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

El Salvador Breaks Into Latin America’s Top 10 Startup Ecosystems

El Salvador has entered the top 10 startup ecosystems in Latin America for the first time. The country ranks 10th regionally and 80th globally...

Argentine Sierra Becomes the Surprise Story of the French Open Women’s Draw

Argentina's Solana Sierra has become one of the most improbable stories of the 2026 French Open, reaching the third round at Roland-Garros as a...

Costa Rica Suspends Airport Customs Officer in Alleged Tourist Scam

A customs official at Costa Rica's Daniel Oduber International Airport in Liberia, Guanacaste, has been suspended for four months while prosecutors investigate an alleged...

Panama Scraps Tax on Casino and Betting Winnings to Attract Tourists

Panamanian authorities have announced the scrapping of a 5.5% tax on winnings from table games and betting. The measure aims to attract foreign players...

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 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...

Costa Rica Public Health System Faces Growing Surgery Waitlist Crisis

Costa Rica’s public health system is facing another increase in surgical delays, with 204,622 insured patients waiting for an operation through the Caja Costarricense...

Costa Rica Airport Partners With U.S. Embassy on Travel Safety

Guanacaste Airport in Liberia has become the first airport in Costa Rica to partner with the U.S. Embassy to promote the Smart Traveler Enrollment...

Former Costa Rican President Miguel Ángel Rodríguez Acquitted After 25 Years

A Costa Rican court on Friday acquitted former President Miguel Ángel Rodríguez Echeverría of embezzlement in the long-running "Reaseguros" case, closing one of the...
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