Adapting spaces in the restaurant area, selling themselves to tourists as a clean and safe establishment, are some of the strategies that hotel sector businessmen plan to apply in order to adjust to the new commercial reality resulting from the health emergency.
The spread of covid-19 has forced health authorities to restrict the mobility of people and to close several establishments, with hotels being one of the most affected.
The US budget accommodation group G6 Hospitality has announced that within five years it will build ten hotels in Belize, Costa Rica and Panama.
From a statement issued by G6 Hospitality:
DALLAS, Jan. 23, 2017 /PRNewswire/ -- G6 Hospitality, known for its iconic economy lodging brands, Motel 6 and Studio 6 in the U.S. and Canada, today announced that it is extending its footprint to Central America.
Although since 2011 the construction of hotels has shown a downward trend, 23 new projects requested a declaration of interest in order to start operations in the country.
Figures from the Construction Chamber show that between 2011 and 2013 the total square meters approved for construction of new hotels dropped from 140,670 m² to 51,975 m². However, it seems that the sector us beginning to recover, as there are 23 projects that were declared of interest by the Costa Rican Tourism Institute (ICT) that are under construction or have received approval to start work.
Small hotels can not compete with the low prices used by big international chains in the sector to attract customers.
Entrepreneurs in the tourism sector in destinations in Manuel Antonio, Quepos and Aguirre are demanding urgent action by the government to halt what they call unfair competition, which coupled with the low influx of tourists in the area and the absence of a strategy for tourist attraction, is leading small hotel companies to bankruptcy.
60% of hotels operating in the country have less than 30 rooms, in a market with oversupply in certain areas and a demand that is not growing.
Of the 2,515 hotels reported by the Costa Rican Tourism Institute, more than half are small establishments and family-run structures, while the others corresponds to large chain hotels, with a greater number of rooms.
The average occupancy rate in 2013 in the country's hotels was less than 50%, the lowest in the last five years.
Figures from the Costa Rican Tourism Institute indicate that the average occupancy rate during 2013 was 48.7%, the lowest since 2009, when the international crisis started, resulting in a significant reduction in the flow of foreign tourists coming to the country.
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.
At least 10% of small B & B type hotels in Costa Rica are no longer active.
It has been estimated that in San Jose alone 10 hotels have closed their doors, however, it is not known how many of these types of establishments are operating in the country. "The information comes from knowledge held by private sector authorities, including the National Network of Small Hotels of Costa Rica (Renaph) and the Costa Rican Chamber of Hotels (CCH), through which it can be inferred that they have been affected by the economic situation," reported Elfinancierocr.com.
A smart combination of marketing, promotional packages, agreements with wholesalers, and good service has allowed some hotels to “be doing well.”
Generally, it is hotels with less than 40 rooms, which don’t depend on large flows of tourists, that are less seriously affected by the crisis in regards to securing a good clientele with occupancy levels above 80%.