Investments in the Golfo de Papagayo Tourist Complex they are paralyzed for the prohibition of tree felling ordered by the magistrate of the Constitutional Chamber, Fernando Cruz, on April 17.
This is what he stated to The Nation Rodrigo Castroexecutive director of the Car Dealers Association Gulf of Papagayo Tourist Pole (Asopapagayo), which brings together the 30 developers in the area.
Castro estimated the total amount of investments in $5 billion: $2,000 million in projects in operation and about $3,000 million in initiatives under development.
“The $3,000 million are paralyzed and the reinvestments on the initial $2,000 million are paralyzed. Year after year, the hotels are renewed to remain competitive,” Castro said.
The precautionary measure prohibits the felling of trees on Panama Beach, Guanacaste, while the Constitutional Chamber resolves an unconstitutionality action against the regulations that regulate real estate development in the Gulf of Papagayo Tourist Complex (PTGP).
The ruling was issued a few days after the National System of Conservation Areas (Sinac) granted the company Enjoy Hotels & Resorts SA, in charge of the Bahía Papagayo project, a permit to cut down 748 trees and begin construction works.
“The precautionary measures do not only paralyze that project, they paralyze all of Papapayo… It is putting a stop to those $3,000 million that we have in line to be developed and therein lies our concern,” said Castro, spokesperson for Asopapagayo.
The businessman explained that the Papagayo Tourist Pole generates nearly 5,000 direct jobs and 13,500 indirect. In addition, he recalled that it has had a specific regulatory framework since 1979, when the State declared it of public interest.
For his part, Martí Jiménez, president of the National Chamber of Tourism (Canatur), indicated that, as this is a recent case, no concrete effects have yet been perceived on foreign investment decisions.
“However, it is important to note that the stoppage of projects that have the corresponding permits can generate signs of uncertainty in the investment climate”Jiménez warned.
Rodrigo Castro, executive director of Asopapagayo
The measurements of the room
Judge Fernando Cruz accepted the request for precautionary measures presented by a citizen named Xatruch Ovares and established three provisions:
- Declare a total moratorium on the granting of tree felling permits in the Golfo de Papagayo Tourist Complex, in the context of hotel projects.
- Suspend the granting of construction authorizations and density modifications in the Golfo de Papagayo Tourist Complex.
- Suspend administrative acts, particularly those issued by Minae (Ministry of Environment and Energy), Setena (Environmental Technical Secretariat) and ICT (Costa Rican Institute of Tourism), under the regulations questioned in this action.
“Today we have to tell national and international investors that at this moment it cannot be done, that everything is suspended,” added Castro, also former Minister of Tourism.
Asopapagayo asked the magistrates to review the measure and declare its nullity.
Legal security ‘at risk’
Castro defended that the Polo’s legal framework establishes that only 30% of the land can be developed, while 70% must be conserved, a proportion inverse to the country’s general regulations.
According to the spokesperson, this scheme has made it possible to attract high-level investments.
“There is a (hotel) Four Seasonsa Andazrecently a Ritz-Carltonat the same time a Waldorf Astoriathere is Marriott Autograph everywhere, it is Barcelo…The most prestigious hotel chains in the world have chosen the Golfo de Papagayo Tourist Complex to establish business there,” he stressed.
Castro added that this regime offers the legal security that investors seek to guarantee profitability over time. “Today that is put at risk,” he noted.
The Nation consulted the Costa Rican Chamber of Hotels (CCH). Its executive director, Flora Ayub, responded via WhatsApp: “On the issue of Enjoy Group we do not express ourselves.”
ICT asks for clarification
Last Wednesday, April 22, the ICT reported that it presented an addition and clarification request to the Constitutional Chamber regarding the precautionary measures included in the resolution of file 25-024408-0007-CO.
The objective is to specify the scope of the decision, since – according to the ICT – its objective and subjective scope is not sufficiently clear.
