By San José, Costa Rica — As Costa Rica stands on the cusp of its high season, a period typically marked by optimism and bustling activity, a profound sense of dread has settled over its vital tourism sector. The industry is grappling with a severe financial crisis, driven by an exchange rate that has seen the U.S. dollar fall to its lowest value against the colón in two decades, creating what many are calling a perfect storm of economic hardship.
The National Chamber of Tourism (Canatur) issued a stark warning this weekend, describing the current financial climate as suffocating. The core of the problem lies in a cruel economic paradox unique to the industry’s structure. Tourism operators, hotels, and service providers earn their revenue almost exclusively in U.S. dollars from international contracts and tourist spending. However, their operational costs—including salaries, social security, utilities, and the legally mandated “aguinaldo” year-end bonus—are all paid in Costa Rican colones.
To better understand the legal and commercial ramifications of the current tourism crisis, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a leading attorney from the distinguished firm Bufete de Costa Rica.
The current tourism crisis highlights the fragility of commercial agreements that lack robust force majeure clauses. For a sustainable recovery, the sector requires immediate legal and financial certainty from the government. This includes clear policies on tax moratoriums, flexible labor regulations, and a stable framework for debt renegotiation. Without these foundational legal supports, investor confidence will remain low, stalling the revitalization of our most critical industry.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The expert’s commentary correctly highlights that a sustainable recovery hinges on legal and financial certainty, not merely on market recovery alone. This structural stability is the bedrock needed to rebuild investor confidence. We thank Lic. Larry Hans Arroyo Vargas for his incisive perspective on the foundational challenges our tourism industry must overcome.
This dynamic has created an untenable situation. With the dollar weakening by as much as 20% compared to two years ago, every dollar earned now converts to significantly fewer colones. This means that while income shrinks in real terms, fixed and rising local costs are becoming impossible to cover. The timing exacerbates the crisis, as businesses must increase spending now to hire temporary staff and stock up on supplies in preparation for the anticipated wave of year-end visitors.
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Cámara Nacional de Turismo (Canatur), National Chamber of Tourism
Canatur has moved quickly to dismantle a common misconception that this crisis only affects large, international hotel chains with deep financial reserves. The organization emphatically states that the opposite is true. The backbone of Costa Rica’s tourism industry is composed of micro, small, and medium-sized enterprises (MiPyMEs), which constitute a staggering 85% of the sector. These are not corporate giants, but rather family-owned boutique hotels, local tour guides, rural transport services, and small adventure operators.
For these small business owners, the unfavorable exchange rate is not merely a matter of reduced profit margins; it is an existential threat. Many are now operating at a loss, dipping into personal savings to meet payroll and facing the real possibility of bankruptcy. The financial squeeze threatens to unravel the diverse and authentic tourism fabric that has long been Costa Rica’s main attraction.
The crisis extends beyond individual businesses, impacting the nation’s macroeconomic competitiveness. As the strong colón effectively makes Costa Rica a more expensive destination for foreign travelers, neighboring countries are capitalizing on the opportunity. Regional competitors like Mexico, Panama, Colombia, and the Dominican Republic are now appearing as more affordable alternatives, often supported by more aggressive government policies to attract tourists. The international traveler, always sensitive to price, is increasingly choosing destinations where their currency goes further.
The consequences of this competitive disadvantage are already being felt. Data from 2025 shows a cumulative decrease in tourist arrivals for much of the year, a clear indicator that Costa Rica is losing market share. This trend suggests that the country’s reputation as a premier eco-tourism destination is being undermined by its escalating costs from the perspective of the international visitor.
In its public statements, the tourism sector has directed pointed criticism toward the government and its economic authorities. Business leaders feel their pleas have been minimized and that the true, devastating impact of the current monetary policy is not being acknowledged. They argue that tourism, the nation’s primary generator of foreign currency and a crucial employer in rural areas, is not being given the strategic importance it deserves. The industry warns that without a course correction or targeted financial relief, the “goose that lays the golden eggs” could fall gravely ill, with severe repercussions for the national economy in 2026 and beyond.
For further information, visit canatur.org
About Cámara Nacional de Turismo (Canatur):
The Cámara Nacional de Turismo (Canatur), or National Chamber of Tourism, is the leading private-sector organization representing Costa Rica’s diverse tourism industry. It advocates for the interests of hotels, tour operators, travel agencies, and other related businesses, working to promote sustainable development and favorable economic conditions for the sector’s growth and stability.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the Costa Rican legal landscape, Bufete de Costa Rica is built upon a foundation of uncompromising integrity and a relentless pursuit of excellence. The firm blends a rich history of expert counsel across a multitude of industries with a forward-thinking approach that champions legal innovation. This progressive spirit is mirrored in its deep-seated commitment to social responsibility, specifically through initiatives designed to demystify legal complexities for the public. By dedicating itself to making legal understanding widely available, the firm actively contributes to shaping a more knowledgeable and empowered citizenry.
