No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveBill Cuts Hotel Tax, Adds $15 to Airfare

Bill Cuts Hotel Tax, Adds $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 have climbed while annual tourist numbers have stayed relatively the same.

In 2006, ICT received about $7.9 million from the hotel tax, an increase of about 19.7 percent 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 further.

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 of this year.

“In light of the competition to attract the tourism market in the different destinations, the need to promote the country is greater every day,” said Mario Zamora, president of Costa Rica’s Airlines Association (ALA) and general manager of the Costa Rican office of TACA, a Central Americabased airline.

Zamora said the association’s position is to support ICT “in light of its need to have sufficient capital to promote the country.”

As an airline, TACA is concerned about the creation of new taxes on travelers, which can make a destination more expensive, he added.

“This is something, however, that must be evaluated by ICT if our destination is going to remain face to face in competition with other destinations,” Zamora said.

–Leland Baxter-Neal

 

Trending Now

Costa Rica Debate Grows Over Moving Annexation Holiday

Nicoya authorities are pushing back against a proposal in Costa Rica’s Legislative Assembly that would move the July 25 holiday commemorating the Annexation of...

US Has Deported 95 Migrants to Costa Rica; Doctors Warn of Disease Risk

Costa Rica has now received four flights of migrants deported by the United States under the bilateral agreement signed in March, bringing the total...

Costa Rica Opposition Defends Mining Ban as Crucitas Crisis Deepens

Four opposition factions in Costa Rica's Asamblea Legislativa have closed ranks against the executive branch's bid to reopen metallic open-pit mining in Crucitas, ratifying...

Costa Rica Bus and Taxi Fares Rise After Fuel Price Spike

Costa Rica approved higher bus and taxi fares this week after a rise in international fuel prices pushed up operating costs for public transport...

Costa Rica Electricity Market Reform Faces Collapse After PLN Reversal

The National Liberation Party has announced it will vote against Costa Rica’s proposed electricity market harmonization bill, a decision that effectively blocks one of...

Costa Rica Wildlife Crossings Bill Faces Risk of Being Shelved

A bill that would require wildlife crossings to be included in Costa Rica road projects is at risk of being shelved, prompting warnings from...

El Salvador Added to Wanderlust 2026 Green Travel List

British travel magazine Wanderlust placed El Salvador on its Green Travel List for the first time in the 2026 edition. The publication singled out...

Costa Rica Tourism Brand Cancels Uber Alliance After Backlash

Costa Rica’s nation brand, esencial Costa Rica, and export promoter Procomer reversed a tourism marketing alliance with Uber just one day after announcing it,...

Costa Rica Braces for Extended El Niño With Water Rationing and Inflation on the Horizon

Costa Rica is bracing for an extended El Niño event that meteorologists now expect to grip the country from June through the second half...
Avatar
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador

Live prediction market odds via Kalshi. Updates every 60 seconds.
Kalshi is available to US residents 18+. The Tico Times may earn a commission from new signups.

Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel