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

New Rival Enters UN Leadership Race as Costa Rica’s Grynspan Faces Deadlock

Costa Rica's Rebeca Grynspan faces a new challenge in her campaign to become the next United Nations secretary-general after a senior diplomat from the...

Costa Rica Used-Car Imports Fall 85% After Tax Loophole Closes

Costa Rica imported just 631 used vehicles in September, down 85% from a year earlier, as new customs valuation rules took hold. The average declared value doubled to $8,227 and tax per vehicle rose 71%.

Harry Kane Wins the Ballon d’Or, England’s First Winner in 25 Years

Harry Kane won the 2026 Ballon d'Or in London after a 73-goal season for Bayern Munich and England, becoming the first English winner since 2001.

Will Costa Rica’s New Megaprison Make Life Safer?

Leave it to the Frente Amplio (Broad Front) political party to spoil the fiesta. Our sparkling new 34 million dollar megaprison was all ready...

Comic Con Costa Rica 2026 to Showcase Local Fantasy and Science Fiction Authors

Fantasy, science fiction, and dystopian stories written by Costa Rican authors will take center stage at Comic Con Costa Rica 2026, bringing local literature...

Costa Rica’s First Cold Push of the Season Brings Stronger Winds and Rain

Costa Rica is beginning to feel the effects of the first cold push of the season, bringing stronger winds to Guanacaste and the Central...

Costa Rica Wildlife Survey Reveals 60 New Species Records in Urban Heredia

A wildlife survey in one of Costa Rica's busiest urban areas has added 60 new species records to a local inventory, showing that birds,...

Costa Rica Opens Bidding for $770 Million San José–San Ramón Highway Expansion

Costa Rica has opened international bidding for a $770 million expansion of the San José–San Ramón highway. The project includes additional lanes, new bridges, upgraded interchanges and proposed tolls, with construction expected to begin in 2027.

No Roads, No Cars, Just Tarpon at Costa Rica’s Silver King Lodge

How a remote Caribbean river became tarpon fishing's proving ground, and how Silver King Lodge is reviving it.
Loading…

Latest News from Costa Rica

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