Playas del Coco residents join to produce an ocean mural
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Special to A.M. Costa Rica staff
There is more color in Playas del Coco now after a community mural event Sunday. To celebrate World Ocean Day residents turned out to put an ocean mural on the Rich Coast Diving Center.
Carlos Hiller, an artist specializing in underwater scenes, was in Playas del Coco and directed the work on the mural. Several other events, including a beach clean-up, were sponsored by the Programa Restauración de Tortugas Marinas, a non-profit organization founded in 1997.
The marine conservation and research organization works
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to protect ocean resources and promote sustainable fisheries policies in Costa Rica and Central America.
Originally from Argentina, Hiller settled in Costa Rica over 15 years ago. Hiller said he wanted to participate in Coco's festivities because he wants to "help educate the children who are the workforce of tomorrow and the future protectors of our environment."
After the mural was finished, a representative from the World Flag Project displayed one of the world flags for the children. The concept and design of The World Flag was developed in 1988. The flag incorporates the individual flags of each of the U.N. member states. |
Playas del Coco families to honor ocean on its day June 8
By the A.M. Costa Rica staff
Sharks, sand and all things related to the sea will be the focus of celebrations for World Ocean Day June 8. A weekend of activities for families in Playas del Coco will mark the day, which was started in 1992 as a way for people to consider and appreciate the products and natural diversity that the world's oceans provide.
“Sharkwater,” the film that includes footage of Costa Rica's Isla del Coco in its condemnation of shark-finning, will be screened at Ocotal Beach Resort June 7, followed by a presentation about the much-feared fish by marine conservation charity Programa Restauracion de Tortugas Marinas. Children from the local school will be helping out with a beach clean-up from 9 a.m. June 8. Fun activities such as making sand sculptures and ocean art take place afterwards until 3 p.m on the strip of beach by the town's park, and people can watch as Carlos Hiller paints an ocean-themed mural on the side of the Rich Coast Diving building.
Live music, drinks and snacks with an art auction take place from 3 p.m. to 5 p.m. to raise money for Projecto de Luz, a children's charity which is also organizing many of the activities.
More information and reservations for the shark presentation can be made by e-mailing medioambiente@ocotalresort.com.
Marina plan for Playas del Coco get official approval
By Helen Thompson
of the A.M. Costa Rica staff
Plans for a marina in Playas del Coco have finally been approved after local small- and medium-sized businesses fought for years to gain permission for the project.
“Marina El Coco” is an important iniciative for the progress of the northern Guanacaste zone, said Maureen Ballestero Vargas, the Guanacaste deputy for Partido Liberación Nacional, who presented the plans.
A total of $24 million has been invested in the marina by the small businesses that make up the Asociación para el Desarrollo de la Marina de Playas del Coco, headed by Rafael Villegas Castro. It will be built near Punta Centinela, and association spokespeople indicated that the finished product will be public rather than private.
Ms. Vargas said that she found out about the struggle for approval of the marina when she took up her position two years ago, and she has since helped to accelerate the process.
“The capital for this project is all from Costa Rican companies – it is a national investment,” said Ms. Vargas. “We already have things such as customs and immigration booths, but they're very badly attended, and the marina will require improvement in that. There has been some opposition by mainly environmental groups, but this marina is very well planned. The head of the development association is himself a marine biologist, and the project has all the environmental viability permits.”
Plans were approved by the Comisión Interinstitucional de Marinas y Atracaderos and the Secretaria Técnica Nacional Ambiental in the last couple of months.
The Municipalidad de Carrillo is now in charge of authorizing the project to be put out for concession. Banco Nacional is in consultation with the association with a view to raising the capital to carry out the construction work.
“The marina means everything for everything here,” said Olman Solis Segura, who owns sport-fishing shop Blue Marlin Service in Playas del Coco. “We need a marina with all the new resorts that are already here and that want to come here. It will open up business. My only worry is that I might have to buy my fuel from the marina and they'll charge more for it.”
Anna Paola Stefanoni, of real estate project Playas de las Palmas, agreed, saying that clients will be able to reach their properties with more ease. “From the ecological point of view, the bay is already full of boats,” said Stefanoni. “This just means people will have a good place to put them.”
A second marina was also said to be in the planning stages for the Coco area. Developers interested in building “Marina Punta Cacique” approached the marina commission about a general consultation for the project.
“They have not presented any further plans since they first approached us over a year ago,” said Oscar Villalobos, head of the marina commission, which is part of the Insituto Costarricense de Turismo. “Now that this project looks like it will go ahead, it is doubtful that Punta Cacique will continue, as it would be built on the same site.”
Government decrees controls on N. Pacific growth
By the A.M. Costa Rica staff
The central government decreed what amounts to a zoning plan for the whole northern Pacific coast Wednesday in places where local plans do not exist.
A summary from Casa Presidencial said that the goal was to establish density limits for construction and set the maximum height for buildings.
The measure also will have the effect of permitting coastal development to go ahead in the absence of a local plan regulador. This has been a stumbling block for many coastal projects.
The decree, which has the force of law, regulates land up to 4 kms. (about 2.5 miles) for the coast. It defines its area of coverage as the Región Chorotega, basically the northwest coast of the country.
The package of decrees was signed by President Óscar Arias Sánchez; Rodrigo Arias, minister of the Presidencia; Carlos Ricardo Benavides, minister of Turismo; Fernando Zumbado, minister of Vivienda y Asentamientos Humanos; Jorge Woodbridge, minister of Competitividad, and Roberto Dobles, minister of Ambiente y Energía.
Officials said that the Cámara de la Construcción, the Colegio Federado de Ingenieros y Arquitectos and the Consejo de Desarrollo Inmobiliario were consulted in advance.
The decrees are supposed to endure for four years in places where the land is not covered by a plan regulador, basically a zoning and development plan.
The decrees set out four areas. The first is the public area of the Zona Marítimo Terrestre, the maritime zone. This is the 50 meters above the high tide line. Except for specialized ocean related facilities like docks, construction is forbidden here.
The next 150 meters, the restricted zone, is where developers can obtain concessions or long-term leases from the municipality and the Instituto Costarricense de Turismo.
The decrees establish two more zones. One has been called the intermedia, and this includes the next 800 meters after the restricted zone. The fourth zone is all the land from the limit of the intermedia to 4 kms. above mean high tide, in other words a strip 3 kms. wide.
According to the decrees, developments within the restricted zone can be no taller than 16 meters (52.5 feet). Casa Presidencial said this was three floors.
Buildings in the intermedia can be 24 meters tall, nearly 79 feet. Casa Presidencial said this was five floors. The final zone farthest from the beach can have structures 36 meters tall (118 feet). Casa Presidencial described this as eight floors.
The actual height rather than the number of floors seems to be the controlling factor in the decrees.
The text of the decrees will be published in the official La Gaceta.
Troubled pop star visits
as guest of Mel Gibson
By the A.M. Costa Rica staff
The tabloids have their long-lenses trained on Costa Rica once again this weekend, as Mel Gibson flies in with a special celebrity guest: Britney Spears.
The troubled pop singer arrived in Costa Rica Thursday, along with Gibson and his wife, Robin, who are two of Costa Rica's highest-profile property owners. Ms. Spears' father was the fourth person in the group.
Gibson reportedly befriended Ms. Spears earlier this year, as the two used to be neighbors in California. Ms. Spears, who became famous at the tender age of 16 with her song “. . . . Baby One More Time,” has kept herself in the headlines recently with a divorce, drug abuse, an inadvisable shaved head and the loss of a custody battle for her two children to ex-husband Kevin Federline.
Gibson is said to have reached out to her during her darkest hours, and is now hosting her in his recently-acquired beach home in Playa Barrigona, near Sámara on the south Guanacaste coast.
The group took a private jet from the United States to San Jose's Juan Santamaría airport, arriving just after 3:15 p.m. for a connection to Carrillo airport.
Government decrees controls on N. Pacific growth
By the A.M. Costa Rica staff
The central government decreed what amounts to a zoning plan for the whole northern Pacific coast Wednesday in places where local plans do not exist.
A summary from Casa Presidencial said that the goal was to establish density limits for construction and set the maximum height for buildings.
The measure also will have the effect of permitting coastal development to go ahead in the absence of a local plan regulador. This has been a stumbling block for many coastal projects.
The decree, which has the force of law, regulates land up to 4 kms. (about 2.5 miles) for the coast. It defines its area of coverage as the Región Chorotega, basically the northwest coast of the country.
The package of decrees was signed by President Óscar Arias Sánchez; Rodrigo Arias, minister of the Presidencia; Carlos Ricardo Benavides, minister of Turismo; Fernando Zumbado, minister of Vivienda y Asentamientos Humanos; Jorge Woodbridge, minister of Competitividad, and Roberto Dobles, minister of Ambiente y Energía.
Officials said that the Cámara de la Construcción, the Colegio Federado de Ingenieros y Arquitectos and the Consejo de Desarrollo Inmobiliario were consulted in advance.
The decrees are supposed to endure for four years in places where the land is not covered by a plan regulador, basically a zoning and development plan.
The decrees set out four areas. The first is the public area of the Zona Marítimo Terrestre, the maritime zone. This is the 50 meters above the high tide line. Except for specialized ocean related facilities like docks, construction is forbidden here.
The next 150 meters, the restricted zone, is where developers can obtain concessions or long-term leases from the municipality and the Instituto Costarricense de Turismo.
The decrees establish two more zones. One has been called the intermedia, and this includes the next 800 meters after the restricted zone. The fourth zone is all the land from the limit of the intermedia to 4 kms. above mean high tide, in other words a strip 3 kms. wide.
According to the decrees, developments within the restricted zone can be no taller than 16 meters (52.5 feet). Casa Presidencial said this was three floors.
Buildings in the intermedia can be 24 meters tall, nearly 79 feet. Casa Presidencial said this was five floors. The final zone farthest from the beach can have structures 36 meters tall (118 feet). Casa Presidencial described this as eight floors.
The actual height rather than the number of floors seems to be the controlling factor in the decrees.
The text of the decrees will be published in the official La Gaceta.
By Ralph Nicholson
US Fears Of Recession Not Felt At Home
Costa Rica’s economy remains strong and in the short to medium term is unlikely to be affected by the economic woes hitting the United States, economists said this week.
“It (Costa Rica’s economy) remains strong despite what is happening in the US,” said Alfredo Ortuño Victory, the Director of the Central American Bank for Economic Integration (CABEI), in San José.
“Our bank is doing a very extensive research and analysis, how the sub-prime mortgage market is, or will be affecting this region, especially Costa Rica and Panama,” Mr Ortuño said.
“So far it has not affected us, that we can assess, nor will it in the immediate future.”
The assessment by CABEI was reiterated by Fernando Víquez, from Scotiabank, who described the state of the country’s economy as “unprecedented.”
“The economy is great,” he added.
“I believe the state of the economy is a matter of the direct investment from abroad in the real estate business,” Mr Víquez said. “Not only do you have building along the beaches, but you also have a lot of companies coming to the cities, that need space in which to operate.
“The pharmaceuticals, software, the intels, the intel providers; it is a strategy that has been built over ten or 15 years, to bring a cluster of foreign companies into the country.”
The bankers’ reassurances came amid a flurry of bad news from the US.
Figures released this week show the US economy barely grew in the fourth quarter of 2007, pulled down by a worsening slump in housing and heightened caution by consumers and businesses.
The US Commerce Department reported a 0.6 per cent annualized growth rate in Gross Domestic Product (GDP), yet many economists had predicted growth of up to 1.1 per cent.
In other news the Federal Reserve cut US interest rates by a hefty three quarter-percentage point on Wednesday as part of an ongoing aggressive effort to halt the sharp slowdown in an economy.
The Fed’s action takes the bellwether federal funds rate to three percent, the lowest since June 2005, and came just eight days after the central bank slashed rates by three-quarters of a point.
And consumers increased their spending at the weakest pace in six months while applications for unemployment benefits soared last week, two more signs the economy is weakening, and further fueling fears of a recession.
Recession is defined as a decline in a country’s Gross Domestic Product, or negative real economic growth, for two or more successive quarters of a year.
However, local economists point to an excess of cash throughout the world, in the past three or four years, which they say has been making its way to Costa Rica as property investments and second homes.
“I believe that in 2008 we will continue to get investors in second homes,” argues the Scotiabank’s Víquez. “Either those projects that are already under construction or those that are about to start. Costa Rica is still considered to be a good real estate investment.”
“Let us put it into perspective,” says CABEI’s Ortuño. “There is no financial institution that I am aware of that has any exposure up there.
“The sub-prime mortgage market is unlikely to affect us. One thing that one has to bare in mind is that Costa Rica kind of leap-jumped in the way it developed tourism.
(A sub-prime mortgage lender is one lending to borrowers who do not qualify for loans from mainstream lenders. By definition there is more risk attached.)
“Thirty years ago we were discovered by backpackers who put us on the map,” Mr Ortuño adds.
“What should have happened was that which happened in Mexico and in Spain, where smaller scale developments should have started. This didn’t happen, Costa Rica passed from the backpackers to the mega-projects.
“Now everyone is benchmarking with The Four Seasons Hotel (a luxury resort development in Guanacaste’s north).”
Luis Mesalles Jorba, an economist with Ecoanálisis, a group of financial consultants, agrees, saying the situation is probably not as bad as people predict.
“Most of the investment in Costa Rica is of the prime market, not the sub-prime market,” he explains. “There will be some effect on the Costa Rican economy, but the investors here are more the prime market people who don’t have to ask for credit.”
And there is Costa Rica’s inventory — it’s small. There is limited real estate, in what is a small country.
Jorge Madrigal, the director of the Economics Division for the Central Bank of Costa Rica, also points to the purchasing power of foreign investors.
“My personal perception is the majority of those investing in Costa Rica are North Americans with high taxes and a very high purchasing power,” he said. “These are probably not the types who are going to be very hard-hit by an eventual crisis in the US.”
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CONSTRUCTION: Still going strong, say analysts. |
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There is a threshold, however, below which investors are using borrowed money, and they are more likely to be affected.
“I don’t know what that threshold is — $400,000, $500,000 or even a million dollars,” says Mr Mesalles. “The lower the price is within the housing market the more the effect of the US economy will be felt. The higher you go with land and housing prices, the less the effect will be felt.”
Despite the assurances, Costa Rica is far from immune to problems in the US.
Economists will continue to monitor a number of key sectors, chief among them, exports from Costa Rica; a hardening of US credit conditions, which makes money more difficult to get; the price of oil which sits at about $91 a barrel; and this country’s tourism industry.
The concerns lie in the statistics. Forty-one per cent of Costa Rica’s exports go to the US, while a big percentage of the remainder are value add-ons, going north via other Central American countries.
Direct investment from the US has dropped from 70 per cent in 2004 and 2005 to 50 per cent in 2006.
And 58% of foreign tourists are from the US.
“Less growth means less demand for Costa Rican exports,” says Mr Mesalles. “The export sector has been one of the fastest growing in Costa Rica in the past ten years.”
“We are a very small economy and intrinsically linked to the international markets,” says the Central Bank’s Madrigal. “Therefore, whatever behavior occurs in the big markets brings us repercussions.”
“It will impact us in some way,” says Scotiabank’s Víquez, “but I do not believe that will happen in 2008. “Of course it all depends upon what the US economy will do, but you have to look at our exports — what are the pearls.
“We are now exporting to sectors other than just bananas and coffee,” he adds. “We have changed out export platform. We have diversified in some ways and that is one way to get some insurance against what might happen.”
The Instituto Costarricense de Turismo (ICT) is not waiting to see what will happen and is undertaking an aggressive advertising campaign to shore up tourism to the country.
The Minister of Tourism, Carlos Ricardo Benavides, announced last week the ICT would invest $14 million in a promotional campaign, telling North Americans Costa Rica, as an exotic destination, is closer and cheaper than say Thailand, or other Asian countries.
An experienced appraiser addresses issue of property value
By Angela Jiménez Rocha*
Special to A.M. Costa Rica
After 22 years of watching prices and preparing many thousands of appraisals for the banks here along with private clients, I am amazed at the increase in prices asked at the current time. However, the trend seems to be going up, and the construction costs from well known, reputable builders also have risen greatly.
If we consider the Central Valley, especially areas like Escazú and the newly hot area of Santa Ana, the price per square meter for nicely finished condos with amenities and security is $1,100 and up. For something like a Trump Tower look-alike, the price is now $2,000 per square meter.
Today it is hard to find raw land for $100 in decent areas in the Central Valley, and many developments are asking $150 to $200 per square meter for land. One of the well known golf course communities was $50 meter 10 years ago and now $250 to $300. 10 years ago Santa Ana was a sleepy little town where land prices were $10 to $30 a meter. Today it is booming with new condo developments where land is $150 a meter.
We are owners of condos and also an adviser to Avalon, which is one of the great, new condo developments in Santa Ana. This developer has had such great success that people are standing in line to snap up any new project he has in advance of construction. For most of the new projects buyers are asked to put up 20 percent for pre-sale before construction starts. This is a risk unless the buyer checks carefully who the developer is and makes sure there is a fiduciary or bond to guarantee completion.
But why is the demand so great? Costa Rica really has become a boom area for much more than North American retirement and second-home buyers. The country is attracting Europeans like never before, and thousands of rich people from places like Venezuela. The prince of Saudi Arabia just flew in and announced that he is increasing his stake in Costa Rica where he already was major shareholder of the Four Seasons complex. Steve Case of AOL-Time Warner fame announced he was starting a new $800 million project. Famous hotel chains have been lining up from all over the world starting new projects.
The cold hard facts are 78 million baby boomers are going to retire soon, and Costa Rica is on the top of the list for those wanting to leave the States. There is simply not enough space any longer in the Central Valley to accommodate even 1 percent of these potential new arrivals.
What the new comer to Costa Rica needs to understand is that there is a two tiered market here. Housing like you see in the States and the local Tico market. Zoning for all practical purposes does not exist here, and the only way to assure high-class neighbours is to pay high prices for land. Does that mean you cannot find a Tico-style house for $25,000. I appraise these every day for the Costa Rica housing bank which is guaranteed by the government. There are lots of them, but most Americans would never feel comfortable or secure living in these areas.
Buyers come in all shapes and sizes, and there are lots of people who think nothing of paying $500,000 and up for a house. But the local people see that as a television dream since the average wage is $500 month. Many Ticos are leaving the Central Valley to live in areas like Puriscal which is nice area but does not offer the services most North Americans are used to. Even here prices are moving up rapidly.
I have nothing against real estate agents, but my profession is strictly licensed and regulated by the government where real estate brokers are not required to have any license.
My advice to a buyer is to inspect and appraise carefully before buying. Real Estate agents are fine for locating property but usually have no expertise in all of the risks that exist here which are much different than the U. S. Just making sure of the road quality leading to a property is something most take for granted, but Costa Rica roads and bridges often fail and the authorities are often strapped for funds to repair these quickly.
A couple of weeks ago there was a photo of 100 meters of road that collapsed near the University of Peace in Ciudad Colón where several upscale projects are located. No one knows how long it will take to fix the road or if there are other problems about to surface.
We have a recent client who has upscale desires, and we inspected and appraised a terrific house in Escazú for $545,000, which we found worth the asking price. But when our attorney checked the documents he found a clouded title the seller forgot to explain.
Next the buyers asked us to inspect a six-bedroom, 500 meter condo with incredible views and an asking price of $990,000. Our appraisal came in at $712,000.
On the other side, we appraised a tract of beachfront land two years ago which was titled. Many such tracts are not titled but are granted through a local concession. The seller was offered $450,000 by one of the largest tourist operators here, and we appraised this property at $850,000. The seller sold it off our appraisal at around $1,200,000 and, as I understand, it is now on market for $2 million.
* Ms. Jiménez, an appraiser licensed by the Colegio Federado de Ingenieros y Architectos for the last 21 years, has conducted thousands of appraisals.
That flood of retiring baby boomers is just a few years away
By the A.M. Costa Rica staff
and wire service reports
Anyone who was wondering where all those expats will come from to fill those Pacific condos and build out those lots need not worry. But the trend spells trouble for North American businesses.
In 2011, the so-called baby boomer generation of Americans born after World War II will hit 65 and start looking at its options for retirement. While more than 78 million baby boomers are contemplating how to spend their golden years, businesses are bracing themselves for labor shortages and the biggest brain drain in history.
According to a recent study by the Conference Board, a global research and business group, organizations are not prepared for the retirement of the baby boomers. Diane Piktialis is a baby boomer working with the Mature Workforce Program at the Conference Board.
"The baby boomer population is going to be retiring in record numbers and the number of workers coming up through the labor force behind them is not enough to fill all the positions that are going to be left vacant," she said. "Companies not only don't have enough bodies to replace retiring workers, but most organizations have not formalized any programs to transfer knowledge from those mature workers to others coming up through the organization."
A baby boomer is someone born in the United States between 1946 and 1964. After World War II, the United States experienced an unusual increase in birth rates, now commonly described as the baby boom. Piktialis says that, instead of worrying about the retirement of the baby boomers, companies should start finding ways of keeping them on board.
The good news is that while baby boomers may be old enough to retire and cash-in on their benefits, most of them
don't want to give up active lives. Many are willing to go on working as long as it's on a part-time or flexible schedule.
Some will do so when they move their lives to Costa Rica and other offshore retirement havens. They will be assisted by improved Internet connections.
"All of the studies show that somewhere between 70 and 80 percent of these baby boomers, when asked, said that they would like to continue working in some capacity," she explained. "Part of the reason is the fact that they are better educated and healthier than in the past. People want to stay engaged. They want to contribute. They want to keep their minds intellectually challenged."
To tap into the potential of the baby boomer generation, according to Piktialis, companies and non-profit groups need to rethink their approach to recruitment and start including older people in their search for talent.
Stephen Kotlikoff, a Boston University economics professor, says that the major impact of the baby boomers' retirement will be financial. He says once they retire and no longer are earning a salary and paying taxes, policy makers will have to find ways to finance government programs in a fiscally responsible way.
"The real issue with the baby boomers retirement is that there are going to be a lot of old people to support relative to the number of workers that are making Social Security contributions. We are currently handing out $30,000 per old person in Social Security, Medicare, Medicaid benefits. And when the baby boomers retire, that number in today's dollar will be about $50,000. You are talking about close to $3 trillion, $4 trillion a year in outlays."
The government and the private sector have been busy for years trying to find solutions to the problems the retirement of baby boomers will cause. They have less than five years.
Laura Henderson
The easy way of life and attractive cost of living are drawing more and more of the retiring kind to Costa Rica. Laura Henderson reports
The coffee shops of Escazu are packed on Sunday afternoons, late lunchers chin-wagging in the sun. They are not upwardly mobile Latinos, but part of a growing cadre of foreign-born pensionados (retirees), who have chosen to put down roots, to fish, to play golf, to take it easy. It's not hard to do - the national catchphrase pura vida ("pure life") sums up the philosophy of Costa Rica. Read more.
German politicians linked to tourism visiting here as guests of government.
By the A.M. Costa Rica staff
Seven members of the German federal parliament's tourism committee have been travelling through Costa Rica to visit the popular tourist sites and meet with government representatives.
The whirlwind tour of the country is taking them to places in San José like the Museo de Oro and then out to the Pacific coast to visit Jacó, Manuel Antonio and Quepos. The visitors also will meet with hotel managers, business owners and municipality workers along the way.
The idea of the voyage is to strengthen political relations between the two countries as well as to boast tourist ties, said the German Embassy. The German Embassy has been
involved in a number of recent development projects in Costa Rica.
The German representatives arrived here Sunday and are leaving Thursday. The Germans were invited by Francisco Antonio Pacheco, president of the Asamblea Legislativa, and Carlos Ricardo Benavides, the tourism minister.
Throughout their visit they are also scheduled to meet other government officials such as President Óscar Arias Sánchez, officials in the Ministerio de Ciencia y Tecnología, representatives of Instituto Costarricense de Turismo, and William Rodríguez, president of Camara Nacional de Turismo. The delegation will be traveling to Mexico after their Costa Rican tour is complete. |