Hotel Supply Exceeds Demand In Costa Rica

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

Tuesday, February 19, 2013

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."

Gustavo Araya, vice president of the Costa Rican Chamber of Hotels (CCH), said that the announcement of a new conventions center by the government generated expectations of increased business tourism, but said project is for now far from realization.

Araya remarked that "If the state delays building the convention center for any longer, while investors have made their projections based on increased business tourism caused by this project, should the initiative fail to materialize, the government would be partially responsible for an increase in the number of rooms without there being justified demand ".

Mohamed Avila, Realtor, analyzed that "the large supply is not justified because the capital city has no attractions for tourists, therefore the market is oriented only to the executive level which still represents a small percentage within the type of tourists who come to the country. 'Tourists looking for adventure come for one day and then look for other areas around the country. The demand does not justify the increased supply.''



More on this topic

Hotel Market Statistics in Costa Rica

February 2016

Up to December 2015 2.559 hotels with 47,452 rooms were registered in the country, of which 70% are located in the city and at the beach.

Market figures have not yet reached the levels recorded before the crisis of 2008, when the Costa Rican Chamber of Hotels counted 2,599 hotels in operation, spread across different areas of the country, but are instead concentrated in the large metropolitan area and coastal areas.

Tourist in-flow increases but Hotel Occupancy Falls

July 2014

In Panama the increase in room supply has caused a price war between hotels trying to attract travelers and increase the occupancy rate which on average is not more than 60%.

Hotel occupancy in the country has been declining since 2011, when it stood at 68.6% dropping to 59.3% within the sector this year, according to figures from the Tourism Authority of Panama (ATP).

Bad Season for Hotels in Costa Rica

September 2013

In September and October hoteliers reduce or close their operations due to the low levels of occupancy recorded at this time of year.

Many of these companies send their employees on training courses or terminate their contracts as occupancy levels in these two months are at the lowest of the year.

Panama: Hotel Supply Exceeds Demand

December 2011

More rooms on offer will mean a 50% occupancy rate for hotels in the coming year.

Just this year over 600 rooms have joined the market with the openings of various hotels like the Trump, Victoria and Hilton Doubletree.

Hotel industry projections indicated that in October there would be an increase of 4% as a result of the climate change convention held in the capital city that month, but the occupancy rate reached 62.3% while in same month of 2010 it was 68.4%.

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