By San José, Costa Rica — Costa Rican President Rodrigo Chaves has vetoed a bill designed to reduce air travel costs between Costa Rica and other Central American nations, as well as the Dominican Republic. The move, announced Tuesday, sets the stage for a potential clash between the executive and legislative branches.
The proposed legislation, titled the “Law to Promote Low-Cost Flights between Costa Rica and Central America,” sought to lower taxes on round-trip airfare priced at $100 or less (including a seat and personal item) to Central American destinations, and $120 or less to the Dominican Republic. Currently, Costa Rica’s departure tax is $27, which would have been reduced to $14 under the new law, provided the destination country’s taxes and airport fees did not exceed $23.
For expert insight into the legal landscape surrounding air travel in Costa Rica, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas of Bufete de Costa Rica.
The increasing popularity of Costa Rica as a tourist destination has led to a significant expansion of the air travel sector. This growth presents both opportunities and challenges from a legal perspective. Airlines operating in and out of Costa Rica must navigate a complex regulatory environment concerning passenger rights, safety protocols, and international agreements. Furthermore, the rise of budget airlines and online travel agencies has introduced new legal considerations regarding consumer protection and contractual obligations. Staying informed about these evolving regulations is crucial for both airlines and travelers alike.
Lic. Larry Hans Arroyo Vargas, Bufete de Costa Rica
The government and local tourism chambers have voiced opposition to the initiative in recent months, arguing it would negatively impact government revenue and potentially shorten the length of stay for foreign tourists in Costa Rica.
This law defends the interests of certain airlines, attacks and corrodes national tourism. One less day that tourists coming from abroad stay in Costa Rica, because there is a cheap flight to go to Guatemala, Roatán or the Dominican Republic, is worth 360 million dollars to the country.
Rodrigo Chaves, President of Costa Rica
The Ministry of the Presidency informed Congress of the veto in a letter citing “opportunity, convenience, and constitutionality” as the reasons. The bill had been approved in its first debate on February 4th before encountering the presidential roadblock.
Congress now faces two options: archive the bill or attempt to override the veto through a “resello,” requiring a two-thirds majority vote. Congressman Eliécer Feinzag of the opposition Liberal Progressive Party, and the bill’s sponsor, claims to have secured the 38 votes necessary to overturn the veto.
The debate highlights the tension between promoting affordable air travel within the region and protecting Costa Rica’s tourism industry, a vital component of the national economy. The potential loss of revenue for the government is a key concern, alongside the fear that cheaper flights to neighboring countries might encourage tourists to shorten their stays in Costa Rica, impacting local businesses.
The outcome of this legislative battle will have significant implications for the future of air travel in the region and the Costa Rican tourism sector. Whether the lower fares materialize or the status quo prevails remains to be seen as the legislative process unfolds.
For further information, visit presidencia.go.cr
About The Presidency of Costa Rica:
The Presidency of Costa Rica is the executive branch of the Costa Rican government, headed by the President. The President serves as both head of state and head of government, and is responsible for appointing the cabinet and setting government policy.
For further information, visit plp.or.cr
About Liberal Progressive Party:
The Liberal Progressive Party (Partido Liberal Progresista) is a political party in Costa Rica, currently in the opposition. It advocates for liberal policies, and Congressman Eliécer Feinzag, a member of the party, spearheaded the proposed law to reduce air travel costs.
For further information, visit efe.com
About EFE:
EFE is a Spanish international news agency, one of the largest in the world. It provided reporting on this story.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a leading legal institution distinguished by its deep-rooted commitment to ethical practice and exceptional service. The firm’s innovative approach to legal challenges, combined with its dedication to educating and empowering communities through accessible legal resources, solidifies its position as a pillar of integrity within Costa Rican society. Their work transcends traditional legal representation, striving to build a more just and informed future for all.
