This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 9/12/2019

Overview

The number of Salvadoran visitors to the United States has steadily increased in the last few years, according to the U.S. Department of Commerce, Office of Travel & Tourism Office Industries (OTTI). In 2018, 212,263 Salvadorans visited the United States, an increase of 14.0% compared to 2017.

California, Washington D.C., Maryland, Virginia, and Texas are common destinations due to the large Salvadoran communities in those cities. Florida, New York, Illinois, and Nevada are visited for leisure and business purposes. The most common activities for Salvadorans visiting the United States are amusement parks, sightseeing in cities, dining in restaurants, visiting museums, and shopping. Peak season for Salvadorans traveling to the U.S. are Easter week, San Salvador Feasts (first week of August), and Christmas/New Year’s.

In 2018, a total of 3.4 million passengers travel through the international airport in El Salvador. CEPA, the government agency responsible for operating the airport, has a modernization project to improve the airport facilities and open five new gates by the end of the first semester of 2019.

Several U.S. carriers have been flying to El Salvador for over 25 years and have continued to invest and demonstrate a long-term commitment to this market. The U.S. airlines American Airlines, United, and Delta Airlines offer daily flights to gateway cities and connections to the rest of the United States. These airlines fly directly to Miami, Houston, and Atlanta. Spirit offers direct flights to Fort Lauderdale and Houston.  On May 1, 2019, Delta Airlines cancelled their direct flight to Los Angeles.

Competition for U.S. carriers is significant, particularly from Avianca, a Colombian airline, which is the market leader, offering eight ports of entry to the United States: Miami, San Francisco, Los Angeles, Houston, Dallas, Washington D.C. (Dulles), and New York (JFK). Due to its restructuring process, Avianca canceled direct flights from San Salvador to Chicago, Boston and Orlando. Chicago is now only available through a connecting flight in Guatemala.

Aeromexico (Mexico) and Copa Airlines (Panama) offer connections to different U.S. cities through their hubs in Mexico City and Panama respectively.

In 2018, the low-cost airline Volaris started operations in El Salvador and has grown rapidly offering direct flights to the following U.S. cities: Los Angeles (LAX), San Diego (through Tijuana CBX), New York (JFK), and Washington D.C (Dulles). The newest low-cost competitor in the market is the Mexican airlines Interjet, who offers flights to three U.S. cities through connecting flights in Mexico City.

In November 2018, United Airlines announced a joint business agreement (JBA) with COPA and Avianca, which will provide travelers from Central America codeshare flight options and new nonstop routes to the United States. The JBA is still pending approval from the U.S. government.

In El Salvador, there are approximately 12 wholesale operators (issuer and receptive), of which four have a strong emphasis in promoting travel to the United States. Due to the size of the market, the main wholesale operators also manage their own travel agencies for retail purposes. In 2008, the Salvadoran Authorized Travel Agencies Association (AVA) was created to bring together all the travel agencies authorized by the International Air Transportation Association (IATA). There are approximately 28 members in AVA. However, since there is no law that regulates the establishment of a travel agency in the market, tour operators estimate that there is a total of 200 agencies in the market (the majority micro to small size companies). Some airlines operating in the market worked together under the umbrella of the Salvadoran Association of Airlines (ASLA), which was recreated in 2018.

Wholesale operators are the main distribution channel in the market and are key to establish a close relationship, offer new travel products, high level of service, and provide marketing material (preferably in Spanish) to increase sales. Although internet access is available, printed material (brochures, magazines, travel guides, maps, and press kits) is still preferred by travel agents and travelers.

Social media is starting to play an important role to engage and connect with clients.  The use of Facebook as a promoting tool is a new trend among travel agencies, who use the platform to promote cheap tickets, tour packages, and to increase their sales.

With the election of President Bukele in February 2019, discussions started to take place about the possibility of an initiative that would create a campaign specifically focused on promoting tourism in El Salvador. There are is a broad range of industry sectors and needs that could potentially be filled by U.S. companies as plans for this initiative, led by the Ministry of Tourism, take shape.
 

Leading Sub-Sectors

  • Shopping
  • Theme Parks/Amusement
  • National Parks/Monuments
  • Entertainment and cultural activities: sports events, music concerts, museums

Opportunities

The U.S. Commercial Service in El Salvador actively promotes the United States as a tourism destination. Recent activities include: recruiting delegations to the travel and tourism trade event IPW, supporting local tourism operators with their promotion activities of U.S. destinations, providing targeted destination presentations, organizing familiarization trips to the United States, and facilitating communication with U.S. destinations, attractions, and service suppliers. In addition, the U.S. Commercial Service coordinates education seminars to travel agencies on the U.S. visa application process and entry procedures. Representatives of the Department of State and the Department of Homeland Security provide the training.

To be successful in El Salvador, U.S. tourism suppliers should educate travel agents about their services through seminars or outreach events organized by travel associations, tour operators or the U.S. Embassy. Considering the limited resources that Direct Marketing Organizations face today, the U.S. Commercial Service can organize training sessions through webinars, allowing U.S. Convention and Visitors Bureaus, and travel and tourism suppliers to promote their destinations and services without traveling to El Salvador.

Opportunities related to the initiative with a broad reach across destinations in El Salvador are many. The initiative and intergovernmental team led the Minister of Tourism will start with the development of several surfing destinations along El Salvador’s coastline. As plans move forward and the government defines its plans and determines funding sources, there will be opportunities not just in the traditional tourism participants including hotels, restaurants, travel agencies, etc., but also a range of infrastructure and large project opportunities. There will be the demand for inputs for security needs, transportation,

U.S. companies looking to meet with Salvadoran tour operators may consider attending or participating in the following events: 
  • IPW: The largest travel and tourism trade event organized by the U.S. Travel Association, where more than 1,200 foreign buyers gather to conduct business meetings with U.S. tourism and travel organizations. For IPW dates and locations visit the U.S. Travel Association. 
  • Go West Summit: Organized by International Tourism Marketing Inc., a leading travel show that gathers U.S. suppliers of 13 Western States (Alaska, Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, South Dakota, Texas, Utah, Washington and Wyoming). For Go West Summit dates and location visit  https://www.gowestsummit.com/

Web Resources

U.S. Commercial Service Contact Information

Lidia Sosa, Senior Commercial Specialist, lidia.sosa@trade.gov

    Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.