Costa Rica Tourism Report Q2 2012

Costa Rica receives the majority of its tourist arrivals from the Americas, with the top three source
markets for visitors to the country being the US, Nicaragua and Canada. Tourism arrivals, after increasing
from 1.72mn in 2006 to 2.15mn in 2008, dipped to 1.93mn in 2009. The numbers picked up in 2010 and
2011, and are forecast to reach 2.48mn in 2012 before growing at an average rate of 6.5% until the end of
our forecast period to 2016.

Health tourism brings visitors to the country and it is an area where Costa Rica can continue to develop its
infrastructure to tap further into a growing market. Already known as a destination for medical tourists,
Costa Rica is competing with newer destinations such as Puerto Rico for the millions of Americans, and
people from other countries, who travel abroad for medical care. In 2010, medical tourism generated
US$250mn in revenue for Costa Rica’s health services industry, according to the Council for
International Promotion of Costa Rica Medicine.

In the same vein as health tourism, Costa Rica is making retirement communities a priority to keep visitor
numbers up. The country is targeting North American pensioners and is doing away with the red tape of
residence permits, especially for those in good health. Tax exemptions on real estate and vehicles are also
being offered. The campaign is being run by the Costa Rica Tourism Board (Instituto Costarricense de
Turismo, ICT). The Ministry of Competitiveness has already identified eight locations for retirement
communities, focusing on areas with natural beauty, tourist attractions and close proximity to hospitals.
Another tourism draw for Costa Rica is spa and wellbeing vacations. The country has been recognised by
TripAdvisor users as one of the best places in Central and South America to enjoy spa getaways. Some
areas that wellbeing tourists are visiting are the hot springs near the Arenal Volcano, the beaches of the
Nicoya Peninsula (mainly for its yoga retreats) and the back-to-nature settings of the Central Valley
region.

The planned regeneration of the province of Limón, on the less frequently visited Caribbean coast, has the
potential to put upward pressure on inbound tourism numbers. Puerto Limón was once the town of the
United Fruit Company (the predecessor of Chiquita Brands International) and the province has two
national parks. The parks have the potential to be a large tourism driver and a tour by Wildland
Adventures was named one of the 25 Best New Trips for 2010 by National Geographic Adventure
magazine. In our view, developing tourism infrastructure in the region is likely to unlock great potential.

In 2010, the Inter-American Development Bank (IADB) approved grants of US$1.1mn and US$1.5mn
to
support two parts of the Mesoamerica Pacific Corridor Project. The corridor runs through seven countries
from Mexico to Panama. The Optimisation of Border Crossings Pacific Corridor grant will be used to
improve passage over borders and the Adjustment, Maintenance and Operation of the Pacific Corridor
grant will improve road infrastructure over 2015-2030. The project aims to develop a quicker route
between Mexico and Panama. BMI believes that as well as fostering trade in the region, the development
of infrastructure has the potential to increase tourism as travel will be much more feasible.