Costa Rica: Best & Worst of 2008

2008
A Compilation of the Top Costa Rica News Stories from 2008.

2008 was a veritable roller coaster for the entire world with economies, gas prices, stock markets and consumer confidence going up and down erratically. Having ended on a down note, with the U.S. economic woes affecting Costa Rican exports, industry, tourism and construction, there is a lot of space for improvement in the year to come. After analyzing the top stories of the year, Costa Rica Pages has compiled a list of the Best and Worst events, trends and occurrences in the country.

WORST

1. The country’s special brand of bureaucratic stalling led to more than a year-long delay in the implementation of CAFTA, after a national referendum proved the nation’s support of this free trade agreement with the United States and other countries in the region back in 2007. In today’s struggling economy, many companies were denied benefits of this treaty that was finally put into effect on Jan. 1, 2009.

2. Costa Rica was not spared the effects of the world wide economic crisis, which was felt most in the industries of construction, tourism, industrial, and real estate. Thousands of jobs were lost as international companies went under, exports plummeted and inflation caused consumers to rethink luxury purchases. Unprecedented increases in gas, food and electricity prices wreaked further havoc on the nation’s economy.

3. Thanks in part to a documentary produced by Canadian filmaker Rob Stewart, called Sharkwater, light was shed on the devastating effects of shark finning and long lining, performed off the shores of Costa Rica. The attention led to new restrictions and regulations in the commercial fishing industry. Protection of the waters around Isla del Coco was intensified, shark fining was deemed illegal (where the fins are removed and the sharks tossed back into the ocean where they will slowly die) and long lining regulations were put in place. In another accomplishment for sports fishermen, new restrictions were placed on sail fishing to protect the depleting habitat. While marine populations are still susceptible to careless commercial fishing practices, the good news is easy to decipher and hopefully these new regulations will help to reverse some of the devastating effects already experienced beneath the sea.

4. The weather held no sympathy for Costa Rican residents this year, with record rainfall that had not been seen in over 60 years. Tropical storm Alma struck early in the rainy season and caused over $40 million in damages and affected nearly 20,000 people (worse than hurricane Mitch in 1998). The recent flooding in the Caribbean displaced more than 5,000 people and brought tourism in the region to a halt, with year-end occupancy rates around 1% in some areas.

5. Political scandals continued to fill the headlines. The biggest of the year involves Costa Rica’s new alliance with China, which was allegedly influenced by China’s purchase of $300 million in low-interest rate bonds, a form of “checkbook diplomacy” that the country has practiced in the past. Another scandal developed when evidence surfaced supposedly linking Costa Rica government officials to the Colombian Armed Rebel Forces (FARC). The scandal ended in the resigning of Public Security Minister Fernando Berrocal due to discrepancies in the evidence. More recently, the director of the Intelligence and Security Department (DIS), Roberto Soloranzo, stepped down after his second in command was connected to a financial theft ring, which he supplied with personal information accessed by a company password. Finally, the drawn out Fischel-Caja and Alcatel-ICE scandals were repeatedly the focus of news as trials and prosecution continued after public institutes and government officials, including past presidents, accepted bribes from private companies.

6. 2008 saw a 50% increase in environmental infractions in the country, according to the Administrative Environmental Tribunal. This resulted in eight beaches losing their ecological blue flag status, including Jaco, Tamarindo, Nosara and Dominical. Manzanilla beach in Guanacaste also lost its blue flag due to the disturbing “Poopagayo incident”, in which the famed Allegro Papagayo resort was found to be pumping liquid waste directly into a nearby bay. On the positive side, the hotel was dealt with strictly by the government, which imposed a severe limit on hotel occupancy, restricting them to a level their waste treatment plants could manage until they succeeded in updating the facilities.

Thanks to community involvement, other environmental woes will hopefully be righted over time. After unreasonable pollution levels were found in Tamarindo, several hotels and businesses were closed down or fined and the community stepped in to rehabilitate the environment and community. A proposed marina project in Puerto VIejo was shot down thanks to environmental activists looking to preserve the delicate coral reef in the area. The government also began demolitions of homes and businesses that were constructed within the 50 meter maritime zone.

- BEST -

1. Despite the economic downturn rearing its ugly head, with a drop in tourism numbers in October compared with the same period in 2007, Costa Rica managed to bring in a record breaking 2.1 million tourists to the country, a 7% increase from last year overall. This was accentuated by more tourism products jumping into the market including a JW Marriott in Guanacaste, The Springs hotel in Arenal, the luxurious all-inclusive Villa Buena Onda in Playa del Coco, a new marina for Papagayo, and two in progress in Quepos and Playa del Coco. Other hotels made international headlines thanks to their high quality, like the Tabacon Thermal Resort, which received the highest recognition by the esteemed Seven Stars and Stripes. Arenas del Mar and El Silencio Lodge were also listed in the Best Hotels of 2008, while Lapa Rios was deemed one of the top 500 hotels in the world

2. In the music world, Maria Jose Castillo, made a name for Costa Rica and herself in Latin American Idol when she came in second place to a Panamanian. In a country that historically has not exported many pop artists of international acclaim, Castillo returned home a celebrity. Also a highlight for Costa Rica music fans were visits by international bands: Incubus, Iron Maiden, Smashing Pumpkins, Juanes, Duran Duran and Boy George, among others.

3. In a surprising realignment of political ties, Costa Rica jumped into bed with one of the biggest markets in the world, China, thereby dropping ties with Taiwan. The new relationship was taken seriously on both sides and included the purchase of $300 million in low interest bonds by China, plans for a new Chinatown and most notably, a new National stadium to that will seat over 35,000 people in La Sabana park. President Arias also decided to delay a visit from the Dalai Lama in order to streamline a visit by the Chinese President. The two nations are discussing a free trade agreement for 2009.

6. In an attempt to fight claims that Costa Rica is home to some of the worst roads in the world, large investments were put into domestic transportation improvements in 2008. The largest investment was the beginning of a road from San Jose to Orotina which has been slated for completion in Oct. 2009. The new highway would allow drivers to get to the Central Pacific beaches in less than an hour, thus avoiding the current 2 1/2 hour commute. Focusing on capital traffic, the country also issued new driving restrictions based on license plate number to combat the rush hour congestion. To help commuters from Heredia, a new train line was under construction and just recently opened to the public. As a final measure, 2008 also saw the development of the new Transit Law that went into affect over the holidays. The law entails inflated fines for driving infractions, mostly focused on getting drunk drivers off the road. Indeed, the country could use such help as 2008 saw 517 on-site deaths due to traffic accidents, with total accident victims predicted to be much higher.

7. This past year also saw a gradual ‘cleaning up’ of the San Jose city center. As part of an ongoing project by the Municipality of San Jose called ‘San Jose Posible’, the city’s pedestrian walkway was enlarged by several blocks, building facades were improved and municipal police were out in record numbers. To highlight the improvements, the international Cow Parade visited the city for three months. The colorful life-sized bovines were then auctioned off for charity, raising nearly $110,000. Another two-week event brought further charm to the city with the International Art Festival that covered the Sabana Park with nightly concerts and plenty of food and artisan crafts to keep guests entertained for days.

8. One of Costa Rica Pages’ top stories of the year was the completion of our first annual Travel Writing Contest. The 3-month long contest ended when lucky winner, Lauren McCabe was awarded a 6-night vacation to the country, provided by our sponsor, Costa Rican Vacations. As an added freebie, the luxury travel agency also just released a free copy of their signature Costa Rica guidebook called “99 1/2 Things to do in Costa Rica“. Representatives hope to keep the presents coming with the release of a free Costa Rica map early this year.

9. In one of the more heart warming stories of the year, Costa Rican conjoined twins Yurelia and Fiorella were successfully separated in California hospital, despite being given only a 50% chance survival rate. The twins shared a liver and a portion of their heart. The entire operation was covered by charitable organizations in the United States, and the family returned home to an outpouring of support and donations.

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