SUNDAY OCTOBER 15TH 2017 AN INDEPENDENT SUPPLEMENT BY BUSINESS REPORTS ON UNIQUE MEDIAS TO THE MIAMI HERALD FACEBOOk.COM/BRUMREPORTS Guatemala

BY JUAN CARLOS ZAPATA

Guatemala bets on infrastructure

Guatemala is working on changing the system and the logistics of the infrastructure investment model to make a quantum leap. According to international standards, the country has 1.3 meters of highway per inhabitant while the United States have 20.5 2

BY RICHARD AITKENHEAD PLAZA DE LA CONSTITUICIÓN The actions of the National Palace’s leader have been watched since people occupied the main square expressing their disapproval for corrupt governments The dawn of a new country

CORRUPTION LOST ITS PLACE AS PEOPLE OCCUPIED THE MAIN SQUARE EXPRESSING THEIR Building the DISAPPROVAL FOR PAST PRACTICES AND REJECTING IMPUNITY. A LAWFUL CULTURE HAS EMERGED future, changing the uatemala is dawning differently Guatemala is unfortunately still seen as a The place boasts a native cultural inher- lately. Corruption has lost its place place of violence. But it has also woken up to itance from the Mayan Empire as well as an present among the country’s bustle, and the importance of its international image, important Spanish influence as a result of Guatemala business, giving way to a lawful cul- its tourism potential, the virtue of its people, the Colonial Period. There are 16 million in- continuously struggles Gture. It is at a crossroad, searching for political and the value of its fertile volcanic land. habitants living in its 108,889 square meters. to break free from its balance. Ever since the people occupied the The Central American country enjoys a Its macroeconomic pillars are very past, a past plagued main square expressing their disapproval for competitive advantage due to its strategic healthy, with a relatively low GDP debt level with systems that limit past practices, it has become clear that — from location; as a natural bridge between the and average growth rate in the past six years its future. the same square — they will carefully watch Americas, it accesses both the Atlantic and of 3.7%. The Central Bank is structurally It is a society too the actions of the National Palace’s leader. Pacific oceans. sound and conservative, in addition to hav- slow to change, and “Guatemala is naturally a peace- and democ- The name “Guatemala” (or in the Náhuatl ing a strong monetary policy. where those seeking a racy-loving country. Its people have bravely language “Quauhtlemallan”) means “place “Guatemala, being a country of young renewed and different shown the world how to fight against corrupt of many trees.” It does justice to the coun- people, has a very encouraging future of de- direction are attacked governments and reject impunity,” comments try’s immense nature, which extends from velopment, since its best competitive advan- from different fronts. 2 Chancellor Sandra Erica Jovel. its volcanic Pacific coast all the way to the tage is the people themselves,” commentes Having lived through a violent period of tall, mountainous regions of Verapaz and its Álvaro Arzú, ex-President and Mayor of civil war, which lasted 36 years until 1996, magnificent entrance into the Caribbean. Guatemala City.

CLEAN INDUSTRY

Tourism is a priority The Guatemalan Government raises the status of the sustainable Tourism Plan to a State Policy aiming to develop tourist activity 13

FISHERING

The fascinating and colorful land where Mayan culture and traditions are alive Sailfish uatemala is home to a thriving Its capital, Guatemala City, is o ne of the Known as the country of eternal spring, abundance local culture with an awe-inspiring most modern and cosmopolitan in Central it enjoys a mild climate year- round. Its The country has an backdrop of volcanoes, lakes, and America. With over 3,000 archaeological temperate climate, combined with varied average of 15 bites per mountains. Walking among its sites, the country offers abundant geography, makes it a haven for endangered day per boat. It boasts Gnatural, archaeological, and colonial wonders opportunities to see unparalleled historical species. With its overwhelming environmental six to eight times more is like traveling back in time. The ancient finds. Artifacts such as Popol Vuh, the Mayan diversity, it has been named 1 of the 19 than anywhere else in culture and traditions of the Mayans are alive. religious book, were discovered here. megadiverse countries in the world. 10 the Americas. 12 2 SUNDAY OCTOBER 15TH 2017 AN INDEPENDENT SUPPLEMENT BY BUSINESS REPORTS ON UNIQUE MEDIAS TO THE MIAMI HERALD FACEBOOk.COM/BRUMREPORTS Opinion

EDITORIAL related. Local businesses invest kind in all social classes. This proposition of what a nation Studies from the Reputation in technology and meet the goes so far that, in a trade nego- offers visitors and investors and Institute found a high corre- highest international standards. tiation, a Guatemalan may be has three dimensions: tourism, lation between a country’s We were very surprised at the unable to say no; even if he also exports, and foreign direct reputation and supportive Inside programs of social responsibility does not say yes. investment. Countries that have behaviors, which implies a in the private sector, which now Their kindness makes it al- built an image based on positive direct relationship with the Guatemala takes the role of the State by most impossible for a foreigner perceptions have competitive creation of tangible economic providing school, health, food, not to feel welcome, and makes advantages that add value to value: a 10% increase in rep- and transportation. In the same us agree with many interview- their products or services. utation implies on average an ne of the major way, the high levels of environ- ees who emphasize that “their In contrast, when there are no 11% increase in tourist arrivals purposes of our work mental awareness practices are people” are one of the country’s perceptions, or they are nega- and a 2% rise in foreign direct is to unveil a new standards established by the competitive advantages. With- tive, the penetration and per- investment. country and present companies themselves. out a doubt, it is a territory full manence of offers and services Guatemala, which previously Oit beyond its borders in a fair Guatemala is experiencing of ambitious and hardworking have to overcome a barrier. had deconcentrated or discon- way. This goal could hardly be a historic moment in which young people, eager for oppor- After living day-to-day life tinued actions in this regard, fulfilled by looking at the coun- concern about the country’s tunities. in the modern city of “Guate” seems to be finally giving more try from the outside. During direction permeates social In this traditional and patriar- - as the locals call it - and the importance to the subject, and three months living in Guate- conversations. After reports chal society, family is a priority, weekends in tourist paradis- has now delegated the efforts mala, there were more than 100 against and the imprisonment and family businesses are a es, we regreted to realize that under a single institution. In interviews. We asked a lot. But of the previous president, one source of pride. Being on good many times this is the case for turn, the Tourism Institute is above all, we listened: to the breathes “anti-corruption” terms is important, as well as the country: null, little, or bad exploring this weakness very Guatemalans. In the next pages, air loaded with oxygen for the having a good social image. international perception. wisely in a reverse marketing we give voice to them. dream of a more prosperous As a nation, however, until The potential of tourism in campaign: “Guatemala is the In addition to listening, we country; which, instead, stifles now they have cared little for this territory is incalculable, Secret. Discover it. ” observed: Guatemala is a place public institutions and paralyzes their own image at the interna- and in the case of violence, the of natural networking - every- the execution of budgets. tional level. image is infinitely worse than If you are intrigued, turn the one knows each other and is Guatemalans are extremely Country-brand is a value reality. page.

Guatemala bets on infrastruture to Building the future, spur development changing the present positioning the country as an energy center for the region. In recent years, goods and services being trans- ported across the country have slowed. According BY JUAN to estimates by the Private CARLOS ZAPATA Competitiveness Coun- BY RICHARD @jczapata_s cil (Fundesa, 2017), the AITKENHEAD average speed with which CASTILLO a person or product moves ccording to on the main roads of the gap analysis in country fell from 58 km/h uatemala the economic in 2000 to 37 km/h in continuously growth of 25 2017, a decrease of 36.2% struggles to Asectors of the economy, in 17 years. If we analyze break free from which represent 70 % the investment in road Gits past, a past plagued of the gross domestic infrastructure, according with systems that limit product (Mejoremos to the World Bank, be- its future. Traditionally, Guate, 2011), Guatemala tween 1985 and 2013 the Guatemala’s society has PLAZA Guatemala’s public square is the place where people are protesting together against corruption could reduce poverty road network increased been very conservative by solving certain by 80%, approximately in the sense that it is parties in Guatemala itself as having the most success, but for failure bottlenecks such as: 7,335 kilometers (a growth suspicious of any changes, have a negative public significant economy in and the perpetuation of reducing bureaucratic rate equivalent to 1.8 % while at the same time image and are held in low Central America. The the old systems. Now costs to perform business; per year). However, since exposed at the mercy esteem and popularity country’s population is is the time to set a new improving the relationship 2013, not a single road net- of its enraging political by a faithless and tired more than 16 million. course. Yet, change between energy supply work kilometer has been situation. It is a society population. Guatemala has increased should avoid social and demand; boosting built in the country. that for years has justified The latest attempt by exports in a variety confrontation and the research, development, Guatemala has a total the status quo, a society the Guatemalan Congress of agriculture and imposition of ideologies. and innovation; improving of 16,457 road network too slow to change, and to legally protect apparel manufacturing It can only be achieved the entrepreneurial kilometers, according to where those seeking a politicians’ impunity products, has a strong by creating bridges ecosystem; and better the Ministry of Commu- renewed and different from prosecution has growth potential for where the country has targeting efforts to attract nications, Infrastructure direction are attacked ignited the people, who tourism, and an excess been previously divided direct foreign investment, and Housing, of which from different fronts. have made their way to supply of renewable and disconnected. And especially regarding only 44.6 % are paved. Like in all other aspects the streets to protest and energy at reasonable change will happen only if infrastructure. If we compare other of life, there are limits to demand that members prices. Additionally, Guatemalans in general, Guatemala is working countries in the region, being negligent, and once of Congress resign it has enjoyed a good and especially those that on changing the system according to information patience is exhausted immediately. and healthy macro- promote change and a and the logistics of the from the Inter-American and long gone, it may For that reason, the economy, a diverse and better life, stand up for infrastructure investment Development Bank, we be impossible to contain time has arrived to break entrepreneurial private their ideals and promote model to make a quan- see that El Salvador, being a force that has been with the old model of sector, complemented new initiatives that tum leap. According to a much smaller coun- repressed for so long. may lead the country to international standards, try, has a road network In recent times, the THE TIME HAS ARRIVED TO BREAK flourish. the country has 1.3 meters of 15,139 kilometers, of country’s political sector Politicians, surrounded of highway per inhabitant, which 54% are paved; has come under high WITH CORRUPTION, BEFORE by dark forces and deeply while countries like the Costa Rica, a country pressure and intense CORRUPTION ENDS UP DESTROYING involved in corruption, United States have 20.5, less than half the size of criticism. Politicians who will never support change Brazil 7.9, and Mexico 4.1. Guatemala, has a road were “untouchable” in THE DEMOCRATIC EXPERIMENT unless society places We can find an excellent network of 42,430 kilom- the past, now live under the heavy pressure example of the country’s eters, with 66.2 percent of fear of legal prosecution. corruption, corruption with a committed labor and burden of social potential by looking at the them paved.If we contin- In fact, some key figures ends up destroying the force with high and responsibility on them. electricity sector. During ue to build infrastructure in the political past are democratic experiment efficient labor standards. Today, the political the 1990s, incentives and without changing the already behind prison altogether. In order Guatemala is certainly public square, legal frameworks were current legal framework, bars. to achieve this, it is a country with great Guatemala’s plaza, is changed in order for them how could we make the This scenario would necessary to act swiftly potential, a country that the place of reunion and to be clear, transparent, leap that the country not have been possible and firmly, and above needs to enforce changes change. and efficiency-based. This needs to have at least 3.1 without the active all, with righteousness. in its present political One just hopes it allowed for an increase in road network meters per participation of the The politicians of old structures and fight may not lose its strong electricity coverage from inhabitant? This means International Committee have resisted change for corruption in order to diversity, for today is 46% of the population investing in an additional Against Impunity in too long, blocking any build a better future for the time to redefine the to 93% in the span of 20 47,500 kilometers of road Guatemala (CICIG). attempts made at moving its children. country with intrepid years. More than US $10 infrastructure in the next Since the beginning forward as a nation, while The future, however, hope and pride. The billion were invested in 15 years. of the democratic protecting the dark forces is always defined in the challenge is to build the production, gener- In Guatemala, recent experiment back in 1985, at play, and bathing present. Guatemala is a a better and brighter ation, commercializa- changes have made never have politicians themselves in corruption. country of mostly young future, starting today. tion, and distribution of way for an environment experienced such a As a result, citizens people dominated by the Without effective change, electricity. The Guate- conducive to investment legal threat due to their have no more room for corrupt politicians of old. Guatemala will be, and malan electricity sector that will allow prosperity rampant corruption. For tolerance. This is the ideal recipe have, just more of the is a world-class model, for all. that reason, all political Guatemala prides not for innovation and same.

IVAR RENNER ROBERTA BRUM JUAN CARLOS CORTES PUBLISHER EXECUTIVE EDITOR PROJECT DIRETOR

ADEVANIA SILVEIRA GRAPHIC DESIGN EDITOR

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BY SUNDRA FLUNSBURG

The alliance for uatemala is a modern coun- prosperity plan try in which to conduct “The Alliance for Prosper- in large part because of the Gbusiness, boasting a low ity Plan continues to be one volume of immigrants coming tax rate, macroeconomic of the best opportunities from the region. There is a stability, and diversified Guatemala currently has to growing understanding that human talent. It is Central strengthen its relationship promoting development in America’s most populous with the United States,” notes Honduras, El Salvador, and nation, with over 17 mil- Juan Pablo Carrasco, President Guatemala is a critical factor lion inhabitants, and has of AmCham. in slowing illegal immigration the largest economy. The Initiated in 2014 by Gua- and violence. Following some country has abundant nat- temala, Honduras, and El Sal- uncertainty with regards to the ural resources, an interest vador, the plan has received new administration, the Unit- in technological develop- partial funding from U.S.’ ed States recently expressed ment, and aspirations to regional foreign assistance. its renewed commitment to become a regional hub. It was formulated in recog- this plan. Importantly, Guatema- MEETING Central America’s leaders met U.S. Vice President Mike Pence for talks in Miami earlier this year nition of the need to create “A more prosperous, safer la’s geographical proxim- more opportunities for people Central America will do much ity to the United States, among several of the Guatemala. “There have the Central American in their countries of origin. The to halt illegal and dangerous Mexico, and the rest of agencies that deal with been wonderful invest- customs union is funda- plan supports investment in migration, defeat transna- Central America gives promotion of trade and ment opportunities pri- mental to our continued a range of areas, all of which tional drug cartels and gangs, foreign investors who wish investment. Guatemala marily in pharmaceuticals, growth,” explains Antonio would create new economic and end corruption in their to expand operations an Trade and Investment cosmetics, and consumer Malouf, President of the opportunities for people, as economies. . . . Promoting important gateway to Cen- (GTI) is a new entity products.” Guatemalan Exporters As- well as reduce violence and prosperity in Central America tral America’s market of designed to bring togeth- sociation (AGEXPORT). strengthen border security. is a key component of this approximately 45 million er the National Program TRADE “We now have a customs Key aspects of the plan have effort,” remarked Rex Tillerson, inhabitants. This popula- for Competitiveness union with Honduras that been to invigorate the produc- U.S. Secretary of State, at tion is largely young and (PRONACOM), Invest in The Dominican Re- could raise our GDP by 1 tive sector, develop human the June 2017 Conference holds an ever-increasing Guatemala, and the Trade, public - Central America %.” capital, improve citizens’ for Prosperity and Security in purchasing power. Investment, and Tourism Free Trade Agreement Guatemala has 14 other security and access to justice, Central America. In the 20-plus years Program in Guatemala (CAFTA-DR), implement- trade agreements with and strengthen institutions. In The U.S. government has since the 1996 peace ac- (PACIT). In doing so, the ed in 2006, was the first different countries and Guatemala, the action focuses noted that what happens in cords, which ended a long aim is to more strategically agreement on free trade trade blocs, including the especially on creating and the Northern Triangle coun- period of civil war, Guate- attract foreign investment between the United States European Union, Panama, expanding economic oppor- tries impacts the security and mala has steadily focused and increase the country’s and a group of smaller Chile, United States, and tunities for the population, prosperity of all the countries on reforms to improve its competitiveness. developing countries. Mexico. Some 88% of the with the hopes of decreasing in the region, and therefore investment climate. These The country’s relation- CAFTA-DR covers about country’s exports are via emigration, since low wages their problems are interre- efforts have brought about ship with the United States 80% of the Central Amer- these trade instruments. and lack of employment are lated. Creating a prosperous a period of increasing is stable and well estab- ican products, reaching “We have diversified our seen as the primary reasons Central America will in turn stability and expanded lished. “The United States a commercial volume of export products according why people leave Guatemala. benefit the rest of the hemi- opportunity. is Guatemala’s primary approximately $30 billion. to the markets we access The now bipartisan U.S. sphere in terms of combatting One of the reforms commercial partner,” “A third of our ex- and where we can position agenda prioritizes relation- the drug trade, illegal immi- undertaken has been to notes Juan Pablo Carrasco, ports are within Central those products,” notes ships with Central America gration, and delinquency. improve the coordination President of AmCham America. Because of this, Malouf.

Economic stability; growth rate of 3%

BY PABLO ITURRIETA has a record levels of for- eign currency reserves of more than 10.8 billion U.S. uatemala has dollars at the moment, one of the which for the country best economic signifies the equivalent of performances approximately 7.2 months Gin Latin America, with a of imports.” According growth rate above 3 % and to the World Economic expectations of 3.2 % for Forum, Guatemala’s fi- 2017. This has been possi- nancial system ranks 18th ble thanks to the increas- in the world list. ing support of foreign Guatemala has also direct investment (FDI) adopted “inflation target- to the country. Once the ing,” a monetary policy civil war ended, the imple- which aims at setting a mentation of the free- specific inflation rate. It trade agreement (ALCA) is the task of the Bank of and the measures taken Guatemala to maintain to liberate the economy the average price of goods have allowed and encour- and services, as it affects omist Federico Linares years in a row. Deficit low fluctuation in relation by investing and becom- aged the rapid rise FDI in a positive way the Martínez, current General had been slowly decreas- to the U. S. dollar, and ing part of new projects. inflows into Guatemala. cost of living. In fact, the Manager of the G&T Con- ing until it reached the respect the market’s ten- The opportunities and As a result, the FDI has Bank’s website announces tinental Bank, who states current surplus due to dencies. This has resulted potential of Guatema- increased by nearly 400% that its main mission is that: “Guatemala is one the inflow of remittanc- in the appreciation, or la’s financial sector are since 2003. The objective “to promote the stability of the countries with the es, mainly coming from increase in the value, of enticing. Recinos Rivera now is to reach sustained in the general level of most extraordinary eco- the United States (what the quetzal, “something believes that “it is in growth levels of 6 % of the prices.” nomic stability, for in the is known as “remesas”). that other Latin American the insurance industry Gross Domestic Prod- last six years it has kept to This year the increase currencies have not been where one of the greatest uct (GDP). This growth, TARGETS the goal established by the of cash transfers has hit able to achieve,” Linares opportunities of inver- coupled with the creation Bank of Guatemala.” a record of 16 %, which Martínez notes. sion await.” At the same of new jobs, targeted at 1 Back in the 1990’s, the At the same time, a new means that more cash At the same time, the time, he points out that million between 2012 and country decided to adopt bill has been recently comes from transfers than Rural Development Bank other sectors also offer 2032, will also allow the specific targets to allow introduced in Congress from exports. The cash (Banrural), which han- promising opportunities, country to reduce its high economic growth. Thus, it (law 5157) aimed at pro- flow into the country has dles 51% of remittance such as the tourism sector, poverty levels. was in 2006 that the spe- tecting investors as well as also benefited from good transfers, has created a energy, and mining. For A positive sign of this cific inflation-control tar- introducing four impor- exchange policies, low oil program alongside the that reason, and in order expected growth is the get was implemented by tant pillars: strengthening prices, of which Guatema- Foreign Affairs Ministry in to encourage growth, the macroeconomic stability the Bank and the Govern- supervision; improving la is a net importer, as well order to offer Guatemalan priorities at the Bank of of the country. This will ment of Guatemala. The the capital of banks; as considerable growth in expats the opportunity to Guatemala are focused on make growth possible, Monetary Board, which is extending lines of credit exports. invest back in the coun- keeping a low and stable especially in relation to the major regulatory body and loans in order to Additionally, the try. Its President, Mrs. inflation. Recinos Rivera new international markets of the country, has estab- avoid debt and eventual exchange rate policy ac- Carmen Rosa de León is optimistic and reassures and potential investors, lished a target that aims to default; and guarding and quired in 2001, has been Escribano, is aware of the the public that “in the as the present conditions keep a total inflation at 4 protecting institutions very flexible and benefi- fact that “today we have measure we achieve this offer a good prospect with % with a variation of 1 %. against any backlash from cial to the country. The a new kind of immigrant, goal, our investors and respect to profitability. Recinos Rivera is proud any international or global value of the Guatemalan one who is concerned consumers will have confi- Sergio Recinos Rivera, that the target has been economic crisis. Thus, this quetzal is largely deter- about the way his money dence in our quetzal.” President of the Bank of achieved so far. law would allow the Bank mined by the interaction is handled and invested, is The fact that Guatemala Guatemala, notes that “We have been suc- of Guatemala to tempo- of demand and supply. technologically connect- is a growing and stable “Guatemala’s average cessful in achieving the rarily inject capital in all The only restrictions are ed, and has a new vision economy highlights its growth in the last six years goal set by the Monetary responsibly managed compliance with an- of the economy.” Thus, tremendous potential, for, has been of 3.7%, which Board, as we have been businesses or institutions ti-money-laundering laws, institutions such as Banru- even though there is much is the greatest among within target in the last in the event of an interna- and terrorism financ- ral are taking advantage of to be done, the conditions emerging economies, and few years, which has tional economic crisis. ing prevention. Thus, these remittances in order are right to ensure that the shows the potential the resulted in a low and There has also been a the Bank of Guatemala to offer those that have reward in future profits country has.” According stable inflation.” This is surplus in the net amount moderates the currency’s left the country a chance is just awaiting potential to him, “Guatemala also confirmed by the econ- of Guatemala for two volatility, so as to keep a to give back to Guatemala investors. 4 SUNDAY OCTOBER 15TH 2017 AN INDEPENDENT SUPPLEMENT BY BUSINESS REPORTS ON UNIQUE MEDIAS TO THE MIAMI HERALD FACEBOOk.COM/BRUMREPORTS Guatemala

AGROINDUSTRY Cacao is selected among the best

even years ago, exploring all the benefits a Guatemalan cocoa has as a recog- family with an nized superfood, and is abandoned commercializing it as S“finca” (farm) located in Kacaou nibs, powder, the heart of the Mayan or for those seeking a civilization, alongside bean-to-bar technique, one of the most beautiful unroasted beans. rivers in Guatemala, Rio Cocoa production, a Dulce, was approached non-traditional product by a Danish corporation in Guatemala, is growing offering a partnership to without boundaries on grow cocoa. So on this their farm as a perfect ex- 148 - acre fertile land, ample of how a commod- they started cultivating ity’s value grows when fine cocoa, Trinitar- quality is set as a priority. io-Mayan Red, with Shortening the chain COFFEE A big part of the country’s production is artisanal and comes from small farms with almost no opportunities for get financing passion, dedication, and and selling directly to the best standards under clients is also a Kacaou the brand Kacaou. trait. Kacaou Farms is In spite of just having featured on “Yellow started their first harvest, Seed”, a conscious trade A large variety of Kacaou was recently se- network where farmers, lected as 1 of the 50 best buyers, and members beans of the 167 samples work together to promote from 40 different coun- equality, ecological con- food all year-round tries for the Cocoa of servation, and communi- Excellence Programme, ty resilience, starting with a global competition cocoa. Their platform recognizing the work acts as an informational AGROINDUSTRY MOVES US$ 5 BILLION A YEAR ON EXPORTS OF TRADITIONAL of cocoa farmers and hub and a marketplace AND NON-TRADITIONAL PRODUCTS, WHICH ACCOUNTS FOR 40% OF THE TOTAL celebrating the diversity to create a trade network of cocoa flavors. Every deeply rooted in the two years, this unique exchange of trust. Their cific and Atlantic oceans, says. Guatemala’s coffee motion, and marketing . program spearheaded by mission is to accelerate BY JUAN CARLOS CORTES so that the country’s is unique in the world, as “Most coffee production Bioversity International positive social and envi- products can be exported it grows in volcanic soil is artisanal and comes and Event International ronmental impact by con- griculture plays anywhere in the world in at high-altitude, giving it from small farms with al- recognizes quality, flavor, necting global farmers to a central role record times. a special consistency and most no opportunities for and diversity of cocoas ethical trade opportuni- in Guatemala, Given its microclimates, flavor. financing”, Batres notes. according to their origin. ties, and they envision a as the coun- Guatemala is also able to Recent years have In contrast, the exports The Ponce Family ethi- future where global Atry’s economy depends produce a large variety of been hard for the coffee of non-traditional products cally harvests their cocoa food supply chains are greatly on the production products all year- round. industry comparing the have grown exponential- from its origins, and nourished through a web and export of agricultural “The country should be price of the comodity and ly. These products have their products are 100% of agroecological farms products. The agroindus- known as the land that the cost of production. been very successful in natural and free from ar- and respect the labor and try represents 14% of the feeds the world, ” defends According to Luis Roberto the United States and in tificial additives, colors, love that producers put GDP, in exports that total Mario Méndez Montene- Batres, President of the Canada, especially during and preservatives. They into their products, and US$ 5 billion a year in tra- their winter season, and are true believers in the land where the food ditional and non-tradition- Spain, which is the door to health conscious quality is grown.“Kacaou has al products; this represents “WE ARE WORKING IN ORDER TO the rest of the European food, whether for mak- adopted this method to 40% of total exports. Union. ing chocolate or for other get our products out to Production is centered SITUATE GUATEMALA AS THE TOP The local market is also uses of cocoa. Mariel the world,” says Mari- on traditional products WORLD-PROVIDER IN THE REGION” promising, according to Ponce, who joined her el. She tells us that, via such as banana, sugar, and Niels Leporowsky, Pres- mother on the business, networks and marketing, MARIO MÉNDEZ MONTENEGRO coffee, and more recently, Minister of Agriculture ident of the Agricultural has associated the brand she is positioning their it has included non-tra- Chamber: “it is in this area with a healthy lifestyle products among the best. ditional products such as that the opportunities for cocoa, ornamental plants, gro, Minister of Agricul- Association of Coffee Ex- development are greater”, mango, citrus, avocados, ture. “We are working in porters (ADEC), they are he says. berries, papaya, melon, order to situate Guatemala committed to improving Exporters face many peas and honey. “In fact, as the top world-provider the efficiency, quality, and challenges, because of the non-traditional exports in the region.” competitiveness of the present conditions of roads represent 75% of all agri- He believes that the way coffee exporting sector and ports. cultural products,” notes to make this possible, is by advocating to improve Producers also note that Carlos Salazar, Manager to invest in small produc- export regulation, proce- they have been affected by of Guatemala’s Exporters ers and integrate them dures, and transparency. the value of the quetzal, Association (AGEXPORT). within the production They also offer training the national currency, as The contry is blessed chain offering access to on efficiency, logistics, the current exchange rate with over 300 microcli- the international market. transportation, and is not competitive. On top mates, volcanic soils, and “The coffee industry for security, information on of that, minimum wage a very strategic location, example has tremendous leading-edge milling and regulations are driving up with access to both the Pa- chances in abroad”, he sorting technology, pro- the cost of production. Cacao

Florida under Pure Fresh, within the United States as and private companies has obtained international which handles the sales well.” Planesa also works in the United States and certifications and stand- Guatemala’s best and distribution of their with a selective group of Europe in order to obtain ards, such as the Good produce. The Guatemalan farmers in Guatemala the best genetic materials, Agricultural Practice fresh produce company also exports and Mexico. At the same plague-resistant seeds, and (Global GAP), the Good to Canada and Europe, time, Castañeda declares the highest productivity Manufacturing Practices especially during seasons that the company is very per square foot in order to (GMP), GFS Primus and BY PABLO ITURRIETA where produce cannot be involved in the generation maximize production.” HACCP standards, as well grown there. “Our fruits of employment throughout “Planesa stands at the as organic certification. oberto Castañe- and vegetables are sold these countries, which, edge of global develop- “We are conscious that da, president of at all major supermarkets given the levels of poverty, ment within the farming our products must be of Planesa, is posi- across the United States, has a positive and very val- industry. The results are the highest quality, so that tive that there is Canada, and Europe,” uable social impact in the evident in the freshness consumers do not take any Ra bright future for Guate- Castañeda proudly states. region. The exporter works of our fruit and vegetable risks,” Castañeda states mala as a world-leader of Planesa is venturing into closely with various re- products, due to careful in reference to the FDA’s fresh produce. the Asian markets, such as search institutions in order growing, harvesting, Food Safety Moderniza- Planesa is a fami- in China and Japan, and in to offer the highest product packaging, and efficient tion Act (FSMA), which ly - owned company of the Middle East, especial- quality. “We have invested shipping,” he argues. enters into action later this 30 years and based in ly Kuwait. “We are also a lot in research conduct- In order to succeed in year and which targets Guatemala, with branches “OUR FRUITS AND working to start producing ed by foreign universities various markets, Planesa contamination prevention. in Mexico, and leader in VEGETABLES ARE the growth, shipment, and exportation of blackber- SOLD AT ALL MAJOR ries, raspberries, blueber- SUPERMARKETS ries, green beans, snow ACROSS THE UNITED peas, sugar snap peas, and STATES, CANADA yellow and green pattyp- ans. Roberto Castañeda, AND EUROPE” the company’s president, ROBERTO CASTAÑEDA, noted that the Mexican Presidente of Planesa branches, located in 5 states and under the name of Fresh Harvest Interna- that their high-quality tional, opened 14 years ago products are available “due to shipping costs for during all seasons, so that its proximity to the U. S. what is being sold in the market,” since American markets abroad is always supermarkets are their fresh. “This is the key to main buyers. The location our success.” of Planesa’s farms in Gua- In the United States, temala and Mexico ensure Planesa operates in FACEBOOk.COM/BRUMREPORTS AN INDEPENDENT SUPPLEMENT BY BUSINESS REPORTS ON UNIQUE MEDIAS TO THE MIAMI HERALD SUNDAY OCTOBER 15TH 2017 5 Guatemala Sugar: sustainable productivity ELEVEN SUGARCANE PRODUCERS JOINED FORCES TO BE MORE COMPETITIVE. THEY HAVE A SPECIALIZED EXPORT TERMINAL, A CENTER OF INVESTIGATION, AND ARE CREATING VALUE TO THE COMMUNITY VIA SOCIAL PROGRAMS

BY PABLO ITURRIETA Herbert González, Association had to invest impact on students. The president of the Associa- in taking care of natural learning achievement tion’s Board of Directors, resources and in infra- levels for the rural areas uatemala is states that the association structure building in where the program is the largest is a partnership of the 11 order to compete interna- held were higher than sugar produc- sugarcane producers, all tionally. As an example, the national average for er in Central of them private companies González points out that both reading and math. GAmerica and it contends and without state sup- the Association built a There is also a municipal globally as a sustainable port. They joined forces port terminal in 1991, program that promotes competitive sector with to be more competitive Expogranel, where 72% of greater citizen partici- high technology and a by having a specialized the sugar produced is sent pation and self-manage- well-trained workforce. export terminal, a center out to other parts of the ment. “The opportunities It employes over 77,000 for investigation, and also world. It was the fourth and tools the industry people, 5% of the formal creating value to the com- largest net- exporter in provides its employees, jobs in the country. munity with social pro- the world in 2015 and the their families, and their Since sugar is a com- grams. They understood global leader in port load- communities are creating modity, Guatemalan pro- that without a high level of ing efficiency, combining more sustainable and in- ducers have invested in productivity, it is impossi- shipping technology and clusive citizens and socie- being competitive in the ble to remain afloat in the techniques, with a skilled ties, where social progress international market. One world market. workforce to ensure an is possible for current and of the main challenges the The industry’s efforts effective and efficient future generations”. He industry faces is the price to be environmentally process. Now a shipment adds that the Associa- factor: they know how and socially sustainable of 30,000 metric tons it´s tion’s Board believes that much it costs to produce include a daily schedule, loaded in 18 hours. the key for their success sugar, but they don’t know outfits, and nutrition and Herbert González is the implementation the price that sugar is hydration plans for the points out that another of an integral role in going to be sold. The key, cane cutters that have key factor in the growth the country’s efforts to then, it´s to deliver value- been carefully developed EXPOGRANEL The terminal is the world-leader in loading efficiency of the industry is social tackle social inequality added sugar to buyers to protect their health and development. Fundazu- and promote universal (raw bagged or crystal wellbeing. Those ad- nity to diseases: “these in energy generation; the carfoundation, created wellbeing, ensuring a safe sugar), which requires vancements in human and crops have been carefully sugar industry provided by the Guatemala sugar work environment and high standards that have labor rights have helped planted through precision up to 32% of Guatemala’s industry, offers local com- additional services that go led Guatemala to become strengthen not only the agriculture to use land electric energy during munity members educa- beyond the legal obliga- the second largest export- skills of its employees, and water resources in harvest time. In addition tional programs focused tions, such as advocacy er in Latin America, and but also their families and a sustainable manner, to bagasse, ethanol is on fostering good health in public health, financial the third most productive local communities. limiting the impact on another byproduct that and wellbeing, education, responsibility, training, in the world. Another key of the the environment and the is made from molasses, and community and local and education for person- Sugarcane is a high- en- industry’s success, communities surrounding a residue from the sugar development. Since it al advancement. ergy plant that not only according to the Associa- it”, says González. process and one further began in 1990, 520,000 In the southern region produces sugar, but also tion’s president, has been “The sugar sent out for diversifying production women have attended of the country, 9 out of 10 energy sources such as ba- to research and develop domestic consumption is and advancing the indus- the program “Mejores Fa- of people surveyed know gasse and ethanol, which technological innovations. fortified with Vitamin A, try’s efforts to be environ- milias” and have learned either a friend or close are important byproducts Sugarcane is researched used to prevent child- mentally sustainable. So about public health, child- family member who works from the processing. by dedicated scientists at hood blindness, an effect the industry runs its mills care, self-advocacy, and in the sugar industry. The There is a huge potential Cengicaña, the research of malnutrition. Since during the harvest season community building. future of Guatemala’s to expand the byproducts. facility created to advance implementation, over 30 and exports the excess More than 12,000 sugar producers is bright That success is credited to sugarcane production in years ago, Guatemala has energy produced. teachers, directors, and but must meet challenge them coming together to Guatemala, to determine essentially eradicated Unlike other countries administrators have been to be more productive and form the Sugar Producers’ which breeding varieties childhood blindness.” where the government educated to develop and compliant in environmen- Association of Guatemala, have greater productivity The bagasse left after provides subsidies to improve technical skills tal and social issues to be ASAZGUA, in 1957. and have a greater immu- the sugar is made, is used the producers, the Sugar that will have a greater sustainable over time.

Guatemala by offering even more competitive salaries that are higher internationally.” than the national mini- One of the reasons of mum wage. Even though the company’s success this means a disadvantage has been their goal to regarding competitors, offer organic fruit, reject for Bolaños this is far invasive chemical spraying more important than any of their produce, and offer other issue. That program transparency regarding the is the one that got them production chain. “Ba- nominated for the Unile- nanas have penetrated the ver Global Development market long ago; however, Award. it is the production of or- AgroAmérica has part- ganic one that is doubling nered with the University every year, and we will of Colorado, and funded a offer the product millenni- center for human develop- als are looking for.” ment in their area operated Another factor for by members of the uni- AgroAmérica’s growth is versity. As a result, people Guatemala’s location in from 21 nearby communi- relation to its consumers’ ties have access to a world- markets, especially the fact class medical center. This that the company handles has helped drastically its own shipping and deliv- reduce the rate of infant ery. “Every time we send mortality and malnutri- a shipment to Canada and PRODUCTION AgroAmérica produces bananas at high rates every day of the year, guaranteeing secure jobs to 13,000 people tion. Five years ago the the United States the ship rate of child malnutrition is back to take another load death it was 5 a year. Two within a week,” Bolaños years later, it dropped to tells us. This probably Banana exporter focuses on zero. They also created a explains why their produc- credit union for its employ- tion accounts for 38% of ers, so that the members the U.S. market, from 20% the production of organics have access to loans that 15 years ago. The company otherwise would have has also benefited from been impossible for them the decrease in production

BY PABLO ITURRIETA origins date back to 1958, Banana production has of rural areas with extreme to get. AgroAmérica is the in the Philippines, so that when his father started the advantage, over any poverty can be corrected first company of its class in now the Asian market is growing cotton on Gua- other crop, that it produces through job opportunities, the world to be certified in open with opportunities. hen Guate- temala’s southern coast. throughout the 52 weeks education, healthcare, and all current standards: ISO One of the challenges mala-based His four children joined of the year. AgroAmérica appropriate conditions,” 14001, Rainforest Alli- the company faces, AgroAméri- the company back in 1985, took advantage of this Bolaños believes. ance, Global GAP, RSPO, however, is the lack ca was and since then, it has been fact not only to produce “We are here because of BASC, and Kosher. “This of infrastructure nominatedW for the Unile- growing non-stop due to at a high rate every day of the great labor of our peo- is no easy task, especially in Guatemala’s ver Global Development its competitive market ad- the year, but also to offer ple, and therefore it is our when you have to train all transportation system. Award for their Living vantages, as it has direct secure employment to its duty to create opportuni- of your personnel to work This is the main reason Wage program, or when it access to the U.S. market, more than 13,000 employ- ties that will benefit them, according to world-class why AgroAmérica has was awarded supplier of and through Central ees. Given the fact that one as well as the company.” standards.” This sets the handled its own produce the year by two of the lead- America’s ports, to both of their characteristics is to He points out that “it company ready for later through land and sea ing retailers in the world it Europe and Asia. offer a fair wage, it is usu- is an injustice if you lead this year, when the FDA’s transportation. Yet, was an incredible achieve- It took a while to be ally the first choice among a company with 21st cen- Food Safety Moderniza- Guatemala’s ports, which ment for the company. where it is today. In 1973, unemployed laborers, as tury standards in an area tion Act (FSMA) enters offers access to both the AgroAmérica is one of when the company went well as setting its program where people live 50 years into action. This food safe- Atlantic and the Pacific, the largest producers of bankrupt and all that as one of the most efficient behind”. Bolaños be- ty law aims to ensure that are in need of renovations fresh fruit and palm oil in their father had left was a to fight poverty in the lieves that they have to do the U.S. food supply is safe and modernization. Central America, offering small banana plantation, region. “This vision comes “more than what the laws by shifting the focus from “Guatemala’s banana world-class transportation the company shifted its from our tradition of un- require,” in order to fight responding to contami- exports have risen from and logistics services. production to become the derstanding that the world poverty in an efficient way. nation to preventing it. 60 to 110 million, and the CEO Fernando Bolaños word-leading company has to change for the bet- AgroAmérica is setting Bolaños is confident that infrastructure is seriously told us the company’s that it is today. ter, and that the situation the standard of living in “the company will become lacking in this respect.” 6 SUNDAY OCTOBER 15TH 2017 AN INDEPENDENT SUPPLEMENT BY BUSINESS REPORTS ON UNIQUE MEDIAS TO THE MIAMI HERALD FACEBOOk.COM/BRUMREPORTS Guatemala

INTERVIEW ~ FELIPE BOSCH “We need strong institutions”

FUNDESA’S PRESTIGIOUS LEADER most important – and which will create these job THINKS DUE TO POLITICS’ opportunities – is to focus on infrastructure. CORRUPTION CRISIS, THE COUNTRY Pollo Campero has CAN ONLY THRIVE IF IT FOCUSES FIRST presence in 13 countries, ON FIXING ITS INSTITUTIONS is a leading brand in the area, going globally, even in the USA What are the BY ROBERTA BRUM malan government. But corporation’s priorities? what we definitely cannot do is think that nothing FB: The sectors are always hile in Guate- happened. Chapter one the same. CMI is a family mala, we real- for us is to speak more business according to us ized that the with other sectors, includ- and we want it to stay in private sector ing political parties, and the family because it gives Wis committed to building to have an agenda, a list us identity, still being a a prosperous future for of areas we need to work corporation. The areas the country, with many on related to national where we act are very initiatives to transform the laws that have not been defined, and then maybe national reality. FUNDE- addressed yet. We need a this means the business SA is certainly the most civil service law, because has the greatest room for active of them, led by its every government we get progress, but it has its own enthusiastic and passion- comes in and arrives with strategy and focus for the ate president Felipe Bosch new people, so we are USA, where we will contin- and working with many practically reforming the ue building franchises, but business people united with state every four years. The also developing individual the same sense of national second issue regards state restaurants. It’s not a strat- pride. Bosch is an innate resources. Incomes and egy made up by us; we’re diplomat, lobbying for his outgoings; the measures following market leaders. country inside and outside of spending that the gov- boundaries, defending his ernment must disclose I know the company is beliefs with vehemence. to the population. Third, concerned by the chronic Felipe has promoted several related to the agreement malnutrition that affects projects of social order and signed a few years back, Guatemala, and has a economic development. convention 169 of the program for that... He also In another hand, International Labour he also sits on the board, Organization, regarding FB: Thanks for bringing together with his brothers, community consultation that up. Yes, we have of Corporación Multi in indigenous areas. We always been paying atten- Inversiones or CMI (the need to agree on who tion to Guatemala, and... one behind the restaurant performs the consul- well, my mother was born chain Pollo Campero), one tation (nowadays the in a little village, and being of the biggest corporations government does), what LEADER Felipe Bosch always get involved in projects of social order and economic development there I saw there are many in Central America. questions are asked, and projects that the founda- We arrived at his office on whether what emerges tion could be working on, a sunny afternoon, which from it is binding, and alongside the town coun- matched well his words how it is binding. FUNDESA’s initiative to improve the country cil. We eventually agreed full of hope, ambition, and The final point is how on nutrition. It created inspiration and his positive government hires. The such a positive change that vision about the future of contracts that are written The Foundation for the and sectors. greater social investment in the head of the founda- Guatemala, besides – and up must be a modern law Development of Guatema- The initiative integrates education and health, giving tion realized we needed above – all challenges on the for an efficient, transpar- la, FUNDESA, is a private, projects, programs, and greater opportunities, with to teach mothers to feed horizon. (We met him again ent hiring process, but non–profit entity, formed technical studies, with the the focus on social develop- children better, and these on a dark busy Monday also selected meritocrati- by business people at a objective of marking a path ment over many years. children, with time, with evening, to update the in- cally, allowing us to have personal level, independent towards a more prosperous, better nutrition, would terview, after an emergency the best value talent. of all sector, guild, or partisan solidarity, secure, inclusive, SAFETY look to the long term and meeting FUNDESA set up interests, founded in 1984 and transparent nation. To Security and justice in the be able to start businesses. at the weekend to analyze There has been a study and focused on promoting accomplish this, they have country, is a situation that So the subtle change she the political crisis regarding done within 25 sectors to sustainable economic and set out three pillars of action must be tackled strategi- made was introducing this the president and the Inter- assess the importance of social development in and a transversal one: cally, with clear goals to idea of entrepreneurship. national Comission against building infrastructure Guatemala. Currently it has be achieved in the short, The Mejores Familias Impunity in Guatemala or in the country. There is 29 donor companies and 88 PROSPERITY medium, and long term, (better families) program CICIG. already a public–private trustees, 21 of them belong- The first pillar of Mejoremos taking into account territorial was nothing innovative, law but that coexists in ing to the board of trustees. Guate is based on the gen- presence, citizen security, but has been implemented How did your meeting go? a judicial uncertainty “Mejoremos Guate” (Let’s eration of more jobs, greater and crime prevention. before. My mother started environment... improve Guatemala) is a investment and better in- talking about rural women, Felipe Bosch: It’s a FUNDESA initiative to gather come, and poverty reduction. INSTITUTIONAL and the idea of empower- complicated situation. We FB: First of all, a dramatic efforts and resources to de- In order to make it possible, STRENGTHENING ing them to educate their need to strengthen insti- change took place in Gua- velop a strategy of advocacy the goal is to reach growth The transversal axis on which children in terms of eating tutions, and the country temala in 2015, the whole in public policy for the inte- rates above 6% per year over the three pillars are placed well, hygiene, dressing cannot thrive if we do not population took to the grated development of the a sustained period. is the strengthening of insti- better… chronic malnutri- focus on institutions first. streets to protest against country. It is a citizen’s pro- tutions for development; the tion is found to be down All we have talked about corruption. From then we posal, to promote dialogue SOLIDARITY need to provide constructive not only to poverty, but is all Guatemalans went saw many changes in the and achieve a countrywide Guatemalans need a solidar- ideas on how to strengthen also to education. Because to vote two years ago, and country and that obvious- plan agreed with other actors ity state, which can achieve the country’s institutions. they are eating, but the this government, as with ly affects both the public choices they are making everything else, needs to and the private sectors. are the wrong ones, choos- undergo a strengthening It affects private sectors ing products with low not just of the presiden- because a new, unwritten micronutrient levels. cy, but of all the other rule, a culture of legality must be supported. sage as businessmen. And in the world. And we are positions. Guatemala is emerges. We used to op- this year with a Trump part of a bridge that pro- If you meet an American the only country in the erate under a complicated You have recently been in representative, VP Pence, vides 80% of what they investor, how will you de- world where there is a business environment Miami as part of Guate- we received a completely are consuming. So that scribe what kind of coun- single organization like with plenty of potential mala’s delegation to meet different one. Naturally 80% will not decrease try he or she will find? CICIG. This unit has been for corruption. And, as VP Pence. How do you see we prefer what we got this unless the market over incredibly valuable to the with many countries, es- the future of their bilat- time, because it is more there also shrinks. This is FB: Guatemala has always country, it really has stuck pecially in Latin America eral relationship? constructive. The differ- a problem that is not the had a great environment its finger in the wound Guatemala is moving ence between the two is same, but that is intimate- for investment over the of a topic as complicat- away from a situation FB: I’m going to try to be the acknowledgment that ly connected. Over there years. Then, many multi- ed as corruption is in all where seeking permission diplomatic... a lot of us some of the problems that they build weapons and nationals left the country of Latin America. And to do business involved think that the USA has a are affecting us directly in those weapons end up be- and left our people alone. this corruption happens direct approval from the sort of highway and that the region, these problems ing the ones used by our In many ways that is the through public officials, state. In the public sector depending on who is in are not only ours, but that drug dealers down here. reason why CMI exists; but also without doubt this is a dramatic affair charge, the vehicle goes our problems are their It’s one thing to know it, CMI and many of the involves businessmen because state officials are on the left or the right of problems. And when you but another thing when national companies that trapped by a corrupt sys- scared of signing papers, road. But in our minds the get a message like this you an official tells it you so remained had a competi- tem, which we obviously which may end with them highway has a set destina- think “Wow this really is clearly. And this begins to tion-free market. Those need to eliminate, and being taken to court. On tion. We assume it doesn’t different. This is the first make the relationship be- that come here today see work on, turning around a the one hand we applaud matter who is in charge, time a U.S. dignitary has tween countries transpar- a powerful market, with culture of corruption into justice, but on the other because it is safe, secure, said something like this.” ent. We are speaking the strong local competition. a culture of legality. hand it takes us to this and everyone knows same language... them in So I believe even today new environment that we where it is going. What we Which problems are they English and us in Spanish, it is very easy to sell the And what do you intend need to learn and under- have learned from this re- sharing responsibility for? but we are talking about Guatemalan market to do as an organized stand. So the first order cent administration is that the same thing. Guatema- because of its value and business group? of the day is to address this idea is not as true. FB: He was talking about la has a lack of opportuni- because of its location, as what is happening in the There, like in any coun- migration. He was talking ties, which is why people geographically, it is stra- FB: No actions. Under country in general. Then try, big differences exist about drug trade, about travel north. Having seen tegically well placed. So CICIG there was an we need to lose our fears between the left and right poverty... And it’s a mat- this, the message from I am sure that a Brazilian agreement signed where and take action. Guate- drivers, and we have expe- ter of mitigating them. U.S. officials was that would give his right arm to the idea is that the two mala has always been a rienced this. Being invited They are not identical, but what we most need here occupy the geographical sides will communicate country open to private last year by the Obama related. For example, the is to create opportunities position Guatemala does, and reach an agreement, investment, national or administration, we saw VP U.S. market is the biggest via investments. Not just with the most powerful the UN and the Guate- international, and this Biden and received a mes- consumer of illegal drugs any investment, but the markets next door. FACEBOOk.COM/BRUMREPORTS AN INDEPENDENT SUPPLEMENT BY BUSINESS REPORTS ON UNIQUE MEDIAS TO THE MIAMI HERALD SUNDAY OCTOBER 15TH 2017 7 Guatemala Textile is the new top exporter APPAREL INDUSTRY OFFERS OPTIMAL CONDITIONS FOR INVESTORS DUE TO EXEMPTION OF DUTIES ON IMPORTS OF MATERIALS AND TRANSFERS OF PRODUCTS, STRATEGIC LOCATION CLOSE TO THE USA, AND ACCESS TO TWO OCEANS

BY STEPHANIE HUBER NUMBERS

ook into your Over closet, and you just might see US$1,525 milion in export a Guatemalan sales Limport hanging inside.

Due to rapid expansion in few years, Guatemala 8.9% has become one of the of national GDP

United States’ top textile More than suppliers, filling American wardrobes with high-qual- 180.000 ity products. Goods jobs are exported to over 70 countries, but 79% of 70 everything comes to the export markets United States. With over US$ 1,525 USA receives million in export sales in 79% 2016, textile production of products represents 8.9% of na- tional GDP, and industrial 173 domestic production is apparel reported at 19%. “Some companies are taken aback by this; they think Guatemala only 36 exports sugar, coffee, and textile mills bananas” says Alejandro JOBS have been created at poor agro areas offering competitive salary, a training programm and even endeavour opportunities Ceballos, president of 81 Vestex, Guatemala’s ap- accessory with the tools to “be ex- parel and textile industry and service porters on their own” with association. The associa- companies their own personal sewing tion itself is composed of machines. 173 apparel companies, Ceballos believes 36 textile mills, and 81 that the sector has the accessory and service potential to triple its companies. earnings, not necessar- The textile industry is not subjected to VAT. ily by becoming leaders number one on the list of The cluster has also in new technology, but Guatemala’s highest- sell- created a productive and by simply hiring more ing exports, surpassing skilled workforce with a workers and investing in coffee, sugar, and banan- culture of innovation and the industry’s most basic as, generating 8.9% of production of high added- tool — the sewing ma- national GDP and more value garments. chine. “A sewing machine than 180,000 direct and The industry sector does not take up much indirect jobs. Ceballo be- has grown and become space, neither is it costly, lieves that earnings from social responsible. All and yet with the right the textile sector could factories are certified, and training, a worker can be even higher, if only Vestex associates comply produce thousands upon the Guatemalan govern- completely with all labor thousands of quality items ment would recognize legislation. Working to sell.” Ceballos strongly the textile industry’s true conditions are optimal and believes that empowering potential. highly regulated, allowing Guatemalans through the The conditions for for higher productivity. textile industry can have investors are optimal Sweat shops are a thing as well as adequate have a factory in their city skills that many women a staggering effect on the since they can benefit of the past — all factories training. “Someone because of the inevitable excel at – and one of Vest- economy if a long-term from two laws that add in the association must new may start out with economy boost that fol- ex’s missions is to provide plan is followed. Accord- competitiveness to the comply to the highest simple patterns and tasks, lows. About 70% of em- empowerment programs ing to him, Vietnam has industry due to exemption standards. According to but we provide training ployees are women – prob- for women. These pro- already surpassed Guate- of import duties and Ceballos, being a socially for learning to make ably because the sewing grams, called “cooper- mala’s exports four times VAT on the materials responsible association is complicated items as processes at many of the atives,” generally target over, simply because they and equipment, and an advantage, rather than well”he explains. factories in the association low-income communities, decided to enlarge their of Internal Revenue a burden, because it opens Vestex companies require multitasking and single women, and single investments in the textile Service for 10 years. the door to trade with both provide opportunities in attention to detail, both mothers and provide them industry. Logistically, it’s a strategic national and international towns in which steady location very close partners and gives the jobs are few and far to the United States, sector a competitive between. They offer a integrated throughout edge. “We see it as an highly competitive salary Central America, with opportunity, ” states in communities in which access to both Pacific Ceballos. “Our desire is to agriculture is the main and Atlantic oceans and set an example.” source of employment. where transfers of goods Incentive programs are According to Ceballos, between free zones is offered to all employees, many governors want to

International fair presents the best of textile industry

Guatemalan compa- el factories, textile mills, workshops relating tocurrent nies produce high-quality trimmings, technology and industry trends. Taught by garments with embroidery, machinery, footwear and professionals and experts, screen-printing among oth- accessories. In 2018, the these classes are open to ers finishing processes.. They annual event will be held in both suppliers and potential handle products that require May inGuatemala City. buyers. details and finishing, and the Apart from providing Through the show, Vestex association has sought help access to suppliers, the trade holds an annual contest in from an unlikely source in or- show also offers seminars which young entrepreneurs der to train its employees for and conferences. Thou- between the ages of 18 this type of specialty work. sands of companies gather and 30 can submit original Guatemalan textile to display their goods and textile designs to win a prize. industry gain an internation- samples. It’s the perfect The fair is part of Vestex’s al reputation for creating opportunity for potential long-term vision to give detailed pieces that are put buyers to meet suppliers of Guatemala and nearby coun- on display every year at the every category in the textile tries access to a worldwide Apparel Sourcing Show, the sector, as r ecent events market. only trade show ofits kind in have boasted more than 180 Through the efforts Central America. Vestex has booths and 150 companies. of Vestex, the festival been hosting the event for The Matchmaking Meet- has grown each year to over 25 years, connecting ing Program, which operates include more suppliers and apparel companies from the through a pre-scheduled attendee’s have steadily CAFTA –DR region (Central agenda, connects customers increased. Vestex’s vision has America) with potential with sourcing companies helped Guatemala gain a clients. The event showcases that fit their needs. The place among the top textile regional trends in appar- fair also hosts a number of exporters in the world. 8 SUNDAY OCTOBER 15TH 2017 AN INDEPENDENT SUPPLEMENT BY BUSINESS REPORTS ON UNIQUE MEDIAS TO THE MIAMI HERALD FACEBOOk.COM/BRUMREPORTS Guatemala Energy law brings country to light GUATEMALA HAS ATTRACTED IMPORTANT FOREIGN DIRECT INVESTMENT, WHICH HAS HELPED CHANGE THE ENERGY SHARE IN THE COUNTRY THAT HAD DISAPPEARED WITH THE DEPENDENCY OF IMPORTING PETROLEUM, VIA RENEWABLES

BY STEPHANIE HUBER right; There is a great ne- cessity to make decisions that will generate progress pproximately for our country,” asserts 10 years ago, Colom. energy experts One objective to in Guatemala generate progress is to Aformulated a plan to bring capitalize on Guatemala’s Guatemalans out of the renewable energy sources, darkness — figuratively as well as natural gas and and literally. Only 4 out of petroleum, and export 10 citizens had access to them internationally. electricity, and electricity According to Luis Alfonso prices skyrocketed, due Chang Navarro, Guate- to expensive petroleum mala’s minister of energy being the main energy and mines, potential trade source. deals have been discussed “At that point, it was just with Mexico, Colombia, a dream,” says Carlos Co- and other Central Ameri- lom, president of AGER can countries. (Association of Renewable “Guatemala exploits Energy Generators). “It only a small amount of its was about transforming resources,” asserts Navar- the main source of energy ro, and adds, “despite the into a renewable one.” circumstances, the energy In 2007, dialogue 2007 2012 2027 sector represents 4–5% of initiated by AGER with GEOTHERMAL national GDP.” Navar- HYDROELECTRIC HYDROELECTRIC 2.9% 51.4% HYDROELECTRIC GEOTHERMAL Guatemala’s government 37.6% GEOTHERMAL 46% 6% ro believes that foreign 2.99% finally allowed plans to investors will find Gua- BUNKER FUEL BUNKER FUEL tap into the nation’s many 36% 11% temala to be “a country DIESEL OIL renewable resources to 0% receptive to investments,” BUNKER FUEL become reality. Solar, 24.31% and that clear rules, legal BIOMASS wind, biomass, hydroe- 13% certainty and long-term DIESEL OIL DIESEL OIL lectric, and geothermal 0.2% 0.16% projections will guarantee COAL COAL 10.4% COAL resources already existed 13.2% SUGARCANE BAGASSE SUGARCANE BAGASSE 18% IMPORTED LNG a return on those invest- 10.1% 6% in Guatemala; it was just a 10.1% ments. question of making deci- Additionally, the sions about how to harvest energy sector has made these resources, and to improve Guatemala’s AGER’s efforts have lars in improvements to ships,” assures Ana Gabri- investments internally, following through. “There infrastructure. Despite allowed Guatemala to the electricity sector. ela Roca, a Guatemalan both in its employees are plans — great ones,” all this, and consistent harvest more than 60% of However, Guatemala’s lawyer and energy expert. and technology. “One of says Colom, “but they are and recent conflict over its energy from renewable infrastructure in general These partnerships have my principal objectives worthless if they are never specific laws that deter- resources, and currently remains highly under- allowed for increased as minister has been to carried out.” mine guidelines electricity 9.2 out of every 10 Gua- developed. “It can be dialogue between private strengthen technicians at Over the years, plenty companies must follow temalans have access to difficult to be optimistic electricity companies and a national level, and we of grand plans have been in order to build dams, electricity. In addition, when a country must deal the government, and have have acquired techno- made, but government bu- mines, and other types of prices for electricity have with poverty and past improved practices over- logical tools to be able to reaucracy, human rights energy plants, the past 10 dropped by half as of 2017, government corruption, all. “The electricity sector take advantage of what conflicts, and poor invest- years have proven to be as Guatemala continues but this is why we believe is an excellent example we have,” states Minister ment have marred efforts profitable. to invest millions of dol- in public–private partner- that things can be done Navarro.

over time more attractive many other countries. The country’s construction for foreign companies.” risk was rewarding, and sector. “It is also im- Guatemala takes the He has had the vision of he is about to inaugurate a portant to fight against opportunities when, after second mill, in El Salvador. poverty, and construction his studies at the Univer- “We are a family compa- has always been a field lead on infrastructure sity of Florida, he re- ny and I do not want to that provides a great deal turned to the country and become transnational. I of jobs to those families analyzed the market. “The am one of those who think in need.” About 10% of BY BRANCA SIMPSON directors of one port and at Monterrey is currently singular cement company that family businesses Guatemala’s population that time made improve- investing and encourag- back there , Cementos Pro- are good and should exist is suffering from extreme ments such as contacting ing foreign companies to gresso, was investing very because of their personal poverty. hen it cruise companies to come invest in Guatemala. “The little in the country for a treatment,” he says. Diaz Duran chose 100 comes to to the country and getting country lacks infrastruc- post-war period where the Diaz Duran is ada- families living in these infrastruc- various ISOs certifications. tures and there are all the country wanted to attract mant that he will keep conditions to help by ture, Rob- “Which were then wasted opportunities to invest, in investments”, he ponders. the group’s investment giving them food every ertoW Diaz Duran has a by the following govern- any field. The one where I That’s when they brought preferences in Guatemala month. “They criticize very complete view of ment,” he reveals. “We believe foreigners should the Mexican brand to the even as it grows slowly to- me because I give, but in Guatemala’s challeng- are so lucky to be one of focus on in is highway and market. Afterwards, with wards the region. “I firmly extreme poverty one is not es – the CEO of Grupo the few countries with two bridges. “What is sought Spanish partners, he added believe Guatemala is on able to learn; they would Industrial Monterrey was oceans, and we are missing is the technology to build a mill to produce very the right track. We are die of hunger before.”He in politics for 10 years and, this opportunity with lack bridges, for example, high-quality and resistant fighting against corrup- concludes by saying that in another role, he has had of investment.” since Guatemala is a cement, offering other tion, one of the country’s he knows the potential the audacity to break the Inland transportation country with many moun- products and shaking up biggest problems, and we Guatemala has and he monopoly in the cement also has its challenges, and tains and rivers that must the market. are taking the right steps, feels this is a way of giving industry. “Guatemala is a he points out enormous be passed over. Plus, we important steps, to elimi- something back to the country with a lot of po- opportunities for invest- are a mining country with RECOGNITION nate drug trafficking.” country that has given him tential. It lacks everything, ments in roads and bridges more than enough mate- Diaz Duran deeply so much. “This is my way most services, but it is also so the country can keep rials for constructions,” The model plant has believes in Guatemala’s of contributing for those a very rich country that has growing economically he believes. “Guatemala, been visited and recog- potential and right now who are most in need”, infinite things to offer,” and socially. “Mountains, unlike Mexico, does not nized by businesses from his priority is to boost the says Diaz Duran. he says. The successful rivers, and having access depend on the United Guatemalan businessman, to two oceans are geo- States. We have a very low twice vice-presidency graphic characteristics external debt, the lowest candidate, has spent years that demand infrastruc- in Latin America, and our investing in his country. ture development and economy is very stable; As a cement producer, knowhow”, he adds. Diaz therefore, it is a very safe Grupo Industrial Mon- Duran says that Guatemala option when it comes to a terrey aims to develop is a country that has been developing country. Right Guatemala’s infrastruc- very affected by climate now, Guatemala is fiercely ture, which is pretty raw change, and been struck by fighting against corrup- nowadays. Roberto Diaz storms and strong hurri- tion and drug trafficking; Duran believes that first canes that have destroyed continuing this fight will priorities should be first the little that was left of its only make Guatemala an on improving the ports. public infrastructure. even more stable country He was on the board of Grupo Industrial and investing will become FACEBOOk.COM/BRUMREPORTS AN INDEPENDENT SUPPLEMENT BY BUSINESS REPORTS ON UNIQUE MEDIAS TO THE MIAMI HERALD SUNDAY OCTOBER 15TH 2017 9 Guatemala

First seven projects will be released soon

1. STATE ADMINIS- air connections. Estimated TRATIVE CENTER: new investment: 200 million office complex built in an USD. old railway station, which would house a range of 5. TECUN UMAN II INTER- government departments MODAL LOGISTICS PORT: currently renting office space. This logistics terminal, located Estimated investment: at a border crossing with 240 million USD. Mexico, would serve both rail and freight trucks, to allow 2. METRO RIEL: The star for a smoother handling of project of the portfolio customs and improve import– involving a redesign of public export efficiency. transport in Guatemala City Estimated investment: 40 by building a new urban million USD. electric railway. It aims to reduce the transit time across 6. ESCUINTLA – PUERTO the capital by as much as QUETZAL HIGHWAY: The ROADS are one of the most urgent neccessities of the country. The gap in this infrastructure compromises competitiveness in many sectors 80%. Estimated invest- most advanced project in this ment: 770 million USD. list, this would see a road upgraded into a modern 3. NOR-ORIENTE EX- highway through a public–pri- PRESSWAY: The con- vate partnership. This tender Many infrastructure struction of a new highway is going out in October 2017, to connect Guatemala’s high- with five international private way to the Atlantic with its companies having already highway to El Salvador. This pre-qualified to participate. projects to announce would form part of a larger Estimated investment: 65 project to build a beltway million USD. around Guatemala City. The GUATEMALA HAS CREATED A PUBLIC PARTNERSHIP LAW TO ENCOURAGE project is to be tendered in 7. BARBERENA BYPASS: 2018. Estimated invest- This highway from Fray INVESTMENTS AND WILL RELEASE MANY ELICITATIONS NEXT YEAR ment: 180 million USD. Bartolome de las Casas to Barberena would run for BY CHRIS DALBY To counter this, the Guatemala’s fledgling in Guatemala, he is 4. MODERNIZATION OF 12.4 kilometers and is part government’s cautiousness infrastructure sector, upfront about the political LA AURORA INTERNA- of the larger Regional Ring can be commended. Angelo Telo, president changes that sorely need TIONAL AIRPORT: As this mobility plan, seeking to uatemala has hit Instead of a scattergun of the Tubac steel to happen. Currently, airport is the main entry provide the public with more upon the idea approach involving company, says that the approval for public–private point into Guatemala, the transport alternatives. This of seeking more numerous projects, it country “needs to adapt partnerships can only government sees the urgent bypass would reduce travel FDI as a way to has focused on saving rapidly to the average come from Congress. need to improve its level of time to both El Salvador and Gbegin work on a number money for its most global infrastructure However, the legislative services, modernize its infra- Honduras. The tender would of important areas. This important needs, such as standards. This is already body is only permitted structure, and raise its overall be for construction and 20 kind of investment could newer roads, improving affecting the industrial to approve or reject efficiency. This would also years of operation.Estimated lead to jobs, which will in and widening current sectorHowever, industry contracts, not to modify help to promote domestic investment: 35 million USD. turn reduce poverty and ones, and overhauling cannot resolve these them, resulting in slow improve the economy. its ports. Only 20 % problems alone; it is a and opaque bureaucracy. Most of the opportunities of the infrastructure political challenge.” He believes that changing for FDI will be on budget approved through Adopting a quality this would see the private infrastructure, one of the September 2017 has been over quantity approach, sector coming up with most urgent necessities of spent, due to challenges it has launched a “first their own projects. the country. with finding contracts with generation” of seven “Today, if a private entity So far in 2017, the the state. In the short– projects, seen as among proposes an interesting government has been term, industry chiefs are the most important for project, we cannot give trying to spend its recommending the law for the country. Roberto it authorization to begin. infrastructure budget state tenders be approved. José Sagastume Flores, In other countries, these wisely. This has not In order to help ANADIE’s executive are called unrequested proven easy. Foreign overcome any doubts director, believes “the first proposals and they companies are becoming among potential investors, experiences have been generate greater trust.” increasingly demanding Guatemala passed its very good. There is already The aim is that such about transparency in Public–Private Partnership a lot of interest from large, investments will help to concessions after the Law in 2010 and created well-respected foreign improve development, Odebrecht scandal has a dedicated infrastructure companies.” reduce social inequality, exposed corrupt ties development agency, While Sagastume Flores narrow the wealth gap, between governments and ANADIE in 2013. is confident that these and make Guatemala construction companies Explaining the tenders will begin a new more competitive in the across the region. challenge facing wave of foreign investment long-term.

is indicative of a larger gests that the government deal and as such is highly change the landscape of Law changes are issue coming to light: the should work to increase influenced by the polit- Guatemalan businesses merits and downfalls of protections for compa- ical climate; leading to while taking advantage needed to get FDI foreign investment in nies by implementing uncertainty in outcomes,” of some benefits already Guatemala. Broad laws faster and more effective says Gonzalo Menendez, set in place. Guatemalan and differing interpreta- arbitration and media- senior partner at Lexin- growth has been spurred

BY DANIEL ARBELAEZ and desist from work tions have contributed to a tion. His partner, Jorge corp. Juan Pablo Carrasco by diverse advancements until a new agreement is certain lack of confidence Luis Arenales, adds that of Central Law- agrees in large sections of local reached with the indige- in the Guatemalan state. the administration can with the changes to the business, with up to 80% n June 22nd, nous people of the region. Companies that work modernize its processes bill to bypass Congress. of investments starting 2017, the Guate- The United States based with foreign investors to incentivize business by If the government is able and staying at a local lev- malan Supreme company that controls the such as Central Law and using technology to speed to change this provision, el, according to Menendez Court (La Corte operation alleges that they Lexincorp see ways to up business registrations: more infrastructure cam- of Lexincorp. The laws are OSuprema de Justicia), ruled have previously communi- fix parts of the judicial a process that currently paigns like those in energy already in place to foment that the mining operations cated with the indigenous system to better suit the can take up to a year. can be brought over. business, but need clarifi- of the San Rafael Mine, people as required by the growing country. Jose “The bill requires These changes to the cation that can only come must stop all production law. The specific situation Pivaral of Arias Law sug- Congress to approve any law could dramatically through experience.

Guatemala - Belize - El Salvador - Honduras - Nicaragua - Costa Rica - Panama - Mexico

INNOVATION TECHNOLOGY QUALITY Steel for life

Contact us PBX: (502) 6644-6644 PBX Ventas: (502) 6644-6676 Km 11.5 Carretera a San Miguel Petapa Finca El Frutal, Guatemala, C.A. [email protected] - www.tubac.com.gt 10 SUNDAY OCTOBER 15TH 2017 AN INDEPENDENT SUPPLEMENT BY BUSINESS REPORTS ON UNIQUE MEDIAS TO THE MIAMI HERALD FACEBOOk.COM/BRUMREPORTS Guatemala

GASTRONOMY Fusion of flavors

mix of Spanish and Mayan cul- tures led to what is now known asA Guatemalan cuisine, which includes offerings such as tamales, pepián (spicy meat stew), and jocón (chicken in tomatil- lo-cilantro sauce). Beans, rice, and corn tortillas are daily staples. Traditional beverages include horchata, tama- rind juice, coffee, and hot cornstarch drinks. Res- taurants throughout the country delight in serving colorful traditional dishes. The cities of Guatemala and Antigua offer a great deal for the foodie traveler with tantalizing choices of international cuisine restaurants, from sushi, Mexican and Italian to French. Heart of the Mayan world RICH CULTURAL AND ENVIRONMENTAL DIVERSITY PLUS AN EXTRA FRIENDLY POPULATION DISTRIBUTED ACROSS SEVEN ASSORTED TOURIST REGIONS EXCEED VISITORS´ EXPECTATIONS

BY REBECCA GLEASON venture abounds in Petén, where the Maya two of the most popular activities. Biosphere Reserve provides opportunities to Marine life is plentiful – the majestic sea explore virtually untouched jungle. turtle and humpback whale make their home even incredible touristic regions span Izabal takes visitors to beautiful Caribbean here. The mystical Eastern region offers a Enchilada the country: Guatemala, Altiplano, beaches in northeast Guatemala. The envi- cloud forest with over 885 species of mam- Petén, Izabal, Verapaces, the Pacific, ronment in this area is distinct from others, mals, birds, and reptiles. It is also known for and the Eastern. The first is home to with warmer weather, mangrove forests, and its delicious local cuisine. Sthe nation’s capital and provides an extraor- diverse aquatic life. Verapaces is a sanctuary Guatemala offers modern city experiences, dinary fusion of the modern and colonial for outdoor enthusiasts. Visitors can explore diverse ecosystems, archaeological sites, and among its 25 distinct zones. Altiplano exudes waterfalls, mountains, and caves as they colonial architecture alongside the living Mayan culture, both past and present. It is make their way through the forests. Mayan culture. home to traditional indigenous villages as The Pacific region is the perfect place to This hidden gem of Central America can- well as numerous archaeological sites. Ad- enjoy the beach. Surfing and sport fishing are not be missed.

Frijoles blancos

Torrejas or molletes

PETÉN Tikal and Yahxá

he 13,423 square- Yaxhá National Parks. lagoons of Yaxhá and Sac- foot Maya Tikal contains more than nab and enjoy one of the Biosphere Reserve 3,000 archaeological most beautiful sunsets. produces so much elements and Yaxhá holds The town of Flores, Toxygen it has been called more than 500 monu- an island in Lake Petén one of the lungs of the mental buildings between Itzá, is the gateway to planet. squares, causeways, astro- tourist activities in the It can be accessed on nomical complexes, and surrounding region. horseback, by canoe, on a commemorative plaza Picturesque restaurants, foot and, in some areas, with twin pyramids and hotels, markets, and by helicopter. the Acropolis. traditional food vendors Petén has great his- From the highest mon- make Flores the perfect torical value. Among its ument, Temple 216, you place to stay while in the many sites are Tikal and can see the jungle and the neighborhood. FACEBOOk.COM/BRUMREPORTS AN INDEPENDENT SUPPLEMENT BY BUSINESS REPORTS ON UNIQUE MEDIAS TO THE MIAMI HERALD SUNDAY OCTOBER 15TH 2017 11 Guatemala

ANTIGUA GUATEMALA Colonial charm

useums, contemporary art, early markets, printed material, and a churches, and variety of other of histor- ruins bring ical interest. Churches, Mthe past to life while many built in the 17th walking around the city century, add another of Antigua, just a short historical component distance from the capital. while lending a romantic The place has a bohe- air to the city. Antigua is a mian charm and great popular location for wed- historical value, where dings and other events. you can appreciate the Throughout the city, nu- Spanish colonial herit- merous hotels offer tourist age in contrast to three accommodation and pro- volcanoes that surround vide space for conferences it like guardians: The and business meetings. Water Volcano, the Acat- When it comes to food, enango volcano, and the Antigua has a wide vari- Volcano of Fire, with an ety of restaurant options, altitude of 3,763 meters serving both international above sea level and one and local cuisine. of the most impressive Markets and shops sell in Central America, due textiles, ceramics, silver to its recorded eruptions. and gold items, leather This historic village, once goods, and jade – items capital of the Kingdom traditional to the region. of Guatemala, it was Other activities and tours, declared a Cultural World provided by ranches and Heritage Site in 1979. farms, include horseback Museo del Libro Antig- riding, ziplining, moun- uo and the Archeological tain biking, birdwatching, Museum provide oppor- coffee tasting, golfing, tunities to see archeolog- hiking, and bathing in the ical remains, colonial and hot springs.

ATITLÁN The most beautiful lake in the world

ailed as one of surroundings, have been the most beau- deemed protected areas. tiful lakes in the Lake Atitlán is bor- world by National dered by a number of HGeographic and British villages, which are the author Aldous Huxley, perfect combination of Lake Atitlán is a jewel of traditional Mayan culture Guatemala. and modern accommo- It is the deepest lake dations. in Central America, with Visitors can enjoy a a maximum depth of guided hike to a volcano 1,120 feet. Three volca- or nature reserve. Tours noes border the south- of the lake, villages, and ern portion of the lake. markets are also available They, along with other daily.

PACIFIC AND IZABAL Black & white beaches

ew places in the On the other side, world can presume Izabal, bordering the to have a black vol- Caribbean Sea, is home to canic beach. In the diverse plant and animal FPacific you will find them, species. alongside with natural One of its several nature reserves home marine tur- reserves is Río Dulce, tles (and cute baby ones), holding the largest lake in iguanas, and crocodiles. Guatemala, Izabal. More than 300 kilom- Livingston town – white eters allow surfing and sand, palm trees, and crys- other water sports, as well tal water – is a paradise as an environment to rest. accessible only by boat. 12 SUNDAY OCTOBER 15TH 2017 AN INDEPENDENT SUPPLEMENT BY BUSINESS REPORTS ON UNIQUE MEDIAS TO THE MIAMI HERALD FACEBOOk.COM/BRUMREPORTS Guatemala

FISHING TOURISM Enviable concentration of sailfish THE COUNTRY HAS SIX TO EIGHT TIMES MORE OF THESE FISH THAN ANYWHERE ELSE IN THE AMERICAS, ALLOWING FOR AN AVERAGE OF 15 BITES PER DAY PER BOAT, A RATE THAT COULD SEDUCE ANY FISHERMAN IN THE WORLD

BY CHRIS DALBY malan coast to be exactly as a fishing destination, Marina to focus on its core penny-pinching. “Our unique quantity of fish to their liking. and of raising funds is mission: offering world- clients consider us among Guatemala has on offer. Also known as billfish to through an annual tour- class sport fishing to its the top two or three best “Few people can have iels Erichsen avid sports fishermen, the nament, organized by the guests. bluewater resorts in the access to so much fish dur- wears two hats. sailfish soars through this Commission. According “Pacific Fins offers the world, based on various ing the 125–150 days they As the presi- canyon, foraging for prey to Erichsen, a number of best possible attention and elements. Fishing is one fish a year. This means dent of Pacific and awaiting the pleasure leading fishing personal- seeks to be a total package of these, as is the fact that our deckhands are well NFins, one of Guatemala’s of those seeking to tame it. ities are invited to come for its clients. While fish- we are a boutique hotel,” trained and very experi- most prominent fishing For Erichsen, though, down and compete. This ing is our core business, says Erichsen. He only enced. They are dedicated tourism operators, he the challenge is finding tournament allows clients our responsibility begins has the capacity to house to providing the attention wants to put the country the balance between local to go fishing with these when we pick our guests 20 guests; those who stay our guests need. To this, on the world map. As the tourism development celebrities, including Cap- up at the airport and ends to become friends who we add gourmet cuisine president of the Guatema- and the rate of fishing. tain Wild Bill Wichrowski, when we return them,” return regularly. Some 70 that can rival any fishing lan Sailfish Commission, He points out that the star of the Deadliest says Erichsen, laying out % of those staying at Pa- destination in the world,” he also seeks to protect the two aspects go hand-in- Catch show on the Discov- the resort’s mission state- cific Fins are return guests. confirms Erichsen. undisputed king of Guate- hand. “We have various ery Channel. Erichsen is ment. “The tourist staying At its core, Pacific Fins is “Our focus is of course malan marine life. investment projects in the proud that Wichrowski with us worries about about the sailfish. Its cap- American tourists who The country has the country that depend on the has taken part in the tour- nothing during his stay. tains and crew are chosen represent 85–90% of greatest concentration certainty that the sailfish nament two years running We offer an all-inclusive for being among the best those who come here. The of sailfish in the world, will be here for more than and says he is “just the package with all drinks to charter for private trips rest is made up of Europe- allowing for an average of 20 years. We created the type of personality we included so that guests do around the world. This is ans and Latin Americans,”

15 bites per day per boat, a Commission more than need to patronize fishing not haveanuncio to worry BRUM.pdf about 1 9/22/17done to 12:00 complement the he adds. rate any fisherman would five years ago. The main in Guatemala.” envy. While destinations principle for this con- More than simply caring such as Costa Rica may servation project was to for sailfish, the Commis- have a greater reputation guarantee that the sailfish sion also seeks the broader worldwide, Erichsen will be here for the future,” development of the nation- says Guatemala has 6–8 he explains. al tourism sector through times more sailfish than growing the sport fishing anywhere else in the LEGAL FRAMEWORK industry. To achieve this, Americas. it works closely with the It is as if Mother Nature The Commission was Guatemalan Tourism Insti- herself crafted the perfect founded in large part tute (INGUAT) to achieve conditions for sailfish to thanks to Guatemala’s a number of results. “We thrive. Guatemala bene- landmark conservation believe the best way fits from an underwater law, with Erichsen saying Guatemala can overcomeC canyon extending out authorities have shown its perception of insecurityM

200 nautical miles from their support for a strong is to be the country withY its coast, while being only legal framework to the best conservation of 40 nautical miles wide. allow tourism to flourish. sailfish in the world,” laysCM Described by Erichsen as “When the government out Erichsen. MY • Most Sailfish bites per boat and great Marlin activity as well a cocoon for marine life, signed the law that gave So far, things have goneCY the currents whipping rise to the Commission, it well. The International • Tournament Level Captains, Mates and Boats CMY through the canyon are showed that it understood Game Fish Association • Boutique Hotel with individual Villas to guarantee exclusivity rich in nutrients and the the value this law had for rewarded Erichsen effortsK • Gourmet Restaurant entire ocean food chain tourism in Guatemala, with its IGFA Conser- finds a foothold there, for the regional economy, vation Award in January from plankton on up to to protect native species. 2017. The Commission has the sailfish. Furthermore, Thanks to this, we have now become a reference in a perfect juxtaposition of led initiatives in Guate- the region and is helping winds, including the Papa- mala that are being used Nicaragua design its own gayo jet and the Tehuan- around the world,” he tourism fishing law. tepec, causes a subtle shift explains. Being able to rely on www.pacificfins.com.gt in ocean temperatures One way of raising these stalwart conser- [email protected] and leads the fish to find Guatemala’s profile, of vation efforts allows the 1-888-700-3467 the waters of the Guate- improving its reputation Pacific Fins Resort &

EVENTS Multi-genre music festival experience

BY JUAN CARLOS CORTES than 30 artists, national know that there is a space spring heat year after year by year for each edition,” this, event, is the Gallo and international, in the that is easily accessible, in a magical and natural he says. brewery,” says Ponce. Mayan capital. “The idea inclusive, and above all, place, blending first-level The festival has a return Empire Promotions has ach year, spring of the festival is to bring available for creative recre- technology, which can be on investment of approx- established itself as the solstice heark- musical cultures together ation, where the young and observed both onstage and imately 10% per annum largest and best–quality ens the biggest without putting stere- not so young can interact. in the amenities offered. and has generated both a electronic music event musical festival otypes on the different “Before EMF there weren’t Empire Promotions, strong reputation and high producer in whole Central Ein Guatemala, celebrating genres, creating unity any festivals like this in the production company level of credibility among America. Dedicated to and Mayan history and mysti- at the same time,” says Guatemala; Guatemalans behind the festival, is its sponsors, who have passionate about bringing cism in an event that has Ponce. The event is for lov- didn’t even know how positioned as the leading become more confident in more of the best shows created a strong festival ers of electronica, reggae, festivals like this worked, electronic music promot- the event every year. And to the region, it is still culture with three stages, reggaeton, rock, ska, and or we had to make long er in the country. Their as a result, more and more working to one day be able two days of music, and others, since in the end it and expensive trips to ex- mission is to position sponsors have joined the to expand this festival to social interaction. is a festival to celebrate perience them,” says Luis Guatemala as a festival original ones. other places in the region, The Empire Music music and its essence. Franco, who has assisted destination that offers The sponsors also have where more Central Festival – EMF – is the only the festival during each of the best experience as a the opportunity to create Americans can live the one of its kind in Central PERFORMERS its four editions. music community. “We unique experiences via experience. America. Those who come Just one hour away are determined to make amenities, which provides The festival is proud to to the country in search The festival has been from La Aurora Interna- greater investments in an incredible creative announce its fifth edition of nature, and culture will characterized by its diverse tional Airport and fea- each edition of the festival space for the brands to and promisses great sur- find the perfect combina- and striking musical mix turing different modes of in order to bring artists interact with the attendees prises and internationally tion of these elements at that appeals to all tastes: transportation provided from all over the world,” and play a role in designing renowned artists as usual. the event. Calvin Harris, Tiësto, Paul by the organizers, the says Ponce, who founded the atmosphere. “We are enthusiastic and Empire Promotions Van Dyke, Martin Garrix, event has emerged as the and runs the company. “Our main official spon- ready for the fifith anniver- gave life to the world-class Skrillex, The Chainsmok- ideal choice for locals and “We have seen 15% sor, the one who has always sary in the spring of 2018,” multi-genre festival in ers, and Marshmello are foreigners to welcome the growth in attendance year been our greatest ally in declares Ponce. Guatemala in a unique just some of the DJs who setting with a view of the have already performed enigmatic volcanoes. on stage. Revered groups “The idea has always such as Incubus, Fat Boy been to offer the audience Slim, Capital Cities, Calle something more than 13, Café Tacuba, Cultura simply seeing an artist or Profética, Cartel de Santa, several together; today and Bomba Estéreo, to we can say that the people mention just a few, have who return year after year also attended. But out- do so for the complete standing artists of different experience,” explains genres haven’t been left Enrique Ponce, founder out either, including Wiz and director of the festival. Khalifa, Matisyahu, Jay In order to create unity Balvin, Juanes, and Fifth through music, the festival Harmony, all sharing and has positioned itself as a interchanging stages. space to present well-rec- This is how EMF has ognized artists from generated a cultural and around the world. social awakening among EMF has gathered more the community, who now FACEBOOk.COM/BRUMREPORTS AN INDEPENDENT SUPPLEMENT BY BUSINESS REPORTS ON UNIQUE MEDIAS TO THE MIAMI HERALD SUNDAY OCTOBER 15TH 2017 13 Guatemala Making tourism a priority THE GUATEMALAN GOVERNMENT RAISED THE STATUS OF THE SUSTAINABLE TOURISM PLAN TO A STATE POLICY. IT AIMS TO DEVELOP TOURIST ACTIVITY IN GUATEMALA WHILE PROMOTING ITS POTENTIAL AND DIVERSIFYING THE OFFER

year’s numbers in the first BY ROBERTA BRUM eight months of the year. From January to August, eveloping Guatemala received the tourism 1,432,712 foreign tourists sector, which that injected 1 million dol- is seen as one lars into the economy. Dof the prime motors of The potential to grow the national economy, is is immense, and they a proposed objective by seem to be well-aware of president Jimmy Morales. it: “Guatemala is a very In light of its importance, culturally diverse country the Guatemalan govern- that has an extraordinary ment raised the status of natural wealth, which has the Sustainable Tourism yet to be fully discovered,” Master Plan from an says Chajón. agreement to State Policy. Susana Ascencio, the The president stated, “The mayor of Antigua — one of policy is an order for all the most visiteds munici- Executive Branch organi- pals — adds that “it has the zations to draw their plans advantage of being a clean and budgets as well as plan industry that sells through on a stable contribution its scenery, its heritage, the to improve the living con- service, and the kindness ditions for Guatemalans of its people.” through tourism.” LAS LAGUNAS Boutique hotel in Petén was idealized by a Guatemalan citizen with the aim of sharing the beauty of the place with others In the eyes of the Casa The plan aims to sus- Santo Domingo hotel tainably develop tourist manager, Diego Casteñe- activity in Guatemala da, “There is something while promoting the regu- very special in tourism lation of national territory regarding the economic according to its potential; level that people have through diversification, to achieved by working in enhance what its tourism this sector. Of the 99% can offer; and lastly, make of the national workers the world see Guatemala that we have, there are as the heart of the Mayan people who have started world. by washing rags and then The plan also highlights they were competing with the potential of specific the best gastronomic chefs tourist segments such in France.” as large gatherings — for The beauty of the example, health and country has seduced well-being, conventions, or entrepreneurs from other weddings. Health-related sectors, such as Edgar gatherings alone generated Castillo, who built a luxury $66 million last year. hotel in the Petén region. Dr. Guillermo Contreras, “When I saw this place, I president of the Medical didn’t think it fair that only Tourism Commission at I should see it, but, that the Guatemalan Exporters PORTA Antigua is a property of a local hotel chain whose owner believes the Master Plan is a foundation for development of tourist activity everyone should, because Association (AGEXPORT) to me, it is a treasure that explains that the quality of Interinstitutional Execu- Plan that transcends gov- join the board of direc- further,” comments An- had to be known. Nobody healthcare in the country tive Committee drawing ernments, permitting us to tors.” dreas Kuestermann, CEO ever entered there, it was is equal to what one would participation from the push Guatemala towards Efforts are viewed with of Porta Hotels. all jungle. I started think- find in the United States, Executive and Legislative to the bigger developments optimism by business: “A Among the strategic out- ing and decided to make a but at a more affordable sectors, and private sector. that it deserves.” Chajón foundation has been set comes, it is expected that beautiful and comfortable price. He adds, “Many clin- Jorge Mario Chajón, reveals that it is the first with the Master Plan. The the country will go up 10 hotel”, he says. I wanted ics have certifications from Director of the Guatema- time that the country has document was a grand en- places on the Competitive to give them something no U.S. agencies with the lan Institute of Tourism attempted such a plan. deavor of the private sector Tourism Index by 2019. other hotel can offer.” same medical processes - INGUAT, defends that INGUAT is a decen- and it has been backed Currently, it ranks 80th of What started off as a and qualified personnelly, “the policy allows us to co- tralized entity, which by the government to be the 141 countries evaluated simple idea has led the being very conveniently ordinate different sectors according to him, enables implemented by INGUAT. by the World Economic entrepreneur to build two we are only a two-hour with a vision shared by the it to move quickly. “We A lot of work went into Forum. more hotels. flight from Miami.” private and public sector want to make changes to this, and the document is The hard efforts have “I believe in this coun- The new State Policy and by doing so, we are INGUAT’s Organic Law so alive and it must continue seen a 14% increase in try’s future in tourism,” will be developed by an moving on with a Master that the private sector to evolving and developing income compared with last says Castillo.

the consultation and guid- ance from Peter and his Friends change the rules wife Ana, has allowed the Trefra Group to remain a successful business for restaurant businesses throughout the 25 years it has been in operation.” friends vaca- rant like this one might be possibility to reality. As Guatemala has tion trip to San a great venture in Guate- That was the beginning grown economically, so Francisco, back mala City, realizing the of what is now the Trefra has the enterprise those in the 1990’s, capital lacked a place with Group, owner of multiple three friends dreamed Ahas been the biginning high-quality food and restaurants across Guate- about when in San of a huge change in the great customer service at mala. Francisco. The team now Guatemalan restaurant a reasonable and accessi- Peter Huson and his VISION Peter Huson, Juan Pablo Vásquez, Ricardo Barnoya, and comprises of more than business. When Ricardo ble price. wife flew down to Gua- Rodolfo Reichert developed a diverse fair-cost range of restaurants 500 people. Barnoya, Rodolfo Re- temala, to help the three Those that have been ichert, and Juan Pablo SUCCESS friends open their first led the Trefa Group to that the Guatemalan peo- part of it for many years Vásquez stepped into casual dining location in open many more locations ple deserved.” confidently say that it iFratelli, a casual and fam- They contacted the chef 1995, under the name Tre across the country. “The In 2009, the group is a truly familiar work ily–friendly restaurant in and owner, Peter Huson, Fratelli. reason to this success,” decided to diversify its environment. Trefa Group the downtown area, they and a few meetings took The restaurant enjoyed says Barnoya, “is that we menu, adding Italian, adopted as a motto the considered that a restau- place in order to bring the immediate success. This are offering a standard American, and Asian saying “enjoying our job,” food, with Frisco Grill which is also reflected specializing in gourmet in to its customers, who hamburgers and chicken get to experience great wings. JK Ming opened a customer service. “We few years later, offering a want to make our clientele varied menu centered on feel that they have made Asian food. a good investment,” Bar- La Cantina, whose noya reflectes. menu consists only of Our team visited the Mexican food in all its four different menus variety, from tacos to mar- offered by Trefra Group, garitas, came later to spice and we can heartily up the offer. recommend: beef carpac- Paulo De León, Eco- cio and Aperol at the Tre nomic Intelligence Direc- Fratelli location, followed tor of the Trefra Group, by house cappuccino, the shares that “even though American burguer and the restaurant industry is ribs at Frisco, the casheew very competitive, the con- beef at JK Ming, and the stant innovation brought volcanos and margaritas forth by the partners and at La Cantina. 14 SUNDAY OCTOBER 15TH 2017 AN INDEPENDENT SUPPLEMENT BY BUSINESS REPORTS ON UNIQUE MEDIAS TO THE MIAMI HERALD FACEBOOk.COM/BRUMREPORTS Guatemala