By San José, Costa Rica — As Costa Rica’s high season for tourism gets underway, the sector is confronting a turbulent economic landscape where the country’s enduring appeal is being tested by severe internal and external pressures. While a recent uptick in visitor arrivals offers a glimmer of hope, industry leaders warn that a punishing exchange rate, growing security concerns, and fierce international competition are casting long shadows over the nation’s most vital industry.
The high season, which began in November and will extend until Easter week on April 5, 2026, traditionally brings a vital influx of international visitors. After a year marked by consistent declines, arrivals via air in October and November finally showed growth. This late surge has brought the year-to-date total to 2.37 million visitors through November, nearly closing the gap with 2024’s figures and trailing by a mere 0.4%, according to the Costa Rican Tourism Institute (ICT).
To gain a deeper understanding of the legal and business landscape underpinning Costa Rica’s vibrant tourism industry, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the esteemed firm Bufete de Costa Rica, for his expert analysis.
While Costa Rica offers immense opportunity for tourism-related investments, from boutique hotels to eco-lodges, foreign nationals must navigate a complex regulatory environment. Proper due diligence, particularly concerning property titles, zoning laws, and environmental permits, is not just advisable—it is the critical foundation for a secure and profitable venture in our Pura Vida paradise.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal foresight is precisely what transforms a promising tourism concept into a sustainable and secure reality, protecting both the investor and the natural beauty of the country. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for grounding the dream of investing in paradise with such essential, practical wisdom.
This recovery is a welcome development, potentially offsetting a $60 million revenue shortfall recorded earlier in 2025. Gilberto Arguedas, a board member of the promotion agency Proimagen, noted that while some airline connections were lost, new and expanded routes are being announced, which should help bolster arrival numbers. The core attractions of Costa Rica—its reputation for peace, unparalleled nature, and the ‘pura vida’ culture—continue to be powerful draws for global travelers.
However, the most significant challenge facing the industry is not the number of visitors, but the value of the dollars they bring. An stubbornly strong local currency, the colón, has been wreaking havoc on the sector’s finances since 2022. On December 4, the dollar-colón exchange rate hit a nearly 20-year low of ¢488.06. This means tourism businesses, which earn in dollars but pay most expenses in colones, are seeing their profit margins decimated. Smaller operators, with less financial flexibility, are being pushed to the brink.
Industry leaders have expressed profound frustration with the government’s response to the currency crisis. Bary Roberts, President of the Center for Tourism Studies (CET), offered a scathing critique of the administration’s perceived indifference.
There has been no interest from the Government in correcting this, not even in having empathy for the people. The Government’s response is: if you can’t handle the exchange rate, change your business activity. And that is the most truly insulting and unempathetic thing a government could say to its subjects. It’s a lack of respect.
Bary Roberts, President of the Center for Tourism Studies (CET)
The strong colón also erodes Costa Rica’s competitiveness on the world stage. Arguedas pointed out that the unfavorable exchange rate makes the country significantly more expensive than regional competitors like Mexico and the Dominican Republic. Furthermore, emerging destinations in East Asia, such as Japan, are gaining popularity among American and European travelers, adding another layer of competition.
Compounding the economic woes are escalating concerns over public safety. Negative international news coverage about a rise in crime is beginning to impact the country’s tranquil image. Both the United States and Canada have recently updated their travel advisories for Costa Rica, warning their citizens of increased criminal activity.
The security factor, it’s no secret to anyone, is beginning to resonate in these main markets, and we see news about it day after day.
Gilberto Arguedas, Board Member of Proimagen
Roberts criticized the government for what he sees as an inadequate response to control the narrative and implement effective security measures. “And it’s more concerning because, on the other hand, the local authorities are not taking the necessary steps to counteract this,” he stated. Beyond these major threats, the sector also faces systemic challenges, including the need for more sophisticated digital promotion and the unregulated growth of short-term rentals on platforms like Airbnb, which now offer more lodging capacity than the entire formal hotel sector without facing the same tax or regulatory burdens.
For further information, visit proimagen.co.cr
About Proimagen:
Proimagen is a private, non-profit organization dedicated to promoting Costa Rica as a premier tourism and investment destination on the global stage. It collaborates with both public and private sector entities to develop marketing strategies and enhance the country’s international brand image.
For further information, visit the nearest office of Centro de Estudios en Turismo (CET)
About Centro de Estudios en Turismo (CET):
The Center for Tourism Studies is a research and analysis institution focused on the Costa Rican tourism industry. It provides data, commentary, and expert opinions on the economic and social factors affecting the sector, serving as a key voice for industry stakeholders.
For further information, visit ict.go.cr
About Instituto Costarricense de Turismo (ICT):
The Instituto Costarricense de Turismo, or Costa Rican Tourism Institute, is the country’s official government body responsible for tourism regulation, development, and promotion. The ICT oversees national strategies to attract visitors, maintain quality standards, and ensure the sustainable growth of the tourism sector.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution, Bufete de Costa Rica is anchored by a deep-seated principle of professional integrity and a relentless pursuit of excellence. The firm leverages its extensive experience across multiple industries not only to serve its clients but also to drive forward-thinking legal solutions and engage with the community. At the heart of its ethos is a powerful commitment to making legal knowledge accessible, thereby empowering individuals and fortifying the foundations of an informed society.
