Honduras launches new attractive Tourism Promotion Law to foster investment

Tegucigalpa, MDC, August 17, 2017 – As an outcome of the Honduras2020 program, several public and private sector institutions accompanied President Juan Orlando Hernández in the approval act of the new Tourism Promotion Law, submitted by the National Congress with attractive benefits to detonate investment and employment in the tourism sector of Honduras.

Honduras set itself, the task of innovating country incentives to the investor, thus achieving the goal of 250,000 jobs in that sector, an additional 1 million tourists annually and double the amount of tourism exports for the national economy, proposed in the Honduras2020 Program.

The country lacked the right conditions to attract investment in the sector. Despite being one of the Central American countries with the most varied tourism offer with an enormous wealth of natural resources, its level of growth in this sector is barely 0.5% comparing to the rest of the region whose average annual growth reaches levels up to of 7%.

Several institutions joined forces to materialize the new legal framework for the promotion of tourism, including the private public partnership Honduras2020, the Honduran Tourism Institute (IHT), the Honduras National Tourism Chamber (Canaturh), the Honduran Business Council (Cohep) and the Honduran Business Association of Small Hotels, among other institutions and businessmen from all over the nation, who presented to the Congress the law.

This law, which was approved by President Juan Orlando Hernández, includes a package of attractive incentives for local and international investment and at the same time ensures a profitable fiscal benefits over time. It also becomes an important instrument to generate new sustainable jobs through the investment expected over the next few years.

Part of the characteristics of the Tourism Law are:

  • Equal treatment to motivate small, medium and large Honduran and foreign entrepreneurs to invest in the tourism sector of Honduras.
  • A new legal framework for existing companies that make additional new investments for more than 35% of their initial investment.
  • Fiscal stability agreements
  • Incentives for the investment of natural or legal persons
  • Fund to support land and air transportation companies in tourism.
  • Possibility of setting up investment trust funds
  • Special provisions on municipal permits and taxes
  • Fund for Investment, Promotion and Promotion to Tourism (FITUR) with concessional conditions
  • Investor obligations

It is important to mention that the tourism promotion law guarantees a substantial return to the incentives provided, which is achieved – among others – by:

  • Sales tax collection for lodging, purchase of food and alcoholic beverages, recreation and others
  • Income tax / Sales tax collection paid from the hotel suppliers
  • Sales tax collection increase for consumption of workers generated from new jobs
  • Tourism Service Fee collection

Estimates suggest that additional tax revenues of approximately US $ 4 billion over the next 18 years could be achieved using a 60% hotel occupancy model.

This law is part of a larger strategy that will make the tourism sector a pillar of real growth to improve the quality of life of thousands of Hondurans. Which includes customer service training programs for the workforce and the necessary hotel, entertainment and urban infrastructure to compete as a world class tourist destination.

In addition, functionaries from Honduras2020 announced that there are already national and international investors are interested in investing in Honduras from the opportunities that this new Tourism Promotion Law will create, which will announce new investments and new sources of employment in the coming months.

More information:

  • Honduran Tourism Institute (IHT)
  • Honduras National Tourism Chamber (CANATURH)
Fotografìa Cortesía de David Waimin

VENTU: a new mixed infrastructure project in southern Tegucigalpa

Tegucigalpa, March 2nd, 2018. The Honduras 20/20 program, achieved a new investment for the country with an amount of $12.7 million through Vizion Development and Grupo Jamar initiative, corporations which have launched a groundbreaking infrastructure project called VENTU.

VENTU is a new type of project with a construction area of approximately 26,900 m2, with different spaces, such as an office service center with a modern and ideal work environment for work well-being, a commercial center, gastronomic and recreational activities, green area designed for visitors and Honduran family and a parking lot with 4 levels. The tower for the office area will be built in the capital city suited for companies in the BPO / ITO sector, such as call centers, software development companies, outsourced business services under the optimal conditions for this type of industry and the highest technology.

Orlando Avilés, Vizion Development’s general manager, stated that “VENTU is a complex which will facilitate comfortable and safe access to tenants and visitors, while providing the neighboring community with new leisure areas”.

During the building phase, 400 direct jobs will be created and according to project managers, 2100 indirect jobs will be generated as well. The private sector with this new investments, through the Honduras 20/20 program, will be contributing to the well-being of the citizens of Tegucigalpa and speeding up the development of the country.

“Honduras 20/20 constantly pursues this type of investment due to the fact that it boosts job creation. VENTU will stimulates BPO/ITO expansion, because it responds to the needs of Honduran and foreign capital investors in terms of technology, and optimal work conditions for outsourced entrepreneurial services. The innovation we achieve in these type of projects raises Honduras’ competitiveness, and positions us in the field of vision for world leaders in this area. Another benefit of VENTU is that it contributes to the economic reactivation and improves the urban landscape of the capital’s southern area”, added Peter Fleming, Honduras 20/20 director.

Honduras in the BPO/ITO sector has increased up to 6% annually. The country in terms of infrastructure, has the specific requirements for the growth of the sector. Furthermore, over 10,000 bilingual Honduran youngsters graduate every year.

“VENTU will be the first project for mixed use in southern Tegucigalpa, providing an outstanding space for commerce, business, lifestyle, and leisure for the rapidly growing surrounding community”, stated José Maymir Jarquín, Grupo Jamars’ Administrative Manager.

VENTU, projected to be finished by 2019, came to enhance all the country’s competitive advantages for foreign companies that seek to invest in Honduras.