News Releases

Nov 9, 2006

IDB fund to promote networks of ethnic enterprises in Honduran tourism industry

MIF grant for project with Garifuna, Mayan Chorti and Afro-Caribbean entrepreneurs

The Inter-American Development Bank’s Multilateral Investment Fund (MIF) today announced the approval of a $1,373,386 grant for a project to promote the participation of businesses owned by ethnic minorities in the Honduran tourism industry.

Tourism is the third largest source of hard currency for Honduras, surpassing traditional exports such as bananas and coffee. In 2005 the tourism industry generated $431 million in revenues.

Three of Honduras’ most dynamic tourism destinations, Copan Ruinas, Roatan and Tela Bay, have high concentrations of Maya Chorti, Afro-Caribbean and Garifuna population, respectively. Nevertheless, members of these ethnic groups have relatively little participation in the tourism industry, other than providing employees.

The project backed by the MIF, which will be carried out by CARE International, will seek to establish three networks of enterprises owned by members of the three communities.

By targeting different obstacles that hinder the formation of enterprises among these ethnic groups, the project will foster businesses capable of providing quality goods and services and take part in an industry dominated by hotel groups, cruise lines and tour operators.

The project will provide technical assistance or microcredit to some 500 minority-owned businesses and train 45 people as tourism trainers. With support from the Honduran Social Investment Fund (FHIS), investments will be made in nine ethnic communities to upgrade basic services and tourism-related services. Minority-owned enterprises will be encouraged to cooperate on common challenges such as marketing, procurement, training and access to credit.

The MIF, an autonomous fund managed by the IDB, promotes private sector development and investment in Latin America and the Caribbean, with an emphasis on microenterprises and small businesses. Among its different activities it supports projects involving value chains and tourism.

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