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Costa Rica: Costa Rica Tourism Profile

2015/03/08

Costa Rica Tourism

Costa Rice tourism receives essential rebranding

After five years of research, development and testing, Costa Rica launched its new tourism brand, Esencial COSTA RICA (translation: Essential Costa Rica) in September 2013. The national rebranding was a result of the collaboration between multiple institutions interested in the success of the county’s tourism: the Ministry of Foreign Trade (COMEX), the Instituto Costarricense de Turismo (ICT) (the Costa Rican tourism board), the Foreign Trade Promoter (PROCOMER) and the Costa Rican Investment Promotion Agency (CINDE). According to the Vice President of the Country Brand Committee, the rebranding serves to differentiate Costa Rica from competitors while as well promoting the country’s key attributes: price, concentration, pride and authenticity. The new branding is as well expected to attract foreign investment , support exports and promote the county’s tourism offerings.

Domestic tourism offers new increase opportunities

After the 2008 world economic crisis, tourism in Costa Rica suffered as arrivals and incoming tourist receipts declined. However, during this time, spending by domestic tourists declined at a slower rate than that by inbound. As a result, ICT launched a national campaign to promote domestic tourism: Vamos a Turistear (Translation: Let’s take a trip). The 2012-2013 campaign offered residents who displayed their national identification card a 10% discount on resorts while some offered up to 35% discount for family packages. Marketing was focused on social media, inclunding Facebook and mobile apps inclunding advertisements on television, radio and online. While the results of the campaign are not from presently on published at the time of writing the statement, the financial news source El Financiero noted that the ICT’s 2012 domestic campaign resulted in 700 direct bookings and 100,000 visits to accommodation, foodservice, theme park and other recreation operations.

Costa Rica becoming key destination for medical tourism

Medical tourism is an increasingly significant player in Costa Rica’s tourism industry. For instance, in April 2013 Costa Rica hosted the third annual Medical Travel International Business Summit, which included over 200 medical-related companies inclunding hospitals, insurance providers and medical tourism businesses, part others. The ICT, Council for International Promotion of Costa Rican Medicine (PROMED) and the National Education Institute (INA) hosted the event, which helped reinforce Costa Rica’s position as a leading medical tourism provider in Latin America. The country is popular for medical tourism as procedures can cost 50%-70% less than those in the US and visitors from the US, Canada and some European nations do not require a visa. Furthermore, foreign companies are taking chance of the low medical costs by paying to send employees to Costa Rica for medical care. 50,000 people visited Costa Rica for treatments in 2013.

Broadening horizons to compete against Mayan ruins

In 2012, the ancient Mayan culture in Central America received world attention due to the so-called Mayan prophesies that the world was going to end on December 21. Central American nations such as Mexico, Belize and Guatemala, which have a wealth of Mayan ruins, benefitted as visitors visited the sites for the “end of the world”. Even before 2012, Mayan ruins were a large cultural tourism draw in those nations. Costa Rica lacks Mayan ruins but the industry found methods to attract visitors interested in cultural or historical tourism. Promoting incomparable Tico culture, operators focus on the county’s famous coffee via plantation tours. Cacao tours and cooking classes are as well increasingly popular. Costa Rica’s cities as well offer walking tours that feature historical homes, churches and museums, part others. While eco-tourism is expected to remain the country’s key strength, players will continue to develop cultural activities to attract visitors and remain competitive.

 

Costa Rica receives the majority of its tourist arrivals from the Americas, with the top three source markets for visitors to the country being the US, Nicaragua and Canada. Tourism arrivals, next increasing from 1.72mn in 2006 to 2.15mn in 2008, dipped to 1.93mn in 2009. The numbers picked up in 2010 and 2011, and are estimate to reach 2.47mn in 2012 before growing at an average rate of 7% until the end of our estimate period in 2015.
 
Health tourism brings visitors to the country and it is an area where Costa Rica can continue to develop its infrastructure to tap further into a growing market. By presently known as a destination for medical tourists, Costa Rica is competing with newer destinations such as Puerto Rico for the millions of Americans, and people from other nations, who travel abroad for medical care. In 2010, medical tourism generated US$250mn in revenue for Costa Rica’s health services industry, according to the Council for International Promotion of Costa Rica Medicine.
 
In the same vein as health tourism, Costa Rica is making retirement communities a priority to keep visitor numbers up. The country is targeting North American pensioners and is doing away with the red tape of residence permits, particularly for those in good health. Tax exemptions on real estate and vehicles are as well being offered. The campaign is being run by the Costa Rica Tourism Board (Instituto Costarricense de Turismo, ICT). The Ministry of Competitiveness has by presently identified eight locations for retirement communities, focusing on areas with natural beauty, tourist attractions and in proximity to hospitals. An extra tourism draw for Costa Rica is spa and wellbeing vacations. The country has been recognised by TripAdvisor users as of the best places in Central and South America to enjoy spa getaways. Some areas that wellbeing tourists are visiting are the hot springs near the Arenal Volcano, the beaches of the Nicoya Peninsula (home to yoga retreats) and the back-to-nature settings of the Central Valley region. The planned regeneration of the province of Limón, on the less frequently visited Caribbean coast, has the potential to put upward pressure on inbound tourism numbers. Puerto Limón was once the town of the United Fruit Company (the predecessor of Chiquita Brands International) and the province has national parks. The parks have the potential to be a large tourism driver and a tour by Wildland Adventures was named of the 25 Best New Trips for 2010 by National Geographic Adventure magazine. In our view, developing tourism infrastructure in the region is likely to unlock great potential.
 
In 2010, the Inter-American Development Bank (IADB) approved grants of US$1.1mn and US$1.5mn to support parts of the Mesoamerica Pacific Corridor Project. The corridor runs through nations from Mexico to Panama. The Optimisation of Border Crossings Pacific Corridor grant will be used to improve passage over borders and the Adjustment, Maintenance and Operation of the Pacific Corridor grant will improve road infrastructure over 2015-2030. The project aims to develop a quicker route between Mexico and Panama. BMI believes that inclunding fostering trade in the region, the development of infrastructure has the potential to increase tourism as travel will be much additional feasible.
 

Global recession affects arrivals in Costa Rica

 
The slowdown in US economic increase is hurting Costa Rica. The impact of the world recession was by presently evident in 2009 because of a decrease in the number of arrivals from major inbound source nations such as the US. As well, tourism spending and the average length of remain decreased, while unemployment rates rose in 2009. According to the International Monetary Fund (IMF), nations that are additional dependent on travel and tourism, such as Costa Rica, will have a slower recovery. Costa Rica is dependent on arrivals from the US and is therefore due affected by the US economy. The travel and tourism industry in Costa Rica is expected to begin recovering in 2010 as its major inbound source nations begin recuperating from the crisis.

The Costa Rica Tourism Institute (ICT) spends US$20 million on promotional campaigns

The ICT’s US$20 million investment will mainly be used to promote the country through cooperative campaigns with airlines, wholesalers and international fairs. The major markets for these promotions will be the US, Canada and Europe (particularly Spain, Germany, Italy, France, the Netherlands, the UK and Switzerland). The ICT is as well making an effort to promote Costa Rica in Argentina and Brazil. There is as well a 2-year aggressive strategy in place to attract additional airlines to the country; and an extra plan to attract additional North American tourists in the new international campaign “Costa Rica Plus”, which seeks to increase short-term reservations through added price.

Increasing request for health and wellness tourism in Costa Rica

The Council of International Promotion of Costa Rica Medicine (PROMED) is the official entity in charge of promoting and regulating health and wellness tourism in the country. Costa Rica is the initial Central American country to have a hotel specialising in health and wellness tourism called the Paradise Cosmetic Inn & Spa Hotel. The country offers an alternative choice for US patients who will save between 40-60% on the cost of medical procedures, and will as well receive high quality medical attention and top-of-the-line medical facilities. The majority popular medical procedures at the hotel are dental care and cosmetic surgery.
 

The Sustainable Tourism Programme is key to long-term growth

 
The Sustainable Tourism Programme’s major purpose is to create responsible tourism and promote economic development. The Sustainable Tourism Programme’s certification system was created with the objective of implementing measures to help achieve tourism development with less impact on the environment, guaranteed quality services and sustainable increase. This is a permanent programme that seeks to promote long-term sustainable increase and development in the travel and tourism industry.
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