HomeArchiveBill would cut Costa Rica hotel tax, add $15 to airfare

Bill would cut Costa Rica hotel tax, add $15 to airfare

Frugal travelers might be happy to hear that the 3 percent hotel tax in Costa Rica could soon be a thing of the past.

The bad news is that the lost revenue to the government would be made up in the form of a $15 fee on all airfares to Costa Rica, according to a bill recently presented to the floor of the Legislative Assembly.

In a week, spending $15 a night at hostels, budget travelers pay about $3.15 in taxes.

The point of the legislation, says Maureen Ballestero, a legislator from the majority National Liberation Party (PLN) and president of the commission that drafted the bill, is to increase funding to the Costa Rican Tourism Board (ICT).

Money from the 3 percent tax is sent to the ICT for tourism promotion, marketing and planning.

However, with more and more visitors to Costa Rica staying in condos and vacation homes, and therefore not paying the hotel tax, legislators felt it was time to update the system, Ballestero said.

The legislator also said some hotels avoid charging their guests the tax by not properly registering them.

“There are more hotels, more visitors, but the income (from the 3 percent tax) has pretty much stayed the same,” she said.

The numbers, however, do not appear to support Ballestero´s claim, as hotel tax revenues seem to be tracking visitation.

In 2006, ICT received about $7.9 million from the hotel tax, an increase of about 19.7 over 2005´s hotel tax revenues of $6.6 million.

Visitation during that same period was flat, with about 1.8 million visitors coming to Costa Rica in 2006, up slightly from the 1.7 million measured in 2005.

In recent months, tourism growth has slowed over last year.

Meanwhile, Panama, which has been challenging Costa Rica´s throne as the premier Central American destination, tourist arrivals increased by 24 percent in the first six months.

Trending Now

Study Finds Costa Rica’s Pesticide Use More Than 10 Times Global Average

Costa Rica uses pesticides on its farmland at a rate more than ten times the global average, according to a scientific study that raises...

Costa Rica Through A Canadian’s Eyes: More Than Just Pura Vida

It has been nine years since I made the move from Canada to Costa Rica, and I often find myself asking a simple question:...

Thousands March as Costa Rica Lawmakers Cut 8 Billion Colones From Public Universities

Thousands of students, university staff, union members and social activists marched through San José yesterday against cuts to public university funding. Late that night,...

Costa Rica’s Cahuita Tourism Businesses Struggle After Major Drug Raids

Tourism businesses in Cahuita, one of our best-known Caribbean destinations, are struggling with fewer visitors, declining sales and concerns about the town's reputation following...

Costa Rica’s President Says US Government Already Operates on Costa Rican Soil

President Laura Fernández said U.S. government agencies already carry out operations on Costa Rican territory, describing them as the continuation of existing security arrangements...

Costa Rica Faces an $882 Million Revenue Hole as Courts, Police and Schools Take Cuts

Costa Rica expects to collect about â‚¡400,000 million ($882 million) less than it budgeted for 2026, and the Finance Ministry is asking lawmakers to...

Francisco Cerundolo Reaches Brussels Quarterfinals With Win Over Martin Damm

Argentina’s Francisco Cerundolo advanced to the European Open quarterfinals yesterday, beating American Martin Damm 6-4, 7-6 (4) to set up a meeting with French...

Costa Rica Conservation Groups Back U.S. Bill to Ban Sloth Imports After 58 Deaths

Two sloth conservation groups working in Costa Rica helped shape the bipartisan SLOTHS Act, which would ban most live sloth imports into the United States after dozens of animals died at a Florida attraction.

Saturated Soils Put All of Costa Rica on Rain Alert Through Wednesday

All of Costa Rica is on rain alert. Soils are near saturation, so even short storms can flood streets through Wednesday.
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel