OECD Tourism Trends and Policies 2018

Costa Rica

Tourism in the economy

Tourism makes a significant contribution to the Costa Rican economy. In 2016, there were 3.1 million inbound arrivals, of which 2.9 million were overnight visitors. Foreign exchange due to tourism as a proportion of the country’s GDP, stood at 6.4%, while tourism accounted for 46% of the services exports and around 37% of total exports.

The tourism sector is expected to grow at an average of 6% over the period 2017-2021. Over the same period, the International Monetary Fund estimates that the Costa Rican economy as a whole will grow at an average of 3.9% per year.

By far the largest source market for overnight visitors in 2016 was the United States (42.2%), followed by central America (24.8%), Europe (14.9%), and Canada (6.4%). The wide range of activities available has had a positive impact on the average length of stay, which is expected to remain between 11 and 13 nights. In 2016 there were 35.4 million nights spent in all means of accommodation, a rise of nearly 60% since 2010.

In 2016, the tourism sector generated 149 000 direct jobs, representing 7.2% of total employment. When considering direct and indirect jobs, this figure is estimated to reach 450 000, or 28% of total employment.

Tourism governance and funding

The Costa Rican Tourism Board (Instituto Costarricense de Turismo – ICT) is responsible for tourism policy in Costa Rica and is mandated by law to promote Costa Rica as a tourism destination, to foster the construction of tourist infrastructure and to monitor the quality of the visitor experience.

A coordination body for the tourism sector, chaired by the Minister of Tourism, brings together a wide range of institutions. These include the Costa Rican Tourism Board; the Ministry of Economy, Industry and Commerce; the Ministry of Health, the Ministry of Transport; Ministry of Environment and Energy; Ministry of Culture, Interior Ministry; Costa Rican Institute of Ports of the Pacific; Board of the Atlantic Port Administration; National Institute of Learning; National Institute of Housing and Urbanism, National Institute of Aqueducts and Sewers; National Institute of Electricity; National Geographic Institute; and the National Institute of Rural Development.

There are no institutions at the regional or local level with direct responsibilities for tourism. However, ICT maintains close co-operation with local government, notably through a specific mandate regarding management of the cantons.

The ICT budget for 2016 was approximately USD 69 million, including the cost of construction of a new Convention Centre. Tax revenues provide 97.6% of the funding, while the remaining 2.4% comes from interest on investments, concessions and property rentals, and other minor non-tax income. Tax revenues come from two sources:

• A flat rate entry tax of USD 15, which must be paid by any person who enters the country with a ticket purchased abroad. This contributes 55.5% of the total budget (Law No. 8694),

• A 5% tax on tickets sold in Costa Rica for any kind of international travel (Law No. 1917) and a 5% tax on tickets where the route originates in Costa Rica (Law No. 8694), contributing 25% and 17.1% to the total budget respectively.

Costa Rica: Organisational chart of tourism bodies

Source: OECD, adapted from the Ministry of Tourism, 2018.

Tourism policies and programmes

A number of issues and challenges are shaping tourism priorities in Costa Rica, including the need to:

• Strengthen and develop new programs to promote differentiation, required to secure competitive advantage,

• Foster participation of more companies and services with the aim of enhancing the authenticity of the tourist experience,

• Innovate and add new products targeting high demand market segments,

• Improve the overall safety of tourists,

• Prevent tourist saturation,

• Improve the quality of services offered,

• Invest in infrastructure and equipment,

• Increase investment in marketing,

• Develop a regulatory policy framework for the sector,

• Help small-business owners to develop more efficient commercial management strategies.

Tourism policy, in line with the overall development path of Costa Rica and the Sustainable Development Goals, is built around three axes: sustainability, innovation and inclusion. These axes underpin the Tourism Development Plan prepared by ICT in 2017, Plan de Desarrollo turístico de Costa Rica 2017-2021.

In pursuit of sustainability, the Plan seeks to:

• Guarantee efficient use of environmental resources,

• Preserve the socio-cultural authenticity of host communities, cultural heritage and traditional values and promote a fair co-existence between tourism companies and host communities,

• Guarantee a high level of satisfaction among tourists based on authentic experiences, while raising awareness on the issue of sustainability.

In pursuit of innovation, the Plan seeks to:

• Guarantee long-term viable economic operations, with a fair distribution of benefits among the stakeholders,

• Support and strengthen SMEs,

• Promote establishment of companies throughout the national territory.

In pursuit of inclusion, the Plan seeks to:

• Ensure that communities benefit from the positive social and environmental benefits arising from the tourist industry,

• Invest in human capital development and the professionalization of the sector,

• Foster inclusion, equal opportunities, partnerships and entrepreneurships at the local level.

The primary objective is that the tourism sector in Costa Rica continues to be the main driver of the economy, promoting a model that is sustainable, innovative and inclusive. To achieve this objective, the Tourism Development Plan 2017-2021 aims to:

• Promote even distribution of demand throughout the territory, maintaining an average length of stay between 11 and 13 nights,

• Achieve 6% growth in international arrivals, which translates into 3.9 million arrivals by 2021,

• Position Costa Rica as a differentiated sustainable tourist destination, in segments of high perceived value and niches with high potential,

• Improve the competitiveness and organizational capacity of SMEs.

Launched in 2016, a new Social Progress Index (SPI) is being used as a tool to monitor tourism’s contribution to sustainable development. The SPI allows Costa Rica to measure the well-being of people in tourist destinations, serving as an indicator to better promote and establish public-private partnerships, and to foster social progress and inclusive and sustainable economic growth (Box 1.22).

Statistical profile

Table 1. Costa Rica: Domestic, inbound and outbound tourism

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Table 2. Costa Rica: Enterprises and employment in tourism

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