The increased supply of hotel rooms in the capital is one of the reasons for the low level of occupancy, which as of January stood at 57%. This occurs mainly in hotels that attract business travelers or tourists who spend up to two nights prior to departure.

Ruben Pacheco, chief of the Costa Rican Chamber of Hotels, told Crhoy.com that another factor which is noteworthy is that "the country has become an expensive destination compared to others in the region such as Panama, Mexico, Ecuador and Peru ".

But companies in the industry agree that the increased availability of rooms is the main problem affecting occupancy rates.

The Elfinancierocr.com article reports that "in recent years alone, the greater metropolitan area reported the opening of the following hotels: Studio Hotel, ALoft, Índigo, Holiday Inn, Sheraton, Park Inn, City Express, Hyatt Place, Courtyard Mango Plaza and Wyndham Garden"

This new offering, combined with existing ones, puts pressure on the industry, as acknowledged by Shirley Guzman, head of marketing for the Palma Real Hotel in North Sabana, a business with 65 rooms reporting low average of between 10% and 15% so far this year. "

Source: Crhoy.com

More on this topic

Hotels: Rates in Costa Rica Fall 25%

May 2020

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.

Hotel Supply Exceeds Demand In Costa Rica

February 2013

As new projects are announced, especially in the metropolitan area, the average occupancy rate decreased from 55% in 2011 to 54.1% in 2012.

Crhoy.com reports that "While the Costa Rican Chamber of Hotels (CCH) declares that there is low hotel occupancy, new projects are being drafted, primarily in the Central Valley, even though various sectors assert that demand does not justify the increased supply."

Costa Rica: Hotel Occupancy Does Not Meet Expectations

January 2013

The hotel industry ended the year with an occupancy rate of 65.5% in December, below expectations of 70%.

According to a survey conducted by the Costa Rican Chamber of Hotels, the low occupancy rate was recorded both at the beach hotels as well as mountain resorts.

"As usual, the most sought after hotels are on the beach. Occupation in this sector was 84%, although in 2011 it reached 97%.

Hotel Rate War in Panama?

September 2012

In 2014 the number of hotel rooms in Panama on offer will exceed 17,000, for which an inevitable price war is foreseen.

The other problem revealed to entrepreneurs is the lack of skilled labor to service clients in sophisticated environments where mastering a second languages is essential.