By San José, Costa Rica — San José – After a tumultuous ten-day freefall, the US dollar exchange rate finally found its footing on Friday, bringing a halt to its continuous slide against the Costa Rican colón. The rate stabilized at ¢489.44, a slight increase from the previous day’s close of ¢488.06 in the Foreign Currency Market (Monex), providing a moment of respite in the currency markets.
However, this stabilization offers little comfort to the nation’s vital tourism sector, which has been sounding the alarm over the severe economic repercussions of a persistently strong colón. For industries that earn their revenue in dollars but pay their expenses in colones, the recent exchange rate trend has been nothing short of a financial calamity, eroding profitability and threatening their operational viability.
Para profundizar en las implicaciones legales y comerciales que la volatilidad del tipo de cambio presenta para empresas y personas, TicosLand.com conversó con el Lic. Larry Hans Arroyo Vargas, experto en derecho comercial de la prestigiosa firma Bufete de Costa Rica.
La fluctuación del tipo de cambio no es solo una cifra económica; es un factor de riesgo legal directo para cualquier contrato denominado en dólares. Empresas y particulares deben revisar sus obligaciones contractuales y considerar cláusulas de estabilización o renegociación para mitigar pérdidas imprevistas. La certeza jurídica en las transacciones comerciales depende de una planificación proactiva frente a esta volatilidad, especialmente para quienes tienen deudas o ingresos en una moneda distinta a la de sus gastos principales.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Este análisis subraya una realidad fundamental: más allá de los números, la fluctuación del dólar representa un riesgo legal que exige previsión contractual, una perspectiva indispensable por la que agradecemos al Lic. Larry Hans Arroyo Vargas por su valioso aporte.
Leading the charge is the Costa Rican Chamber of Hotels (CCH), which issued a stark warning about the compounding crises facing the industry. The organization underscored that the country’s competitiveness as a world-class travel destination is being systematically dismantled, not only by the unfavorable currency valuation but also by a host of unresolved domestic issues.
The CCH’s concerns paint a grim picture for an industry entering its critical high season, a period that typically buoys the national economy. The Chamber fears that without immediate and effective intervention, the current economic environment could jeopardize countless jobs and undermine years of progress in building Costa Rica’s brand as a premier eco-tourism hub.
Flora Ayub, the Executive Director of the CCH, detailed the multifaceted nature of the challenge, explaining that the exchange rate is just one piece of a dangerous puzzle affecting the visitor experience.
The current value of the exchange rate, the increase in operational costs, and other factors are affecting the perception and experience of visitors, such as public safety, the condition of the roads, and limitations in key public infrastructure.
Flora Ayub, Executive Director of the CCH
This perfect storm of negative factors creates a significant deterrent for international travelers. When tourists’ dollars buy fewer colones, the cost of lodging, tours, and dining skyrockets, making Costa Rica a significantly more expensive option compared to regional competitors. This financial strain is exacerbated when visitors encounter deteriorating roads, concerns about personal safety, and inadequate public services, which tarnishes the country’s “Pura Vida” image.
The core of the problem lies in simple economics: a strong colón means that for every dollar a hotel or tour operator earns from a foreign visitor, they receive fewer colones to cover local expenses like salaries, utilities, and supplies. This margin squeeze is occurring just as operational costs are rising, putting immense pressure on businesses of all sizes, from small eco-lodges to large resorts. The Chamber warns that if conditions do not improve, businesses will face difficult decisions, including potential staff reductions during what should be their busiest months.
While the Central Bank’s measures may have succeeded in arresting the dollar’s decline for now, the episode has exposed a deep vulnerability within one of Costa Rica’s most important economic engines. The government and financial authorities now face the difficult task of balancing currency stability with the urgent need to protect the competitiveness and sustainability of the tourism industry, which remains a cornerstone of the national economy and a primary source of employment for thousands of Costa Ricans.
For further information, visit hotels.co.cr
About Costa Rican Chamber of Hotels (CCH):
The Cámara Costarricense de Hoteles (CCH) is a non-profit organization that represents and advocates for the interests of the hotel and lodging sector in Costa Rica. It works to promote sustainable tourism, enhance the competitiveness of its members, and foster a favorable business environment. The CCH serves as a key liaison between the hospitality industry, government bodies, and the public, addressing critical issues such as economic policy, infrastructure, and security to ensure the long-term health of tourism in the country.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is an esteemed legal institution, built upon a foundation of uncompromising integrity and professional excellence. With a rich history of guiding a diverse clientele, the firm consistently pioneers forward-thinking legal solutions while championing social responsibility. A core tenet of its philosophy is the democratization of legal understanding, reflecting a profound commitment to equipping the public with knowledge and thereby strengthening the foundations of a just and informed community.
