While oil prices have dropped from the $145 per barrel levels of just a few months ago, to less than $36.00 per barrel, Costa Rica has been very slow adjusting gas prices here to reflect that decrease. Somebody is making some serious cash, and it is NOT me.  However, prices are due to come down this week.

Today, tomorrow, or perhaps on Wednesday, after publication in La Gaceta, the price of regular will drop to ¢408 per liter, super will run ¢416 and diesel will cost ¢427 per liter.  As many of my readers are metrically challenged (as am I) the formula is One US gallon = 3.79 liters.

So doing the math ( and someone comment please if I screw this up!)!  Using 550 colones/dollar…

• Regular:  ¢408  x 3.79 liters/gallon = ¢1,546 per gallon or $2.81 per gallon.
• Super:  ¢416  x 3.79 liters/gallon = ¢1,576 per gallon or $2.87 per gallon.
• Diesel:  ¢427  x 3.79 liters/gallon = ¢1,618 per gallon or $2.94 per gallon.

This is really incredible!

These prices are just ridiculous and while about half of what they were last July, clearly do not reflect the fact that oil is trading at less than $35.00 per barrel as of today!

$35.00 reflects  a drop of 76%, yet Costa Rica has  not passed this on to Ticos.  In fact,  it has already sent notice that they are considering an increase as soon as next month. Huh?

Sadly, this seems to not be of interest to anyone, and not even the local newspapers care to ask how can this be? I am amazed that La Nacion or Channel 7 news is not asking the government why these prices are so high…. more than double the cost in the USA.  Worse, this is just another nail in the tourism coffin as tourists are now more and more sensitive to travel expenses.

I will admit to not knowing what expenses Costa Rica must incur to bring the oil to this country.  However, as most oil comes from the middle east, I doubt there is a 100% difference in cost. Further, as Venezuela is just down the road (OK OK ocean), cost to import should be less! Finally, labor costs in Costa Rica are but a fraction of those in the USA.

OK… rant over. I still consider myself a guest in this country so I do try to control my complaining, but I would sure like to build a fire under some hotshot reporter who can ask and get some answers from the government.

More and more aftershocks are hitting the same area and those still there are living in constant fear. Yesterday afternoon at least 10 aftershocks were felt areas of Sararipiqui. The smallest was 2.7 and and the largest was 4.5 (about 2 PM yesterday) on the Richter Scale.  Many could be felt here in the Central Valley.

The weather is not helping. While the Central Valley enjoys near perfect weather, the mountainous areas in and around Sararipiqui and the Poas volcano are suffering rain almost daily. The risk of mud slides is high and there is some talk that the government may have to evacuate the area. Because some areas can now only be reached by helicopter, and the rain and low cloud cover prohibit that, an evacuation would indeed be a daunting task.

I have received several emails from people planning trips to Costa Rica, all asking if it is safe to travel here. The overall answer is yes. Clearly, however,  if your travel plans included a day trip the the Poas volcano or you were planning to raft on Sararipiqui river,  planning to stay at the Peace Lodge and visit the La Paz waterfall, you should certainly delete those from your itinerary. Check with your travel agent as to when these attractions will again be available.

Currently, the death toll is at 23. As there is still a list of missing, this will probably rise as searchers now have given up the work.

New Quakes

Five more earthquakes hit Costa Rica last night and in the early morning hours.  All occurred in the same general area and the massive 6.2 from last Thursday. The biggest was 4.3, not a biggie, but enough strike great fear into the people of that already badly affected area.

If you are interested in an interactive web page showing who felt what during the many quakes, click here.

Poas Volcano

If that were not enough, the Poas volcano had a small eruption this morning.  Thursday’s earthquake was centered only a few miles from the volcano, normally dormant.  Should Poas become active once more, the implications are truly scary for the thousands who live nearby, including my wife’s sister whom we visit 2-3 times each month.

Gone!

The town of Cinchona de Sarapiquí, Heredia has apparently simply been removed from the map of Costa Rica.  It no longer exists. For many years, I have wanted to visit the La Paz waterfalls.  It was a HUGE tourist attraction here in Costa Rica, and if I understood the news correctly this morning, it is gone!  I tried to verify the facts in the paper, but could not.  My  wife, though, verified that I had heard correctly.Also gone is the San Rafael waterfall.

CORRECTION:  La Paz is NOT gone! My error!

The river Sarapiqui has been badly damaged and is running thick with mud and dead fish.  This too was a very popular attraction for those tourists who wanted some great white water rafting.

The Environment

A disaster in and of itself. The damage done to the environment in the affected area is enormous and affects not only the wildlife and the natural beauty of the area, it will have a profound affect on eco-tourism.

The earthquake has altered the biological corridor San Juan-La Selva, placing  important wildlife at risk.  This includes  mammals, birds and reptiles.  Creatures such as  jaguars, lapas, jaguars, tapir and monkeys  are just some of the animals that will feel the effect of the earthquake.

Giselle Monge,  director of the School of Environmental Sciences, National University,  feels that it will take at least a decade to recover the original ecological balance in the area around Vara Blanca Poás and other sites belonging to  San Juan-La Selva biological corridor.  A biological corridor is a geographic area that ensures the maintenance of species diversity and ecological and evolutionary processes, facilitating conservation.  The collapse of the mountain certainly caused total destruction of the habitat for some species. The Biological Corridor San Juan-La Selva is known for its large quantity of almond trees which provide habitat for the Great Green Macaw.   The extensive wetlands are also considered critical to the survival of the manatee.

With the arrival of the rainy season around May-June, the now unprotected mountainsides will collapse. Soil will become saturated and unstable.

Experts are also predicting a change in the flow of rivers  which certainly will affect the habitat of some species of reptiles, animals and plants growing alongside the rivers.

The festival in Palmares has been postponed at least a week.

And although I know this pales compared to the rest, the Angel (foods) factory near La Paz has been nearly destroyed affecting a lot of workers. They make, without a doubt, the BEST pineapple marmalade there is. It also points out that even though many people survived, there is no work in the area. I expect an increase in crime in and around the zone.  So sad.

Latest Numbers:

16  dead
22  missing
1.058  people in CAJA hospitals
128.135  directly affected
2.300  homeless
100  injured

Estimated damage: $100 million

For more Costa Rica news (in English) click here.

Those of us who live here deal with the many earthquakes.  Just a fact of life.  Those who live or have lived in California know all about it. The vast majority are small shocks (3-4) that rock the bed, make some noise and are generally not big deals.  Buildings in Costa Rica generally are built with a LOT of Rebar and concrete and most are very safe and suffer little damage. There are, however, many homes, especially in the country and areas not prosperous, that fall apart in the quakes.

This earthquake was nasty… 6.2. It was supposedly the strongest in 150 years… though I am not sure how they know that as the Richter Scale was not developed until the 1930’s.

There have been over 2,000 aftershocks of which we felt maybe 30. That in itself is unusual.

It did a lot of damage.  It hit on Thursday just after 1 PM. The most serious damage was as a result of landslides and homes just shifting and falling down hills and mountainsides. Many people were trapped under falling debris.

It was an odd quake.  I was taking a nap and was deeply (I think!) asleep when it hit. The entire house was moving and I do not mean a little. I called for the housekeeper who was really upset and we stood in a doorway until it passed.  Maybe 40 seconds or so. Most quales are kinda fun… this one was not.

Only damage to the house were some cracks in the patio.  Nothing in the house even fell… truly amazing as it was hard to stnd up!

I was lucky enough to get a call through to my wife whose office is on the 4th floor of Calderon Guardia Hospital.  She was scared but OK. The third floor suffered a lot of damage though.  No dead.

More soon… promise!

However, I did not want to discard it, and I decided it might be of general interest to a lot of readers, especially to older folks considering a trip to Costa Rica and more especially to older women who might like to travel together! Here is the account or the trip taken by Della and her female companion and written by Della.

My friend Joanna was treated to a Costa Rica ‘resorts only’ trip by her son and daughter in law last December. She came back psyched about living there and wanted to explore more of Costa Rica. So, I signed up on the ‘Real Costa Rica blog’ and started following comments -

We left San Diego, Ca. March 27th, having taken Frontier Airlines (cheapest, and least time spent) to San Jose. We had reserved a 4wh. dr. SUV, and headed out to explore the Nicoya Peninsula. We had a map from the rental office, and headed out, the hair on our back rising as we maneuvered getting out of San Jose. Once accomplished, and taking the ferry from Punterenas, we were much calmer and happier starting on our adventure.

We did follow the ‘rules for tourists’ as you mentioned, always taking our bags in at night, always having our auto within our sight. We did not wander at night -

Ticos seemed curious, interested and surprised to see two Sr. Citizens out and about, through back roads and inland, through small communities and farmland, and everyone we met was friendly, kind, helpful, and informative. Most did not speak English, we do not speak Spanish, but we learned the important words and used sign language to get around. We had such a wonderful time. We wanted to be in the culture, among the people, and we did just that. Pharmacias, cabinos, bancos, agua, banas, fruitas, we got by. Oh yes, we learned to say ‘mucho gusto’.

We stayed in family run cabins, and felt very safe.

I did most of the driving, and the mountains were the adrenalin pumpers for me – blind curves, large trucks, with only room for one vehicle at a time – sideless bridges, ruts in the ‘roads’ more like mud or gravel trails, that was more scary than anything else, but, we managed well.

Being able to stop when we saw a little ‘art shed’ and seeing the lovely art work, and being invited to meet the family – see the baby parrots, and Tucan, in the back yard, meeting the family’s children, both of us willing to try to communicate, giggling at our attempts – even in the off the beaten path, money was no problem as nearly everyone counted in dollars.

We usually were given a ‘typical breakfast’ included with our cabin, in the a.m. I like eggs over easy, and this is not very common I guess so I asked if I could make them myself, so they let me make them, in their kitchen.
Fun…

We found a glorious little teak cabin that one family had put up, cut into the mountain, overlooking the vastness below, and the ocean way in the distance. Breathtaking.
Since it was the end of the dry season, water was sometimes low, and these people were so sorry the town had cut the water, that they gave us not only a wonderful breakfast, typical style, but made fresh corn tortillas and lots of rice and beans, and cut mangos to take with us for lunch. They showed us their cage full of quail and eggs they considered a real delicacy.

It was odd to me that near the ocean, it was so hot – due to the proximity to the equator. Hadn’t thought of that….

Montezuma we liked a lot, we stayed in a very nice hotel, and the restaurants were superb…. Cobano was like going back in time 60 or 70 years. our last two days we stayed in San Jose, with our auto parked in the hotel ‘basement’ at night. We found the hotel as it was getting dark, and were glad of it, because a few blocks away as we were looking for a bed and breakfast sign we had seen, we found ourselves in a huge very ‘ghetto’ neighborhood, then a few blocks further, a neighborhood with lovely homes, completely ironed in, driveway and all, and men with billy clubs and dogs guarding the streets.’

The hotel staff was friendly, informative and fun to converse with as well. A huge park several blocks away had an art festival every Sunday and we found some great treasures.

My friend is still interested in living there, but I have a bad back, and cannot imagine driving the roads there, where about l% of the country, it seems, is paved.

I am thankful we had the ‘Real Costa Rica blog’ as our guide -

If she does move, she has no rose colored glasses on now, and will more than likely rent, and not buy. Very good help on that.

I will come again to visit!!! – and learn more Spanish as well. We arrived back home on April l3th. It was the best l7 day adventure we have ever had. People are people, everywhere, and looking for the similarities, and being willing to explore the differences, using common sense, looking forward to each day’s difference as we headed out in the am was really very special.

So this is a great thank you for the time and effort put into keeping the blog going, and people contributing as well.

Thanks for the nice words and thanks for sharing your vacation with us. I enjoyed reading your account, and I hope my readers will also.

(Next time you come, do read The REAL Costa Rica main web site. Then you will know just how hot are the beaches in Costa Rica.)

This phenomena occured on 9 June when I wrote the post entitled “3,000 Jobs Gone? Why?“. I am 99% sure I read in La Nacion that the new regulation had been published in La Gaceta. It appears I was wrong and it was not published. As Bugs Bunny would say, “Whatta maroon!”.

In Costa Rica, before a law or government decree can be enforced, it must be first published in La Gaceta. The fact that it was not explains why, during my (purely research based) visits to the various casinos, I found them operating as normal. So now I must grovel to my readers and apologize for the mistake. The rest of that post is just fine.

However some of these changes will be published… perhaps as soon as this week, though it seems the decree affecting hours may not be published. If it is, those 3,000 workers will be unemployed as nearly all casinos are 24 hour per day businesses, and the reduction to an 8 hour day (6PM to 2AM will certainly hurt a lot of people.

But… as the government does not appear any too anxious to publish the decree relating to hours, who knows? Could be somebody’s brain kicked in and they realize what a truly bad idea is the cutting of jobs.

Further, there seems to be some question as to whether these decrees will affect existing businesses. One of the new “rules” is that a casino must be part of (actually IN) a hotel and may not take up more than 15% of the total space. How places like the Horseshoe, a landmark and not connected to any hotel, will fare is anybodys guess. The same is true for the Fiesta Casino near the San Jose airport. It too stands alone.

Anyway… now you know!

Lately, the active volcano has been strutting her stuff, and this has been going on for some weeks now. Customers of mine witnessed a fine show just this week.

The volcano is near the town of La Fortuna de San Carlos, about three hours northwest of San Jose by car. We go fairly often and rooms are always easy to get, especially now in the low season. The beds in many of the hotels are positioned so you can watch it at night. Beats Leno!

Wanna see something cool? Come take a peak! Bring the camera.

I had an issue a few months ago, and was forced to remove and reinstall the web site. Today I was able to get it back online with all the original Posts and reviews. There is also a nice section for trading recipes!

All my readers are invited to join and give your opinion, good or bad, on any restaurant, soda or other eatery here in Costa Rica. The Web Site is Costa Rica Eateries and I hope you will call visit and add your favorite places to eat in Costa Rica. Enjoy!

To provide a bit of background for newcomers, visitors and tourists, there are currently two cell phone systems here in Costa Rica. The first, TDMA , often referred to as “the old system” and GSM, “the new system”. New is better, right? Often true, but in this case… totally not true.

The GSM system was installed some years ago by Alcatel, a French company under contract to ICE the government-run monopoly that controls all telecommunications in Costa Rica. Apparently not satisfied with just trying to win this huge contract in a competitive manner, Alcatel decided to spend some cash in order to bribe some key decision makers in ICE and in the Costa Rican government. About $11 million as I recall! This was also distributed to at least two and probably three ex-Presidents of Costa Rica, two of whom spent some time in prison for accepting these bribes, and a third who is currently hiding out in Switzerland, unable and apparently unwilling to return to Costa Rica for fear of also passing a few hours in the slammer.

This is important to know because the GSM system installed by Alcatel simply did not and still does not work well at all… and it will soon be the only system available.

Recently, ICE announced, in their incredible wisdom, plans to phase out the TDMA system over a three year period beginning in 2009. I am presuming that their intentions are good, pehaps wanting to update and maintain a more current technology. I would support this decision enthusiastically if only the GSM system worked! It does not.

There are huge areas where the GSM system simply does not work and far more areas where it just works poorly. I live and work midway between San Jose and the San Jose airport, and a GSM phone will not work in the home or office. I need to walk down the road 200-300 yards to get service. Many parts of Santa Ana, Urica, and other populous suburbs of San Jose have spotty coverage at BEST!

Even if you are lucky to be in a zone that does have coverage, you are often told that you cannot connect or are told to place your call later. I have lost count of the times I have called my son only to hear that service is not available. This does not mean he is out of service zone; it means the stupid system cannot process the call. During rush hour or bad weather, just forget calling anyone or receiving calls. Theoretically, GSM phones can be set up via Bluetooth to provide Internet access. Internet is offered as a costly service on GSM phones. I tried it and the service is terrible, often not working at all.

The Southern Zone (near the Panama border) has fine TDMA coverage but crummy GSM coverage. As many people use their cell phones as the only form of communication, when the TDMA system shuts down, they will be without communications. Remember it can take years to get a land line installed, so mobile communications is often the only option.

I think by now you get the point. GSM is not a good solution!

So how does this affect Ticos? It screws them of course!

ICE has announced that they want those TDMA phones back so they can be recycled. Good idea. So that means every person who is currently using TDMA must go out and buy a new GSM phone and return their old one. But… GSM phones are not cheap here. All are sold at retail. Buyers could easily have to pony up $300 or more for a new (basic) GSM phone. Some readers might think that $300 is not too bad, but you must consider that that is more than the entire monthly income for hundreds of thousands of Tico households! To place this in perspective, if you currently earn $60,000 per year in the USA, you would need to shell out $5,000 for a cell phone! That is a big expense and this will most assuredly be a burden on low and even middle income families. I am guessing that this will leave many low income families completely without communications. That, or they will buy on credit further exacerbating the huge outstanding credit problems in CR.

Another problem! Costa Rica is now becoming home to more and more foreigners who do not speak the language. The voice mail system on the GSM phones is not available in any language other than Spanish. Now I admit to not feeling real bad about this as it is my opinion that if you are going to live in a Latin country, you must learn the language! However few foreigners arrive here already speaking Spanish, and a cell phone really is a necessity.

All and all, this is a bad idea that helps nobody except the cell phone retailers and the credit card companies. It will hurt a lot of low income families. There should be a better plan.

Caution! Rant coming!

As most expats, I watch the current political battle for the Presidency of the United States. I watch as Barrack Obama and others make their stupid claims that they will “do something” about the price of gasoline in the US, now over $4.00 per gallon in 23 states. They just don’t get it. To me, it as is stupid as their claims that they will stem the outflow of jobs from the USA to other countries. I have news for them. The first will not happen without strong leadership and new ideas (which neither candidate has even remotely shown) and it is years too late the do anything about the second.

People love to blame big oil. It is so very convenient to blame those big companies rather than accept responsibility for what is the real problem. We are pigs, and this is not limited to those in the USA. The same is true here.

The USA has about only 4-5% of the world’s population yet uses 25% of the world’s oil! Oil is a commodity and nothing more. All countries use oil and therefore all countries must buy oil on the world markets. Demand affects this price as does supply. The new big kid on the block is China, a country that is now flexing its economic and manufacturing muscle and their needs are huge. Demand! They buy a LOT of oil and that is not going to stop. In fact, it will be just the opposite. The oil companies in the US, as the government of Costa Rica buy oil on the world markets and they pay whatever is needed to meet their demand. There is no real negotiation as someone else WILL pay the asking price.

So who is to blame? George Bush? YES! Bush and every single President of the United States for the past 25 years of so. Also, every member of congress, Republican or Democrat. Not ONE of these clowns has evidenced a modicum of guts and taken a leadership position to wean us off oil, and that CAN be done. Look at Brazil, a great example. Any action we start today will take years to bear fruit, so our leaders bicker, blame each other, blame the other party, blame the oil companies… whatever! Can you imagine a politician standing up and saying that he or she accepts responsibility for the lack of leadership? Many members of congress have been there for years, decades even… and they do nothing! It is time to throw the rascals out!

So what is needed and needs to be done? To answer that, we need to look at both supply and demand. To drop oil prices, either supply must go up, demand go down, or (preferably) both.

Supply

Drill new wells. Simple huh? It is not. Why? We now run afoul of the environmentalists. Everyone wants to do something about the environment. Hell, it is our earth, but oil is in places we want to protect and the oil companies cannot drill there. Much easier to drill in someone else’s country right?

The result? We become subservient to that bonehead in Iran, the Saudis, Hugo Chavez. An entire cadre of world creeps. In fact, is there one major oil producing country that even likes the USA? Between them, they exert enormous control on the USA and its economy. This can not continue. We are at peril.

So the big decision needs to be made. If we are not going to use self control and use less gasoline and oil products (reduce demand), we need to increase supply, but only from our own country (USA). That means drilling new wells in places that will give the environmentalists heart failure.

Even here in Costa Rica, that decision may need be made as there is evidence of offshore oil deposits on the Pacific coast. So far, Costa Rica has not even permitted exploration. I wonder how they will think when gasoline hits $9.00 per gallon. I cannot see how we can have it both ways.

Then there is nuclear power! Oops, here come those pesky environmentalists again. Coal? There is enough coal to produce electric power for the entire USA for 90 years! It is also VERY cheap and there have been new techniques to clean up burning coal. Not as clean as nuclear, but much better than years before. Do you think that 90 years will be long enough to find some real leaders who will wean us, forcibly if necessary, from suckling the breast of big oil? Well certainly not in this election year if McCain and Obama don’t stop stroking us with platitudes and start addressing the real issues.

Besides, silly me! The environmentalists will never permit us to use coal. Heaven forbid!

It also probably does not help that there has not been a new oil refinery built in the USA in 30 years. Why?

Demand

Everyone complains about the high gas prices but that seems to be it. Of course some folks have switched to using public transportation, riding a bike to work, etc. Do you know a lot of them? I do not. I keep in touch with people in the US and no one has really made a lot of changes. Couple of canceled drive vacations.

Here in Costa Rica, they interviewed a bunch of people and asked about the gas prices and how it is affecting them. The poorer folks already use buses as they never had a car in the first place, but the others? They are buying fewer clothes! No kidding! Rather than cut back on driving, they are using discretionary spending to buy maybe one less pair of shoes. Go figure. And Costa Rica has a huge and extensive public transportation network. Get the impression that folks are resistant to the process? Someone needs to do a similar poll or survey in the USA.

But some places in the USA, Los Angeles comes to mind, were never designed around a public transportation system. So how do they cut back? CAN they cut back? If they could, would they? People love their cars and love their freedom to hop in and get away.

Alternatives

So all this us with the alternatives. Hybrid cars are cool, but it takes about two years for the increased cost of those cars to be offset by the decrease in fuel cost. Down here it takes 3-4 years to offet the higher price.

Work from Home. Telecommute?

Alternative fuels? Brazil uses a fuel made from sugar cane I think. Far cheaper. Efficient. Clean. They are far less dependent on oil than most any other developed country. Odd then that our US congress has placed HUGE tariffs on the import of alternative fuels. Yup! Cross my heart!

I can go on, but I am tiring of my own rant. We need leadership. Someone who will maybe place a tax of 100% on any vehicle that uses less then 35 miles per gallon. Imagine a world sans SUVs, gas guzzlers, etc.

Back to Costa Rica. Today’s increase is the sixth this year with another most assuredly coming in July. Gas prices here are government controlled and prices at all gas stations are fixed.

Gasoline today is $5.10 per gallon for super, $4.97 for regular and $4.82 for diesel.

In July, you can pretty much be assured of an $.11 per gallon increase across the board.

When I arrived in Costa Rica, I bought the car that I currently own. Still runs great. To fill up cost me about 7,000 colones (about 8,000 colones in today’s valuation or $15.23).

Today, it costs 30,000 colones or $57.47.

I was gonna go out and buy a new pair of shoes for my wife’s birthday this week.

Changed my mind.