100SD recently performed an updated market study to know the position of Costa Rica as tourist destination. They considered on one hand, the market participants and authorities declaring that the worse of the tourism crisis is over, and we are on the way to recovery; on the other hand,  some hoteliers requesting a declaration of emergency for the industry.

To determine the overall current state of the industry and Costa Rica’s position in the international market (as a world-class destination), they decided to analyse the existing data published by internationally renowned sources. The following are some of the excerpts of the findings of this study:

1) According to the Costa Rican Board of Tourism (ICT), during the first quarter 2011 Costa Rica reached a 7.8% growth in tourism. The statistics show that the only destination in the world that surpassed Costa Rica’s tourism growth (7.8%) was South America.

2) Most analysts who specialized in the subject agree that eco tourism is becoming mainstream, thanks to the growing environmental concerns around the world, which is permeating all levels of society; therefore, eco tourism is becoming (according to the UNWTO) “the fastest growing market in the tourism industry”.

3) The recovery of Costa Rica’s tourism market is not an anomaly, but some analyst predicted that Costa Rica would recover slowly due its dependency on American tourist; the ICT’s efforts in South America and Europe have paid off. Therefore over the last few years the number of European and South American visitors has grown.

4) A key factor in the recovery has been the positioning of the country in the global market, as well as the Costa Rican commitment to sustainable tourism. The ICT’s Sustainable Tourism Program is the key to the long-term growth of Costa Rica. The 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 growth.” This is a permanent program that seeks to promote long-term sustainable growth and development in the travel and tourism industry. As of today the program has certified more than 161 hotels and 54 tour operations that have chosen to adapt their operations to fit a sustainable tourism business model.

5) The work performed by ICT has produced great levels of international recognitions and market positioning, which should help to explain why Costa Rica as a product is different than the rest of its competitors, for instance:

A) International Business Times, ranked Costa Rica first on its list of most popular adventure tourism destinations. 2011.

B) International Business Times, ranked Costa Rica first on its “Top 10” preferred destinations where newly-weds have chosen to spend their honeymoons. 2011.

C) IBTraveler, “Top 10” most beautiful beach destination “Santa Elena.” 2011.

D) IBTraveler, ranked Costa Rica as the second best Yoga Vacation. 2011.

E) Travel advisors at Virtuoso, ranked Costa Rica first on its “Top Ten” list of most popular adventure travel destinations for 2011.

F) TripAdvisor ranked Costa Rica fourth of the “Top 10” most popular family travel destinations for 2011.

G) Eroski Consumer: “Costa Rica ranks third as one of the most ecological countries in the world.”

H) Travel + Leisure declared Costa Rica as Best Place to Visit Solo, 2010: “The country that came out as the safest and happiest in the world turned out to be the place where many Americans came to experience adventure tourism for the first time.”

This market study concludes that:

1. Costa Rica continues to be a strong competitor in the international tourism market, and despite the recent crisis, the country’s image is very positive and attractive for international visitors and investors.

2. UNWTO’s finding “that in recovery years, arrivals tend to pick up faster than receipts”, helps to explain why the country has experienced a very satisfactory growth rate in the number of visitors, but also why tourists are spending less than in the past.

3. While we expect that the number of visitors will continue to grow, local operators will have to wait until the international economy gets better in order to see visitors spend the amount of money (per capita) they did in the past.

These findings confirm that Costa Rica is  on their recovery way, however, there are managers and personnel (of hotels with a great product and tour operators) paralyzed by a situation they never expected to face; an international crisis that revealed the specific weaknesses of many operations. For some, their weakness is related to the cost structure of the operation, for others are related to a dependency on the gains obtained because of the depreciation of the colon against the dollar. The weaknesses for most operators are tied to their marketing strategies, their refusal to certify their sustainable practices, or even their lack of experience in facing a changing market; a market that each day becomes more oriented to sustainable tourism and less attracted to conspicuous consumption and overt luxury.  

It is time to stop being paralyzed by a crisis that is already over, and start taking actions. By implementing tactics and strategies that fit the current market reality, hotels and tour operations can mitigate their weaknesses and discover new opportunities as well as strengths.