The following blog is based on a presentation that Frank Gallo made to the Denver-based Chamber of the Americas on Aug. 14. Gallo is an author and recent Granada homeowner and still has property in the Granada area. He formerly lived in Costa Rica for nine years and resided in Panama as a teenager.
“Nicaragua is NOT the New Costa Rica.”
This quote by Nicaraguan Tourism Minister Mario Salinas flies in the face of an oft-repeated saying by tourists, expatriates, and other observers of Central America. I confess, I used to say the same thing a few years back. But Minister Salinas has a point, and that is what I decided to explore.
First of all, what are others saying recently about the comparison of the two countries? Travel Age West opined, “Currently Nicaragua is more like Costa Rica 20 years ago. Nicaragua may be the next best, if not the more authentic alternative to travel to Costa Rica.” A Costa Rica vacation planning site observed that, “Costa Rica does not feature a wide variety of cultural or historical attractions.” And Minister Mario Salinas pointed out “… we have a diversity of offerings – a culture and a history that Costa Rica never had.”
Yes, there are similarities, but also differences between the two countries. In looking at country comparisons, Nicaragua is the largest Central American country, with 50,193 square miles, while Costa Rica has only 40% of that size, at 19,653 square miles. Yet Costa Rica’s coastline is nearly double, at 826 miles compared to 461 miles for Nicaragua. So it is no wonder that beaches feature prominently in Costa Rica’s tourism industry.
Protected areas are about equivalent, 25% of its land for Costa Rica, 20% for Nicaragua, though various sources quote different percentages, but in the ball park. The two countries share a border of 192 miles. Nicaragua has a significantly greater population, at 5.9 million, Costa Rica with less at 4.3 million. Costa Rica enjoys a literacy rate of 95%, Nicaragua 78%.
The origins of the two countries differ. In the 1500’s, Nicaragua had an indigenous population of one million. The country was colonized by the conquistadoes. As centuries passed, a conflict grew between the Liberals of León and the Conservatives of Granada, creating a timeless political contest. On the other hand, there were few indigenous peoples in Costa Rica. The area was poor and sparsely inhabited, hardly of interest to the conquistadores. Thus, there were relatively no oppressed mestizo or indigenous classes.
Looking at current differences, using the International Living Retirement Index of 2012, Nicaragua enjoys lower living costs. The cost of living is one-third cheaper in Nicaragua. Wages, of course, are much lower in Nicaragua, thus a lower cost of services provided to tourists. For comparison, a 19-year-old worker’s minimum wage in Costa Rica is $388, but only $133 in Nicaragua. Costa Rica has the edge on infrastructure, and a definite edge on health provisions. Climate is equally desirable in each country.
In a scan of business indicators—the Latin Business Chronicle is the source—one finds that inflation in both countries is at a reasonable pace, at 8.2% for Nicaragua in 2012, and 6.5% for Costa Rica. Inflation for both countries has been reasonably stable in the past few years. GDP growth for 2012 (estimated) for Nicaragua is 3.3%, Costa Rica 4.1 %, though again in the past few years their numbers have been very close. Looking at the most recent Globalization Index (Foreign Direct Investment, Remittances, Tourism, and Exports & Imports), Nicaragua ranks #2 of 18 Latin American countries, Costa Rica a bit behind at #4. In ease of doing business, the World Bank ranks Nicaragua 24th of 32 Latin countries, and Costa Rica 25th.
Tourists are very concerned about safety, so it is necessary to look at crime statistics. The homicide rate per 100,000 inhabitants in Nicaragua was 12 in 2005, 13 in 2011, an increase of 8%. The homicide rate in Costa Rica in 2005 was 7.8, with a 32% increase in 2011 to 10.3.
In 2010, the Central American average homicide rate was 25, the U.S. rate was 4.8. Using statistics for 2008, the crime victimization rate (the percentage of the population that reported victimization of crimes in the past 12 months) for Nicaragua was 19.2%, close to the 19% of Costa Rica. Armed robberies were 5.6% for Nicaragua, slightly higher than 5.3% in Costa Rica. Burglaries were reported at 4.6% in Nicaragua, higher at 5.4% in Costa Rica. This latter category would be the one most likely to affect tourists directly, which might translate to a higher crime rate against tourists in Costa Rica.
Tourism has increased dramatically in both countries. In the year 2000, Nicaragua recorded 486,000 tourists. By 2011 there were 1.05 million tourist arrivals, an increase of 116%. For Costa Rica, in 2000 there were 1.08 million tourist arrivals, and that number grew to 2.2 million by 2011, an increase of 102%. When looking at the Costa Rica’s tourism numbers, one must keep in mind that the population of Costa Rica is only 4.3 million.
Tourism destinations are quite different in the two countries, though of course there are also similarities. Costa Rican tourism destinations favor the Pacific and Caribbean beaches for snorkeling, scuba diving, deep-sea fishing, and even sailing. National parks and nature preserves such as Toruguero on the Caribbean, Monteverde, Manuel Antonio, Rincon de la Vieja, and the Arenal area, are all popular destinations. The Central Valley offers San José museums (Jade, Gold museums) as well as the traditional towns such as Sarchí and Grecia. Other activities include whitewater rafting, lodging at the ever-growing number of 5 star resorts (about 14) and all inclusive resorts (about 18).
In Nicaragua, colonial towns, especially Granada, are the number one tourist destination. In essence, Costa Rica does not have colonial towns of the same magnitude nor architecture as Nicaragua, nor even close. Granada, León, Masaya, and the “white towns” offer tourists the true colonial feel of history and architecture. Out of the ordinary, unlike anything found in Costa Rica, is Ometepe Island in Lake Nicaragua. The lake itself is the tenth largest fresh water lake in the world, and the second largest in Latin America. Ometepe holds the distinction of being the largest island in a fresh water lake in the world. It is also full of pre-Columbian history, statuary, and other relics, plus two magnificent volcanoes. Getting there on one of the ferries is half the adventure.
The Corn Islands, located about 50 miles off the Caribbean Coast, offer another unique experience, not only for devout adventure tourists, but for others who seek the unusual destinations of the world. The Pacific beaches of Nicaragua, including the popular beach town of San Juan del Sur, offer the sun and sand crowd that many tourists are looking for, but in a charming small town way, without the mega-resorts of Costa Rica. Pre-Columbian history tours, again unique to Nicaragua in relation to its southern neighbor, explore Zapatera Island, Ometepe, and even the museum at Convento San Francisco, which houses immense pre-Columbian statuary. Other destinations are Mombacho Volcano, the Granada Isletas, Apoyo Laguna, and Matagalpa and the coffee-growing region in the highlands. The Rio San Juan is opening up for a different type of tourism experience. Unlike Costa Rica, Nicaragua has only two five-star hotels, and two significant all-inclusive resorts.
Minister Salinas says Nicaragua needs to differentiate itself as a tourist destination. The factors to do just that are certainly there. Instead of massive increases in tourist arrivals, he would like to see longer stays and more tourist dollars spent per day. Longer stays have increased slightly, but tourist dollars per stay are around $43, with a small increase in the last couple of years but one-half of what is spent by Costa Rica tourists. Efforts are underway to develop Ometepe and the Rio San Juan as tourist destinations, increase the number of in-country airports, and cooperate with projects for marinas.
Costa Rica is a maturing tourist destination. The trend has been to all-inclusive resorts and mega five-star hotels. For the most part, true adventure tourism in this tourist-friendly country is a thing of the past. More emphasis will be placed on more airlines, rural tourism, cultural tourism, medical tourism, and convention tourism.
It appears Minister Salinas was right on target. Of course the two neighboring countries have many similarities—beaches, volcanoes, highlands. Nicaragua tourism is emerging, the country is being “discovered.” It is able to offer a diverse tourism experience with its colonial towns, pre-Columbian history, and unique geography, which all offer the tourist a unique and diverse experience from that of Costa Rica.
Frank Gallo is a retired Air Force pilot and current private pilot who has both lived and flown in Nicaragua, Costa Rica, and Panama. Frank’s published work includes articles in multinational publications on the topics of aviation, Central American living and technology. His recent historically-based novel, The Comandante’s Gift, was published in March 2012. It details many of the true events that took place during the uprising against the dictator Somoza and the subsequent conflict that took place between the FSLN communist regime and the U.S.-supported Contras.
Yeah, CR is better
[...] Nicaragua is not Costa Rica. “Nicaragua is NOT the New Costa Rica.” [...]
Actually, it does make sense for the first-time tourist or those (as in my case) that went to Costa Rica years and years ago (~20 years ago was the one and only time I have traveled to C.R.) and then in more recent years I began to visit Nicaragua.
From a visitor’s perspective, the two countries do have many similarities, but the differences are revealed the more time you spend in Nicaragua.
More comments here–>
http://www.elportonverde.com/2012/08/22/nicaragua-is-not-costa-rica/
I missed the point of the article, but I was visiting Costa Rica in 93 and again in 98 and saw the change from dirt roads and casitas to paved highways and 5 star resorts. I’m a surfer and the surfers have now discovered Nicaragua. We all unanimously say Nicaragua is Costa Rica 20 years ago. My hope is that Nicaragua does not develop at the rapid pace of Costa Rica, which is sadly not as authentic as it once was but does satisfy a large segment of the traveling population.
Avenida Sandino? (lol)
Que facil que caen tantos Nicas en el absurdo! Si hay algo que realza la ahora mentada via Sandino es la epoca cuasi gloriosa (sobre todo ahora con el mal gusto de los del Carmen) de los Somoza! Todo es indicativo a lo largo de esa ruta de las bondades del Somocismo. Desde que parte de “La Loma” creada por Somoza para resguarsar la Presidencial, La Curva y luego el Monumento a Roosvelt (el buen Imperialismo?) seguimos bajando al Hormiguero y El Campo Marte donde entrenaron a quienes pusieron a raya a todos estos vagos que ahora ignaguuran foticas, El Hormiguero donde aparentemente NO los terminaron de malmatar. Bueno, todito lo que hay ahi hasta el lago fue hecho o es monumento a la bonanza Somocista. Cuando van a aprender estos Nicas?
What about the differences in government between the two countries? Like the fact that Costa Rica’s government is democratic, while Nicaragua is controlled by the communist Sandinistas, who keep their own people at a level of poverty that is visibly extreme, even for Latin America. Costa Rica isn’t perfect — its justice system tends to pity the criminal rather than punish him, which perhaps has lent to the rise in crime over the past decade. But it’s a far cry from the political oppression under which people live in Nicaragua. A lot of Nicaraguans flee to Costa Rica to live and work, despite the sharp rise in living costs — you don’t see a reverse flow of ticos to Nicaragua! Nicaragua is NOT Costa Rica 20 years ago. That implies Nicaragua is on a path of progress. As long as the Sandinistas are in power, any “progress” will be superficial, at best.
Nicaraguans flee to places with more developed economies, including Spain and the US. They were also leaving all through the neo-liberal era, too, and some are returning (I’ve met three families in Jinotega who’ve moved back from the US). Costa Rica has more socialist institutions than does the US — medical care, public utilities, which have allowed its businesses to concentrate on business. It also has a very different history.
US residents who come to Nicaragua only claim to be fleeing the US’s political system if they’re a bit touched. We come here because the cost of living is less; Nicaraguans go other places because they can earn more money even if the cost of living is higher.
The FSLN was voted into power — the EU observers noted irregularities but nothing that would have invalidated the election. From what I’ve observed in Jinotega over the last two years, they’ve done a reasonable job at improving basic infrastructure.
Pretty much all parties here have a record of messing with the votes if they have a chance.
Although necessary background research, I find the statistical comparisons unhelpful. At least one (the number of tourists to Costa Rica) is misleading, since a hefty chunk of those “tourists” are actually Nicas crossing over to work. Others, like crime rates and country size, are too broad to tell anyone much. Overall crime rates tell little about the likelihood of a given tourist being victimized, since this depends upon other factors, and Nicaragua’s rugged interior makes its larger size mostly irrelevant to tourism.
I think that the article gets more helpful when it focuses on specific differences–the different attractions of the two countries and the different tourism models (e.g., all-inclusive resorts vs. colonial towns) and believe that attending to these differences can help Nicaragua successfully develop a different tourism industry.
However, there are other unmentioned differences, one of which I fear is hugely important. This is the fact that Nicaragua is developing its tourism industry in the shadow of Costa Rica’s arguably overdeveloped sex tourism industry. Already there is a spillover of sex tourists and sexpats from Costa Rica to Nicaragua, and while it is only an impression, it sometimes appears that the creepiest of these are increasingly moving to Granada and San Juan del Sur. Moreover, since many of the sexpats in Costa Rica aren’t legal residents, many are making their 90-day visa runs to Nicaragua. The result is that on any given day, Granada always hosts a set of Costa Rica sexpats on their 3-day furloughs looking to “party” with the less expensive Nicaraguan hookers.
The problems this creates go well beyond the sexpats themselves, who I believe remain a fairly small segment of the foreigners in Nicaragua. A main problem is that they deter other tourists with more wholesome agendas. Nobody wants to vacation around these always creepy and frequently drunk, drugged, arrogant, and obnoxious foreigners. Another problem is that they create a stereotype in the minds of the hosting Nicas, that in turn is imposed upon other vacationers. Nicas come to see visitors as repulsively immoral, and develop the attitude that conning or even robbing them is therefore acceptable.
To some extent, Costa Rica is getting around this problem by developing the all-inclusive resorts, medical tourism, and other niches that tend to be at least less visibly unsavory, while just giving up on San Jose and Jaco where the sex tourists and sexpats proliferate. However, I don’t see how Granada or Leon for examples can avoid becoming like San Jose or Jaco. When the main offerings are cheap lodgings and cheap bars in a poor country, and right next door are already thousands of old lechers, there will be a spillover.
My point, perhaps overstated, is that Nicaragua is not at liberty to develop a tourism industry separate from frankly the worst of Costa Rica’s tourism industry. There will be spillover, and already is. I hope Nicaragua can find ways to prevent the spillover from becoming a flood, but at this point I’m not optimistic.
One attraction that Nicaragua has that sets it apart from all other countries in the world is that its President was accused of rape by his step-daughter. Costa Rica cannot match that, for they throw degenerates like that in jail. Someday nicaraguans will put Ortega in a cage for all to come see.
I have a UN employee (works for the UN mission of Nicaragua) and he has not paid rent for over 7 months and he refuses to leave (renting a apt in Long Island) now is he claiming diplomatic immunity…are all diplomats in Nicaragua cheats, liars, and also abuse their authority?? he keeps on saying he is leaves and stays on now it is Aug 2012 and the “deadbeat” has not left and WORKS for UN!
As a Canadian, I smile at the suggestion:”Ometepe holds the distinction of being the largest island in a fresh water lake in the world.”
Manitoulin Island, in Lake Huron, in Canada is the world’s largest island surrounded by freshwater. Its area is 2,766 km² (1,068 square miles) 10 times larger than Ometepe at 276 km² but only one quarter the population and no volcanoes.
I know who cares……just an FYI..
thats alot of water