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    FOR IMMEDIATE RELEASE




•world Bank
    1818 H Street, N.W., Washington, D.C. 20433, U.S.1\. • Telephone: (202) 393-6360



             BANK NEWS RELEASE NO. 78/49                                                         MARCH 2 , 19 78

                           TOURISM PROJECT IN MEXICO WILL CREATE 65,000 NEW JOBS


                     A tourism project in Mexico expected to generate over 32,000 permanent jobs

             directly and another 33,000 indirectly will be supported by a $50 mill ion World

             Bank 1oan.

                     The project wi 11 help the Fondo Nacional de Fomento al Turismo (FONATUR)

             finance the construction of about 20~8DC new '.1otel rooms and related tourism

             facilities included in its 1977-79 ru·:.-Uor.wide r,rogram •



•                    FONATUR will also carry out studies of t~e demand for trained hotel person-

             ne 1 and sec tora 1 training programs; and to identify means of increasing emp f oy-

            ment opportunities in tourism projects.

                     The loan will strengthen Mexico's balance of payments by helping finance

             projects with foreign exchange earnings potential that might otherwise not be

             undertaken due to scarcity of long-term financing.                    Net foreign exchange earnings

             from the FONATUR program are expected to amount to some $3 bill ion during the

             life of the assisted subprojects.
                     The operation will help directly fill an important gap in the financing of

             the Mexican tourism sector and induce complementary foreign financing on attract-

             ive terms and conditions.           (FONATUR's address is:           Isabel la Catolica 24,

            Mexico 1, D.F.)

                     The $50 mill ion loan to N~cional Financiera S.A. (NAFINSA), with the guar-

•           antee of the United Mexican States, will have a term of 17 years, including 4

            years of grace, with interest at 7.45% per annum.

             NOTE:     Money figures are expressed in U.S. dollar equivalents.