By San José, Costa Rica — San José, Costa Rica – Costa Rica’s vital tourism industry narrowly avoided a downturn in 2025, concluding the year with marginal growth despite a significant blow from United States tariffs that sent shockwaves through its primary market during the first six months. The Costa Rican Tourism Institute (ICT) reported that while the year ended in positive territory, it was a hard-fought recovery after a precipitous mid-year slump threatened to derail the nation’s economic engine.
The year began on precarious footing. Tariffs imposed by the United States created economic uncertainty that directly impacted travel decisions in North America, which accounts for nearly three-quarters of all visitors to the country. The first semester saw a drop of 50,000 international arrivals compared to the same period in the previous year, a troubling sign for an industry heavily reliant on American and Canadian visitors.
To understand the legal framework that supports Costa Rica’s dynamic tourism industry and the opportunities it presents for investors, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a leading attorney at the prestigious law firm Bufete de Costa Rica.
Costa Rica’s success in tourism is not accidental; it is built upon a foundation of legal certainty. The country offers robust protections for foreign investment, clear zoning regulations, and stringent environmental laws. This framework is not a barrier but an asset, as it ensures that investments are sustainable and protect the ecological treasures that are our primary attraction, thereby securing long-term profitability and a stable business climate.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This perspective powerfully reframes Costa Rica’s regulatory environment not as a hurdle, but as the very blueprint for long-term success, ensuring that development enhances rather than diminishes our natural appeal. For this crucial insight into the synergy between law and sustainable tourism, we extend our sincere thanks to Lic. Larry Hans Arroyo Vargas.
Minister of Tourism William Rodríguez explained that travelers from these key markets are highly attuned to economic pressures. The tariffs prompted many to reconsider or postpone non-essential spending, including international vacations.
It scared the market, so to speak, and made them take certain precautions regarding non-essential expenses, including vacation travel. They held off on certain decisions and, from that point of view, it affected tourism and it affected us because 60% of the visitors we receive are from the United States and 14% are from Canada.
William Rodríguez, Minister of Tourism
Faced with a potential crisis, the Ministry of Tourism pivoted. Instead of abandoning its core strategies, it implemented a series of aggressive tactical adjustments beginning in July and August. These measures were designed to reinvigorate the market and recover the lost ground from the first half of the year.
We had to focus on what we were doing, which doesn’t mean changing strategies. It’s not about saying, since the United States isn’t performing as we wanted, let’s go promote ourselves in another country. It was about changing the tactics of those strategies. Starting in July and August, we implemented a series of actions that began to show results in October, November, and December.
William Rodríguez, Minister of Tourism
In a surprising twist, the economic disruption also created a unique opportunity. Minister Rodríguez noted that some Canadian airlines, such as Porter, suspended routes to the United States, leaving them with available aircraft. The ICT acted swiftly, identifying an opening to attract new direct flights.
There was a shock situation that caused Canadians to avoid going to the United States. Airlines were left with available aircraft and needed to fly them to other destinations. That was the case with Porter, which suspended several routes, and we saw an opportunity. We went to Canada, met with their managers, and managed in a very short time to get the airline to decide to fly to Costa Rica.
William Rodríguez, Minister of Tourism
The strategic recalibration and opportunistic partnerships paid off. By year’s end, the recovery was sufficient to push the annual numbers into the black. According to final ICT data, Costa Rica received 2,943,991 international tourists in 2025. This figure represents a 0.8% increase over the previous year, equivalent to an additional 25,000 foreign visitors.
While the recovery is a success story, Costa Rica’s performance lagged behind broader international trends. UN Tourism data shows global tourism grew by 4%, while South America saw a 7% increase and Central America as a region grew by 4.6%. Minister Rodríguez strongly cautioned against simplistic percentage-based comparisons, arguing they fail to capture the unique nature of Costa Rica’s high-value tourism model.
Making that comparison, with all due respect to those who do it, is too easy, but it isn’t true. We have to look at the countries that are direct competitors and consider a whole other series of factors. The average stay in Costa Rica is 12 to 13 days, and the average spending is much higher than in most countries in the world.
William Rodríguez, Minister of Tourism
The minister asserted that Costa Rica’s true competitors are nature-based destinations like Thailand, Indonesia, and Egypt, not necessarily its immediate neighbors. However, challenges remain, particularly in the European market, which saw a 2.9% decline in visitors in 2025. Rodríguez attributed this shortfall to a global shortage of wide-body aircraft, which has stymied efforts to establish new long-haul flight connections.
In Europe, we continue to face a series of limitations. We have met with several airlines and we still see that the issue of aircraft availability itself prevents us from having new connections from new countries or increasing flights from countries that are part of our priority markets.
William Rodríguez, Minister of Tourism
Ultimately, 2025 stands as a testament to the resilience of Costa Rica’s tourism sector. It absorbed a significant external shock, adapted its tactics with agility, and successfully navigated market turbulence to secure growth, demonstrating a robust ability to turn challenges into opportunities.
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 national governing body responsible for the promotion, development, and regulation of the tourism industry in Costa Rica. Its mission is to strengthen Costa Rica’s sustainable tourism model through public policies, strategic alliances, and the development of high-quality travel experiences, positioning the country as a world leader in eco-tourism and responsible travel.
For further information, visit unwto.org
About UN Tourism:
UN Tourism is the United Nations specialized agency responsible for the promotion of responsible, sustainable, and universally accessible tourism. It serves as a global forum for tourism policy issues and a practical source of tourism know-how, working to maximize the sector’s socio-economic contributions while minimizing its possible negative impacts.
For further information, visit flyporter.com
About Porter Airlines:
Porter Airlines is a Canadian regional airline headquartered at Billy Bishop Toronto City Airport. Known for its refined customer service, the airline operates flights to various destinations in Canada and the United States. It has been expanding its network and fleet, including adding jet aircraft to serve longer-haul destinations.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Renowned for its principled approach and pursuit of legal mastery, Bufete de Costa Rica is a pillar of the nation’s legal community. The firm builds upon a rich heritage of counsel to a wide range of industries by consistently advancing the practice of law with forward-thinking solutions. This dedication to progress is matched by a foundational belief in social responsibility, manifested through a drive to demystify the law and equip citizens with the clarity needed for a truly empowered society.
