In Costa Rica a hotel entrepreneur is confronting the Solis government, after it warned that companies carrying out commercial promotions in alliance with Uber will be penalized.
EDITORIAL
Can it be that businesspeople in Costa Rica nowhave to consult the government to validate their marketing plans and strategies for their products and services?
In Costa Rica the total amount of accommodation available for rent through the web platform Airbnb is now equivalent to 18% of the hotels in the country.
The figure has been confirmed by the union of hoteliers, who say there is now a total of 11,000 homes offering accommodation for tourism through Airbnb.On top of this data there are also residences rented to tourists through other platforms such as Homeaway or VRBO.
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.
At the end of 2014 363 companies were registered as being dedicated to providing pest control services, targetting mainly the industrial, food and hotel sectors.
According to the General Directorate of Taxation cited by Elfinancierocr.com, "...
The limited political strength of the current Minister of the department is preventing industry demands from being addressed and priority given to the sector in the government's strategy.
Representatives from the tourism industry argue that they have been given a back seat because they are not given the necessary priority in government policies. The sector is also complaining about lack of investment in tourism infrastructure, excessive paperwork and permits and the enforcement of laws discouraging economic activity in the sector.
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.
Businessmen are complaining that investments in international promotion amount to less than a third of what Panama spends, resulting in the country losing competitiveness as a destination in the region.
The 2015 budget for investment in official tourism promotion is $18 million, which industry representatives say is not enough if you expect tourism flows to keep up a good pace.
Businessmen in Costa Rica are opposing a bill that aims to reduce the amount of money assigned to the Costa Rican Tourism Institute, claiming that it will affect international marketing of the country.
At the moment total proceeds from the $15 fee charged for each air plane ticket purchased abroad is assigned to the Costa Rican Tourism Institute (ICT), but with the bill proposed by the government these resources would be reduced to half and the remaining amount would go to the National System of Conservation Areas (SINAC).
Macro figures for tourism in Costa Rica have already exceed those of the years before the global crisis of 2009, but the results obtained by operators are low.
During 2012, tourists who came to Costa Rica spent $2.425 billion, 34% more than in 2009, but the increase in income has not generated higher profits for the tourism sector.
Renting hotels and low interest loans to businessman with financial problems, have joined other traditional forms of money laundering.
The latest news from the U.S. State Department on the subject, shows that profits from trafficking in cocaine and other drugs, internet gambling, financial fraud, human trafficking, corruption and smuggling, are the sources of the assets that are "cleaned" 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.
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."
The Chamber of Costa Rican Hotels disagrees with the Chamber of Tourism in the perception of the profitability of the industry, and has suggested their separation.
A survey last month by the National Chamber of Tourism (CANATUR) on the perception of the sector’s profitability, employment and demand for tourism services, showed a picture of optimism that surprised operators and industry observers, as complaints from Costa Rican tourism businesses have been constant since the crisis of 2008-2009.
The Hotel Ramada Herradura has been awarded a five-year management concession for the municipal beach resort in Puntarenas, Costa Rica.
The award process will become official once it has been published in the Gazette. The Mayor of Puntarenas expects that the company will assume management later this year.
Representatives from the government have submitted a proposal to promote improved profitability for the sector.
In order to promote the idea the National Hospitality Congress will be held on 4 and 5 August.
Among the topics to be discussed are, labor flexibility, excessive paperwork for new tourism projects, tips and infrastructure problems.
Gustavo Araya, a member of the board of the Costa Rican Chamber of Hotels (CCH) commented on the extensive paperwork saying, "... this is what affects us most because an investor currently has to go through 1950 steps in 51 public institutions.
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