Although the United States and Canada lead foreign investment in Roatan, investors come from Mexico, Guatemala, El Salvador, Spain, and Italy. Significant public and private investments will be made in 2025.
More hotels, both large and small, will be built this year on the island of Roatán, Bay Islands, located in the Caribbean region of Honduras.
A significant wave of public and private investment is set to take place this year in Roatán, where foreign investors continue to focus their attention due to the island’s diversity in tourism and commerce.
Ronnie Macnab, mayor of Roatán, recently spoke about the investment plans and development taking place on the island, which continues to grow in tourism.
Although Americans primarily lead foreign investment in Roatan, the island also has investors from Canada, Mexico, Guatemala, El Salvador, Spain, and Italy. Most of this investment is concentrated in tourism infrastructure.
“Private investment grew exponentially in 2024, as reflected in the municipal budget, which increased by 25%. We approved over 1,500 operating permits, 800 of which were for new businesses, primarily catering to tourists, including tours, souvenir shops, restaurants, small hotels, and new construction companies that opened offices here due to the boom in construction,” Macnab explained.
In 2024, the municipal budget of over 290 million lempiras was invested in infrastructure projects and unforeseen needs in schools and hospitals following the fire at the public hospital.
New Investments for 2025
This year, the mayor’s office plans to build a market for vendors selling handicrafts, a new municipal market to replace the current one, a school, two clinics, complete the main road, and develop social projects.
“Our biggest effort will be paving as many secondary roads as possible,” said the mayor.
The municipality is assisting investors in expediting environmental licenses and construction permits. The projects set to begin include a hotel with over 150 rooms, including a tourist plaza, a boutique hotel with 45 rooms, and a luxury hotel with 60 rooms. Additionally, several existing hotels are expanding their accommodations. These investments combine local and North American capital.
“In the West Bay area alone, we expect to add approximately 250 more rooms across several hotels. Similarly, a project involving vertical apartment buildings is in the planning stages in the French Harbor area. The projections for the first six months of this year are very positive,” added Macnab.
Through the National Airport Service (SAN), the government is investing $25.4 million (over 631 million lempiras) in renovating the Juan Manuel Gálvez International Airport.
The upgrades include a new control tower and access points, a fire station, improvements to the asphalt runway and electrical systems, new furniture, terminal expansions, and new baggage carousels.
“We see this positively. We are glad the government considered our request to expand this terminal. On certain days, the airport is overwhelmed with the number of people entering and leaving,” Macnab said.
An Insufficient Airport
The airport was designed to handle about 250,000 travelers annually but now serves over half a million. The new design is expected to meet a demand of between 750,000 and one million passengers, which is anticipated to further boost domestic and foreign investment in Roatan.
It is also worth noting that the real estate sector is on the rise, with increasing sales of houses and land.
Álvaro Durón, general director of the Bay Islands Chamber of Commerce, explained that Roatán is attractive to foreign investors because its residents speak Spanish and English in addition to the beauty of its beaches.
One of the most significant private investments announced for this year is by Margaritaville and Karisma Hotels & Resorts. This all-inclusive luxury hotel will feature over 150 rooms, outdoor music venues, a spa, and unique dining concepts. While this will be their first property in Honduras, both chains exist in many other countries.
Durón noted that while there are still significant investments, many are local, with foreign investment in Roatan on a smaller scale due to uncertainty among investors, which has delayed some projects.
Investment Could Be Greater
“There’s hesitation to invest because there’s no clear direction. Investors don’t know what might happen with the new Tax Justice Law, which limits large projects, particularly on the island, where everything is so expensive due to the need to import materials from the mainland. These projects are not viable without some incentive,” he explained.
The business leader emphasized that certainty, clear rules to build confidence, and incentives are key to attracting new investments to the country.
“The expansion and renovation of the airport are vital for attracting new investments, and new flight routes are needed,” he stated.
Conclusion
In conclusion, Roatán stands at a pivotal moment for economic growth and development, driven by significant foreign investment in Roatan and local investments in tourism and infrastructure. While new hotels, expanded accommodations, and the upgraded international airport promise to enhance the island’s appeal, challenges remain. Addressing concerns over policy clarity, providing investment incentives, and improving logistics are essential for sustaining this momentum. With its natural beauty, bilingual population, and strategic initiatives, Roatán has the potential to solidify its position as a premier destination for tourism and commerce in the Caribbean, provided that the right conditions foster investor confidence and long-term growth.