QCOSTARICA – The limited political strength of the current Minister of the Tourism, Wilhelm von Breymann, in the cabinet and government agencies, is preventing tourism industry demands from being addressed and priority given to the sector in the government’s strategy.
Representatives from the tourism industry argue that they have been given a back seat because they are not given the necessary priority in government policies.
The sector is also complaining about lack of investment in tourism infrastructure, excessive paperwork and permits and the enforcement of laws discouraging economic activity in the sector.
Pablo Abarca, President of the National Chamber of Tourism – Cámara Nacional de Turismo (Canatur), told Nacion.com that “… Von Breymann had little presence in the defense of the sector against the proposal to impose new taxes and the conflict, currently underway, against the Ministry of Finance (Ministerio de Hacienda) which intends to charge a fine for car rental companies.
Furthermore, the sector had to wait eight months for the first meeting of the regulatory commission of the tourism sector, the convening of which is the responsibility of the government. ”
Meanwhile, Gustavo Araya, president of the Costa Rican Chamber of Hotels – Costarricense de Hoteles (CCH) – added “… The lack of political experience of the minister has cost us very dearly in this case. We have been very critical of the management and, above all, lack of commitment from other institutions regarding the Costa Rican Tourism Institute. Among the entities are the Ministries of Finance, Public Works and Transport (MOPT) and Health (Salud) and as well as municipalities. ”
For his part, the minister said he has extensive experience in tourism, starting as a guide and ended up having three tour companies.
He acknowledged that perhaps he lacks political experience and should have more presence in the media.
According to Von Breymann, Costa Rica will soon attract more airlines, have its convention center and has concreted his reputation during his tenure.
Source: Nacion.com
Tourism is as important an industry to the Economy of Costa Rica as the coffee and banana production. It deserves to be addressed as a priority. The Costa Rica Government has always failed to understand that Costa Rica has serious competition in the tourist sector from countries, such as Mexico, Panama, and now Colombia, where prices tend to be significantly lower, for similar tourism experiences.
Wow, at first the industry appreciated the appointment of a minister with experience in tourism and now complains that he doesn’t have enough political experience? There’s no pleasing this bunch.
Neither should there be. Sure, tourism kicks in a good chunk of GDP while providing a lot of jobs, and for perhaps 20 years was a smart way to jump start economic development. However, it has outlived its usefulness. If you just look at the discrepancy between its percentage share of GDP and employment, you see that the employment percentage is higher. This alone tells you that tourism is mainly providing low-wage jobs. Again, sure, any job is better than no job, but at some point the country needs to transition from low-wage to high-wage jobs, and tourism isn’t the industry to lead this transition.
Meanwhile, tourism has costs. Just consider the recently reported sex resort. I’m no prude and have no problem with this resort, but at some point selling sex doesn’t seem a smart overall economic development plan for the country. Indeed, sex tourism has already grown so large that prostitutes have to be imported. About a third are Nicas, Dominicans, or Colombians. Most of these arrive illegally, which burdens migración, and both these and the Tica prostitutes avail themselves of public services without paying taxes. Basically, the rest of the country is subsidizing sex tourism. And in exchange the Ticos get jobs as bartenders and cab drivers, plus a little sales and hotel tax revenues paid by the tourists?
Nothing wrong with a vibrant tourism sector, or at least not much more wrong with it than with banana production. These kinds of low-wage industries can play a role in the economic mix. However, they are not industries that the country wants to promote beyond where they are now, and frankly some scaling back of both is in order. Better though than scaling back existing industries is to promote new and better ones, and that is where farsighted economic development initiatives need to focus.
Alas, the tourism sector has been coddled so long now (it alone enjoys a cabinet-level position in the government) that it will fight any loss of privilege, keep repeating how it’s the goose that laid the golden egg, and blah blah. However, at base it’s just trying to protect its vested interests in an industry that has outlived its usefulness as the driver of economic development.
Have past ministers had extensive experience in tourism as von Breymann has? Or were they mainly politicians?
Tourism IS going down for many reasons (especially if you’re excluding all the Perpetual Tourists that equal 4 “Tourists” a year) & CR does not seem to want to address WHY that’s happening. Quite the opposite – starting with how expensive it’s gotten & the new “news” that they’re more interested in focusing promoting TO upscale clients more than the masses. CR has a way to go before they can successfully attract masses of upscale clients as 2 BIG elements missing here overall that are crucial to upscale clientele is excellent food & excellent Customer Service.