In addition to the fiscal incentives of investing in the tourism sector in Nicaragua, there are other reasons why a tourism-related investment may be a very good prospect. Nicaragua has various natural attractions to serve as a magnet for eco-tourism. It has several active volcanoes. Moreover, Nicaragua has many hundreds of miles of undeveloped and unspoiled ocean coastlines. Good property, even ocean view, is still available and relatively cheap, even in comparison to the rest of Central America.
Public safety is quite good.
While you may encounter attractive opportunities in this sector, you also must carefully weigh the risks. Perhaps the most serious is the problem of shaky property titles. As we noted earlier, the Sandinistas engaged in wholesale confiscation of private lands. Laws were enacted to legalize some of the confiscation, but the government has yet to compensate many of the original owners, many of who may pursue legal action to recover their property. A title search by a reputable local attorney, which extends at least back through the 70s, is a must to avoid untold grief later.