El Salvador has firmly established itself as a prime destination for tourism investment, with projects totaling over $7.5 billion currently in the pipeline. UN Tourism recently underscored the country’s attractiveness to foreign investors, citing its robust economic growth, controlled inflation, and a booming tourism sector.

In 2023, El Salvador attracted a record $730 million in Foreign Direct Investment (FDI), marking an impressive 344% increase compared to the previous year. This growth trajectory continues into 2024, with FDI rising by 8.8% in the first quarter compared to the same period last year.

The government, in collaboration with UN Tourism and the Development Bank of Latin America and the Caribbean (CAF), launched the El Salvador Tourism Doing Business-Investing in El Salvador Investment Guide to support entrepreneurs and investors. This guide provides critical insights into the country’s business climate and available opportunities in the tourism sector.

Natalia Bayona, Executive Director of UN Tourism, praised El Salvador for becoming “synonymous with security and trust,” two key factors that attract foreign investment. She highlighted that tourism now contributes 11% to the country’s GDP and that El Salvador is a growing source of inspiration globally, with foreign investments rising by over 344%.

The tourism sector’s growth is further evidenced by a 40.4% increase in tourist arrivals since 2019, making El Salvador the fourth fastest-growing tourism destination in the region. Additionally, the average daily expenditure per tourist has risen from $107.60 in 2019 to $153.70 in 2023.

El Salvador’s tourism boom is backed by stable political and economic conditions, including favorable tax policies and improved credit ratings, which have contributed to a favorable investment environment. The country is attracting investment from Panama, the United States, Spain, Colombia, and Honduras, further boosting its position as a regional hub for tourism growth.

President Nayib Bukele and Minister of Tourism Morena Valdez celebrated the UN Tourism report, emphasizing El Salvador’s role as a key player in Central America’s investment landscape. UN Tourism Secretary General Zurab Pololikashvili also stressed the importance of investment in fostering sustainable and resilient tourism that benefits the economy, culture, and the environment.

Sergio Díaz-Guardado, Executive President of CAF, noted that El Salvador, despite being the smallest country in the region, has become a significant driver of investment and tourism, further enhancing its position on the global stage.