El Salvador, once overshadowed, emerged as a thriving tourist destination in 2023, breaking records with 3.4 million international arrivals. This surge in tourism has not only brought cultural and economic benefits but has significantly impacted micro and small businesses (MSMEs), according to a recent study by the Observatory of MSMEs conducted by FUSAI.
The study, based on a survey of 200 micro and small businesses in key tourist destinations across the country, reveals that the tourism sector in El Salvador constitutes 10% of the Gross Domestic Product (GDP). The findings emphasize the pivotal role MSMEs play in this sector, contributing to the generation of 420,000 jobs, with 20% of these businesses being formal establishments.
One notable revelation is that a substantial 58.7% of entrepreneurs reported that, out of every 10 customers served, at least three are international visitors. This international influx contributes significantly to the vibrancy of their businesses.
The businesses experiencing the highest monthly revenues are those attracting a larger number of foreign tourists. Notably, establishments with expanded sales (between $4,201 and $8,300) see 68.2% of their transactions involving international visitors. Similarly, accommodations report a high demand, with 66.7% of their clientele being foreign tourists.
The study identifies the Ruta de Las Flores and Suchitoto as the most sought-after destinations by foreign visitors, aligning with the preferences of local tourists engaging in domestic travel.
Moreover, the MSMEs in crafts and souvenirs have experienced a 64.2% surge in demand, fueled by customers attracted to the country’s safety and the beauty of its destinations.
While the sector is thriving, challenges persist. Entrepreneurs highlighted the increase in competitors of similar or smaller size (39.6%) and the growing competition from larger companies (35.2%) as significant obstacles.
FUSAI’s findings align with recent data from the Tourism Ministry, underscoring the vital role tourism plays in the Salvadoran economy and in nationwide job creation. As El Salvador continues to attract visitors with its charm, entrepreneurs navigate challenges to sustain and enhance the positive impact of tourism on their businesses.