INTERNATIONAL REPORT—Investors and tourists have traditionally avoided El Salvador because of government instability. However, the economic situation has become increasingly stable in recent years and a visit will reveal modern shopping centers and entertainment complexes that rival those found in any U.S. city.
El Salvador is the hub of Taca airlines and there are direct flights to almost anywhere in the Americas. The official currency is the U.S. dollar. While there is a growing buzz around the Central American country, the Pacific coast, which is considered one of the world’s great surfing destinations, is drawing considerable interest for new hotels and resorts.
“The beaches are sandy, wide and there's hardly any people,” said Joe Bruderer-Schwab, the owner of La Cocotera Resort & Ecolodge in La Barra de Santiago. “There is no air noise from planes and helicopters. The water temp is always in the 80s or 90s and there are world-class surfing waves within driving distance from anywhere in the country.”
Bruderer-Schwab first visited a friend in the area and instantly fell in love with El Salvador. “I'm not sure how tourism in El Salvador is changing at a macro level—what we're seeing is people are finding El Salvador as a ‘find’ or ‘discovery’ because tourism is relatively new,” he said. “For example, the Decamaron gets guests from Canada, because it is owned by a larger group that tries to find their cold Canadian clients somewhere warm and quick to go.”
Apart from a Decameron resort in Sonsonate, large hotels are lacking and the current offering generally ranges between 4-star eco-friendly resorts and boutique surf lodges, most of which have opened in the past couple of years.
“Twenty years ago, after the end of the Civil War, democracy was reestablished in El Salvador,” said Jorge Figueroa, Sectoral Comptroller director of El Salvador’s Ministry of Tourism. “Since then five presidents have been elected. The first four presidents were from the right, and the latter and current from the left. This shows the political advance, and the state of law that’s strong enough to support the commercial and financial agreements with foreign investors.”
The hotels market
“Decameron Hotel Resort was established in El Salvador seven years ago, it has a three-quarters of a mile beach and 552 rooms,” Figueroa said. “Barceló will start constructing a resort on the Costa del Sol in June, as well as another in San Salvador, and several other projects along the country’s 200-mile coast are expected to start soon,” Figueroa said. “The government also intends to enlarge and improve the country’s coastal highway.”
According to the Ministry of Tourism, El Salvador has 8,298 hotel rooms in the country with an average occupancy rate of 63.8%. There are currently four international hotel projects in development—two in San Salvador and another two on the coast—as well as another eight domestic hotel projects on the coast. Last year tourism accounted for 4.6% of GDP; only 10 years ago, it accounted for 0.4%. Comparatively, last year El Salvador saw an 8.97% increase in the number of tourists, from 1.15 million to 1.27 million visitors, increasing revenue by 35.9%.
The country, roughly the same size as Massachusetts, is easy to navigate. Most beaches can be reached within an hour from San Salvador’s Comalapa International Airport. Active volcanoes, colonial mountains retreats, and Mayan ruins can all be reached on day trips from anywhere on the Pacific coast.
“The beaches in El Salvador are awesome and they offer the chance to not only relax, but practice different sports. For surfing there are beaches like El Sunzal, Mama Roca, and others, which host national and regional tournaments,” said Maria O. Amaya, marketing director at Casa de Mar on Playa El Sunzal. “Los Cóbanos is a favorite place for snorkeling. The prime coastal fishing waters offer a wide variety of sport fishing adventures for the experienced and less experienced fishermen. You can also paddle your way through mangroves at the Jiquilisco and Barra de Santiago bays or the estuary at Costa del Sol.”
“We have different type of guests, from the ones that surf all day, to the ones that come for a honeymoon or a nice vacation,” Amaya said. “They come from the United States, Brazil, U.K., Spain, Italy and even Russia.”