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HomeNewsCosta Rica’s Tourism Sector Faces Challenges Amid Stronger Colón

Costa Rica’s Tourism Sector Faces Challenges Amid Stronger Colón

The National Chamber of Tourism (CANATUR) has expressed growing concerns about the challenges facing Costa Rica’s tourism sector, with the strengthening of the colón emerging as a significant factor. Despite positive tourism numbers in 2024, CANATUR’s executive director, Shirley Calvo, describes the situation as increasingly complex. One of the primary concerns is the exchange rate, with the colón appreciating to around ₡500 per US dollar. While this benefits some sectors, it reduces the purchasing power of visitors’ foreign currency, making travel-related expenses more expensive.

Even with Costa Rica’s strong international reputation, well-developed tourism infrastructure, and extensive air connectivity, rising costs are beginning to affect the industry. The recently implemented Value Added Tax (VAT) on tourism services has further increased costs for visitors, adding another layer of financial pressure on the sector.

A decline in the European market highlights these concerns. In 2024, tourist arrivals from Europe dropped by 0.8%, with the decrease becoming more pronounced in the final months of the year. While overall visitor numbers increased by 7.7% to reach 2.6 million, much of this growth came early in the year. However, from September to December, the sector saw a noticeable slowdown, raising concerns about future performance.

CANATUR warns that the appreciation of the colón is not only affecting tourists but also reducing revenue for businesses in the tourism sector. Many hotels, tour operators, and service providers operate in foreign currency, which has lost value against the colón, making it harder for them to maintain earnings.

Tourism Minister William Rodríguez has stated that there is no clear evidence that the exchange rate is directly influencing tourists’ decisions to visit Costa Rica. However, Shirley Calvo emphasized the need for greater government support, arguing that proactive measures are essential to maintaining Costa Rica’s competitiveness in the global tourism market.

She added that CANATUR will once again seek discussions with the Central Bank to highlight the economic impact of the current exchange rate and monetary policy on the tourism industry. As the tourism sector navigates these financial challenges, businesses and stakeholders will be watching closely to see how authorities respond in the coming months.

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