Nevertheless, there are at least two good reasons to get to know this country: the old capital of Antigua and Lake Atitlán.

Part of Guatemala’s problem is overcoming the dark reputation it earned during the 36-year civil war that saw thousands of violent deaths each year. The civil war has been over for nearly 10 years, but the violence has been slow to subside. In fact, the national police acknowledge that 5,330 people were victims of violent crime last year—the biggest number since the end of the civil war. So far this year, the rate doesn’t seem to be declining.

Many of the victims have been members of gangs, known as maras, killed by vigilante groups.

“I’ve lived here nine-and-a-half years, and I haven’t been robbed,” Bill Shetz told me. Bill is one of the best-known expats in the city of Antigua, where he’s commander of the American Legion’s Post No. 2. “Antigua has a lower crime rate than many places in the U.S.,” he said, pointing out that he’s a native of Philadelphia.

Bill came to Guatemala just as the civil war was ending. “Since then, it’s become much safer,” he says. “One reason for that is people in Guatemala are more used to tourists. And since the peace accord in 1996, the government has upgraded the police department and now requires more training than it once did.”

Time travel
Antigua is my favorite city in Guatemala, possibly because it reminds me of Mérida, Mexico. But, Antigua Guatemala, as it’s formally known, is nearly 5,000 feet high, making it cooler than Mérida (winter temperatures often dip into the 40s). 

Three years later, the government ordered Antigueños to abandon their city, but not everyone obeyed. Today, Antigua has about 32,000 residents—half the population of 1773.

Now, almost a decade after the end of the civil war, American and European tourists are starting to return. Palaces, monasteries, convents, and churches remind visitors of its past, and elegant restaurants, art galleries, and theaters give Antigua a new cosmopolitan air that’s rarely found in a city this small.

Bill Shetz laughs when he thinks about the local American Legion’s ironic choice of a venue for many of its meetings—a German restaurant, the Jardín Bavaria. It’s a moderately-priced establishment that’s become popular among expats. “By the way,” he says, “in Guatemala, never assume that high prices mean better food.”

Though prices in Antigua and elsewhere in the country are slowly rising, almost everything is a bargain by U.S. standards. At the popular restaurant La Fonda de la Calle Real, a main course of Guatemalan-style bell pepper stuffed with spiced meat costs $5.90.

Menu prices seem to change quickly, but $5 to $8 is average for a main course at most moderate to upscale restaurants in Antigua and other popular destinations. Gallo, Guatemala’s national beer, sells for about $2.35 a bottle.

Rising prices are due in part to the increase in tourist numbers and the overall decline of the dollar over the last few years. Today the dollar buys about 7.63 quetzals, compared with nearly 8 quetzals three years ago. 

What cost to live here?
Houses in Antigua start at about $200,000 for a two- or three-bedroom residence in a fashionable area, but prices drop dramatically on the outskirts of town. Small upscale apartments rent for about $400 a month, and many hotels rent suites by the week or month, starting at about the same amount.

How much does it cost for an expat to live in Antigua? According to Bill, the average is about $1,500 a month, but some do well on much less. In Guatemala City, the cost of living is generally lower, but the crime rate is higher and the city of about 2 million lacks the sophistication of Antigua.

An exception to the rule is the small towns around Lake Atitlán, a two-and-a-half-hour drive from Antigua. Like the old capital, these villages have attracted expats for many years. Living here is more expensive and, unlike Antigua, parts of the Atitlán area were severely damaged by Hurricane Stan late last year.

Off the record, American officials say they hope the goodwill initiative will help persuade the new Guatemalan president, Oscar Berger, to take more visible action against crime—not just violence, but also drug smuggling. 

New Age Atitlán
Crime isn’t a problem in Atitlán. Americans and Europeans continue to vacation here and buy homes. “It’s a beautiful part of the country, and the people have a welcoming nature,” Steve Hendrix told me. Steve is a reporter for the Washington Post who recently bought a villa on the lake for himself, his wife, and their three young children. “Aldous Huxley said that Atitlán was the most beautiful lake in the world. Well, frankly, I think that Huxley understated it,” says Steve.

What impressed Steve, Huxley, and countless others is the glistening, tranquil lake surrounded by green hillsides and framed by majestic volcanoes. The freshwater lake is about 5,100 feet above sea level. Geologists say it’s the result of a huge volcanic explosion about 85,000 years ago.

For a place that seems so remote, Atitlán is easy to reach from Antigua or Guatemala City. Some people drive, and that’s usually safe as long as you don’t have a flashy car or travel at night when highway bandits still occasionally strike. That’s a good rule throughout the country, and because road safety often changes, it’s wise to ask locals about potential problems on any intercity roads you plan to travel on. 

In the dozen villages around the lake, Mayan is still the prevailing language, though many locals now speak some English and Spanish. You can hike from one village to another, but no highway connects them. To travel from one side of the lake to the other, residents depend on ferries, which are cheap and frequent.

Hundreds of American hippies descended on the lake in the 1970s, and today some of those who remained are entrepreneurs who run hotels and restaurants. It’s not surprising, therefore, that New Age establishments have also have sprung up, like the vegetarian restaurants and massage parlors in the town of San Marcos on the northwest side of the lake. All of which inspired some Guatemalans—or possibly a cynical American—to dub the lake “Gringocastenango.”

But that doesn’t mean expats are unwelcome–far from it. For the most part they’ve built elegant lakeside residences that have not spoiled the charm or beauty of Atitlán.

Last year, Steve bought his villa, which is situated on the north shore near the village of Jaibalito and not far from Santa Cruz. The villa is essentially three connected structures with four bedrooms.

The Hendrixes aren’t year-round residents, and like many other expats they rent out their home in Atitlán for the majority of the year. In that way, it generates income and helps defray the cost of upkeep and travel to and from Maryland, their permanent home. Steve’s house can sleep up to 13 people and rents for $800 to $1,000 a week. The rainy season in this part of Guatemala is from May to October, but even during this time there’s some sunshine nearly every day.

Meeting the Mayas
Mayas have a reputation as honest, hardworking people, and that makes it easy for residents around Atitlán to find someone to care for their houses while they’re away. That’s particularly important since a high percentage of the residents spend only part of the year at the lake. But while they’re at Atitlán, there’s plenty to do besides socializing with other residents or shopping at the open-air markets. Many expats enjoy hiking from village to village around the lake or reaching them by boat, affording the opportunity to meet local Mayas. 

Lake Atitlán is safe for swimming and boating, and you can rent kayaks, available in several lakeside villages, for $4 to $6 an hour.

Most visitors and residents of Atitlán particularly enjoy Panajachel—home of the 400-acre Atitlán Nature Reserve, where you can see rare plants and animals. These include monkeys and Guatemala’s exotic national bird, the quetzal. The Atitlán Butterfly Sanctuary is also at Panajachel, and here visitors can see some three dozen species of colorful butterflies. Special exhibits let children trace the butterfly’s life cycle. Steve and his family often take a short boat ride to some of the many restaurants around the lake. His favorites are Posada in Santiago, a small inn with excellent food; Casa del Mundo, which can be reached only by boat near Jaibalito; and Deli at Panajachel. 

Lakeside living
Despite the exotic beauty of Atitlán, real estate prices are low. A two-bedroom, two-bath house near Panajachel recently sold for $75,000, and a five-room villa a little farther from the lake in Panajachel was advertised at $40,000. Lakefront properties are understandably more expensive. The asking price for a lakefront house on 3.45 acres near Cerro De Oro is $238,000.

The south side of the lake, especially the region between San Antonio Atitlán and San Lucas Toliman, was hard hit by Hurricane Stan. Many houses simply collapsed when they were hit by the high winds, and others are still in need of repair. The situation has led some homebuyers to assume the area is ripe for bargain-hunting. Nothing could be further from the truth, says Roland Erhard of Atitlán Dreams, a major real estate company in the area. According to Erhard, buyers might pick up damaged property at a low price, but repairs could push the ultimate cost higher than what they might pay for undamaged property.

For Guatemalans, Stan was only the latest catastrophe to cause homelessness and poverty. So how do expats feel about living luxuriously in the midst of rampant poverty? Though they don’t say much about it, many residents around Lake Atitlán, including the Hendrixes, are active in organizations dedicated to relieving poverty in Guatemala.

Steve also believes that the presence of expats has a positive effect on the economy. “Sure, it’s potentially off-putting to spend your time in a nice place in a poor country. But I find that our being there is ultimately a benefit to the country and increasingly important.”