3 June 2008 336 views No Comment

Loreto, Mexico is projected to have its population boom to 120,000 by 2025 according to a study in 2005 by Harvard University. This is a 700% increase from the 2005 population of 15,000. The study titled Alternative Futures for the Region of Loreto, discusses the potential social, environmental, and economic impact of a population boom. In 1960 Loreto was selected by FONATUR, the Mexican agency in charge of tourism development, as one of the next major destination for tourists. While Cabo grew at over 9% in the 1990’s, Loreto grew at 3.9%, despite millions of investment by FONATUR into infrastructure improvements.

Today, Loreto is poised to see tremendous growth in the coming years. Loreto Bay is one of the major developments that are underway with plans of 6,000 new homes to be constructed over ten years. The Cabo market is peaked out, according to Alan Axelrod, an investor in Loreto Bay. “Many people are quite dissatisfied with how Cabo San Lucas turned out….It’s very Americanesque” he says. According to the Harvard Study, many Loreto residents are happy with their way of life, despite a lower income, lower life-expectancy, and less education than the average for Baja California Sur. Many current residents explicitly stated that they do not want to become like Cabos. There is also a concern about the ability of the region’s water supply to handle many more people.

Influentials in Loreto seem to have learned from the outcome in Cabo and have taken a more steady and controlled approach to growth. For instance, the development of Loreto Bay is focused on sustainable development and aim to minimize their environmental impact by building low rise buildings, encouraging electric transport throughout the development, and working with locals to protect the wildlife. Loreto Bay is setting a precedent that many current residents hope will lead to growth that doesn’t kill the quiet small town feel that is the strength of Loreto. Whether the sustainability movement can repress the likely demand for a very attractive market will make Loreto, Mexico one place you should definitely keep your eye on.

Image Courtesy of Loreto Bay