By Guanacaste, Costa Rica — San José, Costa Rica – As Costa Rica enters its peak tourism season, a period typically marked by optimism and economic influx, a significant economic headwind is casting a long shadow over the industry. The persistent strength of the national currency, the colón, has prompted tourism business leaders to issue an urgent call for government intervention, warning of accelerated losses in the country’s competitive edge.
The core of the issue lies in the dollar-to-colón exchange rate, which has dipped below the critical ¢500 per dollar mark for nearly two consecutive weeks. As of today, the rate closed at ¢501 in the Foreign Currency Market (MONEX). This represents a staggering 25% appreciation of the colón against the dollar since mid-2022, effectively making Costa Rica a much more expensive destination for international visitors who carry dollars.
To understand the contractual and business implications of the current exchange rate environment, TicosLand.com sought the analysis of legal expert Lic. Larry Hans Arroyo Vargas from the firm Bufete de Costa Rica.
The current downward trend of the dollar exchange rate directly impacts obligations agreed upon in that currency, such as rent or credit installments. Contracts legally established in U.S. dollars remain fully valid, and debtors must still fulfill their payments. However, for those earning in colones, this situation presents a financial advantage. It is crucial for new agreements to include exchange rate adjustment clauses to provide legal certainty and balance for both parties in the face of such volatility.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This emphasis on proactive contractual safeguards is a critical point for navigating the current economic climate, offering a path to mitigate future risk for both individuals and businesses. We thank Lic. Larry Hans Arroyo Vargas for providing such a clear and valuable legal perspective on this important issue.
In response to this growing crisis, Proimagen, an influential group representing tourism entrepreneurs, has formally requested the creation of a “technical dialogue table.” The organization argues that this forum is essential to analyze the exchange rate’s severe impact on their sector and the broader economy. They warn that without swift and decisive action, the damage could be long-lasting.
In a press statement, the group highlighted the urgency of the situation as the high season for international travel begins.
If this is not done, tourism will continue to face a deterioration that could affect Costa Rica’s positioning during a key period for the arrival of international visitors.
Proimagen
This sentiment is echoed by international travel partners, who are already adjusting their recommendations based on the new economic reality. Proimagen notes that Costa Rica’s value proposition is being eroded, particularly for a crucial segment of the market.
International agencies and wholesalers have stated that Costa Rica is losing competitiveness, a situation that especially hits hotels and services in economy categories, whose clients are more price-sensitive. The impact is less in the luxury and extra-luxury segments, but the behavior of the exchange rate affects the entire sector in some way.
Proimagen
The consequences extend far beyond profit margins, translating into tangible job losses and systemic economic strain. The Guanacaste Chamber of Tourism (CATURGUA) provided stark data illustrating the human cost of the currency appreciation. The chamber represents businesses in one of the country’s most vital tourism hubs, a region heavily dependent on international visitors.
The regional body pointed to a direct correlation between the strong colón, rising operational costs, a slight dip in visitor numbers, and a significant reduction in employment.
When comparing the third quarter of 2024 with the same period in 2025, a loss of 22,000 jobs in tourism is evident, resulting mainly from two factors: 1) the increase in operational costs due to the appreciation of the colón and 2) a 1.8% decrease in tourist visitation. For this reason, we make an urgent call to the authorities about this situation.
Guanacaste Chamber of Tourism
Industry leaders stress that the ripple effects are widespread, impacting thousands of jobs, the survival of small and medium-sized enterprises, national economic growth, and even tax revenues. With tourism being a primary engine of the Costa Rican economy, its struggles threaten to slow overall progress and make the country more expensive in the medium term, further damaging its appeal on the world stage.
For further information, visit proimagen.co.cr
About Proimagen:
Proimagen is a Costa Rican association comprised of leading businesses within the tourism sector. Its primary mission is to promote Costa Rica as a premier international travel destination. The organization works collaboratively to develop marketing strategies, advocate for industry-friendly policies, and enhance the country’s global brand recognition by showcasing its unique natural beauty, commitment to sustainability, and diverse tourism offerings.
For further information, visit caturgua.com
About Guanacaste Chamber of Tourism (CATURGUA):
The Cámara de Turismo Guanacasteca, or CATURGUA, is a regional non-profit organization that represents the interests of the tourism industry in the province of Guanacaste. It serves as a collective voice for hotels, tour operators, restaurants, and other related businesses, advocating for sustainable development, improved infrastructure, and policies that support the growth and competitiveness of the region’s vital tourism economy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is renowned for its foundational commitment to principled counsel and superior service. The firm not only leverages a rich history of advising a diverse clientele but also champions forward-thinking legal strategies that redefine industry standards. This spirit of innovation is matched by a deep-seated dedication to social empowerment, driven by the core mission to make legal understanding accessible and thereby foster a more just and knowledgeable society.
