Honduran Technical and Agricultural Schools

Issue 2, Vol. 2

Cruise ships are visiting Roatán regularly. Photo courtesy of Port of Roatán.

Businesses Expanding in Honduras Despite Global Economic Downturn ....................................................2

Tourists Flock to Caribbean Paradise of Roatán and Return to Copán as Honduras Destinations Offer Summer Discounts

Honduras Exports to United States Grow by 18 Percent in 2008, Marking Stronger Trade Relations with Largest Partner ..............................................2 & 3

egional, international, and local tourists have been flocking to the Caribbean paradise of Roatán and the northern coast of Honduras recently since hoteliers in the nation’s most popular destination began offering summer discounts as low as 30 percent off normal rates.

As a result of the promotions, many hotels and resorts now have waiting lists of several weeks.

Honduran Entrepreneurs Seeking to Attract International Agribusiness Investment by Creating “Agro Parks” ....................................................4 Honduran Technical and Agricultural Schools Provide Skilled Workers and Research for Business Investors ....................................................5

Epaminondas Marinakys, president of the National Chamber of Tourism of Honduras, credited the campaign with returning Roatán occupancy rates to 90 percent and higher.

Samir Galindo, general manager of Anthony's Key Resort, said due to the energetic marketing efforts of industry leaders and a new Honduran Minister of Tourism, bookings are much better today than a month ago and things are “looking up.” The five-star diving resort, which the Galindo family has owned and operated for nearly 40 years, also is attracting more business through its own promotional packages.

Taca International Airlines participated in the campaign to promote Honduras regionally, reducing its fares between the cities of San Pedro Sula and Tegucigalpa and Roatán by 30 percent through August.

The international cruise lines, for whom Roatán is a popular spot on their Caribbean tours, have continued to visit this largest of the Bay Islands. Their passengers continue to enjoy snorkeling and scuba diving over the Mesoamerican coral reef; swimming, sailing, and kayaking in the clear aqua waters; touring the island by moped, foot, or car; exploring nature parks, and shopping for regional handicrafts and international products.

Tourism continued on page3

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AGRIBUSINESS TRAVEL&TOURISM LIGHT MANUFACTURING SERVICE

Businesses Are Expanding in Honduras Despite Global Economic Downturn o meet increased market demand, FCI, a leading manufacturer of connectors, is expanding its Honduran facility, located in an industrial park near San Pedro Sula.

By the end of the year, FCI will have added another 48,437 square feet to the plant, where it produces airbag connectors.

According to FCI, “The increasing use of electronics has made interconnection solutions of prime importance over the past decade.

With the extensive use of passenger protection systems (airbags), the installation of on-board multimedia systems and the development of sophisticated anti-collision systems, connector technology is a key priority for car manufacturers and their system suppliers that are essential to the automotive industry.”

Headquartered in France, FCI recorded $1.84 billion in sales worldwide in 2008, with 23 percent of its sales coming from the Americas.

Gildan Activewear, Inc., a leading international supplier of activewear, recently completed a major addition to its factories in the free trade zone where it operates outside San Pedro Sula, for a total of more than 484,000 square feet.

Hondurans manufacture quality textiles and apparel for international customers.

Despite the weak market for activewear internationally, the Canadianbased company continues to produce quality men’s socks at full capacity at its Honduran textile and sewing facilities, where it employs more than 10,000 workers.

On August 13, Gildan announced its worldwide net sales during the third quarter of fiscal 2009 were $307.8 million.

Honduras Exports to United States Grow by 18 Percent in 2008, Marking Stronger Trade Relations with Largest Partner The recent collapse of international trade in general and the fall in consumption in the U.S. economy in particular has affected sustained growth in exports from all countries, including Honduras. But an analysis of its exports in the context of the U.S. global slowdown reveals a more robust record for Honduras than for all other economies in Central America and for the rest of the world. Indeed, for the first five months of 2009, exports from Honduras to the United States contracted significantly less than exports from other nations.

Moreover, while exports of goods to the United States from all other countries fell by 32 percent from January through May 2009, Honduran exports to the U.S. market declined by a comparatively modest 20 percent. The strength of Honduras’ export economy is demonstrated further by the fact that during the same period, combined exports from Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) member countries – of which Honduras is one – fell significantly, by 58 percent.

Most of Honduras’ exports to the United States pass through Puerto Cortes, its Megaport on the Atlantic espite the international economic crisis and declining trade worldwide, Honduras continues to strengthen its trade relationship with its biggest trading partner, the United States.

The U.S. Department of Commerce reports that from 2003 through 2008, exports of goods from Honduras to the United States grew at a rate of 18 percent, rising from U.S. $ 3.313 billion to $ 4.041 billion.

The portfolio of goods that Honduras exports to the United States includes tilapia, palm oil, melons, coffee, tobacco, wood hangers, textiles and apparel, electrical harnesses, electric cables, and minerals. This array indicates an economy that once was primarily agriculturally based but has begun the process of diversification.

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Honduras Exports continued on page 3

HONDURAS EXPORTS TO THE U.S. 2003 – 2008 In Millions of Dollars Honduras Exports continued from page 2

Clearly, Honduras has maintained a competitive export position.

Among the factors contributing to its success are a young and competitive workforce, proximity to the U.S. market, the availability of good infrastructure to support production, and an incentive system that allows Honduras to produce at very competitive costs highquality goods that are in demand in the United States. As a result, even though the global economy has continued to falter in the past year, Honduras has been able to improve its position as an exporter of goods to its foremost trading partner from the position of 52 in 2008 to number 50 in 2009.

In spite of the current international economic crisis, Honduras remains in perfect position to attract U.S. export-oriented investments.

Source: U.S. Department of Commerce

Tourism continued from page 1

Construction is progressing on schedule for Carnival Cruise Lines’ new $62 million Mahogany Bay-Roatán cruise center, which is preparing to welcome its first cruise ship, the 2,124-passenger Carnival Legend, on November 19. During its first year of operation, Mahogany Bay – comprising two cruise ship piers; a welcome center with shops, bars and restaurants; a transportation/car rental hub; an excursion pier for water-based tours; and a pristine private beach – expects more than 520,000 passengers to arrive on more than 200 cruise ship calls.

National and regional tourism officials have launched a campaign to entice more visitors to Copán Ruinas, the site of spectacular Mayan ruins. The campaign primarily is aimed at the neighboring countries of El Salvador and Guatemala.

Jose Raul Welchez, former director of the National Chamber of Tourism and a Copán hotelier and tour operator, suggested that visits to the UNESCO World Heritage Site of Copán are a logical extension for travelers to Guatemala who are interested in the Maya’s rich history and archeology.

He pointed out that the archeological park of Copán is operating as usual, as are other popular attractions in this tranquil and beautiful region, such as coffee plantations, nature parks, and the many stores in the colorful village of Copán Ruinas. Tourists also can continue to enjoy hikes, cave explorations, bird walks, horseback riding, river kayaking, and visits to indigenous Mayan communities in the area on their own or with professional guides.

Flavia Cueva, owner of the popular Hacienda San Lucas, a centuryold family coffee farm transformed into a bed and breakfast and spa on a hillside overlooking the Mayan ruins, points out that the area remains a safe and peaceful haven for tourists, whose patronage is vital to the local economy. Tours, public transportation, border crossings, electricity, telecommunications, security, and area hotels and restaurants continue to operate normally.

Although summer visitors historically have favored beach vacations over visits to more rural sites, inland tourism had dropped more than usual this year. But the promotions appear to be working, and Welchez says, “Currently if you visit Copán, you will find American, European, Guatemalan, and Salvadoran tourists and also Hondurans who have reacted very positively to the offers for this summer season.

The climate and environment are perfect for visiting.”

Anthony's Key Resort is offering summer promotions to attract more visitors.

Just a few miles away, Royal Caribbean Cruises’ Town Center already is fully operational, with a wide variety of shops and two restaurants serving cruise ship passengers and other island visitors. While this summer was somewhat slower than last year, Dawn Hyde, customer service director of the Port of Roatán, says “things are picking up.”

Celebrity Cruises will visit the port for the first time this season, and Norwegian Cruise Line’s new 4,200-passenger ship, Norwegian Epic, will make its maiden visit to Roatán in June 2010.

A new attraction for Copán visitors opened in August, an extraordinary exhibit of photographs from the 1891-1900 archeological exploration in the region by the Peabody Museum of Harvard University. The photographs reveal new information about the first excavations of Copán in the 19th century and the lives and culture of the local residents, many of them of Mayan descent. The exhibition will be on permanent display in the Copán Ruinas city hall.

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Honduran Entrepreneurs Seeking to Attract International Agribusiness Investment by Creating “Agro Parks”

Coffee thrives in Honduras’ fertile soil and mild climate. Photos courtesy of Cafe Welchez. esponding to the current global economic crisis, the private sector in Honduras is promoting the formation of agribusiness industrial parks that would help attract investment and generate thousands of jobs in the production of sustainable agriculture in the nation’s vast rural areas.

“Agro Park” proponents are drafting a bill to present to the Honduran National Congress before October. Prospects for passage appear excellent, given that the initiative would boost rural employment and is supported by the president of the Congress.

According to Martin Chicas, vice president of the Honduras Private Sector Association (ANDI), “The purpose of the law is to attract investment in the agribusiness sector from companies that already have the technologies, markets, and resources to invest in growing, processing and exporting agricultural products.”

In the short-term, the act would create an economic platform for agribusiness development throughout Honduras by creating an infrastructure to support agricultural exports and encourage technology transfer in such areas as agricultural production. By attracting international investors who have expertise in global marketing and the necessary financing, Agro Parks should foster the production, processing, and export of agricultural products with high added value.

As new business “magnets,” the agribusiness parks will attract investment, employment, production, and technology that will create new revenue sources for rural municipalities seeking funds to improve their drinking water, health facilities, and schools. Proponents also expect some of the new businesses to engage in mutually beneficial social responsibility projects in communities where the parks will operate.

Entrepreneurs are prepared to begin creating Agro Industrial Parks as soon as the proposed bill is passed. In the San Pedro Sula area, Honduras’ agribusiness and industrial center, some existing industrial parks could be expanded to offer agribusinesses a full package of farming systems, including irrigation, fumigation, food processing and packaging, Individually Quick Frozen (IQF) processing to ensure “just picked” freshness, waste recycling, and other necessary services.

The agribusiness sector, which includes processed and raw agricultural products, represents nearly 40 percent of the country's economy.

Honduras offers numerous advantages for developing agribusiness products such as milk and dairy products, fruits and nuts, vegetables, plants, roots, tubers, vegetable and animal fats and oils, and aquaculture. Honduras is the most important producer of farm-raised shrimp in Central America and the largest exporter of fresh farm-raised tilapia to the United States.

Chicas said interested foreign businesses also will find domestic partners willing to invest in fruits, vegetables, flowers, and biofuels on land that currently is not in production.

According to a UN Food and Agricultural Organization (FAO) study, the tropical climate of the country’s fertile northern coast is well suited for bananas, sugar cane, palm oil, and tropical fruits, while the tropical southern region, which experiences recurrent drought periods, is oriented towards sugar cane, sorghum, melons, cattle, and cultivated shrimp production. The more temperate mountainous region in central Honduras has attracted coffee, wood, grains, and cattle production. The climate throughout Honduras enables crops to be grown year-round.

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Honduran Entrepreneurs continued from page 4 The country offers agribusiness investors and producers such structural advantages as:

in Central America, the deep-water Atlantic Megaport of Puerto Cortes; and,

- The opportunity to centralize operations to supply Central American and North American markets at lower costs, through regional production hubs;

- Macroeconomic stability ensured through program stabilization and economic development provided by the International Monetary Fund (IMF), the U.S. Agency for International Development (USAID), debt forgiveness programs, and the Millennium Challenge Corporation’s program to promote economic and social development in Honduras.

- The ability to access the U.S. market with preferential logistic and market access conditions due to Honduras’ participation in the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) and the Container Security Initiative (CSI);

Finally, Honduras is in perfect position, in the heart of Central America and only two hours by air and 48 hours by freighter to the nearest U.S. markets.

- Faster access to the U.S. market through the best port infrastructure

Honduran Technical and Agricultural Schools Provide Skilled Workers and Research for Business Investors Difference,” has added a program to train multi-functional technicians to solve problems in mechatronics. IPC also has opened the doors to a new student residential hall, which enables the school for the first time to provide housing and education on the same campus.

Scientists at Zamorano University are partnering with University of Illinois scientists to assist Honduran children who need more iron in their diets.

Through the “Nutrigems” project, the scientists have developed micronutrient supplements that Honduran teachers and mothers are feeding children in rice. This low-cost “stealth nutrition” provides the children with significant amounts of iron while disguising the taste in rice. The project also is introducing the concept of global nutrition to U of I students and providing them with the opportunity to see how their laboratory research can benefit others.

Honduran students are eating rice prepared with Nutrigems during school lunches.

Copyright 2009 William Helferich, all rights reserved

wo educational institutions that are important sources of skilled workers for businesses in Honduras and resources for international research are IPC, the Instituto Politéchnico Centroamericano, and the Pan-American School of Agriculture, better known as Zamorano University.

IPC students now are receiving hands-on training on an internal combustion engine donated by Laeisz Group and Volvo. IPC Executive Director Colin McLernon said the engine is helping IPC meet its “strong commitment to develop a new generation of technicians to support Honduras industry and development.” IPC graduates are valued as employees because they receive hands-on training combined with exposures to state-of-the-art technology and classroom instruction from experienced teachers.

As it strives to become Central America’s leading technical educational institution, the school, whose motto is “IPC Makes the

Also on the nutritional front, Zamorano is housing a new regional center for vegetable research and development. Funds came from the World Vegetable Center, a non-profit, Taiwan-based research institute that aims to alleviate poverty and malnutrition in the developing world by increasing production and consumption of vegetables. Zamorano students and researchers are participating in the regional center’s programs to develop new varieties of vegetables suitable for South America and to create new approaches to improving the quality and variety of diets of people in the region.

To commemorate 25 years of women graduating from Zamorano, in June, the university sponsored the First Latin American Women’s Conference, which focused on forging strategies for professional success. During the conference, Zamorano President Kenneth Hoadley presented the first Women’s Leadership Scholarships to four current Zamorano students. Women now make up one-third of the student body, which numbered 1,100 at the beginning of the school year.

One of Zamorano’s first female graduates heads the university’s collaborative project with the Inter-American Institute for Cooperation in Agriculture to increase the quality and global competitiveness of 450 micro, small-, and medium-sized enterprises of Honduras engaged in such areas as dairy, meats, breads, horticulture, and apiculture (beekeeping). Zamorano is providing training and technical assistance to the program, which will run until 2011.

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