Costa Rica: on the Beaten Path
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Chapter 5 Costa Rica: On the Beaten Path Costa Rica is ecotourism's poster child. Since the mid-1980s, this tiny Central American country has been transformed from a staging ground for the covert U.S. war against Nicaragua and a testing ground for USAID'S free-trade and privatization policies1 into a laboratory for "green" tourism. More than any other event, President Oscar Arias Sanchez's 1987 receipt of the Nobel Peace Prize propelled Costa Rica onto the world stage, secur- ing its image as a peaceful country and marking the start of the ecotourism boom. In the 1990s, Costa Rica jumped in popularity to the head of the ecotourism queue, ahead of older nature travel destinations such as the Gallipagos Islands, Kenya, and Nepal. In 1992, the U.S. Adventure Travel Society dubbed Costa Rica the "number one ecotourism destination in the world," and a survey conducted by Costa Rica's government showed that most tourists were entering Costa Rica for ecotourism-related reason^.^ Ecotourism projects run a wide gamut in Costa Rica. Whereas many developing countries have only a handful of really fine ecotourism experi- ments, Costa Rica offers a cornucopia of choices, ranging from rustic to lux- urious, from counterculture to indigenous culture, from spiritual to scien- tific, from purely Costa Rican to undeniably North American or European to eclectic, cross-cultural blends. The best of these ecolodges, totaling sev- enty-nine in 1997, are listed at the beginning of a tourism guidebook titled The New Key to Costa Ri~a.~This annual survey, begun as a pilot project in 19934 and perfected by researchers Anne Becher and Jane Segleau with the assistance of many of Costa Rica's leading ecotourism experts, was the world's first thorough, impartial assessment of nature tour destinations and ecolodges. It provides ecotourists with critical guidelines and gives the industry itself benchmarks for evaluating hotels and lodges. It seems that every traveler from the United States who is interested in nature is heading for, or has already been to, Costa Rica. What they find is both a rich and a rough-hewn ecotourism tapestry, an industry fill of creativity and experimentation as well as crass opportunism, marketing ploys, and downright scams. Costa Rica's ecotourism panorama is marked by both contradictions and potential. Although the country is marketed as an ecotourism haven, investment policies have favored large, foreign mass 132 Part 11. Nation Studies Chapter 5. Costa Rica: On the Beaten Path 133 tourism developments. Despite Costa Rica's international reputation, Tahle 5.1. Costa Rica's Tourism Growth ecotourism has so far only partially fulfilled its twin objectives of providing significant resources for national conservation efforts and benefiting local 1976 1982 1984 1986 1989 1990 1992 1994 1995 1996 communities. Arrivals 299 372 274 261 376 435 611 761 792 555 Costa Rica's natural wonders, encapsulated in the statistic that the coun- (in thousands) try contains 5 percent of the world's biodiversity within just 0.035 percent Gross receipts 57 131 117 133 207 275 431 626 718 654 of the earth's surface, were once a well-kept secret. When my family and I (in millions of first moved to Costa Rica, in the early 1980s, the country was not yet on the U.S. dollars) radar screen of most U.S. travel agencies and tour operators. In Costa Rica Source: Statistics are from the Costa Rican Tourist Board's Department of Statistics and itself, environmentalism was confined to a small cadre of scientists and Investigations, supplied by Anne Becher; Elizabeth Boo, Ecotourism: Potentials and national park offices. When we left, a decade later, ecotourism and environ- Pitfalls, vol. 1 (Washington, D.C.: World Wildlife Fund, 1990), p. 26; the World Tourism mental ethics had become part of Costa Rica's national consciousness. Organization; the Economist Intelligence Unit; and various articles in the Tico Times. "Ecotourism has helped create the self-image of Costa Ricans. It's now their Note: Figures include international tourist arrivals via land, sea, and air. self-identity," says writer and activist Cliris Wille, who together with Diane Jukofs'sky heads the Rainforest Alliance's office in San Jost. "That's tremen- ganizing and beefing up funding (in part through hotel and airfare taxes) for dously important. There's a lexicon of environmentalism here, right up to the country's tourism board, the Costa Rican Tourist Board (ICT). The the president." - ICT's operating budget came from a 3 percent hotel room tax and an 8 per- Costa Rica has the right stuff, the proper building blocks, for ecotour- cent airline ticket tax.5 ism. As is the case in many developing countries, Costa Rica's ecotourism Beginning in the mid-1980s, the visitor pattern began to shift: the num- industry is built on its national park system. Here, however, it is comple- ber of tourists from North America and Europe grew while both the per- mented by other ingredients lacking in many developing countries: its well- centage of domestic tourism and the number of visitors from other Central functioning democracy, its political stability, the abolition of its army, its American countries declined. Investment patterns also changed. In the respect for human rights, and its (generally) welcoming attitude toward for- 1980s, assistance from USAID, the World Bank, and the International eigners, particularly the ~rzngovariety. Costa Rica has one of the highest Monetary Fund (IMF) mushroomed and helped engineer the shift toward standards of living, the largest middle class, the best public health care sys- overseas, particularly U.S., investment. This flow of dollars came with strings tem, the best public education through the university level, and the highest attached, including the requirement that Costa Rica quietly support the '4 literacy rate in Latin America. The country has produced an outstanding U.S. war against Nicaragua and adhere to wide-ranging structural adjust- coterie of scientists and conservationists. More than a hundred local and ment policies such as privatization of government businesses and industries, international environmental NGOs have branches in the country. Costa Rica promotion of exports and foreign investment, and cutting of funds for is physically compact and easy to get around in, with paved roads, tele- national parks, the ICT, and other public instit~tions.~Tourism was classi- phones, electricity, and a pleasant climate, and it is just a few hours' flight fied as an export industry because it earned foreign exchange. from the United States. In 1984, the government of Costa Rica passed legislation to provide investment incentives for hotels, air and sea transportation companies, car - ~overhrpentPolicy and the Private Sector rental agencies, and travel agencies. Most of the shares of LACSA, Costa Rica's national airline since the mid-1940s, were gradually sold to Japanese In the 1960s and 1970s, many tourist resorts, clubs, and parks were devel- and Salvadoran investors, and the government's share shrank to a mere 3 oped by Costa Rican entrepreneurs especially for the country's middle and percent. With passage of the Tourism Development Incentives Law in 1985, upper classes. Domestic tourism (as in socialist Cuba) was substantial, and tourism projects became eligible for ICT-administered incentives and tax most foreign tourists were from other Central American countries. By 1980, breaks. These included exemptions from property taxes and from import tourism was the country's third largest foreign exchange earner (see table duties for construction and remodeling materials and vehicles such as vans 5.1 for Costa Rica's overall growth in tourism since 1976). In the 1980s, and cars, fishing and pleasure boats, jet skis, dune buggies, and golf carts.7 the government began for the first time to invest seriously in tourism, reor- To qualify, however, facilities needed to have more than twenty rooms and 134 Part 11. Nation Studies Chapter 5. Costa Rica: On the Beaten Path 135 had to conform to strict standards on use of space and furnishings. "These variety of incentives to tourism investors, and launched a $15 million pub- restrictions often preclude local people from qualifiing for incentives," licity campaign to attract U.S. and Canadian ecotravelers. Some tighter reg- wrote Carole Hill, a professor of anthropology and geography, in 1990.8 In ulations were also instituted. A new Basic Environment Law, unanimously 1996, the government passed a new tourism incentive law providing hotel passed by the Legislative Assembly in September 1995, makes environmen- developers, car rental agencies, and tour operators with a twelve-year mora- tal impact studies mandatory for all tourism projects and other development y torium on tares in return for investments in new tourism projects. Between projects. Figueres promoted legislation to give incentives to investors and to 1985 and 1995, the number of hotel rooms nearly tripled, growing from improve roads, ports, airports, and street signs, all of which primarily bene- 4,866 to some 12,000.9 Although the ICT must approve all hotel con- fit large, foreign-owned tourism projects. struction, environmental impact studies were not required until 1995, when a new environmental law required such studies. In 1987, the ICT kicked off a campaign to attract foreign investment in Papaga~o luxury tourism resorts, and ICT officials later signed a tourism incentives Despite his environmental agenda, Figueres decided in mid-1995 to give a agreement with CINDE (Coalition for Development Initiatives, subse- green light to Papagayo, a $3 billion megaresort project-the largest in - quently renamed Costa Rican Investment and Trade Development Board), Central America. Papagayo is set to become Costa Rica's Cancun: a giant an institute created and financed by USAID for the purpose of bringing in conventional resort complex on seventeen beaches strung around the Gulf overseas investment.