Considering opening an operation in Costa Rica, any advice

[JamesBahn]

Hi Guys,

So to make a long story short, I have been worn thin on Wall Street and decided to make a change in my life. So I moved to Costa Rica in search for something more simple. I am in the very beginning stages of looking into opening a dive operation in Costa Rica and would love to get some feedback. This idea is very much in the infancy stages and at this point I am just looking at places where a dive shop would make sense. I know there are some top notch operations here, but they all seem to be focused on the Pacific side. Is that simply due to the fact that the majority of tourism is there, or because the diving there is much better than the Carribean?

As I said I am very much in the infancy stages of this idea so would greatly appreciate hearing your feedback.

Cheers.

 

[hpbelize]

Is there any particular reason you chose Costa Rica? If you need to be there then you have to do a lot of research. First you need to know what type of operation you want to run and what type of customers you want to target. Travel around the country and see what markets are available. Then start planning more in depth.

 

[JamesBahn]

Thank you for business 101. I am no stranger to starting business's as this would be my third. That is why I am asking people where their favorite spots are, etc. Where do you feel the industry is under represented here, etc.

 

[yellowfish]

I'll tell you what...we have been looking for a good dive operation and resort or hotel on the Caribbean side. Open one of those and our family will be there!

 

[cappyjon431]

I would not say the diving is "much better" on the Pacific side. It is certainly a matter of personal preference. The Pacific side tends to have more advanced diving (rougher sea conditions, stronger currents) with bigger critters (sharks, mantas) while the Caribbean side has easier diving, more corals and reef fish, and viz that I would classify as "OK."

We considered CR first, but ended up buying an existing operation in Panama. My one word of advice is ABSOLUTELY learn about the country's labor laws before deciding to invest. We are very pleased with our shop, but the one mistake I made in buying the business is not being well versed on Panamanian labor laws. Mistakes in hiring/firing could end up costing you a fortune.

 

[yellowfish]

Cappyjon Do you have the dive shop in Bocas? Can you tell me about diving there? I have heard the visibility is not great. What about colorful corals? Or bigger marine life?

 

[cappyjon431]

Cappyjon Do you have the dive shop in Bocas? Can you tell me about diving there? I have heard the visibility is not great. What about colorful corals? Or bigger marine life?

Visibility averages 40 feet, but can be affected by significant rainfall. The Smithsonian Tropical Research Station (in Bocas) has identified over 90 species of coral, 140 species of fish, and over 200 species of non-coral invertebrates (crab, shrimp, lobster, anemones, nudibranchs, sea stars, etc.). There is lots to see. Most of our sites are on the leeward sides of islands, so we always have calm seas and little (if any) current. We do not see a lot of large critters.

In September and October (when the rest of the Caribbean is facing hurricane season) we are able to access the dive sites on the windward sides of the islands, giving us better visibility (approx. 80 feet), cool geological formations such as caverns and swim thrus, and bigger fish.

 

[Rivermonkey]

It really depends on where you want to live. Caribbean is nice but the runoff from the mountains pretty much wipes out visibility for a lot of the year. Most major rivers run off into the Caribbean rather than the Pacific. The Pacific has some of the best big animal diving in the world in my opinion but the area is a bit overrun with dive shops. In the Coco area we have over 7 shops that are never fully booked and with the new GIGANTIC 780 room hotel on Matapalo beach and an outside company coming in to run it(ScubaCaribe), the area is getting a bit overrun. Not to mention that the local diving has suffered a lot from the excessive development and golf courses.

You could try down south near Drake, but then the rainy season comes into play and you'll have very few customers for several months. Not sure about M.Antonio area, too touristy for me.

Its a tough call. I am friends with most of the shop owners in the Coco area, which is the busiest, and running a dive shop isn't for everyone. It wont make you rich but it will pay the bills. Perhaps looking a bit further north of Coco, ie closer to the Bat Islands and Santa Rosa National Park. I know some folks are trying to build that area up a bit. And if you could run local trips to Bats, you can pretty much make a niche out of that. The only reason shops don't dive bats is due to the papagayo winds from Oct to Apr. For most dive pros in the area, Bat islands is the best in CR outside of Cocos.

Hope this helps a bit.

Cheers

 

[HerraduraDivers]

Cost Rica offers great diving with lost of fish, especially in the southern pacific regions,
but is penalized by the rainseason.
The northern region of Costa Rica seems to be less affected by the rain season,
but it's overcrowded by dive shops, so opening another will be quite useless and highly risky.
A solution could be to buy one, but i don't know if there is any available for sale.

If i would open another Dive Shop somewhere,
i would choose a location where the dive conditions are so good
to allow more than 10 month of operation to allow some extra earnings and thus financial safety.
Some of us dive operators go back in the low/rainseason to work somewhere else,
and this not (only) because they are anoyed but mostly to get some extra money.
As you are an finacial expert, i would do a deep financial analysis of the dive business you like to open and
you will realize that owning a dive shop you must:

- are i'm crazy
- do i have have a lot of money
- are i'm be able to loose a lot of money
- do i love diving more than my wife

If you answered all this questions with yes, you might think to own a dive shop,
otherwise invest it more wise and come diving with us.
You will enjoy diving and dive much more.

Best regards
Chris Karrer

 

[ScubaSam]

Hi Guys,

So to make a long story short, I have been worn thin on Wall Street and decided to make a change in my life. So I moved to Costa Rica in search for something more simple. I am in the very beginning stages of looking into opening a dive operation in Costa Rica and would love to get some feedback. This idea is very much in the infancy stages and at this point I am just looking at places where a dive shop would make sense. I know there are some top notch operations here, but they all seem to be focused on the Pacific side. Is that simply due to the fact that the majority of tourism is there, or because the diving there is much better than the Carribean?

As I said I am very much in the infancy stages of this idea so would greatly appreciate hearing your feedback.

Cheers.

Congrats for doing something most of us are fearful to do

I've been to Costa Rica twice, first time was during pre-diving life and second time was post-OW certified. Both times when I did research for the trip, every thing I read and the people I spoke to who'd been there said the Pacific side had nicer beaches and more to do and to see.

I met several US citizen transplant, while traveling around CR, who brought turn key businesses while vacationing in CR and they found the transition to CR seamless. Two brought hotels/resorts and two brought restaurants/bars.

I'm not familiar with the Caribbean side of CR but if you need a flunky to carry your coffee, donuts and flip flops, I'd like to apply for a job. ...did I mention I also do windows?

Good luck and keep us posted. I'm so excited for you!!!!!