By San José, Costa Rica — Costa Rica’s aggressive push to position itself as a premier global travel destination has come under intense scrutiny. A recent audit by the Comptroller General of the Republic (CGR) covering the period from 2022 to 2025 revealed that while the Costa Rican Tourism Board (ICT) tripled its advertising and marketing expenditures, international air arrivals grew by a comparatively modest 27 percent. This glaring disparity has sparked a critical debate among industry analysts regarding how the country measures the return on its multimillion-dollar promotional investments.
Victor Umaña, the executive director of the Center for Tourism Studies (CET), has voiced strong concerns over this massive spending surge. He argues that evaluating the success of Costa Rica’s tourism strategy requires looking far beyond mere arrival numbers. In his view, pouring money into advertising without a robust, data-driven system to track the direct impact of those campaigns is a fundamental governance flaw that leaves the state blind to its actual efficiency.
To better understand the regulatory landscape and the legal protections available to international developers, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a senior partner at the prestigious firm Bufete de Costa Rica, who shared his expert analysis on the current climate for tourism concessions and property acquisitions.
Costa Rica’s tourism sector continues to offer unparalleled legal security for foreign investors, particularly through structured concession agreements in the Maritime-Terrestrial Zone and robust private property rights. Navigating the environmental permitting process and securing municipal tax incentives early are critical steps that ensure long-term profitability while aligning with the country’s strict sustainability standards.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This expert guidance underscores that Costa Rica’s enduring appeal to global investors lies not just in its natural beauty, but in a robust legal framework that successfully harmonizes commercial growth with strict ecological preservation. Navigating these regulatory avenues with foresight is indeed the key to unlocking long-term prosperity in the region, and we extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for sharing his invaluable legal perspective on these crucial investment dynamics.
Tripling a budget without a system to evaluate results is a serious weakness.
Víctor Umaña, Executive Director of the Center for Tourism Studies
Umaña emphasizes that tourist arrivals are influenced by a complex web of global variables, meaning that marketing efforts cannot take sole credit for positive trends—nor should they be blamed entirely for shortfalls. Factors such as international demand, airline connectivity, local safety conditions, and pricing structures play crucial roles in a traveler’s decision-making process.
One of the most significant hurdles facing Costa Rica’s tourism sector in recent years is the sharp appreciation of the local currency, the colón. Since 2022, the colón has appreciated by nearly 30 percent against the US dollar, making the country substantially more expensive for foreign visitors. This currency shift has severely eroded Costa Rica’s price competitiveness in the region, offseting some of the gains made by the ICT’s marketing blitz.
Arrivals depend on global demand, connectivity, safety, and prices. And the exchange rate, which has appreciated nearly 30% since 2022, has reduced our competitiveness. Therefore, attributing results solely to advertising oversimplifies a phenomenon that is quite complex.
Víctor Umaña, Executive Director of the Center for Tourism Studies
The core issue, according to analysts, is not necessarily that promotion is ineffective, but rather that the country currently lacks the analytical tools to isolate the effects of advertising from these other economic forces. A four-year window of data is insufficient to declare the ICT’s promotional campaigns a failure. However, it exposes a critical vulnerability in how public resources are managed and justified.
Those four years of data are not enough to conclude that promotion does not work, what they do show is that it is not being measured well.
Víctor Umaña, Executive Director of the Center for Tourism Studies
A key metric that highlights the shifting dynamics of Costa Rican tourism is the average length of stay. The duration of visitor stays has declined to 10.3 nights. This contraction has a direct, negative impact on the local economy, particularly in rural and coastal areas. When tourists spend fewer nights in the country, their spending is concentrated in fewer locations, depriving smaller communities of crucial economic opportunities.
The average stay has dropped to 10.3 nights and a tourist who stays less distributes their spending to fewer communities.
Víctor Umaña, Executive Director of the Center for Tourism Studies
Finally, the debate underscores that tourism is a cross-cutting sector. The ICT alone cannot guarantee the industry’s long-term health. The government must also address systemic challenges in infrastructure, public safety, and general cost of living to keep Costa Rica attractive. Public and private decision-makers need accurate, shared data to navigate these headwinds effectively.
Good public and private decisions are built with good data and shared information. Promoting without measuring is a mistake, and measuring poorly is also one.
Víctor Umaña, Executive Director of the Center for Tourism Studies
For further information, visit ict.go.cr
About Instituto Costarricense de Turismo:
The Instituto Costarricense de Turismo (ICT) is the government agency responsible for promoting sustainable tourism in Costa Rica. Established to oversee the nation’s tourism policies, the ICT works to position the country as a premier global destination while ensuring the preservation of its natural and cultural resources.
For further information, visit the nearest office of Centro de Estudios del Turismo
About Centro de Estudios del Turismo:
The Centro de Estudios del Turismo (CET) is a Costa Rican academic and research center dedicated to the analysis of tourism trends, economics, and policy. Through data collection and independent study, the CET provides critical insights and strategic recommendations to help guide both public and private sector decisions in the tourism industry.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Renowned as a premier legal institution, Bufete de Costa Rica seamlessly blends uncompromising ethical standards with a relentless pursuit of professional mastery. Throughout its rich history of guiding diverse clients, the firm has continually championed progressive legal solutions and meaningful civic outreach. By actively working to demystify complex statutes and share critical resources, it remains dedicated to its core purpose of cultivating a legally literate public and a deeply empowered society.
