“Mudanzas ” Dance Shows
7 p.m., Teatro de la Danza; “Solo por Placer,” Mudances Company (Spain)

4th Central American Physical Education, Sports and Recreation Conference
Monday through Friday, 8:30 a.m.-5 p.m., University of Costa Rica (UCR), Turrialba campus.

The tourism sector is concerned about the health of the domestic economy and its impact on tourism by nationals and residents. The National Tourism Chamber (CANATUR), the main private-sector body representing the country's tourism industry, warned its members “to be alert and take the necessary precautions” given worsening economic conditions.

“The Costa Rican tourism sector should be prepared to feel the negative effects of the current situation, reflected in sharp drop in people's purchasing power and in the national population's capacity to take day trips,” said Gonzalo Vargas, president of CANATUR.

CANATUR cited Costa Rica's inflation rate, which reached 13 percent during the 12 months ending in June, the colón's recent depreciation against the U.S. dollar, rising interest rates, and the slowdown of the U.S. and Costa Rican economies as reasons for concern.

“We are seeing how, as interest rates rise, the amount paid on loans rises, affecting the income available for recreation,” Vargas said. “To this must be added the steady increase in the cost of oil and food, variables that explain high inflation. The tourism industry is not exempt from this scenario.”

Vargas said the tourism sector needs to be creative in terms of its supply of services to compensate for the negative economic conditions. Tourism providers need to be creative and generate profitability through increased competitiveness, he added.

Tourism generated $1.85 billion in revenues last year, representing 8 percent of the country's gross domestic product (GDP), and provides income for approximately 450,000 people through direct and indirect jobs, according to CANATUR.

Despite strong growth during the first four months of the year, the Costa Rican economy is slowing down, according to the Central Bank.

The economy grew 5.9 percent during the first four months, down from 7 percent during the same period in 2007.

The Central Bank's monthly report on the economy indicates that “despite a trend toward deceleration and adverse conditions in the international context … domestic economic activity continues to display a robust growth profile.”

The document cites the construction industry, which grew 19.9 percent, as a major source of growth. The service sector grew 6.9 percent as a result of strong growth in telecommunications and finance. Manufacturing grew by 4.4 percent.

Agriculture contracted by 2.9 percent. Growth in pineapple, milk and other non-traditional crops failed to compensate for decreased sales of melons, bananas and sugarcane.

The country's trade deficit widened substantially compared to recent years. The trade imbalance reached $2.27 billion during the first four months, substantially higher than the deficits of $1.10 billion and $985 million reported during the same period in 2007 and 2006, respectively.

In terms of the fiscal situation, the Finance Ministry reported last week that the government registered a $230 million (2 percent of gross domestic product) financial surplus during the first half of the year.

The National Tourism Chamber (CANATUR) reported last week that the number of tourists visiting the country grew 12 percent during the first half of the year compared to the same period last year with more than 1 million foreign tourists visiting the country.

Consumer price inflation was 6.5 percent during the first six months, nearly 2 percentage points higher than during the same period last year (4.7), according to the National Statistics and Census Institute (INEC).

In 2007, the Costa Rican economy grew 7.1 percent, down from 8.6 percent in 2006.

Following a 13-hour negotiation session last week, the government and the Atlantic Port Authority's (JAPDEVA) labor union reached an agreement ending a 51-day labor dispute that disrupted cargo handling operations at the Limón-Moín port complex, which handles roughly 80 percent of the country's maritime cargo.

As of Saturday, the port has been operating 24 hours a day, the daily La Nación reported.

The agreement ends a dispute that resulted in the port not operating between six and 18 hours a day. Union members were demanding overtime pay for hours worked beyond the six-hour shift included in their collective bargaining agreement.

Marco Vargas, inter-institutional coordination minister, said the union workers agreed to switch from working four six-hour shifts to working three eight-hour shifts under the condition that they be paid overtime during the last two hours of the shift.

In addition, the government agreed to create 100 additional positions within JAPDEVA.

Vargas said that now that the crisis has been resolved, the government can focus on advancing its plan to concession the operation and expansion of the port to a private firm. Caldera, the country's main Pacific shipping port, has been managed by a private firm since late 2006.

Vargas said the government estimates it will be able to issue a tender, organize a bid and select a winner during 2009.

Last week Dutch consulting firm Royal Haskoning presented the government with a master plan for the country's Caribbean ports, which will serve as the basis for designing the concession tender, the daily La República reported.