Monday, June 2, 2025

Costa Rica’s tourism recovery is facing significant threats as ongoing currency fluctuations and persistent infrastructure shortfalls begin to erode the quality of visitor experiences and limit the sector’s growth potential. While modest increases in tourist arrivals have been recorded, the strengthening of the Costa Rican colón against the U.S. dollar has raised travel costs, making the country less affordable compared to regional competitors. At the same time, aging roads, reduced airport capacity, and inadequate transportation networks hinder easy access to popular destinations, diminishing overall tourist satisfaction. These combined economic and structural challenges put Costa Rica’s ability to sustain and expand its tourism industry at considerable risk, underscoring the urgent need for targeted reforms and investment.

According to projections, air arrivals to Costa Rica in 2025 are expected to fall between 2.66 million and 2.87 million tourists, reflecting ongoing efforts to attract international travelers. In April 2025, the country welcomed over 230,000 visitors, a 4.6% increase compared to the same month in 2024. This marks a break in a downward trend that lasted from late 2024 into early 2025, signaling tentative signs of recovery.

Growth estimates for the remainder of the year suggest a moderate increase in arrivals ranging from 2% to 4%. Although this represents positive momentum, it is considerably slower than previous years’ expansions and aligns with global tourism patterns influenced by economic uncertainties and shifting travel behaviors.

One of the most significant hurdles facing Costa Rica’s tourism sector is the strong appreciation of the Costa Rican colón against the U.S. dollar. The currency’s rise from approximately ₡700 per dollar in mid-2022 to around ₡500 today has increased the cost of travel for many international visitors by as much as 15% to 20%. This sharp price shift places Costa Rica at a disadvantage compared to nearby competitors like Panama and the Dominican Republic, which remain more affordable destinations.

Beyond currency issues, escalating operational expenses are squeezing businesses and tourists alike. The recent introduction of a Value Added Tax (VAT) on tourism services adds financial strain, making travel packages more expensive. Meanwhile, infrastructural shortcomings continue to undermine the visitor experience. Poor road networks limit smooth transit between iconic spots such as volcanoes, beaches, and urban centers, while key airports have reduced capacity—airline seat availability has dropped by nearly one-fifth at Liberia’s international airport and by about 8% at the main hub in San José.

Safety concerns have emerged as another serious obstacle. Costa Rica recorded a high number of homicides in 2024, with early 2025 figures indicating no significant improvement. These developments have led governments, including those of the U.S. and Canada, to issue travel advisories. Since 2020, thousands of tourists have reported incidents ranging from theft to violent assault, with one widely publicized robbery near a popular beach town damaging the country’s reputation as a secure destination. Research indicates that safety fears drive many U.S. tourists to opt for alternative locales such as Belize and Mexico.

Industry leaders are urging comprehensive reforms to tackle these interconnected challenges. Calls are growing for measures to stabilize the exchange rate, improve infrastructure, and regulate emerging accommodation options like short-term rentals more effectively. Priorities include investing in road upgrades, airport expansions, and port enhancements to boost accessibility and elevate service standards.

Attracting high-profile events—international festivals, sports competitions, and cultural gatherings—is seen as a promising strategy to increase visitor numbers. However, experts emphasize that these opportunities require strong government backing and strategic coordination to maximize impact. Regional tourism bodies stress the importance of developing a clear, forward-thinking plan to reclaim Costa Rica’s leadership role within Central America’s competitive travel market.

In an effort to revitalize tourism, the national tourism authority has launched marketing campaigns aimed at key markets like the U.S. and Canada. Initiatives such as the “Only the Essentials” campaign highlight the country’s unique ecosystems and cultural experiences. Additional investments include establishing dedicated Tourist Police units in hotspot areas to enhance safety and constructing infrastructure improvements like a new dock facilitating access to popular destinations. Nevertheless, stakeholders widely agree that these steps must be part of a larger framework of reforms to be truly effective.

The economic importance of tourism cannot be overstated. In 2024, the sector contributed over 8% of Costa Rica’s GDP and employment, generating more than $5.4 billion in revenue. Yet, some coastal communities are already feeling the pinch—job losses in tourism-related roles have reached 20% in regions like Quepos and Nosara since late 2024. As the low travel season continues, there is rising concern over potential business closures and the broader economic fallout.

Despite these difficulties, there are hopeful signs. European carriers are increasing their flight schedules to Costa Rica for the upcoming high season, signaling confidence in the destination’s future. Visitor arrivals from South America are also on the rise, helping to offset slower demand from North American and European markets. Tourism professionals are encouraging travelers to choose sustainable options such as eco-lodges, local guided tours, and community-based experiences that support environmental conservation and economic resilience.

Costa Rica’s tourism recovery faces risks as rising currency values and inadequate infrastructure increase travel costs and reduce visitor satisfaction, threatening future growth. Urgent reforms and investments are needed to address these challenges and sustain the industry’s momentum.

In conclusion, Costa Rica’s tourism sector stands at a pivotal moment. While recent visitor numbers show modest improvement, overcoming the challenges of currency volatility, infrastructure deficits, safety concerns, and regulatory gaps is essential. Addressing these issues decisively will be key to securing Costa Rica’s position as a premier and sustainable travel destination in Central America’s dynamic tourism landscape.