In terms of convenience, some significant improvements have been made since Mexico’s banking industry was nationalized in 1982. In 1991 the government began privatizing the industry. Fourteen of Mexico’s 18 banks were auctioned to the private sector by the end of 1992. The industry is rebounding and modernizing to accommodate increased international trade and the significant restructuring of the Mexican domestic economy.

Its two largest banks are Banamex and Bancomer. Nationwide there are over 6,300 branches. Many branches have spruced up their public areas, and the number of teller machines in Mexico has quadrupled since 1991.

In fact, it is now possible for visitors to access ATMs. Bancomer ATMs are now in the Cirrus and PLUS systems, and even offer Spanish/English Language menus. Machines will dispense pesos.

Money is often exchanged at casa de cambio (exchange houses) that are open longer hours and offer quicker service. Although dollars are widely accepted and often preferred), we recommend using pesos during your stay. Note that the worst exchange rates are often at hotels, the best at exchange houses. Expect a slightly lower rate for travelers checks. Exchange fees are not changed.

We recommended exchanging $20-30 into pesos before leaving the U.S./Canada. This way you’ll arrive in Mexico with pesos for cab fare to your hotel. Also, carry $20-30 in one-dollar bills-they’re great for tipping.

Credit cards are widely accepted, with Visa and Mastercard being the cards of choice. American Express is also widely accepted. When checking into hotels, clients are often asked to sign a blank charge slip. This is a common practice and should not be viewed with suspicion. There was a well publicized devaluation of the peso against the U.S. dollar in early 1995. By August, 1999 the peso traded at approximately 9.4 pesos per U.S.dollar and 6.2 pesos per Canadian dollar. Th is devaluation means a significant windfall to foreign travelers to Mexico, since a U.S. dollar now buys more than twice as many pesos than it did in early 1995.

Capitalizing on the Dollar’s Increased Value

• Whenever possible, eat, sleep, dine, and shop where the Mexican nationals do. Peso rates at establishments more attuned to a local versus an international market have remained more stable. The greatestbargains are at indian cities, and beach destinations that cater to Mexican travelers more than foreign visitors.
• Exchange your dollars for pesos in Mexico, rather than through a US/Canadian currency exchange Company. Rates can be significantly higher in Mexico than abroad.
• Use pesos rather than dollars for transactions in Mexico. In general, restaurants, shops and taxis will exchange your dollars at a rate lower than what is paid by local casa de cambio. By exchanging dollars for pesos, and then shopping with pesos, you will maximize your savings.
• Use credit cards whenever possible. There are two reasons for this. First, you purchase will be converted into dollars at an exchange rate more favorable than what you will likely earn by changing dollars into pesos at, say, your hotel. Second, credit card charges are often converted into dollars several days after the purchase is made. Assuming the peso continues to "slide" against the dollar, your credit card purchase may be converted to dollars at a rate higher than what you would have paid the day the tranction was made.

There are basically two types of taxes you’ll need tpo know about:

• Transportation/Departure Taxes
• Sales Tax

Transportation/Departure Taxes

Domestic air travel within Mexico has a departure tax of approximately $11.65 US/person. The peso equivalent changes periodically. This tax is now included on tickets issued in US. And Canada.

International air travel from Mexico carries a departure tax of approximately $17.50 US/$23.00 Can. This tax is sometimes paid in Mexico, but in most circunstances is inclued on tickets issued outside Mexico (ask your airline for details). This tax is not paid by infants, but children over the age of two pay the full amount.

Mexico to Reinstate Visitor Entry Fee

• Mexico Visitor Entry Fee ("Derecho para la Internación de los No Inmigrantes" or DNI in Spanish) of 150 Mexican pesos; current conversion rates would make this approx. $15 US and $20 Can.
• The fee is collected of person visiting Mexico on business or as tourists, with certain exceptions. These exception include:
• Those crossing Mexico’s border by land, but not proceeding beyond the country’s existing 26-30 Km (16+ mi.) interior checkpoints;
• Those arriving by water at Mexican ports, but styaying less than 72 hours.
• Similar fees are charged by virtually every country, wheter called entry fees or tourist visa fees. In fact, Mexico had previously charged the equivalent of an entry fee in the 1960’swith its Forma Migratoria, subsequently repealed. The U.S. currently imposes an Immigration User Fee" of $6 US, in addition to the $45 US visa fee.
• Unlike many other countries, Mexico does not require U.S. or Canadian visitors to purchase a visa for entry.
• U.S. and Canadian visitors should not be impacted economically due to their currencie’s strengh vs. the peso and Mexico’s moderate prices. Mexico remains one of the world’s great travel values.
• The rainstatement of Mexico’s Visitor Entry Fee is not expected to adversely affect its competitive position in international tourism, currently ranked as the 7^th most visited destination in the world. Mexico tourism sector recently surpassed petroleum exports in its contribution to the Mexican economy, second only to manufactured goods.
• The new fee is expected to generate approximately $120 US million in revenue per year.
• The Mexican Congress also recommended that the revenues generated by the fee be earmarked for these purposes:
• To allow then National Inmigration Institute to install and maintain a computerized registry of visitors similar to that in the U.S., Canada and other industrialized countries.
• To allow the Secretariat of Tourism to triple Mexico’s tourism promotion efforts worldwide and develop visitor enhancing programs with Mexico.

The fees will be collected by the followuing mechanisms:

• Air - By airlines upon purchase of tickets, as is customarily done in other countries.
• Sea- By inclusion in the cruise package, or by the National Immigration Institute upon disembarking, but only if stay is longer than 72 hours, maximun once per cruise.
• Land – By the national Immigration offices at 26-30 Km. (16+mi.) check points, or at branches of any bank operating in Mexico. Visitors will be required to produce verification of payment of the Fee when leaving Mexico.

Sales Tax

In 1995 Mexico raised its Value Added Sales Tax from 10% to 15% (This tax had been at 15% prior to 1991) However the States of Quintana Roo (including Cancún, Cozumel, and Riviera Maya), Baja California and Baja California Sur (including La Paz, Loreto, and Los Cabos) remain at the 10% rate. The tax applies to the purchase of most items and is paid by everyone, residents and visitors alike. Often this tax is "buried " in the total cost restaurant bills, store purchases, and excursions.

The "VAT" also applies to the purchase of airline tickets within Mexico (15% for domestic travel and 2.5% for international travel). Prepaid tickets often need to include these taxes. Consult the airlines for details. NOTE: Some states have recently passed statewide lodgin taxes.

LODGING TAXES

2%

Aguascalientes, Baja California, Baja California Sur, Colima, Chiapas, Chihuhua, Distrito Federal, Guanajuato, Guerrero, Jalisco, Nayarit, Nuevo León, Oaxaca, Puebla, Quintana Roo, Sinaloa, Tabasco, Yucatan, Zacatecas (1.5%).

3%

Coahuila, Durango.