Central America’s tourist haven unveils new laws to attract and promote overseas investment and trade

	A coastline rich in biodiversity

Costa Rica has enjoyed impressive political stability for decades. Economic prosperity came from exporting bananas and coffee and more recently, it has championed information technology, now selling software and microchips abroad. To bolster that portfolio and improve standards of living that are already the highest in Central America, President Abel Pacheco has made tourism a priority since taking office in May 2002.

The country of four million abolished its military in 1949, choosing instead to invest in health and, above all, education. It has produced a highly-skilled workforce and given the nation a competitive advantage recognised by foreign financiers. The US is a key trade partner and source of inward investment as well as 60 percent of tourists.

Mr. Gilberto Barrantes Minister of Econmomy, Industry and Commerce

The Minister of Economy, Industry and Trade wants to make it easier to do business in Costa Rica. Recent legislation should help small and medium-sized firms, while the minister, Gilberto Barrantes, hopes to streamline the bureaucracy for potential investors by directing them to government support sites on the Internet.

He shares the optimism of Alberto Dent, the State Department minister, that a Central American Free Trade Agreement (Cafta) with the US would stimulate growth in the export sector. Costa Rica resumed talks with the US in January after ducking out of signing up to Cafta in December because it opposed having to open its insurance and telecoms sectors.

Dent’s other focus has been fighting for greater banking supervision and comprehensive tax reform: “It would create a fairer tax regime that brings in additional revenues of about 2.5 percent of [its $32bn] Gross Domestic Product.” His medium-term aim is to bring the fiscal deficit below 1 percent of GDP. Congress rejected the Fiscal Reform Bill, although the government is committed to passing it this year.


Protecting nature’s richest treasures

Costa Rica, long-time favorite for sunworshippers, promotes tourism with a conscience.

Costa Rica holds claim to inventing the term eco-tourism, and it is easy to see how its friendly people and the splendour of its rainforests lure thousands of visitors each year in search of outdoor holiday adventures. Its Caribbean and Pacific coastlines also satisfy sun, sea and sand seekers. The democratic republic, about the size of West Virginia, is home to 6 percent of the planet’s entire species. And its governments have guarded that biodiversity by signing over a quarter of national territory to protected parks and reserves. Here, centers of international prestige research its tropical heritage.

Mr.D. Rodrigo Castro Fonseca Minister of Turisime ICT

Now the government is backing an expansion of the tourism industry, which has grown successfully and spontaneously for 20 years. Costa Rica’s tourism minister, Rodriguo Castro is, however, adamant about taking the next stage carefully to avoid prejudicing the “principal tourist attractions, our wealth of nature”.There is recognition for efforts to protect the environment and promote sustainable tourism.For the first time, two travel agencies were awarded a top five stars under the CST program, while coastal communities won blue flags for clean seas. A 10-year tourism master plan was developed and is now underway, which has earmarked 10 of the country’s regions for development with supporting ground infrastructure.

Costa Rica has more planes arriving after efforts to attract the airlines, and has set a growth target of 6.6 percent over 10 years, with the introduction of direct flights from Europe a goal for 2004. “There’s no open skies policy but in 18 months we haven’t rejected one application,” says Castro.A shift towards sales over promotions yielded 6.5 percent more tourists in the first half of last year, but more importantly, a 10 percent rise in US travelers, home to 62 percent of all visitors. Still, Castro wants to avoid an explosion in numbers. He says: “We’re not interested in mass tourism.We want to be more selective and focus on specialist niches with utmost safety”.