Prior to 1973, hotels in the city tended to be modest, and only two large sized luxury hotels existed (the Real and the Posada Vallarta). After 1973, Puerto Vallarta experienced rapid growth in the number of larger luxury hotels, culminating in 1980 with the opening of the Sheraton Buganvilias. In 1982, the peso was devalued and Puerto Vallarta became a bargain destination for US tourists. Consequently, the mid-1980s saw a marked and rapid rise in the tourist volume. This in turn fueled more development, for example the Marina which was started in 1986. By the early 1990s, development of other destinations in Mexico like Ixtapa and Canc�n caused a slump in travel to Puerto Vallarta.
It was also during the early 1980s that Puerto Vallarta experienced a marked increase in problems related to poverty. While the devaluation of the peso brought record numbers of tourists to the area, it also stifled investment and thus construction. So while more and more workers were arriving in Puerto Vallarta to try to cash in on the booming tourist trade, less and less was being done to accommodate them with housing and related infrastructure. So during the mid-1980s the city experienced a rapid growth in impromptu communities poorly served by even basic public services, and with a very low standard of living as the boom of the early 1980s leveled out. During the late 1980s, the city worked to alleviate the situation by developing housing and infrastructure, but even today the outlying areas of Puerto Vallarta suffer from poor provision of basic services (i.e. water, sewage, roads) as a legacy of the early 1980s.
In 1993, the federal Agrarian Law was amended allowing for more secure foreign tenure of former ejido land. Those controlling ejido land were allowed to petition for regularization, a process that converted their controlling interest into fee simple ownership. This meant that the property could be sold, and it led to a boom in the
