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

Costa Rica Data Leak Probe Widens as Prodhab Opens Its Own Case

Costa Rica's Agency for the Protection of Inhabitants' Data (Prodhab) has opened its own investigation into an alleged mass leak of personal data on...

Costa Rica’s Two-Century Fight to Keep Its Orchids

For nearly two centuries, Costa Rica's forests have drawn collectors chasing the same prize. It has one of the richest orchid floras on the...

Building in Costa Rica? Understanding Your Construction Contract Options

The final word in legal matters is in the hands of the Supreme Court. In Costa Rica the Supreme Court is composed of four...

Costa Rica Hotel Is the Only New Three-Key Michelin Stay in the Americas

A luxury resort on Guanacaste's Papagayo Peninsula has received the Michelin Guide's highest hotel distinction, making it the only property in the Americas to...

Costa Rica Fires Foreign Minister After Trump Meeting Dispute

President Laura Fernández fired Foreign Minister Manuel Tovar today after saying he failed to tell her about a high-level security meeting with U.S. President...

Costa Rica Velodrome Shows Damage Less Than Two Weeks After Upgrade

Less than two weeks after reopening following more than â‚¡105 million (about $219,000) in repairs, the velodrome at Parque de La Paz in southern...

Costa Rica Reaffirms Cuba Split After Havana Denies Being Notified

Costa Rica's foreign minister spent the weekend defending a diplomatic split with Cuba that Havana says it was never formally told about, and by...

US Diesel Export Ban Talk Puts Costa Rica Fuel Prices on Edge

Trump backs a ban on US diesel exports as Costa Rica, which buys much of its diesel from the United States, faces a proposed increase of up to 100 colones per liter in October.

Costa Rican TikTok Star Julián Valverde Reported in ICE Custody

Costa Rican content creator Julián Valverde, known online as Julián Valjota, is in the custody of US Immigration and Customs Enforcement. A source close...
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

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