HomeArchiveBill would cut Costa Rica hotel tax, add $15 to airfare

Bill would cut Costa Rica hotel tax, add $15 to airfare

Frugal travelers might be happy to hear that the 3 percent hotel tax in Costa Rica could soon be a thing of the past.

The bad news is that the lost revenue to the government would be made up in the form of a $15 fee on all airfares to Costa Rica, according to a bill recently presented to the floor of the Legislative Assembly.

In a week, spending $15 a night at hostels, budget travelers pay about $3.15 in taxes.

The point of the legislation, says Maureen Ballestero, a legislator from the majority National Liberation Party (PLN) and president of the commission that drafted the bill, is to increase funding to the Costa Rican Tourism Board (ICT).

Money from the 3 percent tax is sent to the ICT for tourism promotion, marketing and planning.

However, with more and more visitors to Costa Rica staying in condos and vacation homes, and therefore not paying the hotel tax, legislators felt it was time to update the system, Ballestero said.

The legislator also said some hotels avoid charging their guests the tax by not properly registering them.

“There are more hotels, more visitors, but the income (from the 3 percent tax) has pretty much stayed the same,” she said.

The numbers, however, do not appear to support Ballestero´s claim, as hotel tax revenues seem to be tracking visitation.

In 2006, ICT received about $7.9 million from the hotel tax, an increase of about 19.7 over 2005´s hotel tax revenues of $6.6 million.

Visitation during that same period was flat, with about 1.8 million visitors coming to Costa Rica in 2006, up slightly from the 1.7 million measured in 2005.

In recent months, tourism growth has slowed over last year.

Meanwhile, Panama, which has been challenging Costa Rica´s throne as the premier Central American destination, tourist arrivals increased by 24 percent in the first six months.

Trending Now

Costa Rica Beats Haiti 2-0 as Bryan Ruiz Finishes Interim Run Unbeaten

Costa Rica beat Haiti 2-0 last night at Estadio Ricardo Saprissa, closing its Concacaf Nations League group stage with a second consecutive victory under...

Costa Rica Opens Probe Into Political Ties of Man Wanted by US DEA

Costa Rica's attorney general will investigate whether a naturalized Costa Rican detained for extradition to the United States had political ties or helped finance...

Costa Rica Ombudsman Condemns Justice Minister’s Prison Video

Costa Rica's ombudsman condemned a Justice Ministry video showing inmates on a prison floor. The minister says her opinion isn't binding.

Going to Iron Maiden at Estadio Nacional? What to Know Before Thursday

Gates open at 4 p.m. Thursday. Here's which entrance to use, what you can't bring in, and what tickets still cost.

Margaritaville at Sea Adds Limón as Its First Costa Rica Port

Margaritaville at Sea will make Limón its first Costa Rica port of call in 2028.

Costa Rica Landfill Plan in Mora Faces New Land-Use Challenge

A decades-long fight over a proposed waste project in Picagres has flared again after the Mora municipal administration issued a new land-use certificate for...

Costa Rica Sets Oct. 14 Opening for Maximum-Security Prison Modeled on El Salvador’s

The CACCO will hold up to 5,100 inmates tied to organized crime, opening months after its original deadline.

Costa Rica Falls Six Places in FIFA Ranking After Two Losses

Costa Rica’s national soccer team has taken another hit after a rough start to the Concacaf Nations League, dropping six places in FIFA’s live...

Costa Rica Suspends Investigation Into Who Ordered Roberto Samcam’s Murder

Costa Rica’s prosecutor’s office has suspended its investigation into who ordered the 2025 killing of retired Nicaraguan military officer Roberto Samcam, an outspoken critic...
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel