VZCZCXYZ0000
OO RUEHWEB

DE RUEHTG #0745/01 2252151
ZNY CCCCC ZZH
O 132151Z AUG 09
FM AMEMBASSY TEGUCIGALPA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0427
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE IMMEDIATE
RUEAIIA/CIA WASHDC IMMEDIATE
RUCPDOC/DEPT OF COMMERCE WASHDC IMMEDIATE
RUEIDN/DNI WASHINGTON DC IMMEDIATE
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC IMMEDIATE
RUMIAAA/USSOUTHCOM MIAMI FL IMMEDIATE

C O N F I D E N T I A L TEGUCIGALPA 000745 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: DECL: 08/13/2019 
TAGS: BBSR EAIR ECON ETRD HO KDEM
SUBJECT: TFH01: HONDURAN TOURISM SUFFERS POST-COUP BLUES 
 
REF: A. TEGUCIGALPA 712 
     ¶B. TEGUCIGALPA 701 
     ¶C. TEGUCIGALPA 680 
 
Classified By: Ambassador Hugo Llorens, reasons 1.4 (d) 
 
 ¶1.  (U) Summary: Tourism, the third largest revenue source 
in Honduras, is significantly down since June 28, having 
borne the brunt of the economic impact of the coup d'etat. 
Hotels report higher vacancy rates and airlines have noticed 
a significant drop in bookings, which have led them to cancel 
seasonal flights.  Passenger ferry business between La Ceiba 
and Roatan has also experienced a sharp reduction in 
ridership.  There are some signs that the industry is 
beginning to rebound slightly.  End Summary. 
 
¶2.  (C) In an August 6 meeting that the Ambassador convened 
with President Zelaya's cabinet ministers who are residing in 
Tegucigalpa (reftel A), Minister of Tourism Ricardo Martinez 
pointed out that tourism, the third largest revenue source in 
Honduras, is down 50 percent in the Bay Islands and 80 
percent in Copan. 
 
¶3.  (SBU) Adolfo Facusse of the National Association of 
Industries (ANDI) told EconOff that while the tourism sector 
(primarily hotels and restaurants) saw an immediate decrease 
in business because of travel warnings, curfews, and fear of 
unrest, business is normalizing as customers get used to the 
current situation and as the hospitality industry becomes 
aggressive in offering discounts and other incentives. 
 
------------------ 
HOTELS STILL ROOMY 
------------------ 
 
¶4.  (U) The hotelier industry in San Pedro Sula reported on 
August 3 that room occupancy rates are at 30 percent, down 
from the normal of 80 for this season.  On August 12, The 
Hilton hotel in San Pedro Sula told EconOff that rates have 
improved, with occupancy rates now around 90 percent during 
the week, and somewhat lower on the weekends. 
 
¶5.  (U) Meanwhile, because of their proximity to locations 
where protesters gather, the major hotels in Tegucigalpa 
continue to suffer losses.  The Marriott hotel, which is next 
door to the Presidential Palace, was closed for 11 days after 
the coup.  Since then, in spite of increased security, they 
are averaging only about 25 percent occupancy.  Other hotels 
are faring better, although with significantly lower 
occupancy rates when compared to July of last year.  The 
InterContinental is now at 60 percent occupancy, down from 
its average occupancy rate of 90 percent. 
 
¶6.  (SBU) Hotels in tourist destinations are suffering the 
most.  In a meeting with the Ambassador and EconOff on July 
21, a group of U.S. Citizens representing tourism-related 
businesses owned by AmCits in Copan and the Bay Islands 
estimated that tourism was down by as much as 40 percent 
since the coup and that this was the first time they had ever 
seen a decrease in the number of hits received on their 
websites.  Through aggressive marketing and discounts, 
tourism in the Bay Islands has begun to rebound.  The Mayan 
Princess hotel said on August 12 that weekend occupancy rates 
are at or near 100 percent, but remain low during the week. 
On August 12, EconOff contacted Posada Real (whose clientele 
is primarily French) and Hotel Plaza Copan (whose clientele 
is primarily American).  Both hotels continue to experience 
cancellations from foreign visitors, resulting in 
unseasonably low room occupancy rates of 10 to 15 percent. 
 
---------------------- 
AIRLINES FLYING LIGHT 
---------------------- 
 
¶7.  (SBU) American Airlines country manager Verna Osorto 
confirmed that due to a significant decrease in bookings 
since June 28, they had to cancel their second daily 
Tegucigalpa-Miami flight.  This flight was a seasonal flight 
that normally operates in June, July, and August.  The 
airline representative said that prior to June 28 flights out 
of Tegucigalpa were about 70 percent full, but now only about 
30 percent of seats are sold.  American has not seen a 
significant change in its flights in and out of San Pedro 
Sula which are still 80-90 percent sold.  American Airlines 
does not fly to Roatan. 
¶8.  (SBU) Continental Airlines general manager Geovany Rosa 
reported to EconOff that Tegucigalpa passengers are down 50 
percent as a result of the political crisis.  Continental 
typically operates an additional afternoon seasonal flight in 
Tegucigalpa on Fridays, Saturdays and Mondays, but cancelled 
this flight due to lack of demand.  Continental has seen a 
reduction of almost 50 percent in San Pedro Sula as well, 
however in San Pedro Sula the additional afternoon flights 
are still operating.  Roatan has also been affected, but not 
as severely as Tegucigalpa and San Pedro Sula. 
 
¶9.  (SBU) Delta Airlines operates daily flights to 
Tegucigalpa and San Pedro Sula and a weekly flight to Roatan. 
 Dina Morales, the local manager for Delta, told EconOff that 
they have observed a 40 percent decrease in sales.  The 
majority of the decrease in passenger traffic is for its 
Tegucigalpa route.  Delta has no plans to cancel or scale 
back its service to Honduras. 
 
-------------------- 
FERRY BARELY AFLOAT 
-------------------- 
 
¶10.  (SBU) Passenger ferry business between La Ceiba and 
Roatan has also been affected by the current political 
situation.  Galaxy Ferry told EconOff that during the first 
four weeks after the coup, they experienced a sharp reduction 
in ridership.  In the last couple of weeks, they have 
partnered with hotels to offer a 2 for 1 special, leading to 
improved sales.  Ferry company management noted that at this 
time of year, they usually have large numbers of tourists 
from El Salvador; this month they have had none. 
LLORENS