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USD/MXN impact on the Lagunamar budget

DannyTS

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I am wondering what impact the weakening pesso will have on the resort budget for the next year.

The only mention of the exchange rate I found was in the latest (January 2019) presentation, they used 17.5 USD/MXN rate for the 2018 budget (reflected in the MF we paid in 2019). While the exchange rate was briefly at that level for few weeks in 2017, the average has been much higher after that and it is currently at 19.37. Of course this is important since the MF could actually go down once they adjust for the current USD/MXN exchange rate.

Does anyone know what is the current rate they are using for the next budget? Over the years, has anyone noticed a big discrepancy between the rate they used and the actual average exchange rate?



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jimandelise

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Use your credit card for costs at the resort. Avoid paying cash, most big banks ie, chase and amex, negotiate the exchange fees at a better discount and pass on the savings to its users
 

T-Dot-Traveller

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I am not a Lugunamar owner / so no knowledge of their budget .

As a regular reader of the TUG Mexican forum - I do not recall ever reading of a resort where
MF went down due to exchange rates .

1) Mexican resorts MF’s all seem to be in USD . This gives them long cycle $$ cashflow stability based on historic information .

2) Mexican resorts build and staff in pesos - which generally gives them lower labour costs .

3) My sense is all Mexican resorts use this “advantage “ to offer a high level of service , often
with daily room cleaning and towels etc.

4) MF stability at Mexican TS seems to be a more common result of time periods when the USD to Mx Peso exchange rate widens.
 

DannyTS

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I am not a Lugunamar owner / so no knowledge of their budget .

As a regular reader of the TUG Mexican forum - I do not recall ever reading of a resort where
MF went down due to exchange rates .

1) Mexican resorts MF’s all seem to be in USD . This gives them long cycle $$ cashflow stability based on historic information .

2) Mexican resorts build and staff in pesos - which generally gives them lower labour costs .

3) My sense is all Mexican resorts use this “advantage “ to offer a high level of service , often
with daily room cleaning and towels etc.

4) MF stability at Mexican TS seems to be a more common result of time periods when the USD to Mx Peso exchange rate widens.

I agree with everything you said. The current MF at Lagunamar is only 3.7% higher than in 2008. Probably the resort has some expenses in MXN, they pay for some big items in USD and probably some payments are in MXN but the contracts are in USD and they fluctuate based on the exchange rate. With that being said, the USD vs MXN is about 11% higher than the last one they mentioned in the budget so I wonder if that is going to have any impact at all. Of course Vistana has a lot of room in adjusting the reserves and I doubt, even if it is theoretically possible, that the MF for 2020 will be any lower.

By the way, I still cannot get over the internet cost at Lagunamar. This compares WLR with SVV Bella

Lagunamar internet cost USD 270,000 for 296 units
Sheraton Vistana Villages (Bella) internet cost USD 46,000 for 340 units

How is this even possible?
 
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jabberwocky

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By the way, I still cannot get over the internet cost at Lagunamar. This compares WLR with SVV Bella

Lagunamar internet cost USD 270,000 for 296 units
Sheraton Vistana Villages (Bella) internet cost USD 46,000 for 340 units

How is this even possible?

The US tends to have a much more competitive telecom environment than other North American jurisdictions. My understanding is that Mexican telecoms essentially still have quasi-monopolies and can charge what they want. In some cases the telecom owns the equipment and the customer has to rent the equipment.

My bigger issue overall is how much we pay for the phones in the units. It has to be a huge profit center for Vistana. In an age where just about everyone has a cell-phone (some of us have two or more), why do we still have landlines in the units?
 

DannyTS

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The US tends to have a much more competitive telecom environment than other North American jurisdictions. My understanding is that Mexican telecoms essentially still have quasi-monopolies and can charge what they want. In some cases the telecom owns the equipment and the customer has to rent the equipment.

My bigger issue overall is how much we pay for the phones in the units. It has to be a huge profit center for Vistana. In an age where just about everyone has a cell-phone (some of us have two or more), why do we still have landlines in the units?

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According to numbeo.com the internet is 56% cheaper in Cancun vs. Orlando. But even if Cancun were a bit more expensive, I would have not been surprised. But SIX times more expensive is certainly a red flag. Something else is going on IMO. Even if Lagunamar rents the equipment, it still does not seem right to me. Maybe someone who is in the board can ask at the next meeting.
 
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blondietink

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I think the landline phone issue is related to being able to dial 911 or other emergency numbers/contacting the front desk in an emergency.
 
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