19/10/2023
Costa Rica Tourism by the Numbers
Before my life in tourism in Costa Rica, my professional career was marketing. Even, though my career bath has changed somewhat, I still study marketing trends very carefully, with a special focus on how they relate to tourism (especially in Costa Rica).
As many of us experience, Just like marketing, tourism trends are constantly changing and evolving. It can feel overwhelming to try and keep up and try and analyze what is happening in the marketplace.
In an effort to try and make some sense of it all, every quarter, I look at the data put out by ICT and see what the numbers can tell us. Here is the latest report I shared with my clients at my company . I hope some in the group can find it useful.
Latest analysis of ICT tourism numbers. (Jan-Aug 2023 vs Jan- Aug 2019)
Total Juan Santamaria (SJO) airport tourism arrivals (non-domestic travelers) yearly trending as of end of August still down -6.5%. The gap continues to close, but very slowly.
Canada is where SJO Airport lost most of it's tourists. It is improving slightly, but still down annually -9.6% vs 2019.
Europe definitely slipping in end of 2nd Q and beginning of 3rd Q. Thanks to strong 1st Q, Europe has an average annual for 2023 of +2.3% vs 2019. European travelers only represent 24% of all SJO tourism airline arrivals.
Keep in mind, thanks to Canada, North America remains -1.8% down vs +2.3% gain in Europe.
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Liberia (LIR) (2019 vs 2023) still killing it with +22% gain!!!!
Canada alone is up +22.6%
North America up +25%
However.... Europe lost -26.3% trending this year
Keep in mind, LIR Airport represents 538k arrivals
SJO Airport represents 1,198k arrivals
Means LIR represents 31% of total tourism arrivals in 2023.
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So what is happening? SJO arrivals are still down over -6%, and we have to remember, since 2019 the number of businesses catering to tourism has grown substantially (especially in the vacation rental category (aka AirBnb). So all I can assume is that the pie is really being cut into smaller pieces for established tourism businesses.
I also think a number that we are NOT seeing is that late 2nd Q & 3rd Q Ticos pulled back post-covid traveling, and tourism businesses that rely on SJO airport arrivals are seeing a combined effect of fewer tourists vs 2019 and the national market pulling back.
In addition, I think consumers finally pulled back from agreeing to pay hugely inflated airline, hotel and travel prices fueled by post-Covid travel demand.
My prediction is there will probably be some attrition within the next 12 months as many of the weak players fall out Also, now with Costa Rica offering 180 day tourist visas for many countries, I think many vacation rentals will look towards longer-term rentals with longer-term stays which would be attractive to tourists such as digital nomads and other longer-term stay residents who don't want the full commitment of moving and taking up full legal residency.
On the pricing side of tourism travel and accommodations, we are already starting to see rate drops and heavy discounting to try and offset the decline in demand. Vacation rentals (budget & midrange level) seem to be experiencing the biggest drop in occupancy rates. I expect budget & midrange air travel and accommodation rates to definitely not increase in the upcoming year, and businesses might be prudent to plan for a possible lower spend per person. There will be lots of bargain shopping, which not only means lower prices, but more last-minute travel with shorter booking windows.
Data provided by ICT, information and analysis by ClickAss Costa Rica Tourism Marketing.