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Costa Rica Guide - Costa Rica Real Estate

Costa Rica

Country Reports

March 22, 2003

Capital: San Jose

Population:              3.8 million 
  
Climate:                 Tropical and subtropical, with dry 
                         season (Dec-Apr) and 
                         wet season (May-Nov) 
  
Languages:               Spanish, English, Indian dialects 
  
Total area:              51,100 square kilometres 
  
Ethnic groups:           96% Spanish descent, 2% African descent, 1% 
                         indigenous Indians, 1% Chinese 
  
Religion:                85% Roman Catholic, 14% Protestant 
  
Currency:                Costa Rican colon (CRC) 
  
Total arrivals:          (2001) 1,131,406 
  
Total receipts:          (2001) US$1,277.6 million 
  
GDP:                     US$16.6 billion 
  
Inflation rate:          12.1% 
  
Unemployment rate:       (2000) 5.2% 
  
Airports:                Juan Santamaria international airport, 
                         Liberia airport 
  
Ports and harbours:      Puerto Limon, Puerto Quepos 
  
Exchange rate: CRC 1 =   US$0.0026 as at 20th January 2003 

Introduction

Costa Rica was one of the few destinations that managed to achieve arrivals growth during the traumatic year of 2001, thanks to a strong early showing from the crucial North American market and a rallying performance from its Central American neighbours thereafter. Since then, in 2002, Costa Rica has successfully managed to intercept those cautious South American tourists who are usually bound for the USA. The country's bountiful natural treasures encompass rainforests, coral reefs, volcanoes and national parks, a Caribbean and a Pacific coast, and it is increasingly known as an ecotourism and adventure travel destination, but in recent years pure leisure travel has ceded ground to the business market. The incoming market is also characterised by independent, solo, VFR and repeat-visit travellers and it acts as the country's main source of foreign exchange, producing a positive balance in its travel account. Although promotional investment remains minimal, the government has earmarked tourism as a socio-economic priority and set out to invest in a sustainable tourism product which can recover the confidence of the North American and long-haul European markets which were beginning to show strong growth at the start of the new century.

History

Impressed by the natives adorned in gold, Christopher Colombus dubbed this land the Costa Rica, the 'rich coast', in 1502 and in turn its people later named their currency, the colon, after him. However, early post-Columbian history did not yield the wealth promised by his early optimism: the indigenous people were decimated by Spanish aggression and disease, whilst the colonial gold prospectors themselves were severely disappointed. The introduction of coffee in the early 19th century nurtured the settlements of Heredia, San Jose and Alajuela and eventually led to independence with a coffee grower, Juan Rafael Mora, as president. In 1856 Mora sensationally repelled the might of invading US army adventurer William Walker, a feat celebrated since on April 11th's Juan Santamaria's Day. Afterwards conflict became internalised, taking place between powerful, established coffee growers and those seeking to advance democratic electoral reform. This eventually spilled over into outright civil war in the 1940s, resolved with a new constitution and the abandonment of the armed forces in 1949. In the late 20th century, although battered by hurricanes Cesar and Mitch, Costa Rica achieved a relative political calm, with a drive towards foreign investment and privatisation. Allegations of hidden agendas, political deals and corruption have been widespread, however, and new ruling President Abel Pacheco's Social Christian Unity Party administration will be asked to provide more transparency and accountability.

Data sources

Most of the data in this report are drawn from the Area de Empresas y Servicios Turisticos, of the Costa Rica Tourist Board, or the Instituto Costarricense de Turismo (ICT). The National Chamber of Tourism (CANATUR) provides data on tourist expenditure and market characteristics, based upon annual surveys. The national publication The Tico Times has been monitored and sourced for recent developments in Costa Rica's tourism policy and performance.

Attractions

Costa Rica's natural beauty and biodiversity are its greatest attractions and the possibilities for the traveller are numerous. The country is home to 25 national parks, eight biological reserves, 49 wildlife refuges, 11 forest reserves and 31 protected areas. The Pacific and tropical Caribbean coastlines amount to over 700 miles of surfing, sport fishing and diving opportunities.

Costa Rica's Northern Plains are peppered with volcanoes, the highest of which is the 3,432 metre Irazu, whilst Poas has the widest crater at 1,320 metres and Arenal is the most active.

Santa Jose

The Costa Rican capital is also the cultural centre, being home to the Museo Nacional's display of archaeology, costumes and religious artefacts, the Museo del Oro Precolombino's collection of gold, and the equally extensive Museo de Jade.

Monteverde

Founded as a Quaker settlement in the 1950s, this now acts as a gateway to the Monteverde Reserve, taking in a butterfly farm and serpentarium en route. The reserve itself is most famous for the newly installed 'Sky Walk' that enables visitors to explore the jungle canopy across a series of intersecting suspension bridges and flying foxes.

Pacific coast

The port of Golfito is a major centre for deep-sea fishing and also acts as an entry point to the spectacular beaches of Playa Cativo, Playa Zancudo and Pavones (the latter being especially popular with surfers). Beyond the city of Puntarenas are dozens of isolated islands as well as the package holiday beach resort of Jaco.

Caribbean coast

Parkland and reserves account for over half of the Caribbean coastline and even the city of Puerto Limon has a tropical park populated by flowers and sloths. Parque Nacional Tortuguero is the main breeding ground for the Green Sea Turtle, whilst the nearby national park at Cahuita has a coral reef and rainforest.

Peninsula de Nicoya

This isolated area of the north west Pacific coast boasts spectacular beaches, such as Playa Samara and Playa Montezuma, and numerous turtle-breeding beaches at the Refugio Nacional de Fauna Silvestre Ostional and Parque Nacional Marino las Baulas de Guanacaste. Off the northern coast, the Reserva Biologica, which is part of the Parque Nacional Isla del Coco, is Costa Rica's prime snorkelling and diving site.

National parks

In the north west, at Parque Nacional Volcan Arenal, visitors are able to witness lava flow from the almost perfectly conical and highly active Arenal, whilst on the Peninsula Santa Elena the Parque Nacional Santa Rosa boasts Central America's largest expanse of dry forest and turtle-nesting grounds. Rincon de la Vieja, to the north east of Liberia, offers further volcanic features including hot sulphur springs, mud pools and bathing pools, whilst Parque Nacional Corcovado in the southern Peninsula Osa is an area of lowland rainforest. The most popular areas for bird-watching are Parque Nacional Tapanti, Parque Nacional Palo Verde and Refugio Nacional de Vida Silvestre Carlo Negro, whilst turtle watchers flock to Parque Nacional Toruguero to view nesting sites.

Tourism and the Economy

In Costa Rica tourism is the main source of foreign exchange and employment. According to CANATUR, the industry generates 140,000 jobs, 15% of exports and 72% of foreign reserves. The ICT estimates that tourism has accounted for 44% of all new jobs created in the country during the past decade. In 2001 the 1.1 million arrivals in Costa Rica generated US$1.2 billion in revenue. Tourism has grown to be Costa Rica's top generator of foreign currency, rising by over 85% between 1996 and 2001 to reach US$1,277.6 million.

Costa Rica's travel account achieved an increasingly healthy credit in the late 1990s, reaching US$810 million in 2001. Since 1992, Costa Rican expenditure abroad has grown by 109.1%, but receipts from foreign tourists in the country have risen by 196.3% to US$1,277.6. In the troubled year of 2001, although Costa Rican expenditure declined, incoming receipts managed a healthy growth of 3.9%.

The daily expenditure of visitors to Costa Rica can be quite high, with almost a quarter spending between US$50 and US$85. The majority, almost a third, spend less, somewhere between US$15 and US$50.

Arrivals

The North American market has expanded considerably and a resilient performance in 2001 meant that the arrivals it generated had grown by over 10% since 1999. Meanwhile the number of tourists from neighbouring Central American countries declined heavily in 2000, before rallying in the newly intra-regional climate of 2001 with a growth of almost 12%. The largest gain here in real terms was a 19.9% increase in Nicaraguan arrivals. Arrivals from South America have grown by a massive 41.6% since 1999, most impressively from Colombia which has been targeted by the ICT as a priority market, and a resilient Argentina. The progression in arrivals from Europe was halted by the long-haul crisis in late 2001, but the UK and France continued to grow and close the gap on Spain and Germany.

Tourist arrivals had been expected to increase by 6-8% in 2001, but the final outcome was slightly more modest. In September air arrivals to Costa Rica fell to 20,000, but recovered towards the end of the year and reached 80,000 in December, the highest monthly level since June. As a result, total arrivals grew by 4% over the year as a whole to 1,131,406. The growth that was achieved was due to the heightened intra-regional flows from Central and Latin American countries and a resilient showing from the US market which managed to generate 429,093 arrivals. As travel to the US dried up in the final quarter, Costa Rica prospered, with many high-spending, Latin American Miami-bound tourists opting for destinations closer to home.

2002

In the first quarter of 2002, international arrivals fell by 6% to 14,300 and losses in revenue amounted to US$19 million. However, Costa Rica is managing to intercept tourists who are cautious about travelling to the USA and, according to the ICT, in the first quarter of 2002, some 50,000 South American arrivals represented a growth of 20.5% against 2001.

USA

From Atlanta or Miami it is quicker to fly to San Jose, Costa Rica than San Jose California. In 2001 the ICT's TravelStyles survey, conducted by Menlo Consulting, was mailed to 50,000 US households selected from a pre-qualified pool of respondents and found that over half expressed an interest in visiting Costa Rica. California, Florida, Texas and New York have been identified as the regional markets offering the greatest potential, whilst in socio-economic terms, college graduates (over a third of whom have incomes exceeding US$100,000) account for 67.8% of Costa Rica's best prospects. The survey also showed a high rate of Internet usage with over half of the prospects organising their previous trip online. A similar proportion stated a likelihood to use a travel agent on their next trip, down from 65% in 1999.

Market Characteristics

Costa Rica's status as a pure holiday destination is diminishing fast and since 1997 the leisure market has ceded ground to business travel. In 2000 business generated 21.7% of international arrivals and holiday travel 61.5%. The VFR market is also growing in importance, closing in on the 100,000 arrivals mark, whilst study visits (usually Spanish-language courses) are an important component, accounting for over 40,000 arrivals in 2000.

The high incidence of independent and solo travel is another feature of the Costa Rican incoming market. Almost 40% of arrivals travelled alone in 2000. The growing importance of the VFR and business markets ensures a high proportion of repeat visits.

Seasonality

The dry season running between December and April is the most pleasant climatic period and therefore the most popular and consequently the most expensive time of year. The first three months of the year attract most arrivals from the North American market, but elsewhere the dispersal is more even.

Duration of stay

According to CANATUR, the average international visitor to Costa Rica spends 11.1 nights in the country. In spite of an encroaching business segment, this reasonably long duration of stay says something about the broad palate of attractions and opportunities available to the international visitor. This is borne out the multiple participation of visitors in the activities outlined in Figure 10.

Activities

Costa Rica is beginning to shed its earlier incarnation as being predominantly a sun and sea destination, and participation in this area 2000 was down to 43.4%. The large proportions of people involved in the activities below are testament to the fact that arrivals travel around the country, investigate different aspects and spend time doing so. There have been notable increases in the proportion of visitors who are making business visits and participation in marine activities appears to have diversified.

Independent travel has grown in stature since 1997, when it accounted for little more than a third of trips, and in 2000 its market share is far in excess of two thirds of trips. Standard packages have diminished in popularity, from a market share of over a quarter in 1997 to less than 10% in 2000, whilst group packages have fared the same. Individually tailored specialist packages appear to have acquired a small share of this fragmentation.

Accommodation

Almost 30% of Guatemala's hotel capacity is located in San Jose, but Guanacaste and Limon, with slightly below a quarter of capacity each, are almost equally important. The market is dominated by mid-range, three-star properties which account for over 30% of total capacity, with the four-star segment (23.6%) holding the second-greatest share. Despite the predominance of mid-range establishments, in 2001 it was the higher grade four- and five-star hotels that enjoyed the superior occupancy rates 53.5% and 59.3% respectively. The first three months of the year prove to be the most popular with guests and this period scored the highest occupancy rates across all sectors in 2001.

Figure 14 presents Costa Rica's monthly performance across all hotel sectors in 2001 and 2002. Whilst February and March are confirmed as peak months for occupancy, the recovery post-September 11th in 2002 is yet to materialise, despite a significant drop in average room rate during the early peak season.

According to the National Hotel Chamber, in September 2001 foreign arrivals dropped by 24.7%, but by October this had receded to a loss of 15.2%. Total year-end losses were estimated at US$70.4 million.

Construction and investment

The year 2000 saw a flurry of hotel investment, amounting to some US$173 million. Projects included a US$105 million Four Seasons hotel near Guanacaste, Grupo Real's three-star hotel, Comfort Santa Ana and two Allegro Group establishments.

Transport

Air

Juan Santamaria International Airport, just outside San Jose, is served by 17 international airlines. Costa Rica is connected to the USA by the carriers American, Delta, United, Continental and Grupo Taca Airlines. Sansa is Costa Rica's largest domestic airline, operating daily services from San Jose to 15 internal destinations. Operational since 1980, Sansa's fleet now numbers 43 aircraft. Nature Air is another domestic carrier, serving 16 destinations from San Jose's Paras airport.

In 2001, arrivals by air accounted for almost 72% of the total international visitors, compared with 73.5% in 2000, however, they still managed a 1.4% increase during the troublesome course of the year. Those losses incurred were mostly from the minor regional markets, where road travel is predominant. North America (effectively the USA) sustained its 59% share of the air arrivals market during 2001 and also managed to expand by 2.3%. South American air arrivals still only account for 11% of the total, but their numbers have grown by 43.6% since 1999 to mark them as an emerging and expanding market.

Road

In 2001, arrivals by road grew by 16.6% to almost 380,000 and a market share of 27.2%, up from 24.2% a year earlier. Arrivals from the major North American market grew enormously, possibly in response to a fall-off in air arrivals at the close of the year. The greatest increases, both in terms of volume and proportion, were from neighbouring Central American countries.

Cruise

Costa Rica's incoming cruise market has been in strong decline since 1999, when capacity was slashed and arrivals fell by almost 20%.

Organisation

Promotion

According to a survey by Camara Nacional de Turismo, over half of international arrivals in 2000 had decided to visit Costa Pica upon the recommendation of friends or relatives who had done so themselves. The next greatest influencing factor was work or college (16% of responses), followed by newspaper articles (10.3%). This rightly suggests that the impact of government promotion is minimal. In 2002, the tourism promotion budget rose to US$9 million, thanks to a US$1.8 million injection as part of a recovery plan. This was put into perspective by the fact that in the USA, Florida alone spent US$44 million on promotion. Cost-effective online promotion presents cause for optimism and in the first three weeks of 2002, the Costa Rican Tourism Institute's website received in excess of 70,000 hits, up from 24,000 the previous September.

USA

Costa Rica's promotional efforts are largely focused on the US market. Following September 11th, efforts were intensified with a new advertising campaign, '100% Costa Rican', aimed at high-to-medium income American travellers. These newspaper advertisements, which appeared 43 times in the nation's top ten publications, celebrated Costa Rica's natural beauty and biodiversity and emphasised the opportunities for golf, scuba diving, fishing, adventure and hiking tourism.

Colombia

Colombia is another source market which has been targeted as part of a regional drive to attract more South Americans and in early 2002 the Foreign Minister and Costa Rican tourism business representatives visited the country in a bid to stimulate interest. So far this has yielded the incentives of fare reductions on Avianca Airlines routes from Colombia and added reductions for members of the Colombian National Golf Federation. West Caribbean Airlines have also increased Colombian services from Cartagena and San Andres and plan to add another flight from Medellin.

The future

After the fall-out of September 11th compromised Costa Rica's tourism industry, the new administration of President Abel Pacheco issued a decree deeming tourism to be 'a socio-economic activity of high priority'. This followed on from US$210 billion worth of government investment in tourism projects in 2000, compared with a mere US$23 million in 1999. The decree seeks to ally the tourism ministry with the private sector, represented by the Chamber of Tourism (CANATUR) and also create a National Tourism Promotion Board (Protur). The Costa Rican Tourism Institute (ICT) has contributed US$17.5 million towards this, drawn from its 3% tax on hotel rooms and 5% tax on airfares. CANATUR has also called for the construction of an international convention centre and the completion of road construction projects at Lake Arenal, Playa Tamarindo and bridges between Partita and Quepos. Financially, the aim is to generate an additional US$400 million in revenue by 2005.

Ruben Pacheco is faced with the task of restructuring and renovating the Costa q Tourism Institute (ICT) through a ten-year plan which seeks to work in conjunction with the Ministry of Finance and Public Works, the Costa Rican Electricity Institute (ICE) and the Water and Sewage Department. The ICT is sympathetic towards the demands of CANATUR, particularly the need for a second airport. The ICT has also spoken of the need to increase direct flights and seat capacities to Costa Rica, particularly through targeting airlines in Europe. The country's ports, including Limon and Puntarenas, have also been earmarked for development in order to welcome cruise ships and stimulate interest in yachting and sport fishing. Costa Rica's coasts are home to its poorest citizens and the ICT is seeking to raise tourism income in these areas through training programmes to improve the product for visitors.

Sustainable tourism

The government has been actively protecting its parks and reserves since the 1960s and today around a third of Costa Rica's territory is currently under some form of protection. The authorities are determined that the country's most saleable asset--its natural beauty--should not be undermined.

Costa Rica's Sustainable Tourism Certificate (CST) programme was developed by the tourist board and has been adopted by the World Tourism Organization's Sustainable Tourism Commission as the model to be implemented in destinations worldwide. The CST programme ascertains the sustainability of those businesses and hotels that voluntarily put themselves forward for an evaluation of their physical interaction with the surrounding environment, their management policies and operational systems, their interaction with external clients and their interaction with local communities. Participants are then awarded 'leaves' in a score system running from zero to a possible total of five.

In 2000 the WTO commission, the UN and US representatives gathered in Heredia to formulate a global strategy for sustainable tourism and grant Costa Rica a two-year presidency. The Costa Rican Tourism Institute (ICT) and the Japanese Agency for International Cooperation (JICA) have investigated how systematic planning can secure sustainable growth, in particular at the Pacific peninsulas of Osa and Nicoya. The benefit of ecotourism is that the financial benefits go to the local community as opposed to private business as is often the case with all-inclusive beach compounds.

Outlook

Ruben Pacheco has lamented that private industry, government and local communities all remain unaware of tourism's importance and its ultimate potential for the country. He has also called for the implementation of a national tourism training plan. Costa Rica currently thrives on its reputation as a paradise of flora and fauna and its tourism product is diversifying further and further beyond the 'unspoilt beach resort' image of some years ago. Once this has been safeguarded and secured with a sustainable ecotourism product, it will seek to supplement this with secondary 'complementary' experiences such as golf courses, beach resorts, museums and casinos.

FIGURE 1: MAJOR GENERATORS OF CURRENCY, 1996-2001 
(US$ mn) 
  
          Micro-     Tourism   Coffee   Bananas 
       electronics 
  
1996      -           688.6     385.4    631.1 
1997      -           719.3     402.3    577.3 
1998     987.2        883.5     409.5    667.5 
1999   2,558.6       1,036.1    288.7    629.0 
2000   1,653.5       1,229.2    273.7    546.1 
2001     810.1       1,278.6    161.8    515.9 
  
Source: Banco Central de Costa Rica 
  
FIGURE 2: BALANCE OF TOURISM ACCOUNT, 1992-2001 
(US$ mn) 
  
        Receipts   Expenditure   Balance 
  
1992     431.1        223.3       207.8 
1993     577.4        266.5       310.9 
1994     625.7        299.8       325.9 
1995     659.6        320.6       339.0 
1996     688.6        334.9       353.7 
1997     719.3        357.7       361.6 
1998     883.5        408.0       475.5 
1999    1,036.1       445.9       590.2 
2000    1,229.2       482.2       747.0 
2001    1,277.6       467.0       810.6 
  
Source: Banco Central de Costa Rica 
  
FIGURE 3: AVERAGE DAILY EXPENDITURE, 1997-2000 
  
            1997    1998    1999    2000 
  
Under 15    11.9    12.5    13.8     7.7 
15-50       32.1    35.3    30.4    32.9 
50-85       21.7    23.3    20.3    23.2 
85-120      12.9     9.4    10.7    11.9 
120-155      8.9     7.2     8.4     7.6 
155-190      4.0     3.5     3.9     4.9 
190-225      3.4     2.5     3.6     3.5 
Over 225    51.1     6.3     8.9     8.3 
  
Total      100.0   100.0   100.0    100.0 
  
Source: Camara Nacional de Turismo 
  
FIGURE 4: INTERNATIONAL ARRIVALS, BY SOURCE, 1999-2001 
  
Country               1999       2000       2001     % change 
  
Canada               45,565     52,696     52,661      -0.1 
USA                  392,556    429,725    429,093     -0.1 
Mexico               31,875     33,432     36,841      10.2 
North America        469,996    515,853    518,595     0.5 
  
Guatemala            33,677     33,191     32,574      -1.9 
El Salvador          28,572     31,149     35,054      12.5 
Honduras             26,400     24,338     27,174      11.7 
Nicaragua            168,447    143,142    171,583     19.9 
Panama               53,565     54,646     53,892      -1.4 
Central America      310,661    285,466    320,277     11.8 
  
Cuba                  3,585      3,570      3,578      0.2 
Dominican Republic    3,921      3,906      3,668      -6.1 
Jamaica                785        802        894       11.5 
Trinidad & Tobago      445        456        501       9.9 
Caribbean             9,327      9,450      9,298      -1.6 
  
Argentina            10,805     15,823     16,098      1.7 
Brazil                4,806      5,560      5,847      5.2 
Chile                 6,252      7,624      7,333      -3.8 
Colombia             26,704     40,458     47,547      17.5 
Ecuador               6,749      5,435      5,539      1.9 
Peru                  6,173      6,883      6,718      -2.4 
Venezuela             8,372     10,142     10,782      6.3 
South America        73,340     95,612     103,917     8.7 
  
Germany              24,622     26,475     23,995      -9.4 
Spain                27,031     26,877     26,916      0.1 
France               11,531     12,797     15,558      21.6 
Netherlands          15,612     18,994     18,119      -4.6 
UK                   17,215     18,256     18,922      3.6 
Italy                17,215     18,736     16,479      -1.5 
Sweden                2,616      2,998      2,814      -6.1 
Switzerland           9,149     10,061      9,898      -1.6 
Europe               141,331    151,393    150,796     -0.4 
  
Asia                 20,140     21,162     20,423      -3.5 
  
Africa                 897        789        837       6.1 
  
Total               1,031,585  1,088,075  1,131,406    4.0 
  
Source: Area de Empresas y Servicios Turisticos, Departmento 
de Fomento Instituto Costarricense de Turismo 
  
FIGURE 5: ARRIVALS, BY PURPOSE OF VISIT, 1997-2000 
  
           1997    1998    1999    2000 
  
Holiday    73.7    64.8    65.4    61.5 
VFR         3.8     6.7     4.5     8.4 
Business   13.7    18.3    22.7    21.7 
Study       4.0     3.8     3.3     3.8 
Other       4.8     6.4     4.1     4.6 
  
Total      100.0   100.0   100.0   100.0 
  
Source: Camara Nacional de Turismo 
  
FIGURE 6: SINGLE AND GROUP ARRIVALS, 1997-2000 
(%)  
  
Travelling              1997    1998    1999    2000 
  
Solo                    27.9    30.2    38.2    39.9 
With family             34.8    26.4    20.7    11.3 
With friends            24.3    26.5    18.7    19.5 
With friends & family    5.9     3.4     2.8     2.3 
As a couple               -       -       -     21.3 
Other                    7.1    13.5    19.6     5.7 
  
Total                   100.0   100.0   100.0   100.0 
  
Source: Camara Nacional de Turismo 
  
FIGURE 7: FREQUENCY OF VISITS, 1997-2001 
(%)  
  
Frequency          1997    1998    1999    2000 
  
First time visit   70.3    63.1    61.0    58.5 
Repeat visit       29.7    36.9    39.0    41.5 
  
Total              100.0   100.0   100.0   100.0 
  
Source: Camara Nacional de Turismo 
  
FIGURE 8: SEASONALITY OF ARRIVALS BY SOURCE, 2001 
  
Month   North   Central  Caribbean   South    Europe     Total 
       America  America             America 
  
Jan    57,997   42,505      948      12,321   16,200    132,715 
Feb    58,477   26,973      629      9,003    16,814    114,217 
Mar    66,170   23,426      823      8,198    13,314    114,640 
Apr    44,333   27,689      890      8,249    11,011    94,441 
May    35,204   19,553      752      8,050     8,507    74,318 
Jun    44,803   23,107      867      8,420     8,881    88,357 
Jul    47,086   30,384      911      9,849    14,128    105,089 
Aug    35,553   25,924      814      8,996    13,808    87,774 
Sep    18,140   20,864      646      7,176     9,290    58,341 
Oct    24,580   23,182      593      6,834    10,307    67,205 
Nov    36,592   26,439      753      7,471    14,048    87,320 
Dec    49,660   30,231      672      9,350    14,488    106,989 
  
Total  518,595  320,277    9,298    103,917   150,796  1,131,406 
  
Source: Area de Empresas y Servicios Turisticos, 
Departmento de Fomento Instituto Costarricense de Turismo 
  
FIGURE 9: DURATION OF STAY, 1997-2000 
  
Number of nights   1997    1998    1999    2000 
  
1-3                 7.4    12.8    17.9    14.3 
4-6                11.9    17.9    15.1    17.7 
7-9                23.4    21.4    22.5    19.0 
10-12              12.4    10.5     9.5    10.0 
13-15              23.0    13.9    13.4    15.4 
16-18               2.6     2.7     2.8     2.2 
19-21               7.0     6.0     5.6     5.4 
22+                12.3    14.8    13.2    16.0 
  
Total              100.0   100.0   100.0   100.0 
  
Source: Camara Nacional de Turismo 
  
FIGURE 10: PROPORTION OF ARRIVALS 
PARTICIPATING IN ACTIVITIES, 1997-2000 
  
Activity                             1997   1998   1999   2000 
  
Sun and beach                        64.7   63.4   54.1   43.4 
Sport fishing                        6.0    6.7    3.9    5.1 
Surfing                              7.4    8.8    10.3   8.9 
Diving/snorkelling                   15.6   13.7   12.0   11.0 
Rafting/canoeing                     12.8   9.1    7.8    8.5 
Other marine activities              2.1    2.0    5.1    7.1 
Other sport activities               2.5    4.2    2.9    3.6 
Walking                              42.4   44.4   37.1   42.7 
Bird-watching                        40.6   33.4   26.8   27.2 
Observing flora and fauna            58.2   47.6   38.1   37.4 
Visiting friends & relatives (VFR)   14.4   19.3   15.2   18.0 
Seminar or congress attendance       8.5    13.7   14.4   9.6 
Business/client visit                9.6    11.0   13.2   20.1 
Language study                       9.3    6.7    5.3    5.2 
Other                                10.4   13.5   15.1   1.6 
  
Source: Camara Nacional de Turismo 
  
FIGURE 11: INTERNATIONAL ARRIVALS, 
BY ORGANISATION OF TRAVEL, 1997-2000 
  
Type of trip                    1997    1998    1999    2000 
  
Organised group package         17.6    13.1    12.6     6.0 
Individually tailored package   11.9    15.3     6.5    13.0 
Standard package                26.2    12.0     5.5     9.3 
Independent                     37.2    36.3    53.6    71.7 
Other                            7.1    23.3    22.4      - 
  
Total                           100.0   100.0   100.0   100.0 
  
Source: Camara Nacional de Turismo 
  
FIGURE 12: HOTEL CAPACITY, BY CATEGORY AND PROVINCE, 2001 
  
                      Hotels star rating 
  
Province     0-star   1-star   2-star   3-star 
  
San Jose      199      325      275     1,694 
Alajuela       18      195      240      546 
Cartago        0        18       24       0 
Heredia        12       49      137      143 
Guanacaste     68      329      709      927 
Puntarenas    111      414      537      963 
Limon          13      191      131      281 
  
Total         421     1,521    2,053    4,554 
  
% share       2.8      10.1     13.7     30.4 
  
                      Hotels star rating 
  
Province     4-star   5-star   No cat.  Total 
  
San Jose      989      621      313     4,416 
Alajuela      234       34      100     1,367 
Cartago        16       0        0        58 
Heredia       664      344       20     1,369 
Guanacaste    742      506      300     3,581 
Puntarenas    833      603       27     3,488 
Limon          55       0        40      711 
  
Total        3,533    2,108     800     14,990 
  
% share       23.6     14.1     5.3     100.0 
  
Source: Area de Empresas y Servicios Turisticos, Departmento de Fomento 
  
FIGURE 13: HOTEL OCCUPANCIES, BY CATEGORY AND MONTH, 2001 
  
                  Hotels star rating 
  
Month    1-star   2-star   3-star   4-star   5-star 
  
Jan       52.0     44.8     65.7     61.9     66.8 
Feb       48.6     48.5     68.5     69.5     68.2 
Mar       42.8     38.7     68.4     70.7     70.1 
Apr       38.3     38.4     54.9     56.1     57.5 
May       36.7     25.1     43.5     47.3     48.4 
Jun       40.3     38.4     45.5     50.7     46.8 
Jul       16.6     14.1     50.7     52.0     59.0 
Aug       17.0     14.7     48.5     52.7     61.0 
Sep       15.6     15.6     35.6     39.6     59.0 
Oct       18.3     14.2     40.2     42.7     54.0 
Nov       15.6     14.9     44.6     51.5     68.0 
Dec       22.2     15.1     47.5     47.7     53.0 
  
Annual    30.3     26.9     51.1     53.5     59.3 
  
Source: Area de Empresas y Servicios Turisticos, Departmento de Fomento 
  
FIGURE 14: HOTEL PERFORMANCE IN SAN JOSE, 2001 AND 2002 
  
                  2001 
Month          Occupancy     Average     RevPar US$ 
                   %        room rate 
                               US$ 
  
Jan               63.8        122.56       78.22 
Feb               78.9        120.7        95.28 
Mar               78.5        116.99       91.82 
Apr               65.2        107.69       70.17 
May               70.0        94.49        66.11 
Jun               67.0        97.01        65.04 
Jul               70.4        94.63        66.61 
Aug               64.8        94.06        60.94 
Sep               54.0        92.19        49.80 
Oct               55.6        93.19        51.84 
Nov               71.4        93.61        66.84 
Dec               56.0         97.8        54.81 
  
Year-to-date      66.2        102.59       67.94 
  
                  2002 
Month          Occupancy     Average     RevPar US$ 
                   %        room rate 
                               US$ 
  
Jan               61.7        105.47       65.03 
Feb               73.9        116.86       86.36 
Mar               72.1        101.03       72.84 
Apr               69.5        109.17       75.90 
May               64.5        97.25        62.69 
Jun               58.3        94.32        54.95 
Jul               63.6        92.95        59.14 
Aug               62.8        93.77        58.84 
Sep               62.2        87.56        54.46 
Oct                -            -            - 
Nov                -            -            - 
Dec                -            -            - 
  
Year-to-date      65.3        100.12       65.37 
  
Source: Deloitte & Touche HotelBenchmark Survey 
  
FIGURE 15: AIR ARRIVALS, BY SOURCE, 1999-2001 
  
Country           1999       2000       2001     % change 
                                                 2000-01 
  
Canada           41,677     47,166     47,947      1.6 
USA             368,644    396,909    403,775      1.7 
Mexico           30,427     31,694     35,276      11.3 
North America   440,748    475,769    486,998      2.3 
  
Guatemala        22,746     22,171     19,102     -13.8 
El Salvador      13,026     14,803     14,385      -2.8 
Honduras         8,058      9,402      9,226       -1.8 
Nicaragua        10,791     10,729     9,155      -14.6 
Panama           15,641     14,572     14,665      0.6 
  
Caribbean        8,907      8,724      8,710       -0.1 
  
South America    66,291     87,608     95,221      8.6 
  
Europe          124,533    131,879    129,872      -1.5 
  
Total           734,158    800,795    812,022      1.4 
  
Source: Area de Empresas y Servicios Turisticos, Departmento 
de Fomento Instituto Costarricense de Turismo 
  
FIGURE 16: ROAD ARRIVALS, BY SOURCE, 1999-2001 
  
Country           1999       2000       2001     % change 
                                                 2000-01 
  
Canada           3,660      3,599      3,489       -3.0 
USA              16,585     14,101     16,667      18.2 
Mexico           1,266      1,453      1,475       1.5 
North America    21,511     19,153     21,631      12.9 
  
Guatemala        10,914     11,006     13,453      22.2 
El Salvador      15,530     16,318     20,629      26.4 
Honduras         18,271     14,908     17,905      20.1 
Nicaragua       157,573    132,362    162,390      22.6 
Panama           37,802     40,019     39,160      -2.1 
  
Caribbean         389        672        541       -19.5 
  
South America    6,579      7,749      8,485       9.5 
  
Europe           15,773     17,916     20,023      11.7 
  
Total           287,476    263,831    307,831      16.6 
  
Source: Area de Empresas y Servicios Turisticos, Departmento 
de Fomento Instituto Costarricense de Turismo 
  
FIGURE 17: CRUISE VESSELS, ARRIVALS AND RECEIPTS, 1996-2001 
  
      Vessels   % change  Arrivals  % change  Receipts  % change 
                                              (US$ mn) 
  
1996    168       2.4     158,742     13.9      14.9       - 
1997    202       20.2    201,386     26.9      18.3      22.8 
1998    220       8.9     224,405     11.4      21.4      16.9 
1999    253       15.0    235,039     4.7       21.5      0.4 
2000    199      -21.3    189,814    -19.2      18.7     -13.0 
2001    195       -2.0    188,596     -0.6       -         - 
  
Source: Area de Empresas y Servicios Turisticos, Departmento 
de Fomento Instituto Costarricense de Turismo 

Richard Cope is a Research Analyst at Mintel's Travel & Tourism Intelligence.

Copyright 2003 Central European Business Ltd.

Note: The above information is not to be used for any other purpose other than private study, research, criticism or review. Thank you.

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