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New Strategies for Tourism in a Economy DownTurn

22/02/10
By: Walter Niehaus
Source: Cámara Costarricense de Hoteles

The life signs of the international economy continue to be ambiguous and the panorama for the recovery process - while it appears to have begun - is reserved, at least as far as speed is concerned. on the one hand, the principal stock markets tend to be moving upwards, a signal that there is confidence in the future and perhaps the worst of the crisis has passed. On the other hand, the unemployment numbers in the united States this past September reached highs not seen since 1983, setting at 9.8 percent.

This is worriesome to the tourism sector in that the unemployment means fewer resources available for traveling. Added to that, according to the International Monetary Fund, the United States economy - our chief source of tourism dollars - will contract by 2.6 percent this year, although 2010 is predicted to show a moderate reanimation. Like it or not, the former figure will impact tourism in Costa Rica in the next high season.

So, even if the economy recovery in the U.S. is accelerated, its citizens will still need time to feel it in their pocketbooks.

First, many will need to find jobs for stability; then they will have to worry about paying their most urgent and immediate debts, after that, they must think about saving and investments, and, finally, they can then opt for vacations, perhaps even abroad. The vast majority will think about international travel only after they stabiliza their household economies and secure their futures.

Even if tourism is one of the first industries to recover, the recuperation will not be from one day to the next. An increase in the number of tourist arrivals does not necessarily translate into a hike in how long they stay or in how much is spent per visitor. Income generated by tourism may well rise at a rate slower than that of the number of arrivals. So, statistics will tend to show less duration in country and more careful spending. The world economy has changed with it. Today it is incumbent upon all to adapt to those changes.

Statistics have repeatedly shown a very relevant change in the habits of tourists when they make reservations. In the past, they made reservations with a year or six months lead timeon their trips.

Now, this lead time has been reduced to a month or less. This data reveals that decisions about vacations are made at the last minute and are influenced increasingly by the Internet. With increasing frequency, tourists are planning vacations in a direct, personal form with less dependence on travel agencies. The crisis has made Internet stronger, along with a "do-it-yourself" strategy.

Taking into the account the above, it becomes clear that tourism marketing strategies and their offerings must adjust to the new reality. The ease of access and the increased use of virtual media make an aggressive presence by this country in those media necessary. The importance of web sites as tool for tourists making their plans cannot be denied, so any new advertising campaing must take tat into account. Equally, the Costa Rica Tourism Institu(ICT) must offer training programs in strategies and tactics on how to market tourism in these times. It must, in short, spread knowledge of how to use online technology.

This guiding tourism organization must strengthen its office of research and the development of new offerings, place emphasis on marketing "intelligence" and explore new, more innovative and creative forms of marketing to put the Costa Rican tourism industry in the vanguard of new technological advances. Results and the knowledge gained from those results must be made available to all, especially to the small-and medium-sezed companies that generally do not have the resources to make these kinds of investments. The backing of the state in research, development and transfer of knowledge is vital if Costa Rica is to remain a world leader in tourism.

The above efforts must be accompanied by refreshing the countrys image through marketing and promotion in traditional media. Equally important is emphasizing the necessity of pushing tourism "caravans" and training tourism agents in how to attract tourists to Costa Rica, using these new tools of marketing technology.

Taking into account the modest scenario for tourism for the rest of this year and the timid predictions for 2010, it will be the high season of 2011 before we begin to see signs of recuperation in this economic sector. This begin the case, we should take necessary action and adapt ourserlves to the demands of new technology.

Our tourism policies must remain focused on the future. Investment must be on research and product development, markets and use of technology. Support for the industry must focus on the small and mid-sized companies, and the opportunities must be for everyone.

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