The National Chamber of Tourism (CANATUR) has issued an urgent appeal for government intervention to address destabilizing exchange rate fluctuations that threaten the viability of tourism businesses across Costa Rica.
Citing the rapid 20% appreciation of the Costa Rican colón against the US dollar over recent weeks, CANATUR president Rubén Acón warned that “the current exchange rate differential is adversely affecting the capacity of tourism companies to fulfill their financial and operational commitments.”
The crux of the issue, according to Acón, is that while tourism companies earn income in dollars, they must pay business expenses and inputs in colones. With the value of the dollar plunging under ¢527 last week, these companies are seeing revenues wiped out.
“This situation is jeopardizing the sustainability of numerous businesses and jobs within the tourism sector,” said Acón.
CANATUR is imploring the nation’s Central Bank to immediately intervene in currency markets to arrest the decline of the dollar versus the colón. However, Acón emphasized that broader policy changes from President Chaves’ administration are urgently needed to provide lasting stability.
Costa Rica’s tourism industry plays an outsized role in the national economy, serving as the primary source of income for thousands who are related to some extent to travelers who visit the country. Without swift action to address exchange rate instability, Acón warned that countless livelihoods are at risk if businesses are forced to downsize or shutter.
Despite repeated warnings, Acón lamented that pleas from tourism industry leaders have so far resulted in “a lack of prompt and effective response from both the Government and Central Bank.” This inaction only exacerbates conditions for vulnerable businesses on the brink.
With financial circumstances rapidly deteriorating, Acón concluded it is imperative for authorities to implement immediate measures — “decisive government intervention is vital to avert further economic distress for this essential sector.”
