Reducing prices to attract local tourists is the main strategy being used by Nicaraguan tourism entrepreneurs in areas such as Tola, San Juan del Sur and Ometepe Island.
In Nicaragua, the sharp drop in the flow of tourists as a result of the crisis that has been affecting the country since April has forced entrepreneurs, particularly small and medium-sized ones, to vary their strategies in order to try to generate income and sustain operations.
Companies in the sector expect to generate $660 million in revenue this year, mainly driven by an increase in tourist spending.
In addition to an increase in the number of visitors to the country, companies in the sector also expect a rise in the average daily expenditure of tourists, which at the close of the third quarter registered anincrease of 8.5% compared to the previous quarter.
Growth of 9% per year is part of the rewards brought about by incentives for the sector and the opening up of government by working in partnership with private enterprise.
Incentives for tourism have been vital to the creation of new projects in this sector.
Employers claim that at least six projects have been delayed pending analysis by the Board of Tourism Incentives, which has not been in session since the departure of its president two months ago.
There are at least six investment projects in the tourism sector that should have been analyzed by the Board of TourismIncentives, which, drowning in bureaucracy, is unable to hold sesion because a new president has not been formally chosen.
Nicaragua suffers from lack of air connectivity and from inflated prices to be paid to fly to Managua from nearby cities.
With only five direct air links, Nicaragua is, along with Honduras, the destination with the highest prices of airline tickets, ranging from $460 to $2117, for only one-way trip within the region. In addition, Nicaragua also receives the least amount of airlines, currenly only 7 companies are available.
Up until May incentives have been authorized for 22 tourism investment projects, including the construction of the airport in Costa Esmeralda, for $12 million.
Tourism growth and incentives granted to investment projects in the tourism sector are boosting investment in the country, which, according to estimates by the Nicaraguan Institute of Tourism, will amount to $400 million in the year.
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