Costa Rica Tourism During COVID-19

I got involved in Costa Rica tourism way back in 2004 when I launched a web site to sell package tours, with hotels, transport and activities included. The web site endeavor eventually became a full-blown agency with an office in San Jose…

There are a couple of things about my experience running a Costa Rica travel agency that are highly relevant to the situation of Costa Rica tourism during COVID-19.

Tourism represents 6 to 7% of Costa Rica’s GDP. It has literally put a number of small Costa Rica communities, like La Fortuna and Manuel Antonio, on the map. These communities survive on tourism in almost every respect. Right now tourism has been grounded to a halt. That situation probably won’t change for months. Costa Rica closed its borders to tourists on March 16 and that’s scheduled to last at least until April 30. And who knows how long it will take before North Americans and Europeans, who make up the bulk of Costa Rica’s tourism, will be willing to run the risk of flying again?

This crisis couldn’t have hit at a worse time. The high season for tourism in Costa Rica coincides with Costa Rica’s summer, or verano, which lasts from the last part of December to the middle of April. I remember back when I was running my agency, which I boot-strapped financially, I would sometimes get into cash-flow trouble when I had a large influx of arrivals and no sales. For instance, in June, July and August we would have a lot of arrivals by families, with kids out of school, but folks really didn’t begin to book for the coming high season until later in the year, around October. So, all the future debt generated from the sales made months before those families arrived would come due. I would often be forced to tap into reserves, along with whatever current cash flow I could eke out, to make ends meet.

Well, that’s sort of what is happening to Costa Rica tourism during COVID-19, but on a scale that’s dramatically worse. The COVID-19 crisis is happening right at the mid-point of the high tourist season. Agencies, hotels and tour operators are having to deal with a massive wave of cancellations and refund demands at a time when sales have completely halted. I am sure most, except for the big boxes, have exhausted reserves trying to handle this situation. Many have resorted to a campaign of begging customers to postpone trips rather than cancel and seek a refund.

In short, it’s a mess…

I recently listened to an episode of the podcast, The Costa Rica Experience, featuring an interview with Casey Halloran, discussing Costa Rica tourism during COVID-19. Casey is one of the founders of Costa Rica Vacations and Namu Travel. Costa Rica Vacations is probably the largest independent agency in the country. They always set the standards I tried to emulate back in the days of running my agency. They are one of the few who were able to compete when big box travel moved into the Costa Rica tourism space. I highly respect Casey. And he is deeply concerned about the situation for tourism in Costa Rica, but also optimistic.

One of his chief concerns is what Costa Rica tourism might look like at the end of this crisis. Who will survive and who won’t? You see, Costa Rica tourism has historically been a story of success by the little guy. By that I mean the small (and tiny) boutique hotels, the rural tourism experiences provided by locals, the locally owned shops, restaurants, and bars, etc., etc. These are what make Costa Rica the truly special experience that it is…well, in conjunction with the incredible flora and fauna. One bright note that Casey is quick to point out, is that the natural attraction of Costa Rica isn’t going anywhere as a result of COVID-19. In fact, due to the absence of humans, the natural part will probably get even better!

I remember that when Costa Rica reached a world-wide level of popularity, I guess around 2012, the big box travel companies began to move onto the scene in a big way. I’d done fairly well the first several years of my business. My web site ranked well in searches related to Costa Rica tourism and travel. Most of my leads came from organic Google searches, which cost me zero once I was able to get my page ranked well enough to appear in them. Then all of a sudden, almost in the blink of an eye, my site just disappeared from those searches. And in its place all I could see were the big boxes, like Expedia, Travelocity, and, well, Casey’s Costa Rica Vacations! In short, my site got kicked by the way-side and my sales evaporated. I was forced to down-size more and more. These days I’m downsized to the point of only offering vacation consulting to the occasional repeat customer or referral.

Granted, what I was basically selling back then was knowledge to folks who wanted info about Costa Rica travel. In those early days you could make a business consolidating that info. Now, not so much. Nowadays, travelers are content to go to a big box site, book a flight, rental car and hotel and just wing it on their own from there. Even though small agencies like mine are pretty much non-existent these days, the small boutique hotel, or the local tour operator in La Fortuna or Manuel Antonio, they’ve still managed to thrive as Costa Rica has become an increasingly popular tourism destination…that is, until COVID-19 came along…

In the midst this crisis, the big box travel companies, like Expedia, Travelocity, etc., etc., are flexing their financial muscles, as the little guys are wondering how they’ll put food on the table tomorrow. It would be a shame to see Costa Rica effectively be turned into Cancun/Cozumel by this crisis, with nothing left but internationally owned big box operators, giant hotels and large/regional tour operators.

But it could happen and Casey sounds that warning…

So, what can be done about it?

Costa Rica is a poor country and there’s only so much the government can do. I believe the answer lies with the millions of Costa Rica lovers out there, maybe like you!

So, I am here to make this plea: as soon as possible book your Costa Rica trip. Show support for the industry by booking with the little guy, the small and independent in-country agency, the small boutique hotels and the local tour operators. The big boxers don’t need your help. They have access to all the money needed to survive this. But the little guys are hurting. And they are the ones that make Costa Rica the special experience that it has been for millions…

So, let’s keep it going…

Save Costa Rica tourism during COVID-19 by booking your trip now, or as soon as the airlines start offering viable flight options once again.

And please book with an eye for the small guy!