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The US Citizens Retirement Migration to Los Cabos, Mexico. Profile and Social Effects

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The US Citizens Retirement Migration to Los Cabos, Mexico. Profile and Social Effects The US citizens Retirement Migration to Los Cabos, Mexico. Profile and Social Effects Omar Lizárraga Morales Department of Social Sciences Universidad Autónoma de Sinaloa (University of Sinaloa) Culiacán, México Abstract Today, in several Latin American countries, such as Colombia, Costa Rica, Brazil, and principally Mexico, we are witnessing a migratory movement from Canada and the United States. These migrants have the common characteristics of time and economic resources, since most of them are retired. This international immigration has had serious effects on the host communities in several areas: a) Economic: because their purchasing power is higher than that of the local population. Real estate prices have increased as well the cost of the services, principally in some urban areas, provoking a reclassification of the urban space; b) Socio-demographic: Within the migration process in some cases of the local women or men through marriage; c) Cultural: In many of the cases, the American immigrants keep their culture and lifestyle at the retirement destinations; as a result they create cultural isolation from the local people. d) Environmental: because they demand spaces near to the coast and places where the biodiversity is endangered. In this article we analyze the migratory process of the American citizens to a popular tourist destination located in the northwest of Mexico: Los Cabos, Baja California Sur. The social and environmental impacts in this region are examined. Key words: Retirement, Migration, Los Cabos, Baby Boom, Social Effects. Introduction International Retirement Migration (IRM) has become one of the most important features of social and demographic change in developed countries. It is a clear indicator of changes in migratory patterns that register new types of human mobility; this kind of movement experienced a significant increase since the last decade of the twentieth century. This is a migration model based on consumption, not production (Salvá, 2005). RASAALA , Vol. 1 No.1, 75-92 76 Omar Lizárraga Morales This movement is also surprising because it does not represent the criteria of other classical migrations: such as an economic crisis or political reasons forcing people to leave their country of origin. These are migrants seeking a better life, not only for economic reasons, but for environmental reasons, tranquility, proximity to the ocean, et al. (Almada, 2006). This type of migration is not always permanent and is often difficult to separate it from tourism and has thus not yet received much attention from scholars. International Retirement Migration can be observed in different regions of the world. In the case of the European continent, the retirees from the Nordic countries move to the Mediterranean region, highlighting destinations like Portugal, Italy, Greece, Turkey, Hungary and Spain (King et al., 1998). In Oceania, Australia and New Zealand also are popular among the retirees from northern Europe and East Asia (Shinozaky, 2006). In the American hemisphere, the countries of Central and South America such as Costa Rica, Guatemala, Colombia, Brazil, Argentina, but especially Mexico are attractive to retirees from the United States and Canada (Puga, 2001; MPI, 2006). Today this flow is becoming more important for the government of host countries, investors and academics because we are witnessing a mass retirement of members of the generation called "Baby Boomers". This is the generation born after the war, between 1946 and 1964, which now accounts for two thirds of the global population of 6.5 billion and in the U.S. 76 million of it's citizens fall into this demographic (Dailey, 2005). Mexico historically has been a destination for North American migrants, some places such as San Miguel de Allende and Ajijic have been popular among US citizens since the sixties, with painters, musicians, sculptors and hippies looking for a place distant from their home and to live on a low income. Recently, the socio-economic and demographic profile of the American immigrants in Mexico has changed. Now, many have better retirement benefits and higher incomes than previous expatriates. U.S.-Mexico migration, particularly to Los Cabos, has had important economic, social, environmental, political and cultural effects on the host society. Most have a purchasing power far beyond that of the locals and socio-cultural and economic differences have had a significant impact on the local community. RASAALA , Vol. 1 No.1, 75-92 The US citizens Retirement Migration to Los Cabos, Mexico. Profile and Social Effects 77 For this research, we conducted a survey of expatriates in Los Cabos. We took as a guide the population registered at the National Migration Institute (Instituto Nacional de Migración), in order to get the “official” data of the number of US nationals residing in the city. The number of US nationals registered in this institute is 6,123. Using this baseline number and taking a maximum error of 5% and 85% confidence as representative, the sample size in the survey was 201 questionnaires. The survey was applied to addresses where we had access, but a large part of this population live in gated communities and were thus inaccessible. We administered the surveys in public meeting and commercial centers, churches, and via e-mail as well. The survey allowed us to assess the socio-demographic features such as gender, age, marital status, place of origin, work experience, health issues, income and expenses, but also the reasons why they decided to migrate. In addition to the surveys, we also conducted some lengthier interviews with US citizens in the region. US immigration to Mexico and Los Cabos The Migration Policy Institute of the United States identified the Mexican states that receive the most elderly immigrants, these are: Jalisco, Guanajuato, Baja California, Baja California Sur and Nuevo Leon. Followed by all other states closer to the northern border such as Sinaloa, Durango, Zacatecas and Tamaulipas (MPI, 2006). The same document identified ten destinations, or poles of attraction for immigrants such as Guadalajara and Chapala, Jalisco, Leon and San Miguel de Allende, Guanajuato, Monterrey, Nuevo Leon, Ciudad Juarez, Chihuahua, Tijuana, Mexicali, Rosarito and Ensenada, Baja California and Los Cabos in Baja California Sur. Based on data provided by each of the the National Migration Institute’s regional offices, we found that there are a total of 108,052 registered Americans living in Mexico. It must be said that this number of Americans only includes those that are registered under the migration forms FM2 and FM3; nonimmigrant and immigrant, respectively (see chart 1). It is important to note that the state of Baja California Sur, currently ranks second in the country in terms of the highest rate of immigration from the United States. We do not have the exact number of Americans that live in Mexico under the (FM1) tourist visa, but these people can reside for up to six months of the year in Mexico. The RASAALA , Vol. 1 No.1, 75-92 78 Omar Lizárraga Morales Migration Policy Institute quoting the US Department of State estimated that a total of 1,036,300 American citizens are living in Mexico (MPI, 2006). Chart 1. The US Population in Mexico by State. State Number of Americans Aguascalientes 160 Baja California 22,137 Baja California Sur 13,905 Campeche 2,069 Chiapas 429 Chihuahua 11,605 Coahuila 2,482 Colima 1,110 Distrito Federal 5,858 Durango 156 Edo. De México 462 Guanajuato 9,992 Guerrero 1,121 Hidalgo 89 Jalisco 11,527 Michoacán 886 Morelos 500 Nayarit 2,357 Nuevo León 1,743 Oaxaca 1,791 Puebla 1,473 Querétaro 2,030 Quintana Roo 2,487 San Luis Potosí 487 Sinaloa 4,385 Sonora 3,500 Tabasco 108 Tamaulipas 572 Tlaxcala 76 Veracruz 1,816 Yucatán 590 Zacatecas 149 Total 108,052 Source: National Migration Institute (2009). Los Cabos is the destination examined in this research and it is particularly interesting because of the large number of US citizens who reside there and the accelerated increase in recent years. According to the Migration Policy Institute of the United States, there was an exorbitant increase in the American immigration to Mexico RASAALA , Vol. 1 No.1, 75-92 The US citizens Retirement Migration to Los Cabos, Mexico. Profile and Social Effects 79 during the years 1990-2000. For example, during this time the number of US citizens in Los Cabos increased a 308% (MPI, 2006). This is not to suggest that immigration to other destinations has slowed. Indeed, migration to Ajijic, Jalisco increased 581%, and San Miguel de Allende 47.7% during this same time period (MPI, 2006). Mazatlán is also becoming increasingly popular showing a 95% increase between the years 2004- 2006 (Lizárraga, 2006). The so-called real estate boom in Mexico is linked to this influx. According to Greg Redderman, who owns the real estate agency Re/Max of Cabo San Lucas, there are homes near the mountains with prices ranging between US$300,000 and US$600,000 and others on the beach are between US$600,000 and US$1.2 million. There are even some more luxurious properties with price tags in the US$8-10 million range. Greg also tells us that the housing boom in Los Cabos began around 2002 and the principal buyers are from California (Redderman, Greg, 10/04/08). The National Migration Institute (INM), reported in January of 2009 that 13,905 Americans lived in the state of Baja California Sur. According to the same institution 7,704 are men and 5,283 women, of whom 7,486 are renters who live on resources brought from abroad; most do not work and are dedicated completely to rest. Also, there are 5,501 who have permission to engage in income-generating activities. According to this Institute, in the municipality of Los Cabos there are a total of 6,123 Americans, accounting for 47% of the U.S.
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