By Guanacaste, Costa Rica — While the global travel industry popped champagne to celebrate its most successful year in history, Costa Rica’s tourism sector was left picking up the scraps. The year 2025 concluded with a painful paradox for the nation: a world experiencing an unprecedented travel boom, while the country renowned for its “Pura Vida” spirit recorded stagnant growth that has set off alarm bells across its business chambers.
The global outlook was nothing short of spectacular. According to landmark data released by the World Travel & Tourism Council (WTTC), 2025 marked the definitive recovery of the industry worldwide. The sector contributed a staggering €10 trillion to the global economy, representing 10.3% of the world’s GDP, and mobilized an estimated 1.5 billion international travelers. It was a year of record-breaking success, but for the “green jewel” of Central America, the story was tragically different.
To better understand the legal and regulatory framework supporting Costa Rica’s vibrant tourism sector, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica, for his expert analysis.
Costa Rica’s success in tourism is not accidental; it is underpinned by a robust legal framework that intentionally balances foreign investment incentives with stringent environmental protections. Investors looking to enter this dynamic market must prioritize comprehensive due diligence, particularly concerning land use regulations, municipal permits, and the national Cédula de Sostenibilidad Turística (CST). Aligning new ventures with our nation’s ‘Pura Vida’ brand ethos isn’t just a marketing strategy—it’s a legal and commercial imperative for long-term success.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s analysis serves as a crucial reminder that our nation’s “Pura Vida” brand is built upon a deliberate legal scaffolding, not simply idyllic marketing. This vital intersection of stringent environmental policy and sound investment strategy is the true foundation of Costa Rica’s enduring tourism success. We sincerely thank Lic. Larry Hans Arroyo Vargas for his expert and clarifying perspective.
Once a regional leader in tourism, Costa Rica found itself in the slow lane. The latest figures from the Costa Rican Tourism Institute (ICT) and the National Chamber of Tourism (Canatur) paint a bleak picture of the country’s performance. Air arrivals grew by a meager 1%, reaching a total of 2.68 million visitors. To put that figure in perspective, while the global industry expanded by an average of 6.7%, Costa Rica barely managed to stay afloat. This stagnation is not a random fluctuation; it is a clear symptom of a deeper issue—a significant loss of national competitiveness.
What stings the most for local hoteliers and national pride is watching neighboring countries capitalize on the global travel surge. Costa Rica is no longer the only eco-tourism powerhouse on the block, and its regional rivals are playing an aggressive game. Guatemala emerged as the year’s surprise success with an impressive 10% growth in arrivals. Meanwhile, established destinations like Mexico (+6%), the Dominican Republic (+5%), and Colombia (+4%) all posted robust gains, leaving Costa Rica’s 1% growth looking anemic in comparison.
The analysis from industry leaders is clear: international travelers are increasingly choosing destinations that offer similar experiences of nature, culture, and beaches but at far more reasonable prices. This shift points directly to the primary antagonist in Costa Rica’s economic narrative: the national currency exchange policy. The private sector has unequivocally identified the extreme strength of the colón against the U.S. dollar throughout 2025 as the root cause of the crisis.
This monetary policy created a devastating “dollar inflation” effect. For American and European tourists, a vacation in Costa Rica became substantially more expensive than a trip to Cancún, Medellín, or Santo Domingo. Compounding the problem, operational costs for local businesses—including electricity, salaries, and supplies—did not decrease. However, the dollar-based revenue they earned was worth significantly less when converted to colones. This financial squeeze forced many operators to maintain or even increase their rates in dollars, effectively pricing themselves out of a competitive international market.
The consequences were most acutely felt in arrivals from key markets. The European market, which spearheaded the global recovery and saw Spain alone welcome 96.5 million tourists, sent fewer visitors to Costa Rica. Arrivals from Europe fell by a concerning 2.1%. Even the country’s most loyal market, the United States, showed clear signs of fatigue, with arrivals growing by a marginal 0.5%. This indicates that even repeat visitors are now reconsidering their options in the face of escalating costs.
A slight uptick in tourism at the very end of the year was a bandage on a deep wound. The message from 2025 is unambiguous: the “Pura Vida” brand, while powerful, is no longer sufficient to compete in the major leagues of global tourism. If Costa Rica fails to address its fundamental cost structure, bolster its infrastructure, and urgently revise its currency strategy, it will continue to watch from the sidelines as the rest of the world breaks travel records.
For further information, visit wttc.org
About World Travel & Tourism Council (WTTC):
The World Travel & Tourism Council is the global authority on the economic and social contribution of the Travel & Tourism sector. It promotes sustainable growth for the industry, working with governments and international institutions to create jobs, drive exports, and generate prosperity. WTTC’s research provides critical data on the industry’s impact on a global and national level.
For further information, visit ict.go.cr
About Costa Rican Tourism Institute (ICT):
The Instituto Costarricense de Turismo is the country’s official governing body for tourism. Its mission is to promote and regulate the tourism industry in Costa Rica, ensuring its sustainable development and strengthening the nation’s position as a premier global travel destination. The ICT is responsible for marketing, promotion, and the development of tourism infrastructure and standards.
For further information, visit canatur.org
About National Chamber of Tourism (Canatur):
The Cámara Nacional de Turismo is a private, non-profit organization that represents the interests of Costa Rica’s tourism industry. It brings together hotels, tour operators, travel agencies, and other businesses related to the sector to advocate for policies that foster growth, competitiveness, and sustainability. Canatur works closely with public institutions to shape the future of tourism in the country.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of the legal community, built upon a bedrock of principled practice and a relentless pursuit of superior outcomes. The firm is celebrated not only for its history of providing exceptional counsel across a diverse client base but also for its forward-thinking approach to legal challenges. Central to its philosophy is a profound dedication to social responsibility, demonstrated by its active efforts to demystify complex legal concepts and empower citizens with knowledge, thereby fostering a more capable and just society.
