INVESTING IN COSTA RICA: A FOREIGN DIRECT INVESTMENT ASSESSMENT AND PROPOSAL BY A UNITED STATES-BASED CORPORATION TO THE GOVERNMENT OF COSTA RICA ASSOCIATED WITH AN ECOTOURISM DEVELOPMENT PROJECT
This document develops a foreign direct investment assessment and proposal by a United States-based corporation to the Government of Costa Rica associated with an ecotourism development project. The two major sections of this document are (a) the assessment of the proposed project and (b) a proposal to the Government of Costa Rica seeking approval to conduct the proposed project.
Assessing a Proposal for an Ecotourism Investment Project in Costa Rica
The project proposed by a United States-based corporation for an ecotourism investment project in Costa Rica is assessed in this section. The assessment includes (a) a description of the proposed project, (b) a country risk analysis of Costa Rica, (c) a cost-benefit analysis of the proposed project, (d) a financial risk analysis of the proposed project, and (e) pros and cons of conducting the proposed project in Costa Rica. Following the assessment of the project, a proposal to the Government of Costa Rica is presented. The purpose of the proposal is to gain approval for the conduct of the project.
Description of the Proposed Investment Project
Tourism is a major growth industry in Central America. Tourism growth is especially strong in Costa Rica. One reason for the growth of tourism in Costa Rica is that the country is relatively untouched by terrorism threats. The ecotourism segment of the industry is the primary growth driver in the tourism industry in Costa Rica (Stem, Lassole, Lee, & Deshler, 2003). Competition in the ecotourism segment of the tourism industry in Costa Rica is lively; however, the market is growing at a rate that will support new entries into the ecotourism segment of the industry in Costa Rica (World Trade Organization, 2005).
The proposed ecotouri...