The Tourism Boom
Nicaragua last year continued its streak of breaking tourism records from the previous year. Last year 734,971 foreign tourists visited Nicaragua, up 13.6% (88,200 more visitors) from 2003.

The tourism sector generated $166.7 million in 2004, up 9.8% from the year before. For the second straight year, tourism was Nicaragua’s number one source of foreign income.

Yearend statistics provided by the Nicaraguan Tourism Institute (INTUR) reveal that foreign visitors in 2004 increased from most regions of the globe.

Central American tourists increased by 21.7%, accounting for more than half the market. North Americans accounted for 157,782 tourists last year, up 13%, and European tourism was up 6.6% to finish at 51,262 foreign visitors.

By country, most tourists to visit Nicaragua come from the United States (131,865 in 2004), up by nearly 13% from the year before. Costa Rica, with 99,674 tourists visiting Nicaragua in ’04, represents the highest growth rate, at 30%.

15,586 Canadians visited Nicaragua last year (up 18.8%), and Spain topped European countries with 9,954 visitors last year (up 12.4%).

In fact, the only two origin countries that registered decreases in tourists for 2004 were England (6,022, down 8.8%) and Holland (4,817, down 11%).

INTUR continues to aggressively promote Nicaragua abroad as a new tourism destination. The government tourism institute regularly participates in the most important tourism trade shows in North America and Europe, and is in the process of planning a new massive outreach program in the United States.

INTUR last year also promoted Nicaragua during a series of 30­second TV spots, called “Nicaragua: It’s Hot,” which aired on the CNN airport network and CNN International.

INTUR’s promotional budget this year will be even larger – a result of the increase in tourism generated revenue. The government agency is funded by the $4 tourism card purchased by each tourist upon entering the country, a fraction of the 15% sales tax on tourism-related activities, and a three-dollar slice of the $32 airport exit tax.

INTUR is also implementing a $1.2 million training bond project in conjunction with the International Development Bank to help provide financing to train bartenders, cooks, waiters, tourism guides, administrators and technicians. The program hopes to have train 4,300 tourism employees by the end of this year, thereby making the industry more competitive.

The reforms to Tourism Investment Law 306 will also help attract more tourism development (see separate section).

Domestically, INTUR is also helping to promote national tourism by releasing attractive new tourism maps (in English and Spanish) of all the major cities. Thus far, the maps (which cost $1 each) have been created for Granada and Masaya. The maps for León, Chinandega, Estelí and Managua are in the works.

INTUR minister Lucía Salazar, who has a very close working relationship with President Bolaños, says she expects Nicaraguan tourism to surpass Costa Rica in the next five years.