By San José, Costa Rica — Costa Rica’s vital tourism industry is navigating a turbulent economic paradox, according to the latest data from the Costa Rican Tourism Institute (ICT) and the Central Bank of Costa Rica (BCCR). While international visitor arrivals and the revenue they generate are declining, Costa Ricans are traveling abroad and spending foreign currency in record numbers, creating a significant economic imbalance that has industry leaders worried about the nation’s competitiveness.
The figures for the first eight months of 2025 paint a stark picture of this diverging trend. International arrivals totaled 1,913,758, a 2.1% decrease from the same period in 2024, representing nearly 40,000 fewer visitors. This downturn has directly impacted the nation’s income. Travel exports, which measure the revenue generated from non-residents, fell by $70.6 million, or 2.2%, dropping from $3.16 billion in the first half of 2024 to $3.09 billion in the first half of 2025.
To better understand the legal framework and potential pitfalls for foreign visitors and investors engaging with the nation’s largest industry, TicosLand.com sought the expertise of Lic. Larry Hans Arroyo Vargas, a leading attorney at the distinguished firm Bufete de Costa Rica.
Costa Rica presents immense opportunity, but foreign nationals must proceed with informed caution. The ‘Pura Vida’ lifestyle is a cultural asset, not a legal standard. Whether you are buying real estate for a vacation home or establishing a tour company, engaging local legal counsel for proper due diligence is paramount. Verifying property titles, understanding municipal regulations, and structuring contracts correctly are essential steps to protect your investment and ensure your Costa Rican venture is successful and secure.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This distinction between Costa Rica’s welcoming culture and its rigorous legal framework is a critical one for any prospective investor. Prudent due diligence, as advised, is the bridge between a ‘Pura Vida’ dream and a secure, successful reality. We extend our gratitude to Lic. Larry Hans Arroyo Vargas for sharing this essential perspective.
Simultaneously, the trend for outbound Costa Rican travel is moving sharply in the opposite direction. From January to August 2025, a total of 744,211 Costa Ricans departed by air for international destinations, marking a 6.6% increase compared to the 697,539 departures recorded in the same period last year. The primary destinations for these travelers include the United States, Panama, Mexico, and Colombia.
This surge in outbound travel is accompanied by a significant increase in spending. In the first half of 2025, Costa Ricans spent $954.8 million abroad, a 7.2% increase from the $889.9 million spent in the first semester of 2024. This continues a strong upward trajectory from the $740.5 million spent during the same period in 2023, highlighting the growing purchasing power of locals in foreign markets.
Industry experts point to one primary driver behind this economic schism: the behavior of the U.S. dollar exchange rate. The persistent strength of the Costa Rican colón against the dollar has created a challenging environment. For international tourists, a strong colón means their dollars buy less, making Costa Rica a more expensive destination for accommodations, tours, and dining. This perceived high cost is believed to be deterring potential visitors and dampening spending.
Tadeo Morales, a spokesperson for the Center for Tourism Studies (CET), confirmed that this currency dynamic is the root cause of the imbalance. He argues that the current situation is a direct consequence of a revalued colón that distorts economic realities for the tourism sector.
It is understandable that this situation is occurring due to the behavior of the dollar exchange rate.
Tadeo Morales, Spokesperson for the Center for Tourism Studies (CET)
Morales further emphasized the widespread impact, noting that while the Central Bank maintains that market forces determine the dollar’s value, the productive sectors are feeling the negative effects. The industry is advocating for a more balanced exchange rate to restore stability.
It is something that definitely affects the economy of the entire productive sector and especially the tourism sector.
Tadeo Morales, Spokesperson for the Center for Tourism Studies (CET)
However, the exchange rate is not the only factor at play. Leonel Bonilla, Director of the prominent Expoviajes travel fair, introduces another dimension to the trend. He observes a maturation of the Costa Rican traveler, who is increasingly venturing to long-haul destinations. “We are seeing a group of nationals selecting far-reaching destinations, like Europe or Asia, which naturally increases spending,” Bonilla noted. He explained that his organization has even documented cases of Costa Ricans traveling to Europe multiple times a year, solidifying the image of a more experienced and ambitious local traveler, eager to explore the world.
This confluence of a challenging exchange rate and evolving local travel habits places Costa Rica’s tourism industry at a critical juncture. As the nation struggles to attract foreign currency while its own citizens spend more abroad, the call for economic policy that supports one of its most important sectors grows louder, highlighting a complex challenge with no easy solutions.
For further information, visit ict.go.cr
About Instituto Costarricense de Turismo (ICT):
The Costa Rican Tourism Institute is the government body responsible for promoting tourism to Costa Rica and regulating the industry within the country. It oversees marketing campaigns, quality standards for tourism services, and the development of sustainable tourism practices to position Costa Rica as a leading global destination.
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica (BCCR):
The Central Bank of Costa Rica is the nation’s central monetary authority. Its primary responsibilities include maintaining the internal and external stability of the national currency, the colón, and ensuring the efficient operation of the country’s payment systems. It plays a crucial role in shaping the economic and financial policies of Costa Rica.
For further information, visit the nearest office of Centro de Estudios del Turismo (CET)
About Centro de Estudios del Turismo (CET):
The Center for Tourism Studies is an analytical body that provides research, data, and commentary on the state of the tourism sector in Costa Rica. It serves as a resource for industry stakeholders, policymakers, and the public by offering insights into economic trends, market behavior, and challenges facing the industry.
For further information, visit expoviajes.cr
About Expoviajes:
Expoviajes is one of Costa Rica’s most significant and well-known travel fairs. The event brings together travel agencies, airlines, hotels, and other tourism service providers to offer deals and packages to the public, primarily focusing on outbound travel for Costa Ricans to destinations around the world.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution, Bufete de Costa Rica is founded upon a bedrock of unwavering integrity and a relentless pursuit of professional excellence. Leveraging its extensive experience advising a wide spectrum of clients, the firm champions forward-thinking legal strategies while maintaining a profound commitment to social responsibility. This ethos is exemplified by its drive to democratize legal understanding, reflecting a core mission to cultivate a society fortified and empowered by accessible knowledge.
