Costa Rica: Why are things so expensive??
 

Am I missing something? I understand why Hawaii, Europe, etc. is expensive. The "cost of living is high". . .

And, yes, I know you can go the "hostel" route and "rough it" in CR BUT it seems that the moderate hotels, resorts, etc. offer much less than comparable priced places in Hawaii and other more developed countries. Same with moderate priced restaurants, transportation, tours, etc.

I really thought things would be a lot more inexpensive. My reasoning is that the "cost of living" must be cheaper that Hawaii and Europe.
My reasoning is obviously faulty.

I'm planning for a Jan trip and it is really an eye opener as to the prices! BUT we are so excited to be going!

BUT please help my to understand why things seem so "pricey" for what you get.

Organized tours can be pricey, but if you do things the locals do it's not bad. You can hike for free, go to the national parks for a few bucks, eat at local sodas cheaply. You can pay for expensive private transportation or take a cheaper Interbus shuttle or ride the local bus. You can cater your trip to fit your own budget. We always go in green season when the hotel rates are a lot cheaper.

My guess, and it is just a guess, is because of the huge numbers of visitors from the US who are willing to spend the money.

I haven't been to Costa Rica in over 10 years, so, obviously, I'm not current on prices and such.

I'm in Nicaragua at the moment. Good value here for lodging and food/drink. Tours still sort of pricy, but, cost of gasoline is high. And, you could do tours cheaper than we are.

It is a lot of inexpensive because reason is the cost of living

In my experience Costa Rica is not more expensive than Europe or Hawaii. It's surprisingly expensive but not quite that bad.

As for why, the cost of doing business in Costa Rica can be VERY high. Costa Rica consistently ranks near the bottom of the world in ease of doing business reports so while things like wages and health care are relatively inexpensive there are masses of bureaucracy that waste huge amounts of time...and time is money.

Other things that contribute to high prices are corruption and bribes (to cut through the red tape), the fact that manufactured goods (buses, bathroom fixtures etc.) have to be imported with high duties, poor infrastructure (the expensive bus gets beat to death in a year because the roads are a mess), special taxes on tourism, relatively high standard of living across the board, and as JeanH mentions the fact that there's a continuous stream of tourists willing to pay the prices.

Glad you're still excited!

Thanks for the replies. But doesn't it seems illogical that I am having dental work done in Costa Rica for less than half of the cost I would pay in the US BUT the "fun" part will have no savings over Hawaii where we usually spend January?

But, like I mentioned, I am still excited to be going to wonderful Costa Rica!

If you state what you are looking at and the cost, perhaps alternatives could be suggested.

Along the lines of your question, may I piggyback with one of my own:

How to maximize wildlife sightings and minimize costs?

Here's an interesting article from the Tico Times (last year so it's a bit dated but interesting none the less).
http://www.ticotimes.net/Business/Wh...bruary-04-2011
Well enough of the economics lesson! On a personal note, expensive is a relative term so maybe you can post what you'd like to spend, myself and others will chime in on the hidden gems that won't break the bank in the community you're planning to visit. Costa Rica can be as expensive or inexpensive as you want it to be for your travels. For example, purchasing items in the grocery store: always go for the local product, visit the fishmonger for the best price and best quality, go to the feria (farmer's market) for breakfast fruits and veggies. Hope it helps!

I'm also wondering where you are researching your hotels? This is not Costa Rica specific, as I know Mexico best (Puerto Vallarta specifically). At a glance on the internet the resorts look plenty expensive there. But if you get more into the local scene, the Mexican-local-owned independent hotels or apartments, than it is still very reasonable.

The reason high-end luxury resorts and beach places cost so much in Costa Rica is that travelers are willing to pay a premium for them.

However, if you're willing to do some research (a Fodors Guidebook and TripAdvisor is enough) you can find some great deals in the $100-200 price range in virtually every location. These are smaller, more intimate hotels that don't offer turn-down service, chocolates on the pillow etc, but do offer charm, atmosphere, and often integration with nature you won't find in Europe or even Hawaii.

I can find inexpensive places to stay in Hawaii too. I think it just takes a certain kind of research to get past the glossy, high-end, well-known places.

I have lived in many places around America, I can say you that Costa Rica have really expensive things but at the same time CR has really cheap things, what you have to do is search, by yourself the best option. Really important , in general Costa Rica Is NOT an expensive Country

Part of it is that you are going in snowbird season.

I heard a lot of complaints about inflation. One innkeeper told me that their business just barely supports their lifestyle. Even in low season I agree that Costa Rica is expensive for what you get, equal to US prices or higher (gas and food in particular).

Www.haciendabaru.com is a good value.

jerrywy - You didn't mention the dental care part initially but basically the same argument applies in reverse. The U.S. has the most expensive and least effective (value for the dollar) health care system in the world because of massive inefficiency, bribes and corruption (pharma industry, medicare and other insurance fraud), bureaucracy, legal red tape (malpractice etc.) and of course massive profit taking.

If I were to hazard a guess as to why it's healthcare that's plagued by these issues in the U.S. and the tourism industry that suffers in Costa Rica I'd say it's down to the consumers.

In U.S. healthcare everyone wants the best no matter what the cost (because they mistakenly think someone else is paying for it via medicare or other insurance) while in Costa Rica consumers in the private healthcare arena are paying out of pocket and want what's reasonable.

Of course this is a massive oversimplification but generally valid.

I'll second mlgb that Hacienda Baru is a great value and it's also one of my favorite places in all of Costa Rica.

Hacienda Baru is in Corcovado National Park in the Osa Penninsula, is that right?

We've reeled in a <b>Costa Rican Guide</b> (at least the screen name indicates as much) and I don't want to let him off the hook without a few more questions. That is if CostaRicaGuide is agreeable, of course.

What do you think of El Remanso Lodge?

Can you list a 12-night wildlife-centric itinerary around your favorite spots in Osa and add Tortuguero if you think Tortuguero is a good idea?

What do you think of Mawamba Lodge in Tortuguero if the goals are wildlife and value? I went there years ago and loved it.

Comment on best time for wildlife vs best value. Is there overlap in your opinion?

If the traveler is going solo would your responses change for any of the above?

And of course, the OP's question of '<i>why things seem so "pricey" for what you get'</i> is worth addressing too.

Even if your name is not Costaricaguide, your responses are valued.

Gracias.

We just stayed at a place we loved and paid about $115 a night. It's in an area teeming with wildlife. It had a comfy bed, hot shower, and good food. You can definitely get deals if you know where to look. We also stayed at a pretty high end spot, and we got 50% off with a Groupon. The other place we stayed offered us a green season rate. We barely got any rain, mostly at night. There are definitely good deals to be found. I find Costa Rica much more affordable than Hawaii.

Hacienda Baru is north west of the Osa Peninsula. Corcovado is inside the Osa Peninsula. The only place to spend the night inside Corcovado itself is Sirena ranger/biological research station.

I think Costa Rica is more expensive than it needs to be. Some of it is that they are charging what they think the market will bear. I honestly think many in the tourist industry here still have the same mindset they did 15-20 years ago when the neighboring countries were too dangerous to visit and Costa Rica had no competition. Now, Honduras, Panama, Guatemala, Nicaragua, and El Salvador are giving Costa Rica a run for its money, and I'm not sure all Costa Ricans have awakened to that fact.

There is a lot involved but basically I think it boils down to the fact that it is a Fantastic country to view wildlife, have terrific scenery & meet great people. It is close to the US and so travel is not too bad. So, they can get the higher prices.
The Recession in the US and the value of the Colone to the USD has hurt the local Ticos. The grocery prices have gone up, gas is costly and anything imported has a crazy amount of duty attached. The cost of "things" may go down if they open trade with China (China is trying their best to be very friendly & giving.)
I've visited all the countries that Jeff listed and while there are some beautiful aspects of each, I believe Costa Rica has it all. And they even have a name for it---Pura Vida!

Like!!!!!!

atravelynn

***What do you think of El Remanso Lodge?
It's very nice spot but I've never stayed so I can't comment on the food. A little pricey but all the nicer places in the neighborhood are because they are so remote.

***Can you list a 12-night wildlife-centric itinerary around your favorite spots in Osa and add Tortuguero if you think Tortuguero is a good idea?

Did that last February. Start with a few nights at Boca Sombrero then head to Dos Brazos and get a private guide to hike the Sendero de Oro overnight at Piedras Blancas camp then to Carate and continue down the beach to La Leona for another few nights. Up to Sirena then air Taxi Alfaro to Drake Bay and Aguila de Osa or any of the lodges there. Definite day trip to Isla Caño and one night with Tracy the Bug Lady. I wouldn't combine that trip with Tortuguero. Logistical nightmare.


***What do you think of Mawamba Lodge in Tortuguero if the goals are wildlife and value? I went there years ago and loved it.
Excellent.

***Comment on best time for wildlife vs best value. Is there overlap in your opinion?
If you're really interested in wildlife you're willing to put up with a little rain, some bugs, oppressive heat any time you can get there is the best time.

***If the traveler is going solo would your responses change for any of the above?
Obviously it's much more expensive (especially the charter flight and personal guides) if someone is solo so most of what I suggested is not feasible for a solo traveler unless they are rich.

OK. Back again (someone has to work to pay for the vacations LOL).
All I'm doing is comparing a $150/room in CR with a $150 room in Europe/Hawaii (condo). Or a $115/room or a $100/room.

I do extensive research and it seems that what we are paying for is the CR EXPERIENCE and not THE room. IF we didn't pay it then they wouldn't charge it? No "rocket science" there. Supply and demand. The "free market" system at work?

The prices in Costa Rica don't necessarily reflect supply and demand. The last three years have been pretty lean and traveler numbers have been down slightly (despite what the ICTs "statistics" say) and spending has been down significantly (mostly shorter trips, one week instead of two) but lodging, transportation and tour prices have actually increased on average. A lot of places have failed and gone out of business but very few have lowered prices.

Most places in Costa Rica are working on pretty thin margins rather than raking in huge profits as you're implying. If they could make a living with lower prices many would but generally the expenses are just too high.

I don't know about "huge" profits or who is or who isn't making money.

All I know is that my road trip in Aug 2012 in GB (Hawaii is actually cheaper for us) my ACTUAL spending AVERAGED around $300-$325/day. That's car, gas, rooms, admissions, food, etc. NO airfare.

My CR trip will probably be about the same--tours, rooms, food, transportation, etc. NO airfare.

I was just surprised by the costs, that's all. I don't know why I assumed that Costa Rica would be less expensive.

BUT, I am so EXCITED to be going!!!

Excited for you ;-) and guarantee your experience will be very different than Great Britain, Europe or Hawaii - hope you think it's worth it - most do.

One thing that Costa Rica has going for it is trained wildlife (particularly birding) guides. Of course you have to pay them, which increases the cost of a wildlife-oriented trip, as do the entrance and trail fees if you are going to a reserve.

But there are a few places which include a free guided tour or walk as part of the package. Some locations have their own on-site trails as well.

Costa Rica is a bit skimpy on mammal species but there are a few that are easy to see, four species of monkeys, the coati mundi, two sloths, racoons, agouti, and if lucky a few others. Also many frogs including the poison dart ones.

Tapir and cats are more of a crap shoot.

And of course the crocs!

Hacienda Baru
https://picasaweb.google.com/kiwifann/HaciendaBaru

Great photos mlgb - the green parrot snake looks like it just had a snack.

At first I misread you post as saying that Costa Rica has "trained wildlife" lol. I always thought there was something suspicious about the monkeys at Manuel Antonio ;-)

Thanks for the info.

"***If the traveler is going solo would your responses change for any of the above?
Obviously it's much more expensive (especially the charter flight and personal guides) if someone is solo so most of what I suggested is not feasible for a solo traveler unless they are rich."

The non-rich solo traveler is very willing to join others, does that make a difference and is it reasonable to arrive at a lodge by myself but do shared outings?

If the timeframe were stretched beyond 12 days, then would scheduled flights that cost less than a private charter work?

How do I hire the trained wildlife? ;)

Gracias again.

I'm not sure why you would need charter flights? Sansa and Nature Air have many flights a day to destinations all over the country. As a solo traveler often, I don't find I pay any more than others, but rarely pay any less either. Most places I have stayed are per night, for either 1 or 2 people. Most places offer day trips & outings, sometimes with just people from your hotel/lodge, sometimes they will pick up from other places as well.

@tully you have to use a charter from Carate or Sirena to Drake. There are no scheduled flights.

@atravelynn - I apologize. I didn't realize you were making a request for a possible solo itinerary. I thought of it more like what would be my ideal trip with those parameters. Our trek wasn't something that's commonly done and was way off the beaten path. It's highly unlikely you'll find anyone else doing it.

There are other routes across Corcovado that tourists use and you might be able to join a group. We had five people so a charter was actually economical but there are no scheduled flights to substitute. There are boats that go from Drake to Sirena and back every day and you could probably hitch a ride on one of them.

Because Costa Rica is one of the most expensive country in Central America. And because the country gets a lot of American tourists, tour operators and hotels increase their prices. And since you are going in January, that is high season which means prices are a little bit higher.

I've been in Costa Rica, now, for 20 years. I love the place and I wouldn't continue to stay here if I didn't. Throughout the '90s, Costa Rica had no tourism competition, so it got a real head start over its neighbors. But the more I cover all the neighboring countries as well as Mexico and several in South America for Fodor's, the more I see that there's life outside of Costa Rica. Some of these places are really offering good value for the money. Dare I say, better value than Costa Rica in some cases?

Costa Rica lacks the obvious history. There is no Antigua or Granada or Leon or Tikal or Copan here. It lacks Guatemala's and Panama's vibrant indigenous cultures. It has nothing comparable to Panama City's cosmopolitan vibe. Costa Rica does very well with what it has, but I think it's incorrect to say it has it all, and I think many in the tourist industry here still don't realize how much competition they have these days.

I still love the place, though. :)

costaricaguide - yes aware that there are no flights into Sirena, but did not get the sense that was what the poster was asking. Wanted to make clear that there are a lot of flights into/near many destinations in CR, since she/he doesn't have a concrete plan in place.

lynn - not sure of their schedule or your budget, but you may want to check out Stepout Experience. A poster here did a trip with them a couple of years ago and enjoyed it.

Jeff I still love it too :) However I am going to Nica. in a couple weeks! My budget for 10 days there is pretty much even what I've spent on previous 10 day trips to CR. So I guess it all is relative.

The trained wildlife are all at Manuel Antonio, free with admission :)

atravelynn are you only interested in Osa for this trip?

If you haven't done the San Gerardo de Dota area yet, I enjoyed Savegre Lodge and they have good guides (not the trained wildlife although some of the hummingbirds and quetzals are pretty cooperative).

I drove myself in CR which was an adventure but if I ever returned I would probably use drivers/shuttles instead.

http://www.savegre.com/

https://picasaweb.google.com/kiwifan...greAndQuetzals

Osa on a $150/night budget is tough but doable. Look at La Danta near Puerto Jimenez or a place like Finca Maresia near Drake Bay.

Or Las Caletas near Drake Bay....

OOOoh, can't wait for your trip report, tully!

mlgb, magnificent quetzals. What time of year were you there? And does it matter to see them?

CostaRicaGuide, I understand you had enough people for your own itinerary, flights and all.

I am interested in Osa just because I thought it offered some of the better wildlife opportunities.

Stepout, thanks for that reference.