Costa Rican Vacations Employees Exhibit Diverse Reactions to Crisis

It’s a tale as old as time: Americans fold on their mortgages, multinational financing corporations lose millions on risky contracts, jobs are lost, companies go bankrupt, the stock market falls, people lose confidence in the economy, a global economic crisis ensues. The credit dependent population is now impotent as their spending power has been decreased to the level of their income. Perhaps you have heard this one somewhere before? You might also be asking yourself the first question on everybody’s mind: Is the Costa Rica tourism industry going to be okay?!

Well don’t stress too much. As you can see, each company and individual has their own way of reacting to the economic crisis. The reality is that American spending has a long reach, and when it recoils, the world notices. Here in Costa Rica, about 60 percent of incoming tourists are U.S. citizens. With this group taking the direct financial blow, luxuries such as real estate investment and family trips have to be reconsidered. The Chamber of Costa Rica Hotels recently noted a decrease in occupancy between 5% and 50% in respect to the occupancy levels at the same time last year.

At Costa Rican Vacations, a luxury travel agency set in San Jose, survival has not yet come to lay-offs and candlelit offices. The company’s strength comes from their diverse client base (including lots of Europeans, two Iraqis and a handful of Canadians), as well as their pre-established reputation that leads to referrals and repeat vacationers. Alas, the economic downturn has still had its effects, with a more serious look being taken at superfluous expenses and a slightly stressed budgeting staff, but a good sense of humor and strong sense of unity has carried them through.

The crisis can actually be a cause for celebration for those who have maintained a relatively stable financial situation. In tourism, competition occurs on three levels: quality of product and service, marketing outreach and price. The easiest one to drop? the price! With the recent drop in oil prices, airlines have taken the opportunity to get back on the competitive side by lowering prices to record lows for November and December.

In fact, American Airlines (www.aa.com) is currently offering round trip flights to Costa Rica starting at $269 for trips through Sept 26, 2009! Recent flights from Chicago also showed round trip prices hovering around $300, and from Washington, D.C. you can still snag a flight for $360. The proximity of Costa Rica to the United States has generally worked in it’s favor, and when ticket prices cooperate, it’s best to follow the signs and come for a visit!

Hotel prices are also on the decline, generally up through Dec. 15 when the High Season starts up. A well-known group of 4- and 5-star sustainable hotels has also jumped on board to lower prices in the hope of attracting more tourists. The hotels, Punta Islita (rated one of the top 100 destinations in the world — Travel + Leisure, Sept. 2008), El Silencio Lodge, Lapa Rios, Harmony Nosara, Finca Rosa Blanca and Arenas del Mar, are offering packages of five or eight days at a discounted price. The packages would have visitors alternating between one mountain hotel and one beach hotel during their stay.

“We are in times of worldwide crisis and are looking for interesting options for the tourist,” Hans Pfister, President of Cayuga Sustainable Hospitality, which manages three of the hotels, told La Nacion. Tourists should find these deals to be quite interesting, as the hotel group involved includes some of the most luxurious and reputable Hotels in Costa Rica, and the world!

In an attempt to diversify clients, companies have also taken the obvious step toward attracting national tourists to try out the vacation offerings of their own country. The Costa Rican Chamber of Tourism (CANATUR) is currently offering “ChiquiTico” prices for locals thanks to a 35% off discount on select hotels. More information can be found at the CANATUR website: www.cantur.org.

In a world where personal finances are limited or uncertain, the Costa Rican tourism industry has made the intelligent decision to make their products more attainable or to at least assure that the money is well spent. Visitors can expect higher quality of service, more attractive deals and the same amazing destination: Costa Rica. Only this time, you might run into less fellow (or not) Americans.

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Filed under: Business on October 30th, 2008