Foreign Investment in Tourism Sidesteps the Crisis
The tourism sector in Costa Rica attracted $223 million foreign direct investment (FDI) in the first six months of 2009. That is less than in 2007 and 2008, but not nearly as drastic a decrease as many had predicted. Prime reasons supporting the continued strong demand are the many marina projects that are now underway, such as the Marina Papagayo in Guanacaste. Direct investment in tourism represented about 38% of the total FDI. IN 2008, investment in tourism represented only 14% of the 2 billion in total FDI that year. Gonzalo Vargas, president of CANATUR (the Costa Rican Tourism Chamber), commented in an article in El Financiero, that while tourist arrival numbers are down, investors are thinking more in the long term. Overall, however, FDI this year is way down, 50% less than in 2008. The first six months of this year recorded a total FDI of around $592 million compared with over $1 billion last year. The Central Bank predicts that FDI will be down 30% for the full year and will recuperate at a slow pace next year. The sectors that have suffered the most are real estate and industry, which enjoyed strong showings in previous years. The industrial sector’s share of total FDI was 17.2% for the first six months. Its share of total FDI has been falling since 2004 as other sectors, principally tourism and real estate, have been on the steady rise.