Archive for April 23rd, 2008
Wednesday, April 23rd, 2008
I can’t say I’m surprised at the government’s knee-jerk reaction to the possibility that Russian investors are coming to Costa Rica and setting up a casino and hotel. The government here seems to love swinging the pendulum from one extreme to another — from fairly open regulations to draconian arbitrary rules that are sure to face court challenges and rampant non-compliance. I suppose North American and European countries are the specialists at slowly and gradually adjusting the legal dial until they get what they want.
If Costa Rica doesn’t want investors that are possibly tied to the Russian mafia, they should fish for a reason to deny their casino permits like they seem to do to the rest of us. I’m sure a good one will be found — maybe within the scope of anti-money laundering regulations.
Punishing the entire casino industry, plunging thousands of local jobs into uncertainty, is not the way to go. Such abrupt and arbitrary actions by the executive branch, bypassing the legislative system, without even the inkling of foresight needed to add a grandfather clause, gives Costa Rica a poor image to tourists and foreign investors bringing their much-needed funds to this country.
Imagine the plight of the casino-bound U.S. tourist choosing to return to Costa Rica in part because he liked the casinos down here. He’s not going to check on how much local laws have changed before booking his trip, because frankly he can’t imagine that some countries allow their laws to take brutal 180-degree turns. When he comes down and realizes that casinos are now only open for a few hours per day, he’ll ponder what changes are in store for his next trip to Costa Rica, and pick a more reasonable place to visit — not to mention tell his friends.
All this to keep a few Russians out of town. Talk about throwing out the baby with the bathwater!
Story by Jeff Alami
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Wednesday, April 23rd, 2008
Despite a sputtering U.S. economy and concerns over runaway development in the region, Costa Rica’s northwestern Guanacaste province continues to put up record tourism numbers, according to statistics released yesterday.
Tourist arrivals at the Daniel Oduber International Airport in Liberia, Guanacaste’s principal tourism hub, rose 13% in the first three months of the year compared to the same period last year, according to a marketing study commissioned by the Guanacaste Chamber of Tourism (CATURGUA).
Citing numbers from the Civil Aviation Authority, CATURGUA reported 156,028 tourists came through the airport from January through March, considered the peak of the year’s tourism high season. Tourism numbers begin to drop off after March as the country enters its rainy season, and commonly don’t spike again until December.
Tourism Minister Carlos Ricardo Benavides, speaking at a press conference yesterday held to announce the new figures, highlighted the good reputation Costa Rica appears to be enjoying among the visitors to Guanacaste.
“That 96% say that they are going to recommend us seems to me a fantastic product, considering that the majority of people that arrive in this country do because it was recommended by a friend or family member,” Benavides said. “It’s not all destinations in the world where people tend to come, or return again, with the frequency that you see in Costa Rica.”
According to the CATURGUA study, carried out by the marketing firm C&D Consultores, 48% of the tourists interviewed had already been to Costa Rica on a prior trip, up from 36% during the 2007 high season and 28% during the 2006 peak.
The research found that nearly three out of four (74%) visitors came from the United States and the rest (26%) came from Canada.
C&D Consultores interviewed 300 passengers at the Daniel Oduber airport, approaching passengers seated in seats pre-selected by the firm.
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Wednesday, April 23rd, 2008
The Costa Rican government plans to reduce the taxes paid by energy-efficient and low-emission cars. This tax break will cover hybrids, electrics, and those that are powered by biofuels such as ethanol. Automobiles in Costa Rica currently pay between 35% to 53% worth of consumption tax. The tax rate varies based on the car type, engine size and model.
The draft of the executive decree is now being reviewed by the Ministry of Energy and the Environment (MINAE), Costa Rica’s EPA, and will then be reviewed by the Ministerio de Hacienda – similar to the IRS. Julio Matamoros, the MINAE vice minister informed La Nación that the tax reduction will apply to new and used cars and some models may become totally tax free.
The projected change in taxation follows the lead of the May 2006 law that eliminated taxes for cars powered by electricity, hydrogen or compressed air. At that time, there was also a 15-30% tax reduction for hybrid cars with engines under 2000 cubic centimeters. The RITEVE test that all cars need to pass annually has also been key in helping to get cars that produce high levels of pollutants off the roads.
Currently the only car hybrid car being sold in Costa Rica is the Toyota Prius. About 150 Prius hybrids are on the road today and 3 or 4 are purchased each month. This car is sold by the Purdy Motors car dealership. The new law will hopefully make it more appealing for car dealerships to import energy-efficient and low-emission vehicles to Costa Rica. There is a growing market demand as more and more Ticos and residents look at ways of protecting the environment and save money. The added bonus of not having to pay an excessive premium to purchase one of these cars will certainly make the technology accessible to more car buyers in the near future.
With fossil fuel prices on the rise and no end in sight, alternative fuel transportation is quickly becoming important not only to the trendsetters and environmentally conscious but to everyone who is looking to economize.
Costa Rica Fuel Facts
Privately-owned passenger cars use up almost half the fuel used by road-based vehicles although they only transport 31% of Costa Rica’s population. On the other hand, public transport vehicles transport 54% of the population using only 10% of the total fuel used. According to some sources, passenger cars transport an average of 1.4 people. During the last 13 years the number of public transportation, the numbers of users has declined. One of the reasons for this is that bus routes have not adapted or grown enough to meet the needs of the population. Coupled with these trends is the breakdown of the road system which translates into wasted fuel as cars idle in traffic jams.
Costa Rica relies heavily (70%) on fossil fuels although the country is becoming much more efficient. For example in 1991 it took 1.3 barrels of crude oil to produce $1000 worth of goods and now only 0.8 barrels are needed to produce the same amount. Although this is a positive step, the country’s energy needs continue to increase by about 6% each year. ICE’s failure to meet Costa Rica’s growing energy needs has caused a significant economic impact for private citizens and enterprise as the cost of living continues to rise.
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