Costa Rica Coffee Guide

Health of domestic economy worries tourism

July 18, 2008

The tourism sector is concerned about the health of the domestic economy and its impact on tourism by nationals and residents. 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 people´s 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 during the 12 months ending 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, variables that explain high inflation. 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 need to be creative and generate profitability through increased competitiveness, he added.

Tourism generated $1.85 billion in revenues last year, representing 8 percent of the country´s gross domestic product (GDP), and provides income for approximately 450,000 people through direct and indirect jobs, according to CANATUR.

You may be interested

Costa Rica coronavirus data for July 9, 2020
Costa Rica
21245 views
Costa Rica
21245 views

Costa Rica coronavirus data for July 9, 2020

Alejandro Zúñiga - July 9, 2020

Costa Rica confirmed 649 new cases of the coronavirus over the past day, totaling 6,485 cumulative known cases, the Health…

Costa Rica previews new tower at Calderón Guardia Hospital
Costa Rica
7558 views
Costa Rica
7558 views

Costa Rica previews new tower at Calderón Guardia Hospital

Alejandro Zúñiga - July 9, 2020

Costa Rican authorities on Thursday previewed a new tower at Calderón Guardia Hospital in San José, which could be used…

News briefs: Costa Rica will handle land borders differently than airports
Costa Rica
4728 views
Costa Rica
4728 views

News briefs: Costa Rica will handle land borders differently than airports

Alejandro Zúñiga - July 9, 2020

The coronavirus crisis has transformed life in Costa Rica, which has enacted measures to protect the capacity of its health…