Costa Rica is a country located in Central America that has unlimited tourist potential and is ranked as one of the most visited international destinations. One of Costa Rica’s main sources of income is tourism. Costa Rica is a democratic and peaceful country, and it has not had an army since the year 1949.
Although the country is small and it covers only 0.03 % of the surface of the globe, it proudly shelters a 6% of the existing biodiversity in the entire world. 25.58 % of the country is composed of conservation and natural protected territory.
Costa Rica is also an attractive country for investment and it offers great potential for the establishment of important multinational companies, thanks to the outstanding academic level of its population, as well as the high standard of modern services and social and political stability.
Source: ICT - Costa Rica
Why Guanacaste
According to Stewart Title Costa Rica (STCR), in the first semester of the year 2005 STCR has guaranteed real estate transactions for an approximate value of US$155 million, this amount being equivalent to almost 20% of the total amount guaranteed by STCR since 1997, giving us a good idea of not only the growth seen in the sector but also in the sophistication of the market, translated in the use of title guarantees such as the ones given by STCR. In accordance to our prior statement, 70% of the transactions guaranteed by STCR are related to properties located in the province of Guanacaste, where the vast majority of the tourism related growth is taking place. The growth in this province is mainly due to the consolidation of the Liberia Airport (according to the Costa Rica Tourism Board the Liberia Airport receives more than 45 weekly flights) and the strong development of the northern part of the province, especially the Tamarindo and Papagayo areas. The front runners in this development are the Four Seasons Resort Costa Rica at Peninsula Papagayo, Hotel Paradisus Playa Conchal, Tamarindo Heights and Hacienda Pinilla with their respective real estate developments, among others.
In 2004 Guanacaste totaled 431,000 square meters of new construction, an 88% annual increase to the 229,000 square meters for 2003. Also with a similar growth to that of the tourism sector above mentioned, the central valley has sustained an important growth in commercial, business and residential developments, being witness to an amazing expansion of the mall phenomenon, business complexes and residential developments. In connection to a high growth economy and great investment attraction, the necessity to develop modern business centers, commercial sites attractive to the larger international companies and residential developments to house the growing population and higher income segment, has generated an exponential growth in the real estate sector in order to catch up to the ever growing demand of the past decade.
Growth in construction for 2004 averaged 18.6% with the vast majority of this growth concentrated in the more commercial area found in the central valley, where it averaged 40% for the same period. Construction expenditure for the central valley totaled an estimated US$240 million, representing 35% of the country's total US$675 million estimated for 2004. Real Estate Market Fundamentals Overview Different types of real estate can be purchased in Costa Rica, these types include but are not limited to fee simple, condominiums, concessions in the shoreline zone, and time share ownership.
Why invest
- The local tourism market is growing at a 7.1% annual growth rate.
- Rooms have been expanding at an annual rate of 4.5%.
- More than 1.73 million tourists visit Costa Rica per year.
- 48% of all tourists come from the USA, 16% from Europe and 36% from other countries.
- Great tourist real estate development, including golf courses and marinas
Industry Overview
Costa Rica started developing its tourist activity since 1930, a fact that has significantly marked its direction for several decades. Furthermore, the fact that it possesses an outstanding 6% of world's total biodiversity, the existence of great areas of tropical forests and volcanoes, as well as an affinity to tourists and the ability to quickly travel from coast to coast, has favored it to be one of the preferred ecological and nature hotspots. This magical combination, along with its large sun beach extensions, are earning for the country over $1.63 billion in foreign exchange reserves annually.
Real estate developments have been seen rising from $500,000 to $900 million in value, including golf courses and marinas, while hotel infrastructure investment for 2006 was over $130 million. Among the biggest hotel chains that have established important tourism operations in Costa Rica are Four Seasons, InterContinental, Marriot, Holiday Inn, Best Western, Barceló and Sol Meliá. Employment levels for the industry as a whole are currently estimated at 86,000 people.
Workforce
The Costa Rican tourism industry workforce has the following strategic characteristics:
- Highly qualified human resource availability.
- Bilingual administrative personnel.
- A wide range of architectural, engineering and environmental consultants specialized in hotel development.
- Tourist operation infrastructure
- 97.04% national electricity coverage.
- 99% urban potable water coverage (92% rural).
- 34.3 fixed telephone line per 100 inhabitants.
- 933.63 internet user per 10,000 inhabitants.
- Ports and airports.
- Tourist Incentives
- Universities and technical colleges annually graduate personnel in the different areas required by hotel companies, and offer specialized training in reservations, accounting, countering, maintenance and culinary skills, among many others skills.
"They chose Costa Rica because they consider that it is an upcoming destination for luxury travel, family and honeymoon markets. "It is also a safe country, a land perfect for our business. Costa Rica has a great education system and awareness off ecology. It is without a doubt a very diverse experience...
Jeffrey French
Director of Marketing
Four Seasons
"Since we opened, we have been living opportunities to employees and improve the economy, and our company is doing well too, our business is very successful. The market is exciting and new. Four Seasons has found a great potential in Costa Rica, with its people's hospitality, multilingual education and cultural background. The infrastructure will develop and investors should take advantage with a country that's easy to do business with and has an excellent attitude...
Meredith Tyrell
Travel Industry Sales Manager
Four Seasons
Source: Cinde - Costa Rica