News
New website for hostels coming.
A new website for hostels and backpackers will be coming online in May, and will change the way backpackers and hostel owners travel and function. Hostelunion.com is being launched by the owner of Hostel Bekuo with the hope of providing better service to backpackers, as well as providing a better platform to hostel owners. With extensive feedback from hostel owners and backpackers alike, hostelunion.com has come up with better rating systems, more information for travelers, cleaner and more up to date website, and extensive connectivity and flexibility for it’s users.
For hostel owners and managers, life is about to get much easier. A top notch property management system that is integrated with our booking engine is going to streamline your front desk operations. There won’t be any more wasted time changing all of your availability one website at a time, because with our system, we’ll handle the allocating for you. Change your allocation on hostelbookers.com, gomio.com, hostelsclub.com and many more automatically!
Sooooo many more features hostel owners are going to love, but we’re keeping under wraps. Keep an eye on hostelunion.com for updates.
Molson Sells Coors Light in Costa Rica, Mulls Brewery
Molson Coors Brewing Co., the biggest beer company based in North America, begins selling Coors Light in Costa Rica today and is considering adding a brewery in Latin America.
Costa Rica will bring to about 30 the number of countries, including Mexico and China, where Coors Light is sold. The Denver- and Montreal-based brewer is taking advantage of a growing trend toward light beer in countries that have leaned toward full-calorie brews traditionally, said Paul Mendieta, managing director for Mexico, the Caribbean and Central America.
The company may need to develop manufacturing in Latin America to accommodate growth of Coors Light, its best-selling brand, he said. Options may include building a brewery or cooperating with another brewer, according to Mendieta.
“As we continue to expand into new markets, it is definitely something that we plan on addressing,” Mendieta, 51, said in a Sept. 18 telephone interview. He declined to specify potential timing of such a move.
Brewing locally would cut freight charges, a “significant portion” of the cost of selling in the region, he said.
Molson Coors was unchanged at $48.10 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have lost 1.7 percent this year.
The challenge for Molson Coors is choosing markets without a dominant international competitor where consumers are already comfortable with the taste of light beers, said Erin Ashley Smith, an analyst with Argus Research in New York.
Market Challenge
“They don’t have as much international exposure as a number of beer companies they are competing with,” Smith said in an interview. “Long term, they are going to need to look outside the U.S. for some growth to be able to compete better.”
Overall beer sales by volume in Latin America surpassed those of North America in 2007 and will grow 20 percent by 2013, according to researcher Euromonitor International. The Coors brand, with almost 7 percent of Latin America’s import beer market in 2007, faces competition from Anheuser-Busch InBev NV’s labels.
Leuven, Belgium-based AB InBev’s Brahma and Budweiser brands together held 42 percent of the import market there, according to Euromonitor data.
Budweiser Expansion
“We are researching and carefully evaluating the best approach to expand Budweiser,” Marianne Amssoms, a company spokeswoman, said yesterday in an e-mail. “This is a mid- to long-term effort.”
Latin America’s growing middle class has brought a taste for light beer back from travels to the U.S., Mendieta said. Distributors in at least five South American countries have asked for Coors Light in recent months, Mendieta said.
Coors Light, known as the “silver bullet” because of its silver can, started selling in Puerto Rico about 15 years ago. It has since been exported to countries including Mexico, where sales grew from about 15,000 hectoliters in 2004 to 118,000 hectoliters last year, according to Molson Coors. North America and the U.K. are the brand’s largest markets.
Overall volume sales of imported lagers, which include U.S. light beers, grew 54 percent in Latin America in the six years ended 2008, while domestic lagers grew 34 percent, according to Euromonitor.
Light beer generally contains less alcohol and fewer calories than full-flavored beer. Coors Banquet has 5 percent alcohol and 142 calories per 12-ounce can, compared with Coors Light which has 4.2 percent alcohol and 102 calories.
Thermographic Ink
Coors Light is sold outside the U.S. as an import beer, fetching more per unit in China and parts of Europe, for example, than at home, Rob Borland, chief marketing officer for global brand and market development, said in June.
The brewer has marketed Coors Light overseas much as it has in the U.S. and Canada, using “Rocky Mountain Cold Refreshment” as its advertising tagline, Mendieta said. Printed in thermographic ink, mountains on the cans and bottle labels turn from white to blue when the package is chilled.
The company is curbing costs by translating existing advertising, instead of producing new ads. It introduced Coors Light’s “cold-activated can” in Mexico and Panama by re- editing a 30-second television commercial initially shown in North America, saving about $500,000, Mendieta said.
The packaging and advertising helped boost global Coors Light sales by 3.4 percent in the first half of this year as Molson Coors’s total beer volume fell 3 percent, the company said.
Guanacaste Suffering From ‘El Niño’
A “summery winter,” that’s how the behavior of precipitations in this rainy season in the province of Guanacaste could be described, as a result of the effects of the climatic phenomenon commonly known as “El Niño.”
An atypical 50 percent reduction in precipitation levels, compared to the historical average usually falling in Guanacaste, plus an increase of two degrees Celsius in the province’s temperature, are the most visible effects of the current weather conditions. Both have led to a drought impact the agricultural industry.
One of the most affected crops is rice. The lack of rain has resulted in a negative impact on rice plantations all throughout Guanacaste — one of the main producers of this staple crop in
Costa Rica.
According to data from the National Rice Corporation (Conarroz), the situation generated by El Niño during the past two months has led to damage in 398 hectares planted with the water-intensive cereal.
Economic losses resulting from the drought in Guanacaste are estimated at $800,000, while the number of producers suffering from this situation has reached 71.
If the weather conditions persist, it’s even possible that rice producers will request an emergency declaration from the Ministry of Agriculture.
Dollar Rises ¢7 in One Day
Following more than a week of continuous drops the U.S. dollar exchange against the Costa Rican colon rose ¢7.17 colones in one single day.
The Banco Central de Costa Rica (BCCR) pegged yesterday afternoon the buy rate at ¢¢585.90 and the sell at ¢595.37. The rate yesterday morning opened at ¢579.01 and ¢588.20, respectively.
Today’s rate is the highest ever recorded by the Central Bank since it introduced the “bandas cambiarias” – rate exchange bands – to set the daily exchange rate.
At some exchange houses the buy rate was ¢600 and sell ¢606.
The state banks were quick to follow the Central Bank change, with the Banco de Costa Rica (BCR) pegging the rate at ¢586 and 595.5, the Banco Nacional (BN) a little lower at ¢583 and ¢592.5, while the private banks like Scotiabank posting this morning an exchange rate of ¢585.5 and ¢595.50, while Citibank and the HSBC do not post the rate online.
A complete list of the exchange rate offered by the state and private banks are all listed on the Cental Bank’s website, which are updated within 10 minutes of an individual bank change to its rates.
The Central Bank on August 19 set the low and high for the band at ¢593 and ¢598. The bands are only a guideline for financial institutions to follow.
U.S. doctors favor both public & private health care options—Costa Rica an example
Most U.S. doctors favor a reformed healthcare system that has both public and private options, a survey released Monday says.
The survey of 2,130 U.S. doctors, published in the New England Journal of Medicine, gave the doctors three choices: private plans that use tax credits or subsidies to help the poor buy private insurance; a new public health insurance plan such as Medicare; or a mix of the two. Sixty-three percent of doctors supported a mix, 27 percent said they only wanted private options, and just 10 percent said they exclusively wanted public options.
“The result shows that physicians see this system is broken and needs to be fixed,” said Dr. John Lumpkin, senior vice president of the Robert Wood Johnson Foundation, which sponsored the survey.
Costa Rica an example of ‘mixed medicine’
Costa Rica, a small Central American republic known for abolishing its army and protecting 25% of its land in national parks, doesn’t have all the answers when it comes to health care, but it has managed to cover most of its people.
More than 60 years ago, the Costa Rican government created a workers’ health insurance program that has, over the years, grown to cover more than 90 percent of the population. This system is the Caja Costarricense de Seguro Social, otherwise known as the Caja, and it extends to every corner of the country, although the majority of well-regarded public hospitals are in the capital city of San Jose, and outlanders routinely journey to the capital for specialized services.
The country also has highly regarded private hospitals, and Costa Ricans and resident foreigners who can afford to often choose to use the Caja as a backup to private care, which they pay for out of pocket or through international or national insurance.
Mixed medicine
Or they use both public and private health care. I met a man in the waiting room at Hospital Calderon Guardia (a public hospital) who was fully covered under the Caja but had up until then paid for private care–he wasn’t crazy about the Caja’s bureaucracy and long waits. But now he needed an operation on his hand, and he couldn’t afford to have that done by a private doctor in a private clinic. So he’d returned to the Caja fold and was trying to schedule his operation within the next decade. If he had the money for the operation, he said, he wouldn’t be there.
Other people will use the Caja for routine care–minor ailments, blood tests, and medication–but turn to private care when the going gets tough. One reason for this is that the sicker you are, the harder it is to navigate all the forms in triplicate you’ll need to see Caja specialists, and the more taxing will be the hours of waiting you’ll endure at every turn.
Well-trained doctors, lower prices
Doctors in Costa Rica, whether they work for the Caja, in private practice, or in a combination of the two, are in general very well trained. Many have studied in the United States, Canada, Europe or Cuba, where there are more doctors than anywhere else in the world. They keep up with developments in their field and often have access to the latest technology. Some doctors who work privately are associated with private clinics; others are not. Either way they can send you to private clinics for tests or operate on you there.
Prices at private medical clinics or hospitals are often beyond the reach of the average Costa Rican, but resident foreigners–who tend to have greater financial resources and are accustomed to higher prices–find the fees refreshingly low, often half or even a third of what one would pay in the United States. Part of the reason prices are lower is that malpractice lawsuits are rare here; when damages are awarded, they’re only enough to cover hospital bills and other expenses.
Top 5 Drug Trafficking Bloopers of 2009 in Costa Rica
What do underwear, surf boards, tires, submarines, sharks and wigs have in common? They have all been used as a vessel in thwarted attempts to smuggle cocaine through Costa Rica.
With more than four months left to go in the year, 2009 can already be considered a dynamic and record-breaking year for drug busts in Costa Rica. From the “white city” of Liberia in the north to the unpatrolled shores of Golfito in the south, there are few regions in Costa Rica that the international drug trade has left untouched.
Costa Rica has long been a key transit point along the principal drug route from Colombia to the United States, and is now used as a warehouse to store larger quantities of cocaine every year. Cocaine seizures in the nation increased from 2,955 kilos in 2002 to more than 90,000 kilos over the past three years during the Arias administration.
Most of the drugs are shipped, flown or driven through Costa Rica en route to Mexico, from where 91% of drugs enter the United States. The Pan-American Highway is the major shipment artery running through the region, allowing one to infer that Central America just might have more cocaine in its blood than Robert Downey Jr. and Courtney Love combined.
With 755 miles of coastline on the Caribbean and Pacific Ocean, poorly patrolled roads, a lack of border security in the south and limited police resources and specialization in rural areas, Costa Rica is one of the top targets for drug movement. However, with a never ending chain of command ranging from cartel leaders down to the local drug dealer that hangs out behind the church sampling his own goods, the best laid plans of mice and drug dealers often go awry.
Below are the top five drug busts of the year, plus our all time honorable mention:
1. Refurbished Evidence
In March of this year, the Judicial Organization (OIJ) investigators that found 320 kilos of cocaine in an abandoned speed boat along the coast of Golfito had their celebration cut short when it was stolen from the police house three days later. The cocaine was left there due to a lack of air transportation necessary to deliver the evidence to San Jose. Taking advantage of the delay, a motley crew that included three police officers, an ex-police official and the night guard devised a plan to have a false 911 call distract the two officials on duty that night. This opened a 20 minute time slot in which they swiped the cargo valued at $9 million on the U.S. market.
The amateur group enjoyed their winnings for nearly three months before eight of them were detained in a series of raids. Humility was not a virtue shared by the men who were found with a total of four brand new vehicles and more than $335,000 in various currencies.
2. That Won’t Fly
Time flies when you’re transporting excessive amounts of cocaine for profit. Helicopters don’t. In May of this year, a helicopter with two passengers and 396 kilos of cocaine crashed into the “Mountain of Death” or Cerro de la Muerte in the southern region of Costa Rica under the strain of the illicit cargo. The passengers were found dead along with the wreck and drugs with some difficulty due to the remote location.
The pilot, a Costa Rican native, had rented out a small hotel near the scene of the crash prior to the accident. He had no previous criminal charges and actually used the same helicopter to assist the Judicial Investigation Organization in searching for evidence in the past when police resources were limited. We can assume he learned his lesson. The passenger was of Mexican origin and had entered the country earlier that year without cause for concern by local officials.
3. Stuffed Shark on the Rocks
Shark, a controversial delicacy often gratuitously killed just for the dorsal fins, becomes even more controversial when it’s stuffed with cocaine and sent on ice to Mexico on a cargo ship. Thus was the fate of 20 shark carcasses used to conceal 894 kilos of cocaine that departed Caldera, a Pacific coast port of Costa Rica, en route to the Yucatan peninsula in June of this year.
To make things more interesting, in looking for a commercial fisherman connected to the shipment, Costa Rica police uncovered a private island property in Golfito outfitted with underground tunnels and vaults three meters deep that were used to store drug shipments. Access points to the vaults were covered by wood and ceramic flooring and then by concrete covers.
This same band of drug traffickers with Mexican ties responsible for the shark shipment are now being connected to a more recent drug seizure of 419 kilos of cocaine that was found covered in frozen red snapper in a truck along the Pan-American highway outside of Golfito. In both cases the fish were contaminated when several bags of cocaine broke open, which helped tip off authorities that something wasn’t right. The cocaine in the truck came from a 40-ft speedboat with two 100-horsepower motors that was found abandoned along the coast. The real losers in both cases were the fish, which had to be disposed of.
3. Three Times a Charm
Costa Rican and Panamanian authorities detained two bus drivers for transporting multiple bags of cocaine on a passenger bus traveling from Panama to Costa Rica this past July 2009. At first the bus was stopped in Panama thanks to tips to the authorities who uncovered three bags containing a total 22 kilos of cocaine. The drivers and two other men were arrested and a replacement driver was sent by the bus company to continue the route.
Later at the Panamanian-Costa Rican border, the bus was revised again when a bag with 3 kilos of cocaine was found, thought to be part of the original shipment. Then in the southern area of Costa Rica, passengers called the police when they noted the substitute bus driver acting odd. A third revision was performed and another 8 kilos were found in a bag and the replacement driver was also arrested.
It is a common tactic for drug traffickers to send anonymous tips to border police regarding a small shipment of cocaine by way of bus or truck in order to divert attention and allow larger shipments to pass through.
5. Stubborn (or stupid) as a Mule
This final umbrella category refers to the “mules” or humans trafficking smaller quantities of drugs on their person, luggage or vehicle. In just the first half of this year, anti-drug authorities detained 32 drug traffickers or “mules” in the Juan Santamaria airport in San Jose, already beating the 26 people arrested throughout all of 2008 at the international airport. Most of these people are foreigners en route to Europe (mainly Italy, Germany, France and Spain) where the market prices are the highest. Those that are caught take a detour of 8 to 12 years in jail.
While some of these mules are suspected to be part of a new trafficking association that moves drugs from Costa Rica to Spain, would be considered entrepreneurs. Airport detainees have ranged from 18 to 60 years old and were caught with drugs in coffee bags, surf boards, their underwear, printer cartridges, sewn into wigs, wrapped in gift boxes and hidden amid extra compartments in their luggage, among other locations. Most recently, a 60 year old man was detained with one kilo of cocaine in his stomach.
All Time Honorable Mention: Escobar Meets MacGyver
The best drug trafficking feat of all time proves the phrase that with necessity comes ingenuity. In 2006, U.S. Coast Guard officials discovered a handmade wood and fiberglass submarine floating 100 miles off Costa Rica’s Pacific Coast. The 50-foot submergible craft was cruising along at 7 mph just six feet below the surface of the water and concealed three tons of cocaine.
The four-man crew including two Colombians, a Guatemalan and a Sri Lankan, were found using plastic pipes as breathing devices. Among the bags of cocaine were several tanks of gas and utensils to bail out water, leading authorities to believe they had not and would not get too far. The four men were arrested and taken to the U.S. for trial.
Demotion of Costa Rica's Las Baulas park raises doubts
The Costa Rican Ombudswoman’s Office announced on Thursday morning that it has serious doubts about a bill that would modify the limits of Las Baulas National Marine Park in Playa Grande, a beach in the northwestern province of Guanacaste.
The bill, which is currently under review by the Legislative Assembly’s Environment Commission, would change the status of the national park to that of a national wildlife refuge, which would permit construction within its limits. Building is not allowed in the area under its current designation as a national park.
The office declared that the bill “endangers the integrity of the National Marine Park” and “affects even the aquifers of the zone, which are cataloged as very vulnerable.”
A recent study by the National Groundwater, Irrigation and Drainage Service (SENARA) claims that the fragility of the water table near Playa Grande “does not permit any activity, with the exception of conservation and preservation.”
The ombudswoman’s office cited the study along with article three of Costa Rica’s biodiversity law and articles 50 and 89 of the constitution – all of which deal with conservation and environmental protection – as reasons for legislators to carefully evaluate the bill before deciding on a verdict.
Recalling the government’s Peace with Nature plan, ombudswoman Lisbeth Quesada said lawmakers “must respect pro-nature environmental principles in any proposal that deals with the environment.”
Legislators who support the bill have deemed the project a necessary step if the state is to control development inside the limits of the national park without the need to expropriate private properties. Landowners who live in the park have insisted that the land is worth approximately $1,200 per square meter.
Maureen Ballestero, a National Liberation Party (PLN) legislator and president of the Environment Commission, told The Tico Times that she “does not agree with the change in category of a national park,” but she said the state needs to find a way to protect the land without having to pay for it.
Costa Rica's New Traffic Laws Take Effect September 23, 2009
Costa Rica Blogger has made no secret as to what driving in Costa Rica is like; “dangerous”, “insane”, “crazy”, etc., etc., etc. It appears even Costa Rica’s President agrees as he is quoted as likening Costa Ricans to ‘Dr. Jekyl and Mr .Hyde’, in reference to the widespread recklessness encountered on the roadways of a nation recognized for peace and natural beauty.
It came as no surprise then, when Presidente Oscar Arias supported the passage of a sweeping reform to the Costa Rica traffic laws (Ley de Transito) that intends to rectify the situation by force, and as rapidly as possible. As of September 23rd, 2009 Costa Rica will put all drivers and the new traffic law system, to the test!
The cornerstone of the new reform is the computerization of drivers’ license records, and the use of a strict and stringent license points system to force drivers to re-evaluate and change their driving practices. All license holders will be credited 50 points to their Costa Rican license. With each infraction issued by the Transito for roadway violations (including non-moving violations), points will be deducted from the electronic file of the license holder. Additionally, fines ranging from $391.00 for driving a motorcycle with an un-helmeted minor -to- $39 for throwing garbage on a public roadway will be levied.
The Costa Rica Roadway Security Council (Consejo de Seguridad Vial -or- COSEVI) will be the record keeper for the drivers license points system and in charge of collecting all fines.
Laws are great but the success of any such changes hinge on enforcement. To address this issue the Costa Rica Ministry of Public Transportation (M.O.P.T) is adding 400 new Transit Police Officers (Policia de Transito) to its existing 800 member force. New changes include:
* Speeding in excess of 120kph / 74.5mph (50 points/2 year license suspension + $293 fine)
* Minor passenger without helmet (50 points/2 year license suspension + $391)
* Running a red light or stop sign (25 points + $293)
* Turning into an intersection without yielding to a pedestrian already crossing (25 points + $293)
* Reckless driving / speeding in excess of 20kph / 12.4mph above posted
speed limit (20 points + $293)
* Using a cell phone without a hands-free system [yes they do this while driving motorcycles!] (20 points +$293)
* Speeding in excess of 25kph / 15.5mph in front of a hospital, clinic, or school (20 points + $293)
* Riding without a helmet (20 points + $293)
* Passing through the middle of traffic, exploiting spaces between vehicles, zig-zagging through traffic whether the traffic is stopped or moving or at stop lights (15 points + $196)
* Incorrect passing, passing on the right in any circumstance, improper passing (15 points + $196)
* Passing on left in oncoming traffic lanes in no passing zones (10 points + $293 fine)
* Not keeping distance with the vehicle in front of you or tailgating (10 points +$117)
* Illegal U-turn (10 points + $293 fine)
Costa Rica and Peru ‘hot locations for solo and gap year travellers’
Although taking a trip with friends can always be a good source of fun, many gap year students, holidaymakers and people on sabbaticals are now opting to travel alone.
This is according to the editor of SoloTravel.org Anthony Page, who has noticed an increase in the number of people heading out on their adventures without companions.
He added that although some solo travelers prefer city breaks and lively hostels, the most popular locations for people hooking up with groups and volunteering abroad is Latin America.
“The best advice is to hook up with an organized holiday company or to stay in a hostel where other solo travelers hang out so you can hook up,” Mr Page said. “Costa Rica and Peru – these are hot destinations at the moment”.
According to the latest research from Mintel, five million Britons plan to head out alone this year and the number of people going away on holiday unaccompanied has increased by five per cent since 2004.
Gambling Companies Could Leave Costa Rica if Taxed
By Christopher Costigan, Gambling911.com
Following news over the past two weeks that the Government of Costa Rica is considering taxing online gambling firms operating in that country, operators have told Gambling911.com they would leave if push comes to shove.
On Tuesday, July 21, Finance Minister Guillermo Zúñiga announced that the Finance Ministry will introduce a bill in the Legislative Assembly to impose a special 2 percent tax on gambling revenues – online and offline – earned in
Costa Rica, according to the Tico Times. The bill is set to reach the Legislative Assembly on Monday, Aug. 3, and a vote on its approval is expected to be held sometime in mid-August.The Finance Ministry estimates that the proposed 2 percent tax will generate $85 million in government income.
“The principal idea of the bill is to regulate activity,” Zúñiga said. “Gambling is something that we are currently not monitoring and, thus, not taking advantage of. If we can regulate it, it could create millions of dollars for the economy.”
But those numbers are unrealistic should much of the
online gambling sector bolt. Costa Rica’s land-based casinos generate very little revenues in comparison.“They (The Costa Rican Government) needs to understand our business and the consequences before passing such a law,” said Mickey Richardson, CEO of BetCRIS.com, the largest and most established sports betting operation in
Costa Rica in terms of bet sizes taken. “Hopefully nothing will happen. I think they would ask for our input and then we might be more supportive.”Richardson estimates that the industry both directly and indirectly employs some 10,000 people, perhaps even more.
“The industry pays above average salaries and contibutes substantially to household incomes,” he said.
Learning From Great Britain’s Mistakes
Costa Rica may want to observe what is currently transpiring in the United Kingdom right now.
The country’s second largest bookmaker, William Hill, this past week unveiled plans to move its Internet operation from England to Gibraltar in order to cut its tax bill.
The Sunday Times said UK-based internet betting companies pay 15 percent of their gross profits in tax, and that a move offshore by
William Hill would put pressure on its rivals to follow suit.Ladbokes, Great Britain’s largest bookmaker, may do just that. Ladbrokes is keeping its cards close to its chest with a board meeting due the day after William Hill’s results, according to the Daily Mail. But while it is understood to prefer staying in the UK, company sources admitted it would have to respond to any move by
William Hill.The choice between the United Kingdom and offshore locales such as Gibraltar is a practical “no brainer”. Those businesses operating in England pay a 15 percent tax while those based in Gibraltar pay 1.5 percent.
According to the Gibraltar Chronicle, a mass exodus from the UK could spell trouble for the Racecourse Owners Association who would see a drop of £45 million in lost tax as well as a £30 million loss in 10% levy paid to them. The Department for Culture, Media and Sport has acknowledged that it does want to level the playing field with overseas businesses but crucially predicts little, if no action prior to next year’s General Election.
Panama Might be Best Bet
Those
Panama in the past few years has opened its doors to
online gambling operators, though few have actually moved there due to Costa Rica’s “hands off” stance until now.“I love Panama,” Richardson admits.
BetCRIS has already opened a Caracas, Venezuela office for its Latin American clientele, though few would argue Caracas is a fair trade with
Costa Rica during these times.Panama City on the other hand resembles Miami in many ways, with modern skyscrapers and some of the best eating establishments rising up over the last 15 years. The Central American nation itself resembles
Costa Rica in that it abolished its army over the last decade and is now among the most stable nations in all of Latin America.For now, Richardson admits it’s a “wait and see” decision. Nobody seems overly concerned just yet.
In the past, the Costa Rican Government has attempted to increase licensing fees for
operators, but few paid them and the requirement was eventually dropped.