Opinion: Charlie Chaplin and Bugsy Siegel helped shape Tijuana’s early economy. Today it’s evolving.
To understand Tijuana’s economy, you have to understand the reflex events of America’s economy that change course every decade.
Galicot is an entrepreneur, philanthropist, and president and founder of the nonprofit Tijuana Innovadora. He lives and works in San Diego and Tijuana.
To understand Tijuana’s economy, you have to understand the reflex events of America’s economy that change course every decade. For example, the first time that Tijuana appeared on the United States’ radar was in the 1920s when Prohibition was enacted and thousands of thirsty Americans, mostly Hollywood actors, including regular visitor Charlie Chaplin, flocked to Tijuana to enjoy alcohol.
Tijuana marks its 133rd anniversary Monday. Here, the city’s mayor, a tourism official, an entrepreneur, an executive with the Cross-Border Initiatives program at the Joan B. Kroc School of Peace Studies at the University of San Diego, a TV travel show host, a filmmaker and an executive at Tijuana Innovadora write about Tijuana.
When Prohibition ended, Tijuana’s economy practically collapsed, until the city was discovered by the same people who built Las Vegas. Bugsy Siegel and Mickey Cohen partnered with then-President Abelardo Rodríguez to build the Agua Caliente Casino even before they built the Tropicana in Las Vegas.
Agua Caliente Casino was visited by the famous public figures of the time, including Al Capone, who, according to legend, lost half a million dollars in one night. Also, a beautiful young girl named Rita Cancino, a dancer in that casino, was discovered by Hollywood and became the glamorous pin-up girl Rita Hayworth from the movie “Gilda.”
The casino was closed by then-President Lázaro Cárdenas and converted into a school in 1935. Subsequently, the economy languished until the gruesome Japanese attack on Pearl Harbor in 1941, which turned San Diego into the most important naval base in the Pacific.
Millions of American soldiers joined the war effort. Many came to San Diego to embark and go out to fight Japan, but they had a few days off and Tijuana provided the fun that the young American soldiers demanded before going to war.
In the 1950s, two major events buffeted the United States: the Korean War and a cultural clash between the WASP society and the young people who were breaking with the old conservative rules (the hippie movement). They came to Tijuana to look for quick marriages and divorces, abortions and topless girls shows. All these activities that the American society judged and complained about found a space back in the United States, gradually reducing Tijuana’s livelihood.
In the 1960s, business leaders discovered that Tijuana was a free-trade zone and, like new Marco Polos, they began to go to the East and to Europe to set up import stores. Buyers from Mexico and the United States went in search of European clothing and Japanese electronics, which produced a great bonanza in Tijuana. Later, rules and interference from the Mexican government slowly suffocated imports to the free zone, causing a serious crisis in Tijuana. This led to the maquiladora model, a new source of business that responded to the needs of the American market.
In February of this year, Tijuana had $2.96 billion in international sales and $2.54 billion in international purchases — a net trade balance of $424 million. This was fueled by the Samsung television assembly plant in Tijuana, which produces 19 million units every year that are sold across the continent.
Meanwhile, medical tourism is growing due to the extraordinary quality of Mexico’s medical services and the competition with American costs loaded with expensive insurance. Today about 10 hospitals are being built to address weight issues, hair loss, dental care and plastic surgery.
The difference in wages between San Diego and Tijuana is surprising. The going rate is $15 on both sides of the border, but in Tijuana $15 covers an entire workday and in San Diego $15 covers one hour of work. This difference allows for low-cost, high-quality production by highly qualified Mexican workers. The variety of well-known brand name items manufactured in Tijuana, including Callaway and TaylorMade golf clubs used on every course in the world, is impressive. If you have a friend who has a heart valve or a pacemaker, there is a big chance that device was made in Tijuana. There are more than 79 medical device manufacturing companies in Baja California that employ over 50,000 workers in Tijuana.
The evolution of the production and export of sophisticated items manufactured in Tijuana is impressive and predicts a happy and profitable future for both producers and consumers.
Get Weekend Opinion on Sundays and Reader Opinion on Mondays
Editorials, commentary and more delivered Sunday morning, and Reader Reaction on Mondays.
You may occasionally receive promotional content from the San Diego Union-Tribune.