QCOSTARICA — The lowering of airfares to Central America and the Dominican Republic, of between $100 and $125 round trip, would not change the focus of Costa Rican tourism, which will continue to focus on the quality and added value of its offerings rather than competing on price.
This was confirmed by industry representatives, who believe that attracting visitors does not depend exclusively on the cost of airfares.
The warning was issued by industry representatives before the announcement on Tuesday, March 18, of the rescinding of the veto by legislators against President Rodrigo Chaves, who opposes the plan due to the impact it would have on the tourism sector.
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To oppose the executive branch’s decision and move forward with the initiative, legislators need to secure 38 votes in the plenary session.
“Competition already exists, and this situation doesn’t make a significant difference. The ICT has indicated that it could impact the average stay; however, we could see this until the reciprocity of the law between countries is applied. Furthermore, we shouldn’t readjust our rates just to compete on price.
“Our focus is not on competing on costs, but on the quality of the tourism product we offer. We differentiate ourselves by the added value we provide to visitors, and travelers who choose our destination do so precisely because of the unique experience they find here,” said Shirley Calvo, executive director of the National Chamber of Tourism (Canatur).
Read more: What’s happening with tourism in Costa Rica?
In early February, Legislators approved, in its second and final reading, the initiative that establishes maximum fares of between US$50 and US$60 (US$100 and US$120 for round-trips) for one-way airfares in the region, in addition to reducing the departure tax from US$27 to US$14 for these destinations.
However, the application of these benefits is subject to conditions, such as reciprocity of the measure and limits on additional flight costs.
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Read more: Rodrigo Chaves vetoes bill for low-cost flights in Central America
For his part, Christian Doñas, president of Proimagen Costa Rica, emphasized that the decision to reduce prices will depend on each company and its commercial strategy, but insisted that the value of the Costa Rican tourism product remains its greatest strength.
“Rather than focusing solely on price competition, it is important to highlight the value of the tourism product that Costa Rica offers compared to other Central American destinations,” the business leader noted.
Doñas also emphasized that tourists’ decision to travel to Costa Rica is often driven by specific interests in the country.
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“Tourists who choose to visit Costa Rica do so motivated by a genuine interest in the country. It cannot be assumed that they plan to visit other destinations in the region. Historically, travelers have been drawn to the natural beauty, biodiversity, and unique experiences that the country offers,” he explained.
The Costa Rican tourism industry, one of the country’s main sources of income, remains steadfast in its strategy of offering differentiated and sustainable experiences, regardless of the reduction in flight costs to other destinations in the region.
Secure Employment
Meanwhile, legislator Eliécer Feinzaig, the bill’s proponent and a representative from the Progressive Liberal Party, stated that the initiative to reduce the cost of flights to Central America and the Dominican Republic will not affect employment in Costa Rica, but could actually boost it.
The measure would facilitate business opportunities for SMEs and independent workers, which in turn would boost sectors such as tourism and commerce.
Feinzaig rejects the notion that the tourism crisis in Costa Rica is linked to the possibility of more affordable flights within the region.
“No, not at all. On the contrary, this could generate more business opportunities in Costa Rica for SMEs and independent workers, which could ultimately create new employment opportunities for more Costa Ricans. It could also generate more visitors from Central Americans, and this could increase demand for hotel rooms and other services provided by the tourism industry. So, rather, the expected net result would be an increase in employment,” the legislator said.
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The conditions for low fares
The proposal for low airfares in the region establishes two conditions for travelers:
- Taxes and airport fees must not exceed $23, both in Costa Rica and in the destination country.
- The net fare of the flight (which only includes the cost of the seat and one personal item under the seat) must not exceed US$100 for round-trip flights within Central America, or US$50 for one-way flights and not exceed US$120 for round-trip flights to the Dominican Republic, or US$60 for one-way flights.
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