An upscale ecolodge in southern Nicaragua hopes to achieve a 53 per cent occupancy rate within three years of opening, and has hired a management company to prepare a marketing strategy. Despite its proximity to Costa Rica and its focus on providing a unique luxury vacation retreat for one of the fastest growing segments in the travel industry - the ecotourist - the hotel faces numerous hurdles. The greatest challenge is to overcome Nicaragua's negative reputation, based on its recent history of political and social unrest, still fresh in the minds of tourists. The hotel must also operate within the country's rural infrastructure, characterized by interruptions in the power supply, poorly maintained roads and below-standard sanitation. Additionally, Nicaragua does not have a pool of skilled employees to work in the high-end service industry. The effects of these factors on the hotel's market positioning and market penetration rate are addressed in the preparation of the marketing strategy.
