Costa Rica’s 2008 Progress Report – First half.

During the first five months of 2008, more than 133,000 foreigners visited Costa Rica which is a 16% increase over 2007.

The Costa Rican Institute of Tourism (ICT) launched an aggressive marketing and advertising campaign in light of the economic recession in the USA. The ICT is investing $14 million dollars in marketing to promote Costa Rica as an exotic destination. This advertising campaign will be online and through a public relations agency that the ICT hired in New York.

Because Costa Rica is closer to the USA, it is less expensive than many destinations such as Europe, Thailand and other Asian countries. In spite of current economic hardships and more expensive airline fares resulting from increased fuel costs, more Americans continue to favor trips to Costa Rica over other popular destinations.

The arrival of tourists in Costa Rica continues increasing, despite the current hardships of U.S. economy and more expensive plane tickets resulting from the upward trend of fuels.

Because of its popularity as one of the worlds most sought after destinations for business and pleasure, Costa Rica will be affected very little by the recently published airline cancellations.

Currently, the USA Airlines offer 106 weekly flights into San Jose and Liberia international airports as follows:

Airline Weekly Flights to Costa Rica:

• American 43
• Continental 25
• Delta 24
• Spirit 7
• US Airways 7

Additionally, business travel is steadily increasing and for good reason. The World Economic Forum recently studied 18 Latin American countries to identify the best conditions for trade and business. Costa Rica ranked 2nd in Latin America and 44th globally.

54% of visitors arrive from the United States. Europe, the second largest market, accounts for 17% of the visitors to Costa Rica. The majority of the European visitors are from Spain, Germany, France, England, and Italy. The ICT is intensifying publicity in Russia, France and Switzerland, which are also attractive growing markets.

Exploration of Asian markets is on the agenda as well. Last year an agreement was signed with China, adding Costa Rica as a preferential tourist destination. The ICT predicts a growth rate of 6% in the inflow of tourists into the country in 2008, compared with 10.15% achieved last year.

Last year, seven new airlines began flying to Costa Rica, four US and three European. Costa Rica is now working to attract more low-cost American airlines as well as large European airlines interested in adding Costa Rica as a new destination

The option to fly to Costa Rica has increased by 675,000 seats. The number of seats available for travel here rose to 2.7 million, an increase of 33% over the last several years.

Guanacaste, the Pacific Coast – Increase in Tourism in 2008

Tourism in Guanacaste reached a new high in the first three months of 2008, as more than 150,000 people flew into the region via the Liberia airport. The new figures confirm that Guanacaste has become the principal tourism destination of the country, with many tourists so satisfied with their experience that they keep coming back for more.

Tourism’s Effects in Costa Rica:

1. Growth continues unabated
2. Property values rise as resorts develop
3. More local residents have jobs
4. Tax receipts are increasing
5. Rundown areas are being cleaned up
6. Most Costa Rican’s view new development projects as an opportunity to improve theirs and their family’s lives

Costa Rica as a Destination for Entrepreneurs:

Surveys of recent travelers to Costa Rica indicate they are well educated and spend considerable discretionary income on travel. The majority are adventurous with their choices of activities and accommodations and plan their own trips versus relying on travel agents.

These primarily American tourists are affluent, college educated, middle aged, and married without children living at home. Their education and income levels indicate they are high-end travelers.

Activities in Costa Rica:

Conservative travel activities and moderate length of stay are favored by the typical Costa Rica traveler. The majority of the first-time travelers prefer Costa Rica more than any other Latin American destination that they had visited based on Costa Rica’s ecotourism and its unspoiled environment.

The primary activities of these travelers are:

• Ecotourism
• Sightseeing
• Beach and Waterfront Activities

Rank of Latin American Countries:

The fact that Costa Rica was ranked as the number-one tourist destination among Latin American countries indicates its current worldwide attractiveness as one of the worlds top tourist destinations.

Income Levels:

More than 80 percent have an annual household income of over $100,000, and among these, more than half have an annual income over $200,000. These travelers are clearly an affluent group, with incomes higher than both average Americans and typical international leisure travelers. Although the travelers to Costa Rica spent more than $2,500 for their trip, only 25 percent spend more than $7,500.

Travel Preferences:

People with adventuresome personalities want to explore the world in all of its diversity, and they feel comfortable in cultures where they do not speak the language. The travelers who prefer Costa Rica are comfortable traveling to countries with different languages and cultures. Most do not participate in guided tours and rely on their own judgment regarding what they do at their destination.

Trend of Market Growth:

Recent statistics reveal that the number of U.S. travelers to Costa Rica is increasing. The top three most visited international tourism destinations are Western Europe (39.5%), Central America (23.9%), and the Caribbean (17.4%).

Despite the interruption in travel after the 9/11 terrorist attack, the number of U.S. tourists to Costa Rica increased 30 percent from 1999 to 2003, a rate that exceeds the growth of travel to Costa Rica by travelers from all nations.

General Travel Patterns:

Travelers to Costa Rica are accustomed to spending large sums of discretionary income on travel, which includes airfare, lodging, meals, activities and ground transportation. Based on statistics of international tourists to Costa Rica, the average length of stay is eleven days, while 63% stay between seven and ten days and only 6% spent more than three weeks in the country.

A large percentage of Costa Rica’s tourists are frequent travelers, traveling internationally more than twice a year. They usually travel with other people instead of traveling alone and most travel with their spouses or partners or with friends, children, or business associates.

Some travelers use public buses or other ground transportation to pre-booked destinations, while most preferred to obtain a car and find their own way around. In contrast, the largest portion preferred tour buses or taxis, indicating the arrival of more conservative travelers in Costa Rica.

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Written by Tom Rosenberger. With more than 25 years of homebuilding experience, 15 of which have been in Costa Rica, construction consultant Tom Rosenberger knows the ins and outs of building and remodeling a home in the Central Valley area of Costa Rica.

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.