Guatemala Moving Forward
New hotel, Mayan ruins, and trade fairs: Guatemágica goes after tourists in the midst of challenges
Tourism in Retalhuleu is growing with new attractions, but improved roads, air connectivity, and public investment are key to consolidating the region as an international destination.
The Xocomil water park will expand by 10 blocks, doubling its capacity to accommodate up to 16,000 tourists. (Photo Prensa Libre: Erick Avila)
A thousand-room hotel with an exhibition area for large events and business conventions. An runway to improve air connectivity to a destination that has been difficult to access by vehicle. The expansion of the Xocomil water park and the development of the Takalik Abaj natural and historical sanctuary are part of the projects that the Guatemágica development hub plans to implement over a five-year period, with the aim of attracting more domestic and international tourism.
In 2024, Retalhuleu ranked as the second most visited destination in the country, after Antigua Guatemala, according to records from the Guatemalan Tourism Institute (Inguat), displacing traditionally established destinations such as Tikal and Panajachel. This department is recognized for its potential as a multi-destination, according to the consensus of the sources consulted, due to its theme parks and archaeological sites. It is also part of Guatemágica, a tourist hub offering nature, Mayan culture, agrotourism, sun, and beaches. What roadmap should the executive branch follow in conjunction with private investment projects?
World-class convention center
Currently, the Workers' Recreation Institute (Irtra) has a convention center with a capacity for 1,000 people. However, Claudia Schwartz, secretary of the Guatemala Convention Bureau, believes that a larger center with state-of-the-art technology is needed.
In addition, Guatemágica “has grown exponentially in recent years, so having a new convention center would create more demand, not only for the area, but also for all the businesses around it,” explains Schwartz.
Rolando Schweikert, president of the Guatemalan Chamber of Tourism, estimates that each tourist spends between US$50 and US$80 per day in this region. Promoting this type of tourism with new infrastructure would have the potential to attract visitors from El Salvador, southern Mexico, and Honduras.
A convention can generate up to US$1 million in a week, according to Schwartz's estimates. These types of events boost the development of the tourist hub, as they benefit not only the Irtra parks, but also the hotels and restaurants in the area, he points out. For example, María Mercedes Rabanales, a member of the Guatemágica board, an initiative that promotes Retalhuleu as a tourist destination, estimates that 40 years ago there were only five hotels in this region, while today there are more than 80.
One of the upcoming projects in the area is a new convention center at Irtra. According to Ricardo Castillo Sinibaldi, president of that entity, this infrastructure would have the capacity to accommodate 15,000 people. It will be built on a 12-block site and is expected to host exhibitions, conferences, and entertainment events, as well as having access for trucks to facilitate the transport of goods for exhibitions.
According to Claudia Schwartz, in order to host large events, this convention center must have state-of-the-art technology, that is, it must integrate trends related to artificial intelligence. "People have so many distractions that, at a convention, they need everything necessary to capture their attention. There is also the issue of experience. We are providers of experiences within the tourism and conference and convention industry. We have a responsibility to train staff so that these experiences are unique," she emphasizes.
With a convention center of this size, there is a need to expand the accommodation options. Castillo Sinibaldi points out that convention participants "usually don't come alone; they bring their families, advisors, or guests. Therefore, they require more accommodation.“ Along these lines, Castillo Sinibaldi plans to build a hotel with up to 1,000 rooms. ”That requires other services: more swimming pools, more attractions, bars, and restaurants. All of this will grow in proportion," he adds.
Expansion of Xocomil
Another type of tourism that has grown in the area is amusement parks. The third project on the list, already underway, is the expansion of Xocomil Park to cover an area of 10 blocks. Castillo Sinibaldi projects that, with this new area, tourist capacity will double and could reach 16,000 people.
Connectivity plays a key role in making this increase in visitors possible. Another project underway is an aircraft runway, with the aim of “transporting people from the city to our park (Irtra) so they can come directly. These are essential communication routes for an area to develop,” says Castillo Sinibaldi.
This project is designed for tourists visiting Irtra. However, Guatemágica requires an international airport, which, according to Castillo Sinibaldi, could be ready in no less than five years. This requires the government's collaboration to build an airport in this region that will allow direct flights from El Salvador, Costa Rica, Panama, or any other country to Retalhuleu. “It requires a large amount of land, which must be found and developed. We are in contact with the government and the private sector to evaluate the possibilities,” said Castillo Sinibaldi.
Beach tourism: unfinished business
Around these parks there are other smaller tourist attractions, some private and others public, such as beaches. Champerico stands out in Guatemágica. However, it has not received the necessary boost and, currently, “for Salvadoran and Costa Rican tourists, or even for national visitors from the capital, it is still not a recognized destination,” Schweikert assesses.
According to the Guatemágica initiative, after amusement parks, beaches are the second most sought-after tourist attraction for visitors. Despite their potential, Rabanales points out that “we have not developed any projects in Guatemala where beaches have significant tourist value. The Guatemalan government has not invested in creating boardwalks, restaurant areas, parking lots, or hotel spaces.”
He emphasizes that fishing and surfing are two activities that could be promoted in the sector. To take advantage of the potential of this type of tourism in the region, a clear vision and “joint work at the state and private sector level with a macro perspective” are needed. Otherwise, it will be difficult to make progress, says Rabanales.
Ten years ago, Castillo Sinibaldi presented a plan to develop the beach; however, the Champerico authorities did not accept it. This project included the construction of a boulevard, a pier, restaurants, and hotels. Another point in this plan was that “on the dock side, boat and yacht services would be provided for fishing activities, while on the right side, a surf club could be built to attract visitors,” explains Castillo Sinibaldi.
Mayors: More security and infrastructure
William Valiente, mayor of San Felipe, Retalhuleu, agrees on the urgency of improving air connectivity in the area through an airport, indicating that Mazatenango is being evaluated as a possible site for its construction. Regarding road infrastructure, he points out that in San Felipe, “we have quite a few alternate routes that are not in good condition in winter, as they are dirt roads, and they connect with the municipality of San Francisco,” which is why they need to be paved or asphalted.
With the private highway under construction in Xochi, one of Valiente's concerns is that “by relieving the traffic chaos from San Antonio, Mazatenango, and Cuyotenango at Finca Los Brillantes, we will have it here in the department of Retalhuleu, in the area known as El Zarco, in the coming months.”
Meanwhile, Pablo Villatoro, mayor of Retalhuleu, points out that promotion is another necessity for positioning Guatemágica on the international tourist map. He adds that this region has iconic attractions such as water parks, archaeological sites, and beaches, but getting there is difficult due to the lack of roads, poor maintenance, and lack of signage on existing roads. “We need more security in places like Champerico and Tulate, which are beaches that belong to Retalhuleu,” says Villatoro.
Connectivity challenges
While the projects seek to prepare Guatemágica for international tourism, mobility remains a challenge in this area. According to Rolando Schweikert, president of the Guatemalan Chamber of Tourism, “normally in Guatemala the distances are not so long, but often the destination of Retalhuleu is not promoted because of the state of the roads.”
The Guatemalan Chamber of Tourism and the Guatemalan Convention Bureau agree that roads are the priority. "We would like the roads to be four lanes. When it comes to organized groups, they have very tight schedules, and it's not acceptable that the trip takes us seven or eight hours on a Friday, but on Sunday, if we leave at seven in the morning, it takes us three and a half or four hours," says Schweikert.
Travel time has an impact on the length of tourists' stays. Rabanales estimates that “of the three days they should stay at the destination, they basically reduce it to one or one and a half because of the travel time. It's not that they stop coming, but they start staying fewer nights, which hurts us because they consume less in the area.”
In the case of conventions, the length of the trip can make the difference between holding the event in Guatemala or looking for another destination. “If it's a three- or four-day convention, they might be able to make the trip, but for shorter conventions, the challenge is greater because spending so much time on the road often discourages people from organizing their conferences, conventions, or meetings in those places, and they opt for closer locations,” argues Schwartz.
Currently, a private road project known as Xochi is under development, which seeks to reduce travel time in this area to 30 minutes for a distance of 31 kilometers, for which a toll will be charged. This highway will also guarantee safety for those who travel on it, a key aspect for tourism in Guatemágica, as it is a “destination designed for families, groups of five, four, or eight people who come to stay overnight and share. So, if you are traveling with children, safety is essential,” Rabanales emphasizes.
However, Schwartz believes that the government should improve roads to facilitate access to all destinations in the country. "Guatemala is a destination that we have always promoted for conferences and conventions, highlighting that it is small but rich in attractions. The problem is that, at this time, being ‘small’ in terms of travel means that it takes four hours to reach a destination that is 200 or 250 kilometers from the capital.
In addition to roads that reduce travel times, Guatemágica requires flights, both domestic and international. "Air connectivity is extremely important. Having low-cost airlines or flights would be very beneficial, as it would make it easier to develop this area as a tourist hub," says Schwartz.
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