Esteli
Cigar capital where Cuban expertise meets volcanic soil to produce world-class tobacco, with factory tours attracting aficionado tourism.
Esteli is Nicaragua's tobacco capital—the northern highland city where Cuban expatriates established cigar production after Castro's revolution, creating an industry that now produces some of the world's finest handrolled cigars. The combination of volcanic soil, highland climate, and Cuban expertise generated comparative advantage that cheaper production elsewhere cannot replicate.
The cigar industry provides unusual manufacturing employment in a country dominated by agriculture. Rolling cigars requires skilled hand labor that cannot be mechanized, creating artisanal jobs in factories that export premium products to global markets. Drew Estate, My Father Cigars, and other producers maintain operations that employ thousands while attracting cigar aficionados who tour factories the way wine enthusiasts tour vineyards.
Esteli's revolutionary history parallels Leon's—the city fiercely resisted Somoza and embraced Sandinista governance. Murals celebrating the revolution decorate walls, maintaining visual connection to the struggle that defined the late 1970s. This political heritage combines with tobacco tourism to create visitor appeal distinct from colonial Granada or coffee-focused Matagalpa.
By 2026, expect cigar tourism to continue attracting aficionados, tobacco production to maintain employment levels despite global smoking decline trends, and Esteli's combined revolutionary and artisanal identity to distinguish it from other Nicaraguan destinations.