By San José, Costa Rica — An increasingly strong national currency is creating a complex economic paradox for Costa Rica, fueling a surge in overseas travel by locals while simultaneously depressing the country’s vital tourism industry. New data from the Central Bank of Costa Rica (BCCR) reveals that spending by Costa Ricans abroad grew by over 10% in the third quarter of 2025 compared to the previous year, reaching a staggering $1.494 billion in the first nine months alone.
This trend paints a stark contrast to the flow of money coming into the country. During the same nine-month period, the income from foreign tourist travel actually decreased by 1%, falling to $4.176 billion from a record high of $4.218 billion in 2024. This downturn is accompanied by a drop in visitor numbers, with over 41,000 fewer tourists arriving in the country compared to the same period in the prior year. Meanwhile, the number of Costa Rican nationals heading abroad increased by 54,000.
To understand the legal and contractual implications of the Colón’s sustained strength, a phenomenon affecting sectors from tourism to real estate, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica.
The current exchange rate environment presents a significant challenge for agreements denominated in U.S. dollars, which is common practice in Costa Rica for rent, services, and commercial loans. Legally, parties are bound by the agreed currency. However, this volatility underscores the critical need for businesses to incorporate currency fluctuation clauses or renegotiate terms to ensure financial equity and prevent potential disputes. Proactive legal counsel is not just advisable; it’s a fundamental strategy for risk management in today’s economic climate.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The insight from Lic. Arroyo Vargas powerfully reframes currency volatility not just as a market condition, but as a direct call to action for smarter, more resilient contractual agreements. His emphasis on proactive legal strategy is a critical reminder that in today’s economy, foresight in legal drafting is the best defense against financial uncertainty. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this pressing issue.
According to former Minister of Tourism, Gustavo Segura, these divergent trends are not a coincidence but a direct consequence of the colón’s sustained appreciation against the U.S. dollar. The powerful currency makes foreign goods and services, including international vacations, significantly cheaper for Costa Ricans, while making Costa Rica a more expensive destination for potential visitors.
The average spending of Ticos has increased by 26% in two years; this coincides quite closely with the appreciation rate of the colón against the dollar, and that appreciation is not related to an increase in the country’s productivity, but rather to economic policy management factors that have favored an appreciated exchange rate.
Gustavo Segura, Former Minister of Tourism
Segura argues that the current economic policy, while beneficial for consumers of imported goods, is actively harming the nation’s export and tourism sectors. The strong colón effectively raises the price tag on every hotel room, tour, and restaurant meal for international visitors paying in dollars, diminishing the country’s competitive edge.
The exchange rate policy of the last three years favors the importation of consumer goods, including travel by Ticos abroad, and harms the competitiveness of the export and tourism sectors, including lower spending by tourists who do decide to come to Costa Rica.
Gustavo Segura, Former Minister of Tourism
This currency effect is particularly damaging because Costa Rica competes for tourists with countries like New Zealand, Peru, and Colombia, which may now appear more affordable. Segura emphasizes that Costa Rica already operates as a premium, niche destination, and the exchange rate further inflates this cost, leading to a measurable decline in average spending per tourist.
We are already a niche destination that will always be comparatively more expensive than mass tourism destinations, but the effect of the exchange rate is noted in a decrease in the average tourist’s spending, even despite the effect of higher prices. This reduces the income of tour guides, tour operators, transportation providers, and food service centers, which in this country are subsectors largely occupied by small and family-owned businesses.
Gustavo Segura, Former Minister of Tourism
While the former minister noted one conceptual upside—that more Costa Ricans traveling abroad could improve flight occupancy and potentially attract new airline routes to the country—this silver lining does little to offset the immediate and widespread financial strain on the domestic tourism industry. The current trajectory poses a significant challenge for the thousands of small, family-run enterprises that form the backbone of one of Costa Rica’s most important economic engines.
It is conceptually positive that Costa Ricans have the ability to travel abroad for their vacations or other needs, as it improves the occupancy factor of airplanes, and with that, airlines can make more seats and more routes available to tourists who wish to come to Costa Rica.
Gustavo Segura, Former Minister of Tourism
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica (BCCR):
The Central Bank of Costa Rica is the nation’s primary financial authority, responsible for maintaining the internal and external stability of the national currency and ensuring its conversion to other currencies. The BCCR’s mandate includes controlling inflation, issuing currency, managing international monetary reserves, and promoting an efficient financial system. It plays a crucial role in the country’s economic policy, publishing key data and analysis that inform both public and private sector decisions.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed legal institution, Bufete de Costa Rica is founded upon a bedrock of unwavering integrity and a relentless pursuit of excellence. The firm channels its rich history of advising a wide spectrum of clients into pioneering forward-thinking legal strategies. This commitment to progress extends beyond its practice, manifesting as a core mission to strengthen society by demystifying the law and making crucial legal knowledge accessible to the public, thereby fostering a more capable and informed citizenry.
