Paraguay Tourism Investment 2026

1.06 million visitors, $724 million in tourism income, and underdeveloped infrastructure - an early-mover opportunity in South America's least-explored destination.

1.06M

International Tourists (2024)

$724M

Tourism Income

76%

Visitors from Argentina

2.7%

Average GDP Growth (10yr)

Quick Answer

Paraguay's tourism sector is underdeveloped relative to its neighbors, creating opportunities for investors. The country received 1.06 million international tourists in 2024 generating $724 million, but hotel capacity is limited and tourism infrastructure is nascent. Key segments include eco-tourism (Chaco, Pantanal), cultural tourism (UNESCO Jesuit ruins), and business tourism (Asunción). Law 60/90 tax breaks apply to hotel and tourism infrastructure projects. The government's Plan Maestro 2019-2026 strategy targets sustainable sector growth.

See Tourism Segments

Market Overview

Paraguay received 1.06 million international tourists in 2024, generating USD 723.8 million in tourism income. The sector contributes approximately 1.5% of GDP but has significant growth potential given the country's natural and cultural assets.

Top source markets:

  • Argentina: 76.3% of visitors - the dominant source by a large margin
  • Brazil: Second largest, driven by proximity and Mercosur travel
  • Bolivia: Cross-border tourism
  • United States: Small but growing adventure and cultural tourism segment
  • Spain: Cultural and historical interest

The heavy concentration in Argentine visitors (76%) creates both a dependency risk and an opportunity to diversify into higher-spending European, North American, and Asian tourist segments.

Tourism Segments

  • Eco-tourism: The Gran Chaco (one of South America's last great wilderness areas), the Pantanal wetlands, and the Atlantic Forest remnants offer wildlife viewing, birdwatching, and adventure tourism. Infrastructure is minimal - which is both the challenge and the appeal for eco-tourists seeking authenticity.
  • Cultural tourism: The Jesuit Reductions of Trinidad and Jesús de Tavarangüe are UNESCO World Heritage Sites. The colonial architecture of Asunción, the craft traditions of Itapúa, and the hybrid Guaraní-Spanish culture provide rich cultural experiences.
  • Business tourism: Asunción's growing role as a regional business hub creates demand for conference facilities, business hotels, and corporate entertainment. The EAS-friendly business environment attracts regional business travelers.
  • Event and festival tourism: Local festivals, sporting events, and cultural celebrations create seasonal tourism spikes that are currently underserved by accommodation and hospitality providers.

Investment Opportunities

  • Boutique hotels: Asunción and tourist regions lack quality mid-range and boutique accommodation. Properties with character and service standards attract both business and leisure travelers at premium rates.
  • Eco-lodges: Low-impact lodges in the Chaco, Pantanal, and forest regions serve the growing eco-tourism market. Construction costs are low, and the authenticity premium is high.
  • Tour operators: Professional tour operators with international marketing capability are scarce. Companies that can package Paraguay experiences for foreign travel agencies have limited competition.
  • Restaurants and entertainment: Asunción's dining and nightlife scene is growing but still limited. Culinary tourism leveraging Paraguayan cuisine (beef, cassava, tereré) is an emerging niche.
  • Adventure tourism infrastructure: River expeditions, hiking, birdwatching, and fishing operations in underdeveloped natural areas.

Law 60/90 applies to tourism investment

Hotel construction, eco-lodge development, and tourism infrastructure projects can qualify for Law 60/90 tax exemptions including customs duties on construction materials and capital goods, incorporation taxes, and dividend taxes for up to 10 years. Apply through MIC with an investment project. See the investment incentives guide for full details.

Practical Considerations

Entity: An EAS is the simplest vehicle - formed online in 72 hours. For hotel projects with multiple investors, an SRL may provide better governance structure.

Food safety: Restaurants and hotels with food service must comply with DINAVISA requirements - health permits, food handling certifications, and periodic inspections.

SENATUR registration: Tourism businesses can register with the Secretaría Nacional de Turismo for inclusion in government promotional programs and tourism directories.

Labour: Tourism is labor-intensive. Hotels and restaurants employing staff must register with IPS (16.5% employer contribution) and comply with minimum wage, working hours, vacation, and aguinaldo requirements. See labour law for employers.

Seasonal patterns: Peak tourism season aligns with regional holiday periods (December-February for Argentine and Brazilian visitors). Business tourism is year-round but peaks during regional trade fairs and conferences.

Tourism Investment FAQ

Common Questions

Yes, particularly for early movers. Paraguay received 1.06 million international tourists in 2024 generating $724 million in income, but the sector is underdeveloped compared to neighbors. Hotel capacity is limited, eco-tourism infrastructure is nascent, and the government is actively seeking investment through the Plan Maestro de Desarrollo Sostenible del Sector Turístico 2019-2026. Law 60/90 tax incentives apply to tourism projects.
Argentina dominates with 76.3% of visitors, followed by Brazil, Bolivia, the United States, and Spain. This concentration creates both a reliance on Argentine tourism and an opportunity to diversify source markets. Business tourism from Mercosur and adventure tourism from Europe and North America are growth segments.
Four segments stand out: eco-tourism (Chaco, Pantanal, Atlantic Forest), cultural tourism (Jesuit ruins UNESCO sites), business tourism (Asunción conferences and events), and event/festival tourism. Paraguay's advantage is authenticity - it offers experiences that are less commercialized than Brazil or Argentina.
Yes. Hotel construction, eco-lodge development, and tourism infrastructure projects can qualify for Law 60/90 tax exemptions including customs duties on construction materials and capital goods, incorporation taxes, and dividend taxes for up to 10 years. Application is through MIC with an investment project and economic impact assessment.
Hotel capacity is limited relative to demand, particularly in the mid-range and boutique segments. Asunción has the most hotel supply but is underserved for international business travelers. Tourist regions like the Jesuit ruins, Chaco, and Ciudad del Este have minimal quality accommodation - creating clear investment opportunities.
The Jesuit Reductions of Trinidad and Jesús de Tavarangüe are UNESCO World Heritage Sites and Paraguay's most significant cultural tourism asset. Located in Itapúa department, they attract cultural and historical tourism but remain under-promoted internationally compared to similar sites in neighboring countries.
Restaurants, hotels with food service, and tour operators providing meals must comply with DINAVISA food safety requirements. This includes health permits, food handling certifications, and periodic inspections. DINAVISA registration is coordinated through SUACE for new businesses.
Form an EAS online via SUACE (72 hours), obtain a RUC from DNIT, register the commercial patent with the municipality, and if serving food, obtain DINAVISA certification. Tourism-specific businesses may also register with SENATUR (Secretaría Nacional de Turismo) for inclusion in promotional programs. If hiring staff, register with IPS.
The Plan Maestro de Desarrollo Sostenible del Sector Turístico 2019-2026 is Paraguay's national tourism strategy. It identifies priority tourism segments, infrastructure needs, and investment opportunities. The plan targets sustainable growth, improved quality standards, and diversification beyond Argentine visitors.
Paraguay offers authenticity and lower costs. Tourist areas are less commercialized, land and labor costs are lower, and the experience is more genuine. The tradeoff is less developed infrastructure and lower international brand recognition. For investors, this means lower barriers to entry and the potential to define market segments rather than compete in saturated markets.

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Sources & References

This guide uses official Paraguay government sources and REDIEX tourism data. Visitor statistics are from SENATUR and may be revised as final reporting periods close.

Last updated: 2026-04-29

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