In order to stimulate the return of airlines to the country and reactivate tourism, the government eliminated from the price of jet fuel, the subsidy that financed the cost of LP gas, bunker, asphalt and asphalt emulsion.
In this context of health and economic crisis resulting from the outbreak of covid-19, the Alarado administration, signed Executive Decree No. 42352-MINAE which establishes a reduction in the sale price of jet fuel (aircraft fuel) paid by airlines, reported the Costa Rican Tourism Institute.
Refinancing the debts of tourism companies, reviewing the exchange rate policy so that the country is not a very expensive destination and recovering the category of aviation security are some of the actions that the government should focus on to prevent the bankruptcy of this sector.
In addition to the millions of investments that have been made in this sector, it is very important for the country because according to official figures for 2019, its contribution to the Gross Domestic Product amounts to about 7%.
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.
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.
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.
The sharp drop expected in the income of the tourism industry in Central America will be partially explained by the decline in hotel activity and tourist marinas.
The "Information System for the Impact Analysis of Covid-19 on Business", developed by the Trade Intelligence Unit of CentralAmericaData, measures the impact that the crisis will have on companies according to their sector or economic activity, considering various scenarios for the coming months.
Companies that owe taxes to the Costa Rica Tourism Institute will be granted a moratorium during April, May, June and July.
Regarding the taxes to which the moratorium will apply, the Costa Rican Tourism Institute (ICT) reported they are 5% for the sale of each air ticket originating in Costa Rica for international travel, in addition to the 5% that applies to the purchase of tickets whose destination is our country. Also included is the $15 fee for the entry of each tourist by air.
One of the most relevant sectors for the Costa Rican economy is declared in "Total Emergency and State of Calamity", as it is the first time in the "zero" season that total income ceases.
The Board of Directors of the Costa Rican Tourism Institute (ICT) stated that all State institutions, Powers of the Republic, Autonomous and Semi-Autonomous Institutions, as well as Municipalities throughout the country, are required to collaborate in the broadest and most expeditious manner within the framework that the serious reality demands, in order to alleviate the situation of the Private Tourism Sector.
Within the framework of the national emergency declared by the government due to the crisis of the covid19, the decision was taken to suspend from March 19 to April 12, 2020, the entry of foreigners to the country.
In the case of flights, a decree instructs that from this Wednesday March 18 from 23:59 until 23:59 Sunday April 12, 2020 only Costa Ricans and residents may enter the country, explains a statement from the Ministry of Health.
Some of the most notable effects caused by the spread of covid-19 is the cancellation of at least 8,000 hotel nights in Costa Rica, and the interruption by Iberia of its flights from Madrid to Guatemala and San Salvador.
Businessmen in the region agree that due to the virus that has been spreading from China, supply chains have been interrupted, which is combined with a drop in the transit of people, causing losses to the tourism sector.
A drop in the flow of tourists to the region, cancellation of reservations and the suspension of flights are part of the expected consequences of the spread of the virus worldwide.
According to the report prepared by the Central Bank of Costa Rica called "Commentary on the national economy for February 2020", derived from the outbreak of pneumonia caused by SARS-CoV-2 virus (coronavirus) is expected to report a negative impact on the influx of tourists to the country.
As of October 27, 2020, Lufthansa will begin operating a third weekly frequency between the German city and the capital of Costa Rica.
Thus, the airline, which currently offers two flights per week on Thursdays and Saturdays, will also fly on Tuesdays round trip between the German destination and San Jose, Costa Rica, reported the Costa Rica Tourism Board (ICT).
Although in 2019 the arrival of tourists to Costa Rica increased 4% compared to 2018, businessmen of the sector continue to face complex procedures to open a new business and the high costs of basic services.
Data from the Directorate General of Immigration and Foreigners, said that between 2018 and 2019 the number of foreign visitors who came to the country grew by 122 thousand, from 3.01 million to 3.14 million tourists.
The rise of the Internet as a means of organizing and booking travel is generating headaches for companies in the sector, which agree that the strategy should be to focus on marketing complete packages in very specific market niches.
The difficult financial situation that the agency Viajes Colon is going through in Costa Rica is just one example of the problems that have affected travel agencies for several years.
The U.S. government decided to raise the security alert level for travel to the Central American country from 1 to 2, arguing that violent crimes are occurring that can affect tourists.
The North American country maintains four categories that classify the degree of danger that tourists face when visiting a destination. In the case of Costa Rica, it went from category 1, which tells travelers to take normal precautions, to category 2, which warns that greater caution should be taken.
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