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HomeNewsHow Exchange Rate Changes Affect Costa Rica’s Tourism

How Exchange Rate Changes Affect Costa Rica’s Tourism

As we all are aware Costa Rica’s rainforests and beaches draw countless visitors each year, but the strengthening colón now raises costs for dollar-paying tourists. Recently, the dollar exchange rate stood at ₡499.80, down from ₡535.02 in June 2024, giving travelers to our country fewer colones per dollar. This increases prices for hotels, guided tours, and meals, straining vacation budgets.

Analysts forecast fluctuations through 2025, with rates likely holding steady or rising to ₡540, driven by fewer tourists, export challenges, and US trade policies, requiring travelers to plan carefully.

Since mid-2022, when the dollar reached ₡680, the colón has gained value, hitting ₡499 by April 2025, a 25% drop in dollar purchasing power. A ₡25,000 surf lesson at local schools, which cost $36.76 then, now gets $50.02. A slight rate increase from ₡500 to ₡511 between March and April offered minimal relief, but the colón’s strength, fueled by earlier tourism and investment inflows, keeps expenses high.

A 15% decline in visitors during the 2024-2025 peak season, alongside US tariffs introduced in March 2025, reduced dollar availability, pushing the rate higher. Last November, holiday crowds and local colón demand lowered it to ₡505.41, but travelers face ongoing uncertainty.

Analysts provide varied predictions affecting trip planning. Some expect a stable ₡510 to ₡520 range through 2025, keeping costs consistent, though September and October could see higher rates as businesses buy dollars for holiday inventories. Others anticipate ₡515 to ₡540, or up to ₡545, easing expenses for dollar-holders.

An expert attributes recent changes to global pressures, including US tariffs adding a 10% levy on Costa Rican exports, but predicts stabilization at ₡520 to ₡530 by year-end, offering travelers some degree of clarity at least.

The stronger colón impacts tourists directly. A plate of gallo pinto at local sodas, typically ₡1,999 to ₡3,499 ($4-$7 at ₡499.80), once cost $2.94-$5.15 at ₡680, now hitting up to $7 for budget-conscious visitors. Hotels and operators using dollars often maintain prices, but local businesses charging in colones demand more when converted.

With a 15% drop in tourist numbers, the industry earns less, reducing discounts and special offers, leaving fewer deals for travelers. Imported souvenirs or foreign dishes provide no savings, as their prices align with dollars, not local import advantages.

The central bank focuses on low inflation, down sharply since 2023, using high interest rates to stabilize the economy, which strengthens the colón and keeps travel costs elevated for foreigners. US trade policies and the tourism decline create risks, potentially cutting available tours or services if operators scale back.

Travelers can save by booking in quieter yet wetter months like September, when demand dips, or choosing family-run lodges and restaurants less tied to dollar pricing. With the exchange rate reshaping Costa Rica’s tourism industry, visitors need strategic budgeting to enjoy visiting our country without going broke.

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