What is the deal with all the Guanacaste resorts? Is it crowded?

One of the characteristics of the Papagayo region is that some of the biggest resorts in the country are located here, with Billions of dollars being invested. THIS IS GOOD for the area and the country. When people hear the word RESORTS, they assume that the town will be overrun with tourists, wearing red and yellow arm bands from the various hotels. Yet, you hardly ever see any of these people in town. Sure, occasionally, on a Friday night in the bars, you will see tourists who have left the resorts to come to Coco to party. Once in a while, you will spot these people in restaurants or souvenir shops, spending their money in the community. But for the most part, they stay in the resorts and very rarely ever wander out.

Most of the Guanacaste resorts are 20 minutes to an hour from Playas del Coco and Playa Hermosa, so it is not like they are just across the street. The idea of these hotels is to keep the people IN the resort. They want them spending money in THEIR spa, souvenir shops, restaurants and tour office, and make it very difficult to leave. They spent millions of dollars marketing their kingdoms and want to make as much profit as possible.

So why then, is this good for the area?

First off, these mega projects create thousands of jobs. The local community benefits the most, as everyone is working, bringing lots of spendable income into the homes and families. There is almost NO unemployment here and therefore that is why we have the least amount of crime in the country. Most thieves are not professionals. They are only stealing to feed their families, in times of desperation. So if they can work, they will. These jobs pay more than the average wage, and are considered great career opportunities for many people. Hotel Management is a fantastic way to make a living, with huge upsides. Working in an Air Conditioned hotel as a front desk person, is surely better than what their parents had to do decades before, slaving in the agricultural industry. Even if you are just a maid, it is a consistent, dependable, honorable job with benefits. I know many Ticos who work in the resorts, and they LOVE their jobs, meeting people every day; working for a worldwide recognized brand.  

Over 1 Million people flew into Liberia Airport last year, and over 3 Million total visitors, and many of them stayed in these chain hotels and all inclusive. This creates hundreds of millions of dollars in revenue and taxes for this little haven. Every one of these people paid a $29 Exit Tax in their airline ticket price, and a 13% sales tax on their hotel room. Add it up. For the most part, 95% of all the products served in these places are local Costa Rican goods. Sure, the RIU might have Miller Light or Jack Daniels, but everything else is home grown: Rum, local beer and coffee, along with chicken, fish, beef, pork, sugar, rice, fruits and vegetables; all raised and sold in Costa Rica. Truckloads of products are unloaded every day.  

These Guanacaste resorts spend hundreds of millions of dollars advertising our country, saving us from having to do it. Almost every visitor is going to take at least one or two tours, visiting such iconic places as the volcanoes, mud baths, hot springs, zip lining, animal sanctuaries, rafting, sailboats and more. Many people go every single day of their vacation to a different location and take their entire families along. This puts millions of dollars into the eco tour industry, which employs tens of thousands more Costa Rican. Many of these operators live locally, so again, the money comes back into the communities and our town, as the locals shop in the markets, stores and salons.

Most people are not world travelers; many people never leave the country they were born in. So coming somewhere like Latin America, can be scary for someone, who does not have the confidence to travel abroad. “Are their guerillas in Costa Rica? Is it run by the army? Is it safe? Will we catch an exotic disease? Oh look honey; there is a Four Seasons / Marriott / Occidental / Hyatt / Hilton / Secrets / Westin there.  Let’s use our Rewards Miles and go to Costa Rica.” These resorts offer a “Safe” way to visit paradise. It allows people to taste Pura Vida, in a familiar setting, that they have stayed in before, in dozens of other locations. Then after they get here, they see how wonderful this country is, and fall in love. They notice how clean it is, how there is no violence, how friendly the people are, and they plan another trip back. These resorts exposed them to paradise, and then they return a second, third, fourth trip, with much more confidence to explore.  These people then rent a car, and stay in a condo from VRBO / AirBNB, or a smaller, boutique hotel, and many of them, end up at my RE/MAX office. Welcome to paradise, we tell them.

So this brings us to the big question. How are Guanacaste resorts good for my real estate investment and my lifestyle?

The number one most important reason why the resorts are so vital is because they are the driving force behind the infrastructure. Costa Rica is not a big country and does not have a lot of money. So the government is not going to waste what little it has, paving roads to remote surfing beaches or the rain forest. A small butterfly farm in the middle of the jungle does not employ anyone or pay many taxes, so they don’t care much about those areas. But when a 5 star hotel decides to be built, it probably went something like this.

“Hello Mr. President of Costa Rica. This is the Four Seasons calling; please get a pen and paper. Here is a list of what we will require if we are going to build a $500 Million project in your country.”

Because of all the Guanacaste resorts that have been developed, we have the absolute best infrastructure in the entire country. We have a state of the art airport, 20 minutes away. ALL the roads are nicely paved, with painted lines and reflectors. We have the best internet and cable TV service, and the cell phone coverage is 4G. The electricity never goes out and brand new water lines are being built. There are police and fire trucks and real ambulances. Most important: We have 3 world class hospitals and many local clinics as well, if God Forbid you needed them  Most of Costa Rica does not have these services, it is very remote, rural and a jungle. If you had a heart attack in 90% of this country, you might not make it. But here, in the Papagayo, we have all the First World Services my clients demand.

Because we have the best infrastructure, investors started putting their money here, back in 2004, and the community started to grow. It became a Catch 22 effect. BECAUSE the infrastructure was here, the investors stayed. Because people started moving here, the amenities followed. We have 75 restaurants, coffee shops and bars, 5 grocery stores and 3 hardware stores. There are spas, and hair salons; movie theaters and gyms. We have banks, Cell phone and computer shops, and pharmacies; every single amenity you need to live. And the city of Liberia is just 30 minutes away for services that might not be at the beach. Malls, tire shops, car dealerships and much more, are just a short drive away. The further you get away from the airport and the resorts, the worst the infrastructure and the fewer amounts of amenities. No one is going to take a risk and open a business, if they don’t think they can make money. So even if you like living in a remote place, you are never going to get the services you need. You could be Wolfgang Puck, the greatest chef in the world, but if you opened a restaurant in the middle of nowhere, you will go out of business. No one will come. Because we have a huge community of Ex Pats and Ticos alike, these great amenities will continue to open and thrive.

So this is what it boils down to. Most people, after doing their due diligence, and spending time in the country, end up buying a place here; in the Papagayo area. Playas del Coco, Playa Hermosa, Playa Panama and Ocotal, make up our little bay.  Then from here, they take mini trips, and VISIT the rain forest, jungle and remote beaches. They play Tarzan and Jane for a couple days, and the come BACK to their home; here, where we have the best infrastructure and amenities, and the largest community of Ex Pats in the country.

Hope to have you as a neighbor soon. PURA VIDA.

Michael

Is there any begging in Costa Rica?

I have traveled more than most people, and all over Latin America. One of the things that always bothered me the most was how much poverty there is in all of these countries; you almost felt sorry for being successful in life and having money. When you step off the plane in countries like Mexico, Nicaragua, Panama and Belize, you immediately realize you are in a different world. The very first person you see is a soldier, carrying an automatic weapon, and this instantly puts you on high alert. It is very intimidating when the customs officer is wearing a camouflage uniform. As you walk through the airport, you see dozens of them with weapons, and they are usually NOT smiling or friendly. The army patrols these countries. Not in Costa Rica; they abolished their military in 1948. The customs officers at the airport don’t even carry handguns, and you MIGHT see one or two policeman with pistols. You are immediately put at ease and feel relaxed. Everyone is smiling and very friendly. WELCOME TO COSTA RICA.

As you travel throughout most of Central America and much of the Caribbean, you are bombarded with the sights and sounds of poverty. Entire villages are shanty towns; shacks made of sheet metal and boards, with no access to running water or electricity. Every corner you are approached by a beggar, with a cup, pleading for money to feed their children. You see homeless people strewn out across the sidewalks, sleeping anywhere they can find room to lay a cardboard box. As you try to relax in front of your hotel on the beach, you are constantly harassed by every kind of solicitor, hundreds of them, they seem to never stop. They are selling jewelry, tours, clothing and trinkets, and they don’t take NO for an answer. You cannot even enjoy the vacation it is so overwhelming. Most of these countries post big signs at the entrance to the hotels, warning you NOT to walk around the town at night, and to be VERY careful of strangers. Many of these places also have huge territories controlled by the Drug Cartels and gangs, so you can’t just jump in your rental car and travel where you want. You are very limited to where you can safely go and enjoy the scenery.

Costa Rica is an Eden in the midst of all this craziness. They call it the Switzerland of Latin America. You can travel anywhere in this country, and not ever once feel threatened. Like anywhere in the world, use common sense. There are no gangs or Cartel and you will never be stopped by a man in a tank, pointing an M-16 in your face. The police are very friendly and other than on the National Highways, you probably won’t even see one. But what sets Costa Rica apart from the rest of the world, is that there is almost NO extreme poverty. This little paradise has one of the highest percentages of Middle Class in the world. You see beautiful little homes, meticulously maintained, with satellite dishes on the roofs, and new scooters in the driveway. You see very little trash on the side of the road as the Ticos are very proud people. They love their country, and take very good care of it. They NEVER beg, they don’t have welfare of unemployment benefits, and everyone works. Very, very rarely do you ever see a beggar, I can count on one hand how many I have seen in a decade, and even the beach solicitors are scarce compared to other places. You might have one or two an hour come by, and when you say NO, they thank you, smile, wish you a nice day, and continue down the beach. Like everywhere, there is the occasional annoying Time Share sales guy, trying to convince you that it is NOT a time share, but a vacation club, and that their program is different from all the others. The best way to get rid of these guys is to just tell them I LIVE HERE, and they will wander off quietly.

What you do see here, instead of begging, are small entrepreneurs trying to make a buck to take care of their families. Young girls set up on the side of the road, with big boards loaded with handmade jewelry, waiting for a client. As you walk by they smile, but NEVER push you to buy. Young men, have coolers full of Ceviche or Pipas (small Coconuts) and hustle their refreshments on a hot day. At night you will see street vendors selling some of the best fajitas on a stick, that you have ever eaten; but again, they never pressure you to stop.

The guys I like the most are the “parking attendants.” As you park on the public roads, near the center of town or by the entrance to the beach, you will find people wearing glow in the dark vests, offering to watch your car. They are not employed by anyone, but have chosen to work, instead of beg or steal. Always say YES, but don’t pay them until you leave. They will keep an eye on your vehicle and your belongings, and then when it is time to go, they will help you back out into traffic, so you can be on your way. Tip them 200 Colones, which is the equivalent of about 50 cents, and they will be very thankful.

What you will find in Costa Rica is that everyone is very helpful. They work hard, play hard, and are the friendliest people in the world. PURA VIDA.