Tourism and Hotels: Forecasts for 2021

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.

Friday, December 11, 2020

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.

See "Interest in Travel and Tourism: No Clear Direction"

In Costa Rica, whose economy depends largely on tourism, signs of recovery are just emerging. After virtually no visitors in April and May, between October and November there have been increases in the number of U.S. tourists arriving in the country.

In this context, occupation levels are still far from those reported in 2019, and future forecasts are that it will hardly be possible to achieve income to face hotel costs.

Flora Ayub, executive director of the Costa Rican Chamber of Hotels (CCH), told that "... between 2020 and 2021 there will be no high season. It will be a season of only slight recovery so that the companies will eventually reach the balance of their operations, without perceiving profits".

The drop in occupancy levels is combined with a drop in average rates. According to a survey conducted by the CCH in early December, the average rate in 2020 is 34% lower when compared to what was reported in 2019.

According to Ayub, this context has slowed down the re-hiring or hiring of workers, which is still at low levels.

According to research by CentralAmericaData, between July and October 2020 the number of Costa Rican consumers who explored options for renting a vacation property via the Internet increased by 400%.

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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.

Tourism and Business Transformation

April 2020

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.

Hotel Occupancy Rates Dip

July 2018

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%. 

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.