The Meeting Point in Central America: The Meeting Point in Central America Slide2: 2005 in numbers
Population : 6.7 million
GDP : $16.2 Billion
GDP per capita: $2,400
GDP Growth: 2.8%
Inflation rate: 4.5%
Economically Active Population: 2.8 million
Average Interest Rate for > 1 year loans: 7% yearly
Record in Tourist visits: 1,154,386
Growth Rate in tourist visits : 19.8% Why invest in El Salvador?: Why invest in El Salvador? Variation 2003-2004 NO DEVALUATION RISK Why invest in El Salvador?: LOWEST INTEREST RATES IN CAFTA REGION Why invest in El Salvador? Why invest in El Salvador?: ONLY COUNTRY IN THE CAFTA REGION THAT OFFERS LONG TERM LOANS Loans granted for over 10 years represent 58% of the new loans Why invest in El Salvador? New Loans: As % of total loans registered in the period 2001-2004 Slide6: MOST COMPETITIVE COUNTRY IN CENTRAL AMERICA, and fourth in all Latin America
*Global Competitiveness Report 2005, World Economic Forum. Competitive El Salvador Slide7: STRONGEST INSTITUTIONS (World Economic Forum)
MOST TRANSPARENT ECONOMY IN THE CAFTA REGION (Transparency International)
AMONG THE THREE CLEANEST ECONOMIES OF LATIN AMERICA (Transparency International). Soucrce: Transparency International Transparency and Strong Institutions Slide8: ONE OF THE MOST LIBERALIZED COUNTRIES IN THE WORLD
SECOND FREEST ECONOMY IN LATIN AMERICA, only after Chile.
(The Heritage Foundation) Source: The Heritage Foundation Economic Freedom in El Salvador Slide9: ONLY THREE COUNTRIES IN LATIN AMERICA: CHILE, MEXICO AND EL SALVADOR Investment Grade Slide10: Strategic location
Only two hours away from Miami
In the heart of the Americas Slide11: 23rd Best infrastructure among 117 countries
Competitiveness Report 2005, World Economic Forum.
Safest in Central America
Only country in C. A. certified category 1 by Federal Aviation Administration Best Airport In Central America Slide12: THE SEAPORT
Under construction. To become a world class seaport for POST PANAMAX and POST PANAMAX PLUS vessels. It is expected to be completed in 2008. La Unión seaport Slide13: THE DRY CHANNEL
An interoceanic 371 km highway, will connect the Pacific ocean with the Atlantic side of Guatemala and Honduras Seaports. Transportation from one ocean to the other will take 7 hours.
Slide14: The best road infrastructure in Central America BEST MAINTAINED HIGHWAY AND ROAD SYSTEM IN CENTRAL AMERICA, and one of the best in Latin America. (Interamerican Development Bank)
This could be accomplished through FOVIAL, a fund destined to maintaining the highway and road system.
FOVIAL has been used as model by other countries in Latin America. Slide15: Competitive Telecommunications More than 1 million phone lines with an average annual growth rate of 13.7% during the last 5 years.
More than 2 million mobile active phones with an average annual growth rate of 158% during the last 2 years.
Optic fiber is available throughout the country, with broad band capabilities. Use and Access of Information Technology.
Classified no. 59 of 115 countries (leader in the C.A region. )
Source: World Economic Forum Slide16: Electricity System Privatized generation and distribution of electricity
Diversified sources of generation:
21% Geothermal, 28% Hydroelectric, 40% thermal, 11% Imported
Electricity shortage close to zero.
The lowest energy rate in Central America to the industrial sector Slide17: Who invest in El Salvador? Slide18: DECLARED:
Policy of State
Budget Priority Tourism Slide19: El Salvador has an extended labor force:
70% of population is less than 34 years old
60% of the GDP comes from services
English is spoken widely throughout the country
Salvadorans are known as hard working and cordial. Key factors for the hospitality industry Service Driven Slide20: 1,154,536 visitors
19.8% growth vs 2004 Emerging destination Slide21: Fiscal Incentives Package - To foster Supply
Markerting and Promotion fund - To foster Demand
National Tourism Registry - Ordering of the Industry
Decentralization – Local Tourism Development Comittees Tourism Law Slide22: Full Import tariffs and VAT exemption for the introduction of goods, equipment, accessories, machinery, including construction materials for the implementation of the project. Full exemption of taxes on Real Estate transfers, for the acquisition of the real estate to be used in the project Full exemption on Income Tax, for a period of ten years beginning the first year of operations. Partial exemption of Municipal taxes up to a 50% of its value
during a 5-year period, beginning the first year of operations. Fiscal incentive package Slide23: US$7.00 Special Contribution Slide24: 5% Special Contribution Slide25: 5% Special Contribution Slide26: Tourism National Plan 2014 Objectives Slide27: Qualitative and Quantitative Objectives OBJETIVES 2014 – TURIST ACTIVITIES
Constant growth of the tourist activity
Prioritize the improvement of qualitative tourist arrivals with respect to the quantitative.
Increase of tourist sector contribution to the GDP
Consolidate El Salvador among the top 3 tourist destinations in the Central America region 2005
2,000,000 Tourist arrivals: Tourist average stay and expenses: 2005
140$ 5.5 days 7 days Slide28: Distribution based on traveling motivations: Tourists distribution based on place of origin OBJECTIVES 2014 – TOURIST DEMAND
Increase the share of international tourists, against Central American arrivals.
Define and consolidate the brand awareness of El Salvador's. 2005 2014 2014 2005 Slide29: OBJECTIVES 2014 – Tourism offer
. Increase the receptive capacity as a tourist destination and foster a high quality service offer.
Promote National and Foreign Investment in the sector. Link fiscal incentives to the completion of at least 1000 investments in the lodging offer, restaurants and complementary services. 2014
Rooms Increase in offer of tourist lodging:
200 new establishments
90% “Boutique hotels” with an average capacity (<50 rooms) Slide31: Products and Tourist Resources Congress and Conventions
Beach and Sun
Relaxing Culture and Archaeology
Nature and Adventure
Rural and Eco-Tourism Slide32: San Salvador:
“Is the favorite city for businessmen in Central America.”
(Latin Trade, February 2006 edition ) Room availability: Room availability Total rooms
In San Salvador
12,516 mts2 in hotels
>142,000 mts2 in fairground Slide34: Air Connections
(Over 32 direct flights daily from and to major cities in the US, Canada, Central America & South America) Road infrastructure
35 minutes to a surfing beach
20 minutes to a volcano
20 minutes to a volcanic lake
4 hours to Antigua Guatemala, Guatemala
6 hours to Tela & Ceiba, Honduras
8 hours to Managua, Nicaragua Connectivity Slide35: Fully booked since DAY 1.
Building 180 additional rooms Most recent success story Slide36: Unspoiled
Hard working and nice people
The freest country in Central America
The only country in C.A. certified Category 1 by the FAA EL SALVADOR IS: Slide37: The country with the best road system in C.A.
The country with the shortest distances between destines
The country with the most convenient geographical location
The only dollarized country in C.A.
The only country with Investment Grade in C.A. EL SALVADOR IS: Slide38: The country with the strongest banking system in C.A.
The country with the lowest interest rates in C.A.
A country with attractive Fiscal Incentives for Tourism Investors
The fastest emerging destine in C.A.
Ready for your business EL SALVADOR IS: Slide39: Thank You !