Effective promotion on a undersized budget is the predicament that most small countries face, when introducing their diverse and attractive product lines to potential travel markets such as Europe. However, converting that limitation into an advantage is the proposed objective of the Central American nations who three years ago united in an effort launch their brand -“Centroamerica…so small so great” -, and to thereby market themselves as a single tourism destination.

What have been the results of this effort? Entrepreneurs such as Mr. Gonzalo Vargas, president of the National Chamber of Tourism of Costa Rica, believe that there is still more advancement to be made and it is too premature for an evaluation, but some benefits are becoming apparent.

1. In regards to Costa Rica, has this regional branding lived up to expectations?

The results have yet to reach the expectations of the private sector, but they are positive as far as the number of inbound Europeans to the country; and in this regard, we have grown nearly 15%. However, in other countries of the region there are no matching results. Such is the case of Guatemala that in spite of having direct flights from Europe is experiencing a decrease in the arrival of European visitation.

Still, it is necessary to formulate enhancements, but in our case the balance is positive, the country has learned and perceived enormous benefits as a result of the marketing of a Multi-destination; which also facilitates a number of promotion initiatives that as an individual country would not be possible.

2. What actions are necessary to achieve greater integration and awareness of Central America in Europe?

There must be improved organization, including the creation of internal communications committee as well as the elimination of certain impediments that hinder the participation of more tourism companies in industry travel marts and fairs. Interaction between this committee and the rest of the private sector must be improved, as many companies have professed a total lack of knowledge in regards to the activities of the promotional office in Madrid.

3. You mentioned the promotional office in Madrid also known as CATA (Central American Tourism Agency). Do you feel that it has not fulfilled its objectives?

CATA was formed by presidential decree. There is no doubt that each country will do what is necessary to ensure that this project has the required time to prove its value for the region. Three years however, is insufficient time for a final assessment. Obviously, as is normal in ambitious projects such as this, there is room for revisions in areas such as operations, achieved objectives and the goals set at the start. We are precisely in that revision phase, which includes the strengthening of CATA’s operations and a redefinition of objectives and the establishment of measures of success.

4. Has any segment been neglected?

None of the segments have been neglected, marketing continues to be focused toward the principal products of the region: nature and adventure; sun and sand; ecotourism; rural tourism and culture. In the case of Costa Rica, its greatest asset for the European market continues to be its diversity of products based on nature as its common denominator which is one of the primary reasons why Europeans visit the region and especially Costa Rica.

5. Are the economic resources invested by each country sufficient to achieve the goal of opening a new market and transforming it into the primary market of Central America?

I’m not suer about the other countries but in our case, Costa Rica invests a relatively small amount towards multi-destination, the larger investment is in individual actions that the country conducts in Europe. While it is true that due to distance Europeans maintain a longer average stay as opposed to other visitors, they do not necessarily spend more on their vacation. The United States visitor has a shorter average stay, but in absolute terms the market represents three times more than the European at similar levels of cost.

6. Many Europeans complain that Costa Rica is an expensive destination and the in spite of this, the roads are in bad condition and there is a certain level of insecurity.
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The roads are in poor conditions because there is no investment in them and insecurity persists because there are not enough policemen trained to service visitors.
In reality, Costa Rica has achieved world standing based on its natural wealth, diversity and quality. We have not differentiated based on price but rather quality. The problem arises when you offer a product that in quality does not compare accordingly with its asking price and to make matters worse, poor conditions in diverse types of infrastructure, highways, ports, airports and security persist. However, if the service is of good quality, what is wrong with pricing it at what it is worth? There is no sin in being successful and receiving what the service is worth. Exit surveys practiced on departing tourists reveal that it is indeed not the price which is most criticized, but rather other aspects that affect our image as world class destination.
7. In the specific case of Costa Rica, we have yet to position ourselves in the market as would like… What’s missing?

Costa Rica is a well known and valued destination in the European market; just look at the stands of ‘tico’ companies at the fairs in which we participate as a multi-destination. Costa Rica is the magnet for which a high percentage of tourists who visit the region, decide to come to Central America. In spite of this, we must continue efforts towards increasing the number of European visitors, especially in the attraction of visitors with elevated demographic profiles more, who also value Costa Rican products and are inclined to pay for the diversity that the country offers.