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Costa Rica’s Tourism Sector Faces Bleak Outlook for 2025

Costa Rica’s tourism industry is bracing for a challenging year ahead, with forecasts for 2025 signaling a significant downturn. Data from January and February already show fewer tourist arrivals compared to the same months last year, marking a continuation of a six-month decline in visitation.

Bary Roberts, spokesman for the business group Turismo por Costa Rica, estimates that if the downward trend persists, tourist arrivals could drop by 15% to 20% by the end of 2025. “The decline is multifactorial,” Roberts noted, pointing to rising violence and insecurity in the country as a key deterrent. International media coverage highlighting an uptick in drug-related violence has only amplified these concerns.

Price competitiveness is another hurdle. Shirley Calvo, executive director of the National Tourism Chamber (CANATUR), explained, “Other countries in Central America and the Caribbean are offering more affordable and flexible packages. Our current business structure leaves little room for entrepreneurs to lower rates, which impacts tourists’ perceptions of value.” The appreciation of the Costa Rican colón has further eroded purchasing power, as each U.S. dollar now converts to fewer colones, making Costa Rica a pricier destination compared to regional peers.

The currency shift also squeezes tourism businesses. While many earn revenue in dollars, they pay salaries, taxes, social security, and suppliers in colones. This exchange rate disparity forces companies to raise prices, further undermining competitiveness.

The government, however, attributes the slump to external factors. Officials point to the recent change in U.S. leadership under President Donald Trump, inaugurated on January 20, 2025, suggesting that economic uncertainty has led American tourists—the country’s largest market—to delay travel plans. They also referenced a Simple Flying article linking recent plane crashes to a broader fear of air travel.

Industry leaders dismiss these explanations. With tourism already declining for five months before Trump’s inauguration, they argue the government is sidestepping domestic issues like violence and pricing. “These are not acceptable excuses,” said Roberts. “We’re worried about company closures and job losses if this continues.”

As Costa Rica’s tourism sector grapples with these challenges, stakeholders are urging swift action to reverse the trend and protect an industry vital to the nation’s economy.

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