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.
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.
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.
Hoteliers believe that the government's recommendation to return the full amount to guests who had rooms reserved, who for the moment will not be able to enjoy the service because of the health crisis, is unworkable.
A report by the Ministry of Economy, Industry and Commerce (MEIC) details that consumers have the right to a refund or rescheduling without penalty, as opposed to cancellation of reservations at the national or international level.
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%.
Hotel entrepreneurs in Costa Rica attribute the decline in occupancy rates to a lesser flow of US tourists visiting the country, which in the first half fell by 2%.
According to the results of an occupancy survey carried out by the Costa Rican Chamber of Hotels among its affiliates, hotel occupancy fell by 5% in June compared to the same month in 2016, and projections for the coming months are not very flattering.
In Costa Rica, the hotel union includes 32 registered establishments considered luxury hotels, offering accommodation options with prices ranging from $160 to $30 thousand per night.
The wide diversity of tourists that the country receives explains the existence of a wide range of hotels, according to representatives from the Costa Rican Chamber of Hotels (CCH).The hotel supply caters for both tourists looking to stay in one star hotels, to other more demanding customers, seeking higher-level alternatives.
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.
The current occupancy rate of 57% can be explained by the increased supply of rooms and the relative decline of San Jose as a business destination.
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.
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.
An oversupply of rooms, the competition of "vacation rentals", Liberia airport, and the lack of an international convention center, are factors affecting the profitability of hotels in the capital.
Elfinancierocr.com reports that "The average rate for a standard double room in the small three star hotel in the capital, Rincon de San Jose, dropped from $52.5 in 2011 to $49 in 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."