Touting the “Pura Vida” in Costa Rica

Travel to the Costa Rica is on the rebound, with tourism spending expected to total just over $3 billion this year and $3.6 billion by 2027, according to market researcher Statista. Helping lure such travelers is a rugged, rain-forested inland and coastlines on both the Caribbean and Pacific.

An experienced hand in navigating the country’s tourism business is third-generation Costa Rican hotelier Mario Mikowski, who has a passion for sustainability and hospitality instilled by his father, Jamie Mikowski. Three decades ago, the elder Mikowski rewilded 300 acres of pastureland at the base of the Arenal Volcano to re-establish a tropical rainforest and build the acclaimed Tabacón Thermal Resort & Spa.

Mikowski pursued higher education in the United States, securing his bachelor’s degree in bioengineering from the University of Pennsylvania and his Master of Business Administration from Columbia University. He returned to Costa Rica to join the family business in the late 1990s, first working at his great uncle’s property, Hotel Presidente in San Jose, and later at Tabacón Thermal Resort & Spa.

Next, he decided to open a hotel of his own with two close friends and fellow Tico hoteliers and Hotel Nantipa–A Tico Beach Experience was born. The barefoot luxury destination opened in 2019 and sits on the beaches of Santa Teresa along Costa Rica’s Nicoya Peninsula. The Sales & Marketing Director of Hotel Nantipa, a member of the Board of Directors for Tabacón, Nantipa, and Hotel Presidente, and the treasurer of the Costa Rica Chamber of Tourism, Mikowski works to integrate sustainability and unparalleled service into every facet of his hospitality offerings.

Mario Mikowski

Hotel Investment Today talked to Mikowski about his sustainability initiatives, growth plans and more.

Hotel Investment Today (HIT): Your commitment to eco-friendly practices is reflected in a report on the sustainable status and related initiatives at Tabacón Thermal Resort & Spa. It’s an impressive, comprehensive document. How long has the resort been publishing that report, and why?

Mario Mikowski (MM): The just released 2022 Annual Sustainability Report is our third official report. “Creating and inspiring experiences to immerse ourselves in life” is our ‘why’ – the mission that has guided Tabacón since we opened our doors 30 years ago. Sustainability isn’t a marketing angle for us, it’s at the heart of our identity. Producing this document and the research and analytics our Sustainability Committee put into it, keeps us accountable and shows us where we have met, exceeded, or fallen short of our sustainability goals.

This tells us where we can continue to improve, further minimize our impact, or shift our efforts to deliver on our promise. Sustainability is essential to accelerate the regeneration processes the world requires and the increasingly internal awareness about traveling with purpose, nurturing destinations, and contributing to each place we might visit.

HIT: A cost/ROI related question on that document: what returns does it produce for the resort? I’m not sure if that’s quantifiable in any way but did want to ask.

MM: In terms of sustainability costs, we have a three-person, full-time sustainability team in-house who are on the ground daily tackling sustainability from every angle of the business: managing sustainability deliverables across all Tabacón teams and driving the findings and goal-setting for this report. To quantify our efforts, we look at our output and activities year over year.

One of the initiatives we outline in the report that drives great value for us is the Alliance of Companies for Sustainability in La Fortuna, which Tabacón founded in 2018. In partnership with like-minded representatives from our nearby tourism and hospitality partners, we built this alliance to carry out important projects that bring La Fortuna closer to sustainable development as a destination.

Notable projects over the last year have included the La Fortuna Electric Route (biking paths), a training program in Disabled Customer Service, and joint sustainability work with the Arenal Volcano National Park. The team and our annual report provide transparency and accountability, which is vital for all stakeholders including guests, staff, the community and leadership team. These initiatives, in turn, protect and increase Tabacón’s bottom line by strengthening La Fortuna tourism as a whole.

HIT: That document details 17 sustainable development goals. Which of those are most important, in an ROI sense, and in what ways can you quantify such returns?

MM: The Sustainable Development Goals (SDGs) serve as our year-round blueprint for action and our commitment to the health of our guests and community, the planet, prosperity and peace, and industry collaboration. For Tabacón, they represent an important reference point as we execute our Strategic Sustainability Plan and support our overarching philosophy of sustainability – which expands beyond environmental management to include our hotel culture and social responsibility to our community. While we consider and weigh them all equally in our strategy, there are several development goals top-of-mind for our team with substantial ROI which includes infrastructure, climate action, economic growth and water sanitation.

One of the most important elements is clean renewable energy, which goes hand-in-hand with responsible production and consumption. In 2021 we began producing solar energy from photovoltaic panels located on Tabacón’s roof. In 2022, this photovoltaic system represented a saving of 33% on the kWh invoiced for the hotel sector and 17% on the company’s total consumption.

There are multiple luxury brands that will enter the market, mostly in the Northern Guanacaste Region. As long as local authorities can rush to pass and implement the zoning and urban development plans for each destination, growth of tourism will be done in an orderly fashion, respecting environmental laws and the will of the local communities.

Mario Mikowski

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HIT: Let’s take a step back from Tabacón and look at the overall development situation in Costa Rica and its potential impact on existing players.

MM: There are multiple luxury brands that will enter the market, mostly in the Northern Guanacaste Region. As long as local authorities can rush to pass and implement the zoning and urban development plans for each destination, growth of tourism will be done in an orderly fashion, respecting environmental laws and the will of the local communities.

Currently, this is a race against time and gridlock. We currently see negotiations between the communities that have a vision of development and their local government in areas like Santa Teresa, Nosara, and Puerto Viejo, for example.

HIT: Could the market get overcrowded, and lose its luster as a result?

MM: Before it was trendy, Costa Rica was a hotbed of wellness and sustainability – we didn’t use those terms yet, but they’re inherent to the “pura vida” lifestyle we value here. Sustainability and wellness as we call them now are commitments to the environment, community, and wellbeing of our guests, and the synergetic relationship between that which is man-made and nature to facilitate long-term health and longevity, respectively.

Costa Rica has paved the way for sustainability standards across the world, being 99% renewable and incentivizing rewilding and conservation for the past three decades. As international tourism developed, it became clear that the natural beauty and “pura vida” lifestyle of Costa Rica was not only our way of being, but the main attraction.

Although Tabacón paved the way for sustainability in tourism in the region, that doesn’t mean we want to be the only ones. In fact, it only strengthens Costa Rica as a destination as more organizations and hoteliers get on board with wellness for both people and our planet.

The tourism sector in Costa Rica only continues to skyrocket and demand continues to grow. Our country is known for having a lush natural environment, some of the cleanest air in the world, and one of the five internationally recognized Blue Zones (longevity hotspots with the most known centenarians), and easy accessibility from many major U.S., Canada and European hubs – making it the perfect eco-wellness and adventure destination. In post-pandemic times, these are the types of experiences today’s travelers are yearning for as we seek reconnection with each other, ourselves, and the environment.

Main pool at Tabacón Thermal Resort & Spa

HIT: Do you see more high-end or moderately priced development project opportunities?

MM: Costa Rica is a high value-added destination, with a higher cost structure than some of its closest competitors. The country has been successful in attracting and generating very high satisfaction indexes in the mid- and high-income market segments. Approximately 85% of Costa Rican tourism-related companies are small and mid-size, and most are family owned and operated. Thus, service is personalized with “pura vida” hospitality at its core.

HIT: Are there hot and cold submarkets?

MM: La Fortuna, where Tabacón is located, is a well-established hot market which has developed over the past 30 years since Tabacón’s inception. This is due partially in fact to how versatile it is, appealing to all types of travelers. From our healing thermal springs to the positioning as the ecoadventure capital of Costa Rica, ranging from rainforest excursions and relaxing wellness escapes, there’s something for everyone in La Fortuna – from outdoor enthusiasts and families to honeymooners and solo travelers.

In terms of up-and-coming submarkets in Costa Rica, Santa Teresa along the Nicoya Peninsula is steadily on the rise. Known for its surf and wellness culture and laid-back beach luxury, Santa Teresa is growing in its recognition as one of the five Blue Zones in the world. As identified by researchers Michel Poulain, Dan Buettner, and Giovanni Mario Pes, those regions are hot spots for the most centenarians due to factors such as diet, community, movement and purpose.

Properties like Hotel Nantipa (of which I am also a Board Member) cater to travelers seeking an authentic wellness escape, with packages and offerings that divulge the region’s Blue Zone secrets to longevity and total health.

HIT: Let’s talk about the more immediate future: What’s your performance forecast for Tabacón and the rest of the country for the next 18 months?

MM: Costa Rica has seen a solid post-pandemic recovery, as tourism continues to be the main driver of the Costa Rican economy. Already in 2023, Costa Rica has seen over 1.3 million visitors in the first half of the year, representing a 19.4% increase compared to the same period in 2022, and surpassing pre-pandemic levels in 2019. Tourism from North America is up 21% from last year, and European tourism in Costa Rica is up 9.3%, with a strong visitor base from the United Kingdom.

As this upward trend continues, Costa Rica is extremely well-positioned to keep attracting international visitors and capitalizing on the growing global demand for sustainable, responsible travel. In fact, Costa Rica was recently named the best travel destination in Latin America by National Geographic Travel Reader’s Choice Awards.

For both Nantipa and Tabacón, the second half of 2023 forecasts exceed our 2022 numbers and the upcoming high season looks strong.

HIT: What do you see as the biggest performance and development challenges in Costa Rica, and how to best overcome them?

MM: We always need to be aware of and try to account for global economic and geopolitical challenges, and how they affect travel. At the local level, Costa Rica must have the conversation it has avoided for the past 25 years: do we want to continue with organic, small enterprise, authentic growth, or do we want to attract larger investments and shift towards mass tourism?

Another big challenge that is fast approaching is how to manage the exponential growth of the informal sector, led by lodging alternatives such as Airbnb, short-term rentals, their effect on real estate prices, and hotel occupancies and rates. Sooner rather than later Costa Rica will need to tackle this issue at the legislative level, regulate the activity and even the playing field.