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HomeNewsCosta Rica’s Tourism in Crisis: Why U.S. Visitors Drop but Europe Flies...

Costa Rica’s Tourism in Crisis: Why U.S. Visitors Drop but Europe Flies In

Costa Rica’s tourism sector, a longtime bedrock of our national economy, continues to face an ongoing decline, with visitor arrivals dropping for seven consecutive months, according to industry data. A strong colón and persistent safety concerns remain key factors undermining the country’s standing as a top travel destination.

Central Bank of Costa Rica (BCCR) President Róger Madrigal has acknowledged that the exchange rate, with the dollar near ₡500, is likely contributing to the sustained tourism downturn. “It must have some effect, but we shouldn’t focus exclusively on the exchange rate, as a wrong diagnosis could lead to inappropriate measures,” Madrigal said, underscoring the issue’s complexity. He indicated that intervening in the exchange market could disrupt other economic sectors, despite ongoing appeals from the tourism industry for action.

The appreciated colón is placing significant pressure on tourism businesses, 85% of which are micro, small, and medium-sized enterprises. In Guanacaste, hoteliers have increased prices by up to 15% to offset losses, potentially deterring budget-conscious travelers. The sector’s repeated requests for exchange rate adjustments have yet to be addressed, with authorities prioritizing broader economic stability.

Persistent safety concerns are also driving tourists away. A National Chamber of Tourism (CANATUR) survey found that 62% of prospective U.S. tourists cited safety as a reason for choosing destinations like Belize or Mexico. Official data reports 880 homicides in 2024, 225 in 2025 to date, and over 6,300 tourist-related crimes, including thefts and assaults. A high-profile robbery near Tamarindo in early April 2025, widely circulated online, has further damaged Costa Rica’s reputation.

Critics contend that the government has not sufficiently tackled tourist safety. The Ministry of Public Security’s budget reportedly prioritizes urban areas over coastal regions like Limón and Puntarenas, leaving key tourism zones vulnerable. No comprehensive plan to address the ongoing rise in violence has been announced.

The industry is also grappling with a 10% reduction in U.S. airline seats to Costa Rica in Q1 2025 compared to 2024, limiting access for North American visitors, who represented 59% of arrivals last year. Meanwhile, Panama reported a 12% increase in U.S. tourists in the same period, benefiting from lower costs and perceived safety.

Tourism Minister William Rodríguez has urged businesses to adapt by adjusting pricing strategies, but with the low season underway, many fear closures. Coastal communities like Quepos and Nosara have reported a 20% drop in tourism-related employment since September 2024.

Despite these challenges, European airlines are increasing flights to Costa Rica for the 2025-2026 high season, signaling confidence in specific markets. KLM Royal Dutch Airlines will operate five weekly flights between San José and Amsterdam from this October 26 to April 26 of next year, up from four, using the Boeing 787-9 Dreamliner. Air France will increase to nine weekly flights to Paris-Charles de Gaulle during peak periods (From December 15 to January 11 and February 9 to March 15 next year), with two daily flights on Mondays and Saturdays using the Airbus A350.

This expansion, driven by strong demand from French and Dutch travelers, contrasts with the decline in U.S. arrivals. The euro’s relative stability against the colón, compared to the dollar’s weaker position, may make Costa Rica more affordable for Europeans, while the Costa Rica’s appeal as a sustainable, nature-based destination continues to attract this market.

As these divergent trends persist, the tourism industry here continues to press for urgent measures to restore Costa Rica’s broader competitive position.

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