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Tourism in Paraguay

Paraguay has been politically and geographically isolated for many years, but now it is finally opening up to the rest of the world, both politically and economically, and the country’s tourism sector is growing accordingly. Infrastructure remains relatively underdeveloped compared to other more popular destinations on the continent, but patient and adventurous travellers are invariably rewarded for their curiosity.

While tourism is not one of the things that typically springs to mind when Paraguay is mentioned, traveling through this landlocked nation is always an emotional affair. There’s a saying in Paraguay about visitors: “[they] always cry twice – once when they arrive, and once when they leave”.

The country is often overlooked by tourists coming to South America, in favour of its more famous neighbours like Brazil and Argentina. But as we will see in this article, Paraguay’s relative obscurity only makes its beautiful and beguiling scenery and off-beat tourist attractions all the more memorable.

Tourism in figures

Thirty years ago, tourism revenues in Paraguay totalled 162.00 million USD, equivalent to about 15.68 million tourists and 1.8% of the country’s GDP. Since then, the country’s tourism takings have declined substantially, with sales in 2019 totalling 409 million USD, just 1.1% of GDP. And the following year, the COVID-19 pandemic torpedoed tourism revenues in Paraguay by 75% – a scenario which played out in a similar guise all over the world.

Paraguay recorded a total of one million tourists in 2020, making it the 94th most-visited country in the world in absolute terms and generating 104.00 million USD, or 0.27% of GDP. Since Paraguay is a relatively small country, it is perhaps more revealing to analyse the country’s tourism figures in relation to its overall population: approximately 0.15 tourists per resident, making Paraguay the 103rd-ranked country in the world by this metric and the fifth most successful tourist destination in South America, contributing approximately 1% of the continent’s total international tourism receipts.

The lay of the land

Of course, these figures don’t tell the whole story, and are set to be turned on their head once more as COVID restrictions are relaxed and the country opens up to international visitors more than ever before. For the adventurous traveller who isn’t afraid to stray off the beaten path, the country boasts a fascinating mix of colonial-style cities, natural wonders, indigenous culture and a warm, welcoming population.

Most visitors will begin their journey to Paraguay in its capital of Asuncion, where most international road and air routes are concentrated. But the country’s real personality and beauty is revealed outside the city. To the east lie sweeping savannahs and forests, sporadically punctuated by colonial towns whose appearance has hardly changed since the early 20th century.

The southeast corner of the country is characterised by yerba maté plantations, while the relatively unexplored northern region is replete with marshes and dense rainforests, home to all sorts of species of flora and fauna. And to the west lies the wild Chaco region, home to the majority of the country’s many indigenous peoples.

The tourist experience

One thing you’ll notice straight away is that you’re in a clear minority: very few foreigners live in or pass through Paraguay compared to other South American countries, so you’ll need some basic Spanish at least to make your way. Having said that, the locals tend to be very welcoming towards outsiders, and outside of certain areas of Asuncion – which is as statistically unsafe as any other major city – there are very few reasons to feel uncomfortable or unwelcome.

Similarly, you shouldn’t travel to Paraguay expecting major, “Instagrammable” sights – which may explain why tourists are so few and far between here. But as we will see, the country does offer a wide range of enriching experiences which are potentially even more interesting, depending on your outlook.

As for accommodation, backpackers should be aware that Paraguay has very few hostels, but hotels come in a variety of price ranges in most major cities, and advance booking is not usually required outside of Asuncion. In the countryside, options are more limited but are rarely fully-booked, so you should always be able to find a decent place to stay as you travel through the country, with the locals’ help.

Outside of major cities, where taxis and moto-taxis are readily available for a reasonable price, the best way to get around is by using the country’s extensive bus system. Again, this is designed for residents rather than tourists, so be sure to ask lots of questions to make sure you are heading in the right direction. Don’t expect luxury and you should have no problem getting from A to B.

Where to visit and what to do in Paraguay

Travelers to Paraguay will inevitably pass through one or more major cities on their journey, so while they are not necessarily the most exciting places which the country has to offer, it is worth examining some of them in closer detail:

  • Asuncion: the country’s capital has a population of around two million people and is the largest city in the country, sprawling over 45 square miles. The central part of the city has a grid layout, and the most interesting sights can be seen along the city’s waterfront. The city is one of the region’s more endearing capitals, with tree-lined boulevards connecting piazzas with their neoclassical façades.
  • Ciudad del Este: The second biggest city in Paraguay can be entered via the border with Brazil and Argentina near Iguazu Falls, and has a totally different energy from Asuncion. It’s well-known for its cheap shopping, which makes it a popular and somewhat chaotic destination for neighbouring Brazilians and Argentinians, as well as visiting tourists.
  • Encarnacion: This diminutive city is close to a number of interesting sites, and serves as a base for exploring the southeast of the country. It has some nice restaurants and hotels in its own right too.
  • Concepcion: Located on the banks of the Paraguay River in the north of the country, this city is a good jumping off point for exploring the more remote parts of the country, and has a bustling market scene which provides some insight into the country’s rural cultures. Youc an travel there by bus or by boat from Asuncion.

If you’re thinking of spending more time getting to know the country, you can also head to the forests near Villarica to participate in ongoing conservation work, and take the opportunity to explore the region for yourself. Ecotourism is on the rise in Paraguay, and a number of farms, zoos and nature reserves offer accommodation and tours to interested parties. Finally, make sure to take a trip to the Itaipu Dam near Ciudad del Este, named one of the seven Engineering Wonders of the World and – until recently – the largest hydroelectric dam in the world, which generates most of the country’s electricity.

If you’re looking for an alternative to the typical South American tourist trail, while still ensuring a warm welcome, comfort and security, then the lesser-traveled nation of Paraguay could be the tourist destination for you. The country’s lack of iconic landmarks is more than made up for by its fascinating culture, a laid-back attitude and a wide range of remarkable experiences which the locals take pride in – and rightfully so.