Report: Contemporary Issues Impacting Costa Rica's Tourism Sector

This report examines the contemporary issues impacting the travel and tourism sector in Costa Rica, focusing on how these factors affect the country's economy and the operations of companies like Thompsons Holidays. The analysis covers various aspects, including the impact of economic conditions and currency fluctuations, the importance of environmental awareness and sustainability, and the role of low-cost carriers in shaping the market. The report highlights the need for strategic responses from the Costa Rican government and tourism businesses to address challenges and capitalize on opportunities. Strategies discussed include adapting to currency changes, promoting environmental conservation, leveraging technology for customer engagement, and maintaining competitive pricing. The report emphasizes the significance of cleanliness, safety, and infrastructure in attracting tourists and ensuring the long-term success of the tourism industry. The report also suggests the importance of proactive measures and regular reviews to maintain standards and ensure competitiveness in the market.

Proper strategy should be made by the Costa Rica government so that negative changes won't affect
the efficiency of the travel and tourism sector. Strategies which could be develop to respond the
changes are given below,
 Technology helps the tourism sector to grow exponentially as it is easy to for customer to
book their plans according to their comfort. Thompsons should make their application and
websites customer friendly so that they can book their plan accordingly. If the customer
engagement is good than chances of increase in sales of the product is also increase
(Vellas, 2016).
 Thompsons holidays should fluctuate their prices according to the changes of the currency.
They should offer different types of discounts and promotes sales promotion so to acquire
more customer. If the customer base of the company is high than the profit of the company
is also increase gradually.
 They should try to make their destination places unique and attractive by cleaning the
roads, improving the infrastructure, proper connectivity all over the country, basic
facilities so that open defecation would achieve etc. Tourism sectors plays an important
part in the GDP of Costa Rica and they should prevent their nature and beauty for their
survival (Cohen and et. al., 2014).
If the strategies are not properly implemented on the situation for they have made, then it is of no
use to make it. How strategies would help the travel and tourism business is explained below,
 If there is cleanliness in the places where tourist prefer to visit than it will attract more
customers from other countries. Destination like Sane Jose or La fortuna, San Carlos
should be properly maintained as these two places are the most attractive places in Costa
Rica. Thompsons holidays can create their products according to the places which are
preferred by the customer.
 If the environment of the Country is safe than tourist will prefer to visit it which leads to
increase in profit of Thompsons holidays. Numbers of tourist in any destination places is
directly proportionate to how safe their places are. If costa Rica places are safe from any
clients then it leads to high frequency of tourist consequently positive impact on the
balance sheet of Thompsons holidays.
To assess the enforced regulation and dominant
administration: This is a proactive measure of
monitoring and review. As there should be proper
and regular checking of implemented standards in
organisation.
There are different types of changes which can affect the travel and tourism sector which are
described below,
Inflation changes: Economic conditions are stable and good as Costa Rica have good
relations with America which helps them to do their business lucratively. Other than that,
Tourism sector accounts for 40% of GDP of Costa Rica which could be improve if proper
facilities are provided to the tourist. Most of the Costa Rica income is based on travel and tourism
and if it weakness than it creates a negative impact on Costa Rica economy. If the currency is
fluctuating than it will create the negative impact on the Thompsons holidays as less customer
will be prefer to visit Costa Rica.
Environmental awareness: Environment is the key factor in the success of the Costa
Rica tourism. Costa Rica should preserve their environment as it is the only way they can earn
money for their living. Thompsons holidays should motivate their employees and their customer
to save the environment (Sharpley and Telfer, 2014).
Low cost carrier: Company maintains their cost of product according to the
competition and their price. Their main aim is to provide the best quality of product with less
price to the customers. If the price of the product is low than there is a chances of increase in sales
thus positive impact on the balance sheet. If the product offered of Thompsons is better than other
competitor than they can gain the competitive advantage over others.
Technological factors: Technology plays an important part in the success of tourism
sector in Costa Rica. It helps the Thompsons holidays to make their plans and products according
to the customer needs and budget. With the help of website provided by the Thompsons, tourist
can modify their plans according to their comfort and budget thus helps in improving the
customer engagement with the tour operator.
Contemporary Issues in Travel and Tourism