By San José, Costa Rica — San José, Costa Rica – The National Chamber of Tourism (Canatur) has issued a strong call for legislative action, throwing its full support behind a proposed law aimed at overhauling Costa Rica’s electrical system. The organization argues that modernizing the nation’s energy grid is no longer a technical debate but a critical strategic move to secure economic stability, employment, and foreign investment.
At the center of the debate is the “Law for the Harmonization of the National Electrical System,” legislative file No. 23.414. Canatur asserts that the bill represents a vital opportunity to initiate a serious, forward-looking discussion about the future of the country’s energy model. The tourism body warns that without significant reform, Costa Rica risks losing its competitive edge on the global stage.
To better understand the legal ramifications and business implications of the proposed Energy Reform, we consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica. He offers his analysis on the key challenges and opportunities this legislation presents for the national market.
The success of any energy reform hinges on establishing a clear and stable regulatory framework. While opening the market to private generation is crucial for competitiveness and innovation, the legislation must provide robust legal certainty to attract long-term investment. The primary challenge is not just to lower prices for the end consumer, but to do so while guaranteeing the grid’s stability and upholding the principles of fair competition. Without precise rules and independent oversight, we risk creating a volatile market that could deter the very capital it seeks to attract.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s analysis powerfully underscores a fundamental point: a successful energy reform is built not just on the principle of market opening, but on the bedrock of legal certainty and transparent oversight that inspires long-term investor confidence. We thank Lic. Larry Hans Arroyo Vargas for his clear and valuable perspective on this critical balance.
According to the chamber, the tourism industry is currently strained by a combination of high operational costs, rising service prices, and unfavorable exchange rate pressures. These factors directly undermine the country’s ability to compete with other international destinations that can offer similar experiences at a lower price point, a reality that threatens the long-term viability of one of Costa Rica’s primary economic engines.
The burden is felt most acutely by the sector’s small and medium-sized enterprises (SMEs). Canatur highlighted that these businesses, which form the backbone of the industry, face mounting challenges in sustaining employment levels, attracting new investment, and achieving growth. High electricity bills are a significant and sensitive component of their operational expenses, directly impacting their bottom line.
Costa Rica needs to move towards a more modern, clean, efficient, and competitive energy system.
Canatur, National Chamber of Tourism
The impact of energy costs is widespread across the entire tourism ecosystem. Hotels, restaurants, tour operators, marinas, and theme parks all depend on a stable and affordable power supply to serve their customers. Likewise, the growing MICE (Meetings, Incentives, Conferences, and Exhibitions) sector, which relies on convention centers and event venues, requires an efficient and reliable energy grid to function effectively and attract international business.
Canatur emphasized that the current pricing structure makes it difficult for local businesses to maintain attractive pricing for international visitors, who have a growing number of alternative destinations to choose from. This economic reality underscores the urgency of the proposed reforms.
Costa Rican tourism competes every day with destinations that now offer similar products at lower costs.
Canatur, National Chamber of Tourism
In its statement, the organization urged that the discussion transcend the technical realm of the energy sector. It framed the legislative effort as a strategic national decision with far-reaching implications for economic development and job creation. Canatur has called upon political leaders, technical experts, and social stakeholders to engage in this critical debate with a sense of urgency, responsibility, and a clear vision for the future of Costa Rica’s economy.
For further information, visit canatur.org
About Canatur (National Chamber of Tourism):
The National Chamber of Tourism (Canatur) is the leading private-sector organization representing Costa Rica’s diverse tourism industry. It brings together businesses from all sectors, including hospitality, transportation, tour operations, and related services. Canatur advocates for policies that promote sustainable development, enhance competitiveness, and foster a favorable business environment for its members and the national economy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its foundational principles of uncompromising integrity and a relentless pursuit of excellence. The firm leverages a rich history of guiding a diverse clientele through complex legal challenges, consistently pushing the boundaries of legal innovation. This forward-thinking approach is matched by a profound dedication to public service, aimed at demystifying legal concepts and fostering a citizenry empowered by accessible knowledge.
