Tourism and real estate drive investment

Both activities contribute 50% of the flow of dollars.

The development of large tourism projects and acquisition of luxury residences by foreigners is what is stimulating the flow of foreign direct investment (FDI) to our country.

The country received $ 328 million investment in the tourism sector last year, more than double what it received in 2006. While in the real estate sector received $ 638 million, 71% more than in the previous period.

The performance of both sectors leads to the belief that the momentum will be maintained this year; although the flow of foreign exchange will be a bit lower than 2007.

These are the main findings of the latest study on FDI in Costa Rica 2007-2008, prepared by the Interagency Group on FDI and published by the Central Bank last week.

The report indicates that the country received $ 1.884 million in investment last year, 28% more than in 2006. In addition to projected $ 1640 million this year, a figure that is consistent with the estimate made by the Central and at the end of January.

This reduction is justified, according to the document that are not considering major acquisitions of domestic companies by foreigners and the fact that the United States financial crisis and slowing economy that would reduce the flow of FDI into the country.

The document stresses that the historical flow of foreign exchange that the country received in 2007 enabled him to finance 1.2 times the current account deficit (difference between entry and exit of U.S. dollars).

But this element creates a headache for the management of monetary policy of the Central as requiring the entity to buy more dollars and colones drop to the economy, causing inflation.

Engines

In the case of the real estate sector, the report highlights the investment they make in foreign homes, condos, villas, land and commercial premises, mainly in coastal areas.

$1640 million which is expected to receive foreign direct investment in the country this year.

If a revision is made by province, it is noted that Puntarenas ($ 214 million), Guanacaste ($ 127 million) and Alajuela ($ 103 million) received the largest flows of foreign exchange.

In Puntarenas, is considered the Hacienda El Dorado project in Golfito. In Guanacaste, the movement is related to real estate development in areas like Hermosa, El Coco, Ocotal, Conchal, Tamarindo, Samara and the Gulf of Papagayo, linked to major tourism projects.

Alajuela, striking the purchase of land in La Fortuna de San Carlos.

Meanwhile, the paper highlights the developments on a smaller scale in Escazú and Santa Ana, San José.

It should be noted that the main buyers of property from United States (55%), followed by Canada (7.5%), Germany (4.8%), Italy (3.9%), Portugal (2.9 %) and France (2.7%).

In the case of tourism, the Costa Rican Tourism Institute (ICT) in 2007 indicated that the projects handled channeled $ 325 million. These include the arrival of new international hotel chains (including Hilton and Hyatt) and the renewal of local hotels.

It includes the opening of the Natural de la Cultura Agropecuaria (Panace) in San Mateo de Alajuela.

The dynamism in this sector is closely linked to the increased number of visitors that the country receives. Last year reached about 1.9 million tourists (175,000 more than in 2006), which made revenues of $ 1.921 million.

Unit USA

Seeing the total FDI, the report confirms that the main source of these resources continues to be North America, as it provides nearly 60% of the amount received last year. De esa cifra, Estados Unidos mandó el 90%. Of that figure, the United States sent 90%.

Europe, meanwhile, contributed 26%, with Holland, Germany, Switzerland, Spain, Italy, France and England the main sources.

Highlights the case of Holland, who was the supplier of 50% of that figure due to the acquisition made by the signing of Aliaxis Durman Esquivel.

In this sense, the industrial sector remains one of the most dynamic in attracting FDI, with $ 691 million.