No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveTourism Leaders Concerned

Tourism Leaders Concerned

COSTA Rica is in danger of losing itssupremacy as Central America’s tourismleader, sector representatives said this week.Poorly maintained roads, a lack of hotelrooms and increased competition from otherLatin American countries are reasons forunprecedented concern, they said.But the main focus of Costa Ricantourism leaders’ concern is a recentComptroller General’s Office decision toeliminate tax breaks for tourist businesses.The incentives allowed for various taxexemptions on imports such as vehicles forcar-rental companies and furniture forhotels. After an extended disagreementabout whether the tourism incentive lawapplied only to new businesses for a shortperiod of time, or was a long-term supportfor existing businesses, the Comptroller’sOffice rescinded the benefits last week, tothe consternation of the Costa RicanTourism Institute (ICT) and other groups(TT, Jan. 28).THE decision could cause Costa Ricato lose countless millions in foreign investmentand 177,822 direct and indirect jobs,said William Rodríguez, president of theNational Tourism Chamber.Rodríguez said he calculated the numbersbased on last year’s hotel constructionrates. In 2004, 833 new hotel rooms wereconstructed here, he said – a rate unlikelyto improve in future years if foreigninvestors seek projects elsewhere.Continuing at that rate, the country will be6,880 rooms short within eight years, drivingdown sector growth and causing jobloss, Rodríguez said.AGUSTÍN Monge, a representative ofthe Costa Rican Hotel Chamber (CCH),said the fact that the comptroller can makesuch far-reaching decisions unilaterally isenough to scare away prospectiveinvestors.“How do we explain to the Marriott orthe Four Seasons… that the rules of playcan be changed on a whim?” he said.According to Monge, the Costa RicanTourism Institute plans to present a petitiontoday to the Comptroller’s Office, requestingclarification of the reasoning behindthe controversial decision.THE daily La Nación reported thisweek that other Central American countriesare poised to give Costa Rica unprecedentedcompetition.Guatemalan President Oscar Bergerhas declared tourism to be one of the pillarsof his administration; Nicaragua is discussingnew laws designed to attracttourists and foreign investment (see TheNica Times); and El Salvador recentlyfounded its own Tourism Ministry.Rodríguez compared the comptroller’stax law change to “sending someone to warwith a machete when all the rest have themost up-to-date weapons.”RODRÍGUEZ also referred to competitionfrom South America as a new threat.“When you see the efforts that (countriessuch as) Bolivia and Peru are making…we have to worry more than we havetraditionally worried,” he said.Costa Rica’s tourism industry generated$1.44 billion in 2004, making it theregional leader. Its Central Americanneighbors ranked in the following order:Panama ($850 million), Guatemala ($770million), El Salvador ($424 million),Honduras ($410 million) and Nicaragua($200 million), according to La Nación.

Trending Now

What to Expect at Costa Rica’s El Tope Parade

Thousands of riders and spectators gather today for El Tope Nacional, marking the Day of the Horseman in Costa Rica. This year, the event...

Costa Rica’s Escalating Drug-Related Killings Grip Quepos and Parrita

Drug gangs fighting for control have left 95 people dead in Quepos and Parrita since January 2024, according to data from the Judicial Investigation...

Latin America Doubles Success Shows the Best Path to Grand Slam Tennis

In men’s tennis, Latin America’s clearest route to the sport’s biggest stages isn’t always singles. It’s doubles. Over the past two seasons, the region...

Wolverine Star Hugh Jackman Back in Costa Rica

Actor Hugh Jackman touched down in Costa Rica over the weekend, heading straight to the Pacific coast for a quiet vacation. The Australian star,...

Air Panama Eyes Revival of Direct Flights from David to San José

Panamanian airline Air Panama has started assessing plans to bring back direct flights between David in Chiriquí province and San José starting in 2026....

Strong Winds Set to Dominate Christmas Eve in Costa Rica

Much of Costa Rica will spend Christmas Eve under sun and strong winds, with only limited rain expected in a few regions, according to...
Avatar
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica