QCOSTARICA — The organization Turismo por Costa Rica estimates that this year there will be a reduction in visitor arrivals of between 15% and 20%.
For their part, the Proimagen Association, dedicated to promoting Costa Rica as a tourist destination in the Americas and Europe since 1994, listed six reasons that are causing a decline in tourist arrivals.
Proimagen, which brings together 150 companies in the tourism sector, conducted an analysis of what is happening, as Costa Rica in February recorded six consecutive months of decline in air arrivals.
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The organization considers this phenomenon to be complex, influenced by several external and internal factors.
Furthermore, it believes that the six challenges identified must be addressed and, additionally, sustainable practices must be strengthened, given that Costa Rica is world-renowned for its eco-tourism. Infrastructure must also be improved.
The Six Reasons Driving the Reduction
The analysis conducted by Proimagen considers the following to be the reasons driving this decline:
- Strict cancellation policies by the business sector, especially during peak season. These policies should be more flexible, the group believes. In a context of uncertainty like the current one, this rigidity only worsens the situation.
- The dollar exchange rate. The group explains that tourists pay in dollars, and companies must cover their expenses in colones (taxes, patents, salaries, social security contributions, electricity, and water). The drop in the exchange rate causes a decrease in revenue, and therefore, companies must raise their rates to cover costs and maintain operations. This makes the country less attractive.
- The rising cost of living in Costa Rica, along with the appreciation of the colon, are reducing the destination’s competitiveness.
- Competing destinations are receiving a greater influx of tourists and offering more attractive packages in terms of price and flexibility. This is the case in Asian, Central American, and Caribbean countries.
- Airlines are optimizing their routes based on demand and market trends. In the case of Costa Rica, available seats from the United States have decreased. This is due, according to Proimagen, to lower demand due to a loss of interest in Costa Rica.
- Although Costa Rica is generally considered a safe country, the perception of global insecurity can influence travel decisions.
“The Minister’s Explanation Fell Short”
A week ago, Tourism Minister William Rodríguez, in an attempt to explain the phenomenon, said it was primarily due to a reduction in seats on airlines from the United States. His idea ended there, without further explanation, prompting criticism from the business community.
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Proimagen, the National Chamber of Tourism (Canatur), and Turismo por Costa Rica contradict or criticize the minister’s statements on this issue in some way.
“It makes no sense, and it’s obvious that the airlines’ response is to lower demand. They use smaller planes or have fewer flights because there isn’t enough demand, and that’s the reason. And the worst part is that William (Rodríguez) was the manager of one of the main airlines in this country, so he knows perfectly well how airlines work,” commented Bary Roberts of Turismo por Costa Rica.
For her part, Shirley Calvo, head of the Canatur, also takes a different position from the ICT.
“We differ from the ICT in that the main cause is the reduction in seats, but rather, that this is a consequence of the destination’s loss of competitiveness, especially due to cost factors,” she noted.
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For Roberts, the minister’s evasiveness in addressing the underlying issue “is a way of justifying himself to his boss (President Chaves), or following his boss’s instructions to try to hide the sun with a finger, but the truth is, it’s embarrassing.”
Minister Expands His Explanation
This week, Minister Rodríguez expanded his response. He said he had sent a series of newspaper articles to President Rodrigo Chaves, summarizing the reasons Americans are traveling less:
- With the change of leadership, now under President Donald Trump, a series of changes have occurred that could be causing uncertainty in the global and local economy. This is causing US consumers to postpone some spending. However, the Trump administration began on January 20, 2025, when tourism had already been declining for five months.
- Other articles, from a website called Simple Flying, also indicates that due to recent plane crashes, people may be afraid to use air travel, which also affects the results.
The executive director of Canatur said they are concerned about the upcoming low season, which could have even worse results than the current high season for the sector, which ends with Easter in April.
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