QCOSTARICA — After seven consecutive months of reducing negative numbers, the tourism sector recorded a 4% increase in the number of visitors in April compared to the same period a year ago
However, entrepreneurs in this sector of the economy are far from declaring victory.
Between January and April of this year alone, Costa Rica received 1,181,000 tourists, mostly from North America, while in the same period in 2024, there were 1,209,000; that is, approximately 28,000 fewer tourists.
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The appreciation of the colon against the dollar, the insecurity that threatens the country’s image, unfair competition from non-traditional accommodations, poor road infrastructure, and high taxes are all serious threats.
Added to this group of challenges are the high interest rates on loans because the Central Bank refuses to reduce the MPR and, more recently, the establishment of reciprocal tariffs imposed by the Donald Trump administration, which generate uncertainty and inflation in the United States and, consequently, fewer visitors to our country.
“The current situation is critical due to the loss of competitiveness. Measuring tourist spending by volume can be misleading, since the same amount of dollars buys 25% less than a few years ago. More than competition, what is worrying is Costa Rica’s loss of competitiveness due to factors such as the exchange rate, rising commodity prices, and a lack of road, airport, and port infrastructure,” said Daniel Campos, President of the Costa Rican Chamber of Hotels.
Business leaders are clear that the sector requires urgent action to weather the storm.
Some of the actions fall to the government and others to the legislators, such as bringing the dollar exchange rate to a more balanced level or approving new regulations to regulate non-traditional accommodations like Airbnb.
“Restore exchange rate competitiveness. Although the general exchange rate appears unlikely to correct, the government can explore complementary measures, such as allowing payments in dollars at public institutions or promoting agreements with the banking system to reduce the abusive exchange rate differential.
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Furthermore, the Central Bank should proceed to lower interest rates, now that inflation targets have been met, to ease the financial burden on tourism businesses, facilitate access to productive credit, and reactivate investment,” said Tadeo Morales, Tourism Spokesperson for Costa Rica.
Another demand is related to lowering the minimum contribution base for the Social Security Fund (CCSS), which would allow legal insurance for workers who only work a few hours or days, as is the case in tourism operations.
Likewise, the sector is also advocating for a new tourism law that would modernize the regulatory framework, facilitate investment in tourism infrastructure, improve safety at destinations, and strengthen the institutional framework of tourism in Costa Rica.
The tourism sector’s concern is also due to the fact that the low season has just begun, a period where Costa Rica will experience the largest slowdown by the end of the year since the pandemic, and possibly in the last two decades without considering the health emergency.
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Threats
The tourism sector currently faces several threats.
- Exchange Rate: The appreciation of the colón has made Costa Rica an unrealistically expensive destination, which reduces its competitiveness. A dollar more in line with its historical balance is needed.
- Insecurity: Costa Rica has a positive image worldwide, but news from mainstream media outlets is affecting the country, focusing on robberies and the war between drug gangs.
- Unfair Competition: The formal hotel sector advocates for regulating non-traditional accommodation platforms.
- Taxes and Interest Rates: The sector should have differentiated VAT and loans with better interest rates.
- Infrastructure: Competitiveness requires road and airport infrastructure that provides safety and a quality trip for visitors.
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