Guatemala beyond expectations

G

uatemala Beyond Expectations is the result of a joint effort by a group of businessmen, governmental institutions and entrepreneurs who are looking to share the great potential the country has to offer to the world, and to further promote development through investments, exports and new business opportunities.

We believe in Guatemala, a country with a significant potential due to its special conditions. Guatemalans make up a nation of creative, innovative and entrepreneurial people, with whom we build the biggest, most stable and reliable economy in the Central American region, with a robust telecommunications system, an extraordinary city for doing business and with an enviable climate that makes us “the Land of Eternal Spring�.

Guatemala is a logistics and energy hub for Central America, given our proximity with our neighbors: Mexico and the United States, as well as multiple air based connections to the world.

Our diversified base allows us to export more than four thousand different goods and services to 125 countries with customers that satisfactorily demand our products and talent. Currently, our leading export sector is apparel and high fashion textiles.

In a territory of a little more than 67 thousand miles squared, we gather a natural and cultural wealth that

2

GUATEMALABEYONDEXPECTATIONS .com

(Atitlán) Guatemala, land of eternal spring

only 19 countries in the planet possess and that are known as mega-diverse because they shelter 70% of the biological diversity known to date.

Our country, Guatemala, is where the Mayan culture was born. That is why the United Nations recognized the Tikal National Park in the Maya Biosphere Reserve as Cultural and Natural Heritage of Humanity and where we preserve the biggest tropical forest north of the Amazon.

We are multilingual, we speak 24 languages in addition to Spanish, moreover, we serve thousands of persons around the world from specialized Contact Centers specializing in English, for example.

We are multiethnic, our population comes from four ethnic groups, but we also host many foreign tourists and business persons that year after year put their trust through their vacations or investments in our country.

From this nation, we produce exotic spices and the biggest volume of cardamom in the world. We also sell coffee that is appreciated by the most demanding palates on the planet.

We are also pioneers in handmade crafts, which more than decorative articles, are the history of the lives of an ancestral legacy that has been passed on through generations. Technology is also present among flourishing industrial, agricultural and services sectors.

Through this document, we are proud to present Guatemala, the Land of Opportunity

Instituto Guatemalteco de Turismo (Inguat) Ministerio de Economía (Mineco) Asociación Nacional del Café (Anacafé) CBC Comité de Arveja y Vegetales de AGEXPORT Productos Alimenticios ¡YaEstá!

Comisión de Software y Contenidos Digitales de AGEXPORT Sector de Acuicultura y Pesca de AGEXPORT Acuamaya Grupo Emo Comercializadora San Diego, S. A. Grupo Karims Asociación de la Industria de Vestuario y Textiles Ecofiltro Banco de Desarrollo Rural, S. A.(Banrural ) San Juan Agroexport Asociación Guatemalteca de Exportadores (AGEXPORT) Club Fotográfico de Guatemala

GUATEMALABEYONDEXPECTATIONS .com

3

Content 34

08 Guatemala in the world

Aquaculture and fishing sector, highly technified and innovative

12

36

18

45

22

46

25

48

Why invest in Guatemala?

Natural paradise in the heart of the Mayan world

Guatemalan manufactures: value added and innovation

Solid banking system

We export knowledge to the world

Guatemala megadiverse

World class fresh products

Guatemalan digital talent that shines in international markets

26

50

Aromatic that conquers the world

From Guatemala to the world

Editorial Board Editorial Board: Gabriel Biguria, Amador Carballido, Fernando Herrera, Fanny D. Estrada, Patricia Marchorro, Marlene Martínez, Carlos Tárano Marketing and Sales Committee: Patricia Marchorro Editorial Committee: Marlene Martínez Editor: Carlos Tárano Associate Editors: José Coyoy, Guillermo Ramírez Design Supervisor: Alfredo Monterroso

4

Design and Layout: Daniel Cifuentes, Karlo Soto, Diego Acabal Photography: Club Fotográfico de Guatemala, Anacafé, Comisión Portuaria Nacional, Shutterstock.com, AGEXPORT Translation: D4 McCann, Gabriel Biguria, Ricardo Rodríguez GUATEMALABEYONDEXPECTATIONS .com

Guatemala has a variety of micro climates, ideal for biodiversity

GUATEMALABEYONDEXPECTATIONS .com

5

GUATEMORFOSIS: INSPIRATIONAL MOVEMENT FOR POSITIVE CHANGE IN GUATEMALA

I

t all began in 2012, when Pepsi wanted to transmit a different message to Guatemalans, because they firmly believe that in our country the positive things in each one of us stand out more and if we focus we can generate a movement to be better persons and lift up the name of Guatemala.

Guatemorfosis has not been only a campaign, but something deeper; it’s an understanding that we are all agents of change and that we can contribute with our attitudes, habits and talent with a possibility to transform Guatemala, while releasing our best side as individuals and as a country.

Today, Guatemorfosis evolves with a new message, and it shows us that when Guatemalans decide to do something, we can achieve it, because each person has change within them and if we join forces, we can make it bigger.

Guatemorfosis has helped us understand and show that Guatemala continues to have much potential, it allows us to see the talent that we have in the country, in all sectors, environments and industries in order to believe in ourselves.

Today, Guatemorfosis calls for us to come together and tells us that together, we are part of that change, since “together we are Guatemorfosis”.

To know more about Guatemorfosis, go to: https://www.facebook.com/PepsiGuate/

Close to the United States

Neighbors with Mexico to the west and north

Guatemala

Guatemala in the world Guatemala is located in Central America and borders Mexico and is close to the United States.

16.5 million habitants in 2016, for 2018 we estimate there will be 17.3 million and for 2020, 18 million Guatemalans

8.1 million men in 2016

8

GUATEMALABEYONDEXPECTATIONS .com

8.5 million women in 2016

Bordering Honduras and El Salvador

22

landing strips and two international airports

La Aurora, in Guatemala City, and Mundo Maya in PetĂŠn (500 kilometers to the North).

Territorial extension

30

Maritime ports

108,889 km2

Shipping companies

2 in the Atlantic and 1 in the Pacific

+100K

local and international flights per year

with direct connections to main cities in the United States, Central America, South America plus a direct flight to Madrid to connect with Europe.

GDP US$69,680 million in 2016 The GDP grew 3.1% in 2016 and 4.1% in 2015.

The economically active population (EAP) is 6.8 million persons:

67.2 MEN

%

32.8

%

Infographics: Daniel Cifuentes Source: Banco de Guatemala, World Bank, National Statistics Institute

3

3.1% Is the estimated growth for the country in 2017 and 3.4% in 2018

WOMEN

million youth between 15 and 24 are part of the EAP, equivalent to 28.8% The population at working age is 11.2 million

Close to Panama to the south and east sides C O N T I N U E D

O N

P A G E

1 0

GUATEMALABEYONDEXPECTATIONS .com

9

Gateway to Central America and Mexico

I

ts geo-strategic position has allowed it to become an important logistics point for investors around the world, thanks to its proximity to the United States, its main trading partner and leading economy in the world and to its three neighboring countries that make up NAFTA, the world’s largest trade agreement.

Guatemala borders with Mexico, an emerging economy and its third trading partner, only after the other Central American countries. Mexico has made significant investments in the telecommunications sector and other diverse services.

Guatemala has also become a logistic services center for the region, due to the fact that it’s only a three hour flight away from Miami or the South American continent, so countries like Colombia have made important investments in productive sectors such as energy and banking.

Guatemala City is the largest in the Central American region. Its human capital and natural resources along with its technological infrastructure and the quality of the labor force make the country a strong competitor.

accounted for 62.8% of the total value of foreign trade and 79.5% by weight.

The cargo movement by seaports reached 26,415 metric tons in 2016.

The total foreign trade volume for the country was 31,096 metric tons.

In 2016, the country’s exports totaled US$10,450 million. The main destinations were the United States, Central America, Mexico and the European Union.

Imports totaled US$17 billion.

The country’s road and port infrastructure have become connection points used by neighboring countries,

Guatemala has the most developed economy in the Central American region, its infrastructure, quality of labor and services make it a strong competitor.

The country’s attractiveness comes from its climate, tourist destinations, volcanoes, lakes and especially because of its people with a strong work ethic and its variety of living cultures, heirs of the ancestral Mayan culture, the most developed in ancient America.

Bathed between two oceans, the Atlantic to the north and the Pacific to the south, key strategic points that provide a competitive advantage for companies, investors and local and foreign merchants.

10

In 2016, the country attracted more than US$1,180 million in foreign direct investment. The most vibrant sectors are trade, with US$307 million, and US$261 million for electricity, especially in the field of renewable energies, such as hydro, wind and solar.

GUATEMALABEYONDEXPECTATIONS .com

Two international airports, La Aurora, in the heart of the city, and Mundo Maya (Mayan World), in the Department of Petén, receive thousands of passengers annually. The country also has seven smaller, regional airports in other departments.

The country’s maritime trade is growing because there are only 420 kilometers between the Atlantic and the Pacific Oceans’, that join Santo Tomás de Castilla port with Puerto Quetzal port, with their specialized terminals and international certifications for trade, which together

like Honduras and El Salvador.

Guatemala has 16.3 million inhabitants, with an economically active population (EAP) of 6.8 million people: 67.2% men and 32.8% women. Of these, two million are youth between 15 and 24 years, 28.8% of the total of economically productive age.

Guatemala is a country of opportunities offering significant competitive advantages, a meeting place for micro, small, medium and large companies in search of further expansion.

A force that lights the way for development Guatemala has the lowest energy rates in the Central American region, due to advances in legislation and changes in the electrical grid.

S

an Diego Corporation made up of Ingenio Trinidad, S.A. and Hidroelectrica Hidropower SDMM, S.A., market sugar cane byproducts and with these generate energy that is distributed into the local and regional markets. The plant is located in the Municipality of Masagua, Department of Escuintla.

at the cutting edge and with the interest of providing the tools so the Guatemalan industry can develop.

Keeping quality standards, security, integrity and transparency allow San Diego Corporation to climb towards the leadership position in the electrical markets.

The main activity of San Diego Corporation is the production and sales of sugar cane and molasses, in the national and international markets. However, the projects for energy cogeneration occupy now a priority among the corporation’s expansion plans.

It has led innovations in the electrical market through the Comercializadora de Energia San Diego, offering an all inclusive rate for the industry, which provides clients with safe and standardized cost due to the fact that the rate never fluctuates and the client does not assume any risks, considering that this rate is more competitive and lowest in the market.

Due to these advantages, they export energy to Honduras, Nicaragua, Panama and Costa Rica, as well as having an energy sales operation in El Salvador, with a vision for expansion into new electrical markets.

Although the industry has had to overcome social challenges, San Diego promotes growth for demand and energy consumption and in industry and commerce, in Guatemala and Central America, without scheduling restrictions. They generate more than 5,000 direct jobs in Guatemala, in addition to investing in social projects, education, health and development of neighboring communities close to the operations’ centers.

Versiones de Logotipo Comercializadorade energía Sand Diego S.A.

Negativo

Positivo

The business has the capacity to generate 113.8 megawatts (MW), with the objective to remain CMYK

www.sandiego.com.gt

GUATEMALABEYONDEXPECTATIONS .com 2 Tintas

11

Why invest in Guatemala?

In the last decade, Guatemala has made important efforts so multinational businesses can have all the facilities to establish themselves in the country. Therefore, the investments have increased in that period 58.5%, reaching USD1.180 million in 2016. Some of them share their experiences.

“We firmly believe that, in a country like Guatemala, through our business model we can contribute towards the growth of entrepreneurial projects, which with an adequate guidance can transcend in the market.”

Ana Chan

Corporate Affairs Manager of Walmart Mexico and Central America.

Miguel Schumann, commercial director of Central America for the LALA Group, one of the main Mexican businesses in the food industry, declares that the most productive social and economic relationships, those that last over time and generate shared benefits, are based on trust.

The executive declares that in 2008 they made their first purchase outside of Mexico and they decided to do it in Guatemala.

Currently, LALA is building a new plant near Guatemala City to process milk, ice-cream and other products with an investment of more than US$30 million, where they project

12

GUATEMALABEYONDEXPECTATIONS .com

Guatemala represents the opportunity for creating new possibilities for employment and serving more clients and communities, with quality products and good service, refers Ana Chan, Corporate Affairs Manager of Walmart Mexico and Central America.

She explains that in the last five years (2011-2016), Walmart in Guatemala has been one of the major and most constant sources of foreign direct investment, with over US$261 million accrued. “Every store that we open means new opportunities for direct and indirect employment, which contributes towards a better quality of life for families in the country”, she states.

generating 3,500 jobs and which will begin operating at the beginning of 2018.

“We have to expand the opportunities for growth; we want to be a part of the cooperation and trust to strengthen mutual prosperity. That is why we invite and incent the local and international business community to trust and invest in Guatemala”, expresses Schumann.

For the LALA manager, the country is making efforts to improve the conditions for Guatemalans in general and fight to respond to the needs of their people.

The manager highlights that the company is committed to the development and growth of the country and through the business model fosters strengthening the local economic activity. As part of the private sector, the actions taken are also directed toward generating new and better employment opportunities and to promote and support Guatemalan producers.

She adds that Guatemala promotes political action to improve the conditions for investment, maintaining growth and making it more appealing, so that more multinational businesses believe and invest in the country.

“For LALA Group, Guatemala is an incredibly important market in the region. We see the efforts of public and private entities with optimism, offering competitive conditions to attract investment.

That is why we contribute to the development and nutrition of this country.”

Miguel Schumann Commercial Manager for LALA Group Central America.

“Guatemala is a country of 16 million inhabitants with mainly a young population, between 15 and 29 years.

There are many young technologically talented professionals which is why there is a thriving development of applications and software. The country has a high percentage of persons that have undertaken entrepreneurship to progress and become business persons.”

Jorge Dighero CEO Tuenti Guatemala (Teléfonica)

It doesn’t matter what the business twist is, many come to Guatemala to consolidate, says Máximo Dolman, Vice-President of Herbalife for Central America, Colombia and Venezuela, who declares that the global nutrition business, founded in 1980, is in the country because it is the largest economy in Central America and the Guatemalan macroeconomic indicators are encouraging, “that is why we are in the country since 2008”, says the executive.

The entrepreneurial spirit of Guatemalans is essential for business, because there

Tuenti is a new brand of mobile phone services that has come to Guatemala in order to complement the market. With operations in Latin America and Europe, they started operations in Guatemala in June 2017, targeting young people that want to be always connected and enjoy the best online experience.

“Our investment in the telecommunications industry has generated jobs and we know we have quality human capital; the Guatemalans warmth is one of the main reasons why so many foreign businesses have settled in the country, because of the passionate and committed teams with which we can work”, emphasized Dighero.

are very skilled persons in service and customer care. Dolman says that the charisma of the Guatemalan people has opened doors and the growth of the brand has been excellent in the last few years.

“Guatemala is a market that offers multiple investment opportunities, expansion and growth. The quality of its people, its natural wealth, geographic location and its high potential, place it in a privileged position on our continent, because of these characteristics and for so much more, Herbalife has deposited its trust in this wonderful country”, concludes Dolman.

The country promotes free competition and that improves the quality of businesses. The expectations of business growth are high and many business persons know that they are in the right place, he declares.

Dighero describes Guatemala as “an impressive country”, not only for its cultural traditions and beautiful tourist attractions that take anyone’s breath away, but also for its hardworking people seeking to improve themselves every day along with the great opportunities for commercial and business growth.

“Without a doubt, if you bring an opportunity to Guatemala, Guatemalans will do incredible things with it”, states Tuenti’s CEO.

“Their infrastructure is one of the most modern in the region, as well as a broad supply of high quality services, that support us in developing our activity.”

Máximo Dolman Vice-President of Herbalife for Central America, Colombia and Venezuela.

GUATEMALABEYONDEXPECTATIONS .com

13

Guatemala, a country for business Due to its economic potential, Guatemala offers a window of opportunities for investment.

T

he perception of the current economic situation, a business environment that is increasingly positive and the evolution of economic development of Guatemala in the near future are extremely encouraging.

This favorable situation is due to competitive advantages, like geographic location, being the largest economy in Central America and having the biggest consumer market with approximately 35% of the population of the region. In addition, the country offers diverse productive sectors with potential for continued development, like light manufacturing, services, telecommunications, communication technologies and power generation, among others.

That is why the effort and stability of the Guatemalan economy is reflected in the projections of international financial institutions like the World Bank (WB) and the International Monetary Fund (IMF) that foresee that it will register Gross Domestic Product (GDP) growth of 3.1% in 2017 and of 3.4% in 2018. In that regard, the IMF assures that these encouraging perspectives are due to a fiscal deficit below 2% and having inflation under control.

According to the information, in the last quarters, the GDP growth has been promoted by the activities of industrial manufacturers, private services, agriculture, livestock, commerce, transport and communications.

Foreign Trade As a reflection of the dynamism of its economy, Guatemala’s foreign sales have remained at over US$10 billion since 2013, having doubled the total amount in the last decade.

Regarding imports, the number reached US$17.002 billion in 2016.

The main products are fuels and

lubricants, in addition to raw materials for the industry. The purchases from abroad come mainly from the United States, Mexico, China and the Eurozone, representing 79.6% of the total purchased.

An important aspect for commerce is that Guatemala is part of the first joint customs territory with Honduras in Central America that makes it a new magnet for investments by the advantages that come from a common area for circulation of goods of more than 221 thousand square kilometers, which is equivalent to 52% of the territory in the region. It is foreseen that El Salvador will also join soon.

The above also means a potential market of more than 23 million and a half inhabitants.

25

Reduction in logistical costs after Guatemala and Honduras joined customs, according to the World Trade Organization

1.9

million turists visited Guatemala in 2016, 3% more than in 2015 representing the equivalent of US$958 million

35%

Of 47 million consumers in Central America are represented in Guatemala

%

4,000

Products exported from Guatemala to more than 125 nations in the world

Foreign Currency Income Remittances from Guatemalans abroad have become an important indicator for the national economy.

In 2016, for every US$100 of the GDP, US$12 were from family remittances.

This flow of remittances has improved the purchase power for thousands who live here, especially in the provinces.

According to Banguat, in 2016 the country received US$7,159 billion under that heading. It is estimated that 6.2 million people in the country get remittances, of which 49.8% are used for investment and savings. 73.6% of the transactions are made through the national banking system.

Foreign visitors represent another foreign currency source of income.

In 2016, Guatemala was visited by 1.9 million tourists, who left US$958 billion, 3% more than in 2015. The average daily expense of visitors is of US$85 daily.

Figures One of the key characteristics of the country is its macroeconomic stability. Indicators like inflation and

3.4

Growth forecast for the gross

% domestic product in 2018,

17

according to the IMF and the WB

Duty free zones exist in Guatemala

the exchange rate are stable. In 2016, inflation remained at 4% and it is foreseen that it will be at 4.50% by December 2017. The exchange rate for the Quetzal in relation to the US dollar has remained stable for several decades, which gives it strength in commercial transactions.

Moreover, the level of the Net International Reserves continues to strengthen. This indicator up to December 2016 registered an amount of US$9,087 billion. It stands out that the bank lending to the private sector continues to grow and in the same period, grew 5.2%, whereas the credit in local currency increased 8%.

GUATEMALABEYONDEXPECTATIONS .com

15

Competitiveness Guatemala has 12 current trade agreements, through which it generates 84.2% of the country’s exports.

The commercial assistance in the foreign trade processes has allowed for the conditions to improve; for example, we can mention some success stories like the Unique Window for Exports (VUPE, in Spanish) that improves the processes to obtain export permits and in coordination with the involved institutions, allows these transactions to be more efficient while reducing their costs.

It’s important to mention that from a few years back, efforts to improve the inspections of goods at the ports, airports and land borders with the institutions involved have been a challenge. That is why in July 2016, an Inter-Institutional Convention for Joint Inspections was achieved with signatures from the Tax Administration, Ministry of the Interior, Ministry of Agriculture, Livestock and Food, ports and airports, in order to prepare protocols specific to all.

As of March 2017, they implemented Joint Inspections at the Quetzal Port as a pilot

16

GUATEMALABEYONDEXPECTATIONS .com

project, and at the International La Aurora Airport, which will improve inspection times and costs, improving the facilitation of trade and competitiveness in the country.

4%

Business Climate Guatemala continues improving in competitiveness, as shown by the indicators for Doing Business from the World Bank in 2017, when Guatemala occupied the position 88 out of 190 countries, improving on the indicators for electricity (19), credit (16), cross border trade (77), property registry (74) and construction permit management (89).

Top 10

In the Global Competitiveness Index 2016-2017, the World Economic Forum, the country was placed in position 78 of 140, highlighting its strength in the financial market (18), the goods market (48), business sophistication level (49) and macroeconomic stability (57).

At a general level, the country’s evaluation is over the world average as to economic freedom, where it occupies the position 74 of 180 countries according The Heritage Foundation, which supports it as an attractive place for investment.

74

Inflation in 2016 that establishes Guatemala among the countries which levels are stable and controlled

Of Latin America in the Global Competitiveness Index and Doing Business

Position that Guatemala occupies in the index for Commercial Facilitation from the Heritage Foundation

Due to its economic potential, Guatemala offers a window of opportunities for investment.

www.mineco.gob.gt

GUATEMALABEYONDEXPECTATIONS .com

17

Natural Paradise in the Heart of the Mayan World F

lora, fauna, lakes, volcanoes, archeological sites, beaches, streets and avenues, filled with history are some of the natural and cultural treasures that Guatemala offers its visitors and that can describe wonderful and unforgettable experiences.

The cultural and natural wealth of Guatemala impresses: it is one of the 19 mega-diverse countries in the world where 33% of the territory are protected areas. It has more than three thousand archeological or historical sites, three of them declared World Heritage Sites: Antigua Guatemala, Tikal National Park and QuiriguĂĄ Archeological Park.

Heirs of one of the most important pre-Hispanic cultures in the Americas, which legacy lives and is with us to this day, converge here with the Maya, Xinca and GarĂ­funa cultures.

The broad range of specialized tourism products is divided into 11 segments: culture, nature, adventure, volunteer work, language tourism, cruises, entertainment, sports, weddings, honeymoons, health and wellness, congresses and conventions,

18

GUATEMALABEYONDEXPECTATIONS .com

which allows us to offer complete experiences.

Constant evolution A fundamental and essential part of the tourism supply from Guatemala is cultural tourism, through which it is possible to take trips that are of mystical and religious character, preColumbian archeology, tourism with community management, tourism of colonial cities and historic centers, as well as the experience of the Maya living culture.

According to the Guatemalan Tourism Institute (Inguat), cultural tourism has significant economic impact in the country, since it offers an opportunity to diversify and innovate with products according to trends and current demand for international tourism.

Guatemalan gastronomic tourism stimulates local, regional and national economies, enriching the cultural value of tourist destinations.

Medical and well-being tourism, where the traveller is looking to reduce stress, have body and thermal treatments, yoga sessions and

The 2016-2017 cruises season ended on July 31st with a total of 96 cruise ships arriving to Guatemalan ports with a total of 124,140 tourists and leaving US$6.52 million of foreign currency in the country, according to the Guatemalan Tourism Institute (INGUAT). Each visitor spends, on average, US$70 per day, 75% of the travelers are retirees.

Left: Tikal National Park, Natural and Cultural Heritage of Hunanity by UNESCO Right: Pier in Village El Remate, Petén

procedures to enhance their beauty; it is another one of the big segments where the country has grown.

More and more couples long to marry in the archeological and historical churches and sites with natural surroundings, and Guatemala has much to offer in wedding tourism.

Flourishing destinations In 2016, the most charming place for tourists was La Antigua Guatemala.

More than 774 thousand persons, 41% of total visitors arrived in this colonial city, the former capital of the General Captainship of Central America and World Heritage Site of Humanity since 1979.

The second most visited place was Guatemala City (40%), Atitlan (23%), Quetzaltenango (11%), Coban and Tikal (9%), Esquipulas (7%), Izabal (6%) and Panajachel and Peten (5%).

As to the arrival of non-resident visitors to Guatemala, this same year, there was an increase of 3% with regards to 2015, since the number reached 1,906,195 foreign tourists.

Most visitors came from El Salvador that represents 44% of the total. In second place is the United States and Canada (21%).

that tourism in Guatemala is made up of short, medium and long distance visitors.

It is worth highlighting that most of the beaches in the country are considered paradise. For example, on the Pacific Ocean is Monterrico and Hawaii, in the department of Santa Rosa, as well as Sipacate, in Escuintla, where hundreds of people surf.

In terms of regions, Central America represents 55% and contributes the biggest number of non-residents in Guatemala, followed by North America (26%), Europe (7%) and South America (4%), which shows

These destinations have excellent hotels and offer opportunities to see the release of sea turtles and whale-watching, in addition to beautiful trips among the mangroves that are of world importance.

In the Caribbean Sea are Playa Blanca and Livingston, both in the Department of Izabal, known as the “Green Caribbean”, where the legacy of the Garifuna and Queqchí cultures are especially attractive.

Key Factors According to the INGUAT, the country develops specialized tourist products that offer unique visitor experiences.

The nation is also recognized for fostering responsible tourism practices, where the visitor is involved with the environment

GUATEMALABEYONDEXPECTATIONS .com

19

and is able to size up the impact created through their arrival to host communities.

Inguat promotes projects oriented toward conservation, enhancement and renewal of the infrastructure for service rendering in the parks, archeological sites and protected areas, in order to improve the tourist infrastructure and signs to the destinations so the tourists can enjoy the wonders of Guatemala.

Guatemala’s position as a tourist destination from abroad is strong due to the launch of ad campaigns to the main markets, which promotes national tourism.

Another one of the important attractions that the country has is its specialized human capital, responsible for service rendering that satisfies the needs of the visitors in different regions in the world.

At the same time, the strategic alliances have allowed improving the conditions for air connectivity and road infrastructure, to help the tourists reach the different regions.

Guatemala has first order services, where quality and customer care are the main attributes and supply of services in housing, gastronomy and entertainment are broad range.

It is the biggest economy of Central America, with macroeconomic stability, an enviable geographic location and outlets to both oceans, so the opportunities for investment, marketing and internationalization for the businesses that decide to stay in the country are broad.

Left: La Antigua Guatemala; Cultural Heritage for Humanity by UNESCO Right: Semuc Champey pools; Alta Verapaz

20

GUATEMALABEYONDEXPECTATIONS .com

Unique places full of splendor

Photo by ©Rene Schwerdtel

www.inguat.gob.gt

GUATEMALABEYONDEXPECTATIONS .com

21

Guatemala Mega Diverse The country has many particularities that make it unique in the world.

Guatemala is known as the “Land of the Eternal Spring� for its broad biological diversity, its climates and landscapes.

In an area of little more than 100 thousand square kilometers, Guatemala has 5 lakes, 66 ecosystems, 360 microclimates and 33 volcanoes. This wealth has made the country gain the privilege to be included on a short list of 19 Like-Minded Mega-Diverse Countries of the United Nations.

3,770

Invertebrate species

216

Land mammal species

10,317 Flora species

22

GUATEMALABEYONDEXPECTATIONS .com

720

bird species

Institutions like the National Protected Areas Council (Conap) oversees the conservation and improvement of the natural heritage of Guatemala

328

protected areas

6

21

national parks and 1 biological reserve with ecosystems, flora and fauna

5

biotopes, biosphere reserves, areas 1 natural monument of great world importance (Semuc Champey) because of its natural and and 3 cultural cultural resources

179

65

private natural reserves

245

reptile species

municipal regional parks

CULTURE

The management of ecosystems, art, traditions, gastronomy as well as manifestations of cultural diversity unique to Guatemala

4

24

languages, in addition to Spanish

Infographics: Daniel Cifuentes / Karlo Soto Source: CONAP, brochure Guatemala Megadiversa, 2015

ethnic groups make-up Guatemala: Maya, Xinca, GarĂ­funa and Mestizo or Ladino

147 amphibian species

28

aquatic mammal species

GUATEMALABEYONDEXPECTATIONS.com

23

Ancestral Tradition and Culture

Photography: Edwin Bran Photographic Club of Guatemala

World Class Fresh Products G

uatemala is a country with a great variety of agricultural products, due to the diversity of micro climates and their broad experience in working the earth. That is why agriculture is a significant sector in the Guatemalan economy, given that it offers job opportunities to 30%+ of the Economically Active Population (EAP).

Food trade in the world is unstoppable.

Guatemala has innovated in all it processes and complies with the highest quality standards. The sanitary and phytosanitary measures (including food safety, animal health and plant health) are commitments acquired in the commercial treaties and agreements that allowed foreign sales.

In response to new trends, the Guatemalan agricultural sector has evolved and counts with strong quality controls, infrastructure, technology and trained personnel, for the protection of consumers.

This productive growth, together with the improvement in agrofood processes and the adaptation to trends like “ready to eat�, has generated very good acceptance in international markets.

Coffee, sugarcane, banana and cardamom are traditional products that have stood out internationally because they are

PRODUCT

RECOGNITION

Snow peas 2ND supplier to the united states Cardamom 2nd world producer, 1st exporter

highly desired and occupy top spots in local exports. In 2016, Guatemala exported US$3.374 billion of agricultural products.

Sugar 4th exporter worldwide Sesame

Best quality worldwide

Vegetables with global demand, like snow peas, potatoes, tomatoes, onions, broccoli, cucumbers and carrots, among others, have conquered national and foreign foodies because they are fresh, high quality and safe.

The ornamental plant, foliage and flower sector, with the production of around 80 species and 200 varieties, decorate different parts of the world.

Melon

Leader in the US market

Banana

Market leader in the US

Coffee

Recognition for quality worldwide

Fruits are also well appreciated. Berries, lychee, melon, mango, plantain, orange, apple, pineapple, avocado and papaya, among many are an example of that. In addition, the sector has diversified in a series of differentiated products like seeds, organics and foods from the country, like: amaranth, sesame, chia, honey, allspice and cacao.

Mango 5th exporter from Latin America to the US

3.1%

growth of Guatemalan agriculture sector in 2016, with a production of US $7 billion.

The value chains and good practices have improved competitiveness. It is estimated that the agricultural sector occupies 2 million people. In the last few years an important number of women have started working, mainly in post-harvest. Due to the diversification and adaptation to change, the agricultural industry of the country continues conquering new markets.

GUATEMALABEYONDEXPECTATIONS .com

25

Aromatics that conquer the world Guatemala’s coffee is national heritage

H

igh mountains and more than 300 micro-climates provide Guatemala with the most favorable conditions in the world to produce first-rate coffee that is internationally recognized for its excellent coffee cup profile.

The Guatemalan aromatic, grown up to 6,500 feet above sea level - 2,000 meters above sea level- has become a driver for development, since it fosters trade and jobs in the rural areas of the country.

Seventy-nine percent of the coffee produced is strictly hard (SHB) and its manual picking allows the harvest to be selective, since they choose only the mature fruit, generating more than 500 thousand jobs.

Coffee is the main agricultural product for Guatemala, since is sold in the most demanding markets around the world.

One of the biggest advantages of the Guatemalan bean is that 98% is grown in shade, which generates a positive impact on biodiversity, the water resources – three million cubic meters of water per year, and the soils and fauna. It is

26

GUATEMALABEYONDEXPECTATIONS .com

estimated that 38 million shade trees and coffee trees create a forest that covers more than 305 thousand hectares in the rural areas of the country.

Of the Arabic varieties produced in Guatemala, caturra, catuaí and bourbon represent 78% of the total. There is also production of pacamara, típica, geisha, pache and robusta.

Coffee represents between 2.5% to 3.5% of the Gross Domestic Product, occupying second place of the total exports for agricultural products with 13%.

Guatemala is among the first ten leading countries in coffee exports. More than four million, 46kg sacks of exported beans during the 2016 harvest generated US$648 million in foreign currency.

Among the destinations, where the Guatemalan aromatic goes is North America, with 45% total (United States 32%, and Canada 13%); Europe, 27% (Belgium 8%, Italy and Germany with 5% each, and other countries 9%). Asia 24% ( Japan 20%, South Korea 3% and Taiwan 1%). The rest of the world buys 4%.

Guatemalan coffee is sold in the most demanding markets around the world.

GUATEMALABEYONDEXPECTATIONS .com

27

The national coffee park covers 305 thousand hectares and the bean is produced in 204 of 340 municipalities in the country, where there are 125 thousand families, of small, medium and large producers.

The National Coffee Association (Anacafé) represents all the producers in the country, so that they can market their product and bolster the development of coffee culture from a focus of sustainability based on three main axes: economic, social and environmental.

In order to guarantee the prosperity of each actor in the chain and their families, improving their quality of life and conserving the natural resources for future generations.

The Association also has an initiative focused on sustainability, and they seek to transfer good practices to coffee producers in coffee production, through their environmental and labor policies. They also offer technical assistance, roasting and sensory laboratory analysis, as well as national and international promotion.

Anacafé promotes the brand Guatemalan Coffees, with special beans from regions and subregions of the country.

Guatemalan Coffees participates in international fairs and promotes the producer’s coffee in the different countries interested in purchasing coffee.

The Cup of Excellence auction, from the Alliance for Coffee Excellence (ACE) is another of the initiatives promoted by the Association.

28

GUATEMALABEYONDEXPECTATIONS .com

This tool exposes the local producers’ coffee to a select group of international buyers, members of the program.

To underpin the commitment that Anacafé has with the country, they created the Guatemalan Coffee Foundation for Rural Development (Funcafé), an initiative that seeks to promote the development in the rural areas and be the social arm of the national coffee industry since 1994.

Coffee culture development from a focus of sustainability on the three main axes: economic, social and environmental.

In 23 years, Funcafé has worked on three pillars: health, education and food security; benefitting 113 thousand families, almost 11 million patients treated and more than 919 thousand students covered.

In 2016, they assisted 66,304 health services for families that belong to the cooperatives and the associations of small coffee producers.

The above mentioned, is only one evidence of the consolidated work for comprehensive sustainability that Anacafé has been promoting for the last 57 years with the end to continue conquering the most demanding palates with the history, aroma and flavor of the best coffee in the world.

Guatemalan Coffees participates in international fairs and promotes coffee producers to the different countries interested in the aromatic.

www.guatemalancoffees.com

GUATEMALABEYONDEXPECTATIONS .com

29

Prosperous vegetables that bring borders closer From very early, men and women in the rural area go out to the field to harvest snow peas, sweet peas, French green beans and mini-vegetables, products that have allowed them to improve their family income and raise the level of development in the communities.

O

ne of the crops that stand out in this sector is snow peas that has contributed as a development promoter in Guatemala for more than 30 years and has brought opportunities to families in the rural areas.

It is known as the “peace crop�, given that it gave many families the opportunity to recover from an internal armed conflict, becoming a productive alternative and in that way having a promising present and better future.

These non-traditional agricultural crops and that have diversified the exportable supply of the country have traveled to the United States (65%), Europe (30%), Canada, Asia and Central America (5%), with a growing demand, allowing farmers to obtain better economic income and sustainable development, since they can harvest every 90 days with profits of up to six times higher to that generated by subsistence agriculture.

Guatemala is currently one of the biggest producers and exporters of snow peas, sent to approximately 70 million pounds annually. This vegetable is exported as a fresh product and frozen, in different packaging and presentations, to the world.

With more than 30 years of exporting excellent quality products and with high safety standards, complying with international norms and regulations, has allowed strengthening the productive chain, from organized producers,

30

GUATEMALABEYONDEXPECTATIONS .com

suppliers, service providers, exporters, land, sea and air transportation companies, in addition to indirect benefits generated in the communities from the increase in income vitalize the local rural economy.

Another product with grow in the sector is French green beans, with innovation in different types of packages required by the international markets of which 55 million pounds are exported a year, innovating in different types of packages required by the international markets, resulting in 55 million pounds exported each year.

The vibrancy and growth of the sector have allowed the business exporters to promote development while seeking to improve the

70

million pounds of snow peas and 55 million pounds of French green beans are exported yearly from Guatemala

quality of life of 50 thousand families in approximately 200 rural communities.

85% of the national production of snow peas, green beans and mini vegetables are located in the departments of Chimaltenango, SacatepĂŠquez and SololĂĄ. The success of the industry has promoted the development of new productive areas in Huehuetenango, El QuichĂŠ, Alta Verapaz, Baja Verapaz and Jalapa that complete the remaining 15%.

It is estimated that they grow around 11 thousand hectares of peas, 4 thousand of green beans and 6 thousand of broccoli that generate almost 60 thousand direct jobs per season and up to 1.5 million temporary workers.

www.arvejayvegetales.com

Official sources confirm that there are still good areas available for planting these crops and that there are at least 250 thousand hectares with potential to strengthen the vegetable sector, if they cound with the support and the necessary productive infrastructure.

The industry has matured, so the activities of the exporting sector focus on promoting the implementation of management systems for quality, good practices compliance in production processes and added value, sanitary and phytosanitary norms, national and international regulatory management, technology transfer, agricultural research as well as national and international commercial promotion.

In 2016, the National Pea Foundation (Fundarveja) was created as an initiative of the agroexporters businesses, with the objective of supporting the communities through corporate social responsibility, generating comprehensive development and better life conditions for the producer families of the rural area. This, through the programs and educational, nutritional and environmental safety projects, focused on the empowering and generation of opportunities for social and human capital development, respecting the identity and cultural practices as well as gender equality.

Exporting our high quality vegetables to the world, complying with world standards and with social business responsibility, snow peas, sweet peas, French green beans and other non-traditional vegetables are of great value towards the sustainable rural development of the country.

GUATEMALABEYONDEXPECTATIONS .com

31

Exportable supply continues to grow

http://sjagroexport.net/

32

GUATEMALABEYONDEXPECTATIONS .com

Ambassadors for Guatemalan Quality Acuamaya is a company recognized for being a pioneer in aquaculture and an important agent in the development of the shrimp industry in Guatemala.

F

ounded in 1983, Acuamaya is one of the first businesses in Central America, dedicated to the production, processing and sales of high quality farm raised shrimp.

The vision of the founders and a team of committed and passionate collaborators has allowed the company to become an ambassador for Guatemala in other continents.

The Acuamaya brands are Tikal, and Crystal Ponds, names that have reached and captured far away markets, and that proudly promote our Guatemalan origin.

The full traceability of their shrimp is one of the company’s key factors and a great differentiator from other world suppliers.

http://www.acuamaya.com/

production of shrimp naupli and post-larvae, and has been serving the needs of local and international clients with continued success.

The company believes in the great potential of Guatemala and therefore continues to invest towards the sustainable development of the country.

In order to succeed in today’s highly competitive world, Acuamaya believes in the importance of its human capital, therefore, developing local talent with the highest technical capacities and empowering highly committed work teams, which allows it to compete with the best and biggest companies in the world.

Acuamaya’s foundation is based on the principles of social responsibility, environmental sustainability and economic viability, generating employment and development opportunities for its local communities and protecting the marine-coastal ecosystems, in order to become a leading company and driver of Guatemala’s aquaculture sector.

Acuamaya is continuously investing in research and development in their operations, with three production farms, a laboratory with state of the art technology and genetic programs for the production of shrimp post larvae and a processing plant that is internationally certified.

The company can guarantee it’s most demanding customers the full traceability of the shrimp they buy; from the specific genetic families raised at the hatchery, management of the growth phases at each of 3 farms, up to processing and preparation for export of the product at the processing plant.

La Candelaria Hatchery is recognized as one of the most advanced and efficient of its type in Central America. As a result, Acuamaya is also a leader in

Through the careful preservation of the environment, the ecosystems allow for the development of aquaculture in a friendly and sustainable manner, making of Guatemala an incomparable place.

Moreover, its privileged geographical location, with easy access to ports on the Atlantic and Pacific oceans, allows for convenient export routes to clients around the world.

Acuamaya strongly believes that one of the keys for the sustainable development of Guatemala is through the export of goods and services.

GUATEMALABEYONDEXPECTATIONS .com

33

Aquaculture and Fishing Sector, more technical and innovative This relevant sector for Guatemala is increasingly positioning itself in the global markets through exports of US$250 million annually

34

GUATEMALABEYONDEXPECTATIONS .com

Above: Fresh tilapia produced in Guatemala Left: Ponds for shrimp farming on the South Coast

T

he growing global demand, for food coming from aquaculture and fishing, has allowed the Guatemalan industry to continue strengthening its strategies for the development of the sector, increase their productivity, diversify their products and increase their exports.

Traditionally, the products for extractive fishing have contributed to satisfying the feeding needs for thousands of Guatemalans for many decades; however, visionary business persons identified the huge potential for aquaculture as an important motor to generate food for export.

The Aquaculture and Fishing Sector is known for having highly technified industries that generate high valueadded products and high quality standards and food safety.

Most businesses have international certifications on their production processes, like Best Aquaculture Practices/ Global Aquaculture Alliance, Global Gap, among others, for which they require strict schemes for environmental sustainability, food safety, animal wellness and health and social business responsibility.

The products in this sector have gone into and satisfied consumers from the most demanding markets like the European Union, the United States, Mexico and Japan, reaching exports for over US$250 million annually. The

industries, to export their products to those markets are subject to strict official programs for control and monitoring in matters of food safety, animal health and traceability.

In order to strengthen this industry, the Aquaculture and Fishing Sector was created within AGEXPORT more than 20 years ago. It gathers more than 80% of the producers and exporters for fishing products in the country, and is made up of the following industries: shrimp farming, tilapia farming, tuna and mahi-mahi fishing, processing plants for fishing products, fish meal mills for aquaculture, fishing product traders, artisan fishing, and suppliers.

Its main objective is to promote the responsible and sustainable development; and facilitate and increase the volume of its product and service exports.

The associates of this sector are benefitted through institutional support on general and transversal themes, enjoying key services and participation in specific sector activities; and access to technical support to their relevant initiatives, including finding solutions to specific problems.

The industry is focused on identifying and adapting to latest trends in innovation, technology and consumer habits. It is also very conscious and committed towards satisfying the requirements for international markets and is looking into positioning their products leveraging the country image.

www.export.com.gt

GUATEMALABEYONDEXPECTATIONS .com

35

Guatemalan manufacturing:

added value and innovation The Guatemalan manufacturing sector represents 18% of the country’s economy

T

he manufacturing sector is in growth mode through its promotion of value chains, commercial intelligence, strategic alliances – public, private and academic, achieving a 3.6% growth in 2016.

Among the most representative products of the sector are diversified foods (liquid beverages, powders, beers and alcoholic beverages), confectionary (bubble gum, candy and chocolates), preserves (canned or glass packaged goods), processed foods (soups, sauces, dairy, cold-cuts), clothing and tobacco.

The manufacturing exports in 2016 were US$5,781 million, representing 55% of the total country exports and 8.3% of the GDP. Among the main markets for export are Central America, in addition to United States, Mexico, Dominican Republic and Europe.

Manufacturing generate almost 1 million formal jobs in the country, according to the National Statistics Institute. Many of them distributed in industrial parks designed specifically for the elaboration of different products.

The interest of entrepreneurs to pursue quality at low cost has allowed the sector to grow in the nostalgic, as well as other market niches.

The incursion from other countries into the Central American market, has been a positive challenge that has fostered innovation by Guatemalan entrepreneurs in order to preserve their market position.

An example that has revolutionized the market with new designs is the handicrafts sector: with

36

GUATEMALABEYONDEXPECTATIONS .com

decorative articles for the home and personal accessories (bags, jewelry, costume jewelry) which are highly desirable in the United States, Germany, Italy, France and Australia.

Upholstered furniture, multi-functional, with fine finishes and contemporary details, doors, windows made from Guatemalan mahogany, floors and beds, show the world the talent of young designers that are influencing trends at an international level.

Guatemala also offers other manufactures to the world such as electronic devices, refrigeration, spare parts, medical devices and cosmetics.

The plastics industry is one of the most important in indirect exports in the country, since it supplies other productive areas with packaging, rigid and flexible, wrapping and assembly pieces and products that increase competitiveness.

Among other industries that have stood out in the manufacturing and diverse manufacturing sector are footwear, pharmaceutical products, natural rubber, paper and carton.

Manufactures have maintained stable growth, since they have been able to diversify their supply and participate in different, highly prestigious international fairs, in addition to becoming an important tool for commercial expansion of the products made by Guatemalan hands.

The strategy is clear: to impact markets according to the global trends through the delivery of quality, research, innovation and good services.

Manufacturing has maintained growth and has diversified

GUATEMALABEYONDEXPECTATIONS .com

37

http://yaesta.com.gt/

Authenctic foods, like home-made W

ith more than 40 years in the food industry, Productos Alimenticios Yaestá was born with the vision of preparing authentic food, “ just like home-made”.

Their products are easy to make, practical and require little preparation time at home.

The company’s first product was powder beans, which’s slogan was “water, boil and ready (ya está)”, which later gave birth to the firm’s brand name. Sylvia Menéndez and her brother Francisco José both agree all their efforts as a family-run business have been worth every effort.

the world-famous snacks Tortrix.

Guatemalans are “hombres de maiz”, we can say that corn runs through our veins. Since the beginning, this company has focused on offering a great variety of corn-based products: tacos and other products filled with chicken, beef, pork and cheese; as well as pupusas filled with cheese, beans or loroco flower.

“We believe in Guatemala and If we had to open another company, we’d do it again in this country”

Productos alimienticios Yaestá was started by José René Menéndez Martínez, in 1973, who earlier founded the Company Alimentos René, S.A., the company that created

38

GUATEMALABEYONDEXPECTATIONS .com

During the 1980s, we created the corn-made nachos MUCHO NACHO. When we launched this product, on the first month we sold 50 bags! We all remember, a little nostalgic, the great satisfaction of our father.

Francisco y Sylvia Menéndez

Today, with high-tech equipment, the company produce more than 1,000 kg every hour, and can ship 10 containers daily. In

1998, we decided to diversify and start producing preserved foods, as well as frozen fruits and vegetables. Today, both parts of the company offer more than 500 jobs in Guatemala.

We have always tried to adapt our products to trends and customers’ tastes, targeting the Latino community abroad.

First, we focused on Guatemalans. Later, we tried to understand Salvadorans tastes and figure out what products they wanted, which led us to offer products like pupusas and corn or loroco ‘tamalitos’. Similar process was made with Hondurans in order to figure out the local products they missed.

Ten years ago, we also started focusing on Mexicans abroad and opened a factory in Mexico. From here, we produce traditional products like pumpkin flower, huitlacoche – a type of maize fungus -, sliced poblano peppers and habanero peppers.

Our main focus for exports has always been the Latino community around the world. This has helped us focus on a better selection of products. If a product is made for Latinos, we produce it. For local sales, we focus on easy-to-make products, which is one of the reasons why we are growing in the Central American market.

We have wide growth plans. Each year, we established a commitment to launch a set number of new products.

Guatemala is the country where we see higher growth opportunities, the highest in Central America. Our people are loyal, hard-working, kind

and honest. We are ‘Chapines’, our kids are Chapines. For us, there is no other place like Guatemala.

Production costs are another key area to attract investors since our local supplies are very well priced along with highly competitive electric rates, which is a key advantage for the country.

In Guatemala, we do businesses seriously. We have ideal weather conditions and it is why we have an agricultural production almost all year long. We have coasts in both the Pacific and Atlantic Oceans, which allows us to export our products to virtually all countries, as well as good freights to ship them.

Yaestá works on a culture of constant training and development of its talent; in addition to processes automation and strict quality controls. The company possess several international certifications and supply big drive-thru and fast-food restaurant chains. These clients audit the company on topics like social corporate responsibility, quality and the environment.

We own a factory of appetizers, frozen and preserved fruits and vegetables, fruit pulp in Guatemala; added to a preserved food factory in Puebla, Mexico.

Our production capacity allows us to ship up-to 10 containers daily.

We export our products to El Salvador, Honduras, Nicaragua, Costa Rica, Panama, the Dominican Republic, Mexico, Canada, the United States, Spain, Italy and Germany. We have also made shipments to Greece and the Netherlands.

GUATEMALABEYONDEXPECTATIONS .com

39

Ecofiltro, the Guatemalan invention donated to humanity The ecological filters are exported from Guatemala and benefit the different communities in the world that don’t have access to purified water.

I

n the 1980’s, José Fernando Mazariegos from Sololá presented a project to filter water easily and economically at the Central American Institute for Research and Industrial Technology. Instead of patenting it, he chose to donate it for the benefit of humanity and that’s how the history of Ecofiltro began.

Over time, the idea was adopted by Philip Wilson, as a social business to make it sustainable and in that way guarantee providing more purified water to Guatemala. “We have the heart of a foundation, but the mind of a business”, he says. “My sister gave away 2 thousand ecofilters per year, but at that rate, we were never going to reach our goal of one million families for 2020.”

access to potable water, after we would find them discarded However, when you give them economic value, the families them much more.

some time or unused. a symbolic appreciate

Currently, we have reached approximately 300 thousand families, mostly in the rural areas. The ecological filters are exported from the Guatemalan factory to the United States, Europe, Central America, Mexico and Colombia.

The ecofilter is made of clay, sawdust and colloidal silver.

Currently, the invention with Guatemalan ingenuity is produced in 59 factories throughout Africa, Asia and Latin America.

40

“What surprises me is that he – José Fernando Mazariegos – doesn’t benefit financially. We do not distribute earnings, we reinvest it all.

We want to return something to the country”, says Wilson.

One of the important characteristics of Ecofiltro is that everything we need to produce them is 100% Guatemalan. “Except for the stainless steel taps, we still haven’t found those, but our objective is to also generate more jobs in the country”, says the businessman.

One of the principles of Ecofiltro is not to give the filters away; when we donated them in some communities that did not have

The social company is currently in a phase of expansion in order to double its artisan production capacity.

GUATEMALABEYONDEXPECTATIONS .com

www.ecofiltro.com

A country of great opportunities “More than two decades ago, Guatemala opened its doors for me to venture into a non-traditional economic sector. Perseverance allowed me to make a dream come true, to run a company in a complex environment”.

Dr. Fridolin Birk, German, Economist, Geologist and CEO of EMOCON Group

I

nvested in Guatemala and I am not the only foreigner who does, because there are many spaces available in the market, although you have to have a nose for investment. In this country, there are great opportunities in traditional businesses, but you can certainly work in different and innovative businesses.

market, although the spirit of constant innovation always prevails. We are the only company in the underground construction sector that has made progress in the country and Central America and we have formed our trained staff of more than 10 nationalities, a great team of experienced employees.

As EMOCON GROUP we have participated in the development and construction of underground tunnels, roadworks, mining and hydroelectric power plants.

We are focused on a select market with considerable billing, since the activities in our construction segment run the 365 days of the year, for which we developed a very efficient Planning and Logistics Department.

I did not imagine the impact that the company would have when we started, however, the company created its own school to produce skilled labor, finding talented workers who are the foundation that allowed us to grow quickly. From 2004 to 2017, we were contractors for several multinational companies for which we built more than 50 kilometers of tunnels of all sizes and technical characteristics.

www.grupoemo.com

The set of elements, processes and policies of quality and execution form the basis of success for EMOCON GROUP in Guatemala and its expansion in the region.

I remember that in the Guatemalan construction market there was no one who wanted to do that kind of work. Traditional construction companies did not want to assume the risk of underground work, recognizing this, I took the opportunity to build my own business in a field where not many wanted to be.

Over the course of 13 years and having grown to a 400 collaborator payroll, we have found support and solidarity in local supplier companies, which have supported us, and have helped us expand our operations to Honduras, Nicaragua, El Salvador and Colombia.

In EMOCON GROUP we have learned to adapt to the changes and demands of the construction

We work in an area where international competition of very select companies is strong.

Underground and hydraulic construction is a highly sensitive segment regarding security management for all processes that make up its work so the philosophy of safe work management is essential for EMOCON GROUP. As a golden rule we have experienced that when investing in any productive sector, we must remain flexible and open to change.

Guatemala, as a country, offers great opportunities that become a profitable business if people prepare professionally, have a fighting spirit and the will to grow. Our commitment as a company isn’t limited only to meeting the expectations of our customers, but to exceed them.

GUATEMALABEYONDEXPECTATIONS .com

41

Vitality in haute couture The apparel and textile industry of Guatemala is an attractive and vibrant sector that in addition to being labor-intensive, generates significant impact in the community where it settles.

T

he fact that it counts with an integrated cluster, in other words, that in it they have all the supplies necessary to make a garment in the country, means ease of access and versatility to invest in different sectors of the industry. It also signifies opportunities for growth and expansion for any business from the sector.

Sector profile The apparel and textile industry has transformed into becoming dynamic, flexible and competitive.

It is the now the main product for Guatemala’s exports.

In 2016, the sector exported around US$1.526 billion. This industry represents 8.9% of the GDP in the country, if we consider their production and the business generated by the rest of the cluster.

This industry, unlike others in the Central American region, has the ability to place high added value to their garments, since they have the ability to manufacture high complexity products, like winter coats and evening gowns.

On average, the added value of the garments made in Guatemala is up to 44%. In Central America, Guatemala has one of the highest minimum wages, which has led the industry to concentrate on garments with high added value and more finishes.

The proximity and relationship with the United States has allowed the garment industry to be more attractive and competitive for placing orders.

What makes the country attractive

Advantages Guatemala has an integrated supply chain, since buyers in the country can find everything from threads and textiles through manufacturing, finishes, packaging and shipment and experienced designers that can adapt and work the garments according to the clients needs.

The Guatemalan textile industry is highly flexible, which means that they can receive different types and order sizes. This quality is increasingly important, especially if we consider global trends like Fast Fashion.

The Fast Fashion trend has revolutionized the industry, moving inventories quickly, so the garments must be manufactured in small amounts, quickly and at a low cost so the stores can manage high turnaround rates.

42

GUATEMALABEYONDEXPECTATIONS .com

http://vestex.com.gt/

Guatemala proposes interesting opportunities that make placing orders more attractive. The United States has become a strategic partner in Central America, for their experience and proximity, as well as the conditions and the free trade agreement signed with the northern country (DR-CAFTA).

In addition, the decision of the United States to withdraw and review their trade agreements with competitors, improves the opportunities for this region, and compete in conditions of equality.

The catalogue and on-line sales go to the largest chains, which require very short supply cycles. Our country provides tools that offer legal certainty for the sector, allowing it to retain its current businesses and jobs, while opening the opportunity for sustainable growth in the near future.

New paths for success

Logot ipo grupo Ka r ms

Diversification has been key in the expansion of the company.

G

rupo Karims was founded at the beginning of the 1970s in Pakistan by the Amdani family, in the area of basic products and then transitioned into the textile industry.

Due to their acceptance in Asia, in 1991 they founded the first business in America, specifically in Honduras, to later open in Guatemala, El Salvador, Nicaragua, Costa Rica, Colombia, Mexico, the United States, Dubai and the Dominican Republic.

The free trade agreement between Central America and the United States is another one of the great benefits, because it has allowed us to generate www.grupokarims.com greater business and reduce the tariff barriers that Colores Corpor a tivos for other countries are a limitation.

At the same time, Grupo Karims has competitive #0068F F costs, which allows us greater productivity with the lowest utility costs in the region.

#BBD432

#FF8600

Grupo Karims is one of the most solid and innovative multinational companies in the region of the Americas, due to its culture of service and innovation.

This allowed them to diversify and create new divisions with the business, like Honduras Spinning Mill, that manufactures millions of pounds of thread; Nicaragua Spinning Mill produces innovative yarns with the highest technology in the region; Manufacturing Pride, offers the complete package, that is then exported to the big brands in the United States; Pride Performance Fabrics, fabric division, and Pride Chemicals, which manages chemical products, textiles and real estate.

It was decided to invest in Guatemala because the country has the adequate conditions to generate greater productivity due to a perfect geographic location, which allows importing our products almost immediately, so we are able to immediately give our clients yarn, and due to the same location, they can quickly export the final product to the big brands.

At the same time, the human and professional value that Guatemala has is unique to the region, with dynamic, effective, cheerful and very motivated staff to reach their goals.

Service Culture Other main benefits that Grupo Karims has in Guatemala are the duty free zones, which allow us to offer our clients competitive prices and immediate deliveries thanks to a broad variety of storage warehouses, which makes us highly competitive in the region.

The success of Grupo Karims is due to a culture of service and innovation, because it allows to always surpass the expectations.

One of the famous phrases that is most adequate to the essence of Grupo Karims is the following: “If you want to succeed you should seek out on new paths, rather than travel the worn paths of accepted success.�

John D. Rockefeller, US Tycoon.

GUATEMALABEYONDEXPECTATIONS .com

43

We are the engine that boosts the country’s development

www.banrural.com.gt

44

GUATEMALABEYONDEXPECTATIONS .com

Solid Financial System The Guatemalan Financial System occupies the 18th position worldwide due to its strength, according to the World Economic Forum

G

uatemala has a solid financial and banking system. In 2016, the Guatemalan economy grew by 3.1%, according to the Guatemalan Central Bank, boosted by a high flow of remittances and private consumption.

After a decade of merges and acquisitions among banks and financial entities, together with the arrival of foreign firms, regional financial groups have consolidated their presence in the financial market.

Seventy-two percent of all account holders have a strong preference for savings accounts. It is estimated that every adult in Guatemala own 1.4 bank accounts. Additionally, more than 750 thousand people requested a bank loan, with a total amount that ascends to Q70.3 billion (US$9.35 billion).

The national banking system is represented by 18 institutions, offering services in Quetzals, US Dollars and Euros (loans only given in Quetzals and US Dollars). They also offer linked services with the main financial institutions in the world and offer a wide range of financial services for international trade, such as credit services, international transfers, collections and fiduciary requests, among others.

Banks and financial institutions operate under an unrestricted exchange rate system both for depositing or

withdrawing foreign currencies. Banks only need to comply with money laundering and terrorism financing regulations.

The banking entities offer extensive electronic services, such as an integrated inter-banking transfer system known as ACH and strong geographic coverage in Central America to offer services to their customers’ operations in the entire region.

Risk-free The international credit rating agency Fitch Ratings kept their credit perspectives for Guatemala as ‘stable’, which highlights that their BB rating for the country was given due to a combination of better economic growth expectations and inflation levels within the target range. This, added to good financial indicators.

18 +16

banking institutions with 3,558 branches as well as 6,899 agents and 3,763 ATMs in the country

million monetary accounts, savings and deposits in Guatemala

+Q206

million in bank accounts

Source: Guatemalan Banking Superintendence

The rating agency foresees that the fiscal deficit will be 2.1% of the GDP and total public debt will be at 25% by 2020, below the expected levels for the rest of the countries with the same risk rating.

Although the country’s economic growth depends on the stability of the advanced economies, the figures reveal that the financial system can continue granting financing support to boost the economy without becoming a risk for its financial stability.

GUATEMALABEYONDEXPECTATIONS .com

45

We export knowledge to the world The services industry complements the Guatemalan supplies sent worldwide.

A

state-of-the-art industry has taken off in Guatemala. Labs, sustainable tourism, health and wellness tourism, software development, digital products and the ‘creative industry’ allowed the development of a high-quality industry that takes advantages of all the opportunities of today’s modern world.

This industry has become a key job-creation sector both to hire labor or for selfemployment. This is key to the Guatemalan economy, always with the objective of generating business opportunities in the main international markets.

Entrepreneurs in this industry are always looking to boost services in different areas, with the objective of growing this industry in the country and integrating to what international companies in today’s digital economy require.

Globally, service companies are the ones with the highest value nowadays, which explain the enormous potential for this industry in the country. The Internet of Things, based on services, is one key global trend nowadays.

Sustainable tourism providers (tour operators, airlines, hotels, restaurants, consultants) are part of the national supply.

Guatemala offers a broad portfolio for visitors looking for medical alternatives, health, well-being and high-quality leisure, at very competitive prices.

Laboratories also offer analysis services for industrial companies, agriculture, construction

46

GUATEMALABEYONDEXPECTATIONS .com

or health firms. These firms have high growth opportunities due to the current market trend on increasing the safety requirements for food and medication; as well as environmental impact reduction and quality control for products exchanged in international markets.

The country has an innate cultural and creative talent. Writers, sculptors, painters, actors, videogames and TV program productions are some of its cultural specialties.

Warmth is one of the Guatemalans main characteristics, and can be experienced in the call center industry and its more than 41 thousand agents. From the country, they offer customer assistance to clients in the United States, Canada, Mexico, Central America, the Caribbean and Spain.

These companies offer finance and accounting services, procurement and logistics, human resources and knowledge services.

Guatemala is a pioneer in outsourcing in Central America. It offers very competitive salaries, represent more than USD$850 million in exports and contribute 1.2% to the country’s GDP. Other competitive advantages are: having the same time zone as the United States, being able to legally hire part-time and a strong telecommunications infrastructure.

The services industry is projected to grow by 12% annually and it can work with clients from all over the world.

US$1.178

$

million is the total estimated for services exports in 2016

Guatemala offers services to businesses on the Fortune 500 list

3

million people

million people live in the Guatemalan Metropolitan area, which opens the possibilities for investment in transportation services

+10 medical

specialties for health and wellness tourism

Neutral accent,

one of the strongest competitive advantages for services.

US$25

16

million exported by Guatemala on lab services

internet providers

3

submarine and 2 land fiber optic networks

3

phone service providers

18.2

million mobile lines

140

1.25

telephone lines per capita (mobile and land)

audiovisual companies that export US$800 thousand annually from Guatemala

49

Guatemala’s world rank on Facebook users

41 thousand direct and 100

thousand indirect jobs generated by call centers

Certificates

Sustainable tourism companies stand out for good social and environmental practices

Services industry A state-of-the-art industry that has taken-off in Guatemala and estimate a 12% annual growth

GUATEMALABEYONDEXPECTATIONS.com

47

Guatemalan Digital Talent Shines in International markets

Guatemalan entrepreneurs have found in Innovation and creativity the perfect combination to achieve important growth in the software development industry in only five years.

T

o name an example, the president of the Guatemalan Software Exports Commission (SOFEX) Devadit Barahona highlights that in 2016 the country sold more than US$135 million in products and services of this industry.

This, due to the country’s strategic location, its human talent and the approval of important laws to boost these companies.

“There are new projects being started every day. We are always greatly surprised that more and more companies decide to outsource their software production, giving us the opportunity to better suit their needs”, said Mr. Barahona.

Software companies have identified clients in industries like banking, tourism and sports, and have been able to cover their needs by offering high-technology tools.

One of the key elements of the country for this industry is the people’s neutral accent to offer customer support to other countries, especially in English. Being the United States a strong economic power,

48

GUATEMALABEYONDEXPECTATIONS .com

our closeness to that market has also been an asset.

“Our natural market is Mexico, is the country where most of us look into”, states Mr. Barahona.

For 2017, the industry expects to reach a 9% growth in exports. It also foresees to create as much as 5 to 6 thousand new jobs per year, which would be higher-paying jobs compared to other industries.

One key advantage that the country offers for these firms is the ‘demographic bonus’, as Guatemala is a country with an important youth proportion, which stand out for their creativity.

Another relevant factor is Guatemala’s legislation, as it eases the doing business for software exporting companies and boost their competitiveness.

Innovation is another topic to display. At least two times each semester, the country launches new additional products that seek to give additional benefits for clients.

Our legislation eases the job for Guatemalan software exports.

www.export.com.gt

GUATEMALABEYONDEXPECTATIONS .com

49

From Guatemala to the World From the very beginning, AGEXPORT was born with the idea of positioning Guatemala to the entire world and displaying the flavors, scents and colors that are produced in this country.

T

he Guatemalan Exporters Association was founded in 1982 with the objective of introducing high-quality products made by small, medium and large companies, as well as rural producers, to the entire world. The association is driven by people who inspire, overcome barriers, work hard to reach their goals and fight to set Guatemala up high.

Joining top-quality talent with business leaders, the association started by incentivizing the participation of Guatemalan businesses in trade promotion platforms and international fairs; as well as establishing academic and publicprivate alliances.

Over the years, the association’s achievements include establishing important international businesses, starting integrated business supply chains, attracting multi-industry cooperation and helping several companies to comply with labor and environmental regulations.

It has also focused on easing exporting processes by establishing strategic alliances with government authorities, expediting procedures and reducing times.

The institution is divided into six exporting sectors, which join together business leaders from 26 different working commissions of specific exporting activities.

It also works to boost the country’s international competitiveness through reducing their energy and transportation costs, focusing on other important fiscal, customs, logistics, trade and labor topics.

AGEXPORT has become the institution that guides the country to boost its commercial and economic growth through exports.

It also has clearly defined all public and private actions needed to boost all exporting industries.

Each year, Guatemalan products and services reach more countries, thanks to the support offered by AGEXPORT to all companies.

Furthermore, the country’s exports have been growing steadily in recent years, reaching more than US$ 10.45 billion on 2016.

AGEXPORT’s main goal is to guarantee a full satisfaction of all its members, offering services like business opportunities, representation in different national and international forums; in addition to involving them in different important alliances.

All these, with the main objective of increasing all companies’ revenues and promoting higher exports for the country.

Through the Foreign Trade School, created in 1992, AGEXPORT has trained more than 85 thousand people and furthered their knowledge in trade topics, with specialized programs designed to attend the needs of exporters.

Due to its values and faith in the capacities and effort of Guatemalan businessmen and women, the Association has become a leader for Guatemala to reach all its economic potential through exports.

1985 75%

50

25%

2016 In 1985, 75% of all Guatemalan exports were traditional products like coffee, banana, sugar, cardamom, meats and cotton, and 25% were nontraditional products.

GUATEMALABEYONDEXPECTATIONS .com

76.3%

23.7%

To 2016, the scenario changed radically: 76.3% of exports are non-traditional, mainly garments and textiles, wood furniture, fruits, vegetables, plants, honey, fishing and aquaculture products, cosmetics, chemicals, plastics and foods, among others, while 23.7% correspond to traditional products.

Home for Guatemalan exporting company’s

www.export.com.gt

GUATEMALABEYONDEXPECTATIONS .com

51

Important contacts in Guatemala

Guatemalan Sugar Association – Asazgua – http://www.azucar.com.gt/ Guatemalan Exporters Association - AGEXPORT http://www.export.com.gt/ National Coffee Association – Anacafé – https://www.anacafe.org Guatemalan Central Bank - Banguat https://www.banguat.gob.gt/ Guatemalan Chamber of Commerce - CCG http://www.ccg.com.gt/web-ccg/ Guatemalan Chamber of Finance Telephone: (502) 2219-1991

Guatemalan Chamber of Industry - CIG http://www.cig.industriaguate.com/ Guatemalan Chamber of Tourism - Camtur http://www.camtur.org/ Guatemalan Agriculture Chamber - Camargro http://www.camaradelagro.org/es/ Chamber of Commerce and Services Business - Cecoms http://www.cecoms.org/ Guatemalan Chamber of Construction - Construguate http://www.construguate.com/ Committee of Agricultural, Commercial, Industrial and Financial Associations – CACIF – https://www.cacif.org.gt/ Private Competitiveness Council http://www.mejoremosguate.org/cms/en/what-are-we-doing/ consejo-privado-de-competitividad Federation for the médium and small Enterprise - Fepyme http://www.fepyme.org.gt Foundation for the Development of Guatemala – Fundesa – http://www.fundesa.org.gt/ Guatemalan Tourism Institute – Inguat – http://www.visitguatemala.com/ Ministry of Economy – Mineco – http://www.mineco.gob.gt/ Ministry of Foreign Relations - Minex http://www.minex.gob.gt/ Trade, Investment and Tourism Attaches – Pacit – http://www.mineco.gob.gt/pacit National Competitiveness Office – Pronacom – https://www.pronacom.gt/ Unique Window for Exports – VUPE – http://vupe.export.com.gt/

52

GUATEMALABEYONDEXPECTATIONS .com

Photography courtesy: Anacafé