tourism sector investment opportunities

REPUBLIC OF HONDURAS NATIONAL INVESTMENT PROMOTION PROGRAM

TOURISM SECTOR INVESTMENT OPPORTUNITIES HONDURAS IS OPEN FOR BUSINESS

April, 2011

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TABLE OF CONTENTS I. Honduras Tourism Potential ...................................................................................... 1

A. Relevant Topics .......................................................................................................................................................1

B. Competitive Advantages .......................................................................................................................................1

C. First Class Tourism Attractions ..........................................................................................................................1

D. Opportunities ..........................................................................................................................................................1

II. Honduras in the Heart of America ........................................................................... 2 A. Modern Infrastructure ...........................................................................................................................................2

1. Airports ............................................................................................................................................................................. 2 2. Telecommunications ...................................................................................................................................................... 3

B. Tourist Services Plant ............................................................................................................................................3

C. Accommodation Supply .........................................................................................................................................3

D. Skilled Human Capital ............................................................................................................................................3

III. Demand Conditions ..................................................................................................... 3 A. Regional Context ....................................................................................................................................................3

IV. Tourism in Figures ........................................................................................................ 4 A. Visitors ......................................................................................................................................................................4

B. Tourists .....................................................................................................................................................................4

C. Currency ...................................................................................................................................................................4

D. Tourist Seasonality .................................................................................................................................................5

E. Purpose of Travel ...................................................................................................................................................6

F. Tourist Stay and Spending .....................................................................................................................................6

G. Currency Generator ..............................................................................................................................................6

H. Forecasts ...................................................................................................................................................................7

V. Supply Conditions ......................................................................................................... 7 A. Tourism Attractions Supply ..................................................................................................................................7

B. Sun and Beach Tourism, Diving and Sailing .......................................................................................................7 1. Caribbean Coast ............................................................................................................................................................. 7 2. The Bay Islands ................................................................................................................................................................ 8

C. Nature and Adventure Tourism ....................................................................................................................... 10 1. Our small Amazons: The Mosquito Coast .............................................................................................................. 10 2. Tourism-oriented protected areas ........................................................................................................................... 10

D. Cultural Tourism ................................................................................................................................................. 10 1. Archeology ..................................................................................................................................................................... 10 2. Colonial Cities ............................................................................................................................................................... 11 3. Living cultures ................................................................................................................................................................ 12

E. Tourism Fairs, Conventions, Incentives and Events ..................................................................................... 12

F. National Strategy for Sustainable Tourism (ENTS) 2021 ............................................................................ 12 1. Regionalization, according to the priority established in the ENTS .................................................................. 14 2. "Adventure" Tourism ................................................................................................................................................... 14

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VI. Honduras is Open for Tourism Investment ......................................................... 15 VII. Legal Framework for Foreign Investment ............................................................. 15

A. Constitution .......................................................................................................................................................... 16

B. Law for the Promotion and Protection of Investments .............................................................................. 16

C. Law for the Promotion of Public-Private Partnerships ................................................................................ 17

D. National Hourly Employment Program .......................................................................................................... 18

E. Honduran Tourism Institute Law ..................................................................................................................... 19

F. Tourism Incentive Law ....................................................................................................................................... 20

G. Law on Acquisition of Urban Assets ............................................................................................................... 20

H. Law for the Protection of the Nation’s Cultural Heritage ......................................................................... 21

I. Free Tourist Zone Law of the Department of the Bay Islands .................................................................. 22

VIII. ZOLITUR Management ............................................................................................. 22

IX. Related Entities ............................................................................................................ 23

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I. HONDURAS TOURISM POTENTIAL A. RELEVANT TOPICS

Located in the heart of the American continent, surrounded by the Caribbean Sea and Pacific Ocean, and bringing together the Americas, Honduras is the best kept secret in Central America.

B. COMPETITIVE ADVANTAGES

The following:

a) Less than two hours away from the main issuing markets b) Only country in the region with resources and infrastructure geared to Caribbean ocean coastline. c) Four international airports. d) Access to two oceans: Atlantic (The Caribbean) and Pacific (Gulf of Fonseca). e) Greater diversity of attractive features in the region. f) Great weather most of the year. g) The Bay Islands is the Cruise destination with the highest growth levels in the Caribbean and one of the five

best diving destinations worldwide. h) Equal treatment and incentives for foreign investments. i) Respect for tourism projects sustainability criteria. j) Presence of the main international chains.

C. FIRST CLASS TOURISM ATTRACTIONS

The following:

a) More than 650 (404 miles) of white sand beaches with the exuberant Caribbean nature. b) Part of the Meso‐American Coral Reef, the second largest in the world. c) Copan Ruins and the Rio Plátano Biosphere were declared as "World Heritage" by the UNESCO. d) More than 100 protected areas (27% of the national territory) e) Presence of nine "live cultures", highlighting the Garifuna ethnic group considered by UNESCO as "Intangible

Cultural Heritage".

D. OPPORTUNITIES

The Following:

a) State Policy favoring foreign investment in the tourism sector projects. b) Development strategy for the tourism sector to 2021. c) Fiscal incentives at the sectors, and an appropriate legal framework. d) Authentic destination with a diverse supply, congruent with new international market traveling trends

(culture, adventure tourism and geo‐tourism). e) The Bay Islands, is the most consolidated destination, designated as a Free Tourism Zone, it offers a number of

unique fiscal incentives in the region. f) Increasing interest of international organizations in supporting the tourism sector as a development and

economic growth tool. g) Diversified investment projects portfolio of private developers and financial institutions looking for joint

ventures. h) Basic structure to promote the decentralization of tourism management at the municipal level, in those

regions with the greatest tourism potential.

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In addition, small airports have been planned to respond to the requirements of the tourist towns, among which Tela and Trujillo.

2. Telecommunications

Honduras is connected to the world through the most advanced communications networks in the region such as Energia 1, Maya 1 and Arcos. The tourist areas have good access to the internet and mobile phones, through three international and one national supplier which cover most of the country.

B. TOURIST SERVICES PLANT

Honduras has a range of approximately 8 000 tourist service providers, including over 5 000 food and beverage establishments, and major international chains of restaurants with a wide and varied local and international cuisine.

Among tourism service providers, are the major car rental companies and local and international tour operators, as well as diving centers that provide certifications recognized worldwide. Also, a modern fleet of long distance transportation connects the major tourist destinations in the country and the region, operating with international standards.

C. ACCOMMODATION SUPPLY

As a whole, there are in Honduras a total of 949 accommodation establishments with approximately 20,000 rooms and 33,000 beds. Tegucigalpa, San Pedro Sula, La Ceiba, the Bay Islands and Copan concentrate 70% of the accommodation establishments in the country, with approximately 22,000 beds available. Prestigious international hotel chains such as: Marriott, Hilton, Intercontinental, Crowne Plaza, Holiday Inn and Clarion are present in major cities.

D. SKILLED HUMAN CAPITAL

Honduras has an Economically Active Population (EAP) of 2.7 million inhabitants and the literacy rate in the main cities is 91.6%. The workforce is young and talented with competitive salaries. There are a large number of bilingual schools of great prestige at the Central American level, as well as 122 vocational schools and 30 universities.

There is a wide supply of education centers specialized in tourism. There are 50 public and private schools, in the main urban centers of the country, which have a Tourism and Hotel Operator High‐school Degree.

Universities offer a variety of degrees in Tourism Business Administration, Eco tourism, Hotel Operation and Tourism. There are also 7 centers that offer different sector related postgraduate programs. At the level of Non‐Formal Education, the National Vocational Training Institute (INFOP) has national coverage in the areas of tourism training and skills.

III. DEMAND CONDITIONS A. REGIONAL CONTEXT

In 2009, 7.6 million tourists visited the Central American region, representing a global market share of 0.9% and 7.4% decrease compared to 2008. In 2009, Honduras captured 11.4% of total arrivals to Central America.

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According to the World Tourism Organization (UNWTO), during 2000‐2008, the arrival of tourists to Central America has shown a positive trend, standing out as the fastest growing sub region in the Americas.

Like other regions of the world in 2009 the Central American region was affected by different international events, however, according to WTO estimates, Central America will regain its upward trend as from 2010. In general, in 2009 all countries in the region reported a decrease in the number of tourists, except Nicaragua, which shows an increase of 8.6%. The country reporting the highest percentage of loss in the region is El Salvador (‐21.2%), followed by Guatemala (‐8.9%) and Costa Rica (‐8%).

IV. TOURISM IN FIGURES A. VISITORS

In the last decade (2000‐2009), the arrival of visitors to Honduras has shown an average annual growth of 10%. In 2009, despite the global recession and domestic political crisis, the number of visitors grew by 2.0%, amounting to a total of 1.6 million visitors, from which 867,000 tourists and 754 guided tour visitors.

According to preliminary figures for 2010, the arrival of visitor shows an approximate increase of 28.2%, mainly due to the elevated growth in cruise passenger arrivals (86.6%), which is attributed to the opening of the new Mahogany Bay cruise pier, which together with the Port of Roatán received more than 800,000 cruise passengers, positioning Roatán as the fastest growing destination in the Caribbean.

B. TOURISTS

During the 2000‐2008 period, tourist arrivals showed an average annual growth of 8.4%. In 2009, tourist arrivals were affected by the global economic crisis, uncertainty about the H1N1 virus and the country's political developments during the second half of this year. Result of the above, there was a decrease of 3% in the tourism segment. Nonetheless, this figure shows a rise of 85% over the total number of tourists received in 2000, which shows the sector has been growing steadily.

Of all the tourists entering the country in 2009, 51% did so by land and 45% by air. The region that contributes most tourists to Honduras is still Central America, which accounts for 46% of the market share; followed by North America, with 39% of the total amount of tourists, which are mainly from the United States.

The estimates for 2010, forecast a recovery of 3.0% compared to the previous year, which would represent the arrival of 895.600 tourists to the country.

C. CURRENCY

Foreign exchange earnings in tourism sector are another indicator of the growth experienced since 2001. It is estimated that in 2010 tourism generated approximately U.S. $ 650 million.

Comparing the generation of foreign currency from the tourism sector to the total exports of the country shows that in 2009 the turnout was 10.2%, with a clear improvement compared to the participation they had in 2008 which was 8.5 %.

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Source: Honduran Tourism Institute

E. PURPOSE OF TRAVEL

The main reason for travel reported by tourists responding to the Survey of Tourist Profile and Spending was "Visiting Friends" (32.5%) followed by "Recreation and Leisure Holidays" (30.0%) and "Business" (22.2%). 57.7% reported having stayed in a hotel and 35.9% reported having stayed with friends or relatives.

The most popular activity was "Visiting friends and relatives" (24%) followed by "Beach activities" (14.6%) and "job or business" (13.7%). The most liked aspect was "people friendliness" (25.3%). As for the intentions of returning to the destination, 97.5% answered "Yes" to would you return to Honduras.

F. TOURIST STAY AND SPENDING

Stays reported by tourists indicates that 36% of tourists stayed overnight between 1 and 3 nights and 28% reported between 4 and 7 nights. The major cities where tourists stayed overnight at least one night are: Tegucigalpa, San Pedro Sula, Roatán Island, Copan Ruinas and La Ceiba.

In the past 5 years, the average cost per stay for tourists has shown a stable trend, reporting costs between $ 620 and $ 670 per person. For 2009, the average spending per stay per person was U.S. $ 656.30.

According to the indicators of the Honduran Institute of Tourism (IHT), the structure of stay of inbound tourism for 2009 shows the following behavior:

a) Business travel is mainly made up of Central American tourism. The stay structure indicates that about 83% of Central Americans overnight from 1 to 7 nights.

b) Stay the same pattern applies to European tourists, of which 59% overnight from 1 to 7 nights developing leisure activities within the circuits’ multicasts in Central America.

c) In the case of American tourists, the most relevant market niche is leisure tourism, with 59% staying from 1 to 15 days in Honduras.

G. CURRENCY GENERATOR

Tourism is one of the main sectors in terms of foreign currency generation. Since 2001, the tourism has remained as the third‐largest foreign exchange generating sector.

Main Foreign Exchange Generators, years: 2005 -2009 (Million of US$)

Items 2005 2006 2007 2008 2009 p/ 09/08

Relative Variation

Income from remittances 1,775.8 2,328.6 2,580.7 2,807.5 2,475.7 ‐11.8%

Maquila 1,074.1 1,083.4 1,060.7 1,277.1 974.4 ‐23.7%

Tourism 465.8 516.0 546.2 620.4 616.0 ‐0.7%

Coffee 366.3 425.8 518.3 620.2 531.5 ‐14.3%

Bananas 260.3 241.4 289.3 383.8 327.1 ‐14.8%

Palm Oil 56.3 74.8 121.2 465.8 125.4 ‐39.0%

Farmed shrimp 124.5 156.4 120.3 99.0 112.9 14.0%

Soaps and detergents 42.5 45.9 43.9 52.4 4 ‐7.6%

Woodwork 40.8 32.1 40.0 29.8 23.5 ‐21.0%

Source: Honduran Institute of Tourism, Central Bank of Honduras.

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H. FORECASTS

It is expected that as from 2011, the tourism sector will begin to recover. Growth forecasts for the period 2010‐2014 show an average growth in tourist arrivals between 3% and 4%. Similarly, it is anticipated that the arrival of cruise ships will continue with an average annual growth of 3%.

V. SUPPLY CONDITIONS A. TOURISM ATTRACTIONS SUPPLY

According to studies conducted by the Fund for Tourism Development in Mexico (FONATUR, in Spanish), Honduras is the only country in Central America that has the greatest diversity of tourist attractions, positioning it as the tourism destination with the highest potential.

Source: Fonatur

Among the most outstanding tourist attractions tourist attractions in Honduras are:

B. SUN AND BEACH TOURISM, DIVING AND SAILING

For the segments of sun and beach, diving and sailing, Honduras offers more than 650 miles of pristine white sand beaches and crystalline water on the Caribbean coast. Additionally, the Bay Islands, which are surrounded by the second longest reef barrier in the world are listed among the best destinations for scuba diving and snorkeling. In particular, the island of Roatán is the fastest growing cruise destination in the Caribbean.

The Bay Islands and the Caribbean Coast are currently the most visited tourist attractions for both nationals and foreigners. According to the 2021 National Tourism Strategy both destinations are considered a high development priority and undoubtedly have great potential for domestic and foreign investment.

1. Caribbean Coast

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Along the Caribbean coast, lie the coastal towns of Puerto Cortés, Tela, La Ceiba and Trujillo that witnessed the golden age of the banana companies, whose influence can still be admired in its buildings, in addition to a variety of natural and cultural attractions. It also has the necessary infrastructure to attract foreign investment.

In the vast and still unexplored Honduran Caribbean, you can admire kilometers of white sandy beaches that together with rivers, lakes and canals are part of several national parks and wildlife refuges with exuberant wild life and nature. According to new market trends, the ability to combine sun and beaches, with first‐class nature, make this region the most attractive to attract the increasing demand of international tourists.

The Honduran Caribbean coast is the attraction with the greatest economic and social potential; therefore, the National Sustainable Tourism Strategy 2021 lists it as the main priority for short term development.

Major mixed‐use tourism projects, with mixed capital are currently being developed in the Caribbean region. In the city of Tela, "first fully planned‐CIP center" is being developed, which includes the Tela Bay project (under the trade name "The Micos Beach & Golf Resort"), funded under a public‐private scheme and considered as a successful example in this financing modality. The government is moving forward in urban improvement programs that include basic and tourist infrastructure as part of this tourist resort in the Caribbean Honduras.

With an investment of US$104 million and in its second phase of implementation, the commercial project Tela Bay has 311 hectares of land and 3.2 km of pristine beach, located in the buffer zone of the Janet Kawas National Park. Among its components, a mixed‐use resort is considered, which includes a 5‐star Boutique Hotel & Spa (60 rooms) and 30 condominiums managed by the hotel, totaling 120 keys, a "World Class" golf course PGA (Professional Golfers Association) level designed by the renowned international firm Gary Player, villas and home sites, among others.

Also in La Ceiba and Trujillo, private projects will be developed with foreign capital, directed to second home tourism, as well as new mixed‐use tourist resorts protects that offer present opportunities for joint ventures.

2. The Bay Islands

The Bay Islands are an archipelago made up of three main islands (Roatán, Utila and Guanaja) and over 60 smaller islands and keys. Located about 30 miles of the north coast, surrounded by the second largest reef in the world, these islands are considered a tropical paradise for anyone seeking a true Caribbean experience, and as the preferred destination for tourism of second residence.

Roatán

Roatán is the largest of the three islands. It is divided into two municipalities: Roatán and Santos Guardiola. It has the largest infrastructure: Juan Manuel Gálvez International Airport, a road network that traverses the island from east to west, water and sanitation in the main towns, telephony and internet access.

In past decades, Roatán was exclusively known as the diving destination par excellence and as a “Certified destination for golf lovers from all over the world. However, recently its activities have diversified to the cruise industry, tourism, second homes, as well as marine tourism and seaside tourism.

Roatán has two first class cruise ship piers, financed and operated by the main cruise lines in the world: Royal Caribbean Cruise Line (RCCL) ‐ Port of Roatán (developed under the framework of Public‐Private

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Partnership (PPP) and Carnival ‐ Mahagony Bay Port (funded by the company and local investors). The cruise industry has a positive impact on the economy of the island, which is today one of the major growth cruise destinations in the Caribbean.

This has allowed the development of a wide range of high quality tourist activities that include: a golf course, adventure tourism activities, cultural and entertainment activities for visitors and tourists who enjoy the island as well as opening of new resorts.

In the northwestern part of the island of Roatán, the Municipality of Santos Guardiola, presents great opportunities for investment in high‐level resorts and boutique hotels. At present, there are plans to build a mega marina for yachts to service the luxury yachts segment and to be listed as a sailing destination in the Western Caribbean (Mexico‐Panama). Finally, there are a number of hotel and residential projects in pre‐feasibility and / or construction phases which offer excellent opportunities for joint ventures.

Guanaja

History records that Guanaja was named by Christopher Columbus on his fourth and last voyage. It was named Isla de los Pinos (The island of Pines). For its undeniable beautiful landscape, where green mountains with pine forests, (reaching altitudes of up to 500 meters (1641 feet) high) contrast with stunning white sand pristine beaches surrounded by an unexplored coral reefs Guanaja is the best kept secret in the Caribbean.

Infrastructure‐wise, Guanaja has an air terminal and in the short term basic infrastructure projects will be developed. The people of Guanaja move from one place to another on the island by small boats, since there is no infrastructure, which makes it more attractive for tourists.

In recent years, luxury chains such as Aman Resorts, Banyan Tree Resort, Raffles, to name a few, have expressed interest in developing 5 stars and/or boutique hotels under joint venture and/or administration schemes. Resorts projects with market research and feasibility studies are co‐investment opportunities.

Utila

Located less than 31Kms (19 miles) from the Caribbean coast of Honduras, north of La Ceiba, Utila is the smallest of the Bay Islands. The island of Utila is world famous for the quality certification of its diving establishments which offer guarantees and top international standards at competitive prices. Its beauty and richness in coral reefs attract thousands of tourists every year. Utila is also distinguished for being one of the few places world‐wide, ideal for viewing the majestic whale shark, all year‐round.

Cayos Cochinos

Located at 14.5 km (9 miles) northeast of the port of La Ceiba, the Cayos Cochinos Archipelago, a group of two small islands (Cayo Menor and Cayo Mayor) and eleven sand cays that are part of the Bay Islands region.

Since 1993, the Foundation for the Protection and Conservation of Cayos Cochinos, HCRF "works in this area and has joined forces with several Honduran and foreign entrepreneurs. The Smithsonian Institute (STRI), the World Wildlife Fund (WWF) and Marviva have promoted major projects in these keys, as well as the AVINA Foundation from Switzerland, under the leadership of Stephan Schmidheiny.

There are sufficient alternative activities for anyone who does not practice diving to spend some unforgettable days in the Keys. The Garifuna community in Cayo Chachahuate the possibility of discovering the richness of this ethnic group with unique cultural and culinary demonstrations.

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The Bay Islands as a whole make up a consolidated world‐class destination that offers fantastic opportunities for foreign investment considering the incentives granted by the Bay Islands Free Tourist Zone Law.

C. NATURE AND ADVENTURE TOURISM

Honduras is characterized by its great diversity, as it has over 100 protected areas which represent 27% of the territory, and are home to about 64 varieties of plant ecosystems. These areas are divided into 15 national parks, 2 biosphere reserves and 10 biological reserves.

1. Our small Amazons: The Mosquito Coast

La Mosquitia is located northeast of Honduras, and is also known as the "Mosquito Coast". It is considered the second largest lung in the Americas, and therefore is called the "Little Amazon of Central America" where the Rio Plátano Biosphere is located, and which UNESCO declared "Patrimony of Humanity."

Due to the lush vegetation and great variety of wildlife that inhabits the area, this vast zone has become increasingly popular as a destination for adventure and ecotourism, but has very little infrastructure. Local airlines have regular flights to the region.

2. Tourism-oriented protected areas

The National Ecotourism Strategy defines at least 30 protected areas along the Caribbean coast that have the potential to develop in the short term, ecotourism and adventure tourism, among which are: Janet Kawas National Park and Botanic Garden Lancetilla in Tela, Pico Bonito National Park and Wildlife Refuge Cuero y Salado near La Ceiba, the National Park Capiro and Fever and Wildlife Refuge Lagoon Guaimoreto in Trujillo.

With regards to the strictly eco‐tourism attractions, Honduras meets a variety of natural environments:

a) The largest extensions of tropical forest in Central America, with largest most macro‐fauna in the region. b) Cloud forests in the central highlands of the country. c) Wetlands, mangroves and navigable rivers for bird watching in coastal areas. d) Turtle nesting beaches on both coasts. e) Archaeological sites and remains. f) Coral reefs and diverse marine biodiversity with spectacular landscape of falls (walls) of reefs, canyons and

caves. g) Underground caverns and caves on the mainland.

The National Park System presents a great opportunity to develop sustainable models of nature and adventure tourism within the boundaries of protected areas. Current trends in tourism (sun and beach combined with cultural experience and the proximity of nature) are consistent with the National Ecotourism Strategy; therefore, state resources are invested in the conservation and enhancement of protected areas in a sustainable manner so that tourism will become the perfect complement to fund conservation, reforestation and carbon sequestration projects.

D. CULTURAL TOURISM

1. Archeology

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Copan Ruins Located in the heart of the Copan Valley is considered the major source of information about the ancient Maya civilization. The site was declared "World Heritage" by UNESCO.

Since its emergence, about 2.000 years BC, the Maya developed a sophisticated civilization, a society of scientists, architects and sculptors highly creative and a ruling class that honored the life and achievements of their kings. Along the Copan Valley are remnants of this great civilization that reached its peak between VI‐VIII centuries AD.

In the world of Maya archeology, Copan is known as "the Athens of the New World" because it is considered the artistic crowning achievement of the Maya World because of the extraordinary artistic quality of its many high‐relief sculptures. Maya Civilization scholars often say that if "Tikal in Guatemala, with its tall temples can be compared to New York, Chichen Itza because of its size to Buenos Aires, then, Copan would be Paris."

Coupled with the fact of having the most elaborate stone sculpture, Copán is also considered the site which has been studied the most by renowned institutions such as Harvard University and organizations such as National Geographic. Copán Ruinas is an exceptional place in the world of archeology and the one that has contributed the most to a better understanding of Mayan Culture.

Copán Ruinas offers excellent accommodations, emphasizing its unique boutique hotels, a wide range of local cuisine and organized tours that include a variety of activities: horseback riding, bird watching, visits to ecological reserves, visits to tobacco farms and Chortís villages, to name a few.

Among the priority projects of tourism infrastructure can be highlighting the construction of an airfield to convert Copan into a distribution center to attract visitors to the Mayan World. According to the forecasts, this infrastructure will increase the number of visitors to Copan, and at the same time will serve as a hub to other places in the west region of Honduras.

The circuit includes a first‐class nature component: Celaque National Park, "living cultures" throughout the Lenca Route and authentic colonial towns such as: La Esperanza, Gracias and Santa Rosa de Copan.

2. Colonial Cities

Three hundred years of Spanish colonial history in Honduras have left their mark on the many religious, civil and military buildings. More than a hundred churches with elaborate reliefs and their rich interior imagery, silverware and paintings speak for themselves of the important mining exploitation of the old Province of Honduras.

Comayagua, Ojojona, Yuscarán, Tegucigalpa, Trujillo and Gracias are some of the best examples of this heritage. Among the Spanish castles and fortresses are San Fernando de Omoa in Omoa, Santa Barbara in Trujillo, and San Pedro in Gracias.

Scattered throughout in the mountainous landscape of the highlands of Honduras, are dozens of colonial towns and villages populated by the colorful and traditional Lenca culture. In the central squares of these villages you can see Spanish churches, dating back from half a millennium ago up to the early days of conquest.

Among the most picturesque localities, and located in central Honduras, one‐hour drive from Tegucigalpa, is Comayagua, the best preserved colonial city of Honduras. The town of Gracias, one‐hour drive from Copan Ruinas, was between 1544 and 1548 the government headquarters of Central America, since the Audiencia of the Confines settled there.

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Amid the cities that can be visited in the main tourism circuits are: Santa Lucia, Valle de Angeles and San Juancito, which surround Tegucigalpa, offering a broad show of local cuisine, handicrafts and historic heritage known as the Route of the Royal Mines. For its part, Tegucigalpa and its historic center has an interesting offer that is quite representative of our Spanish colonial heritage.

3. Living cultures

Honduras has nine (9) ethnic indigenous, black and white origin groups that show an interesting culture expressed in their crafts, folklore and in a particular way, their relation with nature. The Garifuna and Miskito occupy large areas of national territory; however, the Tawahka, Pech and Tolupan have been greatly reduced, while the Lenca, the Chorti and islanders complete the ethnic overview of the Honduran population.

80% of the Garifuna community is scattered in dozens of villages on the Caribbean coast. Their unique language, percussion drums, the voices of their songs, and exotic dances such as Punta revive the ancient traditions that originated in Africa.

The Lenca are the largest indigenous group in Honduras. Their territory covers both the west and southwest. While some of the Lenca words and names of places endure in the Lenca Languages, their traditions still prevail. A part of their traditions are the way they build their houses, their techniques to grow corn and beans, their traditional cuisine, pottery and colorful woven baskets, hats and mats, among others.

E. TOURISM FAIRS, CONVENTIONS, INCENTIVES AND EVENTS

The cities of Tegucigalpa, San Pedro Sula and La Ceiba have the capacity to organize conventions and events, as they offer world‐class facilities, a wide range of hotels, and professional event organizers, as well as all the required services. On that matter, the IHT runs the Conventions and Visitors Bureau of Honduras that serves as the primary contact for the organization and promotion of events of this nature.

F. NATIONAL STRATEGY FOR SUSTAINABLE TOURISM (ENTS) 2021

Honduras has been blessed by an extraordinary natural and cultural heritage: the Bay Islands, bordered by the second largest coral reef in the world, Copán, considered the "Athens of the New World”, Caribbean beaches of incomparable beauty, exuberant nature, colonial cities and "living cultures" all in an authentic cultural environment.

Honduras has enormous tourism potential to discover as a destination for foreign investment.

Tourism in Honduras is based on respect for the natural, cultural and social environments, which contributes to strengthening its national identity. The National Strategy for Sustainable Tourism (ENTS) rather than proposing a long‐term tourism plan, provides a sustainable tourism development model, with a philosophy that impacts all levels of society in the different regions of the country, according to the role of tourism as a productive and economically profitable, and environmentally responsible activity, inclusive and able to promote and consolidate investment opportunities.

The ENTS presents an array of product development, setting the priority level as well as the strategic approach for each one:

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Matrix Product Development

As noted, the strategic direction is aimed at making of the Caribbean coast the main driver of tourism in Honduras, developing Integrally Planned Centers (CIP) with sufficient infrastructure and accommodation supply. These CIP will serve as "hubs" to other destinations in the country. The strategy would allow attracting the traditional "sun and beach" tourism and offering attractive complementary activities of special interest that do not the critical mass necessary for their development, such as nature/adventure tourism.

Moreover, this will allow protecting the consolidated primary products that by their nature are bound to limits of acceptable change or load capacity, such as archeology, cruises and diving, which are at the growing stage and servicing special interest markets.

Consequently, the ENTS grants a high priority to the development of the Honduran Caribbean coast surrounded by lush nature, and offering a unique opportunity for investment.

Classification Location Current Status

Product Maturity

Type of Product Market Strategy Proposed Future Vision Priority

SUN & BEACH Honduran Caribbean

Primary Traditional Interest

Product Development Infrastructure and

equipmenti Transform it into

the“main engine” of Tourism in Honduras

" VERY HIGH

DIVING Bay Islands PRODUCT Consolidated/Mature

Primary Special Interest New markets Diversification and

penetration

Complementary Product since

Subject to acceptable load limit

HIGH

ARCHAEOLOGY Copan Ruinas PRODUCT Consolidated/Mature

Primary Special Interest

Diversification and New products developmen Cultural and nature

New markets penetration

Incorporation of cultural, nature and adventure

elements

HIGH

CRUISES Bay Islands PRODUCT Consolidated

Primary Special Interest

Diversification and Development new Products to service Segment and conso

lidate existing products

‐


Subject to acceptable load limit

HIGH

TOURISM BUSINESS

Tegucigalpa, San Pedro Sula and

La Ceiba

ATTRACTION In Development

Complementary

Traditional Interest

¨Product Development infrastructure Equipment and promotion

Incorporation new MICE segments

HIGH

NATURE Protected areas Selected as priority In

the National Eco tourism Strategy

ATTRACTION Incipient Development

Complementary

Special Interest

Development new Products, Equipment and infrastructure


subject to acceptable load limit

MEDIUM

RURAL TOURISM

West Zone ATTRACTION Incipient Development

Complementary

Special Interest

Development new Products, Equipment

and infrastructure

Incorporation of Cultural and nature And adventure

elements

MEDIUM

COLONIAL HERITAGE

Comayagua, Gracias, Ruta de Reales

Minas

ATTRACTION In Development

Complementary

Special Interest

Development new Products Equipment and

Infrastructure Development new

Products and Infrastructur

Incorporation of cultural, nature and adventure

elements

MEDIUM

Honduran Caribbean And West

Zone


Complementary Special InterestIncorporation of cultural, nature and adventure

elements

MEDIUM


LIVING CULTURES

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1. Regionalization, according to the priority established in the ENTS

Based on the regionalization established, the ENTS proposes a number of homogeneous areas in terms of natural and cultural attractions, tourism activities and products, as well as the type of supply, classifying them into short, medium and long term actions, as follows:

a) Short‐Term Development Zone: Bay Islands (Roatan, Utila and Guanaja) Honduran Caribbean, from Tela to Trujillo, and, the Maya, Copan Zone.

b) Medium‐Term Development Zone: Tegucigalpa and its Surroundings (Royal Mines Route and Indigenous Peoples), and San Pedro Sula.

c) Medium‐Long‐Term Development Zone: Yojoa Lake, the Lenca Area (La Esperanza and Gracias), Comayagua, Caribbean Ports( Omoa and Puerto Cortes) and the Gulf of Fonseca

d) Long‐Term Development Zone: The Mosquito Coast (Puerto Lempira) and La Mosquitia (from the Patuca River up to the Río Plátano Biosphere)

2. "Adventure" Tourism

From the global perspective, the 2010‐2014 Action Plan of the Tourism Department has prioritized both the effective promotion and repositioning of the country's image as the consolidation of products and developing new destinations in the major regions of the country as current trends in demand and the comparative advantages enjoyed by Honduras.

Priority Projects 2010-2014

Accessibility and connectivity Project:

Copan Maya Area: La Entrada, Copan Ruinas Santa Rita and

Improving land access to the Maya area.

Road Rehabilitation CA‐11 from the area of La Entrada, Santa Rita de Copan, Copan Ruinas.

Enabling Infrastructure for air access to the Maya area.

Regional Aerodrome construction to meet tourist traffic traveling through the Maya World

Honduran Caribbean (Caribbean Emerald) El Progreso, Tela, Trujillo

Improving Access Road to Esmeralda Caribbean

Feasibility and design study for the extension of the CA‐13 between El Progreso and Tela (4‐lane highway).

Improvement of the Port Infrastructure and Urban Image of Tourist Interest Cities (Cruise Ship Pier):

Improvement in port infrastructure in Tela, La Ceiba or cruise ship pier in Puerto Castilla and design and construction of waterfront / marine coastal walks.

The Bay Islands Infrastructure improvement in access to the island of Utila:

Construction of airport in Utila

The 2011‐2014 Tourism Plan aims to develop at least one municipality in each one of the regions of the National Plan that have tourist potential, with the purpose of these development areas becoming magnets for investment and triggered tourism development at the regional level.

For some of these poles are declared Special Tourism Development Regions and Free Zones for Tourism in order to establish models of tourism development. The intention is that some of these poles of development will become the regional triggers (in line with the proposals of the regionalization of the Nation Plan / Country Vision) for the development of tourism in Honduras.

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VI. HONDURAS IS OPEN FOR TOURISM INVESTMENT The 2011‐2014 Sustainable Tourism Plan Framework has identified several strategic actions that provide unique opportunities for tourism investment, either in terms of private investment schemes or under public‐private partnership (PPP). In this context, the 2011‐2014 Intervention Plan considers relevant actions related to interventions in infrastructure, they are classified as follows:

a) Accessibility and Connectivity b) Environmental conservation and tourism product development c) Enabling health facilities d) HR Training

Investment for the improvement of the access conditions to the Copan Ruinas Maya Zone, becomes a priority, both by land and by air considering the needs of access and connection to the other airports in Honduras and those operating in the Maya World Region (Mexico, Belize, Guatemala and El Salvador). This action should also be materialized in the Caribbean Emerald region, considering the rehabilitation of the highway between El Progreso and Tela, and improving access to the municipality of Trujillo, since this is what should be developed to accommodate the international tourists and domestic tourists that visit travel during the holiday season and high season.

The conditions of access by air to the municipalities of Utila, Guanaja and Trujillo present investment opportunities considering their strategic location and priority in the ENTS.

Environmental conservation and tourism product development

Region: Project:

Western Honduras, Lenca Zone: Municipality of Gracias

Highlighting the value of Celaque National Park.

Improved access road to the Celaque National Park and rehabilitation of the Visitors Center of the Park.

The ENTS and the 2011‐2014 Government Plan has prioritized 12 Tourism Municipality (Utila, Guanaja, La Ceiba, Tela, Trujillo, Santa Rosa de Copan, Gracias, La Esperanza, Choluteca, Danlí, Valle de Angeles, Juticalpa and Siguatepeque)

Enhancing the value and embellishment of charming villages in Honduras.

Small works and improvements to enhance the tourist value of the charming villages.

Implementation of Special Regions Tourism Development and Tourism Free Zones in tourism poles in Honduras

Honduran Caribbean coast

Development of new Integrally Planned Centers, under special regimes.

In this context, there are many investment opportunities in the tourism sector under private equity schemes or public‐private partnerships. (For more information ‐ Tourism Sector Project Link).

It is noteworthy to mention that the IHT has within its legal powers to constitute commercial joint ventures, which allow making available to private investors a series of projects that could be developed jointly through the provision of public goods and property. The IHT has also generated administrative capacity and experience in managing tourism projects in public‐private partnership, with successful results such as: the Tela Bay Tourism Development and the Cruise Ship Pier Port of Roatan.

VII. LEGAL FRAMEWORK FOR FOREIGN INVESTMENT The normative provisions on foreign investment in Honduras establish the regulations for foreign capitals. Attracting investment is a State priority.

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A. CONSTITUTION

The Constitution of the Republic of Honduras guarantees and promotes foreign investment, subject to state supervision. As economic activity under the investment process corresponds primarily for individuals, in which context, the State protects social interest. It contains several topics related to tourism such as conservation, restoration and maintenance of the anthropological, archaeological, historical and artistic wealth, as well as the protection of natural beauty, monuments and reserved areas and the preservation of native cultures, folk arts, the national crafts and folklore.

B. LAW FOR THE PROMOTION AND PROTECTION OF INVESTMENTS

(In process of being approved)

This law regulates and promotes local and foreign investment and defines the rights and obligations of all stakeholders: investors, workers and the State.

Guarantees:

a) Equal treatment to domestic and foreign investment b) Capital repatriation c) No expropriation of real estate and related property d) Unlimited access to foreign currency e) Trademark and patent protection

Tax Benefits:

f) Sales tax exemption applicable to imported or locally acquired goods. g) Up to 5 year amortization for some pre‐operating expenses. h) Accelerated depreciation of assets on the accounting records. i) “Priority interest” or “investment per region” projects will receive partial income tax exemption (between

60%‐80% of the invested amount) provided that they exceed the specified amounts.

What are Juridical Stability Contracts?

Investors who commit US$1.0 million will be guaranteed that the same tax conditions that they were granted at the time of the project development will prevail ‐for 15 years or more.

Dispute Settlement

Negotiation, settlement and arbitration, including dissertation in foreign languages and participation of foreign attorneys (not belonging to the Bar Association of Honduras), are part of the new investment regulatory framework. This regulatory framework addresses all cases which are subject to foreign jurisdictions.

The Role of New Technologies

The Law for the Promotion and Protection of Investments makes official the use of electronic means to process and file applications before governmental institutions, formalize contracts, make postings on the electronic portals of some state registry offices, and electronic signatures.

One‐Stop Investment Shop

The Law for the Promotion and Protection of Investments creates the “One‐Stop Investment Shop” to centralize the distribution of information, follow procedures, and render the required services to make an investment in Honduras.

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C. Law for the Promotion of Public-Private Partnerships

This law governs and regulates the public‐private participation contracting processes for the execution, development and management of public works and services.

What is Public‐Private Participation?

It is a strategic alliance ‐formalized in a contract‐ by which the State agrees to firm or contingent commitments, and its contributions may be:

a) Contributions in cash b) Technical studies c) Subscription of shares or purchase of other securities that can be negotiated in the financial market d) Assignment of goods of public domain (concessions without assignment of title) e) Granting permits and licenses to conduct the authorized activity f) Assignment of rights over State or Municipal property

Public‐Private Partnership

The Law for the Promotion of Public‐Private Partnerships establishes that the partnership will adopt the modality agreed by the Parties, such as:

a) Co‐investment (joint venture) b) For profit or non‐profit juridical persons c) Participation contracts d) Management contracts e) Trust funds f) Any other modality that may be suitable for the execution of the works and/or supply of services.

Risks

The risk and cost distribution that the Public‐Private Partnership implies should be agreed based on the specific needs of the alliance, and they maybe:

a) Financial b) Commercial c) Operating d) Risk imputable to unforeseen causes

Awarding Process

The Public‐Private Partnership is awarded after a simple process that considers the following two criteria: economic and technical. The economic criterion evaluates who renders the service with the lowest cost, who offers more benefits to the State, and who requires low co‐financing or small contribution from the State. The technical criterion only determines who meets the technical requirements.

Co‐partnership

The Law for the Promotion of Public‐Private Partnerships creates a facilitating institution: The Commission for the Promotion of Public‐Private Partnerships (COALIANZA). COALIANZA directly reports to the Presidency of the Republic and is responsible for the management and promotion of Public‐Private Partnership projects and processes.

In principle, projects to be executed under the Public‐Private Partnership modality should be part of the National Public Investment System, and have a feasibility study with cost‐benefit analysis and feasible funding methods that ensure their execution. The evaluation is conducted by COALIANZA. Prior to this

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evaluation, other public entities acting as initiators should request COALIANZA’s support for the formulation of projects in order to join the System.

Regulation, Control and Follow‐Up

Sector regulatory entities created by special laws will be responsible for the execution of works and supply of services through the Public‐Private Partnership modality. In the absence of a regulatory entity, the Superintendence of Public‐Private Partnerships created by the Law for the Promotion of Public‐Private Partnerships will be in charge.

Transparency

Public‐Private Partnerships are subject to a stringent transparency regime. The Law for the Promotion of Public‐Private Partnerships establishes that the financial and non‐financial risks, guarantees, future commitments and fiscal contingencies are determined by the Finances Secretariat (SEFIN) based on a fiscal risk analysis conducted by the National Commission for Public Credit. SEFIN also has authority to issue provisions to register the firm and contingent quantifiable commitments as well as the enforced guarantees.

D. NATIONAL HOURLY EMPLOYMENT PROGRAM

Promote programs and projects to increase employment opportunities by boosting the creation, increase, improvement and access to sources of employment for the neglected social sectors.

Objectives

a) Promote decent jobs. b) Promote workers education, training and formation. c) Take advantage of the use of the total installed capacity of the production units. d) Promote investment and employment among the private and public sectors.

Duration

The National Hourly Employment Program is an anti‐crisis program with duration of 3 years starting in the month of November 2010; however, this term can be extended.

Contracts and Modalities

Contracts for an indefinite term or for specific works or services can be:

a) Hourly b) Half daily, mixed or night shift. c) Ordinary full, daily, mixed and nigh shift.

The minimum work shift in the urban area is 3 hours/day and in the rural area is 2 hours/day. Any effective work outside a full shift is considered an extraordinary shift.

Which Production Units apply to the Program?

a) Production Units starting operations will be able to hire a number of employees not exceeding 40% of their permanent personnel.

b) Production Units with 1 to 15 permanent employees will be able to hire an equal number of workers. c) In Production Units that have signed a contract with a labor union, workers will enjoy the benefits of such

contract as they may apply, provided that they pay the corresponding fees.

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Companies will give preference to workers from vulnerable sectors and will hire 5% of the total payroll of permanent workers; in the case of companies or production units with 1 to 15 employees, such percentage will be up 10%.

Remuneration

It is defined based on two concepts:

a) Basic wage (per hour and not less than the minimum wage). b) Non‐customary compensation (equivalent to 20% of the agreed basic wage).

Workers’ Rights

Workers hired under the Program will have the rights established in the Labor Code, will be protected by the Law of the Honduran Social Security Institute and the laws concerning health, hygiene and safety of the Labor Code, and will be subject to the fees contemplated by the Law of the National Institute of Professional Formation.

Workers hired under the National Hourly Employment Program have the right to first option to cover a permanent position open in the companies or production units included in the Program.

Competent Entity and Coordination

The Secretariat for Labor and Social Welfare is responsible for monitoring and controlling the execution of the National Hourly Employment Program. It will also chair the Follow‐Up Commission that is formed by 3 representatives of the Workers’ Confederation and 3 representatives of the Honduran Council of Private Enterprise.

Financial Resources and Training

The Technical Secretariat for Planning and External Cooperation will provide support to the Secretariat for Labor and Social Welfare for obtaining resources to train the workers included in the Program.

E. HONDURAN TOURISM INSTITUTE LAW

Creates the Honduran Tourism Institute (IHT) as the permanent entity responsible for fostering and promoting tourism as an economic activity for the country's development through the conservation, protection and rational use of tourism resources.

Functions

a) Develop and implement the national tourism policy b) Assist public and private entities that provide tourist services c) Promote tourism and the promotion of domestic and foreign tourism demand d) Regulate and supervise the provision of tourism services e) Monitor and control the Tourism Development Fund f) Promote and develop national identity g) Promote the establishment of hotels, lodges, inns, restaurants, transportation systems, and related fields. h) Protect and assist tourists

The National Tourism Council

The Law of the Honduran Tourism Institute (IHT) establishes the National Tourism Council which is responsible for approving all operational aspects of IHT

The Tourism Development Fund

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Its goal is to participate in the promotion and development of tourism according to the Tourism Development Plan and to establish funding mechanisms for the tourism sector.

The IHT promotes the declaration of Tourism areas and the creation of tourism businesses.

It is also responsible for establishing the requirements for Tourism Service Providers and the National Tourism Registry .

F. TOURISM INCENTIVE LAW

Promotes the Development of tourism supply‐through the assignment of tax incentives to Increase the participation of domestic and international private investment in the tourism Product Development process.

Incentives

Non‐extendible 15‐year income tax exemption starting from the operation start date. This incentive will be exclusively granted to new projects, understanding as such all tourist establishments staring operations for the first time. Expansion and renovation works, change of owner, change of name or corporate name are not included.

One‐time exemption from taxes and any other duties on imports of new goods and equipment required for project construction and start‐up operations, until the supply of equipment is complete.

Non‐extendible 15‐year exemption from taxes and other duties on imports of printed material intended for project or country promotion or advertisement as tourist destination.

10‐year tax exemption from taxes and other duties on items and equipment intended to replace existing old items and equipment, after approval.

Assignment of these incentives will be subject to, among other requirements, the granting of an environmental license by the Secretariat for Natural Resources and Environment.

Beneficiaries

The Tourism Incentive Law provides that the benefits should be granted to those who engage in the following activities:

a) Lodging. b) Food and beverages. c) Air, water and land transportation. d) Recreational centers. e) Art and handicrafts. f) Target tourist agencies. g) Cultural projects and shows. h) Conferences and conventions. i) Motor vehicle leasing. j) Educational cultural and tourism institutions

G. LAW ON ACQUISITION OF URBAN ASSETS

Considering that Article 107 of the Constitution provides that foreigners cannot purchase rural land in the islands, keys, reefs, breakwaters, rocks, Sirte and sand banks, or in an area of 40 kilometers into the interior of the country, starting from the boundary lines, the Law for the Acquisition of Urban Assets delimits this precept to promote investment in the Tourism Sector.

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Description of Urban Zones

The constitutional restriction applies to rural areas but not urban areas. This is the base to qualify urban as the land located in areas that by their tourism potential have been declared "tourist areas". In these cases, Dominion over such property may be acquired by natural persons or legal entities, provided it is intended for tourism projects qualified and approved by the Ministry of Tourism.

Benefits for Foreigners

The Law on Acquisition of Urban Assets provides that Foreigners may acquire :

a) Urban properties in the areas mentioned for second or permanent housing, provided that they do not have more than 3.000 square meters.

b) Condo or other property subject to horizontal property regime (the construction shall be completed within 36 months following the acquisition of property, except force majeure, otherwise, the tax will be applied).

H. LAW FOR THE PROTECTION OF THE NATION’S CULTURAL HERITAGE

Protection, conservation, recovery, rescue, restoration, protection, research, disclosure, augmentation of Cultural Heritage.

Cultural Heritage

a) Real estate of the pre‐Columbine, colonial and republican times. b) Prints, paintings, sculptures, furniture, jewelry, currency, weapons, clothing, machinery, tools or other objects

of anthropological and historical interest. c) Grouping of real estate and their natural environment representative of the evolution of a human community. d) Archaeological sites and zones. e) Archaeological collections. f) Documentary and bibliographic Funds. g) Cultural expressions of live indigenous peoples. h) Music and dance, crafts, traditional cuisine and oral tradition.

Protection of Cultural Property

The Law on Protection of Cultural Heritage provides that:

a) Any individual who by accident or in the performance of a work, discovers an antique or archaeological site must immediately notify the Honduran Institute of Anthropology and History (IHAH).

b) That owners of land where there is cultural property may not oppose the execution of the exploration, excavation, restoration works or study authorized in writing by the IHAH, although they shall be entitled to compensation.

c) When it is in the interest of the owner to conduct or continue any infrastructure work that will cause the modification or destruction of cultural property existing in his/her land, the owner shall submit to IHAH a detailed cost of mitigation of damages and/or redemption.

Investments

Investments carried out in projects of conservation, restoration and rehabilitation of real estate considered national monuments, with the approval of the IHAH, are deductibles from the Income Tax.

Honduran Institute of Anthropology and History

The Honduran Institute of Anthropology and History is the only institution that can carry out or authorizes excavation works, land plough up, uprooting forests, modification of monuments, demolition

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or remodeling of the structures of assets that are part of the Cultural Heritage, respecting the right of ownership. It also authorizes the production of replicas or casts of archaeological objects and motifs.

I. FREE TOURIST ZONE LAW OF THE DEPARTMENT OF THE BAY ISLANDS

It creates a customs, fiscal and territorial regulation system that will apply to the Department of Bay Islands, with the exception of the Cayos Cochinos Archipielago.

ZOLITUR’s Objective

Promote domestic and foreign investment to develop a special system consistent with the socioeconomic growth, people and property security and safety, and environment‐friendly sustainable development in harmony with the ecological load capacity and the tourist‐friendly nature of the zone.

Benefits

a) Introduction of goods or services. b) Tax exemption c) Merchandise or goods in quarantine. d) Merchandise or goods from a free‐tourist zone. e) Personal effects and luggage of tourists visiting the free tourist zone. f) Customs tax or duties exemption applicable to household items and other personal belongings of natural

persons who have been legal residents of the Free Tourist Zone for more than 1 year. g) Temporary admission or exit of goods, equipment, machinery, vehicles and similar goods for reason of work,

public and private works, repairs, exhibits, recreational activities or other needs. h) Tax exemption applicable to imports of passenger or load transportation vehicles, motor vehicles, aircrafts,

and sea transportation vehicles of foreign origin. i) Extraordinary fiscal and customs taxes and duties exemptions applicable to import‐related activities of the

diplomatic service, humanitarian services and military and security service in cases of declared emergency, public calamity or natural disasters.

VIII. ZOLITUR MANAGEMENT ZOLITUR management is under the responsibility of the Administrative Commission that reports to the Secretariat for Finances, which is in charge of coordinating the activities carried out by the public and private sector to develop the Free Tourist Zone.

Tax Obligations

National or foreign, natural or juridical persons under the Special ZOLITUR System entering into the territory of the Zone or keeping investments in such territory are required to declare and pay, as the case may be, the following taxes and duties:

a) 4% in replacement of the capital gains tax reported in the income tax return that will be paid on the capital gains obtained from each transaction.

b) Fees intended for environmental conservation and ZOLITUR security, as follows: c) US$2.00 or its equivalent in lempira to be paid by each passenger reported in the sea transportation

manifesto, coming from a foreign country to the ZOLITUR territory. d) US$6.00 or its equivalent in lempira, to be paid by each foreign passenger or visitor coming from a foreign

country and entering the ZOLITUR territory by air. e) US$1.00 or its equivalent in lempira to be paid by each passenger entering the territory of the Free‐Tourist

Zone by air or by sea, using domestic transportation

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IX. RELATED ENTITIES ENTITY WEB PAGE

Ministry of Tourism / Honduran Institute of Tourism

SETUR / IHT www.iht.hn

Other state agencies: Free Tourist Zone Bay Islands

ZOLITUR www.zolitur.gob.hn

Private Sector: National Chamber of Tourism of Honduras

CANATURH www.canaturh.org

tourism sector investment opportunities

Documents