Costa Rica Tries to Control Tourism Development

Thirty years ago villages and towns in Mexico, particularly those on the coast such as Cancun, Cozumel and Puerto Villarta became tourist destinations. Following in the footsteps of Acapulco, multinational hotel chains came in from all over the world and the natural landscape was changed forever.

The Caribbean Islands have travelled the same route and have experienced the same kind of growth. Overdevelopment is a term that has often been applied to this rapid growth; however, the countries that have taken this route always justify their decisions.

However, we know for a fact that a country like Mexico has more poor people than it did when the tourist boom started, and since they joined NAFTA with the United States and Canada in 1989, the gap between the rich and the poor is larger than ever, and the tourist industry continues to grow, unabated.

The reasons that a country gives to open its doors to the multinational tourist giants, such as: the Four Seasons, Melia, Holiday Inn, Occidental, Hilton, Radisson and others is that they bring wealth and economic growth to the country. It is true that many jobs are open to the local people in the construction phases, and in the hospitality and service industries that follow.

However, the question is whether the foothold that the tourist giants acquire and the huge profits that that make, is balanced by fair compensation to the countries and the local people. This is not a new question and has been asked many times in the past. However, the result is usually the same: the local people are taken advantage at every turn and are becoming poorer even though they see all the wealth around them.

In Costa Rica, the tourist industry has followed a different path and seems to have avoided many of the pitfalls of mass tourism. The country is known around the world as a destination for “eco tours” and the attention that Costa Rica gives to its natural environment, particularly its abundant national parks are a beacon for the so-called, first world countries.

This is my third visit to this country and although Costa Rica’s economic growth is dependent on its main trading partner, the United States, there are many more differences between these two countries than similarities.

With a few notable exceptions, the big multinational hotels and condominium builders, the fast food chains, the retail giants, the big oil companies, the international banks and communication behemoths, are conspicuous by their absence.

In Playa del Coco, on the Pacific coast in Guanacaste, as a North American, you feel like you have stepped off a time machine into the 1960’s. It’s true that there are a few Internet Cafes, and there was no Internet then, but the look of the main street is basic and simple. The amenities and the businesses are locally owned and operated. You can find what you need without the frills.

The main street runs into the beach that is perhaps mile and a half long and has only one medium sized hotel alongside.

The big boys are not present. One large company, Pacifico, has a beach house for its rather large condominium project currently being built near the centre of the town. The beach house provides access for its condominium owners, and has built a paved road from the town centre to its beach property.

Another large company, Mapache, owns several hundred condo units and apparently had a bit of a monopoly under the former Costa Rican government. Apparently, under the new government of President Arias, that preferred status has been lost.

Here in the residential section of Playa del Coco, every second building has a sign advertising: “Condo for Sale.”
Condo owners bought property 5 years ago for $65,000 and are trying to get $125,000.

It seems like there is a lot of speculation going on here and people are wondering if this community will be transformed into a replica of Veradero or Cancun.

Hopefully, under the watchful eye of President Arias, that won’t happen and Costa Rica will maintain the kind of tourism equilibrium for which it is known.

One of the main challenges for the government is to modernize their tax collection system. That’s why they have purchased the services of an American company at $20 million to capitalize on some of that North American wealth that is pouring into the country.