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UNCLAS SECTION 01 OF 03 MONTERREY 000067 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SCUL ETRD ECON PGOV MX
SUBJECT: MONTERREY'S UNIVERSAL FORUM OF CULTURES: A HIT LOCALLY, A 
BLIP GLOBALLY 
 
REF: A) 07 MONTERREY 783, B) 07 MONTERREY 576 
 
MONTERREY 00000067  001.2 OF 003 
 
 
(SBU) Summary.  A major goal of Nuevo Leon Governor Natividad 
Gonzalez Paras has been to change Monterrey from an industrial 
town to a center of culture and knowledge.  As part of this 
transformation, the Governor arranged for Monterrey to host the 
2nd Universal Forum of Cultures, a global event taking place 
every three years with the purpose of bringing together people 
from all over the world to celebrate cultural diversity and 
discuss the most pressing issues affecting the world today.  The 
Forum was held from September 20 to December 8, 2007, with over 
1,000 events in and around Monterrey focusing on the themes of 
peace, sustainability, cultural diversity and knowledge.  The 
Monterrey Forum was mired in controversy early on due to 
mismanagement and expenditures that greatly exceeded the 
original budget.  State officials promised that the Forum would 
bring the city increased revenues in tourism and commerce with 
an expected number of two million visitors.  In the end, the 
Forum drew twice that, with over four million visitors, but the 
visitors were primarily local and regional.  Further,  the Forum 
has left new civic infrastructure in place: a riverwalk, museums 
and other attractions.  However, it is striking that the entire 
effort was focused on holding the Forum, and little thought was 
given to the possible use of the Forum structures after closure. 
 It remains to be seen whether the Forum will have any long-term 
benefits for Monterrey in terms of increased tourism or economic 
development.  End Summary. 
 
¶2.        (U) The concept of the Universal Forum of Cultures 
started with the idea of creating an intellectual and cultural 
dynamic event of global proportion, with UNESCO becoming an 
official partner to this effort in 1999.  In 2004, the first 
Universal Forum of Cultures was held in Barcelona, Spain. 
Thereafter, Monterrey was chosen as the site for the second 
Forum, beating out other cities, such as Naples, Italy and 
Valparaiso, Chile. 
 
Monterrey's Version of the Forum 
----------------------------------------- 
 
¶3.  (U) Monterrey pushed hard to host the 2nd Forum.  It became 
a pet project of Governor Natividad Gonzalez, in line with his 
goal of transforming Monterrey into an 'International City of 
Knowledge' (reftels A and B).  As such, whereas the Barcelona 
Forum dealt with the themes of peace, sustainability, and 
cultural diversity, Monterrey added a fourth theme of knowledge. 
 It was also decided that entrance to the parks and to most 
events would be free to increase accessibility for all people. 
Monterrey chose Fundidora Park, in the heart of the city, as the 
main Forum site. 
 
¶4. (U) The Monterrey Forum was open for 80 days, and the program 
consisted of dialogues, exhibitions and cultural expressions. 
In all, 800 dialogues on 12 topics encompassing the main Forum 
themes were held.  The dialogues featured 350 speakers from five 
continents and were intended to be interactive.  For the 
exhibitions, sixteen were organized in various parks, museums 
and exhibit halls.  They included ones on Frida Kahlo, Buddha, 
American Immigration, and Isis and the Plumed Serpent (a 
collection of ancient Egyptian and pre-hispanic Mexican 
artifacts).  The Cultural Expressions consisted of numerous 
concerts and cultural performances.  In all, the Forum brought 
to Monterrey 2,300 artists representing 77 countries and 450 
international figures, such as Rigoberta Menchu and Mario Vargas 
Llosa. 
 
Big Promises Followed by Low Expectations 
--------------------------------------------- --------- 
 
¶5. (U)   The promoters of the Monterrey Forum expected two 
million visitors, and although the main targeted audience was 
youth and university students, Forum officials and local 
politicians promised the Forum would draw hundreds of thousands 
of international visitors as well (reftel B).  They also 
promised substantial local economic benefits due to increased 
hotel and restaurant sales and pledged that the Forum would help 
transform Monterrey's international image. 
 
¶6. (SBU) During the run-up to the event, local critics sniped 
about the event's expense and alleged mismanagement of public 
funds.  The Forum was budgeted for US$270 million, including 
US$90 million in federal funds, including new infrastructure to 
the tune of US$130 million.  Yet early on, controversy brewed as 
word of mismanagement and wasteful expenditures spread (reftel 
B).  Gaston Melo Medina, the first Forum administrator, was 
accused of, and largely perceived to be, guilty of poor 
management at best and outright corruption at worst.  Local 
National Action Party (PAN) delegates brought a petition before 
 
MONTERREY 00000067  002.2 OF 003 
 
 
the Public Ministry against him and pushed for an audit, but 
this was rejected by the PRI-led state government.  On November 
30, 2007, days before the Forum's closure, Melo was exonerated 
by state officials.  However, the decision was largely perceived 
to be a political one in order to save face for the Governor. 
Yet, the many accusations and considerable controversy in the 
two years leading up to the Forum led many to believe that the 
proposed infrastructure would not be ready in time and that the 
Forum would fail.  In addition, the upsurge in narco-related 
violence in Nuevo Leon in 2007 led many to fear that the Forum 
would be a tempting target for organized crime, with some 
envisioning an eventual bloodbath. 
 
¶7. (SBU) In October 2006, Melo was replaced by Othon Ruiz 
Montemayor, a well-respected scion from the local business 
community.  Ruiz had  less than one year to clean up the mess 
left behind, find sponsors, complete the infrastructure, and 
turn the public's negative perception around.  In a scramble, 
the Forum organizers managed to secure 13 big sponsors who gave 
between one to 2.5 million USD.  Among the sponsors were such 
heavyweight companies such as Cemex, Femsa, Telmex, Maseca, 
Bancomer and Banorte.  Only one, HBO, was a non-Mexican company. 
 A Forum official charged with collecting sponsorships noted 
that it was impossible to solicit sponsorships at that late date 
from foreign corporations and so private funding fell far below 
expectations. 
 
Positive Reviews but a Questionable Legacy 
--------------------------------------------- -------- 
 
¶8. (SBU) Despite the bad press and to the general public's 
surprise, the Forum organizers succeeded in completing the 
infrastructure in time.  This included an expansion of Parque 
Fundidora with the Paseo Santa Lucia, an artificial river based 
on the concept of San Antonio's Riverwalk.  An elegantly 
designed walkway measuring 5 kilometers now surrounds the river 
offering pedestrians an open public space unlike any other in 
Monterrey.  New museums and an exhibit hall were also created. 
The new infrastructure has received very positive reviews from 
the public, business community, and local press.  It's seen as a 
welcome and worthwhile investment for the city.  Nevertheless, 
the total cost of the Forum is estimated to be over US$475 
million, with the infrastructure costing about US$354 million. 
Final budget figures are still being prepared and will be 
presented to the General Counsel charged with overseeing the 
Forum.  Forum officials claim they broke even in the end. 
However, this is hard to believe since few sponsors were found, 
and the estimated total cost was nearly double the original 
budget.  Indeed, Nuevo Leon has shown the strain, as there have 
been public reports of a number of infrastructure projects 
delayed in 2008 due to lack of funds. 
 
¶9. (SBU) Over the course of 80 days, the Forum drew about 4.5 
million visitors, more than double the expected number and 
considerably larger than the 3.5 million that visited the 
Barcelona Forum.  However, the majority of the visitors were 
locals.  According to state officials, only about 20% of the 
visitors were from outside of Nuevo Leon, and of those, most 
were from neighboring states.  Nuevo Leon officials estimate 
that about 40,000 were estimated to be foreigners, mostly from 
the U.S. (Texas), and the rest from Spain and Italy.  Econoffs 
took several trips to the Forum, confirming that this was 
predominately a Northern Mexican event, with extremely few 
foreigners attending.  Yet, it was widely observed that the 4.5 
million visitors represented all socio-economic levels.  This is 
unusual given Monterrey's economically-stratified society, where 
the upper class rarely mixes with the lower class.  In addition, 
no incidents of crime, vandalism or accidents were reported at 
the Parque Fundidora throughout the entire event.  Among the 
most popular attractions were the cultural exhibits such as 
Frida Kahlo and Isis, which drew large crowds and wait times 
that averaged two hours.  The dialogues, on the other hand, were 
poorly attended.  Though most agreed that the concept and 
content of the dialogues were good, they were plagued with 
ticketing errors early on, as well as poor promotion and 
scheduling.  A survey of Consulate contacts found that few had 
attended a dialogue, although almost all had been to an 
exhibition or performance. 
 
¶10. (SBU) Despite the large number of participants and overall 
positive reviews, it does not appear that the Forum will deliver 
the promised economic boom.  Figures from the Nuevo Leon Hotel 
and Motel Association show that hotel occupancy increased only 
7.5 to 8% during the Forum, with an average 75% occupancy level. 
 Yet, the owner of the Monterrey Howard Johnson and Four Point 
Sheraton noted that occupancy levels were better when the 
Rolling Stones visited in March 2006.  Restaurant sales, which 
 
MONTERREY 00000067  003.2 OF 003 
 
 
were expected to increase by at least 10%, were also 
disappointing with only a 4-7% increase; although those closest 
to the main Forum site were up 50%.  On the other hand, the 
Director of Parque Fundidora, Eric Jurgensen, noted that in 
addition to the large turnout during the Forum, the park has 
seen a 120% increase in visitors in the first month since its 
closure.  However, the popular Isis exhibit ran 6 weeks longer, 
pushing up these numbers.  Monterrey now has additional tourist 
attractions, but it still is not a tourist destination. 
Nevertheless, state officials expect that business travelers may 
now stay an additional day to see the city. 
 
¶11. (SBU) A possible negative side effect of the Forum is the 
delay in other city infrastructure projects.  The staggering 
cost of the Forum seems to have left little in the state and 
city budgets for other intended projects, such as the extension 
of the Monterrey metro, amplification of major avenues, and the 
construction of a new security building.  Moreover, the original 
Forum budget did not include a separate allotment for the 
continued maintenance of the new infrastructure after the 
Forum's closure.  Meetings with several Forum officials revealed 
that there is currently no plan for how the new spaces will be 
used in the future or who will pay for their upkeep.  Some 
suggested that a private-public partnership will need to be 
formed to manage the buildings, but gave no specifics on who, 
how or whether any proposals have been put forward.  Others 
suggested that some, if not most, of the new spaces would be 
self-sustaining, such as the Paseo Santa Lucia.  Yet, currently 
there is little commercial development there, with only three 
restaurants on the Riverwalk.  Though the idea is to follow the 
model of San Antonio's Riverwalk by continuing to develop the 
park, there is no specific plan on how to go about doing this 
and no one seems to be charged with coming up with one. 
 
¶12. (SBU) Overall, the Forum was viewed as a success in the end, 
even by those who had turned against it, such as business 
community leaders.  The general perception seems to be the Forum 
has helped to change Monterrey's image from an industrial, 
provincial town to a more sophisticated, cosmopolitan one. 
Roberto Cavazos, President of Monterrey's American Chamber of 
Commerce, remarked that the Forum 'was a spark, a beginning' for 
a city in transformation.  As for the expected deluge of foreign 
tourists, there appears to be little concern that they never 
really materialized.  Forum officials have since downplayed the 
promise that the event would attract many foreigners.  In a 
meeting with Jorge Salazar Tamez, one of the Forum directors, he 
stated that 'The idea was not to bring Monterrey to the world, 
but to bring the world to Monterrey.' 
 
Comment: 
----------- 
 
¶13. (SBU) Comment.  For Governor Natividad, the Forum's success 
may be a legacy he can claim as part of his political career. 
For Monterrey, it remains to be seen whether the Forum will have 
any lasting effects.  Given all the problems in putting the 
Forum together, very little attention was given to anything 
beyond the Forum's closure.  The fact that funding for the 
continued maintenance of the new buildings and public spaces was 
not included in the Forum budget could mean that the Forum's 
success will turn out to have been short-lived.  Those involved 
with putting the Forum together and ensuring its success have 
since moved on to better things, or back to their regular jobs. 
Aside from those still working on the final budget figures, 
Forum officials appear to have wiped their hands clean of the 
event.  Even those responsible for the promotion of the event, 
at a cost of over 6 million USD, have not bothered to take down 
the large posters and other advertisements that still blanket 
the city two months after the event's end.  Finally, since 
Governor Gonzalez Paras' term ends in 2009, unless the Forum 
structures are truly self-sustaining, it is unclear if they will 
be supported beyond that time.  End Comment. 
WILLIAMSON