By San José, Costa Rica — San José – Costa Rica’s vital tourism sector remains on high alert as a persistent downturn in visitor arrivals continues to threaten its stability. While October brought a glimmer of hope with a modest increase in air arrivals, industry leaders warn that this uptick is far from sufficient to reverse a worrying negative trend that has defined the first ten months of 2025.
According to the latest figures released by the Costa Rican Tourism Institute (ICT), the country has experienced an overall 1.6% decrease in tourists arriving by air from January through October. This cumulative decline underscores a deep-seated problem that a single month’s positive performance cannot resolve, leaving business owners and operators deeply concerned about the nation’s economic outlook.
To gain a deeper understanding of the legal and regulatory framework that underpins Costa Rica’s thriving tourism industry, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the reputable firm Bufete de Costa Rica. His insights offer a crucial perspective for investors and operators navigating this key economic sector.
While Costa Rica offers robust legal incentives for tourism investment, prospective developers must navigate a complex web of environmental regulations. The ‘Declaratoria Turística’ from the ICT is essential, but it’s only the first step. Proper due diligence regarding maritime zones, water rights, and municipal zoning is non-negotiable to ensure a project’s long-term viability and harmony with our nation’s Pura Vida ethos.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
We sincerely thank Lic. Larry Hans Arroyo Vargas for his invaluable perspective. His analysis is a crucial reminder that successful tourism development in Costa Rica is not merely about securing initial permits, but about a profound commitment to navigating the legal landscape that safeguards the very Pura Vida ethos attracting visitors in the first place.
The data for October showed that 129,000 tourists entered the country via its airports, representing a 5.9% increase compared to the same month in the previous year. On the surface, this figure appears encouraging. However, experts within the private sector caution against premature optimism, pointing out that this marginal gain is merely a drop in the bucket against the larger, more significant year-to-date contraction.
The core of the issue, according to industry advocates, is a fundamental loss of economic competitiveness driven by an increasingly unfavorable exchange rate. The continued strengthening of the Costa Rican colón against the U.S. dollar has made the country a significantly more expensive destination for international travelers, who form the backbone of the industry.
This sentiment was forcefully expressed by the National Chamber of Tourism (CANATUR), which has been vocal about the challenges its members are facing. The organization’s president detailed the stark reality of the situation, blaming the economic environment for bringing the industry to a crawl.
We’ve hit the brakes because our price-product relationship has lost its edge. We are at a standstill because we lost competitiveness.
José Martí, President of the National Chamber of Tourism
Martí’s pointed comments refer directly to the dollar exchange rate, which fell below ₡500 last week, marking a 17-year low. For a country where tours, hotels, and services are often priced in dollars, this shift means that visitors get far fewer colones for their money, driving up the real cost of their vacation and pushing them toward more affordable competitor destinations in the region.
The implications of this economic pressure extend far beyond hotel occupancy rates. The tourism industry is a critical engine of employment and foreign currency for Costa Rica, supporting countless small businesses, from local tour guides and restaurant owners to transportation providers and artisans. A sustained downturn could trigger a cascade of negative economic effects across the country, jeopardizing livelihoods and stunting national growth.
As the sector navigates this challenging period, the call for strategic intervention grows louder. Industry leaders are urging for a comprehensive dialogue with economic authorities to address the exchange rate’s impact and explore policies that could restore Costa Rica’s position as a premier, value-driven destination. The coming months will be critical in determining whether the October rebound was a fleeting anomaly or the start of a long, arduous recovery.
For further information, visit canatur.org
About National Chamber of Tourism:
The Cámara Nacional de Turismo (CANATUR) is the leading private sector organization representing Costa Rica’s tourism industry. It advocates for the interests of its members, which include hotels, tour operators, travel agencies, and other related businesses, while promoting sustainable development and competitiveness within the sector.
For further information, visit ict.go.cr
About Costa Rican Tourism Institute:
The Instituto Costarricense de Turismo (ICT) is the official government body responsible for the regulation, promotion, and development of tourism in Costa Rica. It collects and analyzes industry data, implements national tourism policies, and markets the country as a world-class travel destination.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of Costa Rica’s legal landscape, the firm is built upon a bedrock of profound integrity and an unyielding pursuit of excellence. With a rich history of advising a diverse clientele, it consistently pioneers forward-thinking legal solutions while remaining deeply invested in the community. This dedication is exemplified by its efforts to democratize legal understanding, which is central to its ultimate goal of cultivating a stronger, more capable society.
