Costa Rica Facts

Costa Rica receives more than 1.7 million tourists yearly and this number has been growing 7% annually.

More than half of these visitors come from North America and almost 20% come from Europe. Currently tourism is a $1.7 billion industry in Costa Rica. The increase in visitors has led to major programs to improve infrastructure which have subsequently led to increases in property value and investment. Still, there is room for more improvements and property values should continue to rise as more major development programs are undertaken.

Major hotel chains such as Four Seasons, Starwood and Marriot are already in Costa Rica, and massive resort projects are being undertaken. One such project is a joint endeavor by Steve Case, former owner of AOL, and tennis star Andre Agassi. This project, in the Gulf of Papagayo Guanacaste, has over $800 million dollars invested and will bring extremely high end tourism to the country.

Costa Rican tourism will continue to expand with the increase of eco-tourism throughout the world. Yearly, as a result of fears from global climate change, increasing numbers of tourists are beginning to focus their vacations on natural areas with massive amounts of biodiversity. Tourists are forgetting about typical beach vacations and trading them in for natural wonders. Costa Rica is one of the few places in the world that is able to offer standard relaxing vacations, as well as cater to those individuals who are joining the eco-tourism trend. With national parks covering 25% of the land, as well as pristine white and pink beaches, Costa Rica will be a major tourist destination for years to come.

Costa Rica has the highest education level in Central America. Over 90% of Costa Ricans are literate and most receive at least six years of schooling. This high level of education will help foster continued growth and development in Costa Rica. As more corporations look to establish offices and production facilities outside of the United States many will follow the lead of companies like Intel, Proctor and Gamble and Microsoft, by taking advantage of Costa Rica’s high literacy level.

Costa Rica’s economic and political stability, blossoming tourist industry and ideal location directly in the center of the Americas has helped Costa Rica experience economic growth in recent years. With the future privatization of government run utilities growth will undoubtedly continue. The current GDP is $49 billion and $12,000 per capita, less than one third of which is from government spending.

While Costa Rica exports the standard Central American produce and textile commodities, a great deal of growth is resulting from the increase in foreign investment. Recently, Costa Rica cut off ties with Taiwan in order to foster a better trade relationship with China. Chinese investment has begun with the planned construction of a major refinery, and the Arias Government appears intent on maintaining a positive longstanding diplomatic relationship.

High education levels, low costs of living and a cheap labor force have led to foreign corporations setting up manufacturing and call centers in Costa Rica. This has led to increases in real estate value in the Central Valley, while tourism has made the coastal areas prime real estate investments as well. Still, values will continue rising as more North Americans and Europeans arrive for corporate offices, and eco-tourists take advantage of all Costa Rica has to offer. Infrastructure is constantly improving, and savvy investors may be able to take advantage of future improvements.

CAFTA, or the Central American Free Trade Agreement, is a trade agreement between Central American nations, and the United States. The agreement is similar to NAFTA, an agreement between the US, Canada, and Mexico, which was enacted in 1994. Costa Rica accepted CAFTA in November 2007 following a national vote. CAFTA will lead to increases in American investment in Costa Rica because it will encourage Costa Rica to allow private companies to freely compete with the current government monopoly on utilities. American businesses will feel safe investing in Central America because CAFTA will protect their interests under the rules of free trade. CAFTA will also lead to further improvements in infrastructure as a result of the competition for contracts that is a natural result of free trade.

Costa Rica’s current government has emphasized the importance of improving infrastructure. Testaments from visitors who had not been to Costa Rica in years are full of amazement at how much the roads have already improved in such a short time, and these types of improvement will only accelerate in the near future. Two major highway projects are currently underway which will make both Guanacaste and the Central Pacific Coast more accessible. Marina’s exist along the Pacific Coast, and more are in the works. There are also plans for a new modern terminal in the Liberia airport in Guanacaste which will allow visitors and residents to avoid traveling to the central valley before arriving at their destinations.