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Tegucigalpa
San Pedro Sula | Security Briefing | Health and Medical | Transportaion | Communications
Business Services | Technical/Internet | Electrical | Business Culture
Embassies and Consulates | The Businesswoman | Essential Terms | Country Map
San Pedro Sula | Security Briefing | Health and Medical | Transportaion | Communications
Business Services | Technical/Internet | Electrical | Business Culture
Embassies and Consulates | The Businesswoman | Essential Terms | Country Map
Columbus first set foot on the
American mainland in Trujillo in 1502 and named the region
Honduras (meaning great depth) for the deep water off the
coast. The Spaniards soon moved into the cooler highlands and
were constantly battling with native tribes, including Chief
Lemira's army of 30,000, who almost drove the Spanish out of
the region until he was murdered while attending peace talks in
1537.Comayagua was declared the Spanish colonial capital a year later. When gold and silver was discovered around Tegucigalpa in 1570, British and Dutch ships began attacking treasure galleons headed out of Trujillo. Pirates settled the Caribbean coast and looted and burned Trujillo in 1643. The British established a protectorate along the Caribbean coasts, ostensibly to keep the area free of pirates and protect the native Miskito tribes; but British fortunes were made from the mahogany forests of the region. Honduras broke free from Spain in 1821 and first became part of an independent Mexico. The Honduran Republic was established in 1838, and the British relinquished the Caribbean coastal region in 1859.
Honduran history has been dotted with military coups, rebellions, dictatorships, and chess-game politics ever since independence from Spain. U.S. fruit companies essentially took control of the country in the late 1800s, and banana power ruled until the 1960s. Troops from El Salvador invaded in the 1969 "soccer war," which began during a World Cup soccer match between the two countries. With guerrilla warfare surrounding Honduras in the 1980s, this relatively neutral country became a haven for the Nicaraguan Contras. Financing and technical support through the U.S. government almost toppled U.S. president Ronald Reagan.
When Rafael Callejas became president of Honduras in 1990, he refused to continue a treaty with the United States allowing Honduras to be used as a military base, and the Contras left the country. Without U.S. monetary and political support, most of Honduras' international trade shifted to countries in the European Union. Newspaperman and politician Carlos Flores Facusse became president in 1997 and quickly had to cope with the catastrophic destruction to Honduras brought by Hurricane Mitch in 1998. Thousands were killed and many more thousands left homeless when the capital city, Tegucigalpa, was flooded and landslides covered entire towns. The United States became the primary source of economic and logistical aid to the stricken nation. Ricardo (Joest) Maduro came to power in January 2001 with intentions of economic and social reform. However, ongoing problems in the essential agricultural sector preoccupy the government and limit funding for sweeping reforms of any nature.
Handshakes are the common greeting among both men and women; handshakes are gentle --almost limp --and somewhat prolonged, except among Hondurans already involved in and familiar with international business standards. Titles are important, and foreign visitors should call their business counterparts by their title and last name unless requested to do otherwise.
When doing business in Honduras, you will often hear the Spanish phrase si Dios quiere (God willing) when a promise or commitment is made. Because of the difficulties of surviving in such a poor country, most Hondurans are quite fatalistic. They are content with their current place in a business hierarchy because they know they cannot control events. Consequently, they are more likely to keep a low profile in business and avoid "rocking the boat." Opportunities for social mobility are practically nonexistent, and Hondurans make the most they can out of where they are. Do not be surprised if a functionary or official indicates that he will be better be able to assist you if you can help him in some tangible, most often monetary, way.
Hondurans value familial and personal relationships above almost everything else --including business. They think little of stopping to talk with or help a friend on the way to an appointment or meeting. Consequently, Hondurans are often "late" from the business traveler's point of view. The best way to plan for this is to schedule in hora latina (Latin time) yourself. Have only one appointment set up for a morning or afternoon. Show up on time, expect your Honduran counterpart to be late, and accept keeping to your schedule only if si Dios quiere .
It is important to first establish a personal relationship, possibly through several meetings, before a business deal can be concluded. It is important to cultivate relationships with Honduran peers because the quality of these relationships may strongly influence the actual decision maker even when your immediate counterpart is not the one making the decision. Negotiations will most likely take longer than they might in the United States; thus, time should be set aside to accommodate such deliberations.
Appointments are necessary and should be made two weeks in advance. Allow plenty of time in this Latin American country, where time runs slower than it might at home. Punctuality and a hurried manner are not emphasized in this culture, and so, one must come prepared to wait. Bring materials written or translated into Spanish; although many businesspeople and government officials may speak some English, it will nonetheless make a good impression and also assist those who do not have extensive command of the English language, such as engineers and technicians. Be sure to concentrate on socializing and avoid getting straight down to business, as it will emphasize that you also place importance on establishing personal contact, very much valued in Honduras.
The main meal in Honduras is eaten at lunchtime, and so business dinners often feature "light" entr ées. Meals are eaten in a relaxed, informal manner, and Honduran guests may arrive anywhere from 15 minutes to an hour late. Sociable conversation is valued rather than talk about business matters. Hands are kept above the table, and Hondurans eat with the fork in the right hand and the knife in the left.
Fresh bananas, pineapples, citrus fruits, coconuts, mangoes, melons, and avocados are often served sliced and ready to eat. Favorite dishes include tapado (stew made from beef, vegetables, and coconut milk), nacatamales (pork tamales), and mondongo (beef knuckles and tripe). In the Christmas season, torrejas , a French toast-style treat coated with cinnamon and sugar, is popular. Sodas often accompany the meal and coffee follows. If you cannot eat everything, your host may offer to have the leftovers wrapped up to take with you.
North American-style fast foods such as pizza and hamburgers are becoming popular in larger cities, but really fine restaurants are difficult to find since many are semiprivate "clubs" open only to wealthy members and their guests. If you are planning a business dinner, you may need to rely on your host to suggest a location and provide you with a contact name and number in order to make a reservation. Your hotel concierge can also suggest appropriate restaurants. Expect to pay a 10 to 15 percent tip for service.
Government statistics show that one-third of the workforce in Honduras is female and that many women operate businesses, but that doesn't paint a clear picture. Most of the women included in these numbers work in factories in free trade zones producing garments for export. To say these women occupy a secondary status in a male-dominated culture is also misleading. For example, the National Labor Committee discovered that female factory workers in the Choloma region were regularly injected with contraceptives and told they were receiving tetanus shots. In other factories, contraceptive pills were passed out to all women regardless of their medical conditions. Those who refused the shots or pills were suspended without pay.
Foreign businesswomen are expected to be highly professional, appropriate, and not aggressive or confrontational. Making comments or conversations about working conditions for Honduran women is one of the subjects considered "confrontational" by Honduran males. Such assertive behavior often proves counterproductive because it not only brands the female as "aggressive" but also causes men in her group to be considered "weak" or "unmanly." Honduran males react to the so-called "aggressive" female by being more and more polite and courteous in her presence.
Many female business travelers find they can work better with firms owned and managed by women. But don't make the mistake of thinking that the Honduran businesswoman shares your philosophical outlook. Keep reminding yourself that things work out only si Dios quiere .
The best advice is to have a game plan for how to present yourself and your ideas before you arrive in Honduras. Keep your goals clearly in mind and, as trite as it may sound, a smile on your face.
Honduras is a poor country and many of its
citizens wear secondhand clothing imported from wealthier
nations. T-shirts with slogans in English, French, or German
are everywhere, but the person wearing the shirt may not know
what the words say. In contrast, wealthy businesspeople are
very fashion-conscious and wear the latest styles from North
America and Europe. Some businessmen show their national
pride by wearing the Honduran guyabara
(a lightweight,
decorative shirt which hangs to just below the waist) to work
instead of a shirt and tie. In general, a conservative business suit will do well for both men and women. Keep in mind the more humid climate and choose natural fabrics, if possible. Nights can get cool, so bring suitable covering. A collapsible umbrella is also suggested for frequent afternoon showers, especially in the rainy season, mid-May to mid-September.
Politics and Graft
Honduras is one of the most corrupt of all Latin American nations. Transparency International rates Honduras as having a 1.8 Corruption Perceptions Index (CPI), which means that it ranks 94th out of the 99 countries surveyed, about the same level of corruption as Tanzania and Uzbekistan.
The current Honduran government came into power on a platform promising to control government corruption, but as Transparency International notes, that task is not an easy one. As they stated in a recent report:
"Typically, the main activities in need of reform are those that involve discretion, including the issuance of licenses, permits, quantitative import restrictions (quotas), passports, customs and border-crossing documentation, and banking licenses; the implementation of price controls; the blocking of entry to new firms and investors and the provision of monopoly power; the awarding of public procurement contracts; the granting of subsidies, soft credits, tax exemptions, and inflated pensions and the allowing of tax evasion; the imposition of foreign-exchange controls resulting in multiple exchange rates, the over invoicing of imports, and the flight of capital; the allocation of real estate, grain storage facilities, telecommunications, and power infrastructure; the discretionary application of socially desirable regulations such as those that apply to public health and the environment; and the maintenance of obscure or secret budgetary accounts as well as other 'leakages' from the budget to private accounts."
Business Fraud
The potential for a fraudulent business deal is just as high in Tegucigalpa as it is in any large city of the world. This is why businesspeople in Honduras put great importance on cultivating a business relationship on a long-term personal basis. There is, of course, no guarantee that if you know about a person's hobbies, wife, and family, that it will in any way better enable one to determine how truthful a potential business partner may be, or if he is only interested in the "fast buck."
Extraordinary caution should be exercised when purchasing real estate in Honduras. Local law differs significantly from those in the United States and Europe, and even if local attorneys and real estate agents give assurances to the investor, the courts side with the Honduran seller.
Do your homework. Examine everything carefully. Have a representative, agent, or lawyer on-site in Honduras who can assist you with many little problems before they become big ones. To the outside observer, the court process in Honduras is somewhat capricious, and there is often little hope that losses will be recovered.