by | Jul 18, 2021 | Travel, Growing Your Money, Investment, Wealth Management

Individuals with some money to invest in vacation properties, who in the past may have explored buying a beach front home somewhere, might want to consider tourism bonds in Costa Rica. These are investment vehicles that pump money into existing tourism projects and those under development that have strong Environmental, Social, and Governance directives. The Central American country, nestled between Nicaragua and Panama, remains a popular tourist destination for Americans and Canadians.

Related: Taking the Mexico real estate plunge? Read this first

In fact, according to the Costa Rica embassy in Washington, tourism is the country’s main source of income and hard currency. The country welcomes 1.7 million tourists per year, many of whom are seeking out eco-tourism vacation opportunities. Earnings from tourism amount to more than $1.8 billion per year.

According to the U.S. Department of State, Costa Rica, the oldest, continuous democracy in Latin America, is considered a stable investment climate. Now, the pandemic has tossed a fat curveball into everyone’s projections, especially as that relates to the worldwide tourism industry. So it certainly makes the announcement of the availability of tourism bonds in the country an interesting one to follow. Buying homes in a foreign country with all the details and challenges involved in that are not for everyone, as we have said before.

Costa Rica Tourism Bonds Canadas Best Luxury Website 3

Photo by Jose Acevedo from Pexels

Canada’s best luxury website: What is a tourism bond?

A tourism bond is an investment in a tourism project that offers both financial and lifestyle returns. Investors see an annual return and when your term is up you receive your original investment back. Other perks for investors includes usage of the property and in most cases residency in Costa Rica.

You can get more information on Costa Rica tourism bonds here. For example, Arenas del Mar is the only luxury resort in Manuel Antonio, located right on the beach. There are 37 ocean view suites and guest rooms, surrounded by rain forest. Plans for expansion for that resort includes the addition of luxury treehouse villas and renovations to current structures and amenities. Recognized for its luxury and sustainability, they have a 75% occupancy rate, according to the website.

Hotel Banana Azul in Puerto Viejo, a small coastal town with strong Caribbean influences, has beachfront villas and tree-house apartments, and is moving ahead with plans to add 12 luxury rooms.

Listen, who knows how the worldwide tourism industry is going to roll out, with Covid variants popping up. Tourism in Costa Rica fell by almost 70 per cent in 2020. You might be a little skittish with your money, in such a climate. And you should be skittish.

However, a tourism bond is more of a conservative approach, in a country with a solid long-term track record attracting tourists. The tourism industry there needs to attract better capital markets. And this is an interesting way to diversify your portfolio, to say the least, taking a stake in foreign real estate without having to buy or maintain property. So you can take that to the bank.

Costa Rica Tourism Bonds Canadas Best Luxury Website

Arenas del Mar

Hotel Banana Azul Costa Rica Canadas Best Luxury Website

Hotel Banana Azul in Puerto Viejo

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