Domestic Economy Worries Tourism Industry
The tourism sector is concerned about the health of the domestic economy and its impact on tourism. The National Tourism Chamber (CANATUR), the main private-sector body representing the country’s tourism industry, warned its members “to be alert and take the necessary precautions” given worsening economic conditions.
“The Costa Rican tourism sector should be prepared to feel the negative effects of the current situation, reflected in sharp drop in (residents’) purchasing power and in the national population’s capacity to take day trips,” said Gonzalo Vargas, president of CANATUR.
CANATUR cited Costa Rica’s inflation rate – which reached 13 percent year-over-year in June – the colón’s recent depreciation against the U.S. dollar, rising interest rates and the slowdown of the U.S. and Costa Rican economies as reasons for concern.
“We are seeing how, as interest rates rise, the amount paid on loans rises, affecting the income available for recreation,” Vargas said. “To this must be added the steady increase in the cost of oil and food. … The tourism industry is not exempt from this scenario.”
Vargas said the tourism sector needs to be creative in terms of its supply of services to compensate for the negative economic conditions. Tourism providers must be creative and generate profitability through increased competitiveness, he added.
Tourism generated $1.85 billion in revenues last year, representing 6.8 percent of the country’s gross domestic product, and currently provides income for approximately 450,000 people through direct and indirect jobs, according to CANATUR.
You may be interested
Slothy Sunday: Just hanging outAlejandro Zúñiga - May 26, 2019
Last week, Denise Gillen, a sloth nanny from the Toucan Rescue Ranch, shared the story of Bon Jovi, a sloth…
Twice as nice: Güity wins second gold at Grand PrixAlejandro Zúñiga - May 25, 2019
A day after he placed himself atop the world rankings with his time in the 200-meter T64 at the 2019…
Costa Rica obtains $500 million from CAF for fiscal supportAFP and The Tico Times - May 25, 2019
The Development Bank of Latin America (CAF) on Friday granted a $500 million credit to Costa Rica to support the…