VZCZCXYZ0000
PP RUEHWEB

DE RUEHMU #2232 2751707
ZNR UUUUU ZZH
P 021707Z OCT 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC PRIORITY 1400
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS MANAGUA 002232 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
USDOC FOR 4332/ITA/MAC/WH/MSIEGELMAN 
3134/ITA/USFCS/OIO/WH/MKESHISHIAN/BARTHUR 
 
E.O. 12958: N/A 
TAGS: ECON EINV NU
SUBJECT: PATRONAGE TRUMPS PROFESSIONALISM AT NICARAGUAN TOURISM 
INSTITUTE 
 
REF: (A) MANAGUA 1789, (B) MANAGUA 452, (C) MANAGUA 341 
 
¶1. (SBU) Summary: Representatives of the Nicaraguan tourism industry 
complain that the Nicaraguan Tourism Institute (INTUR) has been 
decimated by an overhaul in personnel since President Ortega took 
office in January.  They report INTUR is "paralyzed," offering no 
strategic vision for the sector.  Industry insiders fear that 
prospects for the tourism sector, once poised for takeoff, have 
dimmed.  End Summary. 
 
¶2. (SBU) President Ortega appointed real estate developer Mario 
Salinas as President of INTUR in January 2007.  Salinas quickly 
promised to develop the Atlantic Coast as a tourist destination and 
focus INTUR marketing on U.S. retirees and golf enthusiasts. 
Salinas also pledged to promote special tourist routes for groups 
such as Nicaraguans residing abroad and foreigners interested in 
Nicaragua's socialist history (Ref B).  Policy and management 
conflicts with INTUR Vice President Nubia Arcia led to Salinas's 
departure in June.  He now serves as Presidential Advisor for 
Tourism, Housing, and Infrastructure. 
 
¶3. (SBU) In July, Arcia inherited Salinas' position.  She lasted 
until late August, when she was summarily fired.  In a conversation 
with Econoff, Tourism Chamber (CANATUR) officials said that Arcia 
was dismissed because she was "incompetent." 
 
¶4. (SBU) Ninette Marcenaro, Vice President of INTUR under Arcia, has 
been named Acting President.  She is believed to be an FSLN 
hardliner with close ties to First Lady Rosario Murillo.  Industry 
insiders believe Arcia is the frontrunner to lead INTUR on a 
permanent basis, but she does not seem to be actively politicking 
for the job.  At a tourism forum on September 24 dedicated to better 
understanding the link between tourism development and poverty 
alleviation, Marcenaro arrived late, left early, and made little 
effort to speak with industry representatives.  At another forum 
held on September 26, she outlined INTUR's priorities in pedestrian 
form: protection of the environment, protection of cultural values, 
and tourism promotion, especially for microenterprises. 
 
¶5. (SBU) Beginning slowly under Salinas' leadership, but picking up 
pace under Arcia, INTUR management has systematically purged 
professional staff to make way for FSLN party loyalists.  To date, 
54 staffers have departed.  Industry sources believe that new 
staffers lack expertise in tourism development and promotion, 
bringing the institute to the point of paralysis.  INTUR no longer 
actively promotes the country as a tourism destination nor offers a 
strategic vision for the sector.  These same sources also complain 
that INTUR is no longer compiling statistics, making it impossible 
to track sector performance.  Acting President Marcenaro has, 
however, publicly defended the appointment of new staffers, claiming 
they are "technically proficient" and that INTUR has only replaced 
"people who held positions of trust," common practice after any 
change in government. 
 
¶6. (SBU) In a televised interview on September 26 that also covered 
problems in the tourist sector, Economic Advisor to the President 
Bayardo Arce claimed that although growth in the sector has fallen 
short of its 10% target, it is still 3%.  He blamed this 
deceleration on the lack of promotion, and staff changes at INTUR, 
noting that the institute remains under the direction of an interim 
president.  In contrast to the tourist sector forum hosted by 
Marcenaro on September 26 (see Paragraph 4), Arce focused on the 
need to improve infrastructure, such as roads, electricity, hotels, 
and tourist services. 
 
¶7. (SBU) Comment: In 2006, nearly 900,000 visitors to Nicaragua 
spent $239 million in Nicaragua on hotel rooms, restaurant meals, 
transportation, and other goods and services.  New investment in the 
sector totaled $60 million (Ref C).  Despite significant 
infrastructure challenges, the sector appeared poised for take-off. 
Since the Ortega Administration took office, however, prospects have 
dimmed.  In addition to property titling issues that have plagued 
investors for many years (Ref A), the implosion of INTUR has removed 
government leadership from the sector.  A lack of reliable 
statistics makes it difficult to say definitively that there are 
fewer visitors or tourist dollars this year versus last.  End 
Comment. 
 
TRIVELLI