Costa Rica’s flagship tourism industry, long a cornerstone of our nation’s economy, is dealing with a noticeable downturn in 2025 as rising crime, health concerns, infrastructure issues, and a strong local currency converge to challenge one of the country’s most vital economic sectors.
According to new data released by the Costa Rican Tourism Institute (ICT), international arrivals dropped 4.8% in June compared to the same month in 2024, with just 232,571 visitors recorded. This marks the eighth monthly decline in the past year, as travel from key markets including the United States, Canada, and Europe continues to slow.
In June alone, arrivals from the U.S. fell to 161,583, a 5.4% decrease year-over-year. Canada sent just 8,996 visitors, while European numbers dropped 10.7%, totaling 20,594. Mexico contributed 6,888 travelers. The only notable rebound came in April during Easter week, when travel briefly surged.
Industry leaders point to the sharp appreciation of the Costa Rican colón as a major contributor to the decline. The stronger currency has made vacations in Costa Rica up to 20% more expensive for North American families compared to two years ago. The added burden of a new value-added tax (VAT) on tourism services has further eroded affordability.
“The strong exchange rate is killing our competitiveness,” warned the National Chamber of Tourism (CANATUR), adding that small businesses are struggling to cover maintenance costs and invest in improvements.
Public safety has become another pressing issue. The Judicial Investigation Agency (OIJ) projects that Costa Rica could see up to 900 homicides this year—an alarming number in a country known for its relative peace. In 2024 alone, more than 6,300 crimes targeting tourists were reported, particularly in popular beach towns such as Jacó, Quepos, Tamarindo, and Cahuita.
These figures have triggered heightened travel advisories from the U.S. and Canadian governments, citing increased risks of armed robbery and assault. According to ICT surveys, up to 15% of potential visitors now cite safety concerns as a key reason for avoiding Costa Rica.
Compounding matters, health-related scares have also played a role. Outbreaks of mosquito-borne illnesses—including dengue, Zika, chikungunya, and malaria—alongside warnings about shellfish toxins have cast a shadow over coastal tourism. Infrastructure concerns persist as well. Travelers face challenges with road quality, overburdened airports, and fewer available flights. U.S.-based airlines have reduced seat capacity to Costa Rica by roughly 10% this year, further limiting growth.
Tourism Minister William Rodríguez downplayed the downturn, calling it a “challenge, not a crisis.” He expressed optimism that, barring any major disruptions, air arrivals could still see a modest uptick by year’s end—possibly reaching a 1.7% to 4% growth target. To counter the decline, the government has launched new digital travel guides, promoted domestic tourism, and boosted spending on sustainable tourism and security. The ICT also emphasized that tourism still represents over 8% of the country’s GDP and supports more than 200,000 jobs.
As Costa Rica struggles to regain momentum, neighboring countries like Panama and El Salvador are gaining market share with more affordable options and fewer safety concerns. Industry experts warn that without serious investment in infrastructure and stronger crime prevention, Costa Rica risks losing its edge in an increasingly competitive regional tourism market.
Despite a brief recovery in April, most signs point to continued turbulence for Costa Rica’s tourism sector. While our government remains publicly upbeat, stakeholders in the private sector say urgent reforms are needed—especially on affordability and safety—to restore confidence among travelers. Unt
