No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

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 Uncovers Alleged Assassination Plot Against President Chaves

Officials in Costa Rica revealed today an alleged scheme to assassinate President Rodrigo Chaves, with the national election set for February 1 drawing near....

Costa Rica Turns to Bukele’s Prison Model Amid Rising Crime Wave

El Salvador's President Nayib Bukele joined Costa Rican President Rodrigo Chaves on Wednesday to lay the first stone for a new maximum-security prison in...

Guatemala Decrees State of Siege After Gangs Kill Eight Police Officers

Guatemalan President Bernardo Arévalo on Sunday decreed a state of siege across the country after gangs killed eight police officers in recent hours and...

Panama’s Iconic Thousand Polleras Parade in Los Santos

Panama sets the stage for its premier cultural event, the Desfile de las Mil Polleras, on Saturday. This annual parade draws thousands to celebrate...

Gauff and Sabalenka Call Out Grand Slams on Revenue Split

As the 2026 Australian Open begins on Sunday, top tennis players welcome the tournament's record prize pool but call for deeper changes across all...

Costa Rica Tribunal Denies Efforts to Bar Salvadoran President Bukele’s Visit

The Supreme Electoral Tribunal (TSE) turned down two legal challenges aimed at stopping Salvadoran President Nayib Bukele from entering Costa Rica. The decision came...
Avatar
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica