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. 

Link to Article in El Financiero

Direct foreign investment is expected to fall some $245 million according to an estimate by the Costa Rican Central Bank.  In 2007 direct foreign investment reached $1.885 billion and is expected to fall to $1.640 billion this year. The reason stated is the recession in the United States since in 2007 over 50% of every $100 that was invested into Costa Rica came from that country.  The primary sector that will be impacted is real estate. In 2007 the sectors that received the lion’s share of foreign investment were industrial, real estate and tourism. For instance the industrial sector received $435 million in 2006 and last year that figure increased to $691 million.  Real estate increased some 70% from 2006 to 2007, surging from $373 million to $638 million. And tourism had the largest increase, from $132 million to $329 million. The provinces of Puntarenas and Guanacaste were the leaders in the attraction of foreign capital into the tourism and real estate sector and are expected to lead again this year. Projects like the Hacienda el Dorado in Golfito (Puntarenas) and the Hyatt and Hilton projects (Guanacaste) will keep the money flowing into those provinces.  In 2007 investment in Puntarenas totaled $215 million, which was 1/3 of the total direct foreign investment in real estate in 2007 and was 140% more than in 2006 when $91 million was invested into that sector in Puntarenas.  Other provinces received the following investment amounts in 2007: Guanacaste at $127 million, Alajuela at $103 million, San Jose with $89 million, Limon with $52 million, Heredia at $19 million and Cartago at $16 million.  Following the United States. the principal providers of capital were Canada, Germany, Italy, Portugal and France.

Link to La Nacion article (Spanish): http://www.nacion.com/ln_ee/2008/marzo/31/economia1474018.html