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COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

U.S. Revokes Visa of Ex-Panama President Torrijos After Military Deal Criticism

The U.S. government under Donald Trump canceled the visa of former Panamanian President Martín Torrijos after he criticized a new agreement allowing U.S. military deployment in Panama, the ex-president announced on Monday. The agreement, signed in April between Panama and Washington, permits the United States to use Panamanian air and naval bases for “training” purposes for a renewable period of three years.

Torrijos claims his visa was revoked due to his criticism of the agreement and of joint declarations made in April by U.S. Secretary of Defense Pete Hegseth alongside Panamanian officials. “If they revoke my visa, I accept it with pride,” said Torrijos (president from 2004–2009), son of General Omar Torrijos, who signed the 1977 treaties with U.S. President Jimmy Carter that eventually handed over the Panama Canal to Panama in 1999.

The presence of U.S. troops remains a sensitive issue in Panama, as it brings back memories of the era when the U.S. maintained military bases in the canal zone before its handover. Former presidential candidate Ricardo Lombana, a 2024 election rival of current President José Raúl Mulino, also had his U.S. visa revoked, he announced Monday.

“This is a warning to all Panamanians that criticism of Panama’s relationship with the United States will not be tolerated,” said Torrijos, speaking in front of a large photo of his father and Carter signing the canal handover agreements in 1977. “We are witnessing a historic setback,” added the 61-year-old former leader.

Several Panamanian politicians and activists signed a declaration with Torrijos and Lombana claiming the agreement violates Panama’s national sovereignty and its constitution. The agreement was signed amid pressure from Trump, who has threatened to reclaim control of the Panama Canal, alleging it is now managed by China.

In April, Washington also canceled the visa of former Costa Rican President and Nobel Peace Prize laureate Óscar Arias, who criticized Trump’s migrant deportations and global trade policies.

Costa Rica Tourism Slips Again in May 2025: U.S. and European Visitors Drop

Tourist arrivals to Costa Rica took another hit in May 2025, raising red flags for the country’s vital tourism industry. Data from the Costa Rican Tourism Institute (ICT) shows a 4.7% drop in air arrivals compared to May 2024, with total arrivals across all entry routes down by 5%. This marks a continuation of a troubling trend that’s been dragging on since September 2024, with eight of the last twelve months showing fewer visitors than the previous year.

In May, only 189,881 tourists arrived by air, down from 199,058 the year before. The first five months of 2025 saw 33,000 fewer air arrivals than in 2024, a 2.5% decline year-on-year. While April bucked the trend with a 4.6% increase, thanks to Easter Week’s seasonal boost, the numbers quickly slid back into the red.

The U.S. and Canada, which drive much of Costa Rica’s tourism, saw significant drops. U.S. visitors fell by 6.4%, while Canadian arrivals dipped by 5.3%. European markets weren’t spared either: Germany saw a 5.1% decline, France a steep 20.6%, the UK 4.3%, and Spain a slight 0.3%. These numbers reflect a broader slowdown, with first-quarter 2025 arrivals hitting just 63% of 2019’s pre-pandemic levels.

Money is feeling the pinch too. The Central Bank of Costa Rica reports tourism revenue for the first quarter of 2025 at $1.773 billion, down $60 million (3.4%) from last year. This drop stings for an industry that accounts for 8.2% of the country’s GDP and supports nearly 9% of jobs.

So, what’s behind the slump? The government points to global factors, like airline capacity cuts. U.S. airlines reduced seats to Costa Rica by 10% in early 2025, limiting access for North American travelers, who made up 59% of visitors last year. But the business sector tells a different story. They argue the strong Costa Rican colón, now at about ₡500 per U.S. dollar (up from ₡700 in 2022), is making Costa Rica pricier than competitors like Panama or Colombia. A family vacation that cost $6,000 a few years ago now runs closer to $7,800, pushing middle-class travelers elsewhere.

Safety concerns are also casting a shadow. Costa Rica recorded 880 homicides in 2024 and 225 in early 2025, with over 6,300 tourist-related crimes like theft and assaults since 2020. A high-profile robbery near Tamarindo in April 2025, widely shared online, didn’t help. A U.S. Embassy travel advisory from December 2024, citing crime near San José’s airport, has fueled hesitation, with a 2025 ICT survey showing 15% of potential visitors worried about safety. Operators in Limón reported a 10% booking drop tied to crime reports.

Tourism Minister William Rodríguez downplays these issues, calling safety and currency concerns exaggerated. At a June 16, 2025, press conference, he highlighted a 7% increase in air arrivals from January to May (1.2 million total) and rising online searches for Costa Rica trips. He’s banking on a $10 million global marketing campaign and beefed-up police patrols to keep the country’s appeal strong. But not everyone’s buying it. Industry leaders like Shirley Calvo from the National Chamber of Tourism argue the exchange rate is killing competitiveness, and focusing on high-end tourists risks alienating the middle-class market that built the industry.

There’s some hope on the horizon. European airlines like KLM are adding flights for the 2025–2026 high season, and South American arrivals are ticking up, offsetting some North American losses. The ICT projects modest 2–4% growth for the rest of 2025, but challenges like rising costs and safety perceptions remain. In addition, industry voices continue to call for exchange rate interventions and broader safety measures to stop the slide before it’s too late.

Costa Rica Bids Farewell to Former Nicaraguan President Violeta Barrios de Chamorro

Former Nicaraguan President Violeta Barrios de Chamorro, who died Saturday at the age of 95, was honored Monday in a funeral mass held in Costa Rica. Her family vowed to return her remains to Nicaragua once it becomes a “republic” again. The urn containing the remains of the woman who brought peace to Nicaragua—after defeating former Sandinista guerrilla Daniel Ortega at the polls in 1990—was draped with a Nicaraguan flag during the ceremony at the Sacred Heart of Jesus Church in San José.

Two of her children, Cristiana and Carlos Fernando Chamorro, and several of her grandchildren were present. Former Costa Rican President and Nobel Peace Prize laureate Oscar Arias and Nicaraguan singer-songwriter Luis Enrique Mejía Godoy were also in attendance, among other public figures.

“She opened her heart wide to the hope of a free homeland, in peace and reconciliation, to become the president of all Nicaraguans,” said Cristiana, who thanked Costa Rica for giving her mother “a dignified and safe burial.”

“Thank you, Mom […] for your immense example of love and generosity. I promise that when Nicaragua becomes a republic again, you will return to rest in peace in your homeland,” said Carlos Fernando at the mass, which was also attended by Nicaraguans living in exile in Costa Rica.

Dozens of former presidents from Latin America and Spain offered condolences and praised her contributions to peace during a critical time. The first woman ever elected president in the Americas, Barrios de Chamorro governed Nicaragua from 1990 to 1997. She had been transferred from Managua to San José in October 2023 to be close to her children, who had been exiled by the current Ortega government.

A housewife in 1978, she was thrust into politics after the assassination of her husband, journalist Pedro Joaquín Chamorro, by the Somoza dictatorship. Known affectionately as “Doña Violeta,” the former president passed away after a long illness caused by Alzheimer’s complications and a stroke suffered in December 2018.

Ortega, a 79-year-old former guerrilla who was president from 1985 to 1990 and has held power again since 2007, is widely criticized by opposition figures, foreign governments, and international organizations for dismantling the freedoms and democratic institutions Barrios de Chamorro once helped restore.

On Saturday, the Ortega-Murillo government acknowledged her contributions to peace but did not declare a National Day of Mourning.

Costa Rica’s Investment Appeal Fades Amid Social and Environmental Challenges

Costa Rica’s reputation as a prime destination for foreign investment is under threat, according to a new study from the University of Costa Rica (UCR). While the country still boasts a stable economy and tax-free zones, worsening social and environmental conditions are raising red flags for investors.

The UCR study highlights declining education, healthcare, public safety, and rising poverty as key risks to Costa Rica’s competitiveness. These factors are critical for foreign investors, who weigh social and environmental indicators alongside economic stability when choosing where to place their money. If these issues persist, the study warns, Costa Rica could see a drop in investor interest within five years.

Jhon Fonseca, a UCR researcher, pointed out that many companies currently in Costa Rica based their decisions on stronger public policies and social conditions from years past. New investors, however, will judge the country on its current state, making today’s challenges a pressing concern. Fonseca described a “productive ecosystem” of economic, social, and environmental factors that attract investment and create local jobs. Each region’s unique “productive DNA” drives its ability to compete, but Costa Rica’s ecosystem is showing cracks.

The private sector relies on skilled workers and healthy social and environmental conditions to grow. Yet, recent setbacks in education and workforce training have raised concerns. Andrea Centeno from CINDE, Costa Rica’s investment promotion agency, noted that companies are pushing for better alignment between the country’s workforce and the demands of sophisticated value chains. “We’re not losing ground yet, but we need to move faster to meet these expectations,” she said.

The stakes are high as Costa Rica competes with other nations offering similar economic incentives. Without action to address poverty, education, healthcare, and environmental decline, the country risks losing its edge. The UCR study serves as a wake-up call, urging policymakers to act swiftly to preserve Costa Rica’s position as a top destination for foreign direct investment.

Costa Rica Beats Suriname 4-3 in Gold Cup Thriller

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Costa Rica’s national soccer team edged out Suriname 4-3 in a thrilling match on Sunday, part of Group A in the Gold Cup, held at Snapdragon Stadium in San Diego, California. Under the guidance of Mexican coach Miguel “El Piojo” Herrera, Costa Rica scored through Alonso Martínez (14’), Manfred Ugalde (19’ penalty, 90+13’ penalty), and Josimar Alcócer (76’). Suriname responded with goals from Gyrano Kerk (34’), Richonell Margaret (59’), and Shaquille Pinas (64’ penalty).

From the start, the match was fast-paced, with Costa Rica attacking aggressively against a hesitant Suriname side that gradually grew in confidence and matched their opponent’s intensity. Costa Rica’s attacking trio—Martínez, Ugalde, and midfielder Carlos Mora—kept pressure on Suriname’s defense. The opening goal came in the 14th minute when Martínez beat goalkeeper Etienne Vaessen and sent the ball into the net.

Ugalde extended the lead to 2-0 in the 19th minute with a penalty kick. However, Suriname regrouped, and Kerk pulled one back in the 34th minute. Margaret then equalized at 2-2 in the 59th minute. Suriname took a surprising 3-2 lead in the 64th minute with a penalty scored by Pinas after a foul inside the box. Costa Rica responded in the 76th minute when Alcócer made it 3-3.

The match remained tense into stoppage time. Then, in the 90+13th minute, Ugalde converted another penalty to secure a dramatic 4-3 win for Costa Rica. After the match, Ugalde acknowledged Suriname’s quality and emphasized the need to analyze and correct mistakes. “There won’t be any easy matches,” he said. Costa Rica is set to face the Dominican Republic on June 18.

Coach Miguel Herrera praised the team’s determination despite the struggle. “This team responds, fights, and shows heart,” he said, adding that “it’s always better to correct mistakes after a win than a loss.”

U.S. Warns Americans to Avoid Nicaragua Amid Authoritarian Risks

The U.S. State Department is urging Americans to skip travel to Nicaragua due to increasing authoritarianism that puts tourists at risk. The Level 3 travel advisory, active since December 2024, points to arbitrary law enforcement, possible wrongful detentions, and limited healthcare, making the country a dangerous destination despite its budget-friendly appeal compared to Costa Rica.

Nicaragua’s low costs, unspoiled beaches, and draws like surfing and birdwatching have earned positive travel coverage, but U.S. officials held a briefing recently, to push back against the hype. They warned that the authoritarian regime creates serious hazards for travelers, including unpredictable legal actions and restricted freedoms.

The advisory highlights harsh prison conditions, opaque judicial processes, and politically driven arrests, especially targeting those tied to nonprofits, religious groups, or journalism. Since 2018, over 5,300 civil society groups have been shut down, and U.S. citizens, including dual nationals, have faced entry bans, expulsions, and device seizures. Some Americans were denied entry for minor affiliations, like a journalism degree listed online.

Healthcare is another concern. Managua has one accredited private hospital, but medical services elsewhere are scarce, and government hospitals are understaffed. Tap water is often unsafe, and poor infrastructure limits emergency consular support.

Spanish-language media reported Nicaragua’s government dismissing the advisory as U.S. meddling, but human rights groups have documented ongoing repression under President Daniel Ortega, with over 2,000 political prisoners since 2018. Nicaragua’s tourism, generating $750 million in 2024, lags behind Costa Rica’s 1.2 million visitors in 2025 due to these issues.

The advisory, one step below the “do not travel” Level 4, recommends keeping valid passports, avoiding protests, and preparing supplies for potential sheltering. Travelers are advised to enroll in the Smart Traveler Enrollment Program (STEP) for real-time alerts and to exercise caution if visiting despite the warning.

Costa Rica’s Tourism Minister Dismisses Crime and Currency Concerns

Tourism Minister William Rodríguez López addressed growing concerns about crime and the strengthening colón’s impact on Costa Rica’s tourism industry, asserting that these issues are not scaring off international visitors. Speaking at a June 16, 2025, press conference, Rodríguez cited data from the Costa Rican Tourism Institute (ICT) to counter fears raised by business owners and tourism chambers.

“Travelers feel safe here—93% of tourists reported feeling very secure during their visits,” Rodríguez said, pointing to destinations like Monteverde as particularly safe. He noted that Costa Rica maintains a strong reputation abroad, with security concerns rarely making headlines in key markets like the United States, Canada, and Europe. Social media analysis backs his claim: negative news accounts for less than 1% of online conversations, leaving the country’s target audience largely unaffected.

The colón’s appreciation has raised domestic prices, which Rodríguez admitted could affect local travel. However, he argued that international tourists focus more on Costa Rica’s hospitality and unique experiences. “Visitors come for the warmth and one-of-a-kind adventures, not just the price tag,” he said. The Central Bank of Costa Rica projects a 5% devaluation by mid-2026, potentially easing cost concerns for dollar-holding tourists, according to a recent BNamericas report.

Rodríguez attributed a recent dip in arrivals to temporary issues, including airline disruptions in late 2024 and Easter Week shifting to March 2024 from April 2023. ICT data shows recovery signs, with 1.2 million air arrivals from January to May of this year, up 7% from 2024. “Online searches for Costa Rica trips are climbing steadily,” he added, signaling sustained interest.

Tourism operators remain skeptical. A 2025 ICT survey found 15% of potential visitors hesitant due to safety concerns, and Limón operators reported a 10% booking drop tied to crime reports. “We need more than reassurances—security must improve,” said Carla Méndez, a tour guide in Tamarindo.

Rodríguez highlighted ongoing efforts, including beefed-up police patrols in tourist areas and a $10 million global marketing push to promote Costa Rica’s safety and sustainability. Tourism, which generated $2.8 billion and supported 200,000 jobs in 2024, remains a cornerstone of the economy. With U.S. and Canadian visitors driving growth, the minister is betting on Costa Rica’s enduring appeal to keep numbers strong through 2025.

Panama Arrests Banana Union Leader After Chiquita Strike Ends

Panamanian authorities arrested Francisco Smith, leader of the banana workers’ union SITRAIBANA, accusing him of orchestrating road blockades during a six-week strike against Chiquita Brands. The arrest, just days after a deal ended the labor dispute, has sparked outrage among workers and heightened tensions in Bocas del Toro, near the Costa Rica border.

Smith faces charges of crimes against public safety, damaging transportation infrastructure, and disrupting public order, following a private attorney’s complaint. Security Minister Frank Abrego confirmed the arrest order came from the Attorney General’s Office. The blockades, part of a strike that began April 28, protested pension reforms under Law 462, which workers claimed would cut benefits. The action crippled Chiquita’s operations in Changuinola, leading to over 6,500 layoffs and losses exceeding $75 million, according to the company.

The strike ended June 11 after unions and the National Assembly agreed to restore workers’ pension and labor benefits. National Assembly President Dana Castañeda announced the deal, with Smith pledging to clear roads for “peace in Changuinola.” However, his arrest four days later has drawn accusations of retaliation. “This feels like a targeted move to silence us,” said union member Luis Gómez.

Tensions persist in Bocas del Toro, a region reliant on bananas and tourism. On June 14, clashes between riot police and protesters, including teachers and Indigenous groups opposing pension reforms, saw tear gas and rocks exchanged, with 28 arrests reported. The government’s state of emergency has failed to fully quell unrest, though it avoided forceful road clearings.

Chiquita’s mass layoffs and operational shutdown have left the province reeling. Bananas account for 17.5% of Panama’s exports, per the Ministry of Commerce and Industry, making the industry’s recovery critical. President José Raúl Mulino, who called the strike illegal, has ruled out compensating Chiquita or rehiring workers, complicating efforts to stabilize the region.

Environmentalists note the strike’s ripple effects, with neglected plantations risking soil degradation, as reported by regional outlet La Prensa. As protests by other groups continue, Smith’s arrest raises questions about labor rights and government tactics. “Panama can’t rebuild trust by jailing union leaders,” said activist Carla Méndez. The government now faces pressure to balance economic recovery with addressing worker grievances in a volatile region.

The Hidden Costs of Living in Costa Rica: Tariffs, Monopolies, and More

‘Tariffs’ is one of the buzzwords of 2025. Defined as taxes imposed by one country on goods imported from another country, tariffs are essentially trade barriers that raise prices and reduce available quantities of goods and services for businesses and consumers. They are also meant to create an economic burden on foreign exporters. This in theory will then encourage and stimulate production within the country applying the tariffs.

Costa Rica is tariff-crazy. I am no economist, but there are interesting anomalies in product pricing within our country. For example: A six pack of Imperial is cheaper in Colorado than in the carry out down the street in my barrio. Conversely, a variety of off-brand (but good quality) beers from Spain and Denmark are available in my local supermarket at about half the price of the locally brewed beers. How is that possible?

Monteverde cheese, produced and packaged in that same cloud forest area of Costa Rica, is cheaper across the board in Panama than here. As all who have lived here for any period of time are aware, everything from cars to refrigerators to laptops to flat screen TVs comes priced with additional and hefty surcharges, making our country one of the most expensive in the Americas. Unlike the present situation in the US, these tariffs are not applied as a reaction to any type of trade deficit.

So why do we have these excessive levies?

I consulted my Tico friend Josue, who has a degree in Business Administration from a local university, and his explanation should come as no real surprise. He blames the oligopoly (or near-monopoly), a relative handful of families well-connected in the halls of power in Costa Rica. All roads lead there.

The self-imposed tariffs on items such as automobiles act as a barrier to entry for smaller-sized potential competitors, protecting the interests of the oligopoly. Then the government uses the tariffs on all imported goods as a sort of petty cash slush fund. A few benefit while the vast majority pay more.

Josue concluded by saying, “In a truly free market, this kind of thing should not happen.” The 1%, it seems, is everywhere. As the old joke goes, it’s the golden rule: Those who have the gold make the rules.

At this writing, Costa Rica is hoping to negotiate the across-the-board 10% tariff on their exports to the US – both agricultural – coffee, bananas, ornamental plants – and technical – medical instruments, integrated circuits, and orthopedic items such as prosthetics and implants.

Will the current skirmish with this proposed tariff on Costa Rican goods to the US have any benefit for us in the way of reduced internal tariffs? I doubt it, but stay tuned anyway.

Panama Police Clash with Protesters Over Pension Reform Near Costa Rica Border

Police and protesters clashed in Panama on Saturday during an operation to clear a highway near the Costa Rican border, where teachers and Indigenous groups are protesting against a pension reform. President José Raúl Mulino’s government, which in previous weeks dealt with road closures led by banana workers, launched Operation “Omega” with the goal of “restoring free transit” in the tourist province of Bocas del Toro.

“With determination and respect for the law, the recovery of blocked roads is progressing,” said the Ministry of Public Security on the social network X. Police announced on the same platform that “15 people were detained” for “disturbing public order” during the roadblocks.

During the operation, riot police removed stones, trees, and even cars that were obstructing various roads in Bocas del Toro. Protesters responded by throwing stones at the officers, who used tear gas to disperse the crowds. So far, authorities have not provided additional details about the operation, though police reported seizing firebombs and abandoned machetes.

Panamanian media reported, without specifying numbers, that pedestrians were injured after being struck by rocks thrown during the clashes. The road closures are primarily led by teachers’ and Indigenous organizations who oppose the pension reform, fearing privatization.

On Wednesday, workers from U.S.-based banana company Chiquita Brands in Panama ended their protest and road blockades, which had been in place since April 28, due to a pension reform that removed some of their benefits. The company ceased operations and laid off more than 6,500 workers from its Changuinola plant in Bocas del Toro. Chiquita claimed the strike caused more than $75 million in losses.

On Friday, the National Assembly approved a new labor regime that restores benefits for banana workers.