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 Hands Macho Coca and Compadre to US Agents in New York Cases

Costa Rica surrendered two men wanted on United States drug trafficking charges to American agents on this morning, closing extradition proceedings that had run...

What the Caribbean Green Alert Means for Your Weekend Plans

If you are going to the Caribbean coast or the Northern Zone over the next few days, plan for rain and give yourself more...

Costa Rica Estate Becomes Refuge for Rare Agami Heron

Around 1,000 agami herons have made a private estate in Guatuso their home, creating an unusual concentration of one of the most elusive heron...

Costa Rica’s Route 32 Reopens After a Morning Landslide Shuts the Highway

Route 32 closed for about four hours Saturday morning after material fell on the San José-Limón highway. Here are the alternates and why the road can shut again.

Costa Rica Wildlife Study Records 79 Species at Reserva Conchal

A year-long wildlife study at Reserva Conchal in Guanacaste documented 79 species of mammals, birds and reptiles, nearly double the 40 recorded during the...

Costa Rica’s Wild Capuchin Monkeys Are Using AI Touchscreens

Wild white-faced capuchin monkeys in Costa Rica are learning to use a touchscreen in the middle of the forest, giving researchers a new way...

What You Actually Owe at Costa Rica’s Land Borders

Costa Rica charges one land exit fee — $8 per person. Here's how to pay it online, what a legitimate receipt looks like, and what to do if asked for more.

Nicaragua Bishop Abelardo Mata Says He Is Well After Detention

Catholic Bishop Abelardo Mata, a critic of Nicaraguan President Daniel Ortega, said he is in good condition in an interview broadcast Wednesday by the...

Costa Rica Raises Yellow Alert as Tropical Wave Arrives

If you are driving on the Caribbean side or through the Northern Zone today, check that your route is open before you leave the...
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