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County eyes sustainable hospitality

February 23, 2017

MONTEREY -- Costa Rica and Monterey County are nearly 3,000 miles apart, but they share some commonalities -- both are abundant with natural resources, picturesque coastlines and national parks. Of course, Costa Rica has over 100 volcanoes and now, through a collaboration with California State University, Monterey Bay (CSUMB), key business, community and business leaders in both places, are looking for ways to collaborate and learn from each other.

On Thursday, more than 135 attendees, including leaders and representatives from the county's hospitality industry, educational institutions, and elected officials, gathered for the day-long Sustainable Hospitality Development Symposium in Monterey, the first of two symposiums between CSUMB and the Costa Rican government held as an information exchange to boost eco-tourism and hospitality in Costa Rica and Monterey.both locales

Thursday's symposium was sponsored by the Inter-Continental Monterey, the Monterey County Hospitality Association, the Monterey Bay Aquarium and the Monterey County Convention and Visitors Bureau.

Thursday, attendees included U.S. Rep. Jimmy Panetta (D-Carmel Valley), state Assemblywoman Anna Caballero, Monterey County Supervisor Jane Parker, CSUMB President Eduardo Ochoa, business leaders such as Ted Balestreri CEO of Cannery Row Company, Cody Plott COO of Pebble Beach Co., and executives from Salinas Valley-based companies including Teresa Matsui of Matsui Nursery and Kurt Gollnick, COO of Scheid Family Wines, which represent Salinas' robust agriculture industry and fast-growing wine industry.

Costa Rica's contingent included Alberto Lopez, general manager of the country's Board of Tourism, and Alfonso Gomez, vice president of Azucarera El Viejo -- one of Costa Rica's largest sugar cane companies. Former president Jose Maria Figueres Olsen, who was to attend but could not due to a family emergency – spoke via video.

Leading tourism officials from Costa Rica shared tips and strategies that has made the country one of the top tourist destinations. Tourism has been rising fast. In 2015, there were 2.6 million visitors, a 9% increase from the previous year and it outpaced the national GDP of 2.8% by threefold.

The tourism industry as a whole makes up 70% of the country's GDP, with hospitality contributing 17% to the GDP, 27% of total employment and roughly 40% of exports. The average tourist spends $1,300 and stays 13 nights, compared to an average of 3 nights about 20 years ago. The country has 45,000 hotel rooms.

Lopez said Costa Rica strategically spotlights its natural resources including volcanoes and rain forests, encouraging visitors to engage in outdoor activities such as kayaking or hiking. About 60% of its tourists visit more than two national parks.

The country's population is relatively small with nearly 5 million people spread over 51,000 square kilometers.

In recent years, Costa Rica has become a top destination for medical tourism, too, which attracts roughly $300 million annually.

Lopez said keys to success are being focused, knowing how you want to be known as a destination, and working closely with elected officials on creating the necessary policies.

"There is wide private sector representation in decision making including board of directors of the tourism board," said Lopez, noting the close collaboration between the public and private sectors.

The Board of Tourism also enacted a sustainability ratings system and certification for businesses including hotels. Lopez said international hotels such as Hilton, Four Seasons and Hyatt have received certification.

Costa Rica has certifications for six business sectors including car rentals.

Hospitality is equally a key economic driver in Monterey County; in 2016 tourist spending brought $160 million in economic benefits to the county, according to the Monterey County Convention and Visitors Bureau. The number of tourists, estimated at 6.1 million annually, trumps the city of Monterey's year-round population of roughly 30,000.

The Monterey Bay Aquarium draws about 2 million visitors a year and 5 million tourists alone go to Cannery Row. Other key tourist attractions include Pebble Beach, which includes three golf courses and two private clubs.

Marcus Hays, a local account executive for Hertz, said Monterey is a big market for Hertz in the Central Coast and Bay Area.

"There's just so many people coming here we want to be a good partner for the county," Hays said. "For me, it's just learning and meeting new potential partners."

Lopez said Costa Rica can learn a lot from Monterey County, including best practices and protecting marine life.

"We have been successful protecting national areas on continental land, but with marine zones we have many challenges," Lopez said.

More jobs and tourists

For Monterey County, the goal is to attract more tourists and create more jobs to boost the economy, said Shyam Kamath Dean of the College of Business at CSUMB.

CSUMB has been working to boost its hospitality programs, and in 2015 launched the Sustainable Hospitality Management Program, a bachelor's degree program run by executive director John Avella, who is also a board member of the Monterey County Hospitality Association.

The collaboration with Costa Rica started after Ochoa returned from a trip there and urged Kamath and Avella to connect with Roberto Levi, president of America's Educational Programs. Last summer, Kamath and Avella connected with Levi and began intensively brainstorming.

"I said Monterey County/Monterey Bay is one of the most pristine regions in the United States and a leader in hospitality and tourism and a leader in recreation," Kamath said. "Costa Rica is a leader in the eco side of that equation, so we said how about us forming a partnership and the country forms a partnership with state and we would create a partnership. They gain our expertise in hotels and tourism and we can gain their expertise in the eco side."

CSUMB's Sustainable Hospitality Management Program has grown from 70 students to an expected 120 the coming fall. It also includes a summer exchange program in Costa Rica and a class on eco-tourism.

Kamath said CSUMB is keen on working closely with elected officials and businesses on increasing hospitality here.

"We are doing this for the region, we are branding ourselves as the number one eco-tourism destination of country and create green jobs," said Kamath.

Work force

Immigrants are the backbone of Monterey County's hospitality and agriculture industries, the key economic drivers locally.

Immigration was also part of the discussion at Thursday's symposium, particularly in the aftermath of President Trump's three executive bans on immigration.

Panetta said immigrants are a critical part of the workforce and Trump's executive orders on immigration would be a hit on the hospitality industry, too.

"It definitely won't be as big as an impact as agriculture, but it will be devastating for all of our economy here," Panetta said.

Though he would not specifically comment on the Salinas City Council's recent decision to vote against designating Salinas a sanctuary city, Panetta said, "I do believe right now we need to be working for the most vulnerable, and let them know they are not alone."

Unlike Monterey County, Costa Rica's work force is mostly Costa Ricans with very few immigrants, Lopez said.