If your guidebook still refers to San Juan del Sur as a “sleepy little beach town,” it’s time to buy a newer, updated edition. Over the past few years, this Pacific coastal hub of investment and tourism has developed so quickly that witnessing it is a bit like watching time-lapse photography. Every year, new hotels, restaurants, and enormous cliff-top homes spring up.
In the past five years alone, 35 new tourism businesses have appeared, and construction loans for small and medium-sized businesses have increased by 97%, according to a recent survey by Calvet & Associates. With an additional 50-plus tourism investment projects (including hotels, condos, and residential communities) planned along the Pacific coast, San Juan del Sur’s growth spurt is only just beginning at age 153.
Taking Control of Growth
To keep up with the demands of tourism, San Juan del Sur is taking control of its future after years of unregulated growth. A new building code, passed earlier this year, includes environmental considerations and limits construction heights to 13 meters. There are ongoing efforts to refine these codes, and a forthcoming Coastal Law will add further construction regulations.
Ambitious New Plans
Some plans for San Juan del Sur are ambitious. One blueprint aims to redevelop the town’s south side with a new oceanfront park, hotel, boardwalk, and marketplace with boutiques, bars, and restaurants in the old warehouses near the new fishing wharf. This project also includes the reconstruction of the church and Central Park to preserve the town’s unique charm.
According to Eduardo Holmann, mayor of San Juan del Sur, his government is calculating costs and will soon seek funding from international donors. “We’ve got the master plan we are promoting, but this will all depend on whether we can raise the money,” he said, hoping the project might start as early as the end of this year.
A New Business Plan
This month, San Juan del Sur introduced a new business development plan led by Calvet & Associates, incorporating input from local residents, businesses, and tourists. The plan aims to encourage economic growth by helping small and medium-sized businesses organize themselves to compete with larger tourism operators. It also calls for the government to reinvest tax revenue into public infrastructure, fostering more investment.
Raúl Calvet, president of Calvet & Associates, said, “We need to organize them to compete as businesses and not ask for help. If we look at them as poor, that will only keep them in poverty.” The plan includes setting up a training center and creating a municipal bond program to help finance local business growth.
Facing Growing Pains
San Juan del Sur’s rapid growth has brought challenges, including rising crime, gangs, and prostitution, mostly from outside the town. With only 13 police officers, Mayor Holmann is lobbying for more resources from the Ministry of the Interior. “San Juan is viewed as a secondary town in population, but with all the tourists, we need to be viewed on par with Granada,” he said.
Looking Ahead
If the town can overcome these growing pains, San Juan del Sur is likely to become a major international tourist destination within the next decade, predicts Calvet. “I think there will be at least one, perhaps two major 100-plus-room hotels and lots of other tourism development spanning out along the main road into town,” he said. San Juan del Sur will not only attract tourists but will also become a go-to spot for expatriates living in nearby communities seeking quality dining and entertainment options.
