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Costa Rica Faces Tourism Slump Despite High Season

Costa Rica has recorded seven consecutive months of declining international tourist arrivals, a troubling trend that began in September 2024 and persisted through March 2025, according to the Costa Rican Tourism Institute (ICT). The downturn, coinciding with the country’s traditional high season, has raised alarms within the tourism sector, a cornerstone of the national economy.

In February 2025, only 270,810 tourists arrived by air, a 7% drop from 291,090 in February 2024, marking the sixth consecutive month of decline, ICT data shows. Preliminary reports indicate a further 3% decrease in March 2025, extending the streak to seven months. While exact figures for the full period are pending, industry estimates project a 15–20% reduction in arrivals by year-end 2025, compared to the 2.6 million visitors welcomed in 2024.

The decline follows a strong early 2024, with a 14.5% increase in arrivals from January to June compared to 2023. However, the late-year slowdown has eroded gains, particularly from key markets. North American arrivals fell 7.2% in February 2025, with the United States (150,320 visitors, down 7.3%), Canada (37,975, down 5.8%), and Mexico (6,351, down 12.4%) showing significant drops. European visitors declined even more sharply, by 11.4%.

Multiple Factors Driving the Decline

The National Chamber of Tourism (CANATUR) and industry group Turismo por Costa Rica attribute the downturn to several factors. The appreciation of the Costa Rican colón, now at ₡500 per U.S. dollar (down from ₡700 in mid-2022), has made Costa Rica pricier than regional competitors like Colombia or the Dominican Republic. “We’re losing our competitive edge,” said Bary Roberts, spokesperson for Turismo por Costa Rica. Tourism services, priced in dollars but paid in colones, have seen costs rise, compounded by a new Value Added Tax (VAT) on the sector.

Growing perceptions of insecurity also deter visitors. A U.S. Embassy Level 2 Travel Advisory issued in December 2024 cited rising crime, with incidents reported near Juan Santamaría International Airport in February 2025. Over 6,300 tourists have reported crimes like theft and assaults since 2020, and international media coverage of drug-related violence has amplified concerns. “Safety concerns are scaring people away,” Roberts noted.

Reduced air connectivity further exacerbates the issue. Seat availability at Juan Santamaría International Airport dropped 8%, while Daniel Oduber International Airport in Liberia saw a 19% decline. Health alerts, including a histoplasmosis spike linked to caving and a ban on shellfish harvesting due to paralytic toxins, have also raised traveler caution.

Economic Concerns and Government Response

Tourism, contributing 8.2% to Costa Rica’s GDP and 8.8% of employment, is critical to rural areas like Guanacaste, Limón, and Monteverde, where job alternatives are scarce. “The high season ended with negative numbers,” said Shirley Calvo, CANATUR’s executive director. “As we enter the low season, the consequences will hit harder.” CANATUR has urged the Central Bank to address the colón’s appreciation, warning of potential business closures.

Tourism Minister William Rodríguez has stated there’s no clear evidence directly linking the exchange rate to declining arrivals, emphasizing ongoing promotional efforts like ICT’s “Only the Essentials” campaign targeting North American markets. However, industry leaders argue that more robust measures are needed to restore competitiveness.

As Costa Rica navigates these challenges, stakeholders are calling for coordinated action to safeguard the sector’s sustainability and protect the livelihoods of thousands of families dependent on tourism.

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