The Central Bank of Costa Rica reported the buy rate at 499.46 colones per dollar on November 12, with similar levels persisting into the following days. This represents a drop from earlier in the year, when rates hovered above 505 colones. While a stronger colón benefits importers and locals with foreign debt, it poses challenges for areas like tourism that earn in dollars but pay expenses in colones.
Tourism leaders have voiced worries that the lower rate makes Costa Rica less affordable for foreign travelers. Visitors from the United States, who make up a significant portion of arrivals, now receive fewer colones for their dollars. This increases the effective cost of hotels, meals, and activities priced in local currency. For example, a room that costs 50,000 colones would have equated to about $98 at a ¢510 rate earlier this year but now runs closer to $100 at 499.
The National Chamber of Tourism (Canatur) has called on the Central Bank to address the appreciation, noting it reduces the spending power of tourists and erodes the sector’s competitiveness. In a recent statement, Canatur highlighted how the change affects the high season, which runs from December to April and draws crowds for beaches, national parks, and eco-adventures. They pointed out that budget-conscious travelers might opt for cheaper destinations like Mexico or the Dominican Republic instead.
Data from the Costa Rican Tourism Institute shows arrivals grew by 7.7% in 2024, reaching over 2.6 million visitors. However, projections for 2025 suggest slower growth if the colón remains strong. A report from the State of the Nation Program warned that the appreciation erodes advantages for tourism, with some businesses already reporting up to 25% revenue losses when converting dollars to colones for taxes and wages.
Hotel owners in Guanacaste and other coastal areas have responded by raising prices by as much as 15% to offset the gap. One hotelier in the region noted that expansion plans and hiring had to pause due to the 21% rate decline since 2022, when it peaked near 640 colones per dollar. This has led to fewer job opportunities in an industry that employs over 200,000 people directly.
Economists explain that the colón’s rise stems from increased dollar inflows from exports, remittances, and investments, combined with lower inflation. Yet this dynamic creates a double-edged sword for tourism: more visitors can ironically contribute to further appreciation by bringing in foreign currency, which pressures the rate downward.
Travel agents report mixed reactions from potential visitors. Europeans, whose currencies have held steady, continue to book trips, but U.S. tourists show hesitation. A survey by tourism analytics firms indicated a 15% drop in U.S. arrivals earlier this year, attributed partly to the exchange rate making vacations feel pricier.
Despite these hurdles, some see opportunities. Local tour operators suggest promoting value-added experiences, such as sustainable travel packages, to attract higher-spending guests less sensitive to costs. Government officials have discussed measures like targeted marketing campaigns to highlight Costa Rica’s biodiversity and safety, aiming to sustain momentum.
As the high season approaches, stakeholders monitor the rate closely. If it stabilizes, the impact might ease, but prolonged strength at or around ¢499 could prompt broader calls for policy adjustments to protect tourism’s role in the economy.
