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The History of Puerto Vallarta

by James Hunter |

The History of Puerto Vallarta

The area of today’s Puerto Vallarta was originally part of the pre-Hispanic Aztatlan culture until the time of the Spanish conquests in the early 1500s. The Spanish dubbed the valley nestled between the Sierra Madre Mountains and the Pacific Ocean Valle de Banderas (Valley of Flags) due to the many flags and banners the conquered native groups carried into battle. It then became a favored port for trans-Pacific ships as well as pirates well into the 19th century not to mention many traders evading taxes from the nearest major port of San Blas, Nayarit. Many records from this period also refer to the bay as Bahia de los Jorobados (Humpback Bay) due to the abundant humpback whales found, and often hunted in the bay.

    During this period development arrived in the form of silver mines high in the mountain towns of San Sebastien, Talpa de Allende, and Mascota. Tradition has it that Guadalupe Sanchez Torres founded the first village near the Cuale River in 1851, when he brought his family to live here and christened the village, “Las Peñas” however the documentation of the purchase is dated 1859. By 1880 the population numbered 1,500 people. On May 31, 1918, the town of Las Peñas was granted incorporated as a municipality with the new name of Puerto Vallarta in honor of the renowned lawyer and Jalisco state Governor, Ignacio L. Vallarta.

    In 1925, the American-owned Montgomery Fruit Company purchased 70,000 acres of land near Ixtapa to establish banana plantations for export. The company operated until 1935 when land ownership laws were reformed.

    By 1930, some of the first Mexican and international tourists began to discover the area and returned each year, however it was not until November 11, 1954 when Mexican de Aviacion airlines began there first return flights between the city of Guadalajara and Puerto Vallarta. The airline added direct routes to Los Angeles in 1962 in affiliation with Pan Am Airlines.

    In 1963, Hollywood film director John Huston followed local land developer Guillermo Wulff’s recommendations and set out to film, Night of the Iguana in the Mismaloya area. With its all-star cast and the scandalous public affair going on between the film’s star Richard Burton and Elizabeth Taylor, Puerto Vallarta received a constant barrage of international publicity featuring the stunning tropical setting. The two celebrities would eventually build homes here in the area now known as Gringo Gulch.

    The growing tourism demand led Jalisco State Governor Francisco Medina Ascencio to campaign tirelessly during his tenure from 1965 to 1971 for investment in urban development and infrastructure. On May 31st, 1968, Puerto Vallarta was reclassified as a city and several road and bridge projects soon followed, along with a new International airport named after the sitting President, Gustavo Diaz Ordaz. Several large hotel construction projects soon followed including the Sheraton Bougainvilleas Hotel which opened in 1980.

    From 1980 and 1990, the population of Puerto Vallarta nearly doubled from 57,000 people to 112,000 spurred in large part by the sudden devaluation of the Mexican peso enticing even more American and Canadian visitors with their suddenly greatly increased purchasing power. Shortly thereafter the Martinez Guitron brothers began a major commercial and residential development that would open in 1993 as Marina Vallarta featuring homes, condos, schools, hotels, marinas and world class-cruise ship terminal facilities.

    In 1996, the city established the Puerto Vallarta Tourism Fund collecting a 2% room tax on all tourist accommodation and has, since that time, re-invested 100% of these funds, in collaboration with local stake-holders, in the international promotion of this world-class beach tourist destination.

    With North America’s first baby-boomers now reaching retirement age, increasing numbers are choosing Puerto Vallarta for their retirement, driving an accelerating real estate boom. High-rise condo towers have now made their debut in Puerto Vallarta engendering mixed reviews from local residents. Some suggest Puerto Vallarta risks becoming Acapulco-ized. With these countless new full-time residents also comes the need for expanded infrastructure and services along with ever increasing diversity in its population and choices for diversion.

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