Rural Tourism is an Additional Money Generator for Rural Agricultural Companies.

Recent reports show that 76 percent of Costa Rica’s exports come from the Greater Metropolitan Area. Cartago, San José, Heredia and Alajuela generate more than $7 billion in exports each year, while all rural regions combined produce only $2 billion in exports. The disparity is attributed to poor ground transportation routes, lack of telecommunications, inefficient use of ocean ports and other infrastructural problems.

Mónica Araya, president of the Chamber of Exporters, explained that this lack of infrastructure has led to few rural exports and fewer jobs in Costa Rica outside the Greater Metropolitan Area. In opposition to many export countries, the majority of Costa Rica’s exports are not generated from areas near the ports; instead, most national exports are generated within the Central Valley. In fact, the Greater Metropolitan Area is home to 1,635 companies that export (including Intel, Costa Rica’s largest exporter), whereas Limón has 194 export companies, most of Alajuela and Sarapiquí have only 99, the Central Pacific has 58 companies that export, the Brunca region has just 23, and the Chorotega section of Guanacaste is home to only 11 such companies.

What separates rural and urban companies is not just their location, but their size. Many of the under-served rural companies are small to medium-sized, often family-run and manned by Costa Ricans. These companies are unable to enjoy the benefits that Central Valley businesses do, which includes 19 of the country’s 20 duty-free zones, better transportation possibilities and superb telecommunications. Recognizing the inequality created by the current state of affairs, Marco Vinicio Ruiz, minister of Foreign Trade, noted that, if this problem is not solved soon, Costa Rica’s future exports will be the domain of just ten to 20 large companies.

To help rural regions increase their exports, Costa Rica must find ways to lower their transportation costs, thus lowering the cost of goods and improving their placement in a world market. According to Araya, cost efficient train service between Limón and San José and Alajuela’s San Carlos and San José could be just the solution. In the Brunca zone, better telecommunications and a Golfito airport are needed to lower costs. In almost every case, long-term, cost effective solutions could be found, helping to lower export costs and improve rural workers’ incomes.

Ruiz emphasized that the burden does not fall on the shoulders of the federal government alone, but on rural business owners and local leaders. He encourages rural companies to fight for their rights and put appropriate pressure on their local representatives, asking for the help and assistance they deserve. In addition, group efforts and coordination are key, and rural businesses are encouraged to pool their ideas together to create positive solutions and other income possibilities.

One possibility for future earnings is rural tourism, a growing field that has captivated the interest of many. Tourists enjoy participating in rural life, working the cattle ranch for a day and simply seeing a more traditional Costa Rica. To supplement their income, rural companies could easily open their industries up to tourists, helping Costa Rica boost its exports and reach its goal of $15 billion in exports (including services) by 2010.

This post's rating:

Related Stories

Filed under: Business on October 20th, 2008