US embassy cable - 03TEGUCIGALPA131

UNCLAS SECTION 01 OF 03 TEGUCIGALPA 000131 
 
SIPDIS 
 
SENSITIVE 
 
GUATEMALA FOR COMATT: DTHOMPSON 
STATE FOR WHA/CEN 
 
E.O. 12958: N/A 
TAGS: EINV, ECON, HO 
SUBJECT: MINISTRY OF TOURISM BUILDS ON HONDURAS' STRENGTHS 
 
1. (U) Summary.  President Maduro came into office intent on 
nurturing the fledgling tourism industry in Honduras.   By 
tapping successful businessman (and Maduro cousin) Thierry 
de Pierrefeu to serve as Tourism Ministry, he assured that 
there would be a no-nonsense business approach to this 
priority sector.  Pierrefeu has, in fact, focused on the key 
problems highlighted in Embassy's previous reporting on the 
tourism sector, at the end of the Flores administration (see 
reftels).  He is focusing on marketing by advertising 
integrated tourism products (Caribbean vacations, Mayan 
ruins, and eco-tourism), opening tourism promotion offices 
in the U.S and a website, and seeking strategic partners. 
Juridical and personal security are being addressed with 
land titling projects and tourism police units. 
Infrastructure projects include plans for an airport in 
Copan, enhancements to attract the cruise ship trade in 
Roatan, and tourist information centers in inland tourist 
destinations.  A new Honduran airline, Sol Air, has helped 
bring down airfares from the U.S. and Central America, and 
Pierrefeu is urging new routes by U.S. airlines as well. 
Honduras still faces stiff competition for the tourism 
trade, but the GOH does appear to be on the right track. 
End Summary. 
 
2. (U) The Ministry of Tourism has an annual budget of 156.6 
million dollars.  It has designated 194 million lempira 
(11.5 million dollars) for projects already approved.  By 
moving more towards environmentally friendly tourism 
projects, exploiting Honduras' natural resources, flora and 
fauna, and concentrating on "High End Luxury Tours," the 
Ministry hopes to increase visitors by 20 percent yearly, 
and introduce an anticipated increase to Honduras' economy 
of 350 million dollars. 
 
3. (U) President Maduro and his cabinet have designated 
tourism as one of a small number of priority sectors likely 
to create a substantial number of jobs and economic growth. 
The Ministry of Tourism's strategies to increase tourism 
include 
 -- Developing tourism products for high end visitors 
(quality vacations versus quantity of visitors) 
 -- Creating a national cadaster with an actual folio real 
to improve the investment climate for foreign investment, 
building on the only experience gained in surveying the Bay 
Islands 
 -- Drafting a convention between Honduras and Guatemala 
(and other central American countries) to allow for a more 
free flow of visitors to the various Maya ruins sites to 
meet the demands of tourists 
 -- Increasing the number of cruise ship docks on the 
Atlantic coast; the inauguration of an expected dock on the 
island of Roatan is already resulting in a large increase in 
the number of tourists 
 -- Constructing a new airstrip near the Copan ruins to 
allow for day-trips for cruise line passengers from Roatan 
 -- Implementing a new tourist police force, this has 
already been accomplished in the cities of Tela and La Ceiba 
 -- Opening Honduran markets internationally via the 
internet (www.letsgohonduras.com) 
 -- Reforming the Tourism Incentives Law which allows for 
the approval of 43 hotel projects, various restaurants, 
recreation centers and car rental centers 
 -- Building municipal tourist centers in the western, 
southern and central parts of Honduras, to complement the 
existing tourist attractions on the north coast 
 -- Developing alternate sources of income for rural areas 
with high ecotourism potential 
 
4. (U) Pierrefeu, (a businessman, cousin of the President 
and organizer of the inauguration) has directed his staff to 
focus on three clear project goals.  Each of these projects, 
referred to as "tourism products" contains several smaller 
clusters of projects.  These products are titled "A 
Caribbean Creation", "Maya Renaissance", and "Tropical 
Nature Adventure." None of the projects will be marketed for 
high-density tourism. The GOH is trying to promote what 
Pierrefeu calls high quality, sustainable tourism. 
 
-------------------- 
A Carribean Creation 
-------------------- 
 
5. (U) The Caribbean Creation project involves encouraging 
tourism development in the Bay Islands and the northern 
coast of Honduras, focusing on beaches and reefs.  There are 
plans to build two thousand hotel rooms in Tela Bay and to 
promote La Ceiba as an ecotourism center with the already 
strong infrastructure of airports, hotels and national 
parks. For the Tela and La Ceiba areas, the goal is a mid to 
low-density crowd based on eco-tourism as well as the north 
coast beaches. 
 
6. (U) The goal for the Bay Islands is to develop very high- 
end (costly) low-density tourism with new resorts that have 
a more intimate ambiance such as the proposed Caribe Point 
Rosewood and Ritz Carlton projects set for Roatan.  The 
Caribe Point Rosewood will require an estimated investment 
of over USD 47 million.  The Ritz Carlton is looking to 
develop a private resort with personalized bungalows set 
along a winding river so that each cabin has a private deck 
and swimming area.  A German chain is planning a similar 
exclusive resort called Iguana Bay on Guanaja Island. 
 
---------------- 
Maya Renaissance 
---------------- 
 
7. (U) This project is about Honduras' wealth of archaeology 
and consists of a complete Mayan Route from Copan to other 
lesser known ruins and archaeological sites.  It will be 
geared towards a mid-density eco-tourism crowd. A primary 
improvement in the infrastructure of the area is a new, 
(unpaved) runway near the Copan ruins that will allow local 
commuter airlines to transport tourists from Guatemala and 
Roatan (targeted at the cruise ship tourists) for visits to 
the ruins at Copan.  The Ministry has plans to eventually 
construct an airport nearby to replace the airport that was 
closed due to its damaging proximity to the ancient ruins. 
 
8. (U) As for the south coast of Honduras, the Ministry has 
plans for improvements in Ampala, Cedeo, Punta Raton and 
Choluteca.  Choluteca will be part of a "Colonial Route" 
consisting of Gracias, Santa Rosa de Copan, Comayaqua, 
Tegucigalpa and Choluteca. 
 
------------------------- 
Tropical Nature Adventure 
------------------------- 
 
9. (U) Tropical Nature Adventure includes the marketing and 
developing of eco-tourism on the north shore, in the 
national parks and in the Copan ruins area.  The Ministry is 
also exploring an extension of eco-tourism towards high-end 
clients who wish to participate in scientific exploration. 
On a recent trip to New York, Ministry representatives met 
with people from the World Wildlife Federation, the 
Smithsonian, the Audubon, and Conservancy International and 
Counterpart International (the last two work together in 
unified projects) and National Geographic.  All responded 
favorably to the idea of participating in field studies in 
Honduras which will certify the quality of Honduras' natural 
attractions. 
 
----------------------------------------- 
Honduras' Crown of Five Ecotourism Jewels 
----------------------------------------- 
 
10. (U) The five ecotourism attractions in Honduras include 
the dolphin zone, the coral zone, the Quetzal zone, the 
Liquid mbar zone (Liquid mbar refers to a tree resin), and 
the Pipante (a small native canoe) zone.  Each of these five 
fits into one of the Ministry's aforementioned three main 
projects. 
 
11. (U) The dolphin zone includes the north coast from the 
city of Trujillo westward to Puerto Cortes.  The principal 
tourist attractions include the national park "Janet Kawas" 
and the botanical gardens in Tela; the wilderness reserves 
around the Cuero and Salado rivers and the national park 
"Pico Bonito" in La Ceiba. 
 
12. (U) The coral zone is also associated with the Carribean 
Creation, consisting of the three main islands of Utila, 
Roatan and Guanaja in Honduras' Bay Islands.  The islands 
contain the second largest coral reef in the world, second 
only to the Great Barrier Reef off the coast of Australia. 
Main attractions include the Marine Reserve at Sandy Bay, 
the Institute of Marine Science and the Roatan Museum, along 
with the marine reserves in West End and Turtle Harbor. 
 
13. (U) The Quetzal zone relates to archaeology - Maya Route 
project and covers the western part of Honduras.  It 
encompasses the Copan ruins, and sites from Lake Yojoa to 
Omoa.  The zone includes the key economic city of San Pedro 
Sula and Honduras' principal port city, Puerto Cortes.  Main 
attractions include the nightlife of San Pedro Sula, the 
national park "El Cusco", Pulhapanzak waterfalls, the ruins 
of Copan and Lake Yojoa, Honduras' largest freshwater lake. 
 
14. (U) Within the context of the Tropical Nature Adventure 
project, the Liquidambar zone encompasses the central region 
of Honduras, including the principal areas of Tegucigalpa, 
San Lorenzo and the Gulf of Fonseca.  The Gulf area includes 
several small volcanic islands stretching up into well known 
mountain peaks such as the cloud forest called "La Tigra" 
near Tegucigalpa and the well known mountainous coastal area 
of "Zacate Grande" near Choluteca in the south. 
 
15. (U) The last "jewel", definitely for the dedicated 
nature adventure lover, is the Pipante zone.  Named after 
the small canoe typically used by the locals, the areas of 
Olancho and Gracias a Dios are known as the most bio-diverse 
regions in the country.  Here, the largest and most 
developed protected areas such as the biosphere of the Rio 
Platano are the main attraction.  This is where the most 
adventurous tourists will seek to vacation. 
 
------------------------------ 
Encouraging Foreign Investment 
------------------------------ 
 
16. (U) In order to better attract foreign investment, the 
Tourism Ministry has pushed for a new land titling 
initiative.  As part of an IDB (Inter-American Development 
Bank) project on sustainable development, three 
international companies worked with the GOH to complete 
surveys of the Bay Islands via satellite, airplanes, and 
global positioning system (GPS) technologies.  They made 
topographical maps and a computerized registry of every 
piece of property in the islands.  The GOH believes this 
will simplify future land purchases, ensure future 
undisputed ownership rights to land (an important 
consideration for foreign investors such as hotel and resort 
entrepreneurs), and fortify the municipalities' ability to 
collect local taxes. 
 
----------------------------- 
Protecting Honduras' Visitors 
----------------------------- 
 
17. (U) In an attempt to better ensure the safety of 
Honduras' visitors, the development of a tourism police 
force is underway.  The first unit was created in the city 
of Tela.  Within the next six months, the Ministry intends 
to activate units in the Bay Islands, La Ceiba and La Tigra 
National Park in Tegucigalpa.  Units in Copan and the Copan- 
San Pedro Sula route will follow shortly thereafter. 
 
18.  (U) Comment: Pierrefeu brings a fresh business 
perspective into the arena of tourism planning which gives 
him a different perspective on investments than former 
tourism heads.  Pierrefeu reports that the number of 
tourists is at its highest level ever with thirty six 
percent of the tourists coming from the U.S.  In order to 
increase that number to fifty percent, Pierrefeu's staff is 
working to build alliances with US travel agencies such as 
Conde Nast and American Express.  They are also opening new 
tourism promotion offices in Washington, Houston, San 
Francisco and Chicago to compliment the office already 
servicing Miami.  The Minister has found his job to be more 
challenging than expected, but is determined to continue 
finding new, innovative ways to attract additional tourism 
to Honduras.  End comment. 
 
PALMER