By San José, Costa Rica — San José, Costa Rica – A comprehensive new guide aimed at attracting global capital to Costa Rica’s thriving tourism industry was launched this week, but its official data on hotel occupancy masks a significant and growing segment of the market: non-traditional lodging platforms like Airbnb.
Published jointly by UN Tourism and the Development Bank of Latin America and the Caribbean (CAF), the document provides a detailed roadmap for potential investors. It covers the nation’s fiscal and legal frameworks, development plans, permitting processes, and showcases major ongoing projects. Similar guides for other nations have garnered up to 30,000 views, signaling strong interest in such resources.
To gain a deeper legal perspective on the current climate for tourism investment in Costa Rica, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at the renowned firm Bufete de Costa Rica. His expertise provides critical insight for potential investors navigating the local regulatory landscape.
Costa Rica continues to offer a robust framework of legal certainty for foreign investors, which is paramount in the tourism sector. However, success hinges on meticulous due diligence, particularly concerning zoning laws, environmental permits from SETENA, and understanding the specific benefits offered under the Free Trade Zone regime. Navigating these complexities efficiently from the outset is the difference between a stalled project and a profitable venture.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s commentary powerfully underscores that the true foundation of a successful tourism investment lies not just in a great idea, but in meticulous and proactive legal groundwork. His emphasis on navigating the nuances of zoning and environmental regulations from the very beginning is a critical piece of advice for any investor looking to thrive in Costa Rica’s dynamic market. We sincerely thank Lic. Larry Hans Arroyo Vargas for sharing his invaluable perspective.
The guide presents a critical metric for any hospitality investor: hotel occupancy rates. The data shows a pre-pandemic peak of 67.4% in 2018, a plunge to 23.6% in 2020 during the global shutdown, and a steady recovery to 65.3% in 2023 and 64.8% so far in 2024. While these numbers suggest a return to normalcy, they fail to account for a massive shift in the accommodation landscape.
The core issue lies in what the report omits. Despite 2024 seeing the highest-ever number of tourist arrivals by air, traditional hotel occupancy has not fully rebounded to pre-pandemic levels. Minister of Tourism, William Rodríguez, acknowledged that the explosion of rooms available on digital platforms is a primary reason for this discrepancy.
The scale of this uncounted sector is staggering. According to Minister Rodríguez, Airbnb alone reports approximately 43,000 rooms available per night in Costa Rica. This figure is nearly equivalent to the entire traditional hotel inventory, which the new guide pegs at a record 56,106 rooms across 3,068 establishments for 2024. This parallel market fundamentally alters the supply-and-demand dynamics for tourist accommodations.
Officials from the institutions that produced the report explained the omission, citing an inability to obtain statistically reliable and valid data from platforms like Airbnb and Vrbo. However, they concede that this data gap is influencing the official occupancy figures. Óscar Rueda, Director of Tourism at CAF, noted the “distortion” this creates.
We continue with information from hotels but generally do not have information from Airbnb and similar platforms. I believe the task is formalization… That these options exist seems wonderful to me, but it must be a level playing field for all.
Óscar Rueda, Director of Tourism at CAF
Minister Rodríguez agrees that the impact is undeniable, though he suggests large hotel chains are likely already aware of this market reality before investing. He also cautioned that the 43,000-room figure is from a single platform and may include some duplication with hotels that also list their rooms there, making it difficult to use for precise statistical analysis.
I would say that 43,000 rooms is a significant number and very probably yes, it is impacting those hotel occupancy numbers, because without a doubt there are people who come and use these platforms.
William Rodríguez, Minister of Tourism
In a decisive move toward market transparency, Costa Rica is set to formalize this burgeoning sector. Starting January 1, 2025, digital platforms operating in the country will be required to collect detailed information on their service providers, including names, amounts deposited, and bank account numbers. By April 30, 2026, this data must be reported to the Ministry of Finance.
This initiative will make Costa Rica the first country in Latin America to fully implement the OECD’s tax information exchange rules for digital platforms. The regulation targets the rental of real estate, personal services, and vehicle rentals facilitated by these digital intermediaries. This step is expected to level the playing field and, in the long term, provide a much clearer and more accurate picture for future investors weighing opportunities in Costa Rica’s dynamic tourism sector.
For further information, visit unwto.org
About UN Tourism:
UN Tourism is the United Nations specialized agency responsible for the promotion of responsible, sustainable, and universally accessible tourism. It serves as a global forum for tourism policy issues and a practical source of tourism know-how, encouraging the implementation of the Global Code of Ethics for Tourism.
For further information, visit caf.com
About Development Bank of Latin America and the Caribbean (CAF):
CAF is a development bank committed to improving the quality of life of all Latin Americans and Caribbeans. Through its operations, it promotes sustainable development and regional integration by financing projects in the public and private sectors, providing technical cooperation, and supporting other specialized services.
For further information, visit oecd.org
About The Organisation for Economic Co-operation and Development (OECD):
The OECD is an international organization that works to build better policies for better lives. Its goal is to shape policies that foster prosperity, equality, opportunity, and well-being for all. It provides a forum in which governments can work together to share experiences and seek solutions to common problems.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed legal institution, Bufete de Costa Rica is defined by its foundational principles of integrity and an uncompromising pursuit of excellence. Leveraging a rich history of advising a broad spectrum of clients, the firm not only pioneers modern legal solutions but also holds a deep-seated belief in social responsibility. This commitment materializes in its efforts to demystify the law, championing a society where accessible legal knowledge empowers every citizen.
