• Costa Rica Coffee Guide

Domestic Economy Worries Tourism Industry

July 25, 2008

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

Anti-corruption operation results in arrests, raids at Casa Presidencial
Costa Rica
5 views
Costa Rica
5 views

Anti-corruption operation results in arrests, raids at Casa Presidencial

AFP and The Tico Times - June 14, 2021

Costa Rican authorities on Monday raided the Presidential House and various state agencies, and they detained at least two owners…

Costa Rica College of Doctors negotiates large U.S. vaccine donation
Costa Rica
14 views
Costa Rica
14 views

Costa Rica College of Doctors negotiates large U.S. vaccine donation

Alejandro Zúñiga - June 14, 2021

Costa Rica's College of Doctors says it is negotiating with the United States government for a donation of about 1.5…

Google, Apple contact tracing enabled in Costa Rica
Costa Rica
11 views
Costa Rica
11 views

Google, Apple contact tracing enabled in Costa Rica

Alejandro Zúñiga - June 14, 2021

Costa Rica will enable exposure notifications, a service developed by Google and Apple that uses mobile phones to alert an…

The Tico Times | Top Costa Rica News, Travel, Culture and Sports