US Crisis Impact on Nicaragua
A well thought out article in the Nica Times about the expected spillover effects on Nicaragua from the US financial crisis. I would expect that many central American countries will feel similar effects described here. One section in particular was very interesting. They referred to it as the possible silver lining, which I have re-printed below. However if you are involved with, or thinking about investment in this region – read the entire article – its a great read.
Despite the gloomy and uncertain scenario facing Nicaragua for the months to come, economists say there may be silver lining if the country plays its cards right.
De Franco said Nicaragua could turn the global crisis into a Nicaraguan “tourism boom” if it promotes itself as a nearshore, inexpensive destination for travelers.
“ Europe is going to become very expensive,” he noted. “ Nicaragua is much closer (to the United States ) and has a tourism offering that can be very attractive. There will always be people who travel, and Nicaragua is going to be much less expensive than going to Europe or even to Mexico.”
A potential increase in tourism could also bring an increase in real estate activity here, as the baby boomer generation looks for new alternative investment opportunities or new markets where their dollars can go further, especially if they are uncertain about the stability of their stock-heavy retirement pensions.
Former Central Bank President Arana agreed that Nicaragua can turn crisis into opportunity if the country is careful about “maintaining its image for investment.”
“In a certain way, Central America is seen as less attached to the crisis than other parts of the world, so we have the possibility of (promoting the image) of a region that is more stable, less risky and with more potential than other parts of the world,” he told The Nica Times. “In Central America, and in Nicaragua, there is an important opportunity that we shouldn’t minimize. Just the opposite, we need to take advantage of this perception that exists; it’s a positive factor.”
Now more than ever, Arana stressed, the government needs to do all it can to promote itself positively and aggressively as a country that is attractive to investors.
This matches completely with what we have been saying here at Coastal Dreams:
- its underpriced relative to similar property in central America
- as media interest increases so will tourism, and price increases will follow
- its an ideal place for diversifying a failing US investment portfolio
- its a great option for retirees, which means that prices will go up as more people begin to look at Nicaragua as a retirement destination
- it is safe
- it offers attractive foreign investment incentives
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