The Least Visited Country? Why Tourism in Paraguay Is a Hidden Opportunity for Investors
The tourism sector in Paraguay represents one of the best-kept secrets for profitable investment in South America. For years, content creators have labeled this nation as the least visited destination in the region. However, this apparent lack of mass tourism masks an emerging market with extraordinary potential returns.
While traditional destinations suffer from overtourism, the Paraguayan market offers untapped land and low competition. For strategic investors, entering during this early phase provides a competitive advantage before the market fully takes off. Throughout this analysis, you will discover how this sector operates and where to find the best capital opportunities.
SENATUR’s Role and Tourism Trends Over the Last Decade
To understand the business, we must analyze public management and official tourism figures in Paraguay. The National Secretariat of Tourism (SENATUR) is the official body responsible for regulating, promoting, and structuring the sector. This institution works alongside key ministries to attract foreign capital through attractive tax incentives.
Over the past ten years, visitor numbers have shown steady growth. The country expanded beyond traditional border tourism to diversify into corporate, event, and eco-tourism sectors.
Historical Evolution and Projected Visitors (SENATUR)
| Period / Year | Estimated Annual Tourists | Dominant Traveler Profile |
| 2014 – 2016 | 600,000 – 800,000 | Shopping and border tourism |
| 2017 – 2019 | 1,100,000 – 1,300,000 | Growth in corporate segment |
| 2020 – 2021 | Pandemic Recovery | Massive surge in domestic travel |
| 2022 – 2026 | 1,500,000+ (Projected) | Nature travel, sports, and global events |
Traveler profiles have shifted dramatically. Asunción and the Corporate Axis account for high demand in business travel. Simultaneously, domestic eco-tourism experienced a massive boom. Additionally, hosting major global sporting events like the 2030 FIFA World Cup guarantees a steady flow of international visitors.
Receptive Infrastructure and Market Capacity
Evaluating current receptive infrastructure is essential for any investor. The Paraguayan market displays a clear contrast between urban hubs and the country’s interior.
Infrastructure Readiness by Region
| Geographic Zone | Infrastructure Status | Investor Opportunity |
| Asunción & Greater Asunción | High (Global hotel chains, VIP dining) | Short-Term Rentals (STR) & corporate boutique hotels |
| Encarnación & Ciudad del Este | Medium-High (Shopping & beach facilities) | Entertainment complexes & private transit services |
| Interior & Natural Areas | Developing (Local inn networks) | Luxury eco-lodges, glamping & experiential travel |
Urban centers boast top-tier international hotels. However, quality accommodation decreases as you move further into rural areas. This scarcity of mid-to-high-end lodging in the interior presents an outstanding opportunity for sustainable tourism developments.
Public-Private Coordination in the Tourism Sector
A major strength in Paraguay today is the active collaboration among sector stakeholders. SENATUR does not work in isolation. The agency actively builds strategic partnerships with private enterprise to professionalize national tourism offerings.
Strong industry associations drive sector development. The Hotel Industry Association of Paraguay (AIHPY) works to standardize hospitality quality. Meanwhile, the Paraguayan Association of Travel Agencies and Tourism (ASATUR) coordinates international and domestic tour operations.
Key Joint Initiatives and Thematic Routes
- Jesuit Route: A cultural itinerary connecting municipalities, local guides, and hotels in southern Paraguay.
- Sugarcane Route: An industrial and culinary tour developed alongside private spirit producers.
- MICE Tourism (Meetings & Events): Direct coordination with the Asunción Convention Bureau to secure international summits.
- Community Training: Public programs integrating rural communities into the tourism value chain.
This institutional alignment simplifies entry for new investors. Streamlined administrative processes help expedite business setups.
Does Starting a Tourism Business in Paraguay Make Sense?
The short answer is a resounding yes. However, success lies in targeting high-value niches, exclusive experiences, and corporate services rather than mass tourism.
The country provides unique macroeconomic conditions that maximize investor returns. While high tax rates erode margins in neighboring countries, Paraguay protects private capital through free-market policies.
Financial Reasons to Invest in Paraguayan Tourism
- Low Tax Burden: The simplified tax system lets you keep a higher share of net profits.
- Competitive Operational Costs: Land values and labor costs remain highly accessible for foreign investors.
- Currency Stability: The guaraní ranks among the most stable currencies in Latin America. This protects revenue streams and cash flows.
- Unrestricted Profit Repatriation: Capital controls do not exist, allowing seamless dividend transfers abroad.
Business Opportunities for Small and Medium Investors
You do not need millions of dollars to profit from the country’s tourism growth. Low entry barriers allow investors to enter the market with agile structures and quick returns.
1. High-Yield Short-Term Rentals (STR)
Purchasing pre-construction apartments in Asunción’s Corporate Axis is a proven strategy. Steady demand from corporate executives and weekend travelers ensures high occupancy rates on platforms like Airbnb and Booking.
2. Glamping and Experiential Eco-Lodges
There is high demand for upscale eco-lodges. Building sustainable structures in scenic regions like Paraguarí or Cordillera requires modest startup capital while commanding strong daily rates.
3. Experiential Travel Agencies and Private Tours
Modern travelers demand custom itineraries. Launching specialized tour operations offers solid profit margins. Birdwatching tours in the Chaco region and private culinary routes represent lucrative markets.
4. VIP Tourism Transport
Deficits in quality public transport create market gaps. Operating a fleet of premium minivans for private airport transfers and corporate retreats generates consistent income.
Investment Opportunities for Large Capital Outlays
For financial funds and real estate developers, Paraguay offers an ideal environment due to economic stability and available land with strong growth potential.
1. Chain Hotels in Emerging Secondary Cities
Cities such as Concepción, Filadelfia, and Luque are experiencing rapid industrial and agricultural growth. However, they lack international corporate hotels. Building hotel infrastructure in these hubs ensures year-round corporate occupancy.
2. Tourism Real Estate Developments and Resorts
Gated holiday communities featuring resort amenities are growing rapidly. San Bernardino, the Paraná River banks, and regions around the Itaipú and Yacyretá dams offer ideal settings for secondary home developments.
3. Adventure Infrastructure and Private Marinas
Nautical tourism along the Paraguay and Paraná rivers requires modern facilities. Developing private marinas, yacht clubs, and adventure parks attracts high-net-worth visitors from Paraguay, Brazil, and Argentina.
Favorable Economic Environment to Operate Your Business
Launching a tourism company in Paraguay is supported by an attractive tax framework. The “Triple 10” system applies a 10% Value Added Tax (VAT), 10% Corporate Income Tax (IRE), and 10% Personal Income Tax (IRP).
This system is complemented by unrestricted capital repatriation and low operating expenses. Lower labor costs further help maximize net profit margins for commercial projects.
Structure Your Tourism Venture with Living in Paraguay
Capitalizing on Paraguay’s tourism potential requires proper legal and tax planning. Establishing corporations or acquiring real estate assets demands guidance from experienced professionals.
The firm Living in Paraguay supports you through every stage of your investment journey. Our team is led by Attorney Andrea Bernasconi, a industry expert with over 30 years of experience guiding international investors.
We assist you with all necessary steps:
- Obtaining legal residency and Paraguayan ID cards.
- Setting up commercial corporations and investment vehicles.
- Comprehensive legal advisory for land and property acquisitions.
- Opening corporate and personal bank accounts.
- International tax planning to optimize yields legally.
Are you ready to lead the Paraguayan tourism market before it becomes a mass destination? Contact the expert team at Living in Paraguay today to schedule your strategy session.
