil industry is considered to be sacrosanct. Every year, the country
celebrates the day in 1938 when its government kicked foreign oil companies out of the country and
nationalized the industry. Since then, oil has provided Mexico with vital cash needed to fund its social
programs. In fact, over a third of the government budget comes from the state owned oil company,
Petróleos Mexicanos, or Pemex.
For years this scheme worked well. Pemex would hand over 60% of its revenue to the state, leaving it
just enough cash to reinvest in the business and grow production. But as it became more expensive
over the years to exploit the nation's oil reserves, Pemex's profit margins shrank, eventually leaving the
company with little or no money to reinvest in the business.
The results were disastrous. Mexico went from producing 3.4 million barrels of oil a day in 2004 to
producing just 2.6 million barrels a day in 2010. According to the Department of Energy, Mexico is the
seventh-largest oil producer in the world.
Failed efforts
While foreign oil companies were forbidden to own Mexican oil assets, they were always ostensibly
allowed to assist the state in exploiting its reserves as a subcontractor for a flat fee. For example, oil
service companies like Schlumberger (SLB) and Halliburton (HAL, Fortune 500) have been in the
country for years helping Pemex suck out its oil, but the major exploration and production companies
largely stayed away as they weren't allowed to absorb any of the upside from rising oil prices.
This subcontracting model didn't seem to get Pemex very far in growing its reserves. That's because oil
service firms acted as agents rather than principals in the oil extraction. They weren't incentivized to


Wednesday, January 05, 2011
take risks and push Pemex in the right direction, as international oil companies might have done.
                                                                                                         8
Thanks to a Mexican supreme court ruling on Tuesday, Pemex now has the ability to offer the foreign
oil companies more of an incentive to come down to Mexico. While the state will continue to own the oil,
the government is allowing Pemex to pay foreign oil companies a fee on each barrel of oil they extract.
That differs from the old system where they would be paid a flat fee for completing the project. In return,
the oil companies would agree to share in the risk by absorbing 25% of the exploration and
development costs.
Pemex plans to first open three mature onshore oil fields in the south of the country to foreign
companies. They expect to have workers on the field by the third quarter of 2011 and in production by
2012. These fields will probably not appeal to the large international oil companies as they are too small
to move the needle. But they would appeal to smaller oil companies that specialize in squeezing the life
out of old fields.
What could be of interest to the large oil companies are the offshore drilling opportunities in the Gulf of
Mexico. Pemex will move to open these fields to foreigners by 2012. The company says it has identified
some new fields underwater that could hold a billion barrels of crude or more.
Big Oil's demands
But is this new regime enough to lure the major oil companies to come down to Mexico? While it does
make it more amenable to them, it is certainly not ideal. After all, they still won't own the oil. That means
that they won't be able to book the oil to their reserve base -- a major drawback since oil companies are
judged by the public markets in large part by their ability to replace their reserves. Not owning the oil
also means that they won't be able to control where it goes. This is important for logistics and trading
purposes, which is a major profit center for some oil companies, especially BP.
To be sure, the oil companies won't pass up an opportunity with a high return on their invested capital.
But how profitable the venture could be remains to be seen. The price per barrel fee that the company
would receive would be determined by a reverse auction. Pemex would set a ceiling and the lowest
bidder with the most favorable terms wins.
"I think it would be wrong to disregard the potential viability of this contract," says George Baker, the
publisher of Mexico Energy Intelligence, an industry newsletter. "I think we have to be in a wait and see
mode and depends a lot on that ceiling price."
If Pemex sets that ceiling price too low, nobody would agree to drill and the country would continue to
see its production dry up. If it sets it too high, Pemex would be accused by its opponents in the
government of giving away Mexico's oil, threatening to scuttle the entire deal.
So far, the major oil companies have been mum on the developments in Mexico. In a benign statement,
ExxonMobil had this to say: "ExxonMobil supports Mexico's efforts to address its trend of declining oil
production through energy reform. Effective reforms could help Mexico continue to provide affordable
and reliable energy to its businesses and its citizens, enabling the Mexican people to maintain and
improve their quality of life."
It has taken years for Mexico to admit that it has a problem with its oil production and even longer to
pass legislation to revamp the system. It is now up to Pemex to decide how it wants to proceed. But
whatever it decides, it needs to act fast. If Mexico is unsuccessful in boosting its sagging production, it
is slated to become a net importer of oil within five years.


                                      Outbound Travel Market
General

U.S. AVIATION OFFICIALS UPGRADE MEXICO’S SAFETY RATING
(From The Wall Street Journal. December 1, 2010)
U.S. transportation officials upgraded Mexico's aviation-safety rating Wednesday after concluding that
the country has demonstrated "significant progress" in correcting earlier regulatory lapses.
The announcement by the Federal Aviation Administration comes four months after the agency
shocked Mexican authorities -- along with officials at some U.S. airlines that partner with Mexican


Wednesday, January 05, 2011
carriers -- by downgrading the country's aviation-safety ranking. In July, the FAA publicly faulted

                                                                                                           9
Mexico's oversight of commercial aviation and indicated that efforts to turn things around fell short of
international requirements.
Wednesday's move means that Mexican carriers will again be allowed to add new routes or flights
serving the U.S., including expansion of partnership arrangements, or code-sharing flights, with U.S.
carriers. In its announcement, the FAA said it agreed to Mexico's request to continue providing
"technical assistance to support and maintain the changes" put in place over the past few months.
It is unusual for a country to regain the top U.S. safety ranking, called Category 1, so quickly after being
stripped of that rating. FAA teams have authority to call for a downgrade when they determine that a
country has failed to maintain minimum international standards in areas such as the technical
competence of regulators, adequate numbers of inspectors and reliable safety records.
In addition to effectively restricting Mexican carriers from partnering with U.S. airlines, the July
downgrade stunned some senior Mexican government officials and had important economic and
symbolic impact. Under that decision, Mexican airlines were restricted from codesharing—or using U.S.
as well as Mexican flight numbers—on routes flown in conjunction with U.S. partners, including Delta
Air Lines Inc. and AMR Corp.'s American Airlines.
At the time, Mexican officials said they hoped to regain the top ranking in a matter of months.
The FAA's move in July to downgrade Mexico to Category 2 from Category 1 under the agency's
international safety assessment program also created a political embarrassment for a close U.S. ally.
The last time the FAA took such a step was in late 2008, when it downgraded Israel and faulted its
regulators for having a shortage of government inspectors. Israel continues to work on regaining the top
ranking.
The debate over Mexico's downgrade was sensitive enough that officials from the FAA and the
Department of Transportation sought White House concurrence, a U.S. industry official familiar with the
matter said at the time.
The U.S. rankings aren't intended to gauge individual airline safety systems or procedures, and aren't
directly tied to recent airline accidents or incidents. Instead, FAA safety experts assess the adequacy of
laws, regulations and day-to-day oversight of carriers by a specific government. Foreign regulators are
briefed on the decision, and in most cases pledge to work with the FAA to correct deficiencies.
In 2009, U.S. citizens made more than 5.2 million air trips to Mexico, down 10.6% from 2008, a drop in
travel attributed to swine-flu concerns.
At the time of the downgrade, Mexican officials said growth in the country's airline industry had
outpaced safety-oversight programs. The FAA gave Mexican authorities more than six months to
correct the deficiencies before announcing the downgrade.
Details of the FAA reviews that prompt changes in international safety rankings aren't released. The
agency's announcement Wednesday didn't provide any details of what Mexico did to get the upgrade,
and it didn't elaborate on the process.
Other countries downgraded in the past few years by the FAA include Indonesia, Croatia, Ukraine and
the Philippines. Many other countries also are listed by the FAA as deficient in safety oversight, though
most of those didn't have any airlines serving the U.S.
But India and Thailand, countries that have suffered a number of high-profile commercial crashes in
recent years, weren't downgraded by the FAA despite persistent warnings of oversight deficiencies by
independent air-safety experts. Both countries, however, mounted extensive drives to hire and train
dozens of additional inspectors, supervisory pilots and other aviation professionals.
A major FAA concern before the Mexican downgrade was the chronic shortage of government
inspectors there. The FAA apparently concluded in July that more still needed to be done to rectify that
problem.

SAFETY UPGRADE IS GOOD NEWS FOR AIR SERVICE
(From Travel Weekly. December 22, 2010)
Air service is part of the improving tourism picture to Mexico. The country received a much-needed
boost from the FAA, which recently announced that Mexico complies with international safety standards
allowing an upgrade to Category 1, the top category by the U.S. agency's standards.
Mexico was downgraded earlier this year to Category 2, which meant that Mexican carriers could not


Wednesday, January 05, 2011                                                                              10
establish new service to the U.S., although they were allowed to maintain existing service. With the
Category 1 rating, Mexican airlines can again add flights and service to the U.S.
Aeromexico, which added service this year in the wake of the demise of competitor Mexicana, said the
Category 1 upgrade and a recent agreement with its pilots is enabling the carrier to "implement an
ambitious growth program with close to a $1 billion investment in 25 aircraft in the coming months,"
Andres Conesa, the airline's CEO, said in a statement.
Upstart Mexico carrier Volaris, which has several routes from Mexico City to the U.S., is planning to add
flights to the states and has entered a codeshare partnership with Southwest Airlines. Domestic carrier
Interjet is expanding its network within Mexico, increasing service from Mexico City, and Alaska Airlines
and US Airways have boosted flights. Also, Virgin America recently launched its first flight to Mexico,
from San Francisco to Los Cabos.
According to the Mexico Tourism Board, there are 300 daily flights from the U.S. to Mexico, with 45,000
seats available.


Long haul



                                  Competitive Environment
Competitor Spend/Activity


Routes



                                        Consumer Trends
General


Lifestyle


Socio Demographic


Internet



                                      Travel Trade Trends

Travel Agents


Tour Operators




Wednesday, January 05, 2011                                                                           11
Airlines

MEXICO REGAINS TOP AVIATION SAFETY RATING
(From Travel Weekly. December 06, 2010)
Mexico now complies with international safety standards set by the International Civil Aviation
Organization, the FAA said last week.
The country has been upgraded to a Category 1 rating, based on the results of a November review of
Mexico’s civil aviation authority, the FAA reported.
At Mexico’s request, the FAA said it will continue to provide technical assistance to support and
maintain the changes the civil aviation authority has made.
Mexico received a Category 2 rating in July, which meant Mexican airlines could not establish new
service to the U.S. but were allowed to maintain existing service. Mexican airlines now can again add
flights and service to the U.S.
“This is excellent news for Mexico tourism,“ said Gloria Guevara, Mexico’s secretary of tourism. “It
should help drive an increase in travel routes and visitors between Mexico and the United States,
particularly during this upcoming holiday period.”
With Mexico regaining a Category 1 rating, Aeromexico plans to re-establish codeshare flights with
Delta on Dec. 11.

AEROMEXICO ADDS FLIGHTS, REINSTATES CODESHARE
(From Travel Weekly. December 08, 2010)
Following the news that the FAA had restored Mexico's Category 1 aviation safety rating, Aeromexico
added service and said it would re-establish its 45 daily codeshare flights with Delta on Dec. 11.
The airline also announced new daily flights between Mexico City and New York, Miami, Chicago, Los
Angeles and Las Vegas, which started on Dec. 6.
And, the Mexican carrier said it would add two daily frequencies to San Antonio on Jan. 11, raising the
carrier's offerings between Mexico and the U.S. to 434 weekly flights.

MEXICANA DIDN’T MAKE IT BACK FOR CHRISTMAS
(December 21, 2010)
Mexicana missed a mid-December target date to resume flights. The carrier has not flown since Aug.
28 when its money-losing operation could no longer be sustained.
Government officials as well as PC Capital, the private-equity firm leading Mexicana’s restructuring
effort, had aimed for the carrier to resume operations this month to capitalize on the holiday travel
season, according to Dow Jones Newswires.
The target for a scaled-down Mexicana to fly again now is late January, Dow Jones reported.
Rival carrier Aeromexico, meanwhile, has capitalized on Mexicana’s absence by recently adding
capacity on seven U.S. routes.
This week Aeromexico reached on a deal on productivity gains with pilots that could pave the way for
a $1 billion investment in 25 aircraft in the coming months, according to CEO Andres Conesa.

DELTA RESTARTING AEROMEXICO CODESHARE FLIGHTS
(From PRNewswire. December 22, 2010)
Delta Air Lines (NYSE: DAL) on Dec. 29 will reinstate codeshare flights operated by SkyTeam partner
Aeromexico following the Federal Aviation Administration's (FAA) decision to upgrade to Category 1 the
rating of Mexico's federal civil aviation authority. This rating is required to allow codesharing by any
U.S.-based airline on another international airline's flights.
Flights will be available for purchase on Dec. 26 through all Delta ticketing channels.
The reinstated codesharing will connect Delta customers between 20 Mexican and nine U.S. airports
on more than 125 Aeromexico and Aeromexico Connect flights. Reinstated codeshare cities include
Acapulco, Campeche, Durango, Tampico, Veracruz, Morelia, La Paz, Merida, Chihuahua and Los
Mochis.
"Delta and Aeromexico offer one of the most comprehensive networks between the United States and


Wednesday, January 05, 2011
Mexico and we are pleased to be able to reinstate our full codeshare network with Mexico's leading
                                                                                                        12
airline," said Christophe Didier, Delta's staff vice president of Sales and Affairs in Latin America and
Caribbean. "Our customers will soon be able to benefit from the same seamless ticketing and
connections between Delta and Aeromexico flights they have long enjoyed."
Delta removed its two letter "DL" code from Aeromexico flights earlier this year after the FAA
downgraded the oversight rating of Mexico's civil aviation authority to a Category 2. The change
temporarily prohibited U.S. airlines from offering codeshare service on any airline overseen by Mexican
authorities. On Dec. 1, the FAA announced that Mexico's civil aviation authority had regained full
compliance.
Aeromexico, like Delta, is a founding member of the SkyTeam global airline alliance. The carriers link
their schedules through codesharing, which enables customers to buy seats on the airlines
interchangeably.

                                            Media Trends
Print – newspapers
Milenio newspaper hasn’t published the travel section since September and still haven’t decided who
will be on charge of it. All travel sections published stories on winter vacation and ski resorts around the
world. Reforma newspaper distributed its ski special supplement at the beginning of the month; four
destinations were featured in 30 pages.

Print – magazines
Ski special editions were published this month. Most magazines have a bimonthly edition in December
thus winter stories circulate for two months.

Online
Online presence continues growing and gaining strength among all printed media.

Broadcast
Canada had an advertising campaign during the first half of the month that included radio shows (with
Expedición W) wher the most popular destinations among the Mexican market were featured. They
gave away tickets for the radio audience to attend a special event the Canadian Tourism Commission
organized at an ice-skate rink.

General
December is always a slow month because several journalists take vacation and companies organize
Christmas & New Year celebrations. At the end of the month newspapers’ travel sections publish less
content; some magazines don’t have a December issue while others distribute their only bimonthly
edition of the year. In general terms, December is a busy month for social events and gatherings but
very little can be achieved in relation to agreements or work projects.

                                            General News

CANADA, MEXICO TIGHTEN BONDS
The nations address joint cooperation on security
(From The News. December 14, 2010)
Foreign Affairs Secretary Patricia Espinosa Cantellano met with Canadian Minister of Foreign Affairs
Lawrence Cannon on Monday in Québéc to discuss bilateral cooperation prospects for the future.
During the Framework of the Trilateral Meeting of Foreign Ministers of North America, Espinosa and
Cannon discussed the results and commitments of President Felipe Calderón’s latest visit to Canada in
May.
They also analyzed the bilateral cooperation in security, the youth mobility scheme, the results of the


Wednesday, January 05, 2011
36th Annual Evaluation Meeting of the Seasonal Agricultural Workers Program, the Canada-Mexico
                                                                                                         13
Partnership, the Joint Action Plan 2010-2012 and the progress of the refugee law in Canada. It is not
known whether the parties discussed the visa requirement for Mexican tourists that was implemented
by the Canadian government on July 14, 2009.
The sudden decision by the Canadian government was not taken well by Mexican diplomats and
business people because many of them saw the visa as a slap in the face, regardless of the
justifications given by Canadian officials. The Canadian said that the decision was made due to the
large number of Mexicans that had asked for political asylum in Canada and because there were many
“agencies” that trained people to lie during a consular interview in order to get asylum.
Both government officials agreed that strategies benefitting bilateral economic relationships were
essential to Mexico and Canada in order to achieve economic recovery. They expressed their
commitment to further develop ties of cooperation in the economic, tourism, educational and cultural
sectors.
Lastly, Espinosa and Cannon discussed the importance of the “Cancún Agreements” reached at the
Climate Change Summit (COP-16), which took place in Cancún, Quitana Roo, and ended last week.

MEXICAN LEADER’S CRIME EFFORT FAILS TO ADVANCE
(From The Wall Street Journal. December 17, 2010)
President Felipe Calderón’s effort to reorganize local police forces and clamp down on money
laundering in the fight against organized crime has suffered a setback with the failure of the Mexican
Congress to move forward on the initiatives.
Mr. Calderón had promoted these plans as pivotal to undermining drug trafficking organizations whose
battles among themselves and with the authorities have left more than 30,000 people dead in the past
four years, Mexico’s attorney general reported this week.
But Congress adjourned Wednesday without voting on any of the significant changes that Mr. Calderón
had proposed. A coalition of 33 civic and business organizations expressed their frustration on
Thursday in a full-page newspaper advertisement that urged Mr. Calderón, Congress and other
governmental bodies to tackle the big changes they think are needed to improve safety.
The organizations said the rising violence this year made the overhaul more urgent than ever. On
Friday, local news organizations reported that more than 140 inmates had escaped from a prison near
the Texas border and that an antiviolence advocate was gunned down in a northern border state.
“We Mexicans see, with great frustration, that this year the authorities were not able, once again, to put
the welfare of the country and safety of families above their political interests,” the advertisement in the
newspaper Reforma said.
Mr. Calderón had put much stock in his plan to clean up local police forces, which are seen as
particularly close to organized crime groups, by bringing them under the control of state governors. But
lawmakers, including some in Mr. Calderón’s party, have questioned whether that would give too much
control to governors, some of whom have also been found to have connections with drug gangs.
Mr. Calderón had also pressed for revisions to banking laws that would restrict cash transactions as a
way to stem the billions of dollars laundered by criminal groups. The proposal has been stuck in
committees.
Some lawmakers argued that such big changes deserved careful study and debate.
“An arduous analysis is necessary,” said Ardelio Vargas Fosado, an opposition lawmaker who is
chairman of the national defense committee in the lower chamber.
José Luis Ovando, a legislator from Mr. Calderón’s party and chairman of the justice committee in the
lower house, said, “We don’t want to rubber-stamp nor hurry along the analyses that should be done.”
Other lawmakers said they were wary of anything that could be perceived as giving Mr. Calderón more
power.
The president’s right-leaning National Action Party controls the Senate, but the centrist Institutional
Revolutionary Party, which had governed for decades, has a plurality in the lower chamber and is
anxious to take back the presidency in 2012 elections.
“In effect, Calderón entered his lame-duck phase from July 2009 when he lost Congress,” Fernando
Dworak, a political consultant here, said, referring to legislative elections that gave the Institutional
Revolutionary Party its plurality in the lower chamber.


Wednesday, January 05, 2011                                                                               14
Mr. Calderón’s office said he would continue to fight for the changes, but that may prove difficult.
“Sometimes the will is there, but the differences are so big they block the ability to get a parliamentary
majority,” Senator Carlos Navarrete of the Democratic Revolutionary Party said Thursday at a news
conference.




Wednesday, January 05, 2011                                                                              15
Monthly Report – TravelPIE – México                                          CTO Mexico – January 2011
Fast Facts:

  Highlight 1:
         Due to last month’s Colorado placement in media, the state’s ski resorts are still present in the market
         for the most prestigious upscale travel magazine winter edition is bimonthly (Dec-Jan) while the most
         renowned men’s lifestyle magazine published in December their only bimonthly edition and the largest
         edition they have ever published in Mexico. Thus, despite the little activity within the printed magazines
         sector this month, Colorado ski destinations still circulate in the market.

  Highlight 2:
         The second Sales Mission program was launched in January. For this, communication was reinforced
         with the most important wholesalers to guarantee that the topics they’re interested on are covered
         during the mission and discussed with the attendants.

Public Relations
     • Numbers of Media Calls/Follow up Calls: 15
     • Press Release sent: 1
     • Attended: 0

     •   Total Monthly Media Equivalency compared Year to Date in US Dollars:
         $649,551.95 (January 2009 $205,911 USD = 209,866.55 USD more this year)
     •   Total Cumulative Equivalency compared Year to Date in In-Market currency:
         $35,921,195.59 MXP

     •   TravelPIE PR Placed Monthly Media Equivalency compared Year to Date in US Dollars:
         $649,551.95 (January 2009 $148,636 USD = 500,915.95 USD more this year)
     •   TravelPIE PR Placed Cumulative Equivalency compared Year to Date in In-Market currency:
         $35,344,169.67 MXP

Travel Trade
     • Number of Sales Calls: 25
     • Number of Trade Inquiries: 6
     • Attended: 1

Current Running Co-Ops
     • Tac Tours (Monterrey) – Printed advertising on travel section of “El Norte” newspaper and “Publitur”
         trade magazine

Consumer Fulfilment
    • Number of Consumer Inquiries: 2
    • Distribution of Materials: 2

US Dollar Exchange Rate (December) 12.19
   • Compared to 12.90 in January 2010

Online Activities:
 CTO Official Website Visitors (Mexico’s version of Colorado.com): 1,398 visits
 Website Visitors from Mexico: 518




Tuesday, February 15, 2011                                                                                            1
        TravelPIE – Monthly Report
        Public Relations

        Total Media Equivalency Clipping Evaluation Report – TravelPIE
                                                                                                              Evaluation
                                                    Date of                              Circulation and                    Evaluation in USD –
 Publication                     Title                               Journalist                               (in market                          Source                       Details
                                                  Publication                                 Type                            Ad Equivalency
                                                                                                              currency)
                                                                                         43,800 copies                                                     The 22 pages ski guide, dedicates 11
                            Guía de esquí en
 Bleu & Blanc                                       Dec-Jan       Marty McLennan          Monthly upscale     4,982,863.2        401,520           PFG     pages to feature Telluride, Crested Butte,
                             Norteamérica
                                                                                          travel magazine                                                  Beaver Creek, Vail and Aspen ski resorts.
                                                                                                                                                           The 5 page story, published in the
                                                                                          Men’s lifestyle                                                  magazine’s longest edition ever and only
                                                                   Mariela Gomez
  GQ Mexico             Colorado de blanco          Dec-Jan                              magazine 70,560      2,315,881.6       186,614.15         PFG     bimonthly issue, features Aspen and Vail
                                                                     Roquero
                                                                                          monthly copies                                                   ski resorts and makes special mention to
                                                                                                                                                           “The Viceroy” at Snowmass.
                                                                                                                                                           The story features Aspen, Mesa Verde,
                                                                                          10,000 Monthly                                                   Durango-Silverton Railroad, The Viveroy
  La Revista                    Roadtrip           December         Liliana García                              6,000             24,000           PFG
                                                                                              copies                                                       Spa and Denver as part of an
                                                                                                                                                           extraordinary itinerary to explore Colorado.
                       Holam presentó sus                                                                                                                  The one page article reviews the
                                                                                         14,000 bimonthly
  Turistampa          programas de esquí en         Dec 3rd         Brenda Núñez                                41,000           13,225.8          PC      presentation Holam had with Telluride
                                                                                              copies
                        Telluride, Colorado                                                                                                                back during Estrella Wood’s visit to Mexico
                                                                                            Aeroméxico
                                                                                                                                                           The story describes Aspen’s attractions
                       Invierno para niños en      December                                airline’s travel
Aeroméxico.com                                                     Mariela Gomez                                25,000            8,064            PFG     and facilities for families with Little kids to
                      Aspen, cerca de Denver          9th                                   blog. 80,000
                                                                                                                                                           enjoy a Winter vacation.
                                                                                           monthly visits
                                                                                            Aeroméxico
                                                                                                                                                           The story talks about Mesa Verde National
                       Visita Mesa Verde en        December                                airline’s travel
Aeroméxico.com                                                     Mariela Gomez                                25,000            8,064            PR      Park attractions and provides a general
                              Colorado               20th                                   blog. 80,000
                                                                                                                                                           review on Durango.
                                                                                           monthly visits
                                                                                            Aeroméxico
                                                                                                                                                           The story talks abot the ne w Four
                        Ven al nuevo Four           January                                airline’s travel
Aeroméxico.com                                                     Mariela Gomez                                25,000            8,064            PFG     Seasons hotel that has been opened in
                        Seasons de Denver             17th                                  blog. 80,000
                                                                                                                                                           Denver.
                                                                                           monthly visits

        Source Key –
        PFI or PFG               Press FAM result (individual or group)
        PR                       Result of press release
        PC                       Result of press conference/media event
        P                        Result of the promotion
        GA                       Result of general PR activity
        NA                       Not Assisted by CTO

        Total Placed Media Equivalency Chart Report – Generated by TravelPIE
         Month                    Total Placed Equivalency FY 10 USD       Combined Equivalency USD
                July 2010         $23,880.7                                $23,880.7
               August 2010        $300,393.27                              $324,273.97
          September 2010          $494,893.96                              $819,167.93




        Tuesday, February 15, 2011
           October 2010           $450,684.39                              $1,269,852.32

                                                                                                                                                                                            2
 November 2010    $ 56,162.98                          $ 1,326,015.3
 December 2010    $876,045.17                          $2,202,060.47
  January 2011    $649,551.95                          $2,851,612.42
  February 2011
   March 2011
    April 2011
    May 2011
   June 2011

     TOTAL        $2,851,612.42                        $2,851,612.42

Total Media Equivalency Chart Report – Generated from all sources on Colorado
Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $36,430.7                            $36,430.7
  August 2010     $300,393.27                          $336,823.97
 September 2010   $494,893.96                          $831,717.93
  October 2010    $450,684.39                          $1,282,402.32
 November 2010    $ 80,679.11                          $ 1,363,081.43
 December 2010    $885,384.4                           $2,248,465.83
  January 2011    $649,551.95                          $2,898,017.78
  February 2011
   March 2011
    April 2011
    May 2011
   June 2011

     TOTAL        $2,898,017.78                        $2,898,017.78




Tuesday, February 15, 2011                                                        3
         Press Releases:
         A “State parks during winter time” press release was distributed to our media database and a “Breckenridge International Snow Sculpture
         Championship” was sent to 20 media contacts.

         B-Roll, Video and Photo Usage:
         Received photo requests from El Universal newspaper and Bleu & Blanc magazine.

         Update of Media Calls/Press Contacts:
                   rd
         January 3 – Alejandra Fernández – Publicity Director – GQ magazine
         Ms. Fernandez sent an invitation to participate in a contest called “Brumel Awards” they are currently producing. The awards ceremony will take
         place in August. Further information was requested so that we know what are the options to support the contest and have presence among the
         magazine readers.
                   th
         January 5 – Inés Saavedra - Editor – Indie Food e-magazine.focused in organic eco-friendly gastronomy
         Ms. Saavedra is currently working on a story about beers of the world. Thus requested information on Colorado’s micro-breweries
                    th
         January 10 – Alejandra González Dillon – Enlace Integral
         Ms. González contacted us because she does the PR for “The Sebastian” hotel in Vail. We agreed on meeting further ahead to discuss possible
         ways to work together.
                    th
         January 11 – Lourdes Botello – Balance magazine
         Sent her an email to introduce TravelPIE to her and ask her authorization to send her information on Colorado. She accepted and we now have
         regular communication.
                    th
         January 12 – Paul Brunet – The Business Club Magazine (Monterrey)
         Estrella Woods from Telluride Resorts, forwarded Mr. Brunet’s contact information to find out what Colorado material he’s interested on for his
         publication. Mr. Brunet hasn’t replied so far.
                    th
         January 14 – Efekto TV
         Through the US Embassy Commercial Assistant, the TV show requested material on US destinations they can broadcast in Efekto channel. We
         sent an email to Mr. Juan Carlos Ruiz requesting further details so that we can gather the appropriate material. He will forward us the information
         as soon as he receives it.
                    th
         January 17 – Juan Carlos Angulo – Tripearth.com
         Sent an email to introduce the new radio show he’s producing for Radio UNAM. He’s interested on featuring Colorado and agreed on sending his
         proposal for our consideration.
                    th
         January 19 – Liliana García – La Revista
         Sent an email with the PDF version of the article published as a result of her participation in September’s media FAM trip.


         Confirmed Individual Media FAM Trips
                                        Attending         Circulation of                                                               Date Article
Date of FAM Trip        Publication                                             Profile            Theme            Destinations                           PR Value $



         Tuesday, February 15, 2011
                                        Journalist         Publication                                                                  Appeared


                                                                                                                                                               4
                                                                                   Mexicana Airline’s
                                                                                    business class in-                                                    September - ESPN
                                                                                                                                  Denver, Colorado
                                                                                     flight magazine.                                                      story on IVESCO    82,667.73 USD
                                                                                                              National Parks,     Springs, Manitou
                      Elite magazine,                           Elite – 10,000          ESPN is the                                                               field       ESPN
                                          Enrique Escalona                                                   Sports scene and     Springs, Durango,
      July           ESPN en español,                          ESPN – 80,000       Spanish version of                                                     September – Mesa
                                           David Paniagua                                                   urban experience in   Mesa Verde,
                      LaGiraffe.com                           LaGiraffe – 8,000     the US magazine.                                                            Verde in      7,924.60
                                                                                                                  Denver          Durango - Silverton
                                                                                    Only a small % of                                                        LaGiraffe.com    LaGiraffe.com
                                                                                                                                  train
                                                                                   the content is from
                                                                                     the US version.



             Group Media:
                                             Attending        Circulation of                                                                                  Date Article
Date of FAM Trip       Publication                                                             Profile                    Theme           Destinations
                                             Journalist        Publication                                                                                     Appeared           PR Value $
                                                                                                                                         Denver, Vail,
                                                                                  Mexico’s most important high-
                                                                                                                                        Aspen, Durango,
                       Bleu & Blanc       Hilda Dominguez         43,800          end travel magazine. It                                                                     28,680 USD per
September 9 – 15                                                                                                                          Mesa Verde,             TBD
                        magazine             (Co-editor)          monthly         celebrated its 10th anniversary                                                             page
                                                                                                                                        Black Canyon of
                                                                                  this month.
                                                                                                                                         the Gunnison
                                                                                                                                         Denver, Vail,
                                                                                  Mexico’s most important high-
                                                                                                                                        Aspen, Durango,
                       Bleu & Blanc      Carlos García Mora                       end travel magazine. It                                                                     28,680 USD per
September 9 – 15                                                  43,800                                                                  Mesa Verde,          Feb 2011
                        magazine           (photographer)                         celebrated its 10th anniversary                                                             page
                                                                                                                                        Black Canyon of
                                                                                  this month.
                                                                                                                                         the Gunnison
                                                                                                                                         Denver, Vail,
                                                                                  Mexican edition of the
                                                                                                                                        Aspen, Durango,
                                                                  70,560          renowned US magazine. The                                                                   37,322.83 USD per
September 9 – 15             GQ            Mariela Gomez                                                                                  Mesa Verde,        Dec-Jan issue
                                                                  monthly         most popular men’s magazine                                                                 page
                                                                                                                                        Black Canyon of
                                                                                  in México.
                                                                                                                                         the Gunnison
                                                                                  Mexico’s most prestigious
                                                                                                                                         Denver, Vail,
                                                                                  newspaper. It also publishes
                                                                                                                      Denver cultural   Aspen, Durango,
                     De viaje, Reforma   Sergio Zepeda de         145,963         “Mural” in Guadalajara and “El
September 9 – 15                                                                                                      scene and five      Mesa Verde,        September 26th   123,917.6 USD
                        newspaper         Alba (journalist)        weekly         Norte” in Monterrey. Contents
                                                                                                                      neighbourhoods    Black Canyon of
                                                                                  are shared in these three
                                                                                                                                         the Gunnison
                                                                                  editions.
                                                                                  Mexico’s most prestigious
                                                                                                                                         Denver, Vail,
                                                                                  newspaper. It also publishes
                                                                                                                                        Aspen, Durango,
                     De viaje, Reforma   Yolanda Garduño          145,963         “Mural” in Guadalajara and “El                                                              30,000 USD per
September 9 – 15                                                                                                                          Mesa Verde,          Sept 2010
                        newspaper         (photographer)           weekly         Norte” in Monterrey. Contents                                                               page
                                                                                                                                        Black Canyon of
                                                                                  are shared in these three
                                                                                                                                         the Gunnison
                                                                                  editions.
                                                                                  High-end magazine with a                               Denver, Vail,
                                                                                  monthly print-run of 10,000                           Aspen, Durango,
                                           Liliana García         10,000                                                                                                      24,000 USD per
September 9 – 15        La Revista                                                copies. Half of it is distributed                       Mesa Verde,             TBD
                                                Brena             monthly                                                                                                     page
                                                                                  to a VIP database                                     Black Canyon of
                                                                                  (personalized copies)                                  the Gunnison



             Media Events:




             Tuesday, February 15, 2011                                                                                                                                            5
Travel Trade Promotions

Current Co-ops:
Company           Details                                      Dates                Partners   On-Line OR Off-Line          Results


Tac Tours         OFFLINE CAMPAIGN – CONSUMER                   Ski season 201 -                           Off line
                                                                      2011

Servicios de      OFFLINE CAMPAIGN – CONSUMER                   Ski season 201 -                           Off line
viaje 365                                                             2011

Holam             OFFLINE CAMPAIGN – CONSUMER                   Ski season 201 -                           Off line
                                                                      2011


Trade Contacts/Sales Calls/Sales Leads:

•     Expomayoristas – Mr. Marco Aguilar kept in touch with the association in order to determine type of participation in their 2011 trade show.
      Detailed information will be sent to us further ahead.

•     Turismo Exmar – Ms. Gloria Sala requested brochures on Denver, Beave Creek and Vail. She has a group of 6 people traveling to Colorado
      on the first week of April and wants to provide them brochures of the destinations covered in their itinerary. The material was delivered to her
      along with additional brochures for the other travel agents.

•     ARLAG – A representative from the Guadalajara Trade Show sent us an update on what they have prepared for this year. We confirmed CTO
      assistance and a stand has been reserved on our behalf.

•     Iconn Travel – Followed up with the Sales Department on their feedback working with ski.com and offered to book training seminars for their
      travel agents. Dates will be determined during the first days of January.

•     Ofertas Turísticas – Followed-up on their feedback working with ski.com and agreed on scheduling product training sessions for January’s
      second / third week.


Travel Trade Events, Trainings, Seminars, Workshops:
           nd                                                                                  th
Ofertur – 2 winter product training based on ski.com Colorado products took place on January 26 . This is the first ski season they sell thus the
travel agents require several seminars to improve their sales tools for this product.

Trade FAMS (Group or Individual):
    Date of FAM                                                                                                       Participating
                        Company          Attending personnel           Title             Profile / Current product                         Results
        Trip                                                                                                          Destinations




Tuesday, February 15, 2011                                                                                                                               6
Travel Tradeshows:
Telluride Ski Resort product training for travel agents.
Consumer Promotions

Consumer-Related Programs (Consumer shows/Consumer leads): 1

Consumer Inquires without brochure fulfilment:

Distribution of Materials for corresponding Month and Cumulative Amount to date:

Month                                                          www.colorado.com              Other – telephone/ email request       Total
July 2010                              0                                                 2                                      2
August 2010
September 2010
October 2010
November 2010
December 2010
January 2011                           1                                                 -                                      1
February 2011
March 2011
April 2011
May 2011
June 2011
Total

                                                                   Colorado Fulfilment Stats 2009
Total fulfilment graph
                                                                     200
                                            No of packs sent




                                                                     150
                                                                     100
                                                                      50
                                                                       0
                                                                           Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

                                                                           Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
                                     Packs (Colorado.com                    67
                                     requests)
                                     Trade packs (phone                     75
                                     requests)
                                     Consumer packs (phone                   3


Tuesday, February 15, 2011
                                     requests)
                                                                                                                                            7
                                        MARKET INTELLIGENCE

                                                     Economy
                                 Jan         Feb        March         April        May         June

Exchange Rate (U.S)             12.97        12.87       12.35        12.28       12.68        12.90

Consumer Confidence
                                 82.1        80.6         81.8        82.5         84.6        87.5
Index


                                 July      August        Sept       October        Nov         Dec

Exchange Rate (U.S)             13.35        13.26       12.82        12.43       12.33        12.41

Consumer Confidence
                                 87.4        88.7         91.6        92.05       88.50
Index
Source: Banco de Mexico; National Statistics, Geography and Information Institute (INEGI); Oanda.com



BASIC GOODS COSTS HURTING MEXICANS
(From The News. January 2, 2011)
While tortillas, natural gas and gasoline registered price hikes in 2010, authorities said Thursday that
the cost of these basic goods is expected to increase again in 2011, negatively affecting the economy
of poorer Mexican families.
Throughout 2010, the price on tortillas rose by as much 2 pesos per kilo, depending on the area. In
some regions, the Federal Consumer Protection Agency (Profeco) said, the price of tortillas increased
from 8 pesos to 12 pesos per kilo, while in other states, tortillas cost between 13 and 15 pesos a kilo.
Nonetheless, Profeco officials said that there is no justification for the rise since many other basic
products, including corn, experienced a price drop in the international marketplace. The price of a
tortilla, Profeco said, is established by the cost of corn.
The price of gasoline went up 10 times this year. Authorities said that regardless of Profeco’s official
dispositions, tortillas will most likely go up again in 2011. Profeco also predicted that gasoline will
undergo several increases next year, although these rises will be gradual.
Last November, the Treasury and Public Finance Secreariat (SHCP) said that the rise in gasoline
prices in 2011 would be similar to that of 2010, meaning magna, premium and diesel gasoline will rise 8
cents per liter every month. The government agency said that this gradual rise does not mean that
Mexico’s rates are above international standards. Natural gas prices are expected to rise by 5 cents a
cubic liter every month.

LOZANO UPGRADES 2010 JOB NUMBERS
Treasury Secretariat Predicts 4% Growth for Nation
(From The News. January 5, 2011)
The head of the Labor Secretariat, Javier Lozano Alarcón said Tuesday that the Mexico’s Social
Security Institute (IMSS) registered 730,348 new formal jobs in 2010. He said that these numbers
represent an increase of 5.3 percent compared to 2009.
At a press conference and accompanied by the Secretary of Treasury, Ernesto Cordero, the head of
the Labor Secretariat said that the service, processing and commerce sectors created 80 percent of

Tuesday, February 15, 2011                                                                             8
positions in 2010.
He said that the the processing industry contributed to the creation of up to 274,209 new jobs, which
was followed by the service industry with 178,637 jobs, and commerce with 136,968 positions. The
official pointed out that 70.1 percent of the total number of jobs in the country were permanent, while
the rest were temporary.
Lozano Alarcón explained that the current figures are less than the 962,000 jobs predicted in
November, 2010. “Whether this is a good or a bad year, we experienced an unfortunate setback in
December,” he said. “We lost about 231,755 jobs last month.”
In turn, the Secretary of the Treasury was happy to announce that this year, the economy will grow by
4.0 percent. He said that the Treasury and Public Finance Secretariat (SHCP) will keep a thorough
record of economic growth in the country. He pointed out that the economic acceleration of the second
semester of 2010 was favorable for the country and will allow Mexico to develop economically.
“I know we will have a great year, economically speaking, of course,” he said.
In related news, union leaders do not share the optimism of the president regarding employment, as the
balance is still negative despite the progress mentioned by the Secretary of Labor, and the Secretary of
Treasury.
The substitute general secretary of Mexico’s Confederation of Workers (CTM), Carlos Aceves del
Olmo, said that the job positions that were lost in 2009 due to the world economic crisis had not been
recovered, as there are still two million unemployed Mexicans.
However, Aceves said he trusted that in 2011 there would be more jobs created, as there are several
new companies. He added that the federal government must increase its efforts to solve this problem.

U.S. STIMULUS TO SUSTAIN MEXICO’S RECORD RUN
(From The Wall Street Journal. January 5, 2011)
Mexico's highflying stocks likely still have room to rise in the first quarter, as U.S. economic stimulus
further drives demand for Mexican exports after a solid 2010 recovery and domestic consumption plays
a bigger role in local growth.
The IPC index of the 35 most-traded stocks rose 20% last year — 27% in dollar terms—and closed at a
record 38550.79. The index could reach 40000 to 40500 by the end of March, said Gerardo Copca,
head of capital markets for the local research firm Metanalisis.

U.N. PREDICTING AN ECONOMIC DOWNTURN
(From The News. January 19, 2011)
Mexico’s economy will slow down to a growth of 3.4 percent this year and a 3.5 percent growth in 2012,
the United Nations (UN) said on Tuesday.
During the presentation of the World Economic Situation and Prospects 2011 report, Alex Izurieta, the
Senior Economic Affairs Officer in the Development Policy and Analysis Division of the UN, said that
Mexico will feel the effects of the deceleration of the United States’ and the world’s economies in 2011
and 2012 because the Mexican economy, along with the Central American and Caribbean economies,
are dependent on the economic performance of the United States.
In addition to the deceleration of the economy of developed countries, exports could also slow down
because national currencies in some Latin American countries will revaluate and the manufacturing
sector will suffer from these changes, Izurieta said.
Luis Foncerrada, the director of Mexico’s Research Center for the Private Sector, said that Mexico’s
Gross Domestic Product (GDP) in 2011 may reach a growth 4.3, 4.5, or even 4.8 percent. He said that
Mexico had to handle its capital flow wisely in order to profit from it. One way to control the capital flow
is to keep a close eye on interest rates, Fonserrada said.
According to the report, Latin American and Caribbean economies grew a total of 5.6 percent last year
but the economic growth in this region may drop to 4.1 percent this year and 4.3 percent in 2012.

CALDERON: MEXCO UP TO TASK
(From The News. January 21, 2010)




Tuesday, February 15, 2011                                                                                 9
During the announcement of a US$540-million investment by General Motors (GM) to modernize the
assembly plant in Toluca, State of Mexico, President Felipe Calderón Hinojosa said Thursday that the
country has sufficient funds to face any crisis and pointed out that current reserves are double the
amount of Mexico’s foreign debt.
Accompanied by State of Mexico Governor, Enrique Peña Nieto, the President urged every sector in
the country to support Mexico and make it a winner in order to entice foreign companies into investing.
“Car sales in Mexico have yet to experience an upsurge because people are still frightened and scared
of what’s to come,” he said.
“But once the data regarding the economic growth of the country is released, people will once again
begin to trust the market,” Calderón added.
He said that the country underwent the recent crisis due to “brutal” devaluations. “People used to talk
about devaluations and out of the blue, along came the 1994 devaluation,” he noted. “Money suddenly
went from one place to the other, and we were told that the Central Bank of Mexico (Banxico) had no
money and that everyone in the country would suffer.”
Calderón said that there are enough international reserves amounting to US$116.5 billion, to sustain
any kind of global economic crisis.
The President thanked GM for its investment since it represents the confidence the company has in
Mexico. He also congratulated the employees for being among the best in the world regarding car
manufacturing.
“I hope that we Mexicans continue to work as efficiently as we always have. Let’s make a commitment
to make our country a winner, one of the best in the world. Our will and courage will make us
successful,” he noted.
He finally urged the Mexican population to be competitive so that companies do not move to other
nations.



                                   Outbound Travel Market
General



Long haul



                                  Competitive Environment
Competitor Spend/Activity


Routes



                                       Consumer Trends
General


Lifestyle

Tuesday, February 15, 2011                                                                           10
Socio Demographic


Internet

MEXICO LAGS BEHIND INTERNET EXPANSION
(From The News. January 11, 2011)
The Director of the Communications and Technology Department of the Monterrey Institute of
Technology and Higher Education (ITESM) said Sunday that with more than 30 million Internet users
around the country, Mexico occupies 15th place worldwide regarding the penetration of said service in
the population. However, compared to the number of people in the country, Mexico is still below several
Latin American nations on the list.
In an interview, the specialist explained that the technology has yet to spread its scope in the country,
since the number of people who have the service is less than 25 percent of the total population, which
means that Mexico has a long way to go.
He pointed out that compared to other Latin American nations, Mexico is below countries including
Chile, Colombia and Brazil. The situation, he said, is worsened by the fact that rapid Internet services in
the country do not go over 2 megabites (units of information per second), while in other countries, the
average speed is 30 megabites.
“Our Internet service is slow and considerably more expensive than, for example, Spain,” he said.
“Actually, it is twice the cost of the United States, Japan, Korea, Italy and France. And the speed there
is 30 times faster than ours.”
He said that it is necessary to promote accessibility to the service. He recognized that the Federal
Telecommunications Commission (Cofetel) is working hard to implement more efficient broadband
services and entice other companies to join the market fray.



                                        Travel Trade Trends

Travel Agents


Tour Operators


Airlines

LOW-COST AIRLINE TO LAUNCH FRESNO SERVICE
(From Travel Weekly. January 5, 2011)
Volaris plans to launch flights between Guadalajara and Fresno Yosemite Airport in California by
midyear. The Mexico City-based carrier hopes to fill a void left by the collapse of Mexicana Airlines last
August, which had served Fresno with a daily flight from Guadalajara.
That grounding left Fresno without direct international service for the first time since March 2006.
"Fresno is one of the cities Volaris will open in the first six months of this year," said spokeswoman Sai
Irene Sanchez Correa. "It will be our fifth city in the U.S."
Other U.S. gateways that could be added by Volaris in 2011 are Las Vegas; Phoenix; Sacramento,
Calif.; and Fort Lauderdale, according to CEO Enrique Beltranena.
Volaris currently serves three California destinations: Los Angeles, Oakland and San Jose. It launched
service to Chicago on Dec. 13.

Tuesday, February 15, 2011                                                                              11
Details of the Fresno service, including the start date, flight schedule and fares, will be announced
shortly.
The carrier began operations in 2006, competing head to head with Aeromexico and Mexicana on
some routes by offering lower fares.
Volaris and Southwest announced a codeshare agreement in November.

MEXICANA WON’T RESUME FLIGHTS THIS MONTH
(From The News. Thursday, January 6, 2011)
Mexicana de Aviación (Mexicana) will not resume flights on Jan. 24, it will only resume its commercial
operations, Humberto Treviño, the Communications and Transportation under-secretary, said on
Wednesday.
“Commercial operations, not flights, will resume on January 24,” Treviño said after a meeting with Juan
Molinar, the Communications and Transportation Secretary, Javier Lozano, the Labor Secretary and
representatives of Mexicana and investors.
Treviño said that Mexicana has already reached agreements with 51 percent of its creditors. In
December, Molinar said that Mexicana had to achieve this percentage in order to start selling tickets
again. The airline is conducting negotiations with different parties with the aim of relaunching its
services as soon as possible.
The General Direction of Civil Aeronautics is working to ensure that Mexicana has all the necessary
certifications and authorizations to fully resume operations. Now that Mexicana has reached
agreements with its labor force, it can focus on agreements with possible investors both national and
foreign. Treviño said that this was a “very delicate” matter because investors had different advantages
and interests. There are enough investors interested in injecting money into the airline that it is possible
to raise the US$200 million that Mexicana needs to recover, he added.

VOLARIS TO LAS VEGAS
(From Buen Viaje. January 10, 2011)
“Low cost” carrier, Volaris, announced that today it will start daily, non-stop servie between Guadalajara
and Las Vegas, with the following schedule:
Departs Guadalajara 13:00 hrs., arrives Las Vegas 14:20 hrs.
Departs Las Vegas 15:50 hrs., arrives Guadalajara 21:00 hrs.

DOT FINES AEROMEXICO FOR BREAKING FARE-DISPLAY RULES
(From Travel Weekly, January 12, 2011)
Aeromexico accepted a cease-and-desist order from the Transportation Department and agreed to pay
a fine for violating the government’s guidelines on Internet fare displays.
The agreed penalty amount is $60,000, but half will be waived if the carrier refrains from similar
violations for one year.
According to the DOT, Aeromexico displayed fares on its website that did not include fuel surcharges.
The DOT also alleged that the website failed to disclose other fees and taxes "at the first point the fares
were disclosed to consumers."
Aeromexico said the violations were inadvertent and that it took immediate corrective action.

MEXICANAN’S RETURN STILL UP IN THE AIR
(From Travel Weekly. January 12, 2011)
Mexicana, which suspended all flights last August, will open ticket sales again on Jan. 24 but does not
yet have a date to return to the skies, a transport official said.
"Jan. 24 is maintained as a start date for commercial operations, but not for aeronautical operations,"
said Mexico's deputy transport secretary, Humberto Trevino, after meeting with airline representatives,
potential investors and government officials on Jan. 6.
Trevino said that a deal was close for the $200 million needed by the airline to return to the skies.
PC Capital, the main investment firm expressing interest in Mexicana, has sought to join with other
companies, including several outside Mexico, to gather the financing.


Tuesday, February 15, 2011
Mexicana was likely to return to a handful of popular domestic routes and to select destinations in the
                                                                                                         12
U.S. and Canada, according to the flight attendants' union.
Mexicana previously transported 22,000 passengers on 220 daily flights, according to the carrier.
The 89-year-old airline suspended all flights on Aug. 28 and shortly after was granted bankruptcy
protection. Mexicana initially blamed its financial woes on the high cost of labor, after failing to reach a
deal with unions on major cost-cutting measures.

UNITED ANNOUNCES NEW NON-STOP SERVICE BETWEEN LOS ANGELES AND
GUADALAJARA
(From Just 4 Airlines. January 12, 2011)
United Airlines today announced daily nonstop service between Los Angeles International Airport (LAX)
and Guadalajara, Mexico (GDL), beginning May 3, subject to Mexican government approval. This
service will be operated by Continental Airlines.
"The new service complements our existing flights to Guadalajara from Houston and adds to our
industry-leading service to Mexico," said Brian Znotins, Managing Director International Planning,
United Continental Holdings, Inc. "No other carrier offers as many departures from the U.S. to Mexico
and we continue to increase frequencies and add routes."
Flight CO672 will depart Los Angeles at 8:20 a.m. daily, arriving in Guadalajara at 1:15 p.m. The return
flight (CO673) departs Guadalajara at 2:10 p.m. daily, arriving in Los Angeles at 3:30 p.m. The Los
Angeles - Guadalajara service will be operated with a Boeing 737-800 aircraft, with seating for 160
customers (16 in first class and 144 in economy).
Mexico's second-largest city, Guadalajara is home to some of the nation's major cultural symbols,
including mariachi music and tequila, as well as historic architecture, works of famed mural artist Jose
Clemente Orozco, distinctive ceramics and ecotourism. Continental currently serves Guadalajara 38
times weekly from its hub in Houston.
United operates more departures to more destinations from Los Angeles than any other carrier.
Continental also began daily nonstop service between Los Angeles and Leon/Guanajuato, Mexico
(BJX), on Nov. 1. In addition, United launched a second daily flight from Los Angeles to Mexico City on
Oct. 15, and a third daily flight on Jan. 4.
Continental serves 30 destinations in Mexico, more than any other airline from the U.S.

VIRGIN AMERICA LAUNCHES LOS CABOS SERVICE
(From Travel Weekly. January 12, 2011)
Virgin America launched its first route to Mexico from the U.S. with nonstop service five days a week
from San Francisco to Los Cabos.
Los Cabos is the 13th destination served by Virgin Atlantic.
"This new route serves as a testament to our destination's strong tourism economy and our
commitment to providing each visitor with an unmatched vacation experience," said Gonzalo Franyutti
de la Parra, president of the Los Cabos Convention & Visitors Bureau.
Virgin America will add daily, seasonal flights to Cancun from Los Angeles beginning Jan. 19 and from
San Francisco on Jan. 20. Both services run through May 4.

DELTA LAUNCHES MEMPHIS-MEXICO CITY FLIGHT
(From Travel Weekly. January 19, 2011)
Delta began operating weekly service between Memphis and Mexico City over the weekend.
It is Delta's sixth international destination from Memphis. The airline is flying 124-seat Airbus A319s on
the route.
Meanwhile, SkyTeam partner Aeromexico added a second daily roundtrip between San Antonio and
Mexico City. The additional flight is operated on a 124-seat Boeing 737.

MEXICANA TESTING THEIR AIRPLANES
(From The News. January 21, 2010)
After being shut down for 145 days, Mexicana Airlines on Thursday began to prepare for its reopening
at the Mexico City International Airport.


Tuesday, February 15, 2011                                                                                 13
Miguel Ángel Yúdico Colín, the leader of the National Union of Workers in Transportation,
Manufacturing, Aviation and Related Services (SNTTTASS), mentioned that two test flights were
carried out on Wednesday to check the airplanes’ condition.
In an interview, he said that Mexicana is on its way to recovering its flight permits, and is not yet being
allowed commercial flights.
Yúdico Colín regretted the fact that Mexicana was absorbing the expenses of the tests as PC Capital
has not provided any money, yet. However, Yúdico expressed his joy over the test flights, as they are
the first sign that Mexicana is restructuring.
Lizett Clavel Sánchez, the leader of the Flight Attendants Labor Union (ASSA) has agreed to providing
personnel for this weekend’s tests.
Javier Lozano Alarcón, the Secretary of Labor, announced via Twitter that the Mexicana’s pre-
operational plan is developing successfully.

MEXICANA INVESTORS FACE AUDIT
(From The News. January 26, 2011)
MEXICO CITY – PC Capital is investing US$200 million in Mexicana de Aviación so that the airline can
begin operations once again in the near future.
Mexicana’s Administrator, Javier Christlieb said Monday that although PC Capital has stated that the
investment is a reality, there are still several legal procedures to pursue. “PC Capital has brought
together a group of investors to inject money into the company so that Mexicana can fly again,” he said.
“The names of these investors have been presented to the relevant authorities and could be revealed
to the public along with a list of the new administration council members of the company,” said
Christlieb. “Within the next few weeks, these investors will be audited, and Mexicana will undergo a
restructuring process.”
He stated that Tenedora K has reached an agreement with PC Capital to transfer the airline’s shares to
the latter. He noted that the process of auditing the shares has already begun.
Christlieb said that the company has 39 pilots, 80 flight attendants, and 846 technicians that have
already been certified. “If everything goes well, Mexicana will begin to sell tickets by early February and
begin operations by mid-February,” he said.


General



                                            Media Trends
Print – newspapers
Milenio newspaper hasn’t published the travel section since September and still haven’t decided who
will be on charge of it. All travel sections published stories on winter vacation and ski resorts around the
world.

Print – magazines
“Grupo Medios Editores” (they own Bleu&Blanc magazine) is undergoing a radical restructure of their
magazines personnel. Several people have been fired and it will take at least 3 months to find out what
the final structure will be. Since most magazines have a bimonthly edition in December (Dec-Jan) very
little activity took place during January on this sector.

Online
Online presence continues growing and gaining strength among all printed media.
LaGiraffe.com website launched a new design + editorial sections as part of their first anniversary
celebration.


Tuesday, February 15, 2011                                                                               14
Broadcast


General


                                          General News
CALDERON SHUFFLES CABINET
(From The News. January 8, 2011)
Mexican President Felipe Calderón Hinojosa shuffled his cabinet on Friday, changing the two
secretaries in charge of energy, communications and transportation in order make his government “the
infrastructure administration.”
Calderón said he wants the new cabinet secretaries to provide better roadways and more accessible
telecommunications services to Mexicans.
Calderón named Harvard-educated economist Dionisio Pérez-Jácome to replace Juan Molinar
Horcasitas as Secretary of Communications and Transportation. Molinar resigned to participate in
activities of Calderón’s conservative National Action Party (PAN), which is preparing for the run-up to
the 2012 presidential elections.
Calderón said he wants Pérez-Jácome, a former Treasury Department official, to create “an
atmosphere of real competition” in the sector, so Mexicans can get Internet, telephone and other
services on better terms.
Calderón named Yale-educated economist José Antonio Meade to replace Georgina Kessel as Energy
Secretary. Kessel will head the Banobras development bank.
Calderón said he wants Meade to carry out a “ground-up transformation of these state-owned
companies, to eliminate privileges and make them known for transparency and accountability.”
The Institutional Revolutionary Party (PRI) in the Senate said that Calderón made changes in his
cabinet because he intended to appoint Ernesto Cordero as the PAN candidate for the presidency of
Mexico. The PAN rejected this statement and said that Cordero was not the only aspiring candidate
that the PAN had.
Carlos Jiménez Macías, the spokesman of the parliamentary group of the PRI in the Senate, said that
the changes in the cabinet where positive but they seemed to favor Cordero’s chances of becoming the
PAN presidential candidate.
Alejandro Zapata Perogordo, a PAN senator, said that both Pérez and Meade were suited to become
Communications and Energy secretaries, respectively, and said that these changes did not intend to
fuel Cordero’s aspirations.




Tuesday, February 15, 2011                                                                          15
Monthly Report – TravelPIE – México                                        CTO Mexico – February 2011
Fast Facts:

  Highlight 1:
         The second Colorado Sales Mission took place from February 21st to 23rd. The three most important
         cities in México were visited (Monterrey, Guadalajara and Mexico city) in order to meet with wholesalers
         and besides Michael Driver from CTO, Jennifer Viditz – Ward (Vail Resorts), Lindsey Gillon (Crested
         Butte) and Diana Carey (Ski.com) were present in all the sales calls.

  Highlight 2:
        Training sessions were done with the most important wholesalers in order to update them on what resorts
        will be open in Colorado for Holy Week. The sales calls had during the Colorado Sales Mission enhanced
        the overall impact / presence Colorado has among the most important wholesalers in Mexico.

Public Relations
     • Numbers of Media Calls/Follow up Calls: 30
     • Press Release sent: 1
     • Attended: 1

     •   Total Monthly Media Equivalency compared Year to Date in US Dollars:
         $139,917.62 (January 2009 $583,538.92 USD = 443,621.3 USD less this year)
     •   Total Cumulative Equivalency compared Year to Date in In-Market currency:
         $35,921,195.59 MXP

     •   TravelPIE PR Placed Monthly Media Equivalency compared Year to Date in US Dollars:
         $139,917.62 (January 2009 $505,577.92 USD = 365,660.30 USD less this year)
     •   TravelPIE PR Placed Cumulative Equivalency compared Year to Date in In-Market currency:
         $35,344,169.67 MXP

Travel Trade
     • Number of Sales Calls: 40
     • Number of Trade Inquiries: 4
     • Attended: 1

Current Running Co-Ops
     • Tac Tours (Monterrey) – Printed advertising on travel section of “El Norte” newspaper and “Publitur”
        trade magazine

Consumer Fulfilment
    • Number of Consumer Inquiries:0
    • Distribution of Materials: 0

US Dollar Exchange Rate (December) 12.14
   • Compared to 12.92 in January 2010

Online Activities:
 CTO Official Website Visitors (Mexico’s version of Colorado.com): 1,398 visits
 Website Visitors from Mexico: 518




Friday, July 22, 2011                                                                                           1
          TravelPIE – Monthly Report
          Public Relations

          Total Media Equivalency Clipping Evaluation Report – TravelPIE
                                                                                                            Evaluation
                                                    Date of                               Circulation and                Evaluation in USD –                              Details
  Publication                    Title                               Journalist                             (in market                         Source
                                                  Publication                                  Type                        Ad Equivalency
                                                                                                            currency)
                                                                                        43,800 copies                                                   The 5 pages story talks about Mesa Verde
  Bleu & Blanc                Mesa Verde            February      Hilda Dominguez        Monthly upscale     143,400          47,248.76         PFG     National Park and the attractions available
                                                                                         travel magazine                                                in the region.
                                                                                            “Reforma”
                                                                                                                                                        The 3 page story (and cover story) talks
                                                    January       Sergio Zepeda de      newspaper Travel
De viaje, Reforma              Telluride                                                                     281,250          92,668.86         GA      about Telluride as a world class ski
                                                      30th              Alba             section 145,963
                                                                                                                                                        destination.
                                                                                              weekly

          Source Key –
          PFI or PFG             Press FAM result (individual or group)
          PR                     Result of press release
          PC                     Result of press conference/media event
          P                      Result of the promotion
          GA                     Result of general PR activity
          NA                     Not Assisted by CTO

          Total Placed Media Equivalency Chart Report – Generated by TravelPIE
           Month                 Total Placed Equivalency FY 10 USD       Combined Equivalency USD
                 July 2010       $23,880.7                                $23,880.7
             August 2010         $300,393.27                              $324,273.97
            September 2010       $494,893.96                              $819,167.93
             October 2010        $450,684.39                              $1,269,852.32
            November 2010        $ 56,162.98                              $ 1,326,015.3
            December 2010        $876,045.17                              $2,202,060.47
             January 2011        $649,551.95                              $2,851,612.42
            February 2011        $139,917.62                              $2,991,530
                March 2011
                 April 2011
                 May 2011
                 June 2011

                  TOTAL          $2,991,530                               $2,991,530




          Friday, July 22, 2011                                                                                                                                                      2
Total Media Equivalency Chart Report – Generated from all sources on Colorado
Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $36,430.7                            $36,430.7
  August 2010     $300,393.27                          $336,823.97
 September 2010   $494,893.96                          $831,717.93
  October 2010    $450,684.39                          $1,282,402.32
 November 2010    $ 80,679.11                          $ 1,363,081.43
 December 2010    $885,384.4                           $2,248,465.83
  January 2011    $649,551.95                          $2,898,017.78
  February 2011   $139,917.62                          $2,991,530
   March 2011
   April 2011
    May 2011
   June 2011

     TOTAL        $2,991,530                           $2,991,530




Friday, July 22, 2011                                                             3
             Press Releases:
             A “Holy week in Colorado” press release was distributed to our media database.

             B-Roll, Video and Photo Usage:


             Update of Media Calls/Press Contacts:


             Confirmed Individual Media FAM Trips
                                              Attending         Circulation of                                                                                 Date Article
Date of FAM Trip         Publication                                                      Profile                   Theme               Destinations                                    PR Value $
                                              Journalist         Publication                                                                                    Appeared
                                                                                    Mexicana Airline’s
                                                                                     business class in-                                                      September - ESPN
                                                                                                                                    Denver, Colorado
                                                                                      flight magazine.                                                        story on IVESCO        82,667.73 USD
                                                                                                            National Parks,         Springs, Manitou
                       Elite magazine,                           Elite – 10,000          ESPN is the                                                                 field           ESPN
                                           Enrique Escalona                                                Sports scene and         Springs, Durango,
      July            ESPN en español,                          ESPN – 80,000       Spanish version of                                                       September – Mesa
                                            David Paniagua                                                urban experience in       Mesa Verde,
                       LaGiraffe.com                           LaGiraffe – 8,000     the US magazine.                                                              Verde in          7,924.60
                                                                                                                Denver              Durango - Silverton
                                                                                     Only a small % of                                                          LaGiraffe.com        LaGiraffe.com
                                                                                                                                    train
                                                                                    the content is from
                                                                                      the US version.



             Group Media:
                                              Attending        Circulation of                                                                                    Date Article
Date of FAM Trip        Publication                                                           Profile                       Theme           Destinations
                                              Journalist        Publication                                                                                       Appeared               PR Value $
                                                                                                                                             Denver, Vail,
                                                                                   Mexico’s most important high-
                                                                                                                                           Aspen, Durango,
                        Bleu & Blanc       Hilda Dominguez         43,800          end travel magazine. It                                                                           28,680 USD per
September 9 – 15                                                                                    th                                       Mesa Verde,             TBD
                         magazine             (Co-editor)          monthly         celebrated its 10 anniversary                                                                     page
                                                                                                                                           Black Canyon of
                                                                                   this month.
                                                                                                                                            the Gunnison
                                                                                                                                             Denver, Vail,
                                                                                   Mexico’s most important high-
                                                                                                                                           Aspen, Durango,
                        Bleu & Blanc      Carlos García Mora                       end travel magazine. It                                                                           28,680 USD per
September 9 – 15                                                   43,800                           th                                       Mesa Verde,          Feb 2011
                         magazine           (photographer)                         celebrated its 10 anniversary                                                                     page
                                                                                                                                           Black Canyon of
                                                                                   this month.
                                                                                                                                            the Gunnison
                                                                                                                                             Denver, Vail,
                                                                                   Mexican edition of the
                                                                                                                                           Aspen, Durango,
                                                                   70,560          renowned US magazine. The                                                                         37,322.83 USD per
September 9 – 15            GQ              Mariela Gomez                                                                                    Mesa Verde,        Dec-Jan issue
                                                                   monthly         most popular men’s magazine                                                                       page
                                                                                                                                           Black Canyon of
                                                                                   in México.
                                                                                                                                            the Gunnison
                                                                                   Mexico’s most prestigious
                                                                                                                                             Denver, Vail,
                                                                                   newspaper. It also publishes
                                                                                                                      Denver cultural      Aspen, Durango,
                      De viaje, Reforma   Sergio Zepeda de         145,963         “Mural” in Guadalajara and “El                                                               th
September 9 – 15                                                                                                      scene and five         Mesa Verde,        September 26         123,917.6 USD
                         newspaper         Alba (journalist)        weekly         Norte” in Monterrey. Contents
                                                                                                                      neighbourhoods       Black Canyon of
                                                                                   are shared in these three
                                                                                                                                            the Gunnison
                                                                                   editions.
                                                                                   Mexico’s most prestigious                                Denver, Vail,
                      De viaje, Reforma   Yolanda Garduño          145,963                                                                                                           30,000 USD per
September 9 – 15                                                                   newspaper. It also publishes                            Aspen, Durango,        Sept 2010



             Friday, July 22, 2011
                         newspaper         (photographer)           weekly                                                                                                           page
                                                                                   “Mural” in Guadalajara and “El                            Mesa Verde,

                                                                                                                                                                                          4
                                                                          Norte” in Monterrey. Contents                             Black Canyon of
                                                                          are shared in these three                                  the Gunnison
                                                                          editions.
                                                                          High-end magazine with a                                    Denver, Vail,
                                                                          monthly print-run of 10,000                               Aspen, Durango,
                                       Liliana García       10,000                                                                                              24,000 USD per
September 9 – 15        La Revista                                        copies. Half of it is distributed                           Mesa Verde,         TBD
                                            Brena           monthly                                                                                             page
                                                                          to a VIP database                                         Black Canyon of
                                                                          (personalized copies)                                      the Gunnison



         Media Events:

         Attended Vail Resorts reception in representation of CTO Mexico.
         CTO reception took place on Monday 21st at the W Hotel as part of the 2011 Sales Mission.

         Travel Trade Promotions

         Current Co-ops:
         Company           Details                                    Dates                     Partners      On-Line OR Off-Line               Results


         Tac Tours         OFFLINE CAMPAIGN – CONSUMER                 Ski season 201 -                                  Off line
                                                                             2011

         Servicios de      OFFLINE CAMPAIGN – CONSUMER                 Ski season 201 -                                  Off line
         viaje 365                                                           2011

         Holam             OFFLINE CAMPAIGN – CONSUMER                 Ski season 201 -                                  Off line
                                                                             2011


         Trade Contacts/Sales Calls/Sales Leads:

         •    Iconn Travel – Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak peak” on the
              summer proposal Colorado has for the Mexican market.

         •    Cuali Viajes – Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak peak” on the
              summer proposal Colorado has for the Mexican market.

         •    American Express – Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak peak” on
              the summer proposal Colorado has for the Mexican market.

         •    Julia Tours – Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak peak” on the
              summer proposal Colorado has for the Mexican market.



         Friday, July 22, 2011                                                                                                                                       5
•   Ofertas Turísticas – Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak peak” on the
    summer proposal Colorado has for the Mexican market.

•   Bargain Tours – Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak peak” on the
    summer proposal Colorado has for the Mexican market.

•   Corporate Travel Services – Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak
    peak” on the summer proposal Colorado has for the Mexican market.

•   Mundomex - Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak peak” on the
    summer proposal Colorado has for the Mexican market.

•   Holam - Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak peak” on the summer
    proposal Colorado has for the Mexican market.

•   Abiega – Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak peak” on the summer
    proposal Colorado has for the Mexican market.

•   Panorama Viajes (Guadalajara) - Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak
    peak” on the summer proposal Colorado has for the Mexican market.

•   Servicios de viaje 365 (Guadalajara) - Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a
    “sneak peak” on the summer proposal Colorado has for the Mexican market.

•   SCTours (Guadalajara) - Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak peak”
    on the summer proposal Colorado has for the Mexican market.

•   Prego (Guadalajara) - Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak peak” on
    the summer proposal Colorado has for the Mexican market.

•   Target Operadora (Guadalajara) - Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a
    “sneak peak” on the summer proposal Colorado has for the Mexican market.

•   Tac Tours (Monterrey) - Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak peak” on
    the summer proposal Colorado has for the Mexican market.

•   Viajes Le Grand (Monterrey) - Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak
    peak” on the summer proposal Colorado has for the Mexican market.

•   PEMA Tours (Monterrey) - Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak peak”
    on the summer proposal Colorado has for the Mexican market.

•   Euromundo (Monterrey) - Met for training on holy week resorts that will be open in Colorado during Holy Week and provided a “sneak peak”


Friday, July 22, 2011
    on the summer proposal Colorado has for the Mexican market.
                                                                                                                                                 6
Travel Trade Events, Trainings, Seminars, Workshops:
Ofertur – 2nd winter product training based on ski.com Colorado products took place on January 26th. This is the first ski season they sell thus the
travel agents require several seminars to improve their sales tools for this product.

Trade FAMS (Group or Individual):
 Date of FAM                                                                                                         Participating
                      Company              Attending personnel        Title              Profile / Current product                           Results
     Trip                                                                                                            Destinations




Travel Tradeshows:
Telluride Ski Resort product training for travel agents.
Consumer Promotions

Consumer-Related Programs (Consumer shows/Consumer leads): 1

Consumer Inquires without brochure fulfilment:

Distribution of Materials for corresponding Month and Cumulative Amount to date:

Month                                            www.colorado.com                 Other – telephone/ email request                   Total
July 2010                              0                                      2                                         2
August 2010
September 2010
October 2010
November 2010
December 2010
January 2011                           1                                      -                                         1
February 2011
March 2011
April 2011
May 2011
June 2011
Total




Friday, July 22, 2011                                                                                                                                  7
                                                  Colorado Fulfilment Stats 2009
Total fulfilment graph
                                                    200




                               No of packs sent
                                                    150
                                                    100
                                                     50
                                                      0
                                                          Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

                                                          Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
                         Packs (Colorado.com               67
                         requests)
                         Trade packs (phone                75
                         requests)
                         Consumer packs (phone              3
                         requests)




Friday, July 22, 2011                                                                                 8
                                        MARKET INTELLIGENCE

                                                   Economy

                              July 10     August    Sept 10   October   Nov 10      Dec 10     Source: Banco
                              Jan 11      Feb 11    Mar 11    Apr 11    May 11      Jun 11     de Mexico;
Exchange Rate (U.S)            13.35       13.26     12.82     12.43      12.33      12.41     National
Exchange Rate (U.S)            12.22       12.14                                               Statistics,
Consumer Confidence                                                                            Geography and
                               87.4        88.7      91.6      92.05      88.5       91.2
Consumer Confidence
Index                                                                                          Information
                               92.3
Index                                                                                          Institute
                                                                                               (INEGI);
Oanda.com

IHG TO INVEST IN MEXICO
(From The News. February 1, 2011)
President Felipe Calderón Hinojosa on Monday welcomed the President of InterContinental Hotels
(IHG) Group PLC’s Americas Region, Jim Abrahamson, who announced an investment of US$500
million in Mexico.
President Calderón said that this investment, which will translate into the construction of 47 hotels, is
proof of the trust international investors have put in Mexico.
According to a press release issued by the presidency, the President is currently working on the
implementation of a tourism program that will focus on several tourism destinations in the country.
During the meeting with Abrahamson, which was held at the presidential residency of Los Pinos,
Abrahamson pointed out that Mexico has great potential to become one of the top five tourism spots in
the world, which will positively impact its economy and create more jobs.
Calderón recognized the efforts of the Mexicans that work every day in the tourist sector. He noted that
a crucial element of tourism-related projects in the country is to intensify the promotion of tourist routes,
as well as to provide information and images that show the beauty and natural, historical and cultural
richness of Mexico.
MEXICO HESITATES TO INTERVENE AS RISING PESO PREASURES ITS EXPORTS
(From The Wall Street Journal. February 8, 2011)
Six years ago, Benjamín Hernández turned his family’s small metal-stamping company into an
exporter. Although the firm barely survived the global economic crisis, it bounced back last year. But
now he has a new worry.
The New York Times
Mexico’s peso is rapidly rising against the United States dollar, which means that the cost of producing
in Mexico for the American market is climbing in dollar terms. But because Mr. Hernandez faces global
competition for his plant’s fire extinguisher brackets, “increasing our price isn’t an option,” he said.
So Mr. Hernández keeps reinvesting in the company, called Bicar, and praying for the United States
economic recovery to continue, to stimulate his sales. “We just have to make a better effort to be more
efficient,” he said.
That seems to be the business attitude of Mexico right now, as the rising peso puts pressure on its
exports even as Mexican policy makers are reluctant to intervene.
“We decided many years ago to bet on a free-floating peso,” the Mexican finance minister, Ernesto
Cordero, said in a radio interview last week. “It has given us good results, and we are convinced of
this.”


Friday, July 22, 2011                                                                                       9
The peso’s value began climbing last year and has increased more than 9 percent since the beginning
of 2010. And now the trend is speeding up, with the peso having risen a full 3 percent so far this year
alone.
As the exchange rate has dipped below 12 pesos to the dollar, the local press is full of speculation over
what it calls “the superpeso.”
The reasons behind the increase are the same as those pushing up currencies in other emerging
markets. Facing low yields in developed countries, investors have bought securities in Latin America
and Asia where returns are higher.
In a number of countries, this “hot money” has set off alarms, raising fears that climbing currencies will
make exports uncompetitive and create asset bubbles. Authorities in several counties, including Brazil,
Chile, Thailand and Korea, have imposed varying controls to try to brake the flow of this speculative
money.
But Mexican authorities have ruled out intervention.
Despite the peso’s increase, Mr. Cordero, the finance minister, said last week that it had not risen as
fast as other Latin American currencies.
Still, the superpeso talk is rooted in concern that fickle investors could leave the country as fast as they
entered, if they sense that the currency’s value cannot hold. In response, the government has been
building up reserves and recently increased a credit line from the International Monetary Fund.
“To any foreign investor in securities, this government is signaling that it is going to hang on to a very
strong currency,” said Rogelio Ramírez de la O, an economist, who argues that the government prefers
a strong peso because it brings stability. “It is a no-brainer to buy the peso.”
But the risk, he said, is that “you are inviting speculators to give you a capital outflow whenever
something changes in the United States, particularly if U.S. interest rates rise.”
Export figures suggest that the strong peso has not caused any harm yet. Although the currency is now
at its strongest level since October 2008, Mexico registered blistering growth in exports, which drove an
economic expansion above 5 percent last year.
Mexican exports rose almost 30 percent in 2010. The standout was the auto industry, where exports
grew 52 percent to a record.
In part the export boom is a rebound from a disastrous 2009, when the economy shrank by 6 percent
as the recession caused demand in the United States for Mexican products to dry up.
And yet, while it is still too early to tell if the rising peso will damp exports this year, it is already forcing
executives to revise the spreadsheets they drew up several months ago as they planned for 2011.
Nicolas M. Guillet, the president of Salzgitter Mannesmann Precisión, the Mexican subsidiary of a
German supplier, said the steel tubes his plants produced for the auto industry were priced in dollars.
But the stronger peso means that his costs for labor, gas and electricity are all rising in dollar terms.
Since he cannot pass the increases on to his customers, the impact is on the bottom line. “It has eaten
a significant chunk of my margin,” he said.
The company, which set up production in 2007 outside Guadalajara, has been studying how to hedge
against the stronger peso. “This creates an extra layer of complexity,” Mr. Guillet said. “Our strength
and skills are in producing good parts at a competitive cost, not in managing currencies.”
Still, even with the pressure from the rising peso, he expects sales to increase 60 percent this year, on
top of a 100 percent increase in 2010.
Mexican manufacturers have several advantages that could help them stay competitive even if the
peso continues to strengthen, said Luis Arcentales, an analyst at Morgan Stanley in New York.
One of those is the transformation of Mexican manufacturing under the North American Free Trade
Agreement. Plants here are now locked into a complex logistical network of suppliers and producers
that is unlikely to unravel overnight simply because costs fall in other countries.
Another advantage is that Mexico’s main competitor, China, is not as much of a threat as it once was,
as Chinese wages rise. A decade ago, Mexican hourly wages were more than 200 percent higher than
Chinese wages. Now, Mexican workers make only about 14 percent more than their Chinese
competitors, according to figures from the International Labor Organization.




Friday, July 22, 2011                                                                                          10
For small producers like Mr. Hernández, the metal stamper, who has begun to rehire the employees he
let go during the recession, his company’s hard-won competitiveness means he can withstand a
stronger peso for some time. But at some point, he said, “everything has its limit.”



                                 Outbound Travel Market
General


Long haul



                                 Competitive Environment
Competitor Spend/Activity


Routes



                                      Consumer Trends
General


Lifestyle


Socio Demographic


Internet



                                    Travel Trade Trends

Travel Agents


Tour Operators


Airlines




Friday, July 22, 2011
General

                                                                                                 11
                        Media Trends

Print – newspapers


Print – magazines


Online


Broadcast


General



                        General News




Friday, July 22, 2011                  12
Monthly Report – TravelPIE – México                                        CTO Mexico – March 2011
Fast Facts:

  Highlight 1:
                                  th
         TravelPIE attended the 8 Trade show organized by “Expomayoristas”, the most important wholesalers’
         association in Mexico. Six strategically located cities were visited (Monterrey, Guadalajara, León,
         Mexico City, Puebla and Mérida) in order to cover the largest territory in the country and training
         sessions were done in Monterrey and Guadalajara (80 attendants in total).

  Highlight 2:
         A strong promotion for ski in semana santa (Easter vacation) was made with all the travel agents met
        along the month. Dates, resorts and flights options were provided along with key messages for the spring
        offer the state has (golf, shopping, ecotourism, etc) and that can perfectly replace Canada’s offer year
        round (the Mexican market to Canada reduced down to 25% of what the amount was before the visa
        imposition).

Public Relations
     • Numbers of Media Calls/Follow up Calls: 25
     • Press Release sent: 1
     • Attended: 1

     •   Total Monthly Media Equivalency compared Year to Date in US Dollars:
         $337,326.57 (March 2010 $2,033,136.5 USD = 1,695,809.93 USD less this year)
     •   Total Cumulative Equivalency compared Year to Date in In-Market currency:
         $40,016,340.14 MXP

     •   TravelPIE PR Placed Monthly Media Equivalency compared Year to Date in US Dollars:
         $337,326.57 (March 2010 $1,837,439.7 USD = 1,500,113.13 USD less this year)
     •   TravelPIE PR Placed Cumulative Equivalency compared Year to Date in In-Market currency:
         $39,439,314.22 MXP

Travel Trade
     • Number of Sales Calls: 40
     • Number of Trade Inquiries: 15
     • Attended: 5

Current Running Co-Ops
     • Tac Tours (Monterrey) – Printed advertising on travel section of “El Norte” newspaper and “Publitur”
         trade magazine

Consumer Fulfilment
    • Number of Consumer Inquiries: 0
    • Distribution of Materials: 0

US Dollar Exchange Rate (December) 12.14
   • Compared to 12.42 in March 2010

Online Activities:
 CTO Official Website Visitors (Mexico’s version of Colorado.com): 1,319 visits
 Website Visitors from Mexico: 344




Monday, April 18, 2011                                                                                         1
           TravelPIE – Monthly Report
           Public Relations

           Total Media Equivalency Clipping Evaluation Report – TravelPIE
                                                                                                            Evaluation
                                                        Date of                          Circulation and                 Evaluation in USD –                               Details
   Publication                    Title                                 Journalist                          (in market                         Source
                                                      Publication                             Type                         Ad Equivalency
                                                                                                            currency)
                                                                                          Weekly radio                                                  Lilliana Maya was invited to talk about
 Perspectiva ABC        Colorado’s agenda for          February     Jose Antonio Lopez   show 250,000                                                   Colorado’s offer for Easter and spring. a
                                                                                                            587,880.45       48,425.07          PC
      Radio             Easter & Spring time             26th             Sosa              listeners                                                   15 minute interview was broadcasted
                                                                                           nationwide                                                   nationwide.
                                                                                          Trade media                                                   The story talks about Colorado’s natural
                           The spirit of the           February
Boletinturistico.com                                                  Deborah Alba       website 12,000      50,000           4,118.61          PC      attractions and focuses on its 4 National
                           American West                 25th
                                                                                         monthly visitors                                               Parks
                                                                                                                                                        A photo of the Black Canyon of the
                                                                                          Trade media
                       Image of the week: Black                                                                                                         Gunnison was posted as the image of the
Boletinturistico.com                                  March 16th      Deborah Alba       website 12,000      50,000           4,118.61          PC
                        Canyon of the Gunnison                                                                                                          week, inviting the website visitors to
                                                                                         monthly visitors
                                                                                                                                                        explore the location.
                                                                                            “Reforma”
                       The Rocky Mountains on                                                                                                           The 3 page story (and cover story) talks
                                                                    Sergio Zepeda de     newspaper travel
De viaje, Reforma        board the Durango-           March 13th                                             281,250          92,668.86         PFG     about Mesa Verde and Durango-Silverton
                                                                          Alba           section 145,963
                          Silverton railroad                                                                                                            railroad.
                                                                                              weekly
                                                                                             “Mural”
                       The Rocky Mountains on                                                                                                           The 3 page story (and cover story) talks
                                                                    Sergio Zepeda de     newspaper travel
  De viaje, Mural        board the Durango-           March 13th                                             281,250         92,668.86          PFG     about Mesa Verde and Durango-Silverton
                                                                          Alba           section 145,963
                          Silverton railroad                                                                                                            railroad.
                                                                                              weekly
                                                                                            “El Norte”
                       The Rocky Mountains on                                                                                                           The 3 page story (and cover story) talks
                                                                    Sergio Zepeda de     newspaper travel
 De viaje, El Norte      board the Durango-           March 13th                                             281,250         92,668.86          PFG     about Mesa Verde and Durango-Silverton
                                                                          Alba           section 145,963
                          Silverton railroad                                                                                                            railroad.
                                                                                              weekly
                        Colorado offers a wide                                                                                                          The story provides a general review on the
                                                                    Victoria Gonzalez      Weekly travel
  Diario Imagen        variety of activities to its   March 14th                                             16,800           1,383.85          PC      information given during CTO Sales
                                                                          Prado          trade newspaper
                                visitors                                                                                                                Mission reception.
                                                                                                                                                        The story provides a general review on the
                        Colorado: a state that         February        Guillermina        Weekly travel                                                 information given during CTO Sales
     Invertour                                                                                               16,800           1,383.85          PG
                              has it all                 27th           Sánchez          trade magazine                                                 Mission reception and describes Colorado
                                                                                                                                                        as a state capable of satisfying all interests

           Source Key –
           PFI or PFG             Press FAM result (individual or group)
           PR                     Result of press release
           PC                     Result of press conference/media event
           P                      Result of the promotion
           GA                     Result of general PR activity
           NA                     Not Assisted by CTO




           Monday, April 18, 2011                                                                                                                                                      2
Total Placed Media Equivalency Chart Report – Generated by TravelPIE
Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $23,880.7                            $23,880.7
  August 2010     $300,393.27                          $324,273.97
 September 2010   $494,893.96                          $819,167.93
  October 2010    $450,684.39                          $1,269,852.32
 November 2010    $ 56,162.98                          $ 1,326,015.3
 December 2010    $876,045.17                          $2,202,060.47
  January 2011    $649,551.95                          $2,851,612.42
  February 2011   $139,917.62                          $2,991,530
   March 2011     $337,326.57                          $3,328,966.57
    April 2011
    May 2011
   June 2011

     TOTAL        $3,328,966.57                        $3,328,966.57




Total Media Equivalency Chart Report – Generated from all sources on Colorado
Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $36,430.7                            $36,430.7
  August 2010     $300,393.27                          $336,823.97
 September 2010   $494,893.96                          $831,717.93
  October 2010    $450,684.39                          $1,282,402.32
 November 2010    $ 80,679.11                          $ 1,363,081.43
 December 2010    $885,384.4                           $2,248,465.83
  January 2011    $649,551.95                          $2,898,017.78
  February 2011   $139,917.62                          $2,991,530
   March 2011     $337,326.57                          $3,328,966.57
    April 2011
    May 2011
   June 2011

     TOTAL        $3,328,966.57                        $3,328,966.57




Monday, April 18, 2011                                                            3
             Press Releases:
             A “Colorado’s hot springs” press release was distributed to our media database.

             B-Roll, Video and Photo Usage:


             Update of Media Calls/Press Contacts:
             February 25th – Jose Antonio Lopez Sosa. Conductor Perspectiva ABC Radio
             Mr. Lopez invited Lilliana Maya to his radio show to talk about Colorado’s offer for Easter vacation and spring time.The show was broadcasted on
                         th
             Saturday 26 .
                     rd
             March 3 – Sergio Zepeda de Alba. Journalist De Viaje!
             Mr. Zepeda requested our support to gather high resolution images on Colorado scenic trains. Several images were sent along with a document
             on the trains and Mr. Zepeda confirmed the material was enough for his story.
                     th
             March 8 – Deborah Alba. Editor Boletinturistico.com
             Ms. Alba requested high resolution images on Colorado National Parks to feature one as the image of the week. She was informed of the USB
             provided to all attendants of the Sales Mission reception and she confirmed the material in it was more than enough.
                      th
             March 20 – Marisol Rueda. El Semanario
             Ms. Rueda requested general information on Colorado for the end of the 2010-2011 ski season as well as an update on the spring proposal.
             Material (images and content) was sent and Ms. Rueda will confirm publication date as soon as it’s determined.

             Confirmed Individual Media FAM Trips
                                             Attending        Circulation of                                                                                 Date Article
Date of FAM Trip           Publication                                                  Profile                    Theme              Destinations                               PR Value $
                                             Journalist        Publication                                                                                    Appeared
                                                                                  Mexicana Airline’s
                                                                                   business class in-                                                      September - ESPN
                                                                                                                                   Denver, Colorado
                                                                                    flight magazine.                                                        story on IVESCO   82,667.73 USD
                                                                                                           National Parks,         Springs, Manitou
                       Elite magazine,                         Elite – 10,000          ESPN is the                                                                 field      ESPN
                                          Enrique Escalona                                                Sports scene and         Springs, Durango,
      July            ESPN en español,                        ESPN – 80,000       Spanish version of                                                       September – Mesa
                                           David Paniagua                                                urban experience in       Mesa Verde,
                       LaGiraffe.com                         LaGiraffe – 8,000     the US magazine.                                                              Verde in     7,924.60
                                                                                                               Denver              Durango - Silverton
                                                                                   Only a small % of                                                          LaGiraffe.com   LaGiraffe.com
                                                                                                                                   train
                                                                                  the content is from
                                                                                    the US version.



             Group Media:
                                            Attending        Circulation of                                                                                    Date Article
Date of FAM Trip           Publication                                                       Profile                       Theme           Destinations
                                            Journalist        Publication                                                                                       Appeared          PR Value $
                                                                                                                                          Denver, Vail,
                                                                                 Mexico’s most important high-
                                                                                                                                         Aspen, Durango,
                           Bleu & Blanc   Hilda Dominguez        43,800          end travel magazine. It                                                                      28,680 USD per
September 9 – 15                                                                                                                           Mesa Verde,             TBD
                            magazine         (Co-editor)         monthly         celebrated its 10th anniversary                                                              page
                                                                                                                                         Black Canyon of
                                                                                 this month.
                                                                                                                                          the Gunnison




             Monday, April 18, 2011                                                                                                                                                4
                                                                                                                                       Denver, Vail,
                                                                            Mexico’s most important high-
                                                                                                                                      Aspen, Durango,
                        Bleu & Blanc     Carlos García Mora                 end travel magazine. It                                                                      28,680 USD per
September 9 – 15                                              43,800                                                                    Mesa Verde,         Feb 2011
                         magazine          (photographer)                   celebrated its 10th anniversary                                                              page
                                                                                                                                      Black Canyon of
                                                                            this month.
                                                                                                                                       the Gunnison
                                                                                                                                       Denver, Vail,
                                                                            Mexican edition of the
                                                                                                                                      Aspen, Durango,
                                                              70,560        renowned US magazine. The                                                                    37,322.83 USD per
September 9 – 15            GQ             Mariela Gomez                                                                                Mesa Verde,     Dec-Jan issue
                                                              monthly       most popular men’s magazine                                                                  page
                                                                                                                                      Black Canyon of
                                                                            in México.
                                                                                                                                       the Gunnison
                                                                            Mexico’s most prestigious
                                                                                                                                       Denver, Vail,
                                                                            newspaper. It also publishes
                                                                                                                 Denver cultural      Aspen, Durango,
                     De viaje, Reforma   Sergio Zepeda de     145,963       “Mural” in Guadalajara and “El
September 9 – 15                                                                                                 scene and five         Mesa Verde,     September 26th   123,917.6 USD
                        newspaper         Alba (journalist)    weekly       Norte” in Monterrey. Contents
                                                                                                                 neighbourhoods       Black Canyon of
                                                                            are shared in these three
                                                                                                                                       the Gunnison
                                                                            editions.
                                                                            Mexico’s most prestigious
                                                                                                                                       Denver, Vail,
                                                                            newspaper. It also publishes
                                                                                                                                      Aspen, Durango,
                     De viaje, Reforma   Yolanda Garduño      145,963       “Mural” in Guadalajara and “El                                                               30,000 USD per
September 9 – 15                                                                                                                        Mesa Verde,         Sept 2010
                        newspaper         (photographer)       weekly       Norte” in Monterrey. Contents                                                                page
                                                                                                                                      Black Canyon of
                                                                            are shared in these three
                                                                                                                                       the Gunnison
                                                                            editions.
                                                                            High-end magazine with a                                   Denver, Vail,
                                                                            monthly print-run of 10,000                               Aspen, Durango,
                                           Liliana García     10,000                                                                                                     24,000 USD per
September 9 – 15         La Revista                                         copies. Half of it is distributed                           Mesa Verde,           TBD
                                                Brena         monthly                                                                                                    page
                                                                            to a VIP database                                         Black Canyon of
                                                                            (personalized copies)                                      the Gunnison



         Media Events:

         Lilliana Maya attended the 3rd Editorial Board meeting of De Viaje! travel section (Reforma newspaper). Since a Colorado story was
         featured on the cover, the topic was discussed during the meeting with very positive feedback.

         Travel Trade Promotions

         Current Co-ops:
         Company            Details                                     Dates                    Partners       On-Line OR Off-Line               Results


         Tac Tours          OFFLINE CAMPAIGN – CONSUMER                 Ski season 2010 –                                  Off line
                                                                              2011

         Servicios de       OFFLINE CAMPAIGN – CONSUMER                   Summer 2011                                      Off line
         viaje 365

         Holam              OFFLINE CAMPAIGN – CONSUMER                   Summer 2011                                      Off line




         Monday, April 18, 2011
         Trade Contacts/Sales Calls/Sales Leads:
                                                                                                                                                                              5
Amigo Yucatán (MID) – Met with Jorge Escalante to find out what his forecast is, as one of the most important wholesalers in Yucatán, for the
tourism sector on the region.

Viajes Eugenia (MID) – The agency manager is very interested on receiving ski packages info as well as updates on Colorado ski resorts and
collateral for their clients.

Pax Tours (MTY) – Established contact with the Sales Manager since he seemed interested on exploring Colorado’s offer for summer. Mr.
Ontañón will email us when he has gone through the material provided to him and determined what could be of interest to his clients.

Magno Viajes (GDL) – Mr. Gomez emailed us to let us know Magno Viajes is interested on receiving updates and special offers on Colorado
products along the year. His information has been added to our database so that he receives periodic information on Colorado.

Paradizzo Tours (Guanajuato) – Mr. Gonzalez Rocha sent an email informing he’s interested on receiving updates and info on special offers in
Colorado as well as brochures he can give to his clients. A package is being prepared for him based on his particular needs.

We have been receiving emails from travel agents met during the trade show. A database will be put together with the information gathered so that
we can remain in touch with those interested on selling Colorado.

Travel Trade Events, Trainings, Seminars, Workshops:
                               th
TravelPIE participated on the 8 trade show organized by Expomayoristas. Six cities were visited (Monterrey, Guadalajara, Leon, Mexico City,
Puebla and Merida) and training seminars were given in Monterrey and Guadalajara.

Trade FAMS (Group or Individual):
 Date of FAM                                                                                                      Participating
                     Company            Attending personnel        Title              Profile / Current product                           Results
     Trip                                                                                                         Destinations




Travel Tradeshows:
                               th
TravelPIE participated on the 8 trade show organized by Expomayoristas. Six cities were visited (Monterrey, Guadalajara, Leon, Mexico City,
Puebla and Merida) and training seminars were given in Monterrey and Guadalajara.

Consumer Promotions

Consumer-Related Programs (Consumer shows/Consumer leads): 1

Consumer Inquires without brochure fulfilment:

Distribution of Materials for corresponding Month and Cumulative Amount to date:

Month                                         www.colorado.com                 Other – telephone/ email request                   Total


Monday, April 18, 2011
July 2010                           0                                      2                                         2
                                                                                                                                                    6
August 2010
September 2010
October 2010
November 2010
December 2010
January 2011              1                                             -                             1
February 2011
March 2011                0                                             1000                          1000
April 2011
May 2011
June 2011
Total

                                                  Colorado Fulfilment Stats 2009
Total fulfilment graph
                                                    200




                               No of packs sent
                                                    150
                                                    100
                                                     50
                                                      0
                                                          Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

                                                          Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
                         Packs (Colorado.com               67
                         requests)
                         Trade packs (phone                75
                         requests)
                         Consumer packs (phone              3
                         requests)




Monday, April 18, 2011                                                                                       7
                                       MARKET INTELLIGENCE

                                                  Economy


                             July 10     August    Sept 10   October   Nov 10    Dec 10

Exchange Rate (U.S)           13.35       13.26     12.82     12.43    12.33      12.41

Consumer Confidence
                               87.4        88.7     91.6      92.05     88.5       91.2
Index


                              Jan 11     Feb 11    Mar 11    Apr 11    May 11    Jun 11

Exchange Rate (U.S)           12.22       12.14

Consumer Confidence
                               92.3        92.3
Index

PERU, MEXICO VIE FOR TOP SILVER SPOT
(From The Wall Street Journal. March 1, 2011)
Peru and Mexico are again jockeying for bragging rights as the world's top silver producer.
Peru's silver production last year was 3,637 metric tons, and Henry Luna, a director at the Ministry of
Energy and Mines, said last week that the country expects to increase that to 4,089 metric tons—131.5
million troy ounces—in 2011. Mexico's National Statistics Institute, or Inegi, reported 2010 production of
3,116 metric tons last year.
Over the weekend, Camimex, the Mexican mining industry group, sent out a news release claiming
Mexico has overtaken Peru, according to its own figures.

MEXICO KEEPS RATES STEADY, WARNS RISK TO PRICES
(From The Wall Street Journal. March 4, 2011)
The Bank of Mexico left its overnight lending target unchanged Friday citing moderating inflationary
pressures, though it highlighted a wider array of potential risks to prices and growth than in previous
statements.
Mexico's central bank left the key interest rate at 4.5%, where it has been since July 2009. None of the
16 economists polled this week by Dow Jones Newswires had expected a change.
"The behavior of inflation at the start of 2011 has been according to what the Bank of Mexico forecast,"
the country's central bankers said in a monetary policy statement, citing among several factors a
favorable exchange rate, moderate cost pressures, as well as slower increases to prices set by local
governments.
But the Bank of Mexico on Friday pointed to a number of risks to prices in the horizon, including the
latest developments in the Middle East and North Africa. The central bank said the unrest in the region
can threaten the global economic recovery and inflation "in practically all countries."
"There also exists a risk that said geopolitical conflicts could prompt adjustments to portfolios and
capital flows that could create pressure for the exchange rate," central bankers warned.




Monday, April 18, 2011                                                                                   8
Mexico's peso saw a sharp correction about two weeks ago when clashes between pro- and anti-
government forces in Libya rattled markets around the world, though the currency recovered in the past
few days.
The central bank also cited a cold snap last month that destroyed crops in northern Mexico's
agricultural hub of Sinaloa as a risk to domestic prices, in addition to rising global commodity prices that
the central bank has previously mentioned.
Mexico's official inflation target is 3%, plus or minus one percentage point. Central bankers have
reiterated in recent statements that they expect the CPI to end the year within that range, albeit likely
above 3%.
After the first two weeks of February, the annual consumer price index stood at 3.63%, down from
3.78% at the end of January, while the closely watched core index was 3.28%. The CPI ended last year
at 4.40%.
Thanks to tame inflation, the Bank of Mexico is part of an increasingly small group of central banks to
maintain loose monetary policy since the 2009 economic crisis ended. Most private economists don't
expect a rate increase until the end of 2011 or early 2012.

BILLIONAIRE VS. BILLIONAIRE IN MEXICO FEUD
(From The Wall Street Journal. March 4, 2011)
Three of Mexico's most prominent billionaires—who were once a cozy group of amigos protecting each
other's backs—are now battling over how to divvy up the country's $35-billion-a-year
telecommunication and TV-broadcast market.
The fight pits Carlos Slim, the world's richest man and principal owner of Mexico's biggest land-line and
cellular-phone companies, against the country's top two media tycoons, Emilio Azcárraga, principal
owner of No. 1 broadcaster Grupo Televisa SAB, and Ricardo Salinas, principal owner of TV Azteca
SAB as well as the cellphone company Iusacell.
Mexico's economy is dominated by large companies that control their industries, and they rarely
threaten each other by moving into other markets. But technological convergence has blurred the lines
between the phone and TV industries, allowing both sides to invade each other's turf.
"The veneer of friendship is disappearing," says Eduardo Garcia, owner of Sentido Comun, an online
business-news site in Mexico City. "Mexico's billionaires are battling over the prize using all the
weapons at their disposal."
Key to the dispute is Mr. Slim's inability thus far to enter the TV market because of the terms under
which he operates Telmex, the former state phone monopoly he bought in the early 1990s.
Mexican regulators and the big broadcasters argue that allowing Telmex into the TV market now would
give Mr. Slim an unfair advantage because his Telmex controls 80% of Mexico's fixed-line telephones
and his Telcel controls 70% of the cellphone market.
But even as Mr. Slim is barred from entering the TV industry, cable-TV operators have begun to bundle
their TV and broadband Internet services with phone service in lucrative "triple play" packages.
Mr. Slim's companies, which account for roughly a third of the Mexican stock market's capitalization,
fired the first shot in the battle last month, pulling advertising from Grupo Televisa, which has 70% of
the country's viewers.
Days later, Mr. Salinas joined the fight, announcing that Mr. Slim couldn't advertise on TV Azteca
channels unless he cut the price that his phone companies charge smaller phone companies to
complete calls on his network.
Mr. Slim's refusal to buy TV ads will cost Televisa about $70 million, or 1.5% of Grupo Televisa's
revenue this year, Executive Vice President Alfonso de Angoitia told analysts in a conference call
recently.
For TV Azteca, a failure to come to terms with Mr. Slim's companies would mean a loss of about $30
million, or about 3% of TV Azteca's sales, says Luis Niño de Rivera, a spokesman for Mr. Salinas.
Arturo Elias, a spokesman for Mr. Slim who is also his son-in-law, says Mr. Slim dropped his Televisa
commercials after a sharp increase in the company's ad rates. If Televisa trims those increases, he
says, Mr. Slim would reconsider advertising with the company.



Monday, April 18, 2011                                                                                    9
But on Wednesday, the battle between Mr. Slim and the broadcasters heated up as each side issued a
barrage of accusations.
In a communiqué, two dozen cable and telecommunications companies, including Televisa and TV
Azteca, called on the Mexican government to slash Telcel's connection rates.
Mr. Slim fired back, claiming his rivals were seeking a free ride on Telcel's network because they hadn't
invested in their own infrastructure.
In a statement the day before, Mexico's antitrust regulator had expressed hope the billionaires' brawl
would help the country find a way out of its impasse.
"The current conflict between concessionaires is an opportunity to resolve two of the main problems in
telecommunications: interconnection and insufficient competition in television," the Federal Competition
Commission said.
Analysts say Mr. Slim's companies have little choice but to return to TV advertising soon, especially on
market-dominant Televisa. Not doing so could cause sales to drop not just at Telcel but at a dozen
other companies controlled by Mr. Slim, including retailers Sears Roebuck de Mexico and Sanborns.
A spokesman for Mr. Slim and a Televisa official say there is nothing personal about the business
disputes. "There's no need to confuse business with personal affairs," Mr. Salinas wrote in a Twitter
post recently, adding that he admires and respects Mr. Slim.
And despite the public acrimony, Mr. Azcárraga was spotted Tuesday night at the opening of an
enormous art museum housing Mr. Slim's private art collection.
But resolving the advertising dispute isn't likely to end the friction between Televisa and Mr. Slim. In
January, Televisa filed a complaint with Mexico's Federal Competition Commission, or CFC,
questioning the nature of Telmex's relationship with DishMexico, a satellite-TV service. Televisa argues
that Mr. Slim is using the service to get around the legal hurdle that prevents him from offering TV
services.
Telmex provides billing and marketing services to DishMexico, and the system's fast growth has put
competitive pressure on Televisa's Sky Mexico satellite-TV system, one of the company's most
important profit centers. Sky Mexico gained more than one million subscribers last year, giving it a total
of three million subscribers. But in just over two years, DishMexico has signed up 2.2 million.
Telmex says it doesn't have an ownership stake in DishMexico, and Mr. Elias denies any retaliatory
motive on the part of Mr. Slim. But Telmex does say it might invest in the company in the future if it gets
approval from the proper authorities. It also says its current role with DishMexico is authorized by the
CFC.
The commission had no comment on the Televisa complaint.


CARLOS SLIM STILL No. 1 AS FORBES RICHEST LIST GROWS
(From USA Today. March 10, 2011)
The world's wealthiest people had a record-breaking year from February 2010 to February of this year,
says Forbes magazine, which released its list of the globe's billionaires Wednesday. During the year,
214 people became billionaires, bringing the world's total to 1,210; 15 fell off.
These wealthy individuals saw their average net worth jump 5.7% to $3.7 billion, powered in large part
by soaring stock and commodity prices.
Of the $4.5 trillion held by billionaires, $1.5 trillion is held by Americans. Plus, the U.S. has the most
billionaires, 413. But the rising influence of the rest of the world is clear in that:
The world's richest person, again, isn't American. Mexico's Carlos Slim was again No. 1, with a net
worth of $74 billion, up $20.5 billion. Slim widened his lead over Microsoft's Bill Gates to $18 billion,
largely due to Gates' massive philanthropic efforts valued at roughly $30 billion, says Steven Bertoni of
Forbes.



                                    Outbound Travel Market


Monday, April 18, 2011                                                                                  10
General


Long haul



                                  Competitive Environment
Competitor Spend/Activity


Routes



                                        Consumer Trends
General


Lifestyle


Socio Demographic

INEGI: EXTREME POVERTY DECREASING
(From The News. March 4, 2011)
Yesterday, the National Statistics, Geography and Information Institute (INEGI) published the final data
from the Population and Housing Census 2010. The organization found that in the 112.3-million
population of Mexico, extreme poverty has fallen but inequality still exists.
The President of the INEGI Eduardo Sojo clarified that the National Council for Social Development
Evaluation (Coneval) is responsible for announcing poverty data but “it is inferred that many of the
indicators of poverty have decreased. For example between 1990 and 2010, the number of people
living on dirt floors decreased significantly (from 19.5% to 6.2%).”
The report stated that out of the 35, 617,724 homes in the country, 92.6% had at least one television,
82.1% had a refrigerator and 79.5% had a radio.
The report also revealed that 45% of households had a car, 43.2% had a telephone line, 29.4% had a
computer, and 21.3% had internet access.
More children are going to school now than 20 years ago. The organization found that 94.7% of
children between the ages of six and 14 attended school. This number is up from 85.8% published in
1990.
With the publication of the census, Mexico is the 11th largest country in the world in population.


Internet


                                      Travel Trade Trends

Travel Agents


Monday, April 18, 2011                                                                                11
Tour Operators


Airlines

SPIRIT AIRLINES ANNOUNCES SERVICE TO TOLUCA/MEXICO CITY
(From Just4airlines.com. March 9, 2011)
Miramar, Florida – Spirit Airlines today announced that it is further expanding its network of ultra low
fares in Mexico with the introduction of service to Toluca, Mexico. Subject to foreign government
approval, Spirit will begin operating two non-stop flights per week between Fort Lauderdale and Mexico
City’s Toluca International Airport on June 3, 2011.
Only 30 minutes from Mexico City, Toluca International Airport provides customers easy access and
serves as a convenient alternate to Mexico City International Airport. Spirit is launching the new
Toluca/Mexico City service with $22 fares (each way based on round-trip purchase) available today and
tomorrow at www.spirit.com.
“The government of the State of Mexico welcomes and congratulates very warmly Spirit Airlines for the
beginning of operations in Toluca International Airport. It’s a strategic initiative which will allow and
expand the State of Mexico’s connectivity with the United States. Furthermore, I’m sure that the Toluca
– Fort Lauderdale flight will contribute to enlarge the economic, commercial, touristic and cultural ties
between the State of Mexico and Florida,” affirmed Enrique Peña Nieto, Constitutional Governor of the
State of Mexico.
“For Toluca International Airport it’s a pleasure and satisfaction to welcome Spirit Airlines, one of the
most important airlines of the United States of America, in one more of its developing stages. We are
sure that the inauguration of the Fort Lauderdale – Toluca flight will be the beginning of a long and
friendly relationship to broaden the commercial aviation between Mexico, the East Coast of the United
States and the Caribbean,” says Gerardo Ruíz Esparza, Secretary of Communications of the State of
Mexico. “We thank Spirit for the confidence in our airport and our people, and we wish you the best of
success. We are certain that it’s the forthcoming of a long business path with its home in Toluca
International Airport. Thank you very much.”

AEROMEXICO, VOLARIS TO BRING BACK GUADALAJARA-FRESNO SERVICE
(From TravelWeekly. March 16, 2011)
Aeromexico will launch a daily roundtrip between Fresno, Calif., and Guadalajara, Mexico, on April 4,
and low-fare carrier Volaris begins service on the same route on April 14 with four flights a week.
Fresno has not had service to Mexico since Mexicana ceased service last August when it filed for
bankruptcy.

AMERICAN EAGLE ADDS TWO NEW DESTINATIONS IN MEXICO FROM DFW
(From TravelWeekly. March 16, 2011)
American Eagle will launch two roundtrip routes from Dallas/Fort Worth to Mexico on June 9.
Plans call for daily nonstop service to Morelia and a daily flight to Mazatlan.

SPIRIT, VOLARIS TO BEGIN NEW TOLUCA/MEXICO CITY SERVICE
(From Travel Weekly. March 21, 2011)
Separately, Spirit Airlines and Mexican low-fare carrier Volaris will offer new routes to Mexico.
Volaris will launch one daily roundtrip between Oakland, Calif., and Mexico City on May 6. The carrier
currently flies from Oakland to Guadalajara and begins service between Fresno and Guadalajara on
April 14 with four flights a week.
Spirit plans to add twice-weekly nonstop service June 3 between Fort Lauderdale and Toluca Airport,
25 miles west of Mexico City.
The airport "serves as a convenient alternate to Mexico City Airport," according to Spirit.


Monday, April 18, 2011                                                                                  12
General


                                                Media Trends
Print – newspapers
El Universal newspaper has updated “Destinos” travel section Editorial Direction guidelines. Among
other things, invitations to fam trips will be evaluated only by the Editorial Director before deciding
whether or not to attend the trip. This process will take at least 3 weeks.

Reforma newspaper decided to close ALL its sections’ facebook profiles in order to concentrate in their
website. In a few months, when they have general guidelines on how to manage facebook, they will
reopen all the sections’ profiles. For now they are only working with Twitter.

Print – magazines
Marck Guttman, ex TravelPIE intern, is now working as Coeditor in Bleu & Blanc magazine.

Online
Online presence continues growing and gaining strength among all printed media.

Broadcast


General


                                                General News
HEADS OF U.S., MEXITO TO MEET AS TENSIONS RISE
Violence From Drug War to Top Agenda as Calderón Visits Obama in Washington
(From The Wall Street Journal. March 3, 2011)
President Felipe Calderón will meet in Washington on Thursday with President Barack Obama in an
attempt to repair relations at a time when spiraling violence in Mexico's drug war has frayed ties
between the two allies.
The meeting comes just three weeks after a U.S. Immigration and Customs Enforcement Agent was
killed and another wounded by alleged drug gunmen. Jaime Zapata, the slain ICE agent, was the first
U.S. law-enforcement official to be killed in the line of duty in Mexico in a quarter century.
Mr. Calderón's visit, announced last week, also comes after a spate of ill-timed comments by U.S.
officials about Mexico's drug violence. Among them are that Mexican drug gangs could be allied with
Islamic terrorists and that drug traffickers could overthrow the Mexican state, forcing the U.S. to send
troops. Such statements have enraged Mexican officials, who are notoriously sensitive to any
suggestion of U.S. interference in national affairs.
"I don't recall this kind of bad blood in a long time," said Jorge Castañeda, a former Mexican foreign
minister.
At home, Mr. Calderón has also been feeling political heat. As Mexico enters its 2012 presidential
electoral season, polls show the government's inability to halt rising violence, even as it kills or captures
drug kingpins, increasingly worries Mexicans. That's a blow to the president, who has made security the
centerpiece of his government program.
Analysts believe that weary Mexican voters may reject the candidate from Mr. Calderón's center-right
party and vote to bring back the Institutional Revolutionary Party—anathema to Mr. Calderón—which
controlled Mexico for most of the 20th century and whose presumed candidate is leading in the polls.


Monday, April 18, 2011                                                                                    13
In an interview with El Universal newspaper published last week, Mr. Calderón lashed out at what he
said was the U.S.'s lack of cooperation in Mexico's effort to curb drug cartels. More than 34,000
Mexicans have died in drug-related violence since Mr. Calderón took power in 2006 and sent out the
army and federal police to recover large areas of Mexico where drug cartels held sway.
U.S. "institutional cooperation ends up being notoriously deficient," Mr. Calderón said. He also
lambasted what he said was the disarray in U.S. interagency cooperation. He said the U.S. should help
Mexico deal with the violence unleashed by drug trafficking by lowering U.S. drug consumption and
cutting the flow of arms, many of which end up in the hands of cartel gunmen in Mexico. But Mr.
Calderón said the U.S. hasn't been able to make progress towards either goal. "Instead, the flow [of
arms] has increased," he said in the interview.
Relations, in particular with U.S. Ambassador Carlos Pascual, have been strained by the publication of
embassy cables released by WikiLeaks that described the alleged inefficiency and lack of coordination
in Mexico's security apparatus, especially in the army. In the interview, Mr. Calderón lashed out at Mr.
Pascual and former ambassador Tony Garza, who signed many of the critical reports.
In an apparent reference to Mr. Pascual, Mr. Calderón said his "ignorance" as expressed in the
WikiLeaks reports was a "distortion" of Mexican reality. People close to Mr. Calderón say that when the
Mexican president met with Secretary of State Hillary Clinton in Mexico City in January, Mr. Calderón
"vented" his frustration and blamed the U.S. for not cooperating. A Calderón spokesman declined to
comment on the meeting. A U.S. State Department spokeswoman on Wednesday called the meeting a
"frank exchange of ideas."
In a background briefing, Mexican diplomats strove to put the relationship, and the upcoming meeting in
a positive light. "We see a very productive meeting with positive messages from both presidents," said
Julian Ventura, Mexico's undersecretary for North America. "The importance that each country holds for
the other will be ratified."
U.S. officials also played down tensions. "This bilateral relation has matured to a level in which a simple
statement or a given event does not have the power to wreck the relation entirely," said Deputy
Assistant Secretary of State Roberta Jacobson in Washington on Tuesday.
Most analysts believe that despite the frayed relations the ties between the two countries run so deep
and are so complex that both governments realize their interests far outweigh the present ill will. "There
is a shared recognition that the mutual interests are too important to let tensions overwhelm them," said
Andrew Selee, director of the Mexico Institute at the Wilson Center in Washington.
High on Mr. Calderón's meeting agenda is progress on controlling the sale of weapons on the border,
many of which eventually end up in the hands of cartel hitmen. Indeed, the arrest Monday of three
Dallas men, one of whom bought the weapon used in the killing of Mr. Zapata, the ICE agent, could
well be used by Mr. Calderón to make his point on the need to restrain arms sales. Mr. Calderón would
also like to see a bigger U.S. effort to cut down drug consumption.
Mr. Calderón is also scheduled to meet with U.S. House Speaker John Boehner (R., Ohio) to address
the $1.3 billion Mérida Agreement, which provides material and training to Mexico to help in the drug
war.

HIGH PROFILE MEETING AMID TENSIONS
Mexican President Felipe Calderón Visits his US Counterpart, Barack Obama, in Washington.
They seek to Deepen Mutual Collaboration
(From The News. March 4, 2011)
President Barack Obama and Mexican President Felipe Calderón met Thursday amid heightened
tensions over violence on their shared border, though no major breakthroughs are expected on what’s
quickly becoming a defining issue in the relationship between the North American allies.
Seeking to repair damaged relations, they agreed to deepen their cooperation in combating drug
violence and declared a breakthrough in efforts to end a long-standing dispute over cross-border
trucking.

During a joint news conference at the White House, Obama praised Calderón for his “extraordinary
courage” in fighting the violent drug cartels that have been responsible for deaths on both sides of the


Monday, April 18, 2011                                                                                  14
border. Obama pledged to speed up U.S. aid to train and equip Mexican forces to help in those efforts,
but he also acknowledged that the U.S. must stem the flow of cash and guns to Mexico that have aided
the cartels.

“Mexico has a full partner with the United States,” Obama said. “Our people have a right to be safe in
their communities.”

“We are very mindful that the battle President Calderón is fighting inside of Mexico is not just his battle,
it’s also ours,” Obama said. “We have to take responsibility just as he’s taken responsibility.”
Calderón’s visit comes three weeks after U.S. Immigration and Customs Enforcement agent Jaime
Zapata was shot to death in northern Mexico with a gun smuggled in from the U.S. The incident raised
questions in the U.S. about Mexico’s ability to control violence and has Obama administration officials
considering arming U.S. agents working across the border to ensure their safety.
Mexican law bans foreign law enforcement agents working in the country from bearing arms, and
Calderón vehemently expressed his opposition to making an exception for U.S. personnel. But he said
Zapata’s death showed a need to consider alternative methods for protecting agents.
Calderón offered his condolences to Zapata’s family, and said he would work to bring his killers to
justice.
“His death must urge us to work together to ensure a prosperous and peaceful future for our region,”
Calderón said. Obama said the U.S. is seeking extradition of several suspects arrested in Mexico in
connection with Zapata’s death.
Tensions between the North American allies were already heightened ahead of Zapata’s death. Secret
State Department cables released last year revealed a grim assessment by U.S. officials of Mexico’s
ability to fight drug cartels, saying the country has limited intelligence-gathering capacity and quoting
Calderon as saying politicians could be tempted to return to a tacit policy of tolerating the gangs.
In a show of confidence in Calderón’s efforts, the Obama administration said it would continue to send
aid to support Mexico in the drug war. A senior administration official said the U.S. plans to speed up
implementation of the US$1.4 billion Merida Initiative, with US$900 million to be doled out by the end of
the year. The official spoke on the condition of anonymity.
Calderón last visited the White House in May, at the height of tension over Arizona’s controversial
immigration law that makes it a crime to be in the U.S. illegally and requires police to question people
about their immigration status if there’s reason to suspect they are in the country illegally. Mexican
officials strongly oppose the law, as does Obama, who told Calderon on Thursday that he’s still
committed to comprehensive immigration reform, saying it was vital to the U.S. economy.
Eager to show signs of productive partnership, Obama and Calderón agreed to a phased-in plan that
would authorize both Mexican and U.S. long-haul carriers to engage in cross-border operations
provided the Mexican trucks meet U.S. safety standards. Both countries were given this authority under
the 1994 North American Free Trade Agreement (NAFTA), but the U.S. has refused to allow Mexican
trucks access amid concerns over their ability to meet stringent U.S. safety and environmental
standards.
Mexico has placed higher tariffs on dozens of U.S. products in response to the unresolved dispute.
Under the proposed agreement, Mexico will agree to lift those tariffs in phases, with all tariffs lifted once
the first Mexican carrier receives authorization to travel on U.S. roads.
Negotiating teams, which are still working out details of the plan, are expected to send an agreement to
Congress this spring.

PASCUAL, 1st CASUALTY OVER WIKILEAKS
The Furor in Mexico Took on a Personal Tone Unseen in Other Nations
(From The Associated Press. Friday, 25 March 2011)
The U.S. ambassador to Mexico faced a harsh choice as the release of secret cables made his job
nearly impossible: Quit to rescue one of Washington’s most strategic relationships or weather the storm
to show that diplomats should not suffer for doing their jobs.



Monday, April 18, 2011                                                                                    15
In the end, Carlos Pascual resigned, the first U.S. ambassador to lose his job over thousands of
sensitive diplomatic cables released by the WikiLeaks website.
His frank cables detailing infighting and jealousies among Mexican security forces contrasted with
public U.S. praise for Mexico’s fight against drug trafficking. They deeply angered Mexican President
Felipe Calderon, who repeatedly stated he could no longer trust the ambassador. Even opposition
lawmakers say they became reluctant to meet with Pascual.
The crisis revealed the fine line President Barack Obama’s administration has had to walk between
appeasing important allies and standing up for its diplomats. With potentially thousands more
documents to be unveiled, the question is whether the outcome of the Mexico dilemma will set a
precedent.
“Ambassador Pascual made a principled decision to resign because there were issues more important
than him. It was self-sacrificing of him,” said Andrew Selee, director of the Mexico Institute at the
Washington-based Wilson Center. “The administration takes a long term view of Mexico. They are
looking for the best way to keep cooperation going. But in the U.S. Congress there will be difficult
questions about whether the U.S. government is being pushed around.”
Mexico is not the only country where leaked cables have deeply complicated the work of U.S.
ambassadors.
The U.S. ambassador to Libya, Gene Cretz, was recalled to Washington in January after WikiLeaks
posted his blunt assessment of Moammar Gadhafi’s eccentricities. U.S. officials told The Associated
Press then that Cretz might be removed from his post to avoid straining what was considered just
months ago to be an improving relationship with Libya. Those concerns evaporated when the rebellion
against Gadhafi’s rule erupted. Cretz, who never returned to Libya but is still the ambassador, now
participates in meetings with the Libyan opposition and briefings for Congress on the U.S. military
operations to protect the rebels.
In Kenya, WikiLeaks cables made outspoken Ambassador Michael Ranneberger’s shaky relationship
with the government worse, especially one that described the East African country as a “swamp of
flourishing corruption.” One member of parliament submitted a motion to censure Ranneberger and
have the U.S. government recall him, but the motion was withdrawn in February. Kenya’s government
may not have wanted to anger or embarrass the U.S. – a major partner and donor – particularly since
Ranneberger is scheduled to depart his post within months.
For now, the WikiLeaks uproar has led to an ambassador’s downfall only in Mexico.
That speaks to Mexico’s unique relationship with the United States, one marked by more than two
centuries of wars and mistrust – but also one of mutual fascination and dependence. A 2,000-mile
border, decades of immigration and trade and the shared problem of drug trafficking makes Mexico a
prickly but indispensable U.S. ally.
Neither country can easily dismiss the other’s concerns or allow relations to freeze, even if it sometimes
means swallowing national pride.
“There is almost no country as important to the United States across so many multilateral issues as
Mexico,” said Shannon O’Neil, a Latin American expert at the Council on Foreign Relations in New
York. “I don’t expect (the WikiLeaks scandal) to have the same effect elsewhere in the region, perhaps
in the world.”
The furor over WikiLeaks in Mexico also took on a personal tone unseen in other countries. Calderon
repeatedly complained in interviews that he could no longer trust Pascual, strongly hinting the envoy
should be removed.
The Mexican president’s anger at the ambassador has led to speculation that there may be more to the
problem than WikiLeaks. Many have speculated that Pascual, a Cuban-American career diplomat who
was appointed in 2009, made a faux pas with his choice of a girlfriend: the daughter of Francisco Rojas,
the congressional leader of the opposition Institutional Revolutionary Party.
“While there has been an outcry, very few other governments have moved into a personal level about
the writer of the leaked cables,” O’Neil said.
Whatever the reasons, it became increasingly clear that Pascual could no longer do his job effectively.
Even opposition politicians criticized Pascual for trampling on Mexico’s dignity, not so surprising for a
country of immense national pride and determination to stand up to its powerful northern neighbor.

Monday, April 18, 2011                                                                                 16
“In Mexico, the government, Congress, the armed forces and public opinion are all very sensitive about
the opinions of the United States,” said Sen. Carlos Navarette of the leftist Democratic Revolution
Party. “I hope the next ambassador learns the lesson and behaves diplomatically and respectfully
toward Mexico.”
Sen. Silvio Aureoles, of the same party, told the AP that “relations between the Senate and the
ambassador froze completely,” but he acknowledged that he believed “the immense majority of what
Pascual said was true.”
“There is a saying in Mexico: ’Truth doesn’t sin, but it does hurt,’” Aureoles said.
The U.S. government – as with the Libyan ambassador – had made clear it believed Pascual did
nothing wrong, insisting until last week there were no plans to remove him. In her statement
announcing Pascual’s departure, Secretary of State Hillary Rodham Clinton said twice that it was with
“great reluctance” that his resignation was accepted.
So far, Pascual’s resignation has caused little public reaction in Washington, overshadowed by the
upheaval in the Middle East. But that could change during Senate confirmation hearings for a new
ambassador, experts said.
“It’s likely that if the Obama administration tries to appoint another ambassador it could generate a
national backlash in the U.S. over why Ambassador Pascual had to resign in the first place,” Selee
said.
“The Obama administration may feel the relationship with Mexico is so strategic that they are willing to
overlook some of the rough edges that exist. But for the U.S. Congress, I suspect they will ... be
concerned that they are ceding to pressure from the Mexican government.”

BILATERAL RELATIONS ARE STABLE
(From The News. )
The recent resignation of Carlos Pascual as Ambassador of the United States to Mexico is a personal
decision and the Mexican government does not have an opinion on the matter, Patricia Espinosa, the
Foreign Relations Secretary said on Tuesday.
In a press conference, Espinosa said that the relationship between Mexico and the United States had
not been affected by the resignation of Pascual. So far, Washington has not proposed a new candidate
to replace Pascual.
“Our relationship (with the United States) is solid and strong. It shows how important the bilateral
relationship is to both governments, therefore, we will continue working together,” Espinosa said.
She added that the designation of new diplomats followed a protocol that required keeping certain
information confidential.
“The designation of a new ambassador and the decision to resign from a position are matters in which
the Mexican government does not need to make any statements... The United States has emphasized
its interest in continuing to work on coordination with Mexico to face the many challenges that the
countries share,” Espinosa said.

SENATE APPOINTS CONSULS TO USA
New Diplomats for N.Y., Chicago, L.A. and Denver
(From The News. March 25, 2011)
On Thursday, the Senate endorsed the appointment of the Mexican Consuls to the cities of Chicago
(Eduardo Arnal Palomera), New York City (Carlos Manuel Sada), Los Angeles (David Figueroa) and
Denver (Andrés Imre Chao).
The leader of the Labor Party’s (PT) parliamentary group in the Senate, Ricardo Monreal, said that the
party would refrain from voting. “We find it a little suspicious that the government of Mexico decided to
change Consuls in cities with a large Mexican population,” he said.
He said that the PT suspects that the four consuls might persuade the Mexican population into voting
for the candidate of the current official party. “There are nearly 6 million Mexicans in Los Angeles, 4
million in Chicago and 1.8 million in Denver. So it’s logical to think there’s something brewing,” said the
Senator.



Monday, April 18, 2011                                                                                   17
He said that with the arrival of the new diplomats, the Mexican consulates will turn into hotbeds of
political and partisan activity, especially with the presidential election of 2012 approaching
Institutional Revolutionary Party (PRI) Senator Carlos Jiménez said that it is not irrational to think that
the appointment of the new Consuls conceals a hidden agenda. “President Calderon has shown
everyone evidence that the National Action Party (PAN) will use every means possible to stay in
power,” he said.
“Calderón is a master puppeteer who will use anything to attain his goals. We all know that, but I also
think that saying that the Consuls are vassals of his is a bit of an overstatement,” he added.
Democratic Revolution Party (PRD) Senator Pablo Gómez said that appointing Figueroa and Chao was
unseemly because they were members of the PAN and the party is rewarding them for their vassalage.
“Our diplomatic corps is a pile of rubbish,” he claimed.
PAN Senator Rubén Camarillo said that the government made the right move with the appointment of
the new Consuls. “Gómez’s comments are offensive and indecorous. The Consuls are people of
integrity that were recognized for their work,” he noted.


                                        Crisis at Mexicana
PC LACKS FUNDS TO PURCHASE MEXICANA
Tenedora K Says Financial Group Reneging on The Deal
(From The News. March 2, 2011)
Tenedora K, the majority holder of Mexicana de Aviación’s shares, stated Tuesday that it will not
transfer the 95 percent of shares it holds to PC Capital, because the latter failed to carry out the proper
financial operations to pay the title deeds and inject the necessary capital into the company so it could
once again begin operations.
Last Friday, Tenedora K gave PC Capital an ultimatum that ended yesterday. The aim of the ultimatum,
stated Tenedora K, was to complete the share transfer, which would not allow other companies to buy
Mexicana de Aviación.
Tenedora K pointed out that PC Capital has not signed any kind of agreement or contract with them for
the transfer of Nuevo Grupo Aéreo’s (NGA) shares to PC Capital.
The press release issued by Tenedora K reads: We have given PC Capital a deferral, which was
endorsed by the Communications and Transportation Secretariat (SCT) and the Labor Secretariat
(STPS). PC Capital had stated numerous times that the group had the financial capability to go on with
the previously set financial plan. However, PC Capital has failed to comply with the agreement.
“Henceforth, Tenedora K has a new share transfer process, which will allow other companies to
purchase shares. As with the previous process, the transfer will have to be analyzed and endorsed by
the SCT and the STPS,” noted the document.
Tenedora K has made a commitment to giving other investors opportunities to buy the NGA shares.
NGA is Mexicana de Aviación’s parent company.

MEXICANA AIRLINES’ RELAUNCH PLANS FLOP AGAIN
Mexicana Stopped Flying in August, Swamped by Debt
Company has Unsuccessfully Tried to Restart Operations
(From Reuters. March 2, 2011)
The latest plan to put troubled airline Mexicana back in the skies has flopped after a tiny boutique
investment firm interested in buying the company failed to inject the money needed to restart
operations.
A business plan from relatively unknown PC Capital was chosen by a judge-appointed mediator in
November as the best option to relaunch debt-ridden Mexicana. The pick was backed by Mexico's
communications and labor ministries.
In a joint statement released on Wednesday, the ministries said they regretted PC Capital had not
produced investors to restructure Mexicana and were suspending talks with the firm.



Monday, April 18, 2011                                                                                  18
Mexicana de Aviacion was one of Mexico's two major airlines. It ceased operations in late August,
swamped by its financial liabilities, grounding travelers in Mexico and abroad and leaving thousands of
ground workers, pilots and flight attendants with no jobs. Its affiliated carriers, Link and Click, also
stopped flying.
The three companies were granted creditor protection in Mexico and the United States but have
unsuccessfully tried to restart operations as several investors approached them with aggressive staff-
cutting plans, but with insufficient money to pay lagging salaries and severance.
The company needed to restructure at least $800 million in debt, according to the latest available
information.
Mexicana is one of the oldest carriers in Latin America and its demise in 2010 led competitors to
sharply increase ticket prices as demand for international routes were suddenly left unserved. The
airline controlled many routes into the United States which were its most valuable assets.
Domestic airlines AeroMexico, Interjet and Volaris have increased market share in recent months.

MEXICANA’S COMEBACK PLAN STALLS
Mexicana Airlines has Taken Another Hit
(From Travel Weekly. March 7, 2011)
The carrier’s plans to resume service this summer, following its bankruptcy filing last August, appear to
be dead in the water, at least for now, due to insufficient funds on the part of the ownership group trying
to buy the carrier.
PC Capital was responsible for raising the money to enable the carrier to return to the skies. In a joint
statement released Wednesday, Mexico’s labor and transportation departments said that “while PC
Capital has developed a business plan to revive Mexicana, it has not named a single investor who
could support the acquisition. It has not done its part to identify solvent investors.”
The ministries said they regretted that PC Capital had not produced investors to restructure Mexicana
and were suspending talks with the firm, opening the possibility that other parties interested in acquiring
Mexicana could toss their hats into the ring.
It was just a little more than two weeks ago that Mexicana announced plans to resume service with
seven planes and 11 routes by this summer.

PILOTS:BANKRUPTCY NOT ACCEPTABLE
(From The News. March 8, 2011)
On Monday, the head of the Association of Airline Pilots (ASPA), Fernando Perfecto Cruz, told
members of the organization that a bankrupt Mexicana Airlines was unacceptable and urged the
Mexican Government to help rescue the airline.
After four months of negotiations to reinstate the airline, Mexicana is ready to launch and the last three
months have not been a waste of time, Perfecto Cruz said.
Perfecto Cruz’s comments come after an El Universal interview with Javier Lozano, the Secretary of
Labor and Social Welfare, published on Monday.
In the interview Lozano said the $US 220 million proposed by investors would not be enough to rescue
the airline and that the airline must come up with an initial capital of $US 250 million.
Lozano said if the airline didn’t find the capital soon, which seemed likely, in less than four months the
government would declare the airline bankrupt.
Perfecto Cruz chided Lozano’s previous remarks saying that after the “mockery” surrounding the PC
Capital debacle there are still at least four groups of investors willing to support the airline, and that
Lozano should not have said bankruptcy was imminent.
Mexicana Airlines was sold to PC Capital on May 2, 2010. PC Capital has since not been able to come
up with the capital to put Mexicana back in the air.


BANCOMEX SELLING MEXICANA PLANES
(From The News. March 9, 2011)




Monday, April 18, 2011                                                                                  19
The National Bank of Foreign Trade (Bancomext) on Tuesday announced that it had decided to sell
Mexicana’s airplanes within the next few weeks, regardless of the possibility that the airline restarts
operations or is declared bankrupt.
Héctor Rangel Domene, the General Director of Bancomext, noted that the bank will receive seven
A320 airplanes shortly, and another two airplanes are being repaired before they are transferred to the
bank.
In an interview at the National Convention of the National Chamber of the Industry of Transformation
(Canacintra), Rangel, who is also the General Director of Nacional Financiera (Nafin), said that the
transfer of the airplanes will be a long process, as airplane parts and the engines need to be checked.
“We will receive six (airplanes) within the next few days. Another will be transferred within the next few
weeks. There are two still being repaired,” Rangel said.
He noted that, as soon as Bancomext receives the airplanes, it will sell them “to a national or
international buyer, whoever is interested in buying these airplanes, whether it is an international lessor
or an airline company.”
Rangel said that the aviation market worldwide is in recovery, and airplanes are the first thing in
demand. Mexicana’s airplanes are valued at 780 million pesos. Without revealing any names, Rangel
said that “there are some parties interested in buying the airplanes, and as soon as we can, we will sell
them, regardless of what happens with Mexicana, PC Captial or other investors interested in buying the
airline.”




Monday, April 18, 2011                                                                                  20
Monthly Report – TravelPIE – México                                         CTO Mexico – April 2011
Fast Facts:

 Highlight 1:
        Colorado summer products have been heavily promoted this month among travel agencies and
        wholesalers with a general conclusion on their side: Colorado is the perfect replacement of Canada for
        those not willing to go through the Canadian visa application process. After participating in a training
        session this is their natural perception, thus we provide them with all the elements / tools to convince
        their clients of the above.

 Highlight 2:
       The summer media fam trip planning began this month. So far, we have received outstanding response
       from the journalists / publications we’ve met with; on the other hand, the itinerary covered will allow the
       attendants to publish stories that provide a stronger presence to the summer trade co-ops we are running
       with the top wholesalers in the country.

Public Relations
     • Numbers of Media Calls/Follow up Calls: 20
     • Press Release sent: 1
     • Attended: 1

     •   Total Monthly Media Equivalency compared Year to Date in US Dollars:
         $44,933.62 (April 2010 $92,116.33 USD = 47,182.71 USD less this year)
     •   Total Cumulative Equivalency compared Year to Date in In-Market currency:
         $40,535323.76 MXP

     •   TravelPIE PR Placed Monthly Media Equivalency compared Year to Date in US Dollars:
         $44,933.62 (April 2010 $8,460.45 USD = 1,455,179.5 USD less this year)
     •   TravelPIE PR Placed Cumulative Equivalency compared Year to Date in In-Market currency:
         $39,958,297.53 MXP

Travel Trade
     • Number of Sales Calls: 15
     • Number of Trade Inquiries: 3
     • Attended: 0

Current Running Co-Ops
     • Tac Tours (Monterrey) – Printed advertising on travel section of “El Norte” newspaper and “Publitur”
         trade magazine
     • Julia Tours (DF) – Printed brochure distributed among their travel agencies (nationwide) promoting 2
         Colorado packages.
     • Iconn Travel (DF) – Online & printed campaign for Bancomer credit card holders, promoting Colorado
         summer products & packages.
     • Servicios de viaje 365 (Guadalajara) – Trade luncheon & seminar to promote / sell 2 Colorado summer
         packages.


Consumer Fulfilment
    • Number of Consumer Inquiries: 0
    • Distribution of Materials: 0



Monday, May 02, 2011
US Dollar Exchange Rate 11.55

                                                                                                                   1
    •   Compared to 12.37 in April 2010

Online Activities:
 CTO Official Website Visitors (Mexico’s version of Colorado.com): 1,639 visits
 Website Visitors from Mexico: 314




Monday, May 02, 2011                                                              2
         TravelPIE – Monthly Report
         Public Relations

         Total Media Equivalency Clipping Evaluation Report – TravelPIE
                                                                                                              Evaluation
                                                        Date of                             Circulation and                Evaluation in USD –                             Details
  Publication                     Title                                Journalist                             (in market                         Source
                                                      Publication                                Type                        Ad Equivalency
                                                                                                              currency)
                                                                                                                                                          The story provides a general review on the
                        Colorado for semana                           Guillermina             Weekly travel
   Invertour                                          March 13th                                               144,000         12,467.53          PC      information given during CTO Sales
                         santa and spring                              Sánchez              trade magazine
                                                                                                                                                          Mission reception.
                        Colorado offers a wide                                                                                                            The story provides a general review on the
                                                        March /     Victoria Gonzalez         Travel trade
Diarioimagen.net       variety of activities to its                                                            16,800           1,383.85          PC      information given during CTO Sales
                                                         April            Prado                 website
                                visitors                                                                                                                  Mission reception.
                              Colorado in
                                                                      Guillermina             Weekly travel                                               The note talks about Colorado’s presence
   Invertour            Expomayoristas trade           April 15th                                              144,000         12,467.53          GA
                                                                       Sánchez              trade magazine                                                in Expomayoristas trade show.
                                 show
                                                                                                                                                          The story provides a general review on the
                      Promoción de los centros                                                Weekly travel
  Turistampa                                           April 5th     Brenda Núñez                              172,000         14,891.77          PC      information given during CTO Sales
                        de esqui de Colorado                                                trade magazine
                                                                                                                                                          Mission reception.
                                                                                             Weekly travel                                                The story provides a general review on the
                      Promoción de los centros
Turistampa.com                                           April       Brenda Núñez            trade media       43,000           3,722.94          PC      information given during CTO Sales
                        de esqui de Colorado
                                                                                                website                                                   Mission reception.

         Source Key –
         PFI or PFG               Press FAM result (individual or group)
         PR                       Result of press release
         PC                       Result of press conference/media event
         P                        Result of the promotion
         GA                       Result of general PR activity
         NA                       Not Assisted by CTO




         Total Placed Media Equivalency Chart Report – Generated by TravelPIE
           Month                  Total Placed Equivalency FY 10 USD        Combined Equivalency USD
                 July 2010        $23,880.7                                  $23,880.7
               August 2010         $300,393.27                              $324,273.97
           September 2010         $494,893.96                               $819,167.93
               October 2010        $450,684.39                              $1,269,852.32
           November 2010           $ 56,162.98                              $ 1,326,015.3
           December 2010          $876,045.17                               $2,202,060.47
               January 2011       $649,551.95                                $2,851,612.42
               February 2011       $139,917.62                              $2,991,530
                March 2011        $337,326.57                               $3,328,966.57



         Monday, May 02, 2011                                                                                                                                                         3
    April 2011
    May 2011
   June 2011

     TOTAL        $3,328,966.57                        $3,328,966.57




Total Media Equivalency Chart Report – Generated from all sources on Colorado
Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $36,430.7                            $36,430.7
  August 2010     $300,393.27                          $336,823.97
 September 2010   $494,893.96                          $831,717.93
  October 2010    $450,684.39                          $1,282,402.32
 November 2010    $ 80,679.11                          $ 1,363,081.43
 December 2010    $885,384.4                           $2,248,465.83
  January 2011    $649,551.95                          $2,898,017.78
  February 2011   $139,917.62                          $2,991,530
   March 2011     $337,326.57                          $3,328,966.57
    April 2011
    May 2011
   June 2011

     TOTAL        $3,328,966.57                        $3,328,966.57




Monday, May 02, 2011                                                              4
             Press Releases:
             A “Colorado summer camps” press release was distributed to our media database.

             B-Roll, Video and Photo Usage:


             Update of Media Calls/Press Contacts:

             April 1st – Marck Guttman. Coeditor Bleu & Blanc magazine
             Met with Mr. Guttman to find out what changes the magazine’s editorial group is undergoing, particularly since the editor (Mr. Valerio Negri)
             informed Ms. Maya of his departure.
                    th
             April 5 – Alicia Velazquez. Editor Soymama.com
             Ms. Velazquez wants to publish Colorado stories in the tourism section of the website / community she’s about to launch. Ms. Maya will send her a
             list of “family / kids’ friendly” topics and will keep her informed on any activities / destinations that might be of interest to her project.
                     th
             April 14 – Enrique Escalona. LaGiraffe.com
             Met with Mr. Escalona to receive an update on his website achievements and projects. Mr. Escalona will publish Colorado stories in the near
             future (summer topics) and will let us know when they’re available online so we can follow-up on them.
                     th
             April 18 – Victoria González Travelnews
             Ms. Gonzalez emailed to inform about the publication of an article on Colorado’s cocktail.
                     th
             April 20 – Patricia Rivas freelancer for gastronomic & cultural media
             Met with Ms. Rivas to talk about her current projects and collaborations. She will send a proposal on topics she’d like to cover in the media she
             works with.


             Confirmed Individual Media FAM Trips
                                                Attending        Circulation of                                                                          Date Article
Date of FAM Trip            Publication                                                  Profile               Theme               Destinations                              PR Value $
                                                Journalist        Publication                                                                             Appeared
                                                                                    Mexicana Airline’s
                                                                                     business class in-                                                September - ESPN
                                                                                                                                Denver, Colorado
                                                                                      flight magazine.                                                  story on IVESCO   82,667.73 USD
                                                                                                            National Parks,     Springs, Manitou
                           Elite magazine,                        Elite – 10,000         ESPN is the                                                           field      ESPN
                                             Enrique Escalona                                              Sports scene and     Springs, Durango,
      July                ESPN en español,                       ESPN – 80,000      Spanish version of                                                 September – Mesa
                                              David Paniagua                                              urban experience in   Mesa Verde,
                           LaGiraffe.com                        LaGiraffe – 8,000    the US magazine.                                                        Verde in     7,924.60
                                                                                                                Denver          Durango - Silverton
                                                                                     Only a small % of                                                    LaGiraffe.com   LaGiraffe.com
                                                                                                                                train
                                                                                    the content is from
                                                                                      the US version.



             Group Media:
                                               Attending        Circulation of                                                                             Date Article
Date of FAM Trip            Publication                                                       Profile                  Theme            Destinations
                                               Journalist        Publication                                                                                Appeared          PR Value $


             Monday, May 02, 2011                                                                                                                                              5
                                                                                                                                       Denver, Vail,
                                                                            Mexico’s most important high-
                                                                                                                                      Aspen, Durango,
                        Bleu & Blanc      Hilda Dominguez     43,800        end travel magazine. It                                                                      28,680 USD per
September 9 – 15                                                                                                                        Mesa Verde,           TBD
                         magazine            (Co-editor)      monthly       celebrated its 10th anniversary                                                              page
                                                                                                                                      Black Canyon of
                                                                            this month.
                                                                                                                                       the Gunnison
                                                                                                                                       Denver, Vail,
                                                                            Mexico’s most important high-
                                                                                                                                      Aspen, Durango,
                        Bleu & Blanc     Carlos García Mora                 end travel magazine. It                                                                      28,680 USD per
September 9 – 15                                              43,800                                                                    Mesa Verde,         Feb 2011
                         magazine          (photographer)                   celebrated its 10th anniversary                                                              page
                                                                                                                                      Black Canyon of
                                                                            this month.
                                                                                                                                       the Gunnison
                                                                                                                                       Denver, Vail,
                                                                            Mexican edition of the
                                                                                                                                      Aspen, Durango,
                                                              70,560        renowned US magazine. The                                                                    37,322.83 USD per
September 9 – 15            GQ             Mariela Gomez                                                                                Mesa Verde,     Dec-Jan issue
                                                              monthly       most popular men’s magazine                                                                  page
                                                                                                                                      Black Canyon of
                                                                            in México.
                                                                                                                                       the Gunnison
                                                                            Mexico’s most prestigious
                                                                                                                                       Denver, Vail,
                                                                            newspaper. It also publishes
                                                                                                                 Denver cultural      Aspen, Durango,
                     De viaje, Reforma   Sergio Zepeda de     145,963       “Mural” in Guadalajara and “El
September 9 – 15                                                                                                 scene and five         Mesa Verde,     September 26th   123,917.6 USD
                        newspaper         Alba (journalist)    weekly       Norte” in Monterrey. Contents
                                                                                                                 neighbourhoods       Black Canyon of
                                                                            are shared in these three
                                                                                                                                       the Gunnison
                                                                            editions.
                                                                            Mexico’s most prestigious
                                                                                                                                       Denver, Vail,
                                                                            newspaper. It also publishes
                                                                                                                                      Aspen, Durango,
                     De viaje, Reforma   Yolanda Garduño      145,963       “Mural” in Guadalajara and “El                                                               30,000 USD per
September 9 – 15                                                                                                                        Mesa Verde,         Sept 2010
                        newspaper         (photographer)       weekly       Norte” in Monterrey. Contents                                                                page
                                                                                                                                      Black Canyon of
                                                                            are shared in these three
                                                                                                                                       the Gunnison
                                                                            editions.
                                                                            High-end magazine with a                                   Denver, Vail,
                                                                            monthly print-run of 10,000                               Aspen, Durango,
                                           Liliana García     10,000                                                                                                     24,000 USD per
September 9 – 15         La Revista                                         copies. Half of it is distributed                           Mesa Verde,           TBD
                                                Brena         monthly                                                                                                    page
                                                                            to a VIP database                                         Black Canyon of
                                                                            (personalized copies)                                      the Gunnison



         Media Events:

         Lilliana Maya attended the 3rd Editorial Board meeting of De Viaje! travel section (Reforma newspaper). Since a Colorado story was
         featured on the cover, the topic was discussed during the meeting with very positive feedback.

         Travel Trade Promotions

         Current Co-ops:
         Company            Details                                     Dates                    Partners       On-Line OR Off-Line               Results


         Tac Tours          OFFLINE CAMPAIGN – CONSUMER                 Ski season 2010 –                                  Off line
                                                                              2011

         Servicios de       OFFLINE CAMPAIGN – CONSUMER                   Summer 2011                                      Off line
         viaje 365



         Monday, May 02, 2011                                                                                                                                                 6
Iconn Travel    ON & OFFLINE CAMPAIGN – CONSUMER              Summer 2011                            On / offline


Holam           OFFLINE CAMPAIGN – CONSUMER                   Summer 2011                              Off line




Trade Contacts/Sales Calls/Sales Leads:

Profetur – Met with Liliana Samano (Managing Director) to present Colorado’s summer proposal and deliver brochures. Mr. Cesar Sanchez will
contact us once they review the information in order to put a package together and book training sessions for their travel agents.

Hivisa Viajes – Met with Dulce Silva (Travel Agent) to present Colorado’s summer proposal and deliver brochures. Ms. Silva will contact us to
help her out with her clients information requests for summer vacation.

Grupo Travel – Met with Martín Cid Ramírez (Special Proyects) to present Colorado’s summer proposal and deliver brochures. Mr. Cesar
Sánchez will contact us once he reviews the information and let us know if it’s of interest to his clients.

Viajes Tresmares – Met with Juvenal Acosta (Sales Manager) to present Colorado’s summer proposal and deliver brochures. Mr. Cesar Sánchez
will contact us once he reviews the information and let us know if it’s of interest to his clients.

Boutique de Viajes – Met with Ms. Yuyi Ramirez to present Colorado’s summer proposal and deliver brochures. She will contact us to help her
out with her clients information requests for summer vacation.

Travel Trade Events, Trainings, Seminars, Workshops:
.

Trade FAMS (Group or Individual):
  Date of FAM                                                                                                       Participating
                     Company          Attending personnel          Title             Profile / Current product                       Results
      Trip                                                                                                          Destinations




Travel Tradeshows:

Consumer Promotions

Consumer-Related Programs (Consumer shows/Consumer leads): 1

Consumer Inquires without brochure fulfilment:

Distribution of Materials for corresponding Month and Cumulative Amount to date:


Monday, May 02, 2011                                                                                                                            7
Month                                             www.colorado.com              Other – telephone/ email request          Total
July 2010                 0                                                 2                                      2
August 2010
September 2010
October 2010
November 2010
December 2010
January 2011              1                                                 -                                      1
February 2011
March 2011                0                                                 1000                                   1000
April 2011                0                                                 4                                      4
May 2011
June 2011
Total

                                                      Colorado Fulfilment Stats 2009
Total fulfilment graph
                                                        200

                               No of packs sent
                                                        150
                                                        100
                                                         50
                                                          0
                                                              Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

                                                              Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
                         Packs (Colorado.com                   67
                         requests)
                         Trade packs (phone                    75
                         requests)
                         Consumer packs (phone                  3
                         requests)




Monday, May 02, 2011                                                                                                              8
                                     MARKET INTELLIGENCE

                                               Economy


                           July 10    August     Sept 10    October    Nov 10     Dec 10

Exchange Rate (U.S)         13.35      13.26      12.82      12.43      12.33      12.41

Consumer Confidence
                             87.4       88.7       91.6      92.05       88.5       91.2
Index


                           Jan 11     Feb 11     Mar 11     Apr 11     May 11     Jun 11

Exchange Rate (U.S)         12.22      12.14

Consumer Confidence
                             92.3       92.3
Index


                                            Media Trends
Print – newspapers
Milenio newspaper hired Mr. Gustavo Armenta (highly respected in the tourism sector) to direct &
redefine its travel section so that they can launch it as soon as possible.

Print – magazines
Mr. Valerio Negri is no longer Editor in Bleu & Blanc magazine. The position is still available as the
Editorial Company that owns the title is undergoing a major restructure and all positions are being
redefined.

Editorial Orange (Golf & Spa owner) is working on a new project to edit an upscale travel magazine.
The publication should be launched in 1 or 2 months.

Online


Broadcast


General
Due to Holy Week vacation, April is usually a very slow month during which very little action takes
place. Most people take vacation within the second half of the month thus communications, decision
making and other projects slow down and / or are postponed until May.




Monday, May 02, 2011                                                                                     9
Monthly Report – TravelPIE – México                                        CTO Mexico – May 2011
Fast Facts:

 Highlight 1:
        This month, TravelPIE attended one of the most important trade shows of the year (organized by
        CONFETUR association). During the event, Ms. Lilliana Maya had the opportunity to meet with 200
        travel agents in order to update them on Colorado’s summer proposal, introduce them to the state travel
        guide and receive their feedback on the topics that were of most interest to them.

 Highlight 2:
       TravelPIE participated in the Colorado booth during Pow Wow 2011. Even though very few wholesalers
       were present, it was possible to contact two new receptives / TO’s that have summer product with the
       characteristics that Mexican wholesalers are looking for. Considering the narrow product availability has
       been the major obstacle while trying to sell Colorado in summer & fall, the possibility of working with 2
       new TO’s will give us more resources to better position Colorado in the Mexican market.

Public Relations
     • Numbers of Media Calls/Follow up Calls: 25
     • Press Release sent: 1
     • Attended: 1

     •   Total Monthly Media Equivalency compared Year to Date in US Dollars:
         $154,093.02 (May 2010 $43,533.42 USD = 110,559.6 USD more this year)
     •   Total Cumulative Equivalency compared Year to Date in In-Market currency:
         $42,298,180.28 MXP

     •   TravelPIE PR Placed Monthly Media Equivalency compared Year to Date in US Dollars:
         $154,093.02 (May 2010 $43,533.42 USD = 110,559.6 USD more this year)
     •   TravelPIE PR Placed Cumulative Equivalency compared Year to Date in In-Market currency:
         $41,721,154.05 MXP

Travel Trade
     • Number of Sales Calls: 20
     • Number of Trade Inquiries: 7
     • Attended: 3

Current Running Co-Ops
     • Tac Tours (Monterrey) – Printed advertising on travel section of “El Norte” newspaper and “Publitur”
        trade magazine
     • Holam (DF) – Printed brochure distribution among their travel agencies promoting Colorado product and
        trade breakfast to present the packages that will be promoted for the season.
     • Iconn Travel (DF) – Online & printed campaign for Bancomer credit card holders, promoting Colorado
        summer products & packages.
     • Servicios de viaje 365 (Guadalajara) – Trade luncheon & seminar to promote / sell 2 Colorado summer
        packages.

Consumer Fulfilment
    • Number of Consumer Inquiries: 0
    • Distribution of Materials: 0

US Dollar Exchange Rate 11.45


Friday, June 03, 2011                                                                                              1
    •   Compared to 12.68 in May 2010

Online Activities:
 CTO Official Website Visitors (Mexico’s version of Colorado.com): 1,355 visits
 Website Visitors from Mexico: 296




Friday, June 03, 2011                                                             2
           TravelPIE – Monthly Report
           Public Relations

           Total Media Equivalency Clipping Evaluation Report – TravelPIE
                                                                                                              Evaluation
                                                      Date of                              Circulation and                   Evaluation in USD                              Details
   Publication                     Title                               Journalist                             (in market                         Source
                                                    Publication                                 Type                         – Ad Equivalency
                                                                                                              currency)
                                                                                                                                                          The story talks about Colorado’s hot
                             Spas al natural en               th                              Travel trade                                                springs, from the largest hot springs water
Boletinturistico.com                                 May 15         Alejandra Mireles                           172,000          15,087.71        PR
                                Colorado                                                        website                                                   pool in the world to the most secluded
                                                                                                                                                          resort.
                                                                                                                                                          The story talks about Colorado’s hot
                                                                                              Travel trade
                             Spas al natural en               th                                                                                          springs, from the largest hot springs water
Boletinturistico.com                                 May 15         Alejandra Mireles        media – weekly     172,000          15,087.71        PR
                                Colorado                                                                                                                  pool in the world to the most secluded
                                                                                               newsletter
                                                                                                                                                          resort.
                                                                                           Newspaper travel
                                                                   Sergio Zepeda de                                                                       The article provides practical information
Reforma newspaper         Silverton, Colorado           May                                guide (exclusive   1,418,856.52      123,917.60        PFG
                                                                         Alba                                                                             on Silverton, Durango and Mesa Verde.
                                                                                            for subscriber)

           Source Key –
           PFI or PFG              Press FAM result (individual or group)
           PR                      Result of press release
           PC                      Result of press conference/media event
           P                       Result of the promotion
           GA                      Result of general PR activity
           NA                      Not Assisted by CTO

           Total Placed Media Equivalency Chart Report – Generated by TravelPIE
             Month                  Total Placed Equivalency FY 10 USD       Combined Equivalency USD
                 July 2010          $23,880.7                                $23,880.7
               August 2010          $300,393.27                              $324,273.97
             September 2010         $494,893.96                              $819,167.93
               October 2010         $450,684.39                              $1,269,852.32
              November 2010         $ 56,162.98                              $ 1,326,015.3
              December 2010         $876,045.17                              $2,202,060.47
               January 2011         $649,551.95                              $2,851,612.42
              February 2011         $139,917.62                              $2,991,530
                 March 2011         $337,326.57                              $3,328,966.57
                 April 2011         $44,933.62                               $3,373,900.19
                 May 2011           $154,093.02                              $3,527,993.21
                 June 2011

                  TOTAL             $3,527,993.21                            $3,527,993.21



           Friday, June 03, 2011                                                                                                                                                       3
Total Media Equivalency Chart Report – Generated from all sources on Colorado
Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $36,430.7                            $36,430.7
  August 2010     $300,393.27                          $336,823.97
 September 2010   $494,893.96                          $831,717.93
  October 2010    $450,684.39                          $1,282,402.32
 November 2010    $ 80,679.11                          $ 1,363,081.43
 December 2010    $885,384.4                           $2,248,465.83
  January 2011    $649,551.95                          $3,037,935.4
  February 2011   $139,917.62                          $3,177,853.02
   March 2011     $337,326.57                          $3,515,179.59
   April 2011     $44,933.62                           $3,560,113.21
    May 2011      $154,093.02                          $3,714,206.23
   June 2011

     TOTAL        $3,714,206.23                        $3,714,206.23




Friday, June 03, 2011                                                             4
             Press Releases:
             A “USA Pro Challenge” press release was distributed to our media database.

             B-Roll, Video and Photo Usage:
             Alejandra Mireles from BoletínTurístico.com requested images to publish a story on Colorado’s hot springs. The story was scheduled for
             publication on May 15th.

             Update of Media Calls/Press Contacts:

             Marck Guttman. Coeditor Bleu&Blanc / Glamour Mexico’s travel section
             Since Mr Guttman is attending the summer media fam trip, he requested our support to get a one night stay at the “Stanley Hotel” in order to write
             a story on the property for the 2 magazines he collaborates with.

             Alejandra Mireles. Editor Boletinturistico.com
             Ms Mireles sent an email to inform of her new position as Web Editor and requested images to publish a story on Colorado’s hot springs.

             Claudio Perdomo. Gatopardo magazine
             Mr. Perdomo sent an email to inform he recently took over the Commercial Manager position and requested to include his contact information in
             our media database.

             Gabriel Valdéz – Resaca deportiva
             Mr. Valdéz email to inform he’s about to launch a new TV show and requested b-roll to use on the first chapters. Information & instructions on how
             to access the media room at Colorado.com website were provided and he agreed on informing if any of the material is broadcasted.

             Jose Antonio Lopez Sosa. Perspectiva – ABC Radio
             Invited Lilliana Maya to his radio show to talk about Colorado’s summer proposal. The appointment has been scheduled for the firt weekend of
             June.

             Rubén Hernández. Fórmula turística radio show
             Met with Mr. Hernandez during Pow Wow and arranged an interview with Michael Driver in order to provide an update on what Colorado has
             prepared for its visitors during summer & fall. Mr. Hernandez will let us know when the interview is aired.

             Confirmed Individual Media FAM Trips
                                            Attending        Circulation of                                                                         Date Article
Date of FAM Trip         Publication                                                 Profile                Theme              Destinations                             PR Value $
                                            Journalist        Publication                                                                            Appeared
                                                                                Mexicana Airline’s
                                                                                 business class in-                                               September - ESPN
                                                                                                                            Denver, Colorado
                                                                                  flight magazine.                                                 story on IVESCO   82,667.73 USD
                                                                                                        National Parks,     Springs, Manitou
                       Elite magazine,                        Elite – 10,000         ESPN is the                                                          field      ESPN
                                         Enrique Escalona                                              Sports scene and     Springs, Durango,
      July            ESPN en español,                       ESPN – 80,000      Spanish version of                                                September – Mesa
                                          David Paniagua                                              urban experience in   Mesa Verde,
                       LaGiraffe.com                        LaGiraffe – 8,000    the US magazine.                                                       Verde in     7,924.60
                                                                                                            Denver          Durango - Silverton
                                                                                 Only a small % of                                                   LaGiraffe.com   LaGiraffe.com
                                                                                                                            train
                                                                                the content is from
                                                                                   the US version.




             Friday, June 03, 2011                                                                                                                                        5
         Group Media Fam Trips:
                                           Attending            Circulation of                                                                                 Date Article
Date of FAM Trip     Publication                                                               Profile                    Theme           Destinations
                                           Journalist            Publication                                                                                    Appeared               PR Value $
                                                                                                                                          Denver, Vail,
                                                                                  Mexico’s most important high-
                                                                                                                                        Aspen, Durango,
September 9 – 15     Bleu & Blanc       Hilda Dominguez            43,800         end travel magazine. It                                                                          28,680 USD per
                                                                                                   th                                     Mesa Verde,             TBD
     2010             magazine             (Co-editor)             monthly        celebrated its 10 anniversary                                                                    page
                                                                                                                                        Black Canyon of
                                                                                  this month.
                                                                                                                                         the Gunnison
                                                                                                                                          Denver, Vail,
                                                                                  Mexico’s most important high-
                                                                                                                                        Aspen, Durango,
September 9 – 15     Bleu & Blanc      Carlos García Mora                         end travel magazine. It                                                                          28,680 USD per
                                                                   43,800                          th                                     Mesa Verde,           Feb 2011
     2010             magazine           (photographer)                           celebrated its 10 anniversary                                                                    page
                                                                                                                                        Black Canyon of
                                                                                  this month.
                                                                                                                                         the Gunnison
                                                                                                                                          Denver, Vail,
                                                                                  Mexican edition of the
                                                                                                                                        Aspen, Durango,
September 9 – 15                                                   70,560         renowned US magazine. The                                                                        37,322.83 USD per
                         GQ              Mariela Gomez                                                                                    Mesa Verde,         Dec-Jan issue
     2010                                                          monthly        most popular men’s magazine                                                                      page
                                                                                                                                        Black Canyon of
                                                                                  in México.
                                                                                                                                         the Gunnison
                                                                                  Mexico’s most prestigious
                                                                                                                                          Denver, Vail,
                                                                                  newspaper. It also publishes
                                                                                                                      Denver cultural   Aspen, Durango,
September 9 – 15   De viaje, Reforma    Sergio Zepeda de           145,963        “Mural” in Guadalajara and “El                                                              th   123,917.6 USD per
                                                                                                                      scene and five      Mesa Verde,         September 26
     2010             newspaper          Alba (journalist)          weekly        Norte” in Monterrey. Contents                                                                    page
                                                                                                                      neighbourhoods    Black Canyon of
                                                                                  are shared in these three
                                                                                                                                         the Gunnison
                                                                                  editions.
                                                                                  Mexico’s most prestigious
                                                                                                                                         Denver, Vail,
                                                                                  newspaper. It also publishes
                                                                                                                                        Aspen, Durango,
September 9 – 15   De viaje, Reforma    Yolanda Garduño            145,963        “Mural” in Guadalajara and “El                                                                   123,917.6 USD per
                                                                                                                                          Mesa Verde,           Sept 2010
     2010             newspaper          (photographer)             weekly        Norte” in Monterrey. Contents                                                                    page
                                                                                                                                        Black Canyon of
                                                                                  are shared in these three
                                                                                                                                         the Gunnison
                                                                                  editions.
                                                                                  High-end magazine with a                                Denver, Vail,
                                                                                  monthly print-run of 10,000                           Aspen, Durango,
September 9 – 15                          Liliana García           10,000                                                                                                          24,000 USD per
                      La Revista                                                  copies. Half of it is distributed                       Mesa Verde,             TBD
     2010                                      Brena               monthly                                                                                                         page
                                                                                  to a VIP database                                     Black Canyon of
                                                                                  (personalized copies)                                  the Gunnison
                                                                                  Glamour is the Latinamerican
                                                                                  edition of the famous US
                                                                                                                                        Fort Collins, Estes
                                                                                  magazine and definitiely, one                                                                     $37,128.2 usd per
                                                                                                                                        Park, RMNP, Vail,
                   Glamour Mexico /                            130,850 monthly    of the most popular female                                                                       page (Glamour)
June 8 – 14 2011                         Marck Guttman                                                                                       Boulder,             TBD
                     Bleu & Blanc                              / 43,800 monthly   lifestyle publications.                                                                          / 28,680 USD per
                                                                                                                                         Breckenridge &
                                                                                  Bleu&Blanc is Mexico’s most                                                                      page (B&B)
                                                                                                                                             Denver.
                                                                                  prestigious high-end travel
                                                                                  magazine.
                                                                                  The Mexican version of the
                                                                                                                                        Fort Collins, Estes
                                                                                  renowned US magazine,
                       National                                                                                                         Park, RMNP, Vail,
                                          Cecilia Bastida                         targets educated and                                                                             $32,000 usd per
June 8 – 14 2011      Geographic                               35,000 monthly                                                                Boulder,             TBD
                                       Figueroa (journalist)                      sophisticated travelers in                                                                       page
                       Traveler                                                                                                          Breckenridge &
                                                                                  search of something more
                                                                                                                                             Denver.
                                                                                  than a “touristic experience”.
                                                                                  The Mexican version of the
                                                                                                                                        Fort Collins, Estes
                                                                                  renowned US magazine,
                       National                                                                                                         Park, RMNP, Vail,
                                         Andrea Arzaba                            targets educated and                                                                             $32,000 usd per
June 8 – 14 2011      Geographic                               35,000 monthly                                                                Boulder,             TBD
                                       Díaz (photographer)                        sophisticated travelers in                                                                       page
                       Traveler                                                                                                          Breckenridge &
                                                                                  search of something more



         Friday, June 03, 2011
                                                                                                                                             Denver.
                                                                                  than a “touristic experience”.

                                                                                                                                                                                        6
                                                                                   Mexico’s most prestigious
                                                                                                                                              Fort Collins, Estes
                                                                                   newspaper. It also publishes
                                                                                                                                              Park, RMNP, Vail,
                                          Analine Cedillo         145,963          “Mural” in Guadalajara and “El                                                            123,917.6 USD per
June 8 – 14 2011     Reforma, De viaje!                                                                                                            Boulder,            TBD
                                          Coss (journalist)        weekly          Norte” in Monterrey. Contents                                                             page
                                                                                                                                               Breckenridge &
                                                                                   are shared in these three
                                                                                                                                                   Denver.
                                                                                   editions.
                                                                                   Mexico’s most prestigious
                                                                                                                                              Fort Collins, Estes
                                                                                   newspaper. It also publishes
                                          Carlos Figueroa                                                                                     Park, RMNP, Vail,
                                                                  145,963          “Mural” in Guadalajara and “El                                                            123,917.6 USD per
June 8 – 14 2011     Reforma, De viaje!      Ramírez                                                                                               Boulder,            TBD
                                                                   weekly          Norte” in Monterrey. Contents                                                             page
                                          (photographer)                                                                                       Breckenridge &
                                                                                   are shared in these three
                                                                                                                                                   Denver.
                                                                                   editions.
                                                                                   Radio magazine that features
                                                                                   a travel section (international
                                                                                                                                              Fort Collins, Estes
                                                                                   and national destinations) that
                                                                                                                                              Park, RMNP, Vail,
                        Perspectiva,                                               discusses the following topics:                                                           $1,077 usd for a 20
June 8 – 14 2011                          Lorena Bracho       200,000 listeners                                                                    Boulder,            TBD
                        ABC Radio                                                  Urban vacation, ecotourism,                                                               second spot
                                                                                                                                               Breckenridge &
                                                                                   shopping, dining, upscale
                                                                                                                                                   Denver.
                                                                                   hotels, summer & family
                                                                                   activities, arts & culture, sports



         Media Events:

         TravelPIE attended a trade breakfast hosted by Holam & Vail Resorts in representation of CTO.

         Travel Trade Promotions

         Current Co-ops:
         Company            Details                                           Dates                      Partners       On-Line OR Off-Line                  Results


         Tac Tours          OFFLINE CAMPAIGN – CONSUMER                       Ski season 2010 –                                    Off line
                                                                                     2011

         Servicios de       OFFLINE CAMPAIGN – CONSUMER                           Summer 2011                                      Off line
         viaje 365

         Iconn Travel       ON & OFFLINE CAMPAIGN – CONSUMER                      Summer 2011                                    On / offline


         Holam              OFFLINE CAMPAIGN – CONSUMER                           Summer 2011                                      Off line




         Trade Contacts/Sales Calls/Sales Leads:

         iTrip – Visited the agency that opened 3 months ago to provide a general review of Colorado as a year round destination. The Product Manager
         agreed on contacting us as soon as they start building packages for international destinations.


         Friday, June 03, 2011                                                                                                                                                     7
Agrotour – Provided an update on Colorado’s offer and delivered travel guides. They specialize in groups and agreed on contacting us whenever
one of their clients requested further information on Colorado.

Corporación de Viajes – Delivered Colorado travel guides and briefed them on the state’s proposal for summer..

Iconn Travel – Met with Claudia Lopez and Guillermo Viquez to go through the final details of the summer packages that will be promoted in
Bancomer’s website. Mr. Viquez requested our support to find a more “traditional” TO / receptive that can provide “Meet&Greet” packages as well
as Spanish speaking guides.

Holam – Met with Miriam Braverman to go through the Colorado summer packages and update her on the new summer product available at
ski.com website.

Abiega Operadora – Requested our support to contact a property at Breckenridge for a 20 group people interested on booking a ski trip. Jennifer
Viditz-Ward attended this request.

Panorama Viajes (Guadalajara city) – Met to deliver additional travel guides in Spanish and provide a brief seminar on Colorado’s summer
proposal.

SCTours (Guadalajara city) - Met to deliver additional travel guides in Spanish and provide a brief seminar on Colorado’s summer proposal.

Servicios de viajes 365 (Guadalajara city) – Met with Ms. Lily Damian to host the trade dinner and seminar to promote Colorado’s summer
packages.

Travel Trade Events, Trainings, Seminars, Workshops:

•
                                                      th
      Servicios de viaje event took place on May 16 . Lilliana Maya imparted a seminar focused on the packages promoted by the wholesaler and
      explained to the attendants (their top 35 travel agents) the content and tools they will find in the state’s travel guide.


Trade FAMS (Group or Individual):
    Date of FAM                                                                                                    Participating
                       Company          Attending personnel           Title            Profile / Current product                        Results
        Trip                                                                                                       Destinations




Travel Tradeshows:

•     Confetur trade show took place on May 18th at the “Centro Asturiano”. Over 200 travel agencies attended the event, all of them received a
      Colorado State guide in Spanish as well as a brief seminar on the state’s proposal as a year round destination.

•     Pow Wow took place from May 22nd – 25th. TravelPIE was present at the Colorado booth.



Friday, June 03, 2011                                                                                                                             8
Consumer Promotions

Consumer-Related Programs (Consumer shows/Consumer leads): 1

Consumer Inquires without brochure fulfilment:

Distribution of Materials for corresponding Month and Cumulative Amount to date:

Month                                                    www.colorado.com              Other – telephone/ email request          Total
July 2010                        0                                                 2                                      2
August 2010
September 2010
October 2010
November 2010
December 2010
January 2011                     1                                                 -                                      1
February 2011
March 2011                       0                                                 1000                                   1000
April 2011                       0                                                 4                                      4
May 2011
June 2011
Total

                                                             Colorado Fulfilment Stats 2009
Total fulfilment graph
                                                               200
                                      No of packs sent




                                                               150
                                                               100
                                                                50
                                                                 0
                                                                     Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

                                                                     Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
                               Packs (Colorado.com                    67
                               requests)
                               Trade packs (phone                     75
                               requests)
                               Consumer packs (phone                   3
                               requests)




Friday, June 03, 2011                                                                                                                    9
                                      MARKET INTELLIGENCE

                                                Economy


                            July 10    August     Sept 10    October     Nov 10     Dec 10

Exchange Rate (U.S)          13.35      13.26      12.82       12.43      12.33      12.41

Consumer Confidence
                             87.4        88.7       91.6       92.05       88.5       91.2
Index


                            Jan 11     Feb 11     Mar 11      Apr 11     May 11     Jun 11

Exchange Rate (U.S)          12.22      12.14

Consumer Confidence
                             92.3        92.3
Index


                                             Media Trends
Print – newspapers
The travel sections published on the second and third weeks of may were significantly larger due to
upcoming summer vacation. Topics that prevailed are: family destinations, beaches and eco-tourism.

Print – magazines
Mr. Marck Guttman left the position of Coeditor in Bleu&Blanc magazine to become a regular
collaborator of this publication and, starting May, he will also be in charge of the travel section of
Glamour Mexico’s magazine.

Joseph Estavillo gave up his position as Art Editor for Travel + Leisure magazine and is currently
working as Art Director for GQ Mexico magazine.

Online


Broadcast


General




Friday, June 03, 2011                                                                                    10
Monthly Report – TravelPIE – México                                        CTO Mexico – June 2011
Fast Facts:

  Highlight 1:
         TravelPIE attended the most important trade show in Guadalajara (organized by ARLAG association).
         During the event, Ms. Lilliana Maya had the opportunity to meet with 600 travel agents in order to
         update them on Colorado’s summer proposal and introduce them to the state travel guide.

  Highlight 2:
         The summer media group fam trip that took place in June was a major success as all the media that
         participated returned convinced of the state’s amazing proposal as a year round destination. The
         itinerary provided the journalists with material to write more than one story on Colorado’s summer
         proposal (microbreweries and outdoor activities were the most popular topics).

Public Relations
     • Numbers of Media Calls/Follow up Calls: 20
     • Press Release sent: 1
     • Attended: 1

     •   Total Monthly Media Equivalency compared Year to Date in US Dollars:
         $281,336.03 (June 2010 $176,715.53 USD = 104,620.5 USD more this year)
     •   Total Cumulative Equivalency compared Year to Date in In-Market currency:
         $45,547,611.42 MXP

     •   TravelPIE PR Placed Monthly Media Equivalency compared Year to Date in US Dollars:
         $281,336.03 (June 2010 $164,165.53 USD = 117,170.5 USD more this year)
     •   TravelPIE PR Placed Cumulative Equivalency compared Year to Date in In-Market currency:
         $44,970,585.19 MXP

Travel Trade
     • Number of Sales Calls: 30
     • Number of Trade Inquiries: 4
     • Attended: 3

Current Running Co-Ops
     • Tac Tours (Monterrey) – Printed advertising on travel section of “El Norte” newspaper and “Publitur”
        trade magazine
     • Iconn Travel (DF) – Online & printed campaign for Bancomer credit card holders, promoting Colorado
        summer products & packages.
     • Servicios de viaje 365 (Guadalajara) – Trade luncheon & seminar to promote / sell 2 Colorado summer
        packages.

Consumer Fulfilment
    • Number of Consumer Inquiries: 0
    • Distribution of Materials: 0

US Dollar Exchange Rate 11.55
   • Compared to 12.94 in June 2010

Online Activities:
 CTO Official Website Visitors (Mexico’s version of Colorado.com): 1,481 visits


Friday, July 22, 2011
 Website Visitors from Mexico: 285

                                                                                                              1
          TravelPIE – Monthly Report
          Public Relations

          Total Media Equivalency Clipping Evaluation Report – TravelPIE
                                                                                                              Evaluation
                                                      Date of                               Circulation and                Evaluation in USD                              Details
   Publication                    Title                                 Journalist                            (in market                       Source
                                                    Publication                                  Type                      – Ad Equivalency
                                                                                                              currency)
                                                                                                                                                        The 15 minute live broadcast provides a
                                                                      Lilliana Maya &
Perspectiva, ABC                                              th                              Weekly radio                                              general review on Colorado’s offer during
                         Summer in Colorado          June 4         Jose Antonio Lopez                        466,475.62       40,387.5         PR
     Radio                                                                                      show                                                    summer and talks about “The Sebastian”
                                                                            Sosa
                                                                                                                                                        property that hosted the live transmission.
                                                                                                                                                        The 25 minute live broadcast provides a
Perspectiva, ABC                                               th                             Weekly radio                                              general review on Colorado’s offer during
                         Summer in Colorado          June 10          Lorena Bracho                           932,951.25        80,775          PFG
     Radio                                                                                      show                                                    summer and talks about “The Sebastian”
                                                                                                                                                        property that hosted the live transmission.
                                                                                                                                                        The 20 minute live broadcast provides a
    Formula              Summer in Colorado,                   th                             Weekly radio
                                                     June 26          Lorena Bracho                            746,361          64,620          PFG     general review on Colorado’s offer during
   Confidencial               Part 2                                                            show
                                                                                                                                                        summer.
                                                                                               Newspaper                                                The article features “The Sebastian” at
                                                               th
 Mural, De Viaje!       Galería en las montañas      June 26          Analine Cedillo         weekly travel   519,361.57       44,966.37        PFG     Vail and provides a general update on
                                                                                                section                                                 what’s new on this famous mountain.
                                                                                               Newspaper                                                The article features “The Sebastian” at
                                                               th
Reforma, De Viaje!      Galería en las montañas      June 26          Analine Cedillo         weekly travel   519,361.57       44,966.37        PFG     Vail and provides a general update on
                                                                                                section                                                 what’s new on this famous mountain.
                                                                                               Newspaper                                                The story features Vail International
                        Festival Internacional de              th
Reforma, De Viaje!                                   June 26          Analine Cedillo         weekly travel   64,920.19        5,620.79         PFG     Dance Festival in the agenda of events
                             Danza en Vail
                                                                                                section                                                 recommended for the upcoming month.

          Source Key –
          PFI or PFG              Press FAM result (individual or group)
          PR                      Result of press release
          PC                      Result of press conference/media event
          P                       Result of the promotion
          GA                      Result of general PR activity
          NA                      Not Assisted by CTO




          Total Placed Media Equivalency Chart Report – Generated by TravelPIE
            Month                 Total Placed Equivalency FY 10 USD          Combined Equivalency USD
                  July 2010       $23,880.7                                   $23,880.7
              August 2010          $300,393.27                                $324,273.97
            September 2010        $494,893.96                                 $819,167.93
              October 2010         $450,684.39                                $1,269,852.32
             November 2010         $ 56,162.98                                $ 1,326,015.3
             December 2010        $876,045.17                                 $2,202,060.47



          Friday, July 22, 2011                                                                                                                                                      2
  January 2011    $649,551.95                          $2,851,612.42
  February 2011   $139,917.62                          $2,991,530
   March 2011     $337,326.57                          $3,328,966.57
   April 2011     $44,933.62                           $3,373,900.19
    May 2011      $154,093.02                          $3,527,993.21
   June 2011      $281,336.03                          $3,809,329.24
     TOTAL        $3,809,329.24                        $3,809,329.24




Total Media Equivalency Chart Report – Generated from all sources on Colorado
Month             Total Placed Equivalency FY 10 USD   Combined Equivalency USD
    July 2010     $36,430.7                            $36,430.7
  August 2010     $300,393.27                          $336,823.97
 September 2010   $494,893.96                          $831,717.93
  October 2010    $450,684.39                          $1,282,402.32
 November 2010    $ 80,679.11                          $ 1,363,081.43
 December 2010    $885,384.4                           $2,248,465.83
  January 2011    $649,551.95                          $3,037,935.4
  February 2011   $139,917.62                          $3,177,853.02
   March 2011     $337,326.57                          $3,515,179.59
   April 2011     $44,933.62                           $3,560,113.21
    May 2011      $154,093.02                          $3,714,206.23
   June 2011      $281,336.03                          $3,995,542.26
     TOTAL        $3,995,542.26                        $3,995,542.26




Friday, July 22, 2011                                                             3
             Press Releases:
             A “Colorado festivals you can’t miss” press release was distributed to our media database.

             B-Roll, Video and Photo Usage:
             Joseph Estavillo (GQ magazine) received 4 high resolution images on the US Pro Challenge. Alejandra Mireles (Boletinturistico.com) received 4
             images on the US Pro Challenge to illustrate a story that will be uploaded in the website.

             Update of Media Calls/Press Contacts:

             Alejandra Mireles. Editor - Boletinturistico.com
             Ms Mireles sent an email to request information and images on the US Pro Challenge in order to write a story on the competition. Material was
             sent to her and she will confirm once the story is published.

             Joseph Estavillo. Art Editor - GQ magazine
             Mr. Estavillo sent an email to request information and images on the US Pro Challenge in order to feature a note on the competition. Material was
             sent to him so that the note can be included in the June edition.

             Nonantzin Martinez. Health & Nutrition Editor - Balance magazine
             Emailed Lilliana Maya to inform she’s currently working for Balance magazine and requested to be added to our media database. Ms. Martinez
             already received June’s press release.

             Confirmed Individual Media FAM Trips
                                             Attending         Circulation of                                                                               Date Article
Date of FAM Trip         Publication                                                    Profile                   Theme              Destinations                               PR Value $
                                             Journalist         Publication                                                                                  Appeared
                                                                                   Mexicana Airline’s
                                                                                    business class in-                                                    September - ESPN
                                                                                                                                  Denver, Colorado
                                                                                     flight magazine.                                                      story on IVESCO   82,667.73 USD
                                                                                                           National Parks,        Springs, Manitou
                       Elite magazine,                          Elite – 10,000          ESPN is the                                                               field      ESPN
                                          Enrique Escalona                                                Sports scene and        Springs, Durango,
      July            ESPN en español,                         ESPN – 80,000       Spanish version of                                                     September – Mesa
                                           David Paniagua                                                urban experience in      Mesa Verde,
                       LaGiraffe.com                          LaGiraffe – 8,000     the US magazine.                                                            Verde in     7,924.60
                                                                                                               Denver             Durango - Silverton
                                                                                    Only a small % of                                                        LaGiraffe.com   LaGiraffe.com
                                                                                                                                  train
                                                                                   the content is from
                                                                                     the US version.



             Group Media Fam Trips:
                                             Attending        Circulation of                                                                                  Date Article
Date of FAM Trip        Publication                                                          Profile                      Theme           Destinations
                                             Journalist        Publication                                                                                     Appeared          PR Value $
                                                                                                                                          Denver, Vail,
                                                                                  Mexico’s most important high-
                                                                                                                                        Aspen, Durango,
September 9 – 15        Bleu & Blanc      Hilda Dominguez         43,800          end travel magazine. It                                                                    28,680 USD per
                                                                                                   th                                     Mesa Verde,          Feb 2011
     2010                magazine            (Co-editor)          monthly         celebrated its 10 anniversary                                                              page
                                                                                                                                        Black Canyon of
                                                                                  this month.
                                                                                                                                         the Gunnison
                                                                                                                                          Denver, Vail,
                                                                                  Mexico’s most important high-
                                                                                                                                        Aspen, Durango,
September 9 – 15        Bleu & Blanc     Carlos García Mora                       end travel magazine. It                                                                    28,680 USD per
                                                                  43,800                           th                                     Mesa Verde,          Feb 2011
     2010                magazine          (photographer)                         celebrated its 10 anniversary                                                              page
                                                                                                                                        Black Canyon of
                                                                                  this month.



             Friday, July 22, 2011
                                                                                                                                         the Gunnison

                                                                                                                                                                                  4
                                                                                                                                           Denver, Vail,
                                                                                   Mexican edition of the
                                                                                                                                         Aspen, Durango,
September 9 – 15                                                    70,560         renowned US magazine. The                                                                         37,322.83 USD per
                          GQ              Mariela Gomez                                                                                    Mesa Verde,         Dec-Jan issue
     2010                                                           monthly        most popular men’s magazine                                                                       page
                                                                                                                                         Black Canyon of
                                                                                   in México.
                                                                                                                                          the Gunnison
                                                                                   Mexico’s most prestigious
                                                                                                                                           Denver, Vail,
                                                                                   newspaper. It also publishes
                                                                                                                       Denver cultural   Aspen, Durango,
September 9 – 15   De viaje, Reforma     Sergio Zepeda de           145,963        “Mural” in Guadalajara and “El                                                               th   123,917.6 USD per
                                                                                                                       scene and five      Mesa Verde,         September 26
     2010             newspaper           Alba (journalist)          weekly        Norte” in Monterrey. Contents                                                                     page
                                                                                                                       neighbourhoods    Black Canyon of
                                                                                   are shared in these three
                                                                                                                                          the Gunnison
                                                                                   editions.
                                                                                   Mexico’s most prestigious
                                                                                                                                           Denver, Vail,
                                                                                   newspaper. It also publishes
                                                                                                                                         Aspen, Durango,
September 9 – 15   De viaje, Reforma     Yolanda Garduño            145,963        “Mural” in Guadalajara and “El                                                                    123,917.6 USD per
                                                                                                                                           Mesa Verde,           Sept 2010
     2010             newspaper           (photographer)             weekly        Norte” in Monterrey. Contents                                                                     page
                                                                                                                                         Black Canyon of
                                                                                   are shared in these three
                                                                                                                                          the Gunnison
                                                                                   editions.
                                                                                   High-end magazine with a                                Denver, Vail,
                                                                                   monthly print-run of 10,000                           Aspen, Durango,
September 9 – 15                           Liliana García           10,000                                                                                                           24,000 USD per
                      La Revista                                                   copies. Half of it is distributed                       Mesa Verde,         January 2011
     2010                                       Brena               monthly                                                                                                          page
                                                                                   to a VIP database                                     Black Canyon of
                                                                                   (personalized copies)                                  the Gunnison
                                                                                   Glamour is the Latinamerican
                                                                                   edition of the famous US
                                                                                                                                         Fort Collins, Estes
                                                                                   magazine and definitiely, one                                                                      $37,128.2 usd per
                                                                                                                                         Park, RMNP, Vail,
                   Glamour Mexico /                             130,850 monthly    of the most popular female                                                                        page (Glamour)
June 8 – 14 2011                          Marck Guttman                                                                                       Boulder,         October 2011
                     Bleu & Blanc                               / 43,800 monthly   lifestyle publications.                                                                           / 28,680 USD per
                                                                                                                                          Breckenridge &
                                                                                   Bleu&Blanc is Mexico’s most                                                                       page (B&B)
                                                                                                                                              Denver.
                                                                                   prestigious high-end travel
                                                                                   magazine.
                                                                                   The Mexican version of the
                                                                                                                                         Fort Collins, Estes
                                                                                   renowned US magazine,
                       National                                                                                                          Park, RMNP, Vail,
                                           Cecilia Bastida                         targets educated and                                                                              $32,000 usd per
June 8 – 14 2011      Geographic                                35,000 monthly                                                                Boulder,             TBD
                                        Figueroa (journalist)                      sophisticated travelers in                                                                        page
                       Traveler                                                                                                           Breckenridge &
                                                                                   search of something more
                                                                                                                                              Denver.
                                                                                   than a “touristic experience”.
                                                                                   The Mexican version of the
                                                                                                                                         Fort Collins, Estes
                                                                                   renowned US magazine,
                       National                                                                                                          Park, RMNP, Vail,
                                          Andrea Arzaba                            targets educated and                                                                              $32,000 usd per
June 8 – 14 2011      Geographic                                35,000 monthly                                                                Boulder,             TBD
                                        Díaz (photographer)                        sophisticated travelers in                                                                        page
                       Traveler                                                                                                           Breckenridge &
                                                                                   search of something more
                                                                                                                                              Denver.
                                                                                   than a “touristic experience”.
                                                                                   Mexico’s most prestigious
                                                                                                                                         Fort Collins, Estes
                                                                                   newspaper. It also publishes
                                                                                                                                         Park, RMNP, Vail,
                                         Analine Cedillo            145,963        “Mural” in Guadalajara and “El                                                          th        123,917.6 USD per
June 8 – 14 2011   Reforma, De viaje!                                                                                                         Boulder,           June 26
                                         Coss (journalist)           weekly        Norte” in Monterrey. Contents                                                                     page
                                                                                                                                          Breckenridge &
                                                                                   are shared in these three
                                                                                                                                              Denver.
                                                                                   editions.
                                                                                   Mexico’s most prestigious
                                                                                                                                         Fort Collins, Estes
                                                                                   newspaper. It also publishes
                                          Carlos Figueroa                                                                                Park, RMNP, Vail,
                                                                    145,963        “Mural” in Guadalajara and “El                                                          th        123,917.6 USD per
June 8 – 14 2011   Reforma, De viaje!        Ramirez                                                                                          Boulder,           June 26
                                                                     weekly        Norte” in Monterrey. Contents                                                                     page
                                          (photographer)                                                                                  Breckenridge &
                                                                                   are shared in these three
                                                                                                                                              Denver.
                                                                                   editions.



         Friday, July 22, 2011                                                                                                                                                            5
                                                                            Radio magazine that features
                                                                            a travel section (international
                                                                                                                                       Fort Collins, Estes
                                                                            and national destinations) that
                                                                                                                                       Park, RMNP, Vail,               th
                        Perspectiva,                                        discusses the following topics:                                                     June 10 &     $1,077 usd for a 20
June 8 – 14 2011                       Lorena Bracho   200,000 listeners                                                                    Boulder,                     th
                        ABC Radio                                           Urban vacation, ecotourism,                                                          June 26      second spot
                                                                                                                                        Breckenridge &
                                                                            shopping, dining, upscale
                                                                                                                                            Denver.
                                                                            hotels, summer & family
                                                                            activities, arts & culture, sports



         Media Events:


         Travel Trade Promotions

         Current Co-ops:
         Company            Details                                    Dates                      Partners       On-Line OR Off-Line                  Results


         Tac Tours          OFFLINE CAMPAIGN – CONSUMER                Ski season 2010 –                                    Off line
                                                                              2011

         Servicios de       OFFLINE CAMPAIGN – CONSUMER                    Summer 2011                                      Off line
         viaje 365

         Iconn Travel       ON & OFFLINE CAMPAIGN – CONSUMER               Summer 2011                                    On / offline


         Holam              OFFLINE CAMPAIGN – CONSUMER                    Summer 2011                                      Off line




         Trade Contacts/Sales Calls/Sales Leads:

         Iconn Travel – Met with Claudia Lopez and Guillermo Viquez to go through the final details of the summer packages that will be promoted in
         Bancomer’s websit as well as to go through the material the new T.O.s (contacted at Pow Wow) offered Mr. Viquez.

         Holam – Met with Miriam Braverman to go through the Colorado summer product available to build packages for the current season.

         Servicios de viajes 365 (Guadalajara city) – Met with Ivonn Rodriguez to discuss the details of the printed campaign (direct-to-consumer). High
         resolution images and press releases were delivered to Ms. Rodriguez


         Travel Trade Events, Trainings, Seminars, Workshops:

         •
                                                    th                                                           rd
              CONFETUR association celebrated its 34 anniversary with a trade luncheon that took place on June 23 . Lilliana Maya attended the event.



         Friday, July 22, 2011
         Trade FAMS (Group or Individual):
                                                                                                                                                                                    6
    Date of FAM                                                                                                    Participating
                      Company             Attending personnel       Title              Profile / Current product                           Results
        Trip                                                                                                       Destinations




Travel Tradeshows:

•     ARLAG trade show took place on June 3rd at Guadalajara’s Convention Center. Over 500 travel agents attended the event, all of them
      received a Colorado State guide in Spanish as well as a brief seminar on the state’s proposal as a year round destination.


Consumer Promotions

Consumer-Related Programs (Consumer shows/Consumer leads): 1

Consumer Inquires without brochure fulfilment:

Distribution of Materials for corresponding Month and Cumulative Amount to date:

Month                                           www.colorado.com                Other – telephone/ email request                   Total
July 2010                             0                                     2                                         2
August 2010
September 2010
October 2010
November 2010
December 2010
January 2011                          1                                     -                                         1
February 2011
March 2011                            0                                     1000                                      1000
April 2011                            0                                     4                                         4
May 2011                              0                                     0                                         0
June 2011                             0                                     400                                       400
Total




Friday, July 22, 2011                                                                                                                                7
                                                  Colorado Fulfilment Stats 2009
Total fulfilment graph
                                                    200




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Friday, July 22, 2011                                                                                 8
                                        MARKET INTELLIGENCE

                                                     Economy


                              July 10     August      Sept 10   October   Nov 10   Dec 10

Exchange Rate (U.S)            13.35       13.26       12.82     12.43    12.33    12.41

Consumer Confidence
                               87.4         88.7       91.6      92.05     88.5     91.2
Index


                              Jan 11      Feb 11      Mar 11    Apr 11    May 11   Jun 11

Exchange Rate (U.S)            12.22       12.14       11.99     11.70    11.59

Consumer Confidence
                               92.3         92.3       91.7      89.7     89.30
Index


MEXICAN IMF CANDIDATE CALLS FOR BAILOUT FLEXIBILITY
Published in The Wall Street Journal. June 1, 2011
LISBON—Mexico's Agustín Carstens, so far the lone challenger to Europe's renewed claim to head the
International Monetary Fund, suggests more flexibility for countries on IMF support programs as he
seeks backing in Europe.

The Bank of Mexico governor, the chief rival to France's Christine Lagarde, said the IMF needs
someone from an emerging market with experience in handling financial crises.

MEXICO CITY RETAILERS PAUSE
Published in The Wall Street Journal. June 1, 2011
Retailers have put expansion plans on hold in the Mexican capital after the megacity's government
enacted a virtual three-year moratorium on openings of grocers, convenience stores and hypermarkets
in an effort to shield traditional markets and small family-run bodegas from corporate competition.
Mexico City Mayor Marcelo Ebrard, a presidential hopeful, proposed the measure. "We want the
markets to survive, to continue to be the neighborhood centers," Mr. Ebrard said recently, describing
current competition as "asymmetric."

Chain stores typically offer lower prices thanks to bulk purchasing power, capital markets financing and,
in some cases, international stakeholders.

Retail association Antad, which represents brick-and-mortar retailers, views the regulation, called
Norma 29, as a ploy for votes from the estimated 70,000 people who work in Mexico City's more than
300 conventional marketplaces. Some of the markets are housed in fixed buildings, while others sprout
under tents on city sidewalks, parks and streets. Antad members had 27,313 stores and restaurants
nationwide as of the end of April.



Friday, July 22, 2011                                                                                  9
"This isn't going to drive customers to the marketplaces," said Antad President Vicente Yanez. "Some
of these markets don't need protection—they compete very well based on variety and freshness.
Others are just public eateries that sell some produce and lack hygiene, security and modern payment
methods. At the end of the day, clients vote with their purchases."

Mr. Yanez said that Antad's fight to overturn the regulation in Mexican courts could take months. In the
meantime, retailers are likely to redirect their investments to other parts of the country, according to
Antad. The association estimates, conservatively, that its members will invest $3.5 billion in store
expansions this year, generating 50,000 jobs at the national level. Typically about 20% of that
investment would be put to use in the Federal District, the country's economic heart and home to
around nine million people.

Antad members include the country's largest retailer, Wal-Mart de Mexico SAB, or Walmex, a unit of
Arkansas-based Wal-Mart Stores Inc. Walmex plans to invest close to $1.21 billion nationwide this year
as it opens 365 stores. Walmex has 345 retail units in the capital, and 1,772 nationwide. Walmex
spokesman Antonio Ocaranza said the company is analyzing how the new regulation will affect plans
for the capital, where space is limited and permits for renovations or expansions are difficult to obtain.
"Stores with permits and construction under way are unlikely to be affected," Mr. Ocaranza said.
Walmex expects to pump $180 million this year into the State of Mexico, which borders the Mexican
capital and has roughly 14 million inhabitants, or around 13% of the nation's population. That
investment will finance 50 store openings and the modernization of its logistics network.

Executives at Comercial Mexicana, which operates the country's third-largest supermarket chain, said
recently they plan to spend about $290 million this year and next to open 22 stores, many of which will
be in central Mexico.

Beverage and retail group Fomento Economico Mexicano, or Femsa, which operates the country's
largest convenience store chain, Oxxo, said that its nationwide expansion plans remain on track, but
that for competitive reasons it won't disclose its ambitions in the capital. Femsa opens a new Oxxo
store, on average, every eight hours. The company is aiming for 12,000 stores in 2014; as of March it
had 8,621 in operation, of which 1,125 were in and around Mexico City.


MEXICO TOURISM FEELS CHILL OF ONGOING DRUG VIOLENCE
Pulished in The Wall Street Journal. June 8, 2011
MEXICO CITY—For several years, Mexico's tourism industry has weathered the storm of violence in
the country, persuading vacationers to visit its beaches and ancient ruins on promises that drug-related
crime wouldn't affect their travels.

This year, those assurances might not be enough. Many American travelers are turning their backs on
Mexico, put off by some gruesome headlines.

Owners of leading tour operators, including American Express Co., have seen sharp declines in
American visitors since the first of the year. Starwood Hotels & Resorts Worldwide Inc. recently told
analysts the drug wars had "decimated leisure travel" at its Mexican resorts. Three top cruise lines say
they've canceled service to Mazatlán, a resort hub that's also become the site of a drug cartel turf war.
"It's very hard for me to think that I'm going to convince someone who lives in Des Moines to take their
first international trip to Mexico now," says Trip Barrett, Starwood's vice president of brand
management in Latin America. He says violence in Mexico and better deals elsewhere are driving down
visitors this year.




Friday, July 22, 2011                                                                                  10
American Express's tour operator Travel Impressions says it sent 100,000 passengers to Mexico last
year but has seen about a 15% decline in bookings this year for independent travelers, meaning those
who aren't part of a group.

Musicians stroll along a deserted beach in Acapulco, Mexico, looking for clients willing to pay for a
song."Literally, it's just been a continual barrage of stories of finding beheaded bodies and unearthed
graves," said John Hanratty, the company's chief marketing officer.

Tourism is a $12 billion-a-year industry for Mexico. Some 22.4 million tourists visited in 2010, up about
4.4% from the year before. But 2009 was affected more by the economic crisis and the "swine flu"
outbreak than the drug violence, even though the violence has claimed nearly 40,000 lives since 2006.
Data compiled by Smith Travel Research, a firm that monitors hotel occupancies among large chains,
show occupancy in Mexico so far this year either flat or declining across many mid-range hotel chains,
though there were some modest gains on the higher end.

A spokesman from Internet booking company Orbitz Worldwide Inc.wouldn't provide specific figures,
but said travel to Mexico is lagging significantly behind previous years. Orbitz cites safety fears and last
year's bankruptcy of Mexican airline Cia. Mexicana de Aviación, which led to higher airfares among
remaining players.

Mexico's tourism officials acknowledge the challenge but say business remains vibrant and most of the
violence is not in tourist districts. "There are still travelers coming to Mexico," says Mexico's Tourism
Secretary Gloria Guevara.

Mexican President Felipe Calderón recently met with 22 tourist-industry CEOs during a Las Vegas
convention to calm jitters. "I saw thousands of spring breakers in Mexico having fun. My understanding
is the only shots they received were tequila shots," he quipped before an audience during the visit.
The majority of violence is between drug cartels and isn't directed at foreigners, says Alfonso Sumano
of the Mexico Tourism Board, the ministry's arm that works with the private sector. "They are not going
after tourists," he says.

Still, last October, a Canadian visiting Acapulco on business was found dead in his charred rental car
after disappearing in the beach town. In January, another Canadian was shot in the leg during a
firefight that erupted in Mazatlán. He survived but shortly afterward three luxury cruise lines— Walt
Disney Co.'s Disney Cruises, Royal Caribbean Cruises Ltd. and Star Cruise Ltd's Norwegian Cruise
Line—canceled service to the port.

According to the U.S. State Department, 107 Americans were killed in homicides in Mexico last year,
up from 77 the year before and twice the figure before the drug wars began. The agency doesn't break
out tourists from the figures.

Rodolfo López-Negrete, chief operating officer of the tourism board, said he hoped visitors would
realize the majority of violence takes place near the border, not in tourist districts.
Acapulco, however, presents a troubling case, tourism companies say. The resort town has also
become a major theater of the drug war: On a single weekend this year, more than 30 bodies were
found, including night-club workers abducted after hours and later found hanging from a bridge.
Acapulco's violence is affecting resorts that are hundreds of miles away, according to Starwood's Mr.
Barrett."When the Joneses hear 'Acapulco,' they know it's a resort," and then other resorts suffer by
association, he says. He pointed to recent declines over the usually booked Easter holiday in Puerto
Vallarta and Los Cabos, where Starwood operates more than 1,200 rooms under its Westin and
Sheraton brands. Puerto Vallarta is about 450 miles from Acapulco and Los Cabos, at the southern end
of the Baja peninsula, is even further. But vacancies were high enough that Starwood began offering
all-inclusive meal packages and fourth-night-free discounts.

Friday, July 22, 2011                                                                                     11
Many foreign hotel companies are banking on security improvement in the long-term and are continuing
with development projects in Mexico, according to the Mexican government.

Starwood, which says Mexico remains its sixth-largest country, recently opened a St. Regis in Mexico
City and will open a Westin in Guadalajara in August. Hilton Worldwide, the closely held chain that
owns brands including Hampton Inns, has plans for 12 new hotels, five of them to open this year,
although none is along the border or in Acapulco.

"The perceived situation has been challenging at best to manage," says Terry Dale, president of the
U.S. Tour Operators Association, a trade group. "But Mexico is part of the business. It's not going
anywhere."

NATION RANKS LOW IN UNEMPLOYMENT
Published in The News. Thursday, 16 June 2011
MEXICO CITY – Although Mexico’s unemployment climbed to 5.2 percent in April, the country still
ranks among the seven Organization for Economic Co-operation and Development (OECD) member
countries with the lowest unemployment rates.

The average unemployment rate for OECD member countries fell to 8.1, a 0.1 percentage point drop
from March, after stabilizing at 8.2 for two months.
The figures are consistent with the decline in unemployment rates since October 2010, the OECD
reported.

“For the first time since the beginning of the financial crisis in 2007, unemployment rates are showing a
mainly falling pattern in most OECD countries,” the OECD stated.
Unemployed individuals in OECD countries numbered 44.1 million in April 2011, down 3.1 million from
April 2010, but still 13.2 million higher than in April 2008.

The United States, Japan, Luxembourg, Mexico, and Slovenia were the only countries which had an
increase in unemployment rates in April. Other OECD figures showed a further increase of 0.1
percentage point in the United States in May, raising its employment rate to 9.1 percent.
Spain registered the highest unemployment rate with 20.7 percent. “Since May 2010, more than one in
five people in the Spanish labor force has been unemployed and is seeking work,” the OECD stated.
Following Spain were Ireland with 14.7 percent, Slovakia Republic with 13.9 percent, Portugal with12.6
percent, Hungary with 11.6 percent, and France with 9.4 percent.
In April, South Korea had the lowest unemployment rate with 3.6 percent.


DROUGHT THREATENS FOOD SUPPLIES
Published in The News. June 20, 2011
On Sunday, Institutional Revolutionary Party (PRI) deputies said that the country’s food supplies may
be at risk. Nearly 500,000 hectares of crops of basic grains may fail due to droughts.
In view of this situation, Manuel Humberto Cota Jiménez, the Secretary of the Agriculture and Livestock
Committee, asked President Felipe Calderón to declare as disaster areas the states that have been
affected by lack of rain. He added that the federal government must also send resources immediately to
respond to the emergency.

According to Cota, the federal government’s attitude regarding this situation is regrettable.
“The federal government is not offering the necessary resources to assist the rural zones that have
been damaged by this situation. The government must destine resources to the affected states, not
only to the states that are holding elections,” Cota said.




Friday, July 22, 2011                                                                                  12
The National Meteorological Service (SMN) said that the states that have been most severely affected
are: Baja California, Baja California Sur, Sonora, Sinaloa, Chihuahua, Durango, Coahuila, Nuevo León,
Tamaulipas, Jalisco and Guanajuato.

The cold temperatures in northern Mexico earlier this year and the recent drought have devastated this
region. If actions are not taken soon, Mexico’s food supplies may be endangered.
Cota said that the drought will have a higher impact than this year’s freezing temperatures. Droughts
are more serious because they can cause wildfires and death of livestock, which would cause a food
crisis in Mexico.

PRIATE SPENDING EXPANDS 0.88 PERCENT IN 1ST QUARTER
Published in The News. Tuesday, 21 June 2011
MEXICO CITY – Mexican private spending expanded by the slowest pace in a year in the first three
months of 2011 as reluctant consumers refrained from big spending in Latin America’s second-largest
economy.

Private spending rose 0.88 percent during the first quarter compared to the previous three-month
period, the national statistics agency said on Tuesday. That was the smallest uptick since a 0.38
percent rise in private spending recorded in the first three months of last year.
Analysts agree that Mexico must stoke domestic demand in order to fortify its overall economy, which
relies on the United States to absorb about 80 percent of its exports.

“The economy continues to expand but the pace of the domestic demand recovery decelerated during
(the first quarter) from the solid rates seen during (the second half of 2010),” Goldman Sachs
economist Alberto Ramos wrote in a research note.

A strengthening labor market, higher oil prices and strong external demand should keep Mexico
economic growth on track to finish the year with a 4.5 percent expansion, Ramos wrote.
Private spending was 4.9 percent higher in the first three months of this year compared to the same
period a year earlier.

Aggregate demand increased 0.72 percent from the previous quarter, and was up 6.2 percent from the
same quarter in the previous year.

U.S. RATINGS A POSSIBLE RISK
Published in The News. June 23, 2011
MEXICO CITY – A possible downgrade of the United States’ credit rating would affect Mexico’s growth,
Monex Casa de Bolsa, a brokerage firm, stated on Tuesday.
Earlier this month, Moody’s Investors Service, a credit rating agency, warned that it could downgrade
the U.S. government’s AAA credit rating if there is no progress by August on a deal to raise the nation’s
$US 14.29-trillion debt ceiling.

Also this month, The International Monetary Fund (IMF) warned the United States to raise its debt
ceiling. “For the United States, it is critical to immediately address the debt ceiling and launch a deficit
reduction plan that includes revenue-raising tax reform,” the IMF stated.

Eduardo Ávila, the Deputy Director of Monex Casa de Bolsa, said if a U.S.-credit downgrade happened,
long-term Mexican finance portfolios would be affected first. The portfolios would have to be changed
which would affect local debt, and speculation would have a negative impact on the Mexican Stock
Market (BMV), he said.

Economic growth would be affected next because Mexican governments, both state and federal, would
have to apply fiscal plans dictated to them by brokerage firms, he said.


Friday, July 22, 2011                                                                                      13
The United States would have to raise taxes and cut spending to improve public financing and to be
able to cope with its deficit, but this would also result in slower growth, he said. If this happens, Mexico
will experience a blow to its export and manufacturing sectors, and consumption.

The possibility of a U.S.-credit downgrade is real because an immediate recovery of jobs and income in
the United States does not seem likely, Avila said.

Due to the slow recovery of the United States and the catastrophe in Japan, the world economy has
grown more slowly than expected. With France, Italy, and Korea all expected to grow by 2 percent this
year in terms of Gross Domestic Product (GDP), Mexico’s GPD could grow by 4 percent, he said.
Carlos González Tabares, the head of the Financial Strategy and Analysis department of Monex Casa
de Bolsa, said he expects the world economy to grow by 5.5 percent this year with the United States in
the lead followed by China.

                                            Travel Trade Trends
Travel Agents


Tour Operators


Airlines

AEROMEXICO TO LAUNCH CHICAGO-LEON ROUTE
Published in Travel Weekly. June 7, 2011
Aeromexico will launch a new route July 5 from Chicago to Leon/Guanajuato, Mexico, with a stopover
in Monterrey.
The flight will operate daily.

AMERICAN EAGLE ADDS TWO MEXICO DESTINATION
Published in Travel Weekly. June 15, 2011
Two destinations in Mexico welcomed new American Eagle flights from Dallas June 9.
Mazatlan, on Mexico’s Pacific coast, and Morelia, in central Mexico west of Mexico City, now are each
served by a daily nonstop flight from the Texas gateway. Mexican dancers, music and cake-cutting
ceremonies celebrated the launch of the new flights from Dallas/Fort Worth Airport.

American Airlines and regional partner American Eagle have been adding more routes to Mexico since
Mexicana Airlines halted operations when it filed for bankruptcy last August.

American Eagle now serves 18 cities in Mexico with 300 daily flights. In addition to Mazatlan and
Morelia, other cities include Acapulco, Aguascalientes, Cancun, Chihuahua, Cozumel, Guadalajara,
Leon (Guanajuato), Mexico City, Monterrey, Puerto Vallarta, San Luis Potosi, Queretaro, Torreon,
Veracruz and Ixtapa/Zihuatanejo.

“DFW is pleased to add American Eagle’s new services to Mazatlan and Morelia to our airport’s
growing international network,” said Jeff Fegan, DFW’s CEO. “The payoff for our citizens is
tremendous, not only in terms of business opportunities but also with new connections that allow
passengers easy access from many markets.”

American Eagle serves Mazatlan with 50-seat Embraer ERJ-145 jets; the Morelia route uses 44-seat
Embraer aircraft.




Friday, July 22, 2011                                                                                     14
General

FEDS CONTEST COURT TIANGUIS RULING
Administration Seeking to Overturn Judge’s Decisions
Published in The News. June 13, 2011
On Tuesday, the federal government submitted to the Supreme Court of the Nation (SCJN) two formal
complaints to contest the decisions of Justice Olga Sánchez Cordero regarding the constitutional
challenge presented by the municipality of Acapulco, Guerrero. The municipality is seeking to remain
the host city for the next Tourist Tianguis (Marketplace) and to prevent the event from being hosted in
different cities starting 2012.

The first complaint by the administration of President Felipe Calderón contests the claim presented by
the municipality of Acapulco and the second complaint opposes the suspension approved by Justice
Sánchez, who ordered the Tourism Secretariat (Sectur) to halt the selection process of the new host
city for the Tianguis and the formalization of the event’s rotation among different cities in Mexico.
It is possible that the federal government’s complaints will be channeled to another justice within the
next couple of weeks. The new justice who takes on the matter will have to make an official decision
and submit it to the court before July 15 because on that date the SCJN goes into summer recess.

On Monday, Gloria Guevara Manzo, the Tourism Secretary, said that the Sectur would suggest
alternative cities to host the Tianguis with the purpose of encouraging the SCJN to make a decision of
the event’s possible rotation.

“This is not about pleasing third parties, it is about being more competitive. Our work as Sectur is to
ensure that the country’s tourism sector prevails and that Mexico uses the best option to sell its
products and services,” she said.

                                            Media Trends
Print – newspapers
On the last week of June, Reforma newspaper launched its Beta version for iPad users and plans to
continue its efforts to gain more on-line presence.

Print – magazines
Mr. Jaime Reyes, former editor of the culture section from Reforma newspaper, took over the position
of Editor at Bleu&Blanc magazine. So far, the current editorial team continues struggling to achieve a
steady point from which to work.

Enrique Escalona, editor at LaGiraffe.com and freelance writer, has recently joined the freelance
journalists’ team that National Geographic Traveler magazine works with year-round.

Online

Broadcast
Radio Formula launched a new daily travel radio show in June. The show’s host is Mr. Jose Antonio
Lopez Sosa, and every Saturday features a 30 minute travel section that, among other things,
interviews wholesalers able to sell packages related to the destinations they feature.

General




Friday, July 22, 2011                                                                                     15
                                           General News


PEMEX: OIL THEFT ESCALATES IN 2011
State Company Reports Losses of Over 3 Billion Pesos
Published in The News. June 17, 2011
MEXICO CITY – On Thursday, Pemex stated that nearly 300,000 barrels of crude oil have been lost or
stolen between January and April of this year, a number that compares unfavorably with figures
registered in 2010. This represents a loss of over three billion pesos.

The General Director of the state-owned corporation, Juan José Suárez Coppel, said that it is important
that Congress passes reforms to the Penal Code and the Federal Organized Crime Act. He noted that
the reforms must include making the theft of crude and oil byproducts as a federal offense.
During a press conference, accompanied by the Secretary of Energy, José Antonio Meade, the General
Director said that at least 20 Pemex employees have been found guilty of crimes against the public-
sector company. He also said that the notion that oil rigs and general facilities of Pemex have been
“hijacked” by organized crime is ridiculous.

He pointed out that Pemex has discovered 556 illegal gas extraction points throughout the country and
noted that in 2010, 710 of these points were discovered in the entire year. “We’re worried because in
2010 we found 710 illegal hook-ups. However, that figure was for the entire year, but in 2011, we’ve
already found 556. We are indeed worried,” he said.

Meade said that the state must encourage the creation of robust legislation in terms of sanctioning, not
only the people who steal oil, but also those who sell it illegally. He also said that the federal
government must impose harsher sanctions to Pemex officials and employees who directly participate
in illegal activities of this nature or are in collusion with organized crime or felons. He concluded by
saying that so far in 2011, four criminal groups that engaged in oil-theft activities have been disbanded
and the members properly prosecuted.

U.S., MEXICO REINFORCE TIES
Publised in The News. June 20, 2011
On Sunday, Manlio Fabio Beltrones, the President of the Senate, said that the parliamentary ties
between the Mexican Congress and the U.S. Congress have become stronger. He said both parties
understand the mutual challenges and are fully committed to working together to increase security on
the border and to finding a solution to migration.

During the evaluation of the 50th U.S.-Mexico Inter-Parliamentary Meeting, Beltrones said that U.S
officials were committed to working for the prosperity, competitiveness and security of North America.
According to Beltrones, Mexico and the United States, “must advance simultaneously in the matter of
border security and migration, without neglecting either of them. We must also focus on human rights
enforcement that allows us to take concrete and progressive steps, as is the case with the Dream Act
that the U.S. Senate is promoting and the recent Mexican migration law.”
It is equally important to inspect the current customs systems to ensure that they help control the flow
of weapons and human and drug trafficking. If both nations work together on this matter, Beltrones
continued, it would be possible to prevent events that may cause confusion and affect the bilateral
relationship.

“Not only did we agree to continue with our bilateral collaboration in the fight against transnational
organized crime, but we also agreed to intensify the cooperation in technology and training,” he said.




Friday, July 22, 2011                                                                                      16

				
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