Presentation is loading. Please wait.

Presentation is loading. Please wait.

© SIFIDEY, 2011 All rights reserved. R EPORT OF THE SURVEY OF US T RAVELER H OUSEHOLDS Estudio de Mercado 1.

Similar presentations


Presentation on theme: "© SIFIDEY, 2011 All rights reserved. R EPORT OF THE SURVEY OF US T RAVELER H OUSEHOLDS Estudio de Mercado 1."— Presentation transcript:

1 © SIFIDEY, 2011 All rights reserved. R EPORT OF THE SURVEY OF US T RAVELER H OUSEHOLDS Estudio de Mercado 1

2 © SIFIDEY, 2011 All rights reserved. T ABLE OF C ONTENTS ContentsPage Executive Summary 3 Travel to México 7 Current Residence in U.S. 24 Buying or Renting a Home in México 29 Discovery Tour 53 Buying or Renting a Home in Mérida or the State of Yucatán 57 Characteristics of Survey Participants 60 Preferences of U.S. Consumers for Location, Type, Quality and Price of Home 69 Estimates of Demand from Among U.S. Travelers to México 85 2

3 © SIFIDEY, 2011 All rights reserved. E XECUTIVE SUMMARY 3

4 © SIFIDEY, 2011 All rights reserved. E XECUTIVE SUMMARY SURVEY OF US HOUSEHOLDS 537 US households 55 to 74 years of age who have annual household incomes of $50,000 or more and who are frequent travelers and who have traveled to México completed a survey and conjoint analysis study via the Internet in February and March The primary purpose was to learn what proportion of the households who have traveled to México, would consider moving to Mérida or elsewhere in the State of Yucatán. The survey included factual background information about the culture, amenities, activities, services, housing, healthcare and safety and security of Mérida and the State of Yucatán and dozens of photographs that highlighted attractions, neighborhoods and homes. These results highlight characteristics of these frequent travelers and their likelihood of purchasing a home in Mérida or the State of Yucatán. The final section of this report discusses the homes they would buy and develops an estimate of demand for housing in Mérida or the State of Yucatán from U.S. households who have traveled to México between the ages of 55 and 74 years of age. Results Survey Respondents Were Included if They Traveled to México  90% of the respondents have traveled outside of the US at least once and 52% have traveled abroad three or more times in the last five years  24 (34%) of the 71 destinations listed as places traveled to most frequently are in México  87% of the survey respondents have traveled in México  5% have family members living in México  79% of the US survey respondents who have been to México have never been to Mérida.  76% of those who visited Mérida visited for leisure or vacation, 21% visited for business and leisure and 3% visited for business  58% of the respondents who have visited Mérida think it is an appealing place to live 4 Source: SIFIDEY Survey of US Households 2011

5 © SIFIDEY, 2011 All rights reserved. E XECUTIVE SUMMARY SURVEY OF US HOUSEHOLDS Likelihood of Buying or Renting a Home in Mérida or the State of Yucatán  Among this sample of households who have traveled to México, 7% are likely or very likely and 27% might purchase or rent a home in México.  Among those who would consider purchasing a home in México, 36% are likely or very likely and 51% might purchase or rent a home in Mérida or the State of Yucatán.  48% said their home would sell for between $100,000 and $299,999 and 42% said their home has a value of $300,000 or more.  36% prefer an all-age neighborhood, 24% preferred an age-qualified neighborhood. And 40% responded that the age of their neighbors does not matter.  Among those who said they are likely to purchase or rent a home somewhere in México, 13% said it is likely or very likely and an additional 68% said they might purchase or rent a home in the State of Yucatán.  62% said they would like to rent a home initially and eventually purchase a home, 16% will purchase a home from the outset and 22% prefer to rent a home in México.  61% said they would not have to sell their home in the U.S. to purchase a home in México. Characteristics of Survey Participants and Those Who Would Consider Buying in Mérida or the State of Yucatán  Frequent travelers who have traveled to México Age range between 55 and 74 years  81% do not speak any Spanish  70% who are likely to purchase or rent a home in Mérida or the Yucatán are married  57% have at least a four-year college degree and an additional 34% have had at least some college  57% have incomes in the range between $50,000 and $99,999 and 35% have incomes of $100,000 or more 5 Source: SIFIDEY Survey of US Households 2011

6 © SIFIDEY, 2011 All rights reserved. I NTRODUCTION ProMatura completed a survey and conjoint analysis study of US households 55 to 74 years of age who have annual household incomes of $50,000 or more and who are frequent travelers and have traveled to México in February and March A total of 537 households completed sections of the survey. Some sections in the survey were designed to be completed by sub-groups who met specific criteria. The purposes of the large-scale Internet survey were to obtain statistically valid data from a representative sample of prospective home buyers to define and delineate: 1. What consumers want in a primary or secondary home, 2. Who they are, 3. The amount they will pay, 4. When they are likely to purchase, and 5. The total estimated size of the market from among households who meet the characteristics described above. Specific Objectives 1. Complete a comprehensive survey with a conjoint analysis study hosted on the Internet. 2. Identify households in the U.S. who have traveled in México who would consider purchasing a home in Mérida, Progreso or other areas of the State of Yucatán. 3. Learn the type of home and community the prospective home buyers want and how much they will pay to get the community, home, services and amenities that they want. 4. Identify their knowledge and previous history with Mérida/Progreso/State of Yucatán. 5. Identify the attributes of the target market sectors who would consider purchasing a home in Mérida/Progreso/State of Yucatán; and 6. Define the key attributes that people want when moving to a new home, neighborhood, community, or area in Mérida/Progreso/State of Yucatán. 6 Source: SIFIDEY Survey of US Households 2011

7 © SIFIDEY, 2011 All rights reserved. T RAVEL TO M ÉXICO México Yucatán Peninsula Mérida and the State of Yucatán 7

8 © SIFIDEY, 2011 All rights reserved. E VER B EEN TO M ÉXICO Eighty-seven percent of the 537 survey respondents have visited México and 4% have lived in México, leaving only 9% of the respondents who have never been to México. The participants in this study were recruited because they had traveled to México. The small proportion who have not traveled to México, did not answer the screening question relative to prior travel to México. They have been included in the analyses because their results did not differ from those who have traveled to México. We studied a random sample of frequent travelers who have traveled to México as opposed to studying a random sample of all US households in the age and income-sectors, because we wanted to maximize the efficiency of finding households who may be interested in purchasing or renting a primary or secondary home in México. We studied the market who have the greatest probability of migrating to México. The results of this study should not be used to project demand for housing for the total US market sector. The user of these results must take care to limit projections to comparable households who are travelers to México. Source: SIFIDEY Survey of US Households 2011 In What Mexican City Have You Lived? N = 27 CityNumber México City5 Cozumel3 Puerto Vallarta3 Cabo San Lucas2 Monterrey2 Cancún2 Mérida, Veracruz, Puebla, Oaxaca, several2 Baja1 Valle Escondido1 Hermosillo1 Nuevo Vallarta1 Saltillo1 Rosarita1 San Carlos, Sonora1 San Luis Potosi1 8

9 © SIFIDEY, 2011 All rights reserved. F AMILY IN M ÉXICO Five percent of the US respondents have family who live in México. Among the 22 US households who listed where their family members live all listed a different location with the exception of two who have family in México City. Source: SIFIDEY Survey of US Households 2011 Mexican City Family Member Lives In N =22 CityNumber México City2 Chihuahua1 Ciudad Acuna, Coahuila1 Hualtuco, Oaxaca1 Irapuato, Guanajuato1 Jocotepec1 La Paz1 Loreto1 Mérida1 Morelia1 Puerto Penasco1 Queretaro1 Rosarito, BC1 San Carlos1 San Cristobal1 San Miguel, Allende1 Santa Catarina, Nuevo Leon1 Tepic, Guadalajara1 Tepoztlán, Morelos1 Veracruz1 Zihuatenejo1 9

10 © SIFIDEY, 2011 All rights reserved. T IMES V ISITED M ÉXICO Seventy-three percent of the 486 who have visited México have been in the country three or more times. Forty-one percent have been in México five or more times. Source: SIFIDEY Survey of US Households 2011 These results suggest that advertising and marketing should be tied to travel-related web-sites and other media. Marketing does not need to focus solely on sites related to México. Among the people who have traveled to México, 40% have been in México more than five times. These results suggest that advertising and marketing should be tied to travel-related web-sites and other media. Marketing does not need to focus solely on sites related to México. Among the people who have traveled to México, 40% have been in México more than five times. 10

11 © SIFIDEY, 2011 All rights reserved. P RIMARY R EASONS FOR V ISIT TO M ÉXICO The primary reasons the US travelers have been to México was for vacations (25%), cruises (14%) or other leisure-related activities. Three percent of the frequent travelers said they had visited México for business purposes. Other reasons small percentages of respondents visited México included visiting family, attending weddings, birthday parties or funerals, visiting friends, mission trips, and for medical or dental care. Reason for Visit to México N = 417 ReasonPercentReasonPercent Vacation25%People1% Cruise14%Visit friend1% Business3%Birthday<1% Climate3%Food<1% Timeshare3%Love México<1% Visit family3%Low cost<1% Shopping2%Own property<1% Attend wedding2%Attend funeral<1% Culture2%Camping<1% Beaches2%Dental work<1% History1%Golf<1% Sightseeing1%Lay-over<1% Scenery1%School<1% Fishing1%Sports<1% Medical reasons1%Arts<1% Mission Trip1% Source: SIFIDEY Survey of US Households

12 © SIFIDEY, 2011 All rights reserved. N UMBER OF TIMES VISITED ANYWHERE IN Y UCATÁN P ENINSULA More than half of the survey respondents (58%) have visited somewhere in the Yucatán Peninsula. Among those who have visited the Yucatán Peninsula, 39% have visited once, 21% have visited it twice, and 40% have visited three or more times. Source: SIFIDEY Survey of US Households 2011 Market in Cancún and the Riviera Maya The enormous numbers of US and Canadian households traveling to Cancún provides the most fertile grounds for finding prospective households for the State of Yucatán. Marketing in Cancún and other areas of the Riviera Maya will likely yield the highest return on investment. There is no marketing of Mérida or other significant attractions in the State of Yucatán in the airport. The majority of marketing found relates to Chichen Itza and Uxmal. Both of these archeological sites are significant attractions, but the area surrounding them are not conducive to enticing people for long term stays. There are not towns with sufficient appeal nearby, and the travel to these sites is typically by bus or rental car through an area that is relatively barren. Market in Cancún and the Riviera Maya The enormous numbers of US and Canadian households traveling to Cancún provides the most fertile grounds for finding prospective households for the State of Yucatán. Marketing in Cancún and other areas of the Riviera Maya will likely yield the highest return on investment. There is no marketing of Mérida or other significant attractions in the State of Yucatán in the airport. The majority of marketing found relates to Chichen Itza and Uxmal. Both of these archeological sites are significant attractions, but the area surrounding them are not conducive to enticing people for long term stays. There are not towns with sufficient appeal nearby, and the travel to these sites is typically by bus or rental car through an area that is relatively barren. 12

13 © SIFIDEY, 2011 All rights reserved. O PINION OF Y UCATÁN AS A P LACE TO M OVE Fifty-six percent rated the Yucatán peninsula as an appealing or very appealing place to move. Only 10% rated the peninsula as an unappealing place to move. These results support the need and potential to capture market share from Cancún and the Riviera Maya. Source: SIFIDEY Survey of US Households

14 © SIFIDEY, 2011 All rights reserved. R EASON FOR O PINION OF Y UCATÁN P ENINSULA Reason for Opinion of Yucatán Peninsula N = 366 PositivePercentNegativePercent Like the area17%Unsafe8% Climate14%Crime5% Beautiful11%Climate3% Nice people10%Garbage<1% Beaches6%No longer exciting or impressive<1% Cost of living5%Poverty level<1% History3%Not enough activities<1% Activities3%Don't want to live in México<1% Food2%Food is unsafe to eat<1% Lifestyle2%Infrastructure<1% Culture2%Real estate restrictions<1% Safe1%Too far to travel<1% Healthcare1%Lack of travel options<1% Atmosphere<1%Prefer the US<1% Clean<1% Wildlife<1% Architecture<1% Diverse terrain<1% Fun<1% Infrastructure<1% Past experiences<1% Resorts<1% Scenery<1% Shopping<1% Untouched by tourists<1% The vast majority of comments about the Yucatán Peninsula were positive. “Based on my exposure of the area it is very appealing and have always experienced good things.” 13% of the comments related to the feeling that the area is unsafe or that there is too much crime. “At this time I don't consider México safe.” “Beautiful area, good climate, somewhat dirty in areas, somewhat leery of crime.” “Beautiful. Questions about security, drug lords, English speaking population.” “Did not see much of the permanent infrastructure. I guess the image has been tainted by news from other parts of México.” Source: SIFIDEY Survey of US Households

15 © SIFIDEY, 2011 All rights reserved. N UMBER OF TIMES VISIT MÉRIDA Seventy-nine percent of the US survey respondents who have been to México have never been to Mérida. Twenty-one percent of the respondents have been to Mérida one or more times. Among those who have been to Mérida the majority (55%) have been there only one time. Source: SIFIDEY Survey of US Households 2011 People traveling to other locations in México will be excellent sources of visitors to Mérida and other areas in the State of Yucatán. You don’t have to convince them to visit México, you only need to convince them of the benefits and pleasures they will enjoy by adding a few days to travel to Mérida and the State of Yucatán. 15

16 © SIFIDEY, 2011 All rights reserved. R EASON FOR V ISITING M ÉRIDA Seventy-six percent of the US households who visited Mérida were in the city solely as a vacation or leisure trip. An additional 21% combined business with leisure. Three percent visited Mérida solely for business purposes. Source: SIFIDEY Survey of US Households

17 © SIFIDEY, 2011 All rights reserved. O PINION OF M ÉRIDA AS A P LACE TO M OVE The Internet survey began with several screens of information about Mérida and the State of Yucatán and statistics about the climate, population, medical services, safety and more. All survey respondents were asked to rate their opinion of Mérida as a place to live. The darker green bars show that 45% of all of the survey respondents rated Mérida as an appealing place to live. The lighter green bars represent the responses of those who have visited Mérida at least once. Fifty- eight percent of those who have visited Mérida state that it is an appealing place to move. Source: SIFIDEY Survey of US Households 2011 Getting people to visit Mérida will increase the probability of their moving to the area. 17

18 © SIFIDEY, 2011 All rights reserved. R EASON FOR Y OUR O PINION OF M ÉRIDA Reason for Your Opinion of Mérida N = 313 Positive CommentsPercentNegative CommentsPercent Climate10%Unsafe7% Beautiful8%Crime5% Cost of living7%Climate3% Safe7%Location2% Enjoyed visit6%Housing1% Housing5%Lack of green space1% Healthcare4%Dislike Architecture<1% Activities3%Cost of living<1% History3%Economy<1% People3%Modern<1% Culture3%Rights of ownership<1% Food3%Scenery<1% Beaches2%Too close to US border<1% Location2%Too far from family<1% Word of mouth2%Too quiet<1% Lifestyle2% Clean1% Good place to retire1% Like the area1% Clean infrastructure1% Amenities<1% Architecture<1% Big city<1% Inviting<1% Living conditions<1% Modern<1% Population size<1% Services<1% Close to US border<1% Three fourths of the comments made about “the appeal of Mérida as a place to live” were positive. “Based on the information in this survey, Mérida looks very appealing.” “Based on what I read in this survey Mérida appears to be definitely a place I would at least visit and look at possibly for a vacation home.” “Costs are lower. Weather is appealing. Medical care is available and reasonably priced.” Approximately 25% of the comments about the appeal of Mérida as a place to live among these US travelers were negative and were related to crime and safety, were not necessarily related to Mérida or the State of Yucatán. “All the conflict in México currently would not like to chance that remote of a travel destination in México.” “Amenities are satisfactory. Weather, maybe not. Ownership issues with the government have surfaced with many of my friends who live in México 6 months each year and own their place.” Source: SIFIDEY Survey of US Households 2011 Mérida’s safety and differences from other areas of México need to be publicized. 18

19 © SIFIDEY, 2011 All rights reserved. T IMES T RAVELED O UTSIDE H OME C OUNTRY This survey was completed among households headed by someone between the ages of 55 and 74 years of age who are considered travelers. 90% have traveled outside of the US at least once in the past five years. More than half (52%) have traveled outside of the US more than three times in the past five years. Source: SIFIDEY Survey of US Households 2011 People traveling to other locations in México will be excellent sources of visitors to Mérida and other areas in the State of Yucatán. You don’t have to convince them to visit México, you only need to convince them of the benefits and pleasures they will enjoy by adding a few days to travel to Mérida and the State of Yucatán. 19

20 © SIFIDEY, 2011 All rights reserved. L ENGTH OF T RIPS O UTSIDE H OME C OUNTRY The majority of the US respondents (52%) take trips of five to nine days when they travel out of the country. Twelve percent travel fewer than five days and 36% travel 10 or more days. Almost half have a favorite destination to which they travel. Of the 71 destinations listed (next page) as places traveled to most frequently, 24 (34%) are in México. Source: SIFIDEY Survey of US Households

21 © SIFIDEY, 2011 All rights reserved. L OCATION TRAVELED TO M OST F REQUENTLY Where Do You Travel the Most and Why? N = 213 WherePercentWherePercentWherePercent México15%Vancouver, B.C.1%Paris<1% Caribbean9%Acapulco<1%Puerto Nueva<1% Cancún7%Albondigaris<1%San Jose del Cabo<1% Canada7%Australia<1%San Pancho<1% Cabo San Lucas6%Barbados<1%Santiago, Chile<1% Italy4%Cayman Islands<1%Sayulita, México<1% Puerto Vallarta4%Chile<1%Spain<1% Europe3%Colombia<1%St. Lucia<1% Bahamas2%Dominican Republic<1%Switzerland<1% Costa Rica2%England<1%United Kingdom<1% Playa del Carmen2%Florida<1%Vienna<1% Asia1%France<1%Yucatán<1% Baja1%Germany<1%Sonora<1% British Columbia1%Greece<1% Riveria Maya1%Guantanamo Bay<1% San Carlos1%Guaymas<1% Alaska1%Ireland<1% Aruba1%Isla Mujeres<1% Bermuda1%Israel<1% Cozumel1%Jamaica<1% Hawaii1%London<1% Las Vegas1%Mazatlan<1% México City1%Montreal<1% Rosarito Beach1%Munich<1% San Felipe1%New Zealand<1% St. Maarten1%North Carolina<1% Thailand1%Nuevo Vallarta<1% Todos Santos1%Ontario<1% Toronto1%Osaka, Japan<1% Source: SIFIDEY Survey of US Households 2011 Approximately 12% of the travelers indicated somewhere in the Yucatán peninsula as a place they travel to most frequently. 21

22 © SIFIDEY, 2011 All rights reserved. W HY DO YOU TRAVEL THERE FREQUENTLY ? Reasons given for traveling to a destination more frequently include the same reasons why people choose to visit Mérida or the State of Yucatán. A few notable reasons listed include that they visit family and friends (9%). It is worth to note that fewer than 1% listed they travel to an area for healthcare. Medical tourism is a growing industry, but it has not yet become among the reasons why people travel to specific areas. Why do you travel there frequently? N=213 WhyPercentWhyPercent Love the area10%Resorts2% Visit family/friends9%Business2% Activities8%Vacation2% People7%Language1% Climate7%Close by1% Own timeshare6%Familiar with area1% Beaches5%Lifestyle1% Proximity to the US5%Ability to drive to many places<1% Beautiful4%Atmosphere<1% Culture4%Charter flights from US<1% Food4%Dollar value<1% Cruise4%Enjoy the drive<1% Own property, home, condo4%Feel comfortable<1% History3%Healthcare<1% Safe3%Most hospitable<1% Low cost2%Transportation<1% Source: SIFIDEY Survey of US Households

23 © SIFIDEY, 2011 All rights reserved. S PANISH S PEAKING A BILITIES 8% of the survey participants said they can speak enough Spanish to conduct a conversation. Most (81%) either don’t speak any Spanish or can utter a few phrases. Source: SIFIDEY Survey of US Households 2011 Personnel in Visitor Centers and public safety officers (police), must be capable of conversing in English. 23

24 © SIFIDEY, 2011 All rights reserved. C URRENT RESIDENCE 24

25 © SIFIDEY, 2011 All rights reserved. S IZE OF C URRENT H OME 25 The mean (average) size of the homes in which the US respondents lives is 2,312 square feet (215 m 2 ). Forty-three percent have homes between 1,500 and 2,499 SQ FT (139 to 232 m 2 ). There is not a statistically significant difference in the size of their homes between those who are likely to move to the area and those who are unlikely to move. Source: SIFIDEY Survey of US Households 2011

26 © SIFIDEY, 2011 All rights reserved. O PINION OF S IZE OF C URRENT H OME Ninety-one percent of the US survey respondents own their home and 7% rent. Three-fourths of the respondents rated the size of the home “as just about right.” The average size of those who said their home is “just about right” is 2,247 SQ FT (209 m 2 ). Those who say their home is too large have an average size of 2,938 SQ FT (273 m 2 ). And those who think their home is too small have an average size of 1,521 SQ FT (141 m 2 ). Source: SIFIDEY Survey of US Households 2011 Average Home Size by Opinion of Size Size Too large2,938 Just about right2,247 Too small1,521 Households who rate their homes as “too large” are significantly more likely to purchase a home in the next five years than households who rate their homes as just right or too small (p <.001). Households who rent their homes (30%) are significantly more likely to purchase a home in the next five years than those who own their homes (9%) (p <.001). 26

27 © SIFIDEY, 2011 All rights reserved. H OME V ALUE The US survey respondents estimated the value of their homes if they were to sell them today. Forty-eight percent said their home would sell for between $100,000 and $299,999 and 42% said their home has a value of $300,000 or more. There was not a statistically significant difference in the estimated value of their homes between the Prospects and the Non-Movers. Source: SIFIDEY Survey of US Households 2011 The median home price in the US in March 2011 was $160,000. The median home price, the point at which half of all homes are sold for more and half are sold for less, increased all around the US in March. In the Northeast, the median price rose to $232,900 from $230,200 in February, but it was down 3.0 percent over last year's price. The median price in the Midwest climbed to $126,100 in March from $122,000. The new price is down 7.1 percent from the year before. In the South, the price rose to $138,200 from $134,600 in February and fell 6.6 percent in a year-over-year comparison. The median price in the West increased to $192,100 from $190,000. It dropped 11.2 percent, however, from the previous year. Source: National Association of Realtors (May 2, 2011). m 27

28 © SIFIDEY, 2011 All rights reserved. N UMBER OF R ESIDENCES Twenty-five percent of the 464 survey respondents who said they own a home, own two or more homes. Prospects (14%) are significantly more likely (p <.02) to own three or more homes than non-movers (6%). Source: SIFIDEY Survey of US Households

29 © SIFIDEY, 2011 All rights reserved. B UYING OR RENTING A HOME IN M ÉXICO AND SPECIFICALLY M ÉRIDA OR THE STATE OF Y UCATÁN Asked relative to buying in México and in Mérida and the State of Yucatán 29

30 © SIFIDEY, 2011 All rights reserved. L IKELIHOOD OF P URCHASING /R ENTING A H OME Seventeen percent of the survey respondents said they are likely or very likely to purchase a home in the next five years. Among the total sample of survey participants, 7% said they are likely or very likely and 27% of the total sample of households they might purchase or rent a home in México. Source: SIFIDEY Survey of US Households

31 © SIFIDEY, 2011 All rights reserved. B UY OR R ENT IN M ÉXICO Among the households who might buy or rent a home in México, 62% said they would like to rent a home initially and eventually purchase a home, 16% will purchase a home from the outset and 22% prefer to rent a home in México. Source: SIFIDEY Survey of US Households 2011 When you see this box, it means the number of respondents who answered the question is small. These results are good for understanding potential trends. Do not use the results from this question to make important decisions. 31

32 © SIFIDEY, 2011 All rights reserved. T OWNS AND A REAS Y OU HAVE V ISITED IN M ÉXICO TO E VALUATE AS A P LACE Y OU M IGHT L IVE Forty-one respondents listed a location in México that they have visited to evaluate it as a place they might live and 12 respondents said they have visited residential communities to view homes. Fifteen of the 41 respondents listed areas in the Yucatán Peninsula. Towns and Areas You’ve Visited in México N =41 Number Puerto Vallarta6Hualtulco1 Cabo San Lucas3Isla Mujeres1 Mérida3Matamoras1 Cozumel2Monterrey1 Yucatán Peninsula2Hermosillo1 Cancún2Riviera Maya1 Playa del Carmen2San Felipe1 Guaymas2Tamaulipas1 Veracruz2Tlalnepantla1 Baja1Oaxaca1 Empalme1Progresso1 Guadalajara1Tulum1 San Carlos1Valle Escondido1 Location of Residential Areas You’ve Visited in México N = 12 Number Cabo San Lucas3 Ensenada1 Ajijic1 Tulum1 Cozumel1 Cancún1 El Dorado Ranch1 Mérida1 Playacar1 San Carlos1 Valladolid1 Yucatán1 Source: SIFIDEY Survey of US Households

33 © SIFIDEY, 2011 All rights reserved. S TEPS Y OU ’ VE T AKEN T OWARD P URCHASING /R ENTING A H OME IN M ÉXICO Fifty percent of those who would consider purchasing or renting a home in México said they have not yet done anything to begin the search for a place to live in México. Twenty-eight percent have searched the Internet, 18% have requested brochures and 6% have attended an Expo. One respondent said they had read a book about moving to México and one additional said had read articles in International Living. Source: SIFIDEY Survey of US Households

34 © SIFIDEY, 2011 All rights reserved. P URCHASING OR R ENTING A H OME IN Y UCATÁN Early in the survey, before all of the information had been presented about the homes, neighborhoods and opportunities of Mérida and the State of Yucatán, 13% of the survey respondents said they are likely to purchase or rent a home somewhere in México, said it is likely or very likely they will purchase or rent a home in Mérida or the State of Yucatán and an additional 68% said they might purchase or rent a home in the state. Only 19% said it was unlikely or very unlikely they would consider purchasing a home in the State of Yucatán. Sixty-two percent of the respondents said their time frame for purchasing or renting a home is within five years. Source: SIFIDEY Survey of US Households

35 © SIFIDEY, 2011 All rights reserved. D O Y OU INTEND TO LIVE P ERMANENTLY IN M ÉXICO Most (58%) of the prospective purchasers/renters don’t know what they will do long-term in México. Twenty-eight percent believe they will live in México temporarily but then return to their country of origin. And, 14% believe they will move permanently to México. These proportions are similar in nature to those of the Expats living in Mérida or the surrounding area who were asked their intentions relative to moving from their home: 29% said they were likely to move from their home, 24% were unsure and 56% were unsure (See SIFIDEY Expat survey report). Source: SIFIDEY Survey of US Households

36 © SIFIDEY, 2011 All rights reserved. W HICH T YPE OF N EIGHBORHOOD WOULD Y OU P REFER ? The respondents who would consider purchasing or renting a home in Mérida or the State of Yucatán were asked to identify the type of neighborhood they prefer. We supplied short definitions and pictures of each type of neighborhood. The definitions included a statement about the amount of vehicular traffic in each area. The largest proportion (31%) were unsure where they would prefer and the second largest proportion (28%) preferred a new planned community. These results should be taken as general indicators because the pictures represented only one or two images from each type of area and could not capture the beauty, amenities, types of neighbors, etc., in each area. Investors and developers should complete an objective study of prospective consumers for the concepts they have for a community, prior to spending significant funds on its development. Source: SIFIDEY Survey of US Households

37 © SIFIDEY, 2011 All rights reserved. A GES OF R ESIDENTS IN Y OUR N EIGHBORHOOD The respondents were asked, “What ages would you prefer the residents of your neighborhood to be?” An all-age neighborhood where anyone of any age can live, An age-qualified neighborhood or community where at least one resident must be 55 or better, and no one may be under the age of 20 years, or Either one, it doesn’t matter. The greatest proportion (40%) responded that the age of their neighbors does not matter. The proportion who prefer an all-age neighborhood (36%) was slightly higher than those who preferred an age-qualified neighborhood (24%). The active lifestyle industry in the US and other countries is changing constantly. Many are mixing intergenerational areas with other areas that are age-qualified. The most important element of a community is to ensure you are creating the lifestyle that your customers want. You need to learn from a representative sample of prospective customers, what it is that will make this community the one that they will choose. Source: SIFIDEY Survey of US Households

38 © SIFIDEY, 2011 All rights reserved. A WARENESS OF A CTIVE A DULT C OMMUNITIES Active Adult Communities You’re Familiar With CommunityPercent Del Webb, Sun City18 Leisure World4 Rossmore3 Buckingham's Choice1 Charbonue1 Erickson1 Estaba1 Rio Communities1 Robson Communities1 Senior Living Communities1 WCI Communities1 Community Location Location of Community Percent Florida10 Arizona7 US7 California5 Nevada2 New Jersey2 Texas2 Belize1 Canada1 Georgia1 Maryland1 Massachusetts1 México1 Missouri1 Nebraska1 New México1 Nicaragua1 Oregon1 Palm Desert1 Pennsylvania1 Utah1 Forty-seven percent of the entire sample of 527 respondents said they are familiar with active adult communities. When asked to name a community only 33 provided names, among which 54% (18 respondents) listed Del Webb, Sun City or a specific Sun City community by Del Webb. Among the 49 respondents who listed a location in which the community was located Florida (10 respondents) and Arizona (7 respondents) were the most frequently mentioned. One respondent was aware of a community for each of the countries of Belize, Canada and Nicaragua and the balance were all on the US. Source: SIFIDEY Survey of US Households

39 © SIFIDEY, 2011 All rights reserved. L IKELIHOOD OF M OVING TO AN A CTIVE A DULT C OMMUNITY IN M ÉRIDA OR S TATE OF Y UCATÁN Source: SIFIDEY Survey of US Households 2011 We asked the 164 respondents who would consider moving to Mérida or the State of Yucatán, “If it were available, how likely is it you would move to an active adult community in Mérida or the surrounding area?” Almost one-fourth (23%) said would be likely or very likely to move to an active adult community in this geographic area and another 56% were unsure. Among those who would consider moving to Mérida or the State of Yucatán, the proportion of households who would consider moving to an active adult community in Mérida or the surrounding area is as high or slightly higher than we have measured in the US This suggests the market for a well- designed active lifestyle community may increase the attraction of Mérida and the surrounding area. Among those who would consider moving to Mérida or the State of Yucatán, the proportion of households who would consider moving to an active adult community in Mérida or the surrounding area is as high or slightly higher than we have measured in the US This suggests the market for a well- designed active lifestyle community may increase the attraction of Mérida and the surrounding area. 39

40 © SIFIDEY, 2011 All rights reserved. C OMMUNITY P REFERENCE Source: SIFIDEY Survey of US Households 2011 Among the 37 respondents who said they were likely to move to an active adult community, a slightly greater proportion (43%) preferred a community that is only active adult housing, 27% preferred an active adult with a continuum of care (see definition in Text Box below), and 30% did not know which they would prefer. By a continuum of care community we mean a community that provides housing such as independent living with services including housekeeping, a dining program, transportation, and social and recreational opportunities; assisted living that includes all of the above plus assistance with daily activities; and nursing care services that provides all of the services listed above as well as nursing care provided by health care professionals. The preference for having a continuum of care on and active lifestyle campus will be influenced significantly by the design of the community and the positioning and marketing of the community. These results suggest that an active lifestyle community that incorporates a continuum of care adjacent to the active housing campus is likely to have significant draw among prospective consumers and will serve its customers for a longer period of time. Small Sample 40

41 © SIFIDEY, 2011 All rights reserved. W HEN D O Y OU A NTICIPATE Y OU M IGHT M OVE TO A N A CTIVE A DULT C OMMUNITY ? The results among this small sample of respondents suggest that half of those who would consider moving to an active adult community are planning to move within five years. Source: SIFIDEY Survey of US Households 2011 Small Sample 41

42 © SIFIDEY, 2011 All rights reserved. I NDEPENDENT L IVING C OMMUNITIES Source: SIFIDEY Expat Survey 2011 One-third of the survey respondents who would consider moving to Mérida or the State of Yucatán are aware of independent living communities. This small group was asked to name communities, and about one-fourth (12 respondents gave names of specific communities). The sample size of respondents who are aware of independent living is too small to draw conclusions about their propensity to move to a community, particularly if it was located in México. These results are typical. Fewer than 7% of the population 75+ years of age lives in independent living residences in the US The majority of the people are unaware of the terminology of this industry and often confuse one type of age-qualified housing with other types. Independent Living community (may be part of a community with a continuum of care, CCRC ): An Independent Living Community is usually a multifamily apartment complex that has a dining program on-site. The individual apartments usually have kitchens, but the community may have one or more dining rooms where typically most residents eat their “big meal” each day. Basic services such as housekeeping, transportation, and dining programs are typically included in the fee. Fees or rent are paid monthly. The community typically provides various educational, entertainment, cultural, fitness, and wellness opportunities. Source: SIFIDEY Survey of US Households

43 © SIFIDEY, 2011 All rights reserved. I MPORTANCE OF H AVING N EAR - BY C ARE S ERVICES The State of Yucatán should promote and support the development of quality care services for people who are unable to live independently. Among the households who would consider moving to Mérida or the State of Yucatán, 28% believe that it is important to have a residential community available that provides supportive, assisted living services for someone unable to live independently is important. For many people considering a move to the Mérida area, having access to supportive services that will help them should their health or self-care abilities fail is important. At present, Mérida does not have a contemporary model of independent living or assisted living services. A Word of Caution. The market sectors who are thinking of moving to the Mérida area for active lifestyle living are first looking for a top-quality lifestyle that matches their personality and perception of the way the way want to live their life. These customers are looking for lifestyle first. Do not lead the design and positioning of an active lifestyle community by focusing on healthcare and assistive living. If these resources are available it will help attract individuals for whom this is an important consideration. But the majority moving from another country will be interested in active lifestyle housing. Identify assisted living or other services are available in a tertiary level of marketing, not in your primary marketing message. Source: SIFIDEY Survey of US Households

44 © SIFIDEY, 2011 All rights reserved. A WARENESS OF T AX E XEMPTIONS Households who would consider moving to Mérida or other areas in the State of Yucatán are unaware of tax advantages from which they may benefit when moving to México. We asked the survey participants, “Before reading this statement, were you aware that if you spend more than 182 days per year in México you are eligible for a US tax exemption on your first $90,000 of US earned income, or $180,000 per couple?” Eighty-nine percent of the survey respondents contemplating moving to Mérida or the surrounding areas were unaware of the tax exemption. This, and other information will be important to help prospective residents learn and understand how they can obtain these benefits. State of Yucatán Support. The State of Yucatán needs to take the lead in developing reliable, correct, easy-to-access information that will help the 50+ market sector make their decision to purchase or rent a home in the state, and will assist them in completing the many business and legal transactions that must be accomplished. Source: SIFIDEY Survey of US Households

45 © SIFIDEY, 2011 All rights reserved. W HAT W OULD I NFLUENCE Y OUR D ECISION T O P URCHASE A H OME IN M ÉXICO ? Site-unseen, the US respondents were asked to rate the influence of five topics on their decision to purchase a home in México. In this question we did not include renting a home or just living in México, but rather we focused on purchasing a home. As you might expect immediate access to health care services and affordable health care services were listed as a “very positive influence” by 57% of the respondents, and following closely is being able to get “the most house for the least amount of money” (50%). Having activities coordinated by the community (36% very positive influence) and affordable domestic assistance (31%) will have a positive impact on the decision, but health care and obtaining a quality home for less will have greater impact on the purchase decision. What is the Level of Influence Your Decision to Purchase a Home in México? Very Positive Influence Positive Influence Neutral Negative Influence Very Negative Influence Immediate access to health care services57%35%7%1%0% Affordable health care services57%35%8%0% The most house for the least amount of money50%43%6%0%1% Variety of activities coordinated by the community36%45%17%1% Very affordable domestic assistance31%39%26%1%3% Source: SIFIDEY Survey of US Households

46 © SIFIDEY, 2011 All rights reserved. P REFERENCE OF L OCATION AS A P LACE TO L IVE Without really knowing anything specific about the locations, the respondents were asked to rate their preferences relative to a location. These results should be considered as general trends, but should not be used to plan a community. People love the ocean and small towns, so when you combine and ocean front residence in a small-town you have a winning combination. Fifty-seven percent of the respondents who would consider moving to Mérida of the state said that an ocean-front residence is a small town is very desirable. And, as you see in the table below having a home within walking distance of the ocean is more desirable than having a home in a central area of an inland city. Desirability of Various Locations as a Place to Live Very Desirable DesirableIndifferentUndesirable Very Undesirable An ocean-front residence in a small town (ocean view)57%26%14%3%0% An ocean-front residence in a small town (obstructed view)21%45%24%8%2% A residence within walking distance of the ocean (no view)15%52%26%6%1% A residence within the downtown or central area of an inland city (like Mérida)8%32%36%23%1% Caution. It is likely that many people are thinking about clean beaches and towns with good zoning laws that protect the quality and integrity of the neighborhoods when they answer this question. Progreso and miles of beach front homes are in poor condition and will not be acceptable to many prospective buyers. Some buyers, of course, will be willing to trade-off the quality of the surrounding areas and the environment for a lower price, but most have not seen the condition of the much of the coastal area near Mérida. Source: SIFIDEY Survey of US Households

47 © SIFIDEY, 2011 All rights reserved. D ESIRABILITY OF T YPES OF H OMES The respondents were asked to rate the desirability of four types of homes, irrespective of the location. Slightly more than one third (34%) said a new home is very desirable. In contrast half as many (16%) said a historical home that has been restored and modernized, 14% identified a resale modern home, and only 6% said that a historical home that needs to be fixed up were very desirable. Photographs and descriptions were provided of these four types of homes. These results are fairly consistent with trends observed in the US among 55+ households who are looking for a home. A greater proportion prefer a home that is new and move-in ready with only minor involvement with construction and decision-making once they have picked a floor plan they like. And, only a small proportion of adventurous people are interested in taking on a major renovation project. Desirability of Types of Homes Type of Home Very Desirable IndifferentUndesirable Very Undesirable New home34%36%27%2%1% Historical home that has been restored and modernized16%52%24%7%1% Resale modern home14%59%24%3%0% Historical home that needs restoration and modernization6%17%20%37%20% Source: SIFIDEY Survey of US Households

48 © SIFIDEY, 2011 All rights reserved. D ESIRABILITY OF S ERVICES The services that are desired by the largest proportion of respondents who are considering moving to the area are those that provide a sense of security and convenience. Services such as 24-hour security and a home monitoring device are desired by a significantly larger proportion of respondents than concierge, personal care services or the services received in a continuing care retirement community. Desirability of Services (n=157) Ranked in Order from Highest Proportion to Lowest Proportion Rating “Very Desirable” Services Very Desirable IndifferentUndesirable Very Undesirable 24-Hour Security 42%34%22%2%0% Home Monitoring Device 37%39%22%1% Community Coordinator 35%45%19%1%0% Interior and Exterior Maintenance 29%44%23%4%0% Spanish Interpreter Services 28%50%19%2%1% Domestic Services 23%49%26%2%0% Transportation Services 23%45%25%6%1% Transportation Services a la carte 15%48%31%5%1% Concierge Services 15%41%35%8%1% Community and Social Director 11%31%48%8%2% Full Personal Care Services 9%22%50%14%5% Continuing Care Service-Enriched Community 8%26%44%16%6% Source: SIFIDEY Survey of US Households

49 © SIFIDEY, 2011 All rights reserved. D ISTANCE TO M AJOR M EDICAL S ERVICE Source: SIFIDEY Survey of US Households 2011 The majority (52%) of respondents would like to be within a 10-minute drive of medical services, an additional 29% will accept a drive up to 30 minutes, and 12% do not care where medical services are located relative to where they live. A small proportion would like to be within walking distance. The locations of hospitals in Mérida will likely satisfy many prospective 50+ foreign households. 49

50 © SIFIDEY, 2011 All rights reserved. P REFERENCE OF T YPE OF R ESIDENCE We asked the respondents who would consider purchasing a home in Mérida or the nearby area the type of residence they would be likely to purchase. Fifty-six percent would be very likely and 37% would be likely to purchase a one-story single-family detached home. This preference is consistent with that measured in a national study of US households headed by someone 55 to 74 years of age completed by the ProMatura Group in In the 2006 study 57% said they would be very likely (57%) to purchase a one-story single- family detached home. The respondents were asked to rate each type of home by their likelihood of purchasing it. As a result we see that the proportions who are “very likely” to purchase any of the homes other than the one-story, single- family detached home are significantly smaller for each of the other types of homes. Preference of Type of Residence Very likely LikelyUnsureUnlikely Very Unlikely One-story single-family detached home 56%37%6%1%0% Two-story single-family detached home with main bedroom on ground floor 14%31%22%21%12% Attached single-family one-story home with a private entrance, no one above or below you 11%32% 22%3% Single level flat in a multi-family, multi-story building with an elevator, where you may have someone living above or below you 8%17%35%28%12% Attached single-family two-story home with private entrance, main bedroom on ground floor, no one above or below you 4%19%35%29%13% Source: SIFIDEY Survey of US Households

51 © SIFIDEY, 2011 All rights reserved. W OULD Y OUR H OME IN M ÉXICO BE A P RIMARY OR S ECONDARY R ESIDENCE OR AN I NVESTMENT ? The majority of survey respondents (51%) said they would use their home in Mérida or the State of Yucatán as a second home. There is not a statistically significant difference in household incomes or in home values of the households by their planned use of the home. Source: SIFIDEY Survey of US Households

52 © SIFIDEY, 2011 All rights reserved. W OULD THE P URCHASE OF A R ESIDENCE IN M ÉXICO D EPEND ON THE S ALE OF Y OUR P RIMARY H OME ? Sixty-one percent of the participants said they would not have to sell their home in the US to purchase a home in México. This suggests the economic downturn may not have had a negative impact on more than 60% of the prospective households who would consider purchasing a home in México. There are not statistically significant differences in the annual household incomes and estimated value of the homes between those who would have to sell their home and those who would not have to sell their home before purchasing a home in México. There is a statistically significant difference in the total net worth of the households who would have to sell their home and those who would not have to sell their home (p <.02). A higher proportion of households with a total net worth of $1,000,000 than those with a total net worth less than $1,000,000 said they would not have to sell their home in the US before purchasing in México. Source: SIFIDEY Survey of US Households

53 © SIFIDEY, 2011 All rights reserved. D ISCOVERY T OUR 53

54 © SIFIDEY, 2011 All rights reserved. W HAT W OULD Y OU D EFINITELY W ANT TO AND N OT W ANT TO D O ON A D ISCOVERY T OUR ? What They Want To Do We asked the respondents who would consider purchasing or renting a residence in Mérida or the surrounding area to list the things they would definitely want to do and definitely not want to do on a discovery tour to the area. An overwhelming majority (76%) want to tour the area, 35% want to see available real estate, 20% want to go shopping and visit shopping areas and 17% listed they want to obtain information about healthcare. What the Do Not Want to Do On the other hand 32% of the prospects do not want to meet with pushy sales people, see or experience crime (11%), be in a guided tour with a large group (9%) or be taken to see Time Shares (7%). Source: SIFIDEY Survey of US Households 2011 Things You Would Not Like to Do on a Discovery Tour N = 81 Percent Meet pushy sales presentation 32% Crime 11% Guided tour with large group 9% Timeshares 7% Night Life activities 6% Lack of freedom 4% Adventure sports 2% Bad weather 2% Lack of guided tour 2% See assisted living arrangements 2% Too many home tours 2% Too much walking 2% Beaches 1% Be in a group younger than us 1% High cost 1% Historical sites 1% Hotel less than 4 stars 1% See too much poverty 1% See densely populated area 1% Shopping 1% Stay indoors 1% Stay too long 1% Too many police 1% Tour of area 1% Touristy things 1% Things You Definitely Want to Experience on a Discovery Tour N = 134 Percent Tour the area 76 See available real estate 35 Shopping 20 Information about healthcare 17 Experience the culture 16 Meet locals 16 Food and restaurants 16 Beaches 9 Daily activities 7 Local entertainment 6 Tour non-touristy areas 5 See government facilities 4 Climate 3 Meet expats 3 Use facilities 3 Explanation of laws 3 See police force 3 Visit churches 3 Cost of living breakdown 2 Travel information 2 Explanation of costs 1 Explanation of amenities 1 Explanation of banking 1 Explanation of services 1 Free hotel and meals 1 Free time 1 Information about utilities 1 See safety reports 1 Small groups 1 54

55 © SIFIDEY, 2011 All rights reserved. W HAT W OULD Y OU W ANT TO D O ON A D ISCOVERY T OUR ? We asked the respondents who would consider purchasing or renting a residence in Mérida or the surrounding area to rate the experiences we thought they might enjoy on a discovery tour (FAM trip). More than 50% of the prospective buyers think it is important to participate in all of the experiences on the list in the table below, with the exception of visiting sports events or areas in the city or golf course. These results suggest they are fairly serious about getting to know the city and not just being entertained. Source: SIFIDEY Survey of US Households 2011 What Would You want to Experience on a Discovery Tour? Experiences on Tour Very important ImportantNeutralUnimportant Very unimportant See the shopping areas such as grocery stores and malls 48%37%12%3%0% Visit local open-air markets 47%42%10%2%0% Visit historical areas of the city 46%39%11%4%0% Met at airport, transportation provided to community 40%35%19%4%2% See the coastal area near Progreso 38%45%13%3%1% Meet with other expats who have moved to the area 35%48%12%5%0% Have transportation and a driver available for site seeing in area 33%41%17%7%2% See medical facilities 32%42%21%4%1% Spend at least one night in a residence within a residential community 31%42%23%2% Visit historical and educational museums in the city 29%38%24%8%1% Visit art museums in the city 22%39%28%11%1% Enjoy social times with current residents or other prospective residents 18%48%23%5% Visit sports events or areas in the city 8%25%45%15%7% Visit golf courses 8%12%29% 22% 55

56 © SIFIDEY, 2011 All rights reserved. W HICH O NLINE M AGAZINES AND N EWSPAPERS D O Y OU V IEW ? The most efficient and cost effective way to reach the largest number of prospective tourists and potential 50+ home buyers or renters via the Internet will be through Search Engine Optimization (SEO) and a Google advertising program. Seventy-seven percent of the respondents use Google as their search engine. The respondents likely to purchase or rent a home in Mérida or the State of Yucatán read more than 80 different on-line newspapers. The one read most frequently (by 6% or the respondents) is the New York Times on-line. Which online magazines and newspapers do you view? N = 232 Percent New York Times 6% USA Today 5% Wall Street Journal 5% Time 3% Local news 3% Huffington Post 3% Newsweek 3% Washington Post 3% Chicago Tribune 2% MSN 2% People 2% Boston Globe 1% International Living 1% Reader's Digest 1% Sacramento Bee 1% What Search Engines Do You Use N = 424 Search EnginePercent Google 77% Yahoo 23% Bing 16% MSN 5% AOL 4% Ask.com 3% Firefox 3% Internet Explorer 3% Publisher's Clearing House Search 1% Any 1% Source: SIFIDEY Survey of US Households

57 © SIFIDEY, 2011 All rights reserved. L IKELIHOOD OF B UYING /R ENTING H OME IN M ÉRIDA OR OTHER AREAS IN THE S TATE OF Y UCATÁN 57

58 © SIFIDEY, 2011 All rights reserved. L IKELIHOOD OF M OVING TO M ÉRIDA OR THE S TATE OF Y UCATÁN A FTER T AKING S URVEY The results of this survey confirm that providing the right information to a receptive target market sector (those who would consider purchasing a home somewhere in México will go a long way in improving the proportion who will consider moving to Mérida or somewhere else in the State of Yucatán. This chart shows the proportion of US Traveler households who would consider purchasing a home in México by their likelihood of purchasing or renting a home in Mérida/Yucatán at the “Beginning” of the survey before all of the information had been presented. The “Conclusion” data show the likelihood the respondents would consider purchasing or renting a home in Mérida/Yucatán after they had viewed all of the information about the area in the survey, that included pictures and descriptions of homes and their prices in the various areas of Mérida or the State of Yucatán. The proportion “very likely’’ to buy doubled and the proportion who are “likely” to buy tripled from the beginning of the survey to the end of the survey. Source: SIFIDEY Survey of US Households 2011 Targeting households who are frequent travelers, and who have some interest in México and providing them with factual information about Mérida should significantly increase the proportion of households visiting and considering a move to Mérida and the State of Yucatán. 58

59 © SIFIDEY, 2011 All rights reserved. T IME P ERIOD FOR M OVE TO M ÉRIDA Fifty-eight percent of the households who would consider moving to Mérida or the State of Yucatán said the were likely to move within five years. Source: SIFIDEY Survey of US Households

60 © SIFIDEY, 2011 All rights reserved. C HARACTERISTICS OF S URVEY P ARTICIPANTS 60

61 © SIFIDEY, 2011 All rights reserved. M ARITAL S TATUS Seventy-five percent of the US respondents participating in the survey are married compared to 57% of the same age group represented in the US Census. The difference in marital status is likely because the survey participants had minimum household incomes of $50,000 or more. Household incomes are higher in households with two incomes. Source: SIFIDEY Survey of US Households and US Census Table 56. Marital Status of the Population by Sex, Race, and Hispanic Origin 61

62 © SIFIDEY, 2011 All rights reserved. M ARITAL S TATUS AMONG PROSPECTIVE MOVERS TO MÉRIDA OR THE STATE OF YUCATÁN Individuals who would consider moving to Mérida or the State of Yucatán compared to those unlikely to move are significantly more likely not to be married (p <.007). They are more likely to live in a domestic partnership (9%) than those who do not plan to move to the area (3%). 62 Source: SIFIDEY Survey of US Households 2011

63 © SIFIDEY, 2011 All rights reserved. C OUNTRY OF C ITIZENSHIP The solicitation to participate in the survey was sent to households residing in the US Ninety- nine percent of the respondents have US citizenship. Fewer than 1% of the respondents had Canadian citizenship or dual citizenship. Source: SIFIDEY Survey of US Households

64 © SIFIDEY, 2011 All rights reserved. N UMBER OF P EOPLE IN H OUSEHOLD Sixty-three percent of the respondents live in a residence with one other person. The average number of people in the households of the survey respondents was Many of the households with more than two persons in the household may still have children living at home and may be planning a move when their children graduate from high school or college. There were not statistically significant differences in the number of people in the respondent’s household between the Prospects and the No-Move groups. Source: SIFIDEY Survey of US Households

65 © SIFIDEY, 2011 All rights reserved. H IGHEST L EVEL OF E DUCATION C OMPLETED Fifty-seven percent of the respondents have at least a four-year college degree and an additional 34% have had at least some college. Among the total US population, 32% between the ages of 55 and 64 years of age and 24% of those between 65 and 74 years of age have at least a four-year college degree. There were not statistically significant differences in the level of educational achievement between the Prospects and the No- Move groups. Source: SIFIDEY Survey of US Households

66 © SIFIDEY, 2011 All rights reserved. A NNUAL I NCOME The survey targeted households with a minimum of $50,000+ annual household income. The greatest proportion who participated in this survey (57%) have incomes in the range between $50,000 and $99,999 and 35% have incomes of $100,000 or more. Source: SIFIDEY Survey of US Households

67 © SIFIDEY, 2011 All rights reserved. A NNUAL I NCOME A higher proportion of households (47%) who would consider moving to Mérida or the State of Yucatán were significantly more likely to have an annual household income of $100,000 or more than households who were unlikely to move to the area (33%) (p <.002). Source: SIFIDEY Survey of US Households

68 © SIFIDEY, 2011 All rights reserved. T OTAL N ET W ORTH The estimated total net worth of the US Households that participated in this survey ranged from less than $100,000 to more than $4,000,000. Twenty percent reported their net worth was less than $200,000 and 17% reported a net worth of $1,000,000 or more. There were not statistically significant differences in net worth between the Prospects and the No-Move groups. Source: SIFIDEY Survey of US Households

69 © SIFIDEY, 2011 All rights reserved. P REFERENCES OF U.S. C ONSUMERS FOR L OCATION, T YPE, Q UALITY AND P RICE OF H OME Estimate of Potential Demand for Residential Purchase 69

70 © SIFIDEY, 2011 All rights reserved. I NTRODUCTION Introduction The survey respondents who indicated they were very likely, likely or unsure if they would move to Mérida or the State of Yucatán for either part-time or full-time residency were invited to complete a conjoint analysis study to identify their likelihood of purchasing a residence and to determine their preferences for the location; type of community; type, quality and size of residence; transportation services; and, price of the residence and monthly fee. Among the 461 respondents who participated in the survey, 151 (33%) completed the conjoint analysis study. Use of the Results of the Conjoint Analysis Study Conjoint analysis is the best method to learn what people want, how much they are willing to spend, and if they will purchase a product. We used this research tool to obtain a general idea of what the participants in this study would be willing to purchase. These results should be used carefully for the following reasons: 1. Although we provided comprehensive descriptions and photographs, the respondents have not been to the locations identified in the conjoint analysis study. We are confident that their preferences for one location versus another will change when they visit the area. 2. The photographs we included provided only a brief glimpse of the various qualities of homes at the price levels tested. There is significant variation across homes and price levels. Despite the cautions we express about interpreting the results for planning or developing specific communities, these results are suggest that Mérida and the State of Yucatán have significant opportunities to attract foreign households. Primary Benefit of Conjoint Analysis Results The primary benefits of the conjoint analysis results are that they give us an indication of the proportion of US households who would be likely to purchase a home in the Mérida/State of Yucatán area and the amount they would be willing to spend. Developers of communities that wish to target foreign and domestic markets should complete research with qualified households representative of their target market sectors to ensure the product, positioning and pricing of the residences and community meet the expectations of their consumers. When conjoint analysis research is applied to the planning of a specific residential community it provides a detailed summary of the type, size, level of finish and quality, and price of the homes; as well as definition of the lifestyle, amenities and services that will attract the largest market share. 70 Source: SIFIDEY Survey of US Households 2011

71 © SIFIDEY, 2011 All rights reserved. Overview Conjoint analysis is a research method that best simulates the purchase decisions (trade-offs) consumers make when purchasing a complex, high-priced product, such as a home. In real life, people don’t buy a home one item at a time, but rather they con sider several attributes joint ly (conjoint) when they make the purchase decision. Many attributes (variables) make up their purchase decision including: the community and its location, condition of the home, size of the residence, price, monthly fee, and other important specific features. Conjoint analysis surveys ask the consumer to consider a full complement of critical variables simultaneously (jointly) when determining which home they would be most likely to buy. Price is always a variable in conjoint analysis and the various features and attributes included in the instrument define the price of each home tested. Conjoint analysis allow us to determine which features in combination with all other features have the greatest impact on customers when making a decision. The Internet survey included descriptions of all of the attributes and pictures of neighborhoods and homes in each of the locations tested in the conjoint analysis study. The table below represents one of 15 questions (selections) completed by each survey respondent. In each selection, survey participants looked at three descriptions of homes (options) and selected the one that they would be most likely to buy, or if they would not buy any, to select the “None” option. Once respondents made their selection on the first set of three, they advanced to the next set. In all, they looked at 15 sets of three homes and determined 15 times which home they would purchase or if they would not buy any of the homes. 71 Selection 1 of 15I Which of these residences would you buy? [Please check Option 1, Option 2, Option 3 or None] Option 1 ⃝ Option 2 ⃝ Option 3 ⃝ None ⃝ Coastal, beach frontMérida CenterSmall nearby town I would not choose any of these. All Age community, gatedAll Age neighborhoodActive Adult community, gated Fixer UpperResale condominiumNew single-family detached home 3,600 sq. ft.800 sq. ft.2,400 sq. ft. Advanced transportation servicesBasic transportation servicesNo transportation services Price: $352,800Price: $74,000Price: $198,000 Monthly Fee: $165 ($170 for 2 people)Monthly Fee: $55Monthly Fee: $80 ($85 for 2 people) Source: SIFIDEY Survey of US Households 2011 C ONJOINT A NALYSIS – B RIEF E XPLANATION

72 © SIFIDEY, 2011 All rights reserved. C ONJOINT A NALYSIS V ARIABLES AND T ASK P RESENTATION FOR P ROSPECTIVE B UYERS 72 PRICE Monthly Fee Location Community type and if gated Transportation Elasticity of Price Condition of House Quality of House Size of house Each of the home descriptions (shown on the previous page) included information about all of these variables Each attribute or aspect of the variables included in the description was used to calculate the price of the home and the monthly fee shown in the selection table. Source: SIFIDEY Survey of US Households 2011

73 © SIFIDEY, 2011 All rights reserved. C ONJOINT A NALYSIS – F EATURES T ESTED The features tested in the conjoint analysis included the following nine variables and their attributes: 1.Condition of Home (fixer upper, resale, renovated, new) A “fixer upper” home is an existing home that will need work before it can inhabited, A “resale home” is one that has been lived in and is ready to be occupied, A “renovated home” is an existing home that has been re-finished, re-furbished and in new condition, A “new home” is one that has not been lived in. 2.Quality of Home (affordable, average, upscale) An affordable home is low-cost and is a very basic home, an average home is a middle-range price and has some better quality features, an upscale home is higher in price and has many extras and top quality features. 3.Home Type (single family detached, attached, condominium); 4.And 5. Size of Home in three categories of sizes Small – 800 ft 2 /74m 2, 1200ft 2 /112m 2, 1600ft 2 /149m 2 ; Medium – 2000ft 2 /186m 2, 2400ft 2 /223m 2, 2800 ft 2 /260m 2 ; Large – 3000 ft 2 /279m 2, 3300 ft 2 /307m 2, 3600 ft 2/ /334m 2 ); 6.Price (10% below base price, base price, 10% above base price, 20% above base price). Base price is the average price of the product in the market at the time of the survey. Base price was calculated from our analysis of 346 homes listed for sale in Mérida, Progreso and the surrounding areas. 7.Location (small nearby town such as Uman or Izamal, Mérida Historical Center, Mérida suburban, coastal not beachfront, beachfront); 8.Type of Community (all age, all age gated, active adult gated); 9.Transportation (none, basic, advanced). None = no transportation provided by the community Basic = the community provides scheduled transportation in a van to grocery stores, shopping centers, etc. Advanced = the community has scheduled transportation to grocery stores and shopping centers, and also has cars and drivers available for private travel to destinations selected by the traveler. 73 Conjoint Analysis Source: SIFIDEY Survey of US Households 2011

74 © SIFIDEY, 2011 All rights reserved. C ONJOINT A NALYSIS – F EATURES AND P RICES T ESTED 74 Conjoint Analysis VariablesBASE Price per SQ FT Variables 1 & 2 Price per ft 2 by condition and quality Condition of Home & QualityAffordable QualityAverage QualityUpscale Quality Level Fixer Upper$15$35$55 Resale$35$55$75 Renovated$55$75$95 New$55$75$115 Variable 3 Home Type Add Per SQ FTMonthly Level Single-family detached$20$0 Attached$0 Condominium$0$30 Variables 4 & 5 Size of Home Size of Home SQ FTLow SFAverage SFHigh SF Level Small Medium Large Variable 6 Pricing Elasticity Price of House (adjust base price) Monthly Level Low price0.9$20 Does not apply to an All-age Neighborhood Med price1$30 Med high price1.1$50 High price1.2$70 Variable 7 Location Add Per SQ FT Level Small nearby town-$20 Mérida Center$10 Mérida Suburban$0 Coastal, not beach front$20 Coastal, beach front$40 Variable 8 Type of Community Type CommunityAdd Per SQ FTMonthly L evel All Age neighborhood$0 Not in Mérida Center, Gated includes clubhouse, swimming pool All Age gated$20 Active Adult gated$20 Variable 9 Transportation Transportation ServicesMonthly Level No transportation$0 Basic services$25 Advanced services$50 This table shows pricing for each level of each of the nine variables included in the conjoint analysis study of home purchase preferences. The total price for the home and monthly fee shown in the conjoint analysis survey were calculated from these prices. Individuals familiar with real estate prices reviewed the prices and agreed they were representative of prices in the respective areas. The least expensive new home (Variable 1 & 2) would be an 800 ft 2 /74m 2 (Variable 4 & 5) attached (Variable 3) home at the lowest price (Variable 6) in a nearby small town (Variable 7) in a neighborhood that is not gated (Variable 8) and would have a price of $23,500. The most expensive new house would be the largest upscale single-family home of 3600 ft 2/ /334m 2 in a gated community on the beach front at the highest price level (20% above the typical price for this product). The total price of the most expensive home used in this study was $842,400. Source: SIFIDEY Survey of US Households 2011

75 © SIFIDEY, 2011 All rights reserved. I MPACT OF F EATURES ON P URCHASE D ECISION Who Completed the Conjoint Analysis Survey The survey participants who would consider purchasing a home in Mérida or the State of Yucatán were invited to complete the conjoint analysis study. We only asked those who would consider moving to the area to complete this survey instrument because we wanted to know what prospective home buyers want. A total 151 of the survey respondents completed the conjoint analysis study. The results shown in these analyses, however, are only for those respondents who would at least consider purchasing a home. We excluded the participants who were unlikely or very unlikely to purchase a home in Mérida or the State of Yucatán. Impact on Purchase Decision Assuming the nine variables tested make up 100 percent of the purchase decision, we learned that the location of the residence (20%), the size of the residence (14%), the type of community (13%), the type of home (11%) and availability of transportation services (11%) contributed most to the decision of the participants. Product Simulations The results of the product simulations are shown on the following pages. The margin of error for the results is +/- 5 percent. 75 Conjoint Analysis N = 131 Margin of error is +/- 3 percent for Main Effects Source: SIFIDEY Survey of US Households 2011

76 © SIFIDEY, 2011 All rights reserved. P RODUCT S IMULATIONS : I MPACT OF H OME T YPE 76 Variables Held Constant for All Simulations All homes are new; Affordable quality; Condos range from 800 to 1600 sq. ft.; Attached and detached homes range from 1600 to 2400 sq. ft.; Projected prices; Coastal, beachfront location; All age neighborhood; Basic transportation at $25. Market share is significantly higher when all products are available. Respondents are willing to trade-off the type of home, but are most likely to prefer detached homes or condominiums. Conjoint Analysis Product Simulation In a product simulation we explore the impact of each or level of a specific variable on the purchase decision as we hold all of the other variables constant. In the product simulation results shown on this page, we held the variables constant with the specific attributes selected that are shown in the box on the right side of the page. We then completed five simulations represented by each of the five columns in the table that explored the levels of Home Type. The percentages in the chart represent the proportion of the 131 participants who said they would buy at least one of the products represented in the conjoint analysis study. These results tell us that if the only product available is attached homes (with all other variables held constant), then 58% of the participants would buy (Column B) attached home, 61% would buy a condominium (Column A), and 65% would buy a single-family detached home (Column C). If all home types are available (Column E), 73% of the participants found a home they would purchase in Mérida or the surrounding area. Interpret Results Cautiously. The survey participants have based their decisions on descriptions, photographs and prices. They have not seen the residences nor visited the area. Source: SIFIDEY Survey of US Households 2011 Margin of error is +/- 5 percent For Interaction Effects ABEDC

77 © SIFIDEY, 2011 All rights reserved. P RODUCT S IMULATIONS : I MPACT OF C ONDITION OF H OME 77 Variables Held Constant: for All Simulations All home types are available; Affordable quality; Condos range from 800 to 1600 sq. ft.; Attached and detached homes range from 1600 to 2400 sq. ft.; Projected prices; Coastal, beachfront location; All age neighborhood; Basic transportation at $25. Market Share is Significantly Higher with Resale or New Homes Margin of error is +/- 5 percent For Interaction Effects Conjoint Analysis Product Simulation These simulations explored the condition of the home. Two-thirds (66%) of the survey participants found a fixer upper home or a renovated home at a price they would be willing to pay (Column A). The highest market acceptance is evident for resale homes (76%) (Column B) or new homes (73%) (Column C). These results suggest that two-thirds or more of the market would consider any of the four conditions of homes tested, but the highest market share would be attained with resale or new homes. Interpret Results Cautiously. The survey participants have based their decisions on descriptions, photographs and prices. They have not seen the residences nor visited the area. Source: SIFIDEY Survey of US Households 2011 ABCD

78 © SIFIDEY, 2011 All rights reserved. P RODUCT S IMULATIONS : I MPACT OF Q UALITY OF H OME 78 Variables Held Constant for All Simulations : All home types are available; New homes only; Condos range from 800 to 1600 sq. ft.; Attached and detached homes range from 1600 to 2400 sq. ft.; Projected prices; Coastal, beachfront location; All age neighborhood; Basic transportation at $25. Market Share is Significantly Higher with Affordable Quality Margin of error is +/- 5 percent For Interaction Effects Conjoint Analysis Product Simulation These simulations explored the quality of the home. The highest market acceptance is evident for the most affordable homes (73%). The least expensive home affordable would have been the smallest, “fixer upper” attached home at an affordable price of $15/ft. And, the most expensive home, (based on its condition), would be a new home of upscale quality at a base price of $115/ft 2. Condition of Home & Quality Affordable Quality Average Quality Upscale Quality Fixer Upper$15$35$55 Resale$35$55$75 Renovated$55$75$95 New$55$75$115 Interpret Results Cautiously. The survey participants have based their decisions on descriptions, photographs and prices. They have not seen the residences nor visited the area. Seventy-three percent (Column A) identified a home they would purchase at an “affordable” quality, 65% would purchase a home of average quality (Column B), and 57% would purchase a home of upscale quality (Column C). Source: SIFIDEY Survey of US Households 2011 ABC

79 © SIFIDEY, 2011 All rights reserved. P RODUCT S IMULATIONS : I MPACT OF S IZE OF H OME 79 Variables Held Constant: for All Simulations All home types are available; New homes only; Affordable quality; Projected prices; Coastal, beachfront location; All age neighborhood; Basic transportation at $25. Market Share is Significantly Lower When All Homes are Sq. Ft. Conjoint Analysis Product Simulation These simulations explored the impact of the size of the home on the propensity to purchase. Size of the home has a relatively minor impact on the purchase decision. In this simulation both the type of home and size of home were included. When just the smallest of all home types were included, 72% of the identified a home they would purchase (Column A). When all home types with sizes between 2000 and 2800 ft 2 were included 62% of the respondents identified a home they would buy (Column E). Interpret Results Cautiously. The survey participants have based their decisions on descriptions, photographs and prices. They have not seen the residences nor visited the area. Source: SIFIDEY Survey of US Households 2011 ABDEC

80 © SIFIDEY, 2011 All rights reserved. P RODUCT S IMULATIONS : I MPACT OF P RICE OF H OME AND M ONTHLY F EE 80 Variables Held Constant for All Simulations : All home types are available; New homes only; Affordable quality; Condos range from 800 to 1600 sq. ft.; Attached and detached homes range from 1600 to 2400 sq. ft.; Coastal, beachfront location; All age neighborhood; Basic transportation at $25. Conjoint Analysis Product Simulation These simulations explored the price elasticity of demand. Each column represents a simulation where the base price of the house was changed from 10% below the base price to 20% above the base price. Thus, four price levels were tested for a specific home: the base price (Column B), 10% below the base price (Column A) and 10 (Column C) and 20% (Column D) above the base price. These results reveal that raising the price of the homes by 20% had a relatively minor impact be decreasing demand by 6%. Interpret Results Cautiously. The survey participants have based their decisions on descriptions, photographs and prices. They have not seen the residences nor visited the area. Source: SIFIDEY Survey of US Households 2011

81 © SIFIDEY, 2011 All rights reserved. P RODUCT S IMULATIONS : I MPACT OF L OCATION 81 Variables Held Constant for All Simulations : All home types are available; New homes only; Affordable quality; Condos range from 800 to 1600 sq. ft.; Attached and detached homes range from 1600 to 2400 sq. ft.; Projected prices; All age neighborhood; Basic transportation at $25. Market Share is Significantly Higher with Coastal, Beachfront Conjoint Analysis Product Simulation These simulations explored location of the home. The five locations tested included a small town such as Uman or Izamal (Column A) the Mérida center area (Column B), Mérida suburban (Column C), the coastal area but not beach front (Column D) and beach from areas (Column E). Participants were shown attractive pictures of all of these areas, but the majority of the participants have never been to Mérida or the surrounding area. As would be expected, the largest proportion (73%) identified a home they would purchase on the beachfront (Column E). And, the smallest proportion identified a home in the central areas of Mérida (Column B). We know, however, that the majority of Expats who have migrated to Mérida, live in the central areas of the city (see the SIFIDEY Expat Report). These results suggest two things. First, that many people desire to live on or near the ocean. And, second, that when people visit Mérida and experience the quality of the city they decide to settle there. Interpret Results Cautiously. The survey participants have based their decisions on descriptions, photographs and prices. They have not seen the residences nor visited the area. ABC Source: SIFIDEY Survey of US Households 2011 DE

82 © SIFIDEY, 2011 All rights reserved. P RODUCT S IMULATIONS : I MPACT OF T YPE OF C OMMUNITY 82 Variables Held Constant for All Simulations : All home types are available; New homes only; Affordable quality; Condos range from 800 to 1600 sq. ft.; Attached and detached homes range from 1600 to 2400 sq. ft.; Projected prices; Coastal, beachfront location; Basic transportation at $25. Market Share is Essentially the Same Regardless of Community Type Conjoint Analysis Product Simulation The communities were defined as being design for people of all ages without being gated (Column A) or with a gate (Column B). Or, designed for people 50+ and having a gate (Column C). These simulations explored the impact of the type of community on demand and revealed that having a gate and/or being restricted to people 50+ years of age had no impact on the proportion who identified a home they would purchase. These results mean that given the other factors, such as community location and type of home, were more important than whether or not the community was designed for people of all ages or just for people 50+, gated or not gated. Interpret Results Cautiously. The survey participants have based their decisions on descriptions, photographs and prices. They have not seen the residences nor visited the area. ABC Source: SIFIDEY Survey of US Households 2011

83 © SIFIDEY, 2011 All rights reserved. P RODUCT S IMULATIONS : I MPACT OF T RANSPORTATION S ERVICES 83 Variables Held Constant for All Simulations All home types are available; New homes only; Affordable quality; Condos range from 800 to 1600 sq. ft.; Attached and detached homes range from 1600 to 2400 sq. ft.; Projected prices; Coastal, beachfront location; All age neighborhood. Market Share is Significantly Higher with Transportation Services Conjoint Analysis Product Simulation These simulations explored the impact on demand of a community having transportation available as one of their services. Transportation increased the percentage who would purchase at a community by 6%. Two types of transportation services were tested. The first was labeled “Basic Transportation” and meant that the community offered regularly scheduled “group” transportation to shopping centers and other areas of interest (Column B). Advanced transportation meant that the community offered basic transportation and offered the availability of a car and driver for a nominal fee to go to destinations preferred by individuals (Column C). An important take away from this simulation is that respondents were willing to pay $50 per month for the transportation program. Interpret Results Cautiously. The survey participants have based their decisions on descriptions, photographs and prices. They have not seen the residences nor visited the area. Source: SIFIDEY Survey of US Households 2011

84 © SIFIDEY, 2011 All rights reserved. S AMPLE S IMULATION OF O PTIMAL P RODUCT /U NIT M IX FOR A C OASTAL B EACHFRONT C OMMUNITY 84 Market Share by Home Type and Size Assumptions: Coastal Beachfront, All Age Neighborhood, New Homes, Projected Prices, Affordable Quality, Basic Transportation Home TypeSize in Sq. Ft.Price Monthly Fee (Transportation, Condo Fee for Condos) Market Share ActualNormalized Condo800$76,000$5520%27% Condo1200$114,000$5510%14% Condo1600$152,000$552%3% Attached1600$152,000$254%6% Attached2000$190,000$254%5% Attached2400$228,000$254%6% Detached1600$184,000$259%12% Detached2000$230,000$259%12% Detached2400$276,000$2511%15% Total73%100% This is one of dozens of community product simulations that can be completed. In this simulation we looked at the results for a community located on coastal beachfront that is for people of all ages, has new homes, and prices with in the affordable range. This would be a modestly priced community on the beachfront with multi-family, multi-story condominiums and attached and detached homes. The sizes of the condominiums would range from 800 to 1,600 ft 2, the attached and detached houses would range in size from 1,600 to 2,400 ft 2. These results show that 73% of the respondents identified a home they would purchase that meets the conditions listed above. The “Normalized” column on the right of the table, shows the proportion of the homes that would be purchased by the respondents. The largest proportion (44%) would purchase a condominium, 39% would purchase a single-family detached home, and 17% would purchased an attached home. Source: SIFIDEY Survey of US Households 2011

85 © SIFIDEY, 2011 All rights reserved. E STIMATES OF DEMAND FROM AMONG U.S. TRAVELERS TO M ÉXICO 85

86 © SIFIDEY, 2011 All rights reserved. E STIMATE OF D EMAND FROM S URVEY R ESULTS AMONG TRAVELERS TO MÉXICO Summary of Statistics Relative to Participation in the Survey and Likelihood of Purchase Survey Sample: Households in U.S. Who are Travelers, 55 to 74 Years of Age, with Incomes of $50,000+ ABC Survey StatisticsPercentages 1Age/Income Qualified Households Sent Invitation27,896 2Saw Prescreening Survey (to Screen for Travel to México)8, % 3Qualified for Survey (Travelers to México) % 4Started Survey % 5Completed Survey % 6Completed Conjoint Analysis % 7Very Likely to Purchase in Yucatán (after conjoint)91.952% 8Likely to Purchase % 9Unsure about Purchasing % 86 Introduction This section provides the logic used in estimating demand for US households headed by someone between the ages of 55 and 74 years of age with annual incomes of $50,000 or more. The survey was completed via the Internet. Solicitations to participate in the survey were sent by Survey Sampling Inc., to 27,896 households who are travelers. A pre-screening survey was viewed by 8,687 individuals (Row 2) that asked the initial respondents if they had traveled to México. If they had not, they were terminated from the remainder of the survey. Out of the 8,687 households who viewed the pre-screening survey, 622 (7.16%) had traveled to México (Row 3). Eighty-six percent of the travelers started the survey (Row 4) and 86% who started the survey completed it (Row 5). Among those who completed the survey, 33% completed the conjoint analysis study (Row 6). Out of the 461 respondents to the survey, 2% completed the conjoint analysis study and were very likely to purchase a home in Mérida or the State of Yucatán (Row 7), 10% were likely to purchase a home (Row 8), and 17% were unsure about purchasing (Row 9). The percentages in Column C are carried over the following page. Source: SIFIDEY Survey of US Households 2011

87 © SIFIDEY, 2011 All rights reserved. E STIMATE OF D EMAND FROM S URVEY R ESULTS R ATIONALE AND D ESCRIPTION OF THE E STIMATED D EMAND Estimated Numbers of Households by Their Propensity to Purchase Description of Source of Percentages Rational for Use of These Numbers in Estimating Demand Percentages Number of households ABCD 1Age/Income Qualified Households Sent Invitation55 to 74 Age Group with $50,000+ Annual Income16,988,761 2 Saw Prescreening Survey (to Screen for Travel to México) Look at an ad or article about México31.141%5,290,470 3Qualified for Survey (Travelers to México)Prior travel to México7.160%378,804 4Started SurveyLook more closely at ad86.334%327,038 5Completed SurveySpend time exploring information85.847%280,754 6Completed Conjoint AnalysisLook into details of housing, prices, services32.754% 91,961 7Very Likely to Purchase in Yucatán (after conjoint)Seriously considers purchasing1.952% 1,795 8Likely to Purchase Somewhat serious about move to Mérida/State of Yucatán 9.761% 8,977 9Unsure about PurchasingThinking about it16.703% 15, Data and Numbers Used and Rationale This section provides the rationale used in estimating demand for US households headed by someone between the ages of 55 and 74 years of age with annual incomes of $50,000 or more. The percentages in Column C are from the previous page. In 2010 it was estimated there were 16,988,761 households headed by someone between the ages of 55 and 74 years with annual incomes of $50,000+ (Row 1). We reasoned that those who paid attention to the solicitation about participating in the survey represented those who would at least glance at an advertisement or article about México (Row 2). We learned that 7% of the respondents had traveled to México (Row 3) this represents a target market sector of 378,804 households. We focused the study on this group because we believe the most cost effective and efficient method of identifying and capturing the target market sector is to focus on those who are traveling or who have traveled to the country and who would pay attention to an advertisement. Source: SIFIDEY Survey of US Households 2011

88 © SIFIDEY, 2011 All rights reserved. E STIMATE OF D EMAND FROM S URVEY R ESULTS – P AGE 3 R ATIONALE AND D ESCRIPTION OF THE E STIMATED D EMAND CONTINUED 88 Estimated Numbers of Households by Their Propensity to Purchase Description of Source of Percentages Rational for Use of These Numbers in Estimating Demand Percentages Number of households ABCD 1Age/Income Qualified Households Sent Invitation55 to 74 Age Group with $50,000+ Annual Income16,988,761 2Saw Prescreening Survey (to Screen for Travel to México)Look at an ad or article about México31.141%5,290,470 3Qualified for Survey (Travelers to México)Prior travel to México7.160%378,804 4Started SurveyLook more closely at ad86.334%327,038 5Completed SurveySpend time exploring information85.847%280,754 6Completed Conjoint AnalysisLook into details of housing, prices, services32.754% 91,961 7Very Likely to Purchase in Yucatán (after conjoint)Seriously considers purchasing in Mérida/Yucatán1.952% 1,795 8Likely to PurchaseSomewhat serious about purchasing in Mérida/Yucatán9.761% 8,977 9Unsure about PurchasingThinking about the idea of purchasing in Mérida/Yucatán16.703% 15,360 We believe that those who started and completed the survey represent households who will look at an ad or article (Row 4) and spend some time exploring the information (Row 5). We believe those survey respondents who completed the entire survey and qualified to participate in the conjoint analysis study because they would consider moving part-time or full-time to Mérida or the State of Yucatán represent those who would look into the details of housing and living in the area (Row 6). We believe that the proportion of respondents out of the entire sample of respondents who completed the survey who said they are very likely to purchase in Mérida or the State of Yucatán represent the proportion who would seriously consider purchasing a residence in Mérida or the State of Yucatán (Row 7). Similarly, the percentage likely to purchase represent those who are some what serious about purchasing in the area (Row 8), and those who are unsure represent those who might be thinking about the idea of purchasing a home in Mérida or the State of Yucatán. These estimates yield a total of 1,439 households who are very likely, 7,193 who are likely and 12,308 households who are unsure if they will purchase a home in Mérida/State of Yucatán. The numbers in Column D of Rows 7, 8 and 9 are carried to the next page. Source: SIFIDEY Survey of US Households 2011

89 © SIFIDEY, 2011 All rights reserved. E STIMATE OF A NNUAL D EMAND IN Estimate of Annual Demand in 2010 Estimates of Demand by Propensity to Purchase (from previous page) Proportion Purchase within 3 Years Potential Demand over Three Years Annual Demand ABCDE 1Very Likely to Purchase in Yucatán1, Likely to Purchase8, ,0521,017 3Unsure about Purchasing15, , Total Demand26,132 6,1002,033 These estimates take into consideration the time frame in which the survey respondents who said they were very likely, likely or unsure if they would purchase a residence thought they might purchase a home. Fifty percent who were very likely to purchase (Column C Row 2), 34% of those likely to purchase (C Row 3), and 14 percent who were unsure if they would purchase (C Row 4) said their time frame to purchase was within three years. By calculating the percentage whose time frame for a purchase is within three years (Column D), then dividing that number by three to yield the annual demand (Column E) we see there is a total potential demand for a total of 2,033 residential purchases in Mérida or the State of Yucatán (Column E Row 4), if the area was being marketed to travelers in the US who have been to México based on 2010 estimates of households headed by someone 55 to 74 years of age with $50,000+ annual household income. The capture rate for the estimate annual demand is likely to be smaller for each of the subsequent groups from those very likely to purchase to those who are unsure about purchasing. Source: SIFIDEY Survey of US Households 2011

90 © SIFIDEY, 2011 All rights reserved. E STIMATE OF A NNUAL D EMAND IN 2015 The estimated potential demand for residential purchases in Mérida and the State of Yucatán in 2015 grows to 2,534 as a result of the growth in population of the households in the target age and income categories. This growth does not include any increase based on the results of an effective marketing and sales program. 90 Estimate of Annual Demand in 2015 Among U.S. Households Headed by Someone 55 to 74 Years of Age with an Annual Household Income of $50,000+ Estimates of Demand by Propensity to Purchase (from previous page) Proportion Purchase within 3 Years Potential Demand over Three Years Annual Demand ABCDE 1Very Likely to Purchase in Yucatán2, , Likely to Purchase11, ,8031,268 3Unsure about Purchasing19, , Total Demand 32,564 7,6022,534 Source: SIFIDEY Survey of US Households 2011


Download ppt "© SIFIDEY, 2011 All rights reserved. R EPORT OF THE SURVEY OF US T RAVELER H OUSEHOLDS Estudio de Mercado 1."

Similar presentations


Ads by Google