Tourism trends are useful predictors of real estate sales.  This is particularly the case where tourists and real estate investors are both traveling a long distance from their primary residence and staying for an extended period of time. Of course, a second home purchase is a larger discretionary payment than a vacation with many more factors needing to be taken into account.  But at a general level there is considerable overlap in the attributes that second home buyers and holiday makers are looking for.

You know how it goes.  You go on holiday.   You find a charming little fishing village and spend two glorious weeks relaxing and doing fun stuff.  On the last day you look at realtors window and then buy a property or at least start looking.  Real estate and tourism are inexorably linked.

We are seeing this phenomenon all over Central America.  Key tourism areas are also those generating the highest levels of real estate activity.  Examples are Granada and San Juan del Sur in Nicaragua; Ambergris Caye in Belize, Antigua in Guatemala, the Bay Islands in Honduras and Bocas del Toro, Panama City and Boquete in Panama.

Given this link, how Central America is positioned within wider international tourism trends provides a key indicator for the real estate market going forward.

The prospects look good:  According to the UNWTO, at 16% growth, Central America was the fastest growing sub region for tourism in the world in 2005.  2006 has also seen double digit increases for all Central American countries, with the exception of Belize.  The area is clearly growing in importance as a crowd-puller for holidaymakers.