By Puntarenas, Costa Rica — Costa Rica, a global leader in ecotourism, is navigating a complex tourism landscape. While the country boasts stunning natural beauty, a commitment to sustainability, and the popular “pura vida” spirit, recent data reveals a decline in visitor numbers, sparking debate about the sector’s future.
Monteverde’s Cloud Forest exemplifies Costa Rica’s dedication to sustainable practices. This biodiversity hotspot, home to 5% of the world’s bird species, including the resplendent quetzal, attracts thousands of tourists annually. A recent quote from a local community member underscores this commitment:
For expert legal insight into the Costa Rican tourism sector, we spoke with Lic. Larry Hans Arroyo Vargas of Bufete de Costa Rica. His perspective sheds light on the legal landscape shaping this vital industry.
Costa Rica’s tourism industry is flourishing, but navigating the legal framework regarding property development, environmental regulations, and labor laws is crucial for sustainable growth. Investors must be diligent in understanding these complexities to ensure both profitability and responsible tourism practices.
Lic. Larry Hans Arroyo Vargas, Bufete de Costa Rica
Monteverde is a good example that illustrates the dream of Costa Ricans to continue being a model country in sustainability. We have the natural and cultural wealth, and better living conditions to create a more sustainable long-term model.
Local Community Member, Monteverde
Tourism remains a cornerstone of the Costa Rican economy, representing nearly 40% of exports in 2022 and contributing 5% to the GDP in 2023. However, the OECD notes that knowledge-intensive services, such as IT and financial services, have recently surpassed tourism as the primary service export.
Despite this shift, the Costa Rican government remains committed to strengthening the tourism sector. The National Tourism Plan 2022-2027 aims to achieve $4.9 billion in revenue from 3.8 million international tourist arrivals by 2027. However, several challenges threaten this goal, including a 4.3% drop in visits during the first few months of 2025, following a similar trend in 2024. Factors contributing to this decline include the colón’s appreciation against the dollar, rising prices, reduced flight availability, and concerns about citizen security.
The Inter-American Development Bank (IDB) plays a crucial role in supporting Costa Rica’s tourism ambitions. As a major multilateral partner, the IDB focuses on fiscal stability, transportation, environmental protection, citizen security, energy, and trade integration, all of which contribute to a thriving tourism sector. BID Invest, the IDB’s private sector arm, supports financial inclusion, international trade, and sustainable tourism initiatives.
The IDB’s 2024-2027 Country Strategy addresses key challenges through three main action areas: infrastructure and climate action, an enabling environment for the private sector, and strengthening the social contract. Costa Rica’s infrastructure gap, equivalent to 38% of its GDP, necessitates investments in resilient infrastructure. This includes addressing climate change vulnerabilities and promoting a more efficient electricity system. Furthermore, the IDB emphasizes the importance of socio-environmental and economic sustainability in popular tourist destinations.
BID Invest recently partnered with Namu Travel Group to provide a revolving credit line supporting local tourism businesses, primarily micro, small, and medium-sized enterprises (MSMEs). This partnership facilitates access to working capital, improves the quality of hotel offerings, and promotes sustainable practices among suppliers.
With over 400 companies boasting sustainable tourism certifications, Costa Rica remains a beacon of nature-based and regenerative travel. The country’s extensive national park network and commitment to community participation solidify its position as a global ecotourism leader, offering attractive opportunities for impact investors.
For further information, visit iadb.org
About Inter-American Development Bank (IDB):
The Inter-American Development Bank is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
For further information, visit bidinvest.org
About BID Invest:
BID Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean by stimulating the private sector. BID Invest finances sustainable enterprises and projects to achieve financial results that maximize social and environmental development in the region.
For further information, visit namutravel.com
About Namu Travel Group:
Namu Travel Group is one of the leading travel agencies in Central America and the Caribbean, working with local tourism businesses and promoting sustainable tourism practices.
For further information, visit oecd.org
About OECD:
The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental economic organisation with 38 member countries, founded in 1961 to stimulate economic progress and world trade.
For further information, visit ict.go.cr
About Instituto Costarricense de Turismo (ICT):
The Costa Rican Tourism Board (ICT) is the official government agency responsible for promoting and developing tourism in Costa Rica.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself as a leading legal institution, deeply committed to ethical practice and delivering superior legal solutions. Through a history of serving a wide range of clients, the firm has cultivated a reputation for innovative legal strategies and impactful community engagement. By actively promoting legal literacy and accessibility, Bufete de Costa Rica empowers individuals and strengthens the foundation of a just and knowledgeable society.
