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

El Salvador’s Fireball Festival Lights Up Nejapa

If you are in El Salvador this weekend and want to see something you will not find anywhere else, head north from San Salvador...

Route 32 Closures Will Keep Coming and Here Is What Drivers Should Do

Costa Rica said today it will spend $100 million to take the roundabouts out of Route 32, the highway that connects San José to...

Costa Rica’s OIJ Invests in Israeli Technology to Unlock Seized Phones

Costa Rica’s Judicial Investigation Agency (OIJ) is investing heavily in technology capable of unlocking and getting information from cellphones seized during criminal investigations, as...

Argentina’s Navone Hands Djokovic His Earliest Grand Slam Exit in 20 Years

Novak Djokovic’s bid for a record 25th Grand Slam title ended almost as soon as it began Sunday night, with Argentina’s Mariano Navone pulling...

National Geographic Names Costa Rica a Forest Bathing Paradise

National Geographic has named Costa Rica one of five places in the world to experience forest bathing, the practice of walking slowly through a...

Climate Change Could Dull the Brilliant Blue of Costa Rica’s Morpho Butterflies

One of Costa Rica’s most recognizable butterflies could become a little less brilliant as temperatures rise. A new study found that unusually hot temperatures...

IKEA Maps Out Its Costa Rica Rollout in Three Locations

IKEA has identified the first three sites it plans to operate in Costa Rica, giving the clearest picture yet of how the Swedish home...

Google Wins Auction for Spirit Airlines’ Massive Data Archive, Raising Privacy Alarms

For all us fun that have flown Spirit to Costa Rica, it was announced that Spirit Airlines has agreed to sell a sprawling trove...

Costa Rica Delays Yellow Fever Vaccine Rules Until October

Costa Rica has delayed new yellow fever vaccination rules for travelers to eight countries, giving you another month to get vaccinated before the requirements...
Avatar
🌴 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