Due to Costa Rica's estimated average hotel occupancy rate of 52% by 2020, well below the 95% recorded at the end of 2019, businessmen in the sector expect that in this context of crisis there will be no peak seasons next year.
The tourism sector is one of the hardest hit by the economic crisis generated by the outbreak of covid-19, because mobility restrictions, the closure of air terminals and the fear of tourists to be infected, have influenced the drastic fall in tourism activity.
Because the Costa Rican Assembly is discussing a bill that seeks to give municipalities the power to declare a dry law in their jurisdiction due to a national emergency, hotels, restaurants and tourist establishments are asking to be exempted from the rule.
The Legislative Plenary approved in first debate the file 21,281 Law to restrict the commercialization of drinks with alcohol content in sports activities and shows, this after the initiative had to be taken back to first debate to amend some details that the deputies considered necessary, informed the Assembly on July 16.
Attracting executives, pensioners and people willing to work remotely from Costa Rica, who extend their stay in the country for long periods, are some of the business opportunities that businessmen have detected in the current commercial scenario.
Although the sector is practically in the zero season, since the outbreak of covid-19 Costa Rica closed the borders to tourism, and during April and May there were practically no visitors to the country, the businessmen are beginning to prepare themselves to face the new commercial reality that arose from this abrupt change in the ways that people relate to each other on a global level.
As a result of the covid19 outbreak, Costa Rica closed its borders to tourism and during April and May practically no visitors entered the country, a situation that will persist in the coming months due to the slow reactivation of the sector.
In order to mitigate the advance of the virus, by means of a government decree the authorities ordered that as of March 18 only Costa Ricans and residents could enter the country.
Because of the restriction measures decreed in the country due to the covid-19 outbreak, between March and April of this year the average hotel rate for two people decreased from $160 to $120.
According to the "Monetary Policy Report" prepared by the Central Bank of Costa Rica (BCCR), in the face of the health crisis, hotel occupancy in the country has plummeted in the first four months of the year, from 90% in January to 15% in April.
New health and hygiene protocols in the establishments and the commitment to attract national tourists in an environment where short trips will be preferred, are some of the trends predicted in the new "normality" that will come after the quarantine period.
Given the quarantines decreed by most governments worldwide, it is anticipated that the habits of tourists will change dramatically in the short and medium term, as the crisis of covid-19 will leave consequences among consumers.
Hoteliers believe that the government's recommendation to return the full amount to guests who had rooms reserved, who for the moment will not be able to enjoy the service because of the health crisis, is unworkable.
A report by the Ministry of Economy, Industry and Commerce (MEIC) details that consumers have the right to a refund or rescheduling without penalty, as opposed to cancellation of reservations at the national or international level.
In the context of a considerable fall in foreign investment in the sector in Costa Rica, the situation could be further complicated by the elimination of tax incentives that tax reform is bringing along.
Figures from the Central Bank of Costa Rica (BCCR) detail that after reporting $443 million in foreign direct investment in tourism in 2017, this figure decreased dramatically last year, registering only $23 million.
After nine days of strikes by public officials in Costa Rica, tour operators, hotels and restaurants in different parts of the country are reporting that reservations are being cancelled and sales are plummeting.
The strike being promoted by the country's public unions started on Monday, September 6, and has already caused millions of dollars worth of losses due to multiple road blocks and acts of sabotage in the fuel distribution chain, among other coercive measures.
The hoteliers union of Costa Rica reported that the occupancy level in the mid-year holidays of 2018 is 65%, 3% less than the average figure reported in the same period in 2017.
According to a survey carried out on June 29 by the Costa Rican Chamber of Hotels (CCH), in which 80 accommodation centers were consulted, between the mid-year vacations of 2017 and this year, the average occupancy rate fell from 68% to 65%.
Hotel entrepreneurs in Costa Rica attribute the decline in occupancy rates to a lesser flow of US tourists visiting the country, which in the first half fell by 2%.
According to the results of an occupancy survey carried out by the Costa Rican Chamber of Hotels among its affiliates, hotel occupancy fell by 5% in June compared to the same month in 2016, and projections for the coming months are not very flattering.
In Costa Rica a hotel entrepreneur is confronting the Solis government, after it warned that companies carrying out commercial promotions in alliance with Uber will be penalized.
EDITORIAL
Can it be that businesspeople in Costa Rica nowhave to consult the government to validate their marketing plans and strategies for their products and services?
In Costa Rica, the hotel union includes 32 registered establishments considered luxury hotels, offering accommodation options with prices ranging from $160 to $30 thousand per night.
The wide diversity of tourists that the country receives explains the existence of a wide range of hotels, according to representatives from the Costa Rican Chamber of Hotels (CCH).The hotel supply caters for both tourists looking to stay in one star hotels, to other more demanding customers, seeking higher-level alternatives.
A bill being prepared by the hotel union would force platforms such as Airbnb to pay 13% sales tax and an additional 5% for national parks.
The bill is being drafted by the National Chamber of Tourism, which intends to submit it to the Legislative Assembly.If passed, this law would take effect for all platforms used for renting accommodation for tourism purposes, such as Airbnb, Homeaway and others.
In Costa Rica the total amount of accommodation available for rent through the web platform Airbnb is now equivalent to 18% of the hotels in the country.
The figure has been confirmed by the union of hoteliers, who say there is now a total of 11,000 homes offering accommodation for tourism through Airbnb.On top of this data there are also residences rented to tourists through other platforms such as Homeaway or VRBO.