Economic Impact of Mexico

Much of the MSA's success derives from its geographical and cultural link with Mexico. 10 miles south of Pharr is Reynosa, Mexico, with a population of more than 750,000. Monterrey, Mexico, with a population of more than 3 million, is less than two hours away. NAFTA and the international bridge between Pharr and Reynosa make the two cities' economies dependent on each other for growth.

Consumer market area of 10 million people.
Mexican visitors’ economic impact on the Rio Grande Valley was $3B in 2004, including both direct and indirect spending. These expenditures supported 64,000 jobs.
The peso's strength, Mexico's high tariffs on Chinese imports and the social status equated with being able to afford to travel for shopping are among the reasons Mexican shoppers keep coming north.
Mexican visitors traveling to the Rio Grande Valley by car spent about $5,000 a year shopping. Those traveling by plane spent an estimated $8,000 a year.
Though the majority of Mexican visitors are day trip visitors, a considerable portion (36%-40%) stay overnight for usually up to seven nights.
85% of those that cross spend their time on shopping.
Clothing items constitute more than 46% of total expenditures; groceries 9%; appliances 12%; and dining at area restaurants is 10%.
Mexican shoppers exhibited a very high level of brand loyalty, were very price and quality conscious, and had especially favorable views of U.S. products in terms of their technological advancement, price competitiveness, high quality, and variety of choices
From 1978-2001, nearly 36% of sales in the MSA were from Mexican nationals.
La Plaza Mall in south Hidalgo County is "well above" the 2005 national average of $392 in sales per square foot.
MSA per capita retail sales are twice the national average.
As recently as 1990, the area’s unemployment rate was at 22.6%; by the end of 2005, that figure dropped to 7.7%.

Sources: Center for Border Economic Studies University of Texas-Pan American 2003; San Antonio Express-News 2006