Prospering with higher yield markets

Hermes Navarro del ValleCosta Rica

World Tourism Conference

Melaka, Malaysia21-13 October 2013

Capacity vs. Quality vs. Sustainable Growth

1. Is growth the only possible way to measure success in

tourism?2. Should there be a study in every country to determine the capacity of each destination?

3. What is better: quantity or quality?

¿Hacia dónde vamos?

General characteristics of the destination

79

62

57

5646

23

Extension of 51,100 km2

4,5 million inhabitants

Literacy that reaches 98% of the population

99% of electrical covering

31,5% of protected territory

4% of the world’s biodiversity

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

0

500000

1000000

1500000

2000000

2500000

International visitors arrivals2003-2012

YearCurrency(Thousand of

dollars)%

variation2003 1 199,42004 1 358,5 13,32005 1 570,1 15,62006 1 620,9 3,22007 1 927,4 18,92008 2 174,1 12,82009 1 805,8 -16,92010 1 857,6 2,92011 1 987,2 7,02012 2 219,2 11,7

Tourist activity: Generates Foreign exchange 2003-2012

Economical Benefits of Tourism• Contribution of tourism to GDP of 4,9 % directly and 12,5% indirectly.

• Near 100,000 employments in a direct manner and 250,000 in an indirect manner, which represents 12% of total employment in the country.

• The distribution of tourism throughout the territory generates wide possibilities of local development and local business. Near 2,375 hotels ( 94,7%) have less than fifty rooms.

• Generates the creation of new jobs in agricultural areas, increases the income of the families involved.

• Generates economic dynamics based on production chains in many places of the country due to the demand of goods and services.

¿Hacia dónde vamos?

• Allocates indirect economic value to the natural spaces due the given expectations of benefits generated through tourism.

• Around 58% of international tourists visits National Parks generating approximately US$8 million of income by entrance to those parks.

• Favors conservation of private protected areas that are used as touristic products.

• Favors environmental education and conservation awareness of a new touristic culture.

Distribution of environmental benefits

General characteristics of tourist areas

• Most of the attractions of the country are associated with national parks, biological reserves, beaches and cities.

• Existence of 126 protected areas covering almost 31,5% of the country.

• Environmental quality is a key factor for tourist competitiveness since they nourishes the design of high quality products.

• The tourist product integrates a mixture of activities that uses a great variety of environments, such as beaches, forests, cities, and countryside

Ecotourism

Adventure

Beach and Sun

Residencias

Rural Community

Conventions

Welfare (Health)

Social

Sport Fishing

Main Products

Complem

entary Productos

Touristic ProductsTourism National Plan 2010-2016

The Hotel Industry2013

• Costa Rica has 2,509 hosting companies with a total of 46,285 rooms.  • 2,375 businesses ( 94,7%) have less than 50 rooms,

• 78 businesses (3,1%) have between 51 to 100 rooms and

• 56 businesses (2,2%) have more than 100 rooms.

• There is a general relationship of 17 rooms per hotel.

Hotels

Low (1-31)

Medium (32-223)

High (224-275)

Low (1-1,262)

Medium (1,263-10,492)

High (10,493-280,056)

DEMAND DISTRIBUTIONNumber of tourists that sleep at least

one night

OFFER QUALITY

Costa Rica is a destination that has focused on attracting tourists experienced, with a high level of education and high income level.

One of the main objectives is to reach the group of people called the best prospects in the U.S. and Canada

These "best prospects" not looking for a traditional vacation of sun and sand confined in an "all inclusive" location.

Experience other cultures (81%)

See for myself things I've read or heard about (71%)

See and do as much as I possibly can (65%)

Indulge my love of food and wine (30%)

Celebrate (24%)

Spend quality time with family and friends (39%)

Connect with my heritage/ancestry (20%)

Rest and relax (39%)

Splurge (28%)

Disconnect (20%)

Seek adventure (49%)

Be physically active (30%)

Pursue special interests or hobbies (23%)

For me, an international

vacation is a time to…

Local contact• Visit villages and small towns (74%)

• Attend a local festival (71%)

• See animals in their natural habitat (67%)

• See local foods being made (e.g., cheese, chocolate) (64%)

• Observe artisans/craftsmen at work (62%)

• Visit native communities (56%)

• Attend a performance of local music or dance (56%)

• Try to learn some of the local language (48%)

Nature and scenic beauty

• Visit famous landmarks (90%)

• Visit natural wonders (e.g., volcanoes, waterfalls, glaciers) (87%)

• Take a scenic boat or train ride (80%)

• Walk through an open-air produce market (79%)

• Visit parks and gardens (76%)

Culture

• Visit museums and galleries (79%)

• Visit archaeological sites (66%)

• Buy a city card/pass for discounted entry to museums, sites, etc. (56%)

• Visit a UNESCO World Heritage site (32%)

• Go to the symphony, opera, or ballet (30%)

Sports

AdventureHiking (59%)Bicycling (44%)Zip-lining (43%)Horsebackriding

(41%)River rafting

(40%)Kayaking (32%)

Soft water activities

Swimming (67%)Sunbathing

(61%)Snorkeling (55%)

Specialized aquatic

Activities Sailing (32%)Scuba diving

(21%)Surfing (11%)

Stand up paddleboarding

(10%)

Luxury

Yoga (22%)Golfing (18%)

Our best prospects are very interested in …

• An ecotour focused on close-to-nature activities, such as visiting a rainforest

60%

• A trip sponsored by a non-profit organization (university alumni association, museum, etc.)

37%

• A week at a health spa, improving your overall fitness through diet, exercise, relaxation, etc.

33%

• A trip on which you volunteer some time for community service

32%• A trip on which you travel abroad to

receive health care (i.e., to have medical, dental, or cosmetic surgery or other procedures performed)

14%

activities that could be done on an international vacation

Ecological awareness

I consider myself to be an envi-ronmentally conscious consumer

I travel in a way that reflects my commitment to the environment

I am inclined to visit a country that practices sustainable tourism

Saving money is currently more of a priority for me than paying extra for environmentally friendly products

88%

69%

77%

63% 20112009

Capacity vs. Quality vs. Sustainable Growth

1. Is growth the only possible way to measure success in

tourism?2. Should there be a study in every country to determine the capacity of each destination?

3. 3. What is better: quantity or quality?

La zona costera

Zona PúblicaZona restringida

La ZMT y la Ley 6043

Variaciones en la ZMT

ZMT

Propiedad privada o ciudad

BosqueZona Pública

Zona Restringida

Declaratorias turísticas

Sector turístico

Sector no turístico

Zona Pública

Zona Restringida Zona Pública

Zona Restringida

•Low scale services•Local financing

Phase 1

•Formal businesses•Local and foreign financing

Phase 2

•Foreign investment•Bigger scale and specialization

Phase 3

•Brand hotels and international tour operators, housing

Phase 4