Six years of hard work have turned us into the company we are today, MerKapro, a consolidated Commercial Real Estate services company in the market of Costa Rica. Such consolidation has thrived us in the venture of new frontiers, in a market that is becoming more demanding and globalized in its needs.
That is why we are proud to announce our new business representation, NAI Global in Costa Rica, under our name NAI Costa Rica.
NAI Global is one of the world's leading providers of commercial real estate services. NAI manages a network with 8,000 professionals and 375 offices in 55 countries worldwide. We bring together people and resources wherever needed to deliver outstanding results for our clients, and complete over $45 billion in transactions annually. Our clients come to us for our deep local knowledge. They build their businesses on the power of our global managed network.
Visit our new office, opening June 2008. Escazú, La Paco Commercial Center, unit #2.
www.naiglobal.com / www.naicostarica.com / www.merkaprodevelopments.com / www.merkapro.com
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Seis años de arduo trabajo nos han hecho lo que hoy somos, MerKapro, una empresa de Servicios Inmobiliarios consolidada en el mercado Costarricense. Esta consolidación nos ha impulsado a buscar nuevas fronteras en un mercado que es cada vez mas Globalizado.
Es por eso que nos complace informarles de nuestra nueva representación de NAI GLOBAL en Costa Rica, bajo nuestro nombre NAI Costa Rica.
NAI Global es una de las organizaciones lideres a nivel Mundial en proveer servicios Inmobiliarios Corporativos. NAI maneja una red con mas de 8,000 profesionales y 375 oficinas en 55 países alrededor del mundo. Unimos equipos de trabajo y recursos para brindar servicios de clase mundial a nuestros clientes, y completar mas de $45 billones en transacciones anualmente. Nuestros clientes vienen a nosotros gracias a un conocimiento profundo del mercado. Ellos desarrollan sus negocios a través de las redes Globales de la organización.
Visite nuetras nuevas oficinas, apertura Junio 2008. Escazú, Centro Comercial La Paco, local #2.
www.naiglobal.com / www.naicostarica.com / www.merkaprodevelopments.com / www.merkapro.com
Ronald Umana
Real Estate Consultant.
+506-2670-1000 (0ffice)
+506-2670-1000 (fax)
+506-8878-9988 (cell)
MerKapro Group
Build on the power of our network.™
www.naiglobal.com
NAI Global is one of the world's leading providers of commercial real estate services. NAI manages a network with 8,000 professionals and 375 offices in 55 countries worldwide. We bring together people and resources wherever needed to deliver outstanding results for our clients, and complete over $45 billion in transactions annually. Our clients come to us for our deep local knowledge. They build their businesses on the power of our global managed network.
Consider the environment -- please think before you print
The $300 million Hyatt Hotel Resort, destined for Brasilito in Guanacaste but delayed for almost 12 months, will formally break ground next week, the developers have said.
A group of 75 people, including a sales force of 35 brokers from both the United States and Canada, will descend upon Brasilito to get a first hand look at the building site.
The Ministers of Tourism, Public Works and Transport, and the Environment and Energy have been invited to attend a lavish ground-breaking ceremony for the $100 million-plus, first phase of the project.
Also in town for just a matter of hours, will be the Australian golfer Greg Norman, who once spent 311 weeks as the world’s number one player, and who has agreed to design the resort’s 18-hole golf course.
“I know there were many doubters but I am here to tell you the project is now going ahead,” said a clearly delighted, Anil Kothari, Chief Executive Officer of New Jersey-based Global Financial Group, which is behind what is to be known as the Hyatt Regency Azulera Resort and Spa.
In brief comments to The Beach Times this week, Mr Kothari, said the project, which was originally expected to break ground in January, 2007, had been held up by financing.
When first announced, with much fanfare by President Oscar Arias in May of 2006, the entire first phase — which includes the 214-room resort, the golf course plus 64 condominiums — was to be funded by four Costa Rican banks.
Now there are three — the Central American Bank for Economic Integration (CABEI), Banco de Costa Rica and Banco Nacional. A $10 million commitment from a fourth bank, Banco Cuscatlan, is understood to have fallen through after the bank was acquired by Citibank in December of 2006.
“The delay was in financing,” Mr Kothari said. “You see, in Costa Rica people don’t move. It takes time, and I was committed to do local financing.”
At the time the idea of a tourist project of this size using solely Costa Rican financing was considered unique, but also more difficult to pull off. Sixty-four condominiums will be built first, and are likely to sell from $700,000 up to $2 million.
Sixty-four condominiums will be built first, and are likely to sell from $700,000 up to $2 million. There are at least 17 sales pending. The hotel is timed to be completed at the same time as the golf course, probably within 18 to 24 months, depending upon weather conditions.
Phase one will be built on 225 hectares (557 acres) just north of the town of Brasilito.
However the entire project, built over five to seven years and including the resort, 100 condominiums, up to 240 villas around the golf course, an unspecified number of single dwelling homes, a spa, gymnasium, six restaurants, a banquet room seating 350, various salt and fresh water swimming pools and a commercial centre, is likely to cost more than $300 million.
The total residential component is likely to be as high as 1000.
Construction on the hotel and golf course is expected to eventually create 2000 to 2500 jobs. Building permits have already been issued, and an environmental impact study is understood to have been approved by the National Technical Secretariat of the Ministry of Environment (SETENA).
The property, made up of two parcels split by the road known as route 155, includes about 155 meters of beachfront, part of which is under concession. The resort itself will occupy 47 acres, which the architects say will be built from wood, natural stone and include pitched roofs.
While a half dozen high-end hotels have announced plans to build along the Guanacaste coast, the Hyatt Regency Azulera Resort and Spa becomes only the second to break ground. Hacienda Pinilla, the sprawling 1,820-hectare beach and golf resort community has done a deal with the El Salvador-based Grupo Poma conglomerate, to build a five-star, 180-room, JW Marriott resort on their property. That is well into construction.
The announcement has been welcomed by tourism and real estate leaders, who in 2007 watched hotel occupancies dwindle and property prices ease.
“This is very good news,” said Cynthia Duran, President of the Costa Rican Global Association of Realtors (CRGAR). “Suddenly this is not just an announcement, it is actually happening, something we can point to.
“Depending upon how they are going to market and sell, it brings more inventory into the region, as well.”
Mauricio Cespedes, Executive Director of the Guanacaste Chamber of Tourism agreed the ground-breaking was a positive move for the region.
“First, and most important, is the number of jobs a hotel project of this kind is going to bring to the region,” Mr Cespedes said. “A number of neighboring communities outside Brasilito are likely to benefit.
“It is also important because it will bring another player into the zone, and that will give us more leverage as a chamber,” he said. Until now we have had Reserva Conchal and Hacienda Pinilla dealing with issues like infrastructure, security and jobs.
“This becomes another big player to bring pressure to bear on the central government for the things the area needs.”
A handful of major hotel projects have been mooted for Guanacaste, but have yet to break ground.
A Ritz Carlton Hotel, along with an 18-hole golf course and a 200-slip marina is slated to go on Zapotal Beach, in the north.
Late last year two Minnesota developers announced they would build a $120 million, 150-room Regent Hotel on Guanacaste’s Papagayo Peninsula.
Steve Case, the founder of the internet giant America Online, announced plans last month to open an $800 million beach resort just south of Playa Hermosa, featuring two boutique hotels.
Meanwhile, Rosewood Hotels and Resorts, confirmed it has signed a management contract with developers HPC Costa Carmel Limitada to manage a new luxury resort to be built upon a 60-hectare (150-acre) property on Playa Guachipelín.
The Beach Times.
EL DIAMANTE ; MATAPALO GUANACASTE
$48,000.000.00
EXCLUSIVE LISTING Unique property located in Matapalo, Guanacaste. North of Flamingo and south of Papagayo, just 30 minutes from the international airport.
With a total area of 281 hectares, the land offers more than 1 mile of ocean front and three different beaches.
Topography is perfect for hotel and residential development, with nice rolling hills, going up to the best ocean view spots of Papagayo and its surrounding areas.
Infrastructure in the property includes roads and terraces. Title is clean, ready to sell and to start master planning.
Location, location, location; that’s what this property is all about.
-It neighbors a 5 star hotel with Golf and Residential development that will start its building phase on 2008.
It is also located:
-15 minutes north from the Future Ritz Carlton (a development that will also include Golf, Houses and Marina).
-15 minutes north from the future Rosewood Hotel.
-30 minutes north from the future Marina of Flamingo.
-25 Minutes south from Steve Case Project (a development that will include a Signature Golf Course, Miraval Resort, One and Only Resort & Villas, and Exclusive Resorts).
-40 minutes south from Four Seasons.
Diamante is one of the few and for sure the best big track of land available in the "GOLD COAST" of Costa Rica.
Property link:
http://www.merkaprodevelopments.com/EL_DIAMANTE_Property/page_1968735.html
Virtual tour link! : http://www.merkaprodevelopments.com/Listing/VirtualTour.ashx?
listingid=1109424
If you are a developer looking to make a one of a kind acquisition Diamante is the site for you...
Below can read more about Costa Rica, and get to know better, why is the best place to invest.
Sincerely,
MerKapro Group.
(C.A. News) — With the goal of helping Guanacaste’s communities benefit more and more directly from the province’s tourist and economic development, the Central American Business Administration Institute (INCAE) kicked off this month the Positioning and Sustainability of Guanacaste’s Tourism Cluster program.
The program seeks to generate a communication channel between the community and private businesses so they mutually benefit.
Cluster in this case refers to a group of businesses located in the same geographical area or conducting similar economic activities.
The initiative involves the creation of a training program, delivered by INCAE professors and alumni, to help Guanacastecans learn skills relevant to the local companies’ workforce requirements — all with the goal of helping them take advantage of the employment opportunities generated by the region’s booming commercial development.
The programs to be offered will provide the option of obtaining an associate’s degree for those in middle management and other levels at local tourism-related businesses, in businesses such as hotels, restaurants, rent-a-cars, crafts and trade.
The intermediate-level programs will be designed by INCAE Business School professors in cooperation with province leaders and will be complemented by other learning activities.
The objective is to create a Development Center that will combine the characteristics of a think-tank and of an applied research center, in topics such as improvement of competitiveness, with high-level training and an agenda for public and private sectors. This Center would also promote the implementation of social and environmental responsibility programs, explained INCAE rector Roberto Artavia.
“We want to develop and maintain a process by which industry leaders get together and analyze in a systematic way the growth and competitive development limitations of their industry,” Artavia said.
According to a survey conducted by INCAE among business people of the region, some of the things that affect Guanacaste’s sustainable development are poor infrastructure, water resources, lack of safety, cost and supply of energy, availability and management of natural resources, as well as the lack of controls by different public institutions.
In a press release, INCAE Business School added that “in Guanacaste, we have a serious problem with regards to trained personnel in middle management. Hotels keep trying to ‘steal’ the scarce human resource available in middle management.”
To confront these issues, the tourism cluster seeks to develop applied research initiatives in the local tourist sector that will serve as tools for public and private leaders to make decisions.
Moreover, the cluster — by setting up an agenda — wishes to pool together efforts by the local private and public sectors, as well as independent and government leaders.
This agenda would lead to determining strategies and concrete actions to be taken to deal with the industry’s limitations to competitive and sustainable development. It would also promote development programs in terms of social and environmental responsibility.
Even though none of the training initiatives have yet started, Rene Castro, coordinator of the cluster, said the group is already working on the schedule and topics of the classes. In a few weeks the location of the trainings will be decided and those interested will be contacted, Castro added.
Already scheduled is a two-day workshop with 30 local industry leaders, which will deal with the process of developing sustainable clusters. Also planned is a four-day seminar titled, “Strengthening local leadership in the process of developing Guanacaste’s tourism cluster,” which will include topics related to competitiveness, sustainability, political analysis, leadership, negotiation and key items for defining an agenda for regional development of the tourism cluster.
In the short term, the project will not have a building of its own, but the talks will be held in a hotel or hall of the area that will be served.
“The initiative targets from people with very low levels of technical knowledge to those in high management jobs,” Castro indicated. “What we are trying to do is help the municipalities and other Guanacaste organizations to get up on the tourism wagon, immerse themselves in the flow of investments and jobs. To do that, they have to get training, in languages, for example.”
More than 10 business, including Punta Islita and Conchal hotels, are taking part in this initiative, in addition to the Guanacaste Chamber of Tourism.
“INCAE is giving the first push, but we hope new initiatives will be born later to help develop this program, such as INA (the National Learning Institute) offering training for technicians and the universities covering other topics,” Castro pointed out.
The cluster will be financed through donations, and publicity for the trainings will be done by e-mail and through visits to universities and businesses in coordination with the province’s mayors.
Tourism is currently one of the most prosperous economic activities in Costa Rica. The industry, which attracts 1.6 million tourists every year, is the main source of foreign revenue for the country. A 2006 study by the Costa Rican Association of Tourism Professionals indicates that tourism generates $1.5 billion and directly employs 120,000 people in areas such as hotels, restaurants and transportation.
The crisis in the US housing and financial markets, already spreading to Germany and Japan, is not expected to have a serious impact in Costa Rica, experts said this week.
Despite concerns with a record number of Americans set to lose their homes to foreclosure and house prices getting lower all the time, the general consensus is those buying in Costa Rica are not likely be greatly affected.
“I am under the impression that the foreign investor that comes to invest here in Costa Rica is precisely that type of investor that already has enough buying power, and has already resolved his housing situation and has come here to have a beach home, or a home in the mountains,” Finance Minister Guillermo Zúñiga told The Beach Times in a phone interview Wednesday.
“That is not the investor that would be affected by this situation.”
Should the current woes compound as far as to “affect the dynamism of the North American economy, and the real economy,” Mr Zuñiga said, “this could have an impact on the demand for our products, and that would have an effect.”
The problem, say economists, began with what are known as sub-prime loans — loans given to people who have poor credit. Many of those loans are adjustable rate, meaning the lender can change the interest rate. As those rates have climbed in recent years, many borrowers have been unable to meet payments, defaulted, and left the banks holding property, rather than money.
The business of repackaging debt to be traded in financial markets has meant the problem has had a wider effect, and the lack of payments has caused a shortage of money in the system, leading to a “credit crunch” and making it hard for some to get loans.
However, Mr Zúñiga says there are no signs that Costa Rica is, or will be hurt by these problems.
“I would not expect changes in what is happening in our country,” he said. “The foundation of our economy is solid, and the financial situation is very solid.”
In the first three months of 2007, mostly American foreign investors and homebuyers bought at least $192 million worth of property, largely in the provinces of Guanacaste and Puntarenas, according to Costa Rica’s Central Bank. That is nearly triple the $70 million registered in the same period in 2006.
Mario Solano, a Central Bank economist that worked on the estimate and tracks foreign investment in Costa Rica, said this week that the bank had not yet studied whether the crisis was affecting the country, but said, “Costa Rica could be affected, but not in the short term.”
The US Embassy also said it had no information on the possible effects in Costa Rica.
“I think the state of the US housing market will have an affect on others, but it has not been felt yet in Costa Rica,” said Ana Saboría, CEO of the Guanacaste tourism development, Reserva Conchal. “I don’t think it will be as radical an affect as in the United States. I don’t think it will reach the point where it is a pricing issue.
“It will probably mean that people will have to go for quality in their buildings, to make sure they can make a difference. If, as a developer, you don’t start with a base, with a large base and a good product, then you might have trouble,” she added.
Cynthia Durán, president of the Costa Rican Global Association of Realtors, said: “Right now, it is difficult to measure how it is affecting Costa Rica, because we are in the low season, and we know that, with the lower tourism that comes in during these months, sales fall.”
“We have been analyzing this a lot, and we have to give it a few months so that we can compare this low season to last year,” she said.
Long-time Guanacaste realtor Les Nunez, who leads regular seminars at the Association of Residents of Costa Rica, said he recently asked an audience if anybody had been affected by the crisis. Nobody said they had.
“The scuttlebutt amongst us area realtors is if its going to effect us we haven’t really seen it yet. Is it going to trickle down? I imagine to some degree,” Mr Nunez said.
“If the thing sneezes we catch cold. But if their market gets decimated, maybe five or ten out of a hundred won’t be able to come down here and do what they want to do.”
Jeff Fisher, of CR Beach Realty in Jacó, said he believed whatever potential buyers are now unable to get financing to come to buy property in Costa Rica would be balanced out.
“The other half will look at Costa Rica as an exciting alternative. They’ve lost optimism about financial gains in the United States and know Costa Rica is booming,” he said.
Mr Fisher wasn’t the only one to say the current situation could possibly bring benefits to Costa Rica. Finance Minister Zúñiga said that if the US Federal Reserve cuts interest rates to help out the market, that could result in lower rates in Costa Rica.
Antonio Echeverría, a Loan Officer with Banco Improsa, and who formerly ran his own Mortgage Broker service, said he believed the slumping market in the United States is already driving US lenders to Costa Rica.
“The housing market in the United States has fallen and financial companies are coming here. It’s not a prediction, it’s a fact,” he said.
Other effects could be that in the Costa Rican economy, interest rates are falling and becoming more and more attractive.
“Banks are offering very low interest rates due to the high volume of real estate and construction in the country. With the arrival of gringo companies, it will be even more competitive,” he said.
With downward pressure on interest rates, and the arrival of more lenders, could Costa Rica eventually tread on the same unstable ground that is sending the US into problems now?
“Because Costa Rica is rising now doesn’t mean it will be that way forever,” Mr Echeverría said. “They have to be very careful not to fall in the trap of basing on adjustable rates. Those are favorable for the banks, but only as long as the debtor can meet the debt.”
FOR many travelers, Costa Rica has become a destination for eco-tourism — that is, vacations intended to celebrate and preserve the natural environment. And over the years, travelers on such trips have come to expect mostly ascetic accommodations after long days of surfing or hiking, typically not much more than a decent bed in a bug-free room with a semiprivate bathroom.
But the options are expanding for those with more discriminating tastes. Breaking ground next summer is Cacique, Costa Rica, an $800 million, 650-acre luxury resort in Guanacaste, on the Pacific Coast of the northern part of the country.
The development will be the first for Revolution Places, a venture created by Stephen M. Case, the co-founder of America Online. And it will have an array of partners including the Agassi/Graf Tennis and Fitness Center, designed by Andre Agassi and Steffi Graf; a golf course by Tom Doak, whose designs are known for naturalist landscaping; 120 coastal hotel villas built by One&Only Resorts; and an additional 120 rooms and 60 villas by Miraval in Tucson. Environmental oversight will come from Philippe Cousteau Jr., grandson of Jacques Cousteau.
“Every one of the partners is putting something important into this,” said Philippe Bourguignon, the vice chairman of the Revolution Places Group, who once served as the chairman of Club Med and EuroDisney. “The good news is, everyone is smart,” he said. “The bad news is, everyone has a strong opinion.”
Having myriad partners is not the only challenge and opportunity for the developer. Cacique (pronounced ka-SEE-kay) will be the first resort to break ground since President Óscar Arias declared Costa Rica a carbon-neutral country in June; the goal is for the country to emit no net greenhouse gases by 2021.
“We are working closely with the government to set a standard for other developments,” Mr. Bourguignon said. “There are a lot of people looking at land and a number of resorts in the planning phase,” including developments by Starwood Hotels and Resorts Worldwide, Rosewood Hotels and Resorts and Regent Hotels and Resorts. All are scheduled to open in 2009 or later.
Scott D. Berman, a principal in the hospitality and leisure consulting group of PricewaterhouseCoopers, noted that dozens of other projects are in the works, many of them upscale. He called Costa Rica’s Guanacaste province — with its beaches, wildlife reserves and volcanoes — “the next hot destination.” He added that “rarely have you heard luxury and eco-tourism in the same breath.”
“You will have luxury accommodations while traveling through one of the most magnificent rainforests in the world,” said Mr. Berman, who has been working in Costa Rica for 20 years. “It’s the closest you can get to a safari experience in the Americas.”
To help maintain that safari experience and to meet the government’s carbon-neutral challenge, Revolution Places decided to considerably reduce the development footprint on the site, which juts out into the Pacific Ocean and had once been a cattle ranch. The area was zoned 10 years ago for seven hotels with up to 2,000 rooms; Cacique will cover about 20 percent of the landscape.
The goal is to lower energy consumption by 40 percent from that of a typical project of its size. At the same time, the developer has a reforestation and revegetation project to repair damage done to parts of the site during its previous use as a cattle ranch. The work will include planting a million trees along the Tempisque River. Revolution Places also intends to work with a local government to improve the handling of solid waste, and to start shared transportation systems for guests, residents and employees to minimize traffic and vehicle emissions.
“We have a commitment to being a responsible citizen,” said Mr. Cousteau, who in 2000 was a co-founder of EarthEcho International, a nonprofit environmental organization based in Washington. “What we do in terms of social conservation is just as important as environmental conservation.”
Mr. Cousteau, who is also a correspondent for “Animal Planet” on the Discovery Channel, says Revolution Places intends to create a fund to help local business owners and crafts makers and to donate computers to schools in the region.
“People are looking for something other than sitting on a beach somewhere,” Mr. Cousteau said, “and they want to stay somewhere that’s not exploiting the people and the area.”
Of course, doing good does not preclude one from living well. At the very tip of the peninsula will be the 120 villas developed by One&Only, a five-year-old ultraluxury brand by Kerzner International. The site will be the eighth One&Only project; its developments are currently found in places from Dubai to the African island nation of Mauritius to San José del Cabo, Mexico. There are plans to expand further in Africa, to Zanzibar and to Cape Town, South Africa.
With access to the Pacific Ocean, the typical villa will have 800 square feet of space and include a 300-square-foot deck and a private pool. Rents start at more than $1,000 a night.
Paul Jones, the president of One&Only Resorts, said of the terrain: “There are some pretty steep contours, which makes for a difficult planning process, but the difficulty brings with it a lot of drama. As you enter, you will arrive into the high point, about 85 meters above sea level, and in that building we will have a restaurant and a bar that projects out into the forest with commanding views through the trees out onto the ocean.”
In addition to offering spa and fitness amenities, Mr. Jones said, “we believe in infusing life and energy into our properties, so there will be opportunity for activity on the site day and night.”
“If someone wants to switch off and do nothing that is certainly possible,” he added. “But we believe in active fun.”
On the more inland side of the peninsula will be Miraval’s portion of the project, with 120 hotel rooms and 60 villas. Its mission is more geared toward the health and wellness traveler. John Vanderslice, the chief executive of Miraval, said his resort would offer 150 different programs, like yoga and meditation, fitness and conditioning and arts and crafts. “This is for the luxury traveler who is seeking an experiential vacation,” he said.
In the middle of the peninsula, meanwhile, will be a small village of mixed-use buildings, with 100,000 square feet of retail space and 55 residential units above the shops, an amphitheater and other public spaces, open to Cacique visitors and residents (for-sale lots are also part of the development), as well as local residents.
“There are a lot of walled-off resorts in the world,” Mr. Case said. “There is a better way. What we’re doing here is taking the best property in the hottest market, and designing a resort community that integrates with the neighboring communities in an environmentally sustainable way. That is the future standard of luxury resorts.”
The slow real estate markets in the US have brought many new financing options to Costa Rica. US and other foreign investors are now able to qualify for mortgages from major banks such as HSBC, Citicorp and Scotia Bank with rates from the low 8% range with 20% down. This compares to loans three years ago in the 13% range with 50% required down payment. The lending industry in Costa Rica is making the Costa Rican real estate market more accessible to foreigners and making buying property here relatively painless. Most bank loans require title insurance policies from Stewart Title, Chicago Title or Land America, all operating and insuring real estate in Costa Rica.
Also, we have noticed an increase in real estate investors from Canada and Europe due to the high Canadian Dollar and Euro vs the US Dollar, making thier purchasing power worth up to 20% more than in recent years.
Finally, investors continue to purchase in Costa Rica due to the appreciating market, improving infrastructure, vacation rental market and beginning trend of retiring baby boomers coming to Costa Rica. The market conditions are in good shape and Costa Rica is one of the strongest real estate markets in the world.
Real estate in Costa Rica continues to grow. Foreign investment is up from approximately $70 million during the first quarter of 2006 to over $160 million in the first three months of 2007.
Large investors like Bill Gates, Warren Buffet, Mel Gibson and Steve Case are now investing in real estate in Costa Rica. Bill Gates and Warren Buffet are involved with the high end hotel chain Four Seasons, Mel Gibson has purchased a large parcel and is planning a movie studio and Steve Case has teamed with Andre Agassi and Steffi Graf to build / develop a large sports based resort. Other companies like St Regis, JW Marriott, Wyndham Hotels, Ramada and Marriott have already been announced and / or are under construction.
The big name investors, developers and corporations have waited patiently on the sidelines for the market to be established and are now moving into Costa Rica. The masses have not yet arrived, but every day more and more are learning about what makes Costa Rica a popular tropical destination for tourists, 2nd Home Owners and Retirees alike. If you have been thinking about coming to Costa Rica to research property, now is the time to take action as Costa Rica is poised to grow for years to come.
Liberia’s Daniel Oduber International Airport welcomed 16.31 percent more tourists from January to September of this year than during the same period in 2006 — a significant growth for the country’s second international airport, which is awaiting expansion works scheduled for 2009.
While during the first 9 months of 2006 the Liberia terminal received 278,106 tourists, this year the number grew to 323,463 visitors in the first three quarters.
This data came from the National Chamber of Tourism (CANATUR), whose estimates also show an increase in the number of tourists coming to Costa Rica through the country’s main airport, Juan Santamaria in Alajuela, west of San Jose. The total number of tourists coming here via air — which represents 78 percent of total visitors to the country — also increased during this period.
In the case of Juan Santamaria, the above-mentioned increase in visitors was 9.6 percent. Though the hike was lower than Liberia’s, the data shows a more dynamic performance at Juan Santamaria, which is currently undergoing a process of expansion that has faced multiple obstacles due to differences between the Civil Aviation Technical Council (CTAC) and the airport’s concessionaire, Alterra Partners.
Overall, tourist traffic through both airports increased by 11.3 percent during the first three quarters of 2007, reaching 1,216,345 visitors — 123,533 more than during the same period last year.
Even though these figures are not official, but CANATUR estimates based on the number of arrivals reported by both international airports, they are a good indication of the tourism industry’s behavior and the constant expansion of Costa Rica as a tourist and business destination.
According to the CANATUR study, the months of January, February, March and July saw the highest number of visits.
CANATUR President Gonzalo Vargas said the behavior of the travel sector is satisfactory, especially when considering that the high tourist season — from December to April — hasn’t even begun.
“This growth demonstrates that team work between the Costa Rican Tourism Institute and the private sector yields excellent fruits, and that we must continue working jointly to maintain such a positive trend, Vargas said.
Vargas added that this year’s visitor boost has surpassed expectations outlined in the National Development Plan promoted by the current government, which set a goal of 5 percent increase in the number of tourists choosing Costa Rica for their trips.
China has proposed a petroleum exploration project in Costa Rica as part of a bilateral alliance in the area of fuels recently announced by the new diplomatic and trade partners. The state-owned China National Petroleum Corporation (CNPC), second largest in the world, will conduct preliminary geologic studies to determine the viability of finding oil on Costa Rican soil.
Despite the plan, the issue of oil exploration in Costa Rica is still on ice, as the country resolves its legal bout with U.S. oil firm Harken, which had attempted to exploit this resource here before but was refused the corresponding permits by the Costa Rican government. Costa Rican Petroleum Refinery (RECOPE) President Jose Leon Desanti indicated that the Chinese would only explore oil here if there economic, social and environmental viability. Potential petroleum-yielding regions, according to several studies conducted over the decades, are Limon and San Carlos.
A total of 33 companies were recognized by tourism authorities for implementing operational and labor practices that are friendly to the environment and their communities’ social development.
These firms, including hotels and travel agencies, were awarded the Tourism Sustainability Certificate (CST), a recognition given by the Costa Rican Tourism Institute (ICT) to those companies whose operational model emphasizes harmony with nature, resource conservation, and cooperation with the cultural, social and economic development of the communities where they are based.
The award was presented to 25 hotels and eight travel agencies. Among them were the Four Seasons, Ocotal Beach Resort, Best Western Jaco Beach and Hacienda Punta Islita hotels.
CST is part of the Tourism Sustainability Program promoted by ICT since 1999, and whose goal is to encourage businesses to implement measures that will allow for this industry’s sustainable growth, guaranteeing good services and less impact on the environment as well as the generation of employment and education among communities.
The entity in charge of evaluating tourism businesses for the award is an inter-institutional accreditation commission made up by representatives from organizations such as ICT, the National Chamber of Tourism (CANATUR), the University of Costa Rica (UCR) and other entities from the public and private sectors.
Alberto Lopez, CANATUR executive director, said the fact that so many companies received the award this year shows that the country’s bet on sustainable tourism is yielding fruits.
Lopez called on tourism businesses to continue keeping sustainability a key component of their operations, as a tool to differentiate themselves, and as a commitment with the environment and their communities.
Meanwhile, Tourism Minister Carlos Ricardo Benavides pointed out that in addition to the new awardees receiving the CST, firms that were already certified increased their scores — which allowed them to boost their quality standards and become more competitive in the sector.
“When our tourists see the quality seal with the ‘leaf’ (proof that a company is certified by the CST program), they understand that they will find a business that reduces emissions, pollution and impact; that carries out actions for the conservation and adequate use of natural resources when handling its waste; and that utilizes biodegradable and recyclable products,” Benavides said.
There are now 92 businesses accredited by the CST program. Those that still don’t have such certification and wish to obtain it must meet 108 guidelines, in areas related to the physical-biological environment of the place where they carry out their business activities.
These guidelines include the implementation of practices such as saving water and electricity, creating emergency plans, offering sustainable services, and providing tourists with the opportunity to get involved in those sustainable development practices.
In addition to the recent awarding of certificates, ICT announced that it will hire UCR to take charge of training those who evaluate companies in the CST program.
The goal of this effort is to provide the program with tools to make it more efficient and competitive when processing new applications from companies that wish to obtain the CST.
The UCR will design training modules and their academic content for professionals from different disciplines, allowing for the education of new program evaluators at the postgraduate level.
The ICT will retain the rights over these products, as well as authority over the certification program and monitoring, auditing and research functions within the program.
Almost 95 percent of the tourists who visited Costa Rica during the second semester of 2006 said they were satisfied with their stay in the country, according to a study recently released by the National Chamber of Tourism (CANATUR).
The study — conducted by firm EYMSA and commissioned by the Costa Rican Tourism Institute (ICT) — is part of the state tourism board’s ongoing marketing research efforts seeking to determine the level of satisfaction of visitors and which aspects of their trip they like most and least.
The study compared the perception of tourists in the second semester of 2005 and the same period last year, in an effort to reveal advances or setbacks between the two years.
ICT began implementing this type of focused research in 2005, although the board had been conducting regular surveys at airports before that to gather information about the tourists coming to Costa Rica.
While in the second semester of 2005 93.4 percent of tourists indicated they were satisfied with their stay, the number went up to 94.8 in the same period last year.
According to Alberto Lopez, executive director of CANATUR, the study’s objective was to generate an indicator for measuring visitor satisfaction and determining which aspects are critical in the delivery of tourist services, as well as to learn how likely it is that these visitors will recommend Costa Rica as a travel destination.
“It’s about measuring to which degree the tourists’ expectations were met by examining their perceptions about their visit,” Lopez explained.
Aspects evaluated in the study include accessibility, food, biodiversity, roads, weather, personality of Costa Ricans, hotels, telephones, Internet access, prices and security.
According to the results shared by ICT, things tourists were the most satisfied with included the kindness of the people, adventures and the possibility to enjoy and relax during their vacation. These items received a better score in 2006 than in 2005.
“I think the best thing about Costa Rica is its people; there’s always a kind person willing to help you, and Ticos are very happy people. The landscapes are also beautiful,” American tourist Anna Leighton said.
In 2006, 31.4 percent of respondents expressed they were satisfied with “the good treatment from people, their kindness and attention”; 23.7 percent said they “liked everything”; and 20.3 percent indicated they liked their experience because Costa Rica is a “beautiful, interesting and comfortable country.”
But not all opinions are rosy. Some aspects of the country received a negative evaluation both years, including infrastructure, security and prices.
The top generators in dissatisfaction among visitors were citizen insecurity (23.8 percent) and the bad condition of the roads (14.3 percent).
“We liked our visit a lot, though the problem of insecurity is a bit worrisome, hotel theft and assaults on tourists. We had a good time, but that’s something that should be taken into consideration, same as the roads, which in some parts were in really bad shape,” said Jeanne Duron, a French tourist who spent three weeks here.
High prices were also mentioned as a reason for dissatisfaction by more people in 2006 than in 2005. According to 23.8 of those surveyed, some businesses take advantage of tourists by charging more than the regular prices.
Lopez said that in the case of both prices and security, negative perception increased, reason for which special attention must be paid to both issues.
“It’s important to take into account the comments from those who visit us. Even though their perception improved during the period of the study, the number of tourists who said they didn’t feel secure doubled, as well as the number of visitors who believed the country was expensive; and 15 percent of those surveyed said there are too many tourists in the country,” Lopez said.
But even when factoring those negative perceptions, general dissatisfaction decreased from 6.6 percent in 2005 to 5.2 in 2006.
CANATUR’s director added that the fact that a relatively high percentage of respondents (14.1 percent in 2006 compared to 1 percent in 2005) thought the high number of tourists generates dissatisfaction is an interesting factor to consider as the country determines what kind of tourism it is promoting.
“These results are very interesting, as they tell use that there is a segment of tourists that possibly wants more preferential and exclusive treatment in a tourist market they see as saturated. It’s the profile of a tourist with higher buying power, who most likely would pay more to go to a place where he or she can receive more personalized attention,” Lopez pointed out.
The study was based on a sample of 100 interviews per country of origin according to expectations, with 100 additional interviews according to perceptions. Interviewed were foreigners who visited Costa Rica for pleasure during the second semester of 2006, and who had not visited the country before. Target markets included the United States, Canada, Mexico, Spain, France and England.
Lopez reiterated that the comments gathered from tourists are extremely important for the country’s tourism industry, as they point to deficiencies that must be corrected in an effort to improve Costa Rica’s tourism products.
“The goal is to maintain Costa Rica as a mature, quality tourist destination, that is, one that has gone through all necessary stages to become consolidated as a travel destination about which tourists already have an idea of what they can expect to find,” Lopez said.
According to industry estimates, some 950,000 tourists will come to Costa Rica during the upcoming high travel season (December to April), while the visitor growth rate for 2008 will remain at 10 percent.
This year, authorities expect that a little over 1 million tourists will pick Costa Rica for their vacation.
Sport and recreational fishing have become specialized tourism activities in Costa Rica, attracting every year hundreds of people who hope to have a wonderful adventure aboard a fishing boat, coming back with a great catch and memories of breathtaking ocean views.
Today there are numerous tour operators and small tourism companies that offer sport fishing trips for all predilections and budgets.
Albani Villegas, a small Playa Hermosa business owner, is one of them.
After so many days of rain in Guanacaste, we decided to give fishing a try and went to this experienced fisherman to hitch a ride through the tranquil and clear waters of the Gulf of Papagayo.
The trip began at 7:30 a.m., at the southernmost corner of Playa Hermosa Bay, where we got on a boat along with Albani, his helpers and two American tourists who joined the trip: Ken Buck and his wife, Elaine Callinan.
It was a sunny and warm morning. It seemed to be a great day for fishing.
Fishing can be as simple as casting a hook tied to a fishing line and rod. However, there is an art to it. A bit of strategy, mixed with some luck, are the key elements that determine who will win the battle: man or fish.
In these waters one can find species such as jack crevalle, tuna, snapper, mahi-mahi or corvina. If you are luckier, you could capture a giant roosterfish or a sailfish, but you need to go deeper into the ocean to do that, as our guide told us.
There are different fishing techniques, depending on the type of fish you wish to catch. Some live in shallow waters, while others stay in deeper water and it’s harder to capture them.
The first thing you need to do is sail for a while in search of small fish called bonitos, which work great as live bait to catch bigger fish. Finding bonitos took us about 20 minutes. The Bay of Culebra was the perfect spot to find our bait.
Albani explained that one technique is “trolling” using live bait, which consists in throwing the bait in the water while the boat is in motion. This technique is good for catching fish such as rooster, mahi-mahi, guabo and mackerel. Trolling can also be done with artificial bait, such as “fish foolers.”
There’s also the technique of “bottom fishing”, which consists in attaching a weight to the line so that it is carried toward the bottom of the ocean where it can catch species that live in deeper waters. This type of fishing is done while the boat is anchored. Fish such as snappers can be caught through bottom fishing.
But of course, fishing was not the only fun activity in our trip. The boat ride took us to several destinations located from the north of Playas del Coco to the borders of the Santa Rosa National Park, sailing past Bay of Culebra and the Gulf of Papagayo.
Among the places we visited were Playa Tuneles, Palmares Bay, Pelonas Islands and the Monkey Head islet.
The entire trip took five hours.
Even though it appeared to be a good day for fishing, our catch was modest. “It’s a matter of luck,” Albani consoled us.
Nonetheless, Ken and Elaine managed to catch two jack fish weighing 10 pounds each. Their satisfaction was evident.
“I’m very happy. Fishing is one of the things I like the most. I would love to live here and go fishing every day,” Ken said with a smile.
Elaine agreed.
“I love the sun and enjoy this paradise. Costa Rica is a very beautiful country,” said the Delaware native.
We returned to the same spot from where we started our trip. As a reward for our effort and all the sun we received, the skillful cooks of the restaurant Albani manages fixed us some delicious fish fillets — our catch of the day — and some rice, potatoes and salad.
Give fishing a try. Costa Rica’s waters have many hidden treasures waiting to be discovered.
It’s a fact that baby boomers in their early 40s continue to spend more money than any other generation. This is particularly interesting as it pertains to the Gold Coast, where many North Americans nearing their prime years, end up vacationing around here as a way to enjoy eco-travel, sports, relaxation and the exploration of the Latin culture.
After a few days of enjoyment, many tinker with the idea of investing in a second home to use for future vacations and as an income producer between personal trips.
The temptation to invest in a rental producer in a tourism destination is hard to resist, especially when the facts of the benefits are explained by qualified professionals.
There are many varieties of purchases available, but the most common, and the one that would generate the best return on your investment are condominiums. There are many reasons for that:
1) Condos have become popular as the perfect alternative to a classic hotel room and offers more intimacy, liberty, as well as the sensation of “being in a home away from home.”
2) On internet search engines, “Condos For Rent” is the most-sought-after entry, simply because the prices are very affordable (especially when the rental price for a 2- or 3-bedroom unit can be shared between two or three couples).
3) Condominium communities generally offer good security, with spacious common areas and several amenities including, but limited to, property management, pools, tropical gardens, kids’ playgrounds, tennis, trails, laundry facilities, tourism or concierge services, etc. etc. but also security guards, laundry, tours,
4) Lastly, condos are easier to resell than a home, and typically are sold at a much higher value than the original purchase price. Remember that when you sell a rental condo, not only are you selling a piece of real estate, but also an income producer.
Furthermore, there are many ways to plan your investment in a rental income producer in the Gold Coast area. The simplest way is to get your feet wet by investing in a nice, comfortable unit located in a project offering spacious common areas. Or, you might consider investing in pre-sales stage in order to minimize your initial investment and maximize your potential profit in the future. Ordinarily, the price at pre-sales is lower than when construction begins, and at that point the value of the property increases.
You can also create a Real Estate Investment Trust (REIT) along with some friends or family. This permits you to invest in several rental income producers at once, allowing maximum rental income while creating a solid, dynamic portfolio.
The more conservative approach in investing would be to buy a unit, then immediately put it on the market as a long-term rental. This results in lower income for your pocket, but is a more secure, long-term strategy oriented toward profit that will eventually be generated on resale. This path is excellent, if you are a young couple with children, with plans to create a college fund for their future, for example.
To accomplish any of the aforementioned goals, you might decide to use a local source of financing in order to secure your investment in one of the various rental income producers in our area. This is a viable option, with many local alternatives and in the United States as well, including utilizing an Individual Retirement Account (IRA). An IRA is one of several specific retirement accounts allowed by the IRS to provide tax-deferral or other tax advantages, in order to purchase real estate in Costa Rica.
If you are interested in getting started with your investment and would like to get more information and documentation about the best rental producers available in Guanacaste and the Gold Coast, as well as property management companies, and the financing available to make a purchase, please contact our office today. Our agents will give you a general overview of the local market, help you define your strategy, and plan your custom designed investment exactly to your needs and resources
After several months of torrential rains and a bit of cold in Costa Rica, the sun is finally beginning to show its countenance with some frequency. December’s warm days, multicolor sunsets and fresh freeze are getting closer by the day, and with them the high tourism season is beginning to rev its engine.
November is the beginning of what meteorologists call “transition time,” that is, the period in which the rainy season gives way to the dry season — or verano (summer), as Costa Ricans prefer to call it. That’s why it will be a more frequent occurrence to enjoy warmer days beginning this month, more sun and less rain, although there will be a few downpours here and there through December.
According to the National Meteorological Institute (IMN), November also ushers in a period of “cold fronts” in these latitudes, marking the beginning of a new season in the Central Valley and the Pacific.
However, the Northern Zone and the Caribbean actually face the beginning of a particularly rainy season around this time, as the Caribbean Sea’s influence over these regions makes their weather different from that in other parts of the country.
The arrival of the dry season also coincides with the beginning of the so-called high season in tourism. This high season — from December 2007 to April 2008 — Costa Rica is expecting some 940,000 tourists, according to the National Chamber of Tourism.
The last weeks in December, especially, bring the largest volume of visitors, to the point that beach hotels have had every last room reserved for that period since months ago.
According to Ana Gabriela Alfaro, vice president of the Costa Rican Chamber of Hotels (CCH), such behavior is common, as the increase in national tourism and international tourism coincide during the holiday period. This time of the year, travelers prefer the beach over the mountain, reason why Guanacaste, the Central Pacific and the Caribbean are the most sought-after vacation spots.
The CCH is currently preparing a hotel capacity study to figure out how many hotel rooms are available and how many more are needed, according to geographic regions.
According to official estimates conducted by the Costa Rican Tourism Institute (ICT), the supply of rooms is insufficient in some regions, such as Guanacaste, due to the growth this province is experiencing and its increasing popularity as a tourist destination, which means more demand for rooms. The shortage of rooms in the region, from December to April, is estimated at 3,000. ICT has indicated such number of rooms should be available within two years, according to calculations.
Other regions in Costa Rica don’t have this problem, but the tourism industry in general is preparing to deal with what will apparently be a very profitable high season this year.
Mauricio Cespedes, executive director of the Guanacaste Chamber of Tourism, said that in general terms hotels have indicated they feel prepared to handle the influx of tourists soon to arrive, and actually believe that the transition between seasons won’t be as abrupt because the current low season has been rather good.
“There are actually a lot of expectations as to what the high season will be like, since the low season this year was better than in previous years. And because of the behavior the airports in Costa Rica have been showing, receiving more tourists than the previous month each time, everything seems to point to a 2007-08 high season that will be better than last year’s,” Cespedes said.
In addition to hotels, airlines are also preparing for the high season by offering more flights, at both the Juan Santamaria (San Jose) and Daniel Oduber (Liberia) international airports.
One of the growing concerns within the tourism sector is, precisely, airport infrastructure, which every day becomes more insufficient as the tide of visitors grows.
According to Tourism Minister Carlos Ricardo Benavides, the airports’ current capacity is “just enough” to deal with the number of tourists expected to arrive this high season, but the stalling of expansion works at the Juan Santamaria airport could spell trouble in coming years.
Tourism authorities are estimating that 2007 will close with a record number of tourists coming to Costa Rica: 1.9 million. And for 2008, the number is expected to reach the 2 million mark, as many commercial and charter airlines are showing interests in starting flying here.
Benavides insisted that in order to achieve an increase in the number of tourists who visit Costa Rica, existing tourism investments must be supported and other investors must be attracted, speeding up paperwork and permits procedures. In addition, initiatives must be promoted to finance tourism promotion and marketing.
This, plus the bad condition of the country’s roads, are two of the greatest challenges facing the country’s tourism sector as Costa Rica seeks to consolidate as a travel destination.
Road infrastructure is one of the issues where both tourism officials and those with the Ministry of Transportation and Public Infrastructure (MOPT) must work together at the national level, and especially in Guanacaste — as a good percentage of cantonal and national roads, as well as bridges, were affected during the October floods.
It is estimated that last month’s heavy rains damaged some 200 km of paved and 3,370 km of gravel roads in Costa Rica, 90 percent of them in Guanacaste.
Citizen security is another issue of attention, as many residents and tourists are perceiving an increase in delinquency in Costa Rica in the past few years.
Cespedes indicated that there are many efforts underway by businesses and the Police Force in terms of safety, and reminded tourists that during the high season they should be more cautions, as the large number of visitors makes it harder for authorities to deal with all cases.
“Our role here is to inform visitors, give them tips so that their stay in the country is positive, as many tourists are sometimes naïve. We are working on this with rent-a-cars and other sector businesses. We are not saying that the situation during the high season is chaotic, but we are reinforcing the idea that tourists must pay close attention to their belongings, or otherwise they could run into a bad experience,” Cespedes pointed out.
This year, the National Chamber of Tourism reported an 11 percent increase in the arrival of tourists over 2006. The average visitor is between 35 and 65 years old, has a college education and seeks exclusive services. Most of them come from the United States and Europe.
Tourism is the highest generator of foreign currency in Costa Rica, with more than $1.6 billion annually, which represents 8 percent of the country’s Gross Domestic Product (GDP).
Delta Airlines and Continental Airlines have received recognitions by the National Chamber of Tourism (CANATUR), which recently awarded the best tourism sector business and businessmen in Costa Rica this year.
Delta received the “Robert Smith” Merit Award, in the airline category, while Continental’s general manager, Salvador Marrero, was given the “Jose Miguel Castro Echeverria” Merit Award, for tourism businessman of the year.
Delta was recognized for having served Costa Rica during the past 10 years and having been a pioneer at Liberia’s Daniel Oduber International Airport, becoming the first major carrier to offer direct international flights to that terminal.
Miguel Lopez, Delta’s regional sales manager for the Caribbean and Central America, received the award, emphasizing that the airline has placed great trust in Costa Rica. He said proof of that is the decade Delta has already been operating here and the fact that Costa Rica is the country with the most frequent Delta flights in Central America and third at the Latin American level.
Continental recently received another award by international magazine Latin Business, which rated the carrier among the 16 most successful companies in the region for the corporate diversity policies it encourages.
In addition to these two airlines, CANATUR also presented awards to the best companies in areas such as hotels, tour operators, travel agencies, rent-a-cars, restaurants, travel journalism, and regional chambers of tourism.
Criteria considered for awarding the distinctions included legality of operations by the company, the number of years it has operated in Costa Rica, efforts shown to attain environmental sustainability certificates or other quality standards (Ecological Bl