Law for the Promotion of Sustainable Rural Tourism

This Law has as its objective to create the legal and institutional framework, as well as the necessary incentives for the development of Sustainable Rural Tourism in Honduras. The approach of this Law shall be prioritarily community-based.

The objectives of this Law are:

• 1)

  To articulate public policies and competencies related to Sustainable Rural Tourism;

• 2)

  To establish financing mechanisms and fiscal incentives for enterprises in the field of Sustainable Rural Tourism;

• 3)

  To establish mechanisms for sustainable exploitation of Natural Resources with rural tourism potential; and,

• 4)

  Generation of rural employment.

Rural Tourism Projects are:

• 1)

  Rural Tourism Inn: Type of establishment with a minimum of three (3) rooms, equipped with private bathrooms, that can offer food and beverage services and that is located in a rural setting;

• 2)

  Sustainable Rural Tourism Travel Agencies: Travel agencies exclusively dedicated to Sustainable Rural Tourism;

• 3)

  Thematic Activities of Sustainable Rural Tourism: Tourist attractions developed from rural tourism resources; and,

• 4)

  Food and Beverage Services: Establishments that provide services of traditional food and beverages, in places and modalities defined as Rural Tourism by the National Tourism Authority. The Tourism Projects in particular shall be qualified as such by the National Tourism Authority.

The developers of Sustainable Tourism Projects shall have the following benefits:

• 1)

  Exemption for five (5) years from the effective date of this Law, for the importation of goods and inputs necessary for the creation or improvement of their enterprises, in accordance with what is established in this Law;

• 2)

  Exemption for three (3) years from the effective date of this Law from the payment of Sales Tax, for the purchase of goods and inputs necessary for the creation or improvement of their enterprises, in accordance with what is established in this Law; and,

• 3)

  Reduction of fifty percent (50%) in the payment of Income Tax, for the period of five (5) years from the Start of Operations, without prejudice to the deductions established by Law. To apply for the benefits, the investments referred to in numerals 1) and 2) must be approved by the National Tourism Authority.

Natural persons or legally constituted legal entities that carry out activities categorized as Tourism Projects by the National Tourism Authority, in accordance with this Law, may opt for the benefits conferred by this Law. They shall receive the full benefit when they are within the investment ceiling that it establishes. The aforementioned ceiling shall not apply when it concerns Cooperatives, Peasant or Municipal Associations or, in the case of mixed enterprises where at least fifty-one percent (51%) is investment from these.

Without prejudice to the specific competencies determined by Law, it corresponds to the State Secretary in the Office of Tourism the governing of public policies, programs and projects in the matter of Rural Tourism, for which purpose it is denominated in this Law as the National Tourism Authority. For this purpose, it shall coordinate policies, programs, plans and actions on the matter, in order to rationalize efforts and resources, optimize results with the State Secretaries in the fields of Agriculture and Livestock, Natural Resources and Environment, Tourism and Education, Institute of Forest Conservation (ICF), National Agrarian Institute (INA), National Institute of Professional Training (INFOP) and Honduran Institute of Anthropology and History, National Chamber of Tourism, Associations of Coffee Producers, Coffee Fund and the Honduran Coffee Institute, among other institutions. Without prejudice to guaranteeing environmental sustainability, the State Secretary in the Offices of Natural Resources and Environment shall apply a special procedure for the expedited approval of the corresponding environmental licenses.

The State shall establish mechanisms that guarantee funds to grant credits for the creation, improvement or expansion of Rural Tourism Projects, under conditions of accessibility and at a social interest rate.

The goods imported or acquired under the protection of this Law may not be transferred, leased or conveyed for any purpose, without previously paying the amount of the tax not collected by virtue of the benefits thereof, except with reasoned authorization from the National Tourism Authority. Third parties who intend to acquire the enterprises or goods or inputs introduced into the country under the benefits of this Law to continue rural tourism enterprises or to complement or expand their own Rural Tourism Projects must obtain prior authorization from the National Tourism Authority. Authorization shall equally be required to dispose of the referred enterprises, parts, sections or accessory goods, which shall be granted when they imply modernization or improvement. The foregoing shall be understood without prejudice to judicial foreclosure proceedings.

Those who rely on this Law to improperly use its benefits or having used them lawfully, negotiate them for another purpose, except forced execution, shall be sanctioned with a fine equivalent to double the amount not collected, without prejudice to the corresponding administrative and criminal liability, where applicable.

The State of Honduras guarantees that Tourism Developments shall not be affected by groups of regular and irregular interests, of particular interest that go against free initiative and the integral development of the area of influence of the Tourism Project in its different stages from study, design, construction and operation.

This Law shall be regulated by the State Secretary in the Office of Tourism, within ninety (90) days from its effective date. For this purpose, prior consultations shall be held with the institutions involved in its implementation.

This Law shall enter into force the day after its publication in the Official Newspaper La Gaceta. Given in the city of Tegucigalpa, municipality of the Central District, in the Hall of Sessions of the National Congress, on the ninth day of the month of August two thousand eleven. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT RIGOBERTO CHANG CASTILLO SECRETARY GLADÍS AURORA LÓPEZ CALDERÓN SECRETARY To the Executive Branch. Therefore: Execute. Tegucigalpa, M.D.C., August 30, 2011. PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC THE STATE SECRETARY IN THE OFFICE OF TOURISM. NELLY KARINA JERÉZ CABALLERO