The Mexican government is to invest $4.6m (£2.2m) in developing a reserve for monarch butterflies and curbing illegal logging that is threatening the insects.
Every winter the mountains and trees of central Mexico are covered by migrating monarch butterflies, a sight that has developed into a strong tourist attraction and is now an important aspect of the local economy.
The government investment will go towards ensuring that this continues by securing additional equipment for the existing butterfly reserve and generating further revenue through advertising.
Mexican president Felipe Calderon said: 'It is possible to take care of the environment and at the same time promote development.'
The existing monarch butterfly reserve covers 124,000 acres of trees and mountains.
Lincoln Brower, a professor of zoology with the University of Florida, described the butterfly nesting ground as 'the Mecca of the whole insect world'.
The orange- and black-winged monarch butterfly is considered the pride of Mexico and in some places officials can be seen at roadsides, ensuring that cars drive slowly to avoid hitting the animals as they fly across the road.
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