Small Businesses in Costa Rica - Market Analysis

Market analysis is positive for ecotourism in Costa Rica. The country's unique natural beauty, warm and sunny climate, peaceful political environment, and naturally friendly people have combined to make Costa Rica a prime destination for tourists,  which is reflected in the remarkable growth in ecotourism businesses in Costa Rica.

Recent government statistics show that tourism business in Costa Rica has grown by an incredible 72% over the last four years, an annual increase of 18% in 2004. Especially considering the events of 09/11, this growth in tourism for Costa Rica reflects a new reality of traveling to secure and peaceful countries in the Americas.

Tourism is a major national source of income, exceeding US$ 1.45 billion dollars in 2004, making it the second largest industry in Costa Rica. The Costa Rica Tourism Board is reporting near 100% hotel occupancy for the peak season of 2005, and market analysis expects overflow statistics for 2006.

In an effort to promote its growing tourism industry, the Costa Rican government has adopted a number of policies and incentives designed to support private initiative in the tourism industry, tourism related services and resort developments. A few of these are:

• Exemption from property taxes
• Forest conservation and reforestation incentive payments
• Exemption from certain import taxes
• Advanced depreciation of assets
• Streamlined building permit processes

Because of Costa Rica's exceptional policies of environmental preservation, incentives are aimed at small tourism businesses which demonstrate low-impact on the surrounding flora and fauna. Hotels and lodges of 20 rooms or less provide the largest percentage of accommodations in terms of units.

Costa Rica is a stable, democratic country which has experienced significant growth in attracting international investment in recent years, due in part, to its reputation as a nation of peace and democracy and its policies relating to conservation and environmental protection.

International Country Risk Guide ranked Costa Rica among the top ten countries in terms of risk for investors based on the economic, financial and particularly the political environment of the nation.

Private ownership of land is protected under Costa Rican laws and by its constitution. Foreigners enjoy the same ownership rights as its citizens. The land registry system in Costa Rica is a fully computerized Central Property Registry used to record both title documents and survey plans for properties.

Corporate ownership is open to foreigners and nationals alike, who enjoy the same rights and benefits. After USA and Canada, Costa Rica is increasingly becoming an attractive place to invest and visit in the Americas.

Costa Rica offers an efficient modern International Banking system. The banking system is modernized and facilitates international electronic transfers through commercial and merchant banks and financial corporations.