He also revealed to the newspaper short-term stratagems that he said the CFZ would have to undertake if business were to revert from a contracting state to an expanding one; those being the development of the CFZ? infrastructure, improved marketing of the CFZ, and refining Belize?s relationship with Mexico.

In the matter of the CFZ? infrastructure, Espat pointed out that the CFZ could stand to improve its streets, drainage system and garbage collection.

Where the streets are concerned in the CFZ, the newspaper noticed during its visit to the CFZ on December 10 and 11 that some sections of the CFZ are unpaved, and in fact, are dusty motorways, which easily become muddy after light rainfall.

The newspaper also noticed that after the rain, water settled in the streets, suggesting that the CFZ lacks an adequate drainage system.

Some of the investors with whom the newspaper spoke during our investigation complained of the poor infrastructure of the CFZ; incidentally, they also complained about the streets, drainage, and garbage collection.

Hon. Espat then said that the CFZ needs to be better marketed as a shopping destination. He said that there is the need for a more concerted effort in promoting the zone abroad, particularly in Mexico.

The newspaper noticed that while retail business was on a decline, tourism-based commerce seemed to be growing. Hon. Espat agreed that the face of business in the CFZ is changing, especially with the two new casinos that are being built in the CFZ – Monte Carlo and Las Vegas.

Of interest, the Monte Carlo Hotel and Casino is scheduled to open in February, 2005.

These two new casinos, which will be joining the competitive ranks of the Princess Casino, would be an added attraction for the CFZ, said Hon. Espat.

It is important to note that in November of this year the Mexican Congress again rejected a Bill that would have legalized gambling in that country. Since gambling is illegal in Mexico, most of the patrons of the Princess Casino are Mexicans from Quintana Roo.

When Amandala spoke to Omar Ayuso, Promotions and Marketing Officer in the CFZMA, on Friday, December 10, he told us that the agency was working with Hon. Espat, who is the Minister of Tourism and Culture, to establish a relationship with Mexican hotels to integrate the CFZ as a part of their tour package, accenting the CFZ casino(s) as the main attraction.

Ayuso pointed out that the Princess Casino employs a generous number of Belizeans, and with two more casinos scheduled to open in the CFZ, it would mean more employment opportunities for Belizeans.

Hon. Espat said that the third stratagem that the CFZ would have to adopt would be to build on its relationship with Mexico. He referred to Belizean and Mexican delegations meeting to design a way in which the two countries could strengthen their trade and investment relationship.

The first Bilateral Roundtable meeting between Belize and the Mexican State of Quintana Roo was in May, 2003, where delegations from Quintana Roo and Belize met in San Pedro to discuss ?investment and trade on both sides of the border and creating a regional tourism zone under the Mundo Maya umbrella.?

While the face of the CFZ is transforming from retail-based investment to tourism/services-based investment, the question becomes ?what happened to the original goal of the CFZ, to nurture a light manufacturing hub??

Ayuso said that during the ?boom? (in 2002), droves of retail companies rushed to be a part of the CFZ, and the idea of attracting light manufacturing in the zone was temporarily overlooked. Ayuso also cited the ?boom? as a possible reason why the infrastructure in the zone is not up to mark. He confirmed that the CFZMA is charged with the responsibility of making sure that any development in the CFZ is sustainable, which should take into account the development of infrastructure to match the growth of the CFZ. He said that the CFZMA tried to correct their blunder by having its Board of Directors institute a moratorium on applications to trade in general merchandise, or any related transactions that would further develop the general merchandising business.

The moratorium was instituted in an effort to diversify business in the CFZ, said Ayuso. He pointed out that a company that manufactures condoms would be operating in the CFZ in the near future.

The newspaper asked Espat if it would be wise to transform the face of the CFZ from general merchandise to tourism, and seemingly bypass light manufacturing. Espat replied that both light manufacturing and tourism need to be promoted in the CFZ.

Of interest, considering that the Quintana Roo government officials have worked unceasingly to discourage its consumers from rushing across the border to shop in the CFZ (evidenced in Part One of this investigative report), it is worth noting that the Mexican government has already announced plans to establish an Export Processing Zone (EPZ) at the foot of a new bridge to be constructed, the Belize-Mexico Friendship Bridge.

The new Belize-Mexico Friendship Bridge will be built upriver from the current bridge; construction is scheduled to begin in early 2005. The bridge that is currently in use will only facilitate traffic coming into Belize from Mexico after the completion of the new bridge.

The Mexicans have also invited Belizean manufacturers, of wood products especially, to operate in the Mexican EPZ, which would give the Belizean manufacturers direct access to the Mexican market.

Another interesting point to note is that Wal-Mart, a large retail chain in the U.S., has announced that it would be opening an outlet in Quintana Roo soon. Wal-Mart is known globally for its affordable apparel, and the low-priced general merchandise it sells.

The most outstanding solution that investors offered to curb the decline in retail business was for the government to allow Belizeans to shop in the CFZ. One investor suggested that Belizeans should be allowed to enter the CFZ to shop maybe twice a month.

So while retail business in the CFZ is declining by a disturbing rate, as the figures suggest, there are indications that with more of a tourism emphasis being placed on business in the zone, the CFZ could possibly experience another ?boom.?

The newspaper tried many times to contact the chairman of the CFZMA, Hon. Florencio Marin, Sr., but was unsuccessful.

It would have been interesting to note what interest the Chinese have in the CFZ (if any), as Marin was recently a part of a Latin American Free Zone delegation to China.