Monday 23 April 2012
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Escape From Costa Rica?
By John Holtz*

A lot has been said about the grand “exodus” from Costa Rica and some indicate that it might take on biblical proportions. Where are all these people headed? According to rumor, places such as Panama, Nicaragua and now, the flavor of the month, Ecuador.

These countries are becoming very popular and with good reason. They read and sound like attractive places to live. Sort of like Costa Rica is and has been marketed, but them comes reality!

However, before I put my property on the market at a fire sale price and escape “doomed” Costa Rica not to mention, God forbid, start life all over again there are two critical questions begging to be answered about all this.

First what constitutes an “exodus”?

Perhaps a couple of disgruntled neighbors who thought they were buying into “pura vida” but discovered differently, or some longer term tourists who want to seek more stability than having to leave the country every 90 days, even some retirees who are on their way back home after being priced out of the market. Granted, the reasons to leave are many and it is not too difficult to justify a departure, al la Mel Gibson who remained here long enough to run up a delinquent tax bill and shorter than the Kardashian – Humphrey marriage.

After reading a plethora of blogs, comments and articles I do not know what English speaking expats bring to the economic table that warrants such self imposed, unabashed esteem? Even less, our blatant, distorted sense of superiority?

When sales were slower than a slug, General Motors rolled out some irresistible offers that increased customer attention. However, when sales recover, the discounts vanish and prices go up. Costa Rica is no exception to that supply and demand business concept.

Sure, some expats invest into businesses that employ nationals. But overwhelmingly most of these micro businesses employ fellow expats who are either perpetual tourists or just here illegally until caught up in some kind of police raid. (Maybe this is what is meant as a “Free Market Economy”?)

How many times have we read and heard that 50,000 perhaps 100,000 North American expats are living in Costa Rica and that these people have brought buckets of money and feed the ever hungry economy? But according to the official census report of 2010, that´s not the case at all.

The total amount of expatriates who are legally residing in Costa Rica is 346,956 of which only 13,775 are from the USA, 2,083 are from Canada but 240,774 are from Nicaragua and they came to work. The balance is scattered about the globe.

Out of a 4.5 million population 346,956 are legal expatriates which is less than 10% of the total population living here and of that, about 17,000 are U.S. or Canadians who call Costa Rica home and that, frankly, is not going to get much attention.

These numbers do not factor in either the “perpetual” tourist group or those people living in Costa Rica illegally which in total might very well outweigh the legal residents.

I also read, as posted by an English speaking commentator, that if the perpetual tourist is eliminated from Costa Rica the economic results would be staggering. I am curious why such a simplistic conclusion for a group who takes away local jobs, pays no taxes, uses but does not pay into the healthcare system, sends their offspring to public schools free of charge, etc?

Here, on “Inside Costa Rica” we read almost daily how the expat is running for the borders of Nicaragua, Panama and Ecuador.

Are these places panaceas or excuses for not coping with our countries of origin or Costa Rica? Admittedly, the cost of living has become expensive, crime has escalated and corruption is rampant on all levels not to mention there is an endless list of other negative factors.

On the other side of that fence, Costa Rica still offers many options where to live that are not hectic, the traffic is not horrific, the crime rate is livable and the cost of living, while not cheap, is tolerable.

As far as government corruption goes? Not too often will it directly impact the expat, but when it does or will….that hurts just like the President of Panama, Ecuador and Nicaragua found out.

I doubt very much the expat claims of exodus from Costa Rica can be substantiated and are, more than likely, expressions of deep frustration in search for others who will empathize with an “I can´t cope” anymore shroud. And, I do know that feeling all to well.

As a long time professor, part father who has since died used to say, “..worry about what you can correct and don´t worry about what you cannot.” But, Stan would also profess that if you are legal, take every advantage of your rights and make every effort to effect change as you see it being needed.


*John Holtz can be reached at [email protected]

Census Source: Planificación Institucional, cuadro elaborado con base en el Sistema del Departamento de Residencias, información de las Oficinas Regionales del Régimen de Excepción y del SINEX 2011



 
 

 

 
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