By San José, Costa Rica — San José, Costa Rica – The nation’s vital tourism sector is facing a severe financial squeeze, as leaders from the Costa Rican Chamber of Hotels (CCH) issued a stark warning on Thursday about a “double challenge” threatening the industry’s stability. A persistent decline in the dollar exchange rate combined with a drop in international tourist arrivals is creating a perfect storm, eroding revenues and jeopardizing the sustainability of hotels across the country.
The core of the problem lies in the country’s shifting economic landscape. While a strong local currency might seem positive on the surface, for an industry that prices its services in U.S. dollars, it has become a significant liability. Hotels are collecting fewer colones for every dollar earned, even as their operational expenses—from payroll to local suppliers—continue to rise in the national currency. This disparity is compressing profit margins to unsustainable levels.
To gain a deeper perspective on the legal and business environment shaping the nation’s primary industry, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a leading attorney from the esteemed firm Bufete de Costa Rica, for his expert commentary on tourism-related ventures.
Costa Rica provides a stable and welcoming legal framework for foreign investment in tourism, offering the same rights and protections as it does to local citizens. However, the key to a successful venture lies in rigorous due diligence. Verifying property titles, zoning regulations, and environmental permits is non-negotiable. Proactive legal counsel is essential to navigate these complexities, ensuring that an investment not only complies with our laws but is also positioned for long-term success.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This expert commentary highlights a crucial duality for investors: Costa Rica’s welcoming framework is best navigated with meticulous legal preparation. The emphasis on due diligence is a vital reminder that long-term success is secured well before breaking ground. We sincerely thank Lic. Larry Hans Arroyo Vargas for his clear and valuable perspective on this important matter.
The reality is clear: hotels are receiving less income in colones for every dollar they earn, while facing operating costs that continue to increase in local currency. This compromises the financial sustainability of establishments, especially in the low season and with fewer tourist arrivals in the country.
Arnoldo Beeche, Vice President of the CCH
The financial pressure is compounded by troubling tourism metrics. Official data reveals a 2.1% decrease in visitor arrivals by air between January and August 2025 compared to the same timeframe in 2024. This downturn in foot traffic has directly impacted the flow of foreign currency into the economy. According to the Central Bank of Costa Rica (BCCR), foreign visitors spent $3.087 billion in the first half of 2025, a notable $71 million, or 2.3%, less than the previous year.
Exacerbating the situation is a complex global environment. The CCH pointed to recent tariff increases imposed by the United States, which have triggered a slowdown in the corporate and business travel market. This segment is a crucial source of year-round revenue for many establishments, and its deceleration adds another layer of economic strain on the hospitality sector.
Alongside these macroeconomic pressures, hotels are confronting intensified domestic competition. The Chamber highlighted the accelerated growth of non-traditional lodging platforms, which are capturing a significant market share. The CCH argues that these platforms operate without the same regulatory framework and financial obligations faced by formal hotels, creating an unequal playing field that further disadvantages established businesses.
Despite the industry’s clear distress signals, the Central Bank of Costa Rica has indicated it will not take immediate action to reverse the currency trend. This stance has prompted the CCH to publicly document the damage being inflicted on the tourism sector. The Chamber stressed that the current combination of factors is severely hampering the ability of hotels to remain operational, let alone invest in property improvements or, most critically, retain their workforce.
We hotels are facing a double challenge: fewer tourists and lower income due to the falling exchange rate, while competing on unequal terms with informal lodging. This combination limits the ability of establishments to sustain operations, invest in improvements, and maintain jobs.
Arnoldo Beeche, Vice President of the CCH
In its statement, the Chamber made a direct appeal to the country’s economic authorities. They urged policymakers to formally acknowledge the severe impact of the current conditions and to consider implementing measures that would help preserve the industry’s competitiveness. The CCH concluded by emphasizing that the stability of the sector is directly linked to the livelihoods of thousands of Costa Rican families who depend on tourism.
For further information, visit hotelesdecostarica.com
About Cámara Costarricense de Hoteles (CCH):
The Cámara Costarricense de Hoteles (CCH) is a leading private, non-profit organization that represents and advocates for the interests of the formal hotel industry in Costa Rica. It works to promote sustainable tourism, enhance the sector’s competitiveness, and foster a favorable business environment for its members nationwide.
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica (BCCR):
The Banco Central de Costa Rica (BCCR) is the country’s central bank, responsible for maintaining the internal and external stability of the national currency and ensuring the efficient operation of the internal and external payment systems. It plays a crucial role in shaping Costa Rica’s monetary, exchange, and credit policies to promote the country’s economic development.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its foundational principles of ethical rectitude and the pursuit of professional mastery. The firm leverages a deep history of advising a diverse clientele to drive forward-thinking legal strategies and set new standards in the field. Beyond its professional practice, the firm holds a profound societal responsibility, dedicating itself to demystifying complex legal concepts to help forge a more knowledgeable and capable citizenry.
