The Diplomat
“Tourism Doing Business: Investing in El Salvador” has been developed in collaboration with CAF – Development Bank of Latin America and the Caribbean, and the Government of El Salvador, as a tool to promote sustainable growth in the country’s burgeoning tourism sector.
In recent years, El Salvador has shown remarkable progress in attracting foreign direct investment (FDI). In 2023 alone, the country attracted USD 730 million in FDI, reflecting a staggering 344% increase compared to 2022. In addition, the first quarter of 2024 showed a growth of 8.8% compared to the same period last year, highlighting the continued momentum in investment opportunities.
Key Highlights:
- Tourism Recovery: El Salvador is experiencing a solid recovery in its tourism sector, ranking fourth globally in tourist arrivals growth in 2023, with a notable 40.4 % increase compared to 2019. This resurgence underscores the country’s potential as an attractive investment destination. Moreover, in the first half of 2024, tourist arrivals grew by an impressive 37.6 % compared to the same period in 2023.
- Increased Tourism Spending: Average daily tourist spending increased from USD 107.6 in 2019 to USD 153.7 in 2023, demonstrating increased visitor engagement and positive economic impact.
- Young and Productive Workforce: With 54% of its workforce under the age of 40, El Salvador has a dynamic labor pool known for its productivity and commitment to service excellence.
- Significant Investment Opportunities: The guidelines reveal a portfolio of projects exceeding US$7.5 billion in the tourism sector alone, presenting a wide range of opportunities for investors.
Natalia Bayona, Executive Director of UN Tourism says: “El Salvador is not only showing impressive growth in its tourism sector, with a 40.4% increase in tourist arrivals by 2023, but it is also driven by a young and dynamic workforce, with 54% of its workers under the age of 40. This talent is key to building a sustainable future in tourism. The ‘Tourism Doing Business: Investing in El Salvador’ report is a crucial tool for investors interested in taking advantage of this boom in the country’s tourism sector, backed by a 344% increase in foreign direct investment by 2023.”
UN Tourism’s Regional Director for the Americas, Gustavo Santos, says: “Youth are the engine of tourism development in El Salvador. With a booming sector and a young population committed to excellence, the country has all the conditions to become a benchmark in sustainable and globally competitive tourism. With more than USD 7.5 billion in investment opportunities in the tourism sector, El Salvador is consolidating itself as an example of how tourism transforms the local economy.”
Morena Valdez, Minister of Tourism: “El Salvador has been growing over the last 4 years in terms of visitor arrivals and foreign exchange earnings. We have been working hand in hand with UN Tourism to strengthen the human talent needed to meet the growing demand in the country.”
Sergio Diaz-Granados, Executive President of the Development Bank of Latin America-CAF, commented that “the collaboration with UN Tourism and the Government of El Salvador underscores our commitment to promote sustainable investments that drive economic growth and social development throughout the region.”
The Guide was officially launched at a high-level event in the capital city of San Salvador. The event included discussions on strategic initiatives undertaken by the government to improve security, infrastructure and investment processes.