A Tale of Tourists, Bananas and Big Business

Sunday, October 16, 2011

How could anyone forget a coast like this?

Dear Reader,

It's got a nickname, Costa Rica's Caribbean coast. It's not the worst nickname you could give a place. Instead, it's a reflection of the area's checkered history. It's dubbed the Forgotten Coast.

Everyone forgot about this side of Costa Rica. Many Costa Ricans have never visited this coast. Big business forgot about it and focused on the capital city, San Jose. Tourists forgot about it and flocked to the country's Pacific coast. Property shoppers forgot about it, getting caught up in a buying frenzy on the northwest Pacific coast and in the Central Valley.

But this Forgotten Coast is shaking free of its past. It's opening up to business and tourism. I expect it won't take long for the property shoppers to follow...and the Forgotten Coast nickname to finally fade away.

If you're wondering how anyone could forget a coastline rich in national parks and gorgeous beaches, well, it all stems back to one company.

Let's Start with the Past

It started with tourism and coffee. The Costa Rican government had a plan for a railroad. It would link San Jose with the Caribbean coast. The idea was to bring tourists out to the Caribbean's pretty beaches, and to transport coffee from the highlands to a Caribbean port for export overseas.

Work started in the 1870s. It wasn't easy. Thousands of workers died cutting the tracks. The government ran out of money. Bailed out by the company building the railroad, they granted them large land tracts, along with a lease to operate the railroad when it was finished. But by the time that happened, in 1890, the market had changed. Tourists were in short supply. The railroad wasn't profitable. But there was a whole new business opportunity - in bananas.

United Fruit built the railroad. To keep their workers supplied with food, they planted bananas beside the tracks and along the Caribbean coast. They switched business plan. The bananas business grew quickly. Soon, bananas were the biggest export from Costa Rica. United Fruit expanded their operations. They operated the railroad...they owned the docks in Limon...and by 1929 employed 95% of the people in Limon.

But diseases affecting the banana crops and worker unrest pushed United Fruit into pulling out of Limon in the 1960s. And the Caribbean coast slipped into a period of decline.

The decline had some upsides. It preserved the coast's unique culture and traditions. And it kept property prices low.

But Costa Rica's Caribbean is now on the move...

The Present...into the Future

It's taken a long time to start reversing this coast's downward trend. But finally, the Caribbean side of Costa Rica is getting the attention it rightfully deserves.

For starters, Costa Rica's Caribbean is attracting mainstream tourists. Wildland and Disney both now offer Caribbean tours. Frommer's ranked it a "must-see" destination for 2011. There's a thriving cruise ship business with plans to double cruise ship arrivals to 500 annually.

A luxury boutique hotel, Le Cameleon, opened in April 2009, catering to the well-heeled tourists traveling to this coast. There's growing interest in surf spots like Uvita and Puerto Viejo. The Caribbean coast also attracts divers and sport fishermen.

The Caribbean coast offers great surfing, diving and fishing

And business is coming to this coast. A new free-trade zone in Bufalo will house 12 companies. Each company must invest a minimum of $100,000 to operate here. But that's dwarfed by the investment in the Caribbean ports of Limon and Moin.

On August 30, 2011, the Costa Rican government signed a $1 billion concession with Dutch company APM to build a new port terminal in Moin. It's the biggest concession contract in the history of Costa Rica. Construction will start in 2013, and should take three years. It will increase the port's capacity and turnaround time. And it will bring jobs to the area...an estimated 2,000 direct and 8,000 indirect jobs.

Many of those workers will need accommodation...and amenities like cafes, restaurants and shopping. And to build and deliver those, you need land. This could be a trigger pushing property prices upwards...

A Caribbean Opportunity for You...

There isn't a lot in the way of residential development on Costa Rica's Caribbean side. But one development, Grand View Estates, stands out. It's a community set in 640 lush acres, in the Talamanca Mountains.

Grand View is surrounded by nature and wildlife...

The 1300-feet elevation means fresh ocean breezes, and ocean views from some lots. Nature surrounds you in Grand View...rainforest, rivers, waterfalls, bright macaws, big butterflies, monkeys and sloths.

Yet it's 90 minutes from San Jose (and world-class hospitals, shopping malls, restaurants and cafes) on a good paved road. And it's only thirty minutes from the white sand beaches of the Caribbean.

Grand View Estates is an established community

Grand View started selling home sites in 2007. Today, it's an established development, with roads, electricity, water, Direct TV, cell and internet cover. Thirteen homes are complete or under construction. It's got a social area, complete with infinity pool and barbeque. There are on-site stables for those who want to keep or ride horses.

Grand View is a successful project. The first three phases sold out in less than four years. Now the developer is launching phase four.

Lots in phase four start at $65,028 for 1.34 acres. But you can take advantage of a special 10% discount. That cuts the price to $58,525.

That works out to $10.80 a meter... a great price. Grand View's developer bought this land many years ago. You couldn't buy this land today, at current prices, and sell lots this low. Today you could pay $30 a meter for land close by - outside a gated community.

You can take advantage of interest-free financing, too. You won't get the 10% discount...but you can pay 35% down, and spread the rest over 24 months. Contact the developer here for details of this finance offer.

If you pay a fully refundable deposit, you can come and try out the Grand View lifestyle...for free. You'll stay in one of the finished homes in the community...and the developer will show you the area, to help you decide if it's right for you. (If it isn't, no worries...you can ask for your deposit back...this is a no-strings offer.)

You can contact Gill Phelan here for more information on the special offer, available lots, and the invitation to visit.

Margaret Summerfield

P.S. The visits are on a first-come first-served basis...so, if you're interested, don't put it on the back burner. Contact Gill today for a full information package.