Tourism Incentives Don’t Reach SMEs

In Nicaragua exemptions and tax credits for tourism activities can be exploited only by large investors.

Friday, July 13, 2012

Writing in, businessman Rafael Córdova examines the actual results of the implementation of Act 306 of 1999 which declares tourism as an industry and characterizes it as an activity in the national interest.

Cordova notes that "Since the entry into force of the law, the process of receiving it benefits has worked very well for large tourism investments that meet a number of requirements such as company profiles, market research, investment plans, financial projections for a period of 10 years, land appraisals, architectural plans, ceilings, architectural elevations, etc.. "

But "only 500 of the 8,000 tourism businesses have taken advantage of existing benefits of the law, due to the fact that small investors find it costly and cumbersome to comply with all documentation requested by the Intur now."

The employer thinks that "these requirements listed above and many others should not required in the case of investments under $100,000 in Managua and $50,000 in the departments, because taking into account the size of such investments these requirements consume a significant percentage of time and resources of the small investment. "

More on this topic

Tourism Nicaragua: Incentives for $96 million

December 2014

Between January and November 30th tax breaks for private investment projects were approved as well as 9 public ones, estimated at $95.7 million, up 125% compared to the same period in 2013.

Added to the approval for incentives for investments worth $95.7 million are more supplies for tourism, including 12 hotels, adding 283 new rooms.

New Tourism Law in Panama

November 2012

The Panamanian National Assembly has given final approval to Act 481 which includes incentives for the promotion of tourism.

Tourism businesses welcomed the new rule, but complained that no provision has been made in establishing incentives for small tourism businesses.

An article by Alex E. V. Hernandez in review some of the main provisions of Act 481:

Exemptions for Tourism in Nicaragua

October 2012

Investments under $50,000 do not receive the tax benefits enjoyed by investors of larger amounts.

The Nicaraguan Chamber of Small and Medium Tourism Businesses (CAMTUR), has asked the Nicaraguan government to contemplate extending exemptions for investments in tourism to small businesses.

Small Hotels to Enjoy Tax Exemptions

June 2012

The amount of minimum investment required in the Tourism bill in order to be able to access tax incentives in Panama will be reduced to $250 thousand.

The Tourism Authority of Panama (ATP) has agreed to reduce from one million dollars to $250,000 the minimum amount of investment required to obtain tax incentives when building a hotel outside the district of Panama.