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Recently, a friend on Facebook wrote after the Romney/Obama debate, “If Obama wins, Costa Rica real estate will jump and if Romney wins, he wants to do more business with Costa Rica, either way it is a win win … that's why I do not care about the election?” Hummm interesting comment … and one that inspired us to write this article.
Back in Nov, 2008, Costa Rican politicians [on all sides of the fence] applauded Obama presidency. If you remember, it was the beginning of the World-wide recession. “I think Obama's election is big, big for the Unites States and also the world", said Costa Rican "then" president, Oscar Arias. Or as one politician said, "Costa Rica will 'now' thrive on the wealth of American’s [new] change in government."
The problem, when America sneezes, Costa Rica suddenly feels the scratchy throat. America (and the world for that matter) is going through a bubonic plague of economic turmoil.
This U.S. presidential election will be one for the history books. It has become a War of Roses and pitted friends against friends and brother against brother. Personally, I have axed many from our Facebook fan and friend pages when name-calling got out of hand.
Since the 2008 election, Costa Rica's real estate, tourism and economic growth have taken a downhill slide – the world economic crisis is to blame, although not as bad as many other countries. In Costa Rica the services sector has been the most severely affected and of course tourism took a big hit too.
Both presidential candidates say they are the answer, but which one would be best to help stimulate Costa Rica economy?
And to be fair we will compare other presidents to that of what Obama has done and to what Romney claims he will do.
PRESIDENTIAL PR
- Former U.S. President Bill Clinton (D) went to Costa Rica in 1997 and again in May 2012.
- President Bush and President Arias of Costa Rica met in the White House in Dec 2006.
- Obama (D) has yet to meet with any Costa Rica presidents nor has been to Costa Rica.
- Romney (R) wants a strong trade agreement with Latin American countries and as far as we know has never been to Costa Rica.
The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. Chart shows how Costa Rica's GDP favored with each US President
No doubt Obama inherited a cluster bomb from the Bush Admin, but so did Reagan after Carter and Reagan did wonders to the economy. However, if you were to believe in how history repeats itself, in the last 50 years the worst US President for Costa Rica GDP was Jimmy Carter (D-1977-1981). The best US presidents for Costa Rica's GDP were Kennedy (D-1961-1963) and Reagan (R-1981-1989).
Obama is not Reagan, and Romney is a supporter of Reagan policy.
CHINA – is a huge player for America and Costa Rica. It used to be, US was Costa Rica's #1 asset; that has since changed. China LOANS billions to America. China GIVES millions to Costa Rica, so much so, Costa Rica’s now has a new soccer field, and their own China Town, which has become a monument to China just to name a few. In return for China's wining and dining bucks, Costa Rica (as we all know) turns a back on the illegal sharkfinning and poaching of turtle eggs that "blackmarket" their way into the Asia market. Hong Kong, imported some 10 million kg of shark fins last year and God-knows how many turtle eggs.
Even if the Obama administrations has filed numerous trade complaints against China, it has had little or no affect. It is no secret Romney says Obama has not been tough enough in cracking down on Chinese trade tactics. Anything that concerns China, Romney will be a lot tougher (trade, conservation and jobs) and wants more free trade to the Latin countries. See heading: US FOREIGN AID TO COSTA RICA for more on this subject.
MEDICAL TOURISM – According to Council for the International Promotion of Costa Rica Medicine (PROMED) Medical tourism generated about $288 million in Costa Rica in 2010, with an estimated 36,000 medical tourists visiting the country. In 2014, the industry is expected to generate some $800 million in dividends and attract 100,000 visitors to the country. A whopping 270% increase!
However, in 2012, medical tourist ONLY spend $300 million or ONLY a 3% increase. Why?
Costa Rica's English-language media has made it known that Costa Rica can thank the Obamacare on that; there is no reason why Americans should seek health care in Costa Rica since ObamaCare will force US taxpayers to buy medical insurance. Don't buy medical insurance and you will be hit with an IRS penalty.
Talking to a friend in Washington who has to have foot surgery, the amount of Canadians seeking health care in the US has increased 5 fold. For his surgery he has to wait 3-months. But in Canada, the wait for the same surgery is 6-months.
The dilemma, whether or not pay for it “out of pocket” in Costa Rica at a lower cost, or wait and get it paid for by Obamacare. And of course cosmetic and plastic surgery will never be covered in the United States and will continue to be a lot cheaper compared to US.
Romney will appeal Obamacare if elected. Romney also wants competitive insurance, with said, that would mean insurance company will start to insure those that seek medical tourism. This would be a huge boost to Costa Rica’s Medical Tourism market.
- Under Obamacare the Medical tourism will continue to grow, but at a craw.
- Under Romney Medical Tourism should continue at PROMED 2014 predictions.
TOURISM IN GENERAL – generates around $2.1 billion annually. Over 80% of Costa Rica's tourism comes from middle class families; the backbone of the US economy.
The net worth of US middle class and income is suffering its "worst decade in modern history," having fallen backward in income for the first time since the end of World War II. This is quite evident when 5-years ago, going sportfishing, the dock or marina looked like a ghost town after 7am. A year ago, going fishing out of Quepos, we were one of three boats going out that day out of 30 sportfishing boats. Three years ago there were over 60 sportfishing boats. Just the tourist end of sportfishing has declined over 50 percent. It is also known that over 40% of tourist hotels are behind in their mortgages.
During Obama campaign in 2008, he said, he would not raise taxes for the middle class. Under Obama, starting in 2013, the middle class will be paying and extra $2500/year for entitlement programs and small business will be paying around $1200 extra for each employee because of Obamacare.
Romney’s campaign claims he will not add more taxes to the middle class and he will give small business tax credits if they hire.
REAL ESTATE – When the real estate took a nose dive in the US, Costa Rica also got hit hard. Even the newspaper TicoTimes claimed, it was one the reason why they discontinue the print addition because their real estate ads went from dominating the 60+ pages to that of a few small ads on 10 pages.
Since 1970 Costa Rica and US housing markets has been a solid investment … with the start of 2000 it skyrocketed almost doubling the price in six years from the previous 30 years. Then in 2006 (end of Bush) it started to tank, gaining speed when Obama took office. In fairness, Obama admin can’t take fault for this, but sure has not helped the market even with low interest and its simulants plans were failures.
However, Costa Rica has not helped the matter, the real estate fraud cases have received world-wide attention and government has done little to prosecute scammers and to insure investors they have recourse when their money is being threaten.
Until Americans feel stableness in the economy, do not expect Costa Rica real estate market to make a overnight comeback. However, like America, real estate got over inflated, and now the market is back to where it should be. Four years ago a ocean view lot in Jaco would have cost you $200,000, now those lots are selling for 60-$80,000. So right now may be the best time to invest in Costa Rica real estate market, that is, providing you have a sizable nest egg.
US FOREIGN AID TO COSTA RICA
- During Clinton years (1996-2001)- Counter-Drug/Military/ assistance amounted to $4 million and Grant/Social Aid around $6 million or around $1.3 million per year.
- During the Bush eight years (2001-2008) Costa Rica received about $9 million in Counter-Drug/Military/ assistance but OVER $12 million in Grant/Social Aid or around $1.5 million per year
- Both Bush and Clinton were very close in providing aid to Costa Rica (adding inflation the amount is a lot higher) but that changed big time during Obama years.
- During the Obama years Costa Rica received almost $13 million for Counter-Drug/Military assistance and ONLY about $1 million in Grant/Social Aid or around $250,000 per year .
Romney has let it known that he plans to overhaul of America's expensive foreign aid ONLY linking aid to those counties that offers an free enterprise programs with the help of the private sector.
Romney also made it clear in the debate that would like to see more trade coming from Latin America countries than that of China. In otherwords, Costa Rica is more likely to get economic assistance "if and when Costa Rica" becomes more responsive to CAFTA.
We welcome intelligent comments, however if you plan to do any name-bashing and get hateful we will delete the comment.
I am a US citizen who purchased a vacation property in Costa Rica back in 2005. I have read everything I could get my hands on about CR over the years. Love this place for the people and beauty!!! Politics here do not make a lot of sense regardless about our president. Tourism in CR has been supported and grown by the American money. Why does CR goverment want to keep reaching into our pockets for money? I would not mind paying far taxes and fee's if we got something back. In Langosta where I bought a property the MAIN ROAD from Tamarindo is still dirt? Langosta investers in my opinion have spent the most money in Guanacaste hands down. The roads from Liberia are super, thank you CR but not the last mile and half into Langosta? Makes no sense at all. WOW Wish Romney had been elected as President then I would have asked him for help.
I'm concerned most by our staggering debt. I feel shame when I think of our children and grandchildren being stuck with figuring how to pay for our excesses. To me it's a moral issue. You just DON'T force someone else to pay your bills. Under Obama the debt has .expanded drastically. I see a President Romney and a supportive Congress as a better option to deal with this looming tragedy.
Verne Walton.
it all depends on who wants a dictator in america or if you want a leader romney has worke dwith latin america before. and will continue. im sure if somone inited him to Costa Rica he would go. 😉
The writer states several non sequiturs and erroneous conclusions…
….the only reason to vote Repub. is because you are wealthy and want to lower your taxes…..!
What about the 47% ….they matter and most are hardworking, patriotic people…..
And this scandel about voter suppression… that is so wrong!
Republican obstruction has caused much of the gridlock……
What about women's rights?
I’m with anne on this one. In recent years, the so called “businessmen” have not fared well in US elections. I wonder why this is. Perhaps because if one is to run a country as a business, the little people end up paying for it. Mr Romney may be a good guy, but just like most businessmen, their bottom line is to make money and help the rich get richer. He will drive the USA into the ground just like bush number two.
Visiting Nov 4-11 and if the anti-American Obama steals the election I plan to move to Costa Rica…as do many other Americans.
Obama is a great President!
Romney is prevaricating about his true plans…. why wont he state policy details….?
Also his tax plan math DOES NOT ADD UP!
Warning!!! Do Not Move Here, unless you have $60,000 cash per year, everything that you like to eat is over priced import or not. Pizza with cheese made here $25.00 16" taste less. or if you like pancakes, the Maple syrup will cost you $28.00 for 4oz 14,000 Colones. A26" TV at Wallmart is $1,300. the US price is $250. I came to Costa Rica in 1973, I Married my Wife in 1983, a Tica. The Government here thinks people from other country's are rich and they have laws to make you pay. Where do you think Obama got his ideas from. Travel Guides and Book Store make money from people like you. The Government here will Financially Destroy you. I must leave by November 6 ( BY LAW). The CAJA is making Foreigners pay for the Under Privileged and Government Wages. I would look at Argentina, Ecuador or Uruguary. But keep a place back home to return to! You will never be able to change where you came from. So it is A2 Brute most of the time.
Dont care for either..
I voted for Obama in 2008, and have Gringo and Tico friends in Costa Rica. Almost all say the only thing America did was give money to fight drugs, which has been a farce. Costa Rica would be better with Romney.. Nice post.
10/12/2012
This article just about sums it up. Wish all other American voters would read this! Vote Romney for all our futures. Thanks
I'm a Canadian living in the El Coco area, and found this post, first time I have seen anything that asks a question like this. Kudos to you …