Costa Rica Tourism Industry Clearly in Trouble?

[Andrew]

Empresarios turísticos urgen moratoria a embargos bancarios en Costa Rica/Tourism operators urge moratorium on bank foreclosures in Costa Rica

Según Marchegeani – el presidente de la Asociación para la Protección del Turismo (Protur) – en los últimos tres años han desaparecido en el país unas 130 empresas turísticas, muchas de ellas hoteles que han sido embargados y rematados por los bancos, pues sus dueños no pudieron pagar las deudas.

Además, dijo que en la actualidad hay otras 700 empresas que se encuentran en peligro de sufrir un embargo.

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ROUGH TRANSLATION
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According Marchegeani – the President of the Association to Protect Tourism – in the last three years, in the country some 130 tourism businesses have disappeared, many of them hotels that have been seized and auctioned by the banks, because their owners were unable to pay debts.

He also said that at present there are another 700 other companies in danger of foreclosure.

See the original article in Spanish on [url=http://www.elconfidencial.com/ultima-hora-en-vivo/2014-04-27/empresarios-turisticos-urgen-moratoria-a-embargos-bancarios-en-costa-rica_242582/]elconfidencial.com[/url]

What do you think can be done to help protect and promote tourism in Costa Rica?

Scott

[costaricabill]

Scott –
Several things come to mind:

The landing fees need to be reduced at Liberia Airport. The excessive fees cause higher ticket prices when compared to San Jose, sometimes as much as 25% differential. That’s not too bad when there are only 1 or 2 people traveling, but when you have a family of 4 or 5, it can make a big difference. (And yes Sprite, there are people that come to Costa Rica to enjoy the beaches warm weather, and for the most part they would prefer to fly to LIR vs. SJO.

Lower landing fees and resulting lower airfares may encourage other airlines to add LIR as a destination, as well as existing airlines to add more flights. I have a good friend that is Mayor of Tampa and, as such, serves on the Hillsborough County Aviation Authority. Tampa International Airport is on a big push to get more international flights (they just add a JetBlue flight to Panama City and a couple more to the Caribbean). I have pleaded with my friend to encourage flights from Tampa to LIR or SJO. He investigated and came back with news from various airlines, telling me “Gate space is a problem at SJO and landing fees are excessively high at LIR”.

While on the subject of airports, the last impression that travelers get on their vacation to Costa Rica is sometimes a meal or a snack at the airport. The company that runs the airport concession should lower the rent for those companies renting space, and that would allow those companies to lower prices of the meals and goods they sell. I continuously hear from family and friends that have returned home how expensive the airport food is (was). More than $15 for a non-descript burger & a coke! Recently while waiting to pick up someone at LIR I walked into the snack shop to get a regular size bottle of water (usually 650 -700 colones) and a small bag of chips (usually less than 1000 colones throughout Costa Rica). The cashier said “$9.80”. I looked at her in amazement, and replaced the items on the shelves and walked out.

When families have to fork out $50-60.00 or more for 4 sandwiches and 4 non-alcoholic beverages at an airport, that’s something they remember when they get home they tell others and it could impact the travel plans of those considering Costa Rica as a destination. Then to make matters worse, I remember reading last year that all of the food service operators at SJO raised their prices almost 100% overnight!

Rental car cost – especially the insurance. The cost of renting vehicles in Costa Rica is already high, then when you get “full coverage insurance” it can sometimes equal or exceed the cost of the rental. We recently had guest that rented a 7 pax Prada from Toyota Rental, and the cost for 3 days with full insurance was $522, and there were no delivery or drop off fees.

Almost every family member, guest or rental guest that we have complains about the high costs of rental cars here. Even if you have insurance on your credit card and you confirm it before you arrive, some rental companies are requiring a letter from your credit card company stating that their insurance covers the exact make, model and year of the vehicle you will be renting – and that is something you don’t know and usually cannot be assured of when you make your reservation.

Maybe addressing these things beyond reach, and maybe I make too much of them, but when I hear the same thing over and over I am sure that potential tourists are hearing it from the same people that complain to me about these things.

[davidd]

Scott

I think personally you would be better qualified to generate targeted people interested in tourism.

the knuckleheads that head the ICT spend their millions on unaccountable type of branding.

drill down for a second as an example.. lets use George Lindquist..

he is someone that specifically targets how to live in costa rica on social security..

he targets a group of people and leverages that benefit

in many ways the same could be done with various campaigns..

problem is that ICT is so disconnected with why people actually want to visit costa rica they rely on Branded advertising agency’s.. and throw money at it.

then they themselves fudge the numbers by including everyone that comes to this country and labels them as tourists.. so all those PT’s that come and go every 90 days are tourists.. etc :roll::roll::roll:

the true measure as always are the businesses that either stay open or they close..

Do you want to know what tourist sector that stays consistant with an increase positive trend??

the sex tourism industry.

go check out the hotels downtown in gringo gulch and ask

The sportsmens lodge
del rey
mona lisa
amistad
scores
zona 2

etc and see if they are doing good.. :P:P:P:P

[Andrew]

Agreed costaricabill and davidd – great feedback thank you …

So if you’re like me you probably think that the new Esencial advertising campaign is a complete pile of sh*t, do you?

[img]http://www.qcostarica.com/wp-content/uploads/2013/09/esencial-home_bg.jpg[/img]

Scott

[jreeves]

My home is at a very small beach in the Central Pacific. There are 2 hotels – one stays relatively busy with Ticos during high season, while the other is almost always empty year round. There are two gated communities at our beach with a large number of rental homes. I own in one of these communities. My neighborhood stays relatively busy with renters, even during the low season. So, based on what I see in my own neighborhood, I’d say that a huge issue for many hotel owners is the number of condos & homes offered as vacation rentals for comparable (or cheaper) prices. At the same time, most of the homeowners are not reporting income or paying taxes whereas the hotels are on the hook for it. I can only imagine the dent my neighbors have put in the business of the two hotels at our beach by offering their homes for rent.

Jessica

[davidd]

:roll::roll::roll::roll::roll::roll::roll::roll::roll::roll::roll::roll::roll::roll::roll::roll::roll::roll::roll::roll:

if I was in charge..:wink:

I would use all monies for product placements in movies.. since the american public.. believe people and choose them to be the most trusted people in america

people like tom hanks..and sandra bullock

http://www.rd.com/slideshows/readers-digest-trust-poll-the-100-most-trusted-people-in-america/

and they vote people into office because Arnold will be back..

then movies would be the way to go..

they should also leverage youtube and focus thier marketing on video and attempt to create viral videos..

they may hit 1 out of 10 but that one viral idea.. can generate lots of traffic if it went viral

much better bang for the buck

[costaricabill]

Scott – In my opinion, and I am no marketing or advertising genius, it is probably one of the poorest efforts to get a message across that I have ever seen.

I’m sure it was meant to mean
“It is essential that you come see Costa Rica”

To some, it could mean
It’s essential for us that you come spend your money in Costa Rica.”
crb

I thought the former slogan “No Artificial Ingredients!” was much more inviting and was better suited to represent waht CR has to offer tourist.

[Imxploring]

It’s one thing when a beautiful vacation destination has some tourist traps scattered around… you can avoid them. When a whole country becomes a tourist trap trying to milk visitors for every last dime you have a problem!

The car rental issue is a big turn-off for people. The Airport prices are indefensible… hell the prices are lower at JFK in NY. The overall pricing of “adventure/nature” activities including lodging in CR are turning people away.

A marketing campaign or catchy slogan do little to offset the perception people have when they do their research or visit. It’s often the bottom line of cost versus value that people leave with that keeps them coming back or recommending a travel destination to others. While getting fleeced occasionally may not lead to a negative opinion having it be the norm does result in a negative experience. The sore spot for many leaving CR after a visit is the Liberia Airport. The prices and limited options for food or beverages are INSULTING! And correct me if I’m wrong they INTENTIONALLY didn’t install water fountains in the terminal so that you’re held hostage for a $5 bottle of water!

This is NOT the last experience you want folks to have when leaving CR…. unless of course you don’t care if they return or bad mouth your country about their experiences in CR. They should be thanking people, wishing them well, and looking forward to seeing them again… THAT theme goes a long way compared to ALL the slogans and marketing I’ve seen the tourist board coming up with!
When folks can go to Disney in Florida and stay and eat for less you have to take a serious look at your business model. I don’t believe that CR is doing that. The place is still beautiful, but they’re killing (or at least squeezing) the golden goose a little too hard!

[davidd]

[quote=”Imxploring”]It’s one thing when a beautiful vacation destination has some tourist traps scattered around… you can avoid them. When a whole country becomes a tourist trap trying to milk visitors for every last dime you have a problem!

The car rental issue is a big turn-off for people. The Airport prices are indefensible… he’ll the prices are lower at JFK in NY. The overall pricing of “adventure/nature” activities including lodging in CR are turning people away.

A marketing champaign or catchy slogan do little to offset the perception people have when they do their research or visit. It’s often the bottom line of cost versus value that people leave with that keeps them coming back or recommending a travel destination to others. While getting fleeced occasionally may not lead to a negative opinion having it be the norm does result in a negative experience. The sore spot for many leaving CR after a visit is the Liberia Airport. The prices and limited options for food or beverages are INSULTING! And correct me if I’m wrong they INTENTIONALLY didn’t install water fountains in the terminal so that you’re held hostage for a $5 bottle of water!

This is NOT the last experience you want folks to have when leaving CR…. unless of course you don’t care if they return or bad month your country about their experiences in CR. They should be thanking people, wishing them well, and looking forward to seeing them again… THAT theme goes a long way compared to ALL the slogans and marketing I’ve seen the tourist board coming up with!
When folks can go to Disney in Florida and stay and eat for less you have to take a serious look at your business model. I don’t believe that CR is doing that. The place is still beautiful, but they’re killing (or at least squeezing) the golden goose a little to hard![/quote]

some excellent points.. I just dont see this country realizing these issues until its too late

I also dont think its intentional as thier idea of marketing is just not providing information so people can make better decisions.. they just want your money

its similiar with all tourist locations.. its the 1 offs they are interested in

a personal example is Little italy in NYC.. this place would milk all the tourists without regard to the repeat customer.

and they got away with this for years and years and years..

until 9/11 happened..and let me tell you all of a sudden..

its.. all about the customer experience and repeat business lol

same thing similiar here when ICE was the only telephone company in town

It took me 15 months just to get a landline

and customer service was NON existent.. fast forward to today and they fall over over themselves with the

PARA SIRVILE!!!:D:D:D:D:D

[Kwhite1]

Just my $10.97 Colons worth, could it be, abeit remotley, that the government is kinda tired of the American Gringo and has the mentality that if they insist on continuing to come to OUR paradise, we will exctract every dollar we can from them.

I run onto this consistantly, the latin culture or mentality, is this may be the last chance I may get to take advantage of the gringo so I will get as much as I can, not thinking about tomorrow, next week, or next year.

[Imxploring]

[quote=”Kwhite1″]Just my $10.97 Colons worth, could it be, abeit remotley, that the government is kinda tired of the American Gringo and has the mentality that if they insist on continuing to come to OUR paradise, we will exctract every dollar we can from them.

I run onto this consistantly, the latin culture or mentality, is this may be the last chance I may get to take advantage of the gringo so I will get as much as I can, not thinking about tomorrow, next week, or next year.[/quote]

Since tourism is a major portion of Costa Rica’s economy (and getting larger with the recent loss of Intel and BOA)that would be a very dangerous and foolish pursuit. Not that I disagree… Governments have a way of not thinking out things…. That is any issues beyond their next election cycle! The government of CR better get their act together…. SOON!!!

[Kwhite1]

I chalk it up to gringo pricing on a vast scale. We have all experienced it, be it at the feria, restaurant, car rental, hotel, or where ever. I see it more as I work with locals in the building trade, they will charge 2-3 X’s more because they don’t know if I will be back next week.

I think a large part of the world has adapted this mentality duplicating the US government against it’s own people. I am expecting a visit from the IRS (they have already started hassling me) or Homeland security any day now because of my comments online.

[davidd]

sweikert925

Be careful.. your starting to sound like a capitalist.. free market kind of guy.:wink:

[quote=”sweikert925″]On my way up from the parking garage to the lobby of my office, there is a Starbucks on the right as I get on the escalator and a Dunkin Donuts on the left. If I have a need for caffeine I can choose to visit the Starbucks and pay $6 or the Dunkin Donuts and pay $1.99 for the same amount of coffee. Some people think the Starbucks coffee is worth the extra $4, others (like myself) think it’s nuts to pay 3 times as much for something you can easily get somewhere else. Some day it may happen that the Dunkin Donuts owner may decide to return to Pakistan, in which case there would just be the Starbucks. At that point I may reconsider whether $6 is too much, but I will STILL have a choice – buy the coffee or not buy the coffee.

Costaricabill had the right idea – either you think the price of a meal at an airport is worth it, and you buy it, or you don’t and you don’t.

So the equation is simple for me – either something is worth the money or it isn’t. For others, though, there seems to be another option that they prefer: to pay for the overpriced Starbucks coffee and then forever afterward gripe to anyone within earshot about how outrageous the prices are at Starbucks.

For someone who regularly visits Costa Rica, and even professes to love it but is utterly convinced that the government and people of Costa Rica are engaged in a massive effort to extort every last nickel of his hard earned money – well that seems illogical to me, but I guess it seems reasonable to others. To each his own, I guess.

By the way the same principles apply in the “marketplace of ideas” – competition is good, a monopoly of opinion is bad, and what each of us chooses to “buy” should be up to us individually.[/quote]

[johnnyh]

Excellent thread and replies Scott! I’m wondering how many diputados or ICT officials are aware of this site. Perhaps knowing the reality of what the tourists are experiencing might wake them up. The whole purpose of attracting tourism is to give them an experience beyond coming to a green country, not to soak them on the details. I can see the concessions at the airports bottling Tico Air, and by that I mean Costa Rica oxygen in a bottle for $5.00. 8) Just because you build the resorts doesn’t mean you can soak the rich Gringos.

[sprite]

Tourism is more important now since Intel is closing shop here. It looks like Intel may have been ordered to make a strategic political move of assets to another area:
http://phys.org/news/2014-05-intel-bn-israel.html

[Author]

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