VZCZCXYZ0009
PP RUEHWEB

DE RUEHMU #0799/01 2251337
ZNR UUUUU ZZH
P 131337Z AUG 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC PRIORITY 4435
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS MANAGUA 000799 
 
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: HIGHER GROWTH IN NICARAGUA'S TOURISM SECTOR IN 2009 
 
REFS: A) 08 MANAGUA 1331, B) MANAGUA 753 
 
SUMMARY 
------- 

¶1. (SBU) The Nicaraguan Tourism Institute (INTUR) reported that the 
tourism industry grew 10 percent during the first half of 2009, up 
from 8 percent growth during the same period in 2008.  Some industry 
experts believe that INTUR's data, however, may not be accurate 
because it does not distinguish among family visits, business 
travel, missionary groups, and leisure travel.  Industry experts 
said the reason for the sector's growth is that Nicaragua offers 
tourists an inexpensive destination for vacation.  They are 
optimistic that 2009 will be better than 2008, but they are 
concerned that the Honduran crisis will have a negative impact on 
the tourism sector for the remainder of the year. 
 
STATISTICS SHOW GROWTH - BUT EXPERTS SKEPTICAL 
--------------------------------------------- - 

¶2. (SBU) On August 4, INTUR released its 2009 mid-year report on the 
tourism industry.  INTUR reported that tourism grew by 10% during 
the first half of 2009, versus an 8 percent hike during the same 
period in 2008, and 10 percent growth in 2007.  The government 
counted 456,873 foreign visitors to Nicaragua during the first half 
of 2009 (including family visits, business travel, and leisure). 
During the first half of 2008, 416,242 foreigners visited Nicaragua. 
 During the first trimester of 2009, INTUR reported $87 million in 
revenues for the tourism sector, up from $75 million in 2008 when 
compared to the same period.  The report concludes with a projection 
that revenues will grow by 16 percent in 2009. 
 
¶3. (SBU) Alfredo Gutierrez, former president of the Nicaraguan 
Association of Tourism Operators (ANTUR) and owner of a small 
tourism company, noted that INTUR data is poorly prepared and does 
not distinguish between family visits, business travel, and leisure 
travel (tourism).  He added that INTUR's failure to disaggregate 
these types of visitors makes it difficult to identify industry 
trends.  For example, experts suggest that business travel declined 
slightly during the first half of 2009; the managers of three major 
hotels in Managua report that hotel occupancy rates across the city 
were very low compared to the first half of 2008 (Ref A). 
 
TOURISM INDUSTRY: STRUGGLING BUT SURVIVING 
------------------------------------------ 

¶4. (SBU) Despite some skepticism concerning INTUR's statistical 
data, leisure travel appears to have increased.  Lucy Valenti, 
President of the National Chamber of Tourism (CANATUR), explained 
that the global economic crisis has compelled many tourists to look 
for inexpensive destinations, such as Nicaragua, for their 
vacations.  She said the elimination of tourist visas for Costa 
Ricans has increased the number of visitors from their neighbor to 
the South.  In addition, cruise ships are docking more frequently at 
Nicaraguan ports.  During the first half of 2009, cruise ships made 
over 40 port calls, a 5 percent increase compared to the same period 
in 2008. 
 
¶5. (SBU) Gutierrez said that he and others in the tourism industry 
have lowered their prices to attract customers, and these 
adjustments have helped to maintain their businesses.  In Granada 
and San Juan del Sur -- the most popular tourist destinations in 
Nicaragua -- hotels, bars, and restaurants report that their sales 
are either as good as last year or better.  These companies noted, 
however, that tourists are looking for bargains and are not willing 
to spend as much money as they did in previous years.  A majority of 
leisure travelers are also staying in smaller, inexpensive hotels 
for vacations of 5-7 days, instead of 10-14 day vacations, to save 
money.  The bigger and more expensive hotels and resorts are 
attracting fewer customers compared to last year.  Many 
tourism-related businesses have had to either reduce their operating 
expenses or dismiss staff in order to stay afloat. 
 
HONDURAN CRISIS NEGATIVELY IMPACTS TOURISM 
------------------------------------------ 

¶6. (SBU) Mario Salinas, President of INTUR, expressed concern that 
the Honduran crisis will affect tourism.  Salinas stated that 60 
percent of the tourists who come to Nicaragua in June, July, and 
August -- the industry's high season -- come from Honduras and El 
Salvador.  He opined that the Honduran crisis not only adversely 
affects the Nicaraguan economy, but also gives the entire region a 
bad image.  Tourism companies report that they have canceled 
organized tours to Nicaragua because of their customers' security 
concerns.  Industry representatives said their sales have dropped by 
60 percent since the Honduran crisis began on June 28.  The months 
of June, July, and August normally attract a large number of 
tourists because of the holidays and festivities that occur in 
Nicaragua and the region during this period (Ref B). 
 
OPTIMISM FOR 2009 
----------------- 

¶7. (SBU) Industry representatives are optimistic that 2009 will be 
better than 2008.  Entrepreneurs are encouraged that there has been 
a slight increase in the number of tourists so far in 2009.  They 
also report that the government is beginning to listen to their 
complaints about electricity and water supplies, and the crucial 
need for better roads.  They are concerned, however, about the 
Honduran crisis' negative impact on tourism during the high season. 
They fear that if this crisis is further prolonged, and the GON 
continues to allow Honduran President Manuel Zelaya to heighten 
tensions along the border, the tourism industry will suffer for the 
remainder of the year. 
 
CALLAHAN