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MEXICO
- COSTS AND
MONEY |
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Mexico is not as cheap as it
once was, despite the
instability of its currency.
Although, in general, costs
are lower than you'll find
at home, compared with the
rest of Central or South
America, prices here can
come as something of a
shock.
In the long term, the NAFTA
free trade treaty with the
US and Canada can probably
be expected to keep costs
(and, one hopes, wages)
rising, though prices will
fluctuate somewhat as the
peso goes down against the
dollar, and inflation moves
in to fill the gap. As the
peso is so unstable, all
prices in the guide are
quoted in US dollars; be
aware, however, that these
will be affected by
unpredictable factors such
as inflation and exchange
rates. Latest developments
and your own common sense
will determine how you apply
them.
Costs
The developed tourist
resorts and big cities are
invariably more expensive
than more remote towns,
and certain other areas
also have noticeably
higher prices - among them
the industrialized north,
especially along the
border, Baja, and all the
newly wealthy oil regions.
Prices can also be
affected by season
and many hotels raise
their prices during busy
times of the year. Summer,
Christmas and Easter are
the peak times for Mexican
tourists and areas like
Acapulco and Cancún,
which attract large
numbers of overseas
visitors, put their prices
up during the high season
from November to May. Special
events are also likely
to be marked by price
hikes. Nonetheless,
wherever you go you can
probably get by on US$225/£150
a week (you could reduce
that if you hardly travel
around, stay only on
campsites or in hostels,
live on the most basic
food and don't buy any
souvenirs, but it hardly
makes for an enjoyable
trip), while on US$500/£330
you'd be living very well.
Accommodation prices
range from only a couple
of dollars for a beach
cabaña to upwards of
US$60/£40 for five-star
luxury. A room in a cheap
hotel costs US$9-15/£6-10
per person and a room in
the mid-range US$20-50/£13-33.
Food prices can
also vary wildly, but you
should always be able to
get a substantial meal in
a basic Mexican restaurant
for around US$4/£3. Most
restaurant bills come with
fifteen percent IVA (Impuesto
de Valor Añadido, or VAT
sales tax) added; this may
not always be included in
prices quoted on the menu.
If you intend to travel
around a lot, transport
could be another major
expense because distances
are so huge. On a per-kilometre
basis, however, prices are
very reasonable: Mexico
City to Acapulco, for
example, a journey of over
400km, costs less than
US$22/£15 by first-class
bus, while a 24-hour
journey such as Mexico
City to Cancún (1800km)
works out at around US$80/£53.
As always, if you're travelling
alone you'll end up
spending more - sharing
rooms and food saves a
substantial amount. In the
larger resorts, you can
get apartments for up to
six people for even
greater savings. If you
have an international
Student or Youth Card
, you might find the
occasional reduction on a
museum admission price,
but don't go out of your
way to obtain one, since
most concessions are, at
least in theory, only for
Mexican students. Cards
available include the ISIC
card for full-time
students and the Go-25
youth card for under-26s,
both of which carry health
and emergency insurance
benefits for Americans,
and are available from
youth travel firms such as
STA. Even a college photo
ID card might work in some
places.
Service is
hardly ever added to
bills, and the amount you
tip is entirely up to you
- in cheap places, it's
just the loose change,
while expensive venues
tend to expect a full
fifteen percent. It's not
standard practice to tip taxi
drivers.
Currency
The "new Mexican
Peso", or Nuevo
Peso , usually written
$ (sometimes N$), was
introduced in 1993 and is
made up of 100 centavos (¢,
like a US cent) - it's the
equivalent of 1000 old
pesos. Bills come in
denominations of $20, $50,
$100, $200 and $500, with
coins of 10¢, 20¢, 50¢,
$1, $2, $5, $10 and $20.
The use of the dollar
symbol for the peso is
occasionally confusing;
the initials MN (moneda
nacional) are occasionally
used to indicate that it's
Mexican, not American
money that is being
referred to.
Currency exchange
The easiest kind of foreign
currency to change in
Mexico is US dollars cash.
US dollar travellers'
cheques come second;
Canadian dollars and other
major international
currencies such as pounds
sterling, yen and
deutschmarks are a poor
third, and you'll find it
hard to change travellers'
cheques in those
currencies. Quetzales and
Belize dollars are best
got rid of before entering
Mexico (otherwise, your
best bet for changing them
is with tourists heading
the other way).
Correspondingly, you'll
get the best rates for
cash dollars, slightly
lower rates for dollar
travellers' cheques, and
rates lower still for
other currencies: indeed,
it is a good idea to
change other currencies
into US dollars at home
before coming to Mexico,
since the difference in
the exchange rate more
than outweighs the amount
you lose in changing your
money twice.
Although the banks
have all been
nationalized, each is run
differently. The Banco
Nacional de Mexico (known
as Banamex) is probably
the most efficient;
Bancomer, almost as
widespread, is also good,
as is the smaller Banco
del Atlantico. Banks are
generally open Monday to
Friday from 9.30am until
5pm, though often with
shorter hours for
exchange. The commission
charged varies from bank
to bank, while the
exchange rate, in theory,
is the same - fixed daily
by the government.
Generally, only larger
branches of the big banks,
plus some in tourist
resorts, are prepared to
change currencies other
than dollars - and even
then often at worse rates
than you would get for the
dollar equivalent. ATM
cash dispenser machines
are now ubiquitous in
Mexico, and make a useful
alternative.
Casas de cambio
(exchange offices) are
open longer hours and at
weekends, and have varying
exchange rates and
commission charges; they
also tend to have shorter
queues and less
bureaucratic procedures.
They usually give better
rates than banks, but it's
always worth checking,
especially if you're
changing travellers'
cheques. Occasionally,
casas de cambio give rates
for Canadian dollars,
sterling and other
currencies that are as
good as those they give
for US dollars, so again
it's worth shopping
around, especially if you
intend to change a large
sum.
If you're desperate,
many hotels , shops
and restaurants
that are used to tourists
are prepared to change
dollars or accept them as
payment, but rates will be
very low. There isn't much
of a black market
in Mexico since exchange
regulations are relatively
loose, and it's not really
worth bothering with
unless it comes about
through personal contacts
or you want to do someone
a favor.
Cash and travellers'
cheques
In touristy places, such
as Acapulco and Tijuana,
US dollar bills are almost
as easy to spend as pesos.
Of course the big
disadvantage with cash is
that once stolen or lost,
it's gone forever. For
that reason, most
travellers prefer to bring
plastic and/or travellers'
cheques (personal cheques
are virtually worthless in
Mexico). But do bring some
dollars cash -
sometimes you won't be
able to change anything
else. It's also a good
idea to have a mixture of
denominations, including a
wad of single dollar
bills, and to try to bring
some pesos (US$50/£30-worth,
say), just in case you're
unable to change money on
arrival, or would rather
not wait in a long line to
do so. Although few US
banks keep foreign
currency on hand, and
banks in Britain,
Australia and New Zealand
are unlikely to stock
Mexican pesos, you should
be able to order them from
your bank's foreign desk
if you give them a few
days' notice; or you may
find them at specialist
exchange desks at the
airport.
Travellers' cheques
have the obvious advantage
over cash that if they are
lost or stolen, the
issuing company will
refund them on production
of the purchase receipt.
For that reason, keep the
receipt safe and separate
from the cheques
themselves, along with a
record of the serial
numbers and a note of
those ones you have
already cashed. If your
cheques do get lost or
stolen, the issuing
company will expect you to
report the loss to their
local office immediately.
You pay one to two percent
commission to buy the
cheques, and usually get a
lower rate of exchange for
them, but it's worth it
for the extra peace of
mind.
When buying travellers'
cheques, get a sensible
mix of denominations, and
stick to the established
names - Thomas Cook,
American Express, Visa or
one of the major American
banks - not only because
these will be more
recognized, but also
because there will be
better customer service
should they be lost or
stolen.
Visa Travel Money (www.visa.com)
This is a disposable debit
card prepaid with
dedicated travel funds
which you can access from
over 457,000 Visa ATMs in
120 countries with a PIN
that you select yourself.
When your funds are
depleted, you simply throw
the card away. Since you
can buy up to nine cards
to access the same funds -
useful for
couples/families
travelling together - it's
recommended that you buy
at least one extra as a
back up in case your first
is lost or stolen. There
is a 24-hour Visa global
customer assistance
services centre which you
can call from any of the
120 countries toll-free.
The toll-free number to
call if your card is lost
or stolen while in Mexico
is 1-800/847-2399. In the
UK, many Thomas Cook
outlets sell the card.
Credit and cash cards
Major credit cards
are widely accepted and
handy for emergencies.
Visa and MasterCard are
the best; American Express
and other charge cards are
usually only accepted by
expensive places, but an
Amex card is worth it for
the other services it
offers, such as mail
pick-up points and dollar
travellers' cheque
purchase. Credit cards are
not accepted in the
cheapest hotels or
restaurants, nor for most
bus tickets, but you can
use them to get cash
advances from banks.
Usually there's a minimum
withdrawal of around
US$75-100.
In addition, you can
get cash 24 hours a day
from ATMs in most
sizeable towns in Mexico,
using credit cards or ATM
cash cards from home.
Banamex and Bancomer
machines accept Visa and
MasterCard plus debit
cards from the Cirrus and
PLUS systems, which allow
account holders to
withdraw money directly
from their
current/checking accounts
back home. In some border
towns you can find cash
machines pay out in US
dollars.
Make sure before you
leave home that you have a
personal identification
number ( PIN )
designed to work overseas.
Remember, too, that all
cash advances on credit
cards are treated as
loans, with interest
accruing daily from the
date of withdrawal; there
may be a transaction fee
on top of this. Finally,
be aware that technical
hitches are not uncommon -
though rare, it has been
known for machines not to
dispense cash but to debit
your account anyway.
Wiring money
Wiring money is a
fast but expensive way to
send funds abroad and
should be considered a
last resort. Money can be
sent via MoneyGram or
Western Union and should
be available for
collection, from the
company's local agent,
within a few minutes of
being sent. Fees depend on
the amount being
transferred and both
companies charge on a
sliding scale, so sending
larger amounts of cash is
better value. For example,
wiring US$75/£50 to
Mexico will cost US$21/£14
whilst US$1000/£700 will
cost around US$60/£40.
It's also possible to
have money wired directly
from a bank in your home
country to a bank in
Mexico, although this is
somewhat less reliable
because it involves two
separate institutions. If
you take this route, the
person wiring the funds to
you will need to know the
telex number of the
receiving bank.
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