Costa Rica: More Tourists But Less Profit

Macro figures for tourism in Costa Rica have already exceed those of the years before the global crisis of 2009, but the results obtained by operators are low.

Wednesday, April 10, 2013

During 2012, tourists who came to Costa Rica spent $2.425 billion, 34% more than in 2009, but the increase in income has not generated higher profits for the tourism sector.

For example, Miguel Zamora, owner of Hotel Cerro Chato Eco Lodge, in La Fortuna, San Carlos, said that although most tourists now come with increased spending power there are factors preventing the situation from making a profit for them.

One such is that there are lots of hotels and visitors are distributed among more places. Moreover, Zamora receives revenue in dollars, his price are stable but he has to pay his expenses in colones where "everything goes up", electricity, water, etc..

"Other indicators show an encouraging outlook in terms of international passenger arrivals, which increased by 7% last year, and foreign direct investment in this sector, which increased in 2012 by 24%," noted an article in Nacion.com.

"The results reflect the good market position and the effectiveness of the marketing strategies made by the country, both in terms of advocacy from the field of public administration, and marketing by the private sector to sustain this competitive advantage" , said Tourism Minister, Allan Flores.

Meanwhile, Gustavo Araya, vice president of the Chamber of Hotels, said that Costa Rica's good name globally, as a tourist destination, has worked to raise the number of tourists, however, he added that today that good reputation could start to drop off if outstanding issues such as the country's infrastructure in airports, roads and convention centers are not resolved

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The Chamber of Costa Rican Hotels disagrees with the Chamber of Tourism in the perception of the profitability of the industry, and has suggested their separation.

A survey last month by the National Chamber of Tourism (CANATUR) on the perception of the sector’s profitability, employment and demand for tourism services, showed a picture of optimism that surprised operators and industry observers, as complaints from Costa Rican tourism businesses have been constant since the crisis of 2008-2009.

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