Although it is facing 2015 with optimism, Costa Rica knows that it is facing strong growth in competition from regional neighbors as a tourist destination.
Costa Rica has begun to lose its comparative advantage which it has held for many years over the rest of the region in attracting tourists. The strong competition from destinations such as Nicaragua and Panama is now creating some difficulties for the tourism industry, in whose view the country is not investing enough in promotion compared to its competitors.
In the next National Congress on Tourism a proposal will be made to define a new vision based on real differentiation axles, chains of products, international positioning, environmental excellence, and human talent.
From a statement issued by the National Chamber of Tourism (CANATUR):
In the framework of the XVIII National Congress of Tourism it is expected that CANATUR will formulate a New Vision for Tourism in Costa Rica
The Tourism Regulatory Commission has not managed to meet since the month of May, which creates uncertainty and could lead to negative economic implications for the country.
From a statement from CANATUR and the Costa Rican Chamber of Hotels (CCH):
Chambers in tourism sector demand that the Ministry of Economy convene the Tourism Regulatory Commission
Authorities from Tributación Directa reported that the sales tax on tourist activities will start to be accrued from September 30th.
Despite complaints by tourism entrepreneurs, Carlos Vargas, director of Tributación Directa, confirmed that the tax, which taxes at 13% activities as "... zoos, spa, canopy tours, hiking trails, bird watching activities, and bungee jumps, among other things, "will begin to be accrued on September 30 this year.
After complaints from the sector about the adverse implications of taxing tourism services in protected areas, the government has announced that they proposal will be revised.
In Costa Rica the union is opposed to the decision of the Ministry of Finance to charge 13% VAT on tourism enterprises for the use of protected areas.
From a statement issued by the National Chamber of Tourism:
Wednesday July 23, 2014. Perceiving it as a serious threat to the tourism industry, the National Chamber of Tourism (CANATUR) categorically rejects the decision of the Ministry of Finance to extend the interpretation of Article 1, Section C of the General Sales Act, which taxes, with 13 % Value Added Tax on all State Protected Wild Areas, considering them to be provision of recreation services.
The National Chamber of Tourism has submitted to the Tourism Minister appointed by the President-elect, its proposals to revive the tourism industry.
From a statement issued by the National Chamber of Tourism (CANATUR) :
Tuesday, 06 May 2014. The tourism sector had its first meeting with the new Minister of Tourism, Wilhem Von Braymann and CANATUR presented a series of proposals broken down into six priority themes to revive the Costa Rican tourism industry.
In 2013 the number of building permits requested for hotel establishments across the country dropped by 62% compared to 2012.
The number of square meters authorized in the last 12 months between February 2013 and January 2014 fell to 47,515 m2 compared with the 126,036 m2 in the previous period, according to the Costa Rican Chamber of Construction.
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. "... The situation is even more difficult, as it is estimated that the average occupancy will fall to 35%, and less than 30% in many cases," reported Nacion.com.
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%.
Costa Rican businessmen are concerned about the proliferation of environmental standards that may not be the most urgent and the most suitable for the economy.
Elfinancierocr.com reports that in Costa Rica, "at a rate of four bills per year, since 2006 Parliament has provided 24 new regulations related to environmental issues."
And opinions on whether these standards bring benefits to the country differ depending on the business sector differs consulted: "While the National Chamber of Tourism (Canatur) believe that laws such as the conservation of wildlife will lure more tourists, the National Agriculture and Agribusiness Chamber (CNAA) watches with concern excesses in legislation and regulations that will make life difficult for producers. "
The Government's initiative to build an airport in the south of the country does not have the approval of the tourism industry or environmental groups.
Currently, the Southern Pacific area of Costa Rica is one of the least visited of the country, with between 70,000 and 120,000 tourists a year. Local tour operators are mostly small and take advantage of the area’s natural beauty in order to attract customers.
A declaration of emergency status would have negative impact on the tourism industry due to poor image, the closure of credit lines and brakes being put on investment.
In response to a request by some representatives of the sector to declare a state of emergency, the major players in the industry have disputed the idea.
A press release states:
“The Tourism industry objects to application for declaration of state of emergency
The tourism sector expects the start of high season to represent an increase in hotel occupancy.
According to a survey by the National Chamber of Tourism (CANATUR), an average 74% occupancy rate is projected for the first two weeks of the season, ranging from the 15th to the 30th of December.
The study was conducted to 91 hotels from December 1st through December 6th.
Tourists are renting more and more houses for leisure purposes, competing strongly with the traditional hotel industry.
Vacation rental is defined as the renting of villas, houses, apartments or country estates for a few days or weeks, and is growing fast around the world. Central America is no exception to this phenomenon, which suits especially families or small groups.