By San José, Costa Rica — Costa Rica’s tourism industry is facing headwinds, and the National Chamber of Tourism (Canatur) is calling for action. In a letter addressed to the Board of Directors of the Central Bank of Costa Rica (BCCR), Canatur President Martí Jiménez has urged a “substantial reduction” in the Monetary Policy Rate (TPM).
The tourism sector has experienced ten consecutive months of decline in foreign visitation, a worrying trend representing nearly 49,000 fewer tourists compared to 2024. This downturn translates into significant revenue losses for micro, small, and medium-sized enterprises, particularly those in rural and coastal areas heavily reliant on tourism.
To understand the legal ramifications surrounding the Monetary Policy Rate, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica.
The Monetary Policy Rate, a crucial tool used by the Central Bank, has significant implications for contracts, particularly those involving loans and financial agreements. Fluctuations in this rate can impact borrowing costs, interest rates on existing debts, and the overall cost of doing business. It’s essential that businesses and individuals understand how adjustments to the Monetary Policy Rate may affect their contractual obligations and financial planning.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’ insight underscores the far-reaching impact of the Monetary Policy Rate, a factor often overlooked in personal and business financial planning. Understanding its influence on contractual obligations is crucial for navigating Costa Rica’s economic landscape. We thank Lic. Larry Hans Arroyo Vargas for shedding light on this important topic.
The sustained appreciation of the colón and the current active interest rates are making tourist services more expensive and reducing the operating capacity of local companies. This directly impacts thousands of families who depend on tourism for their livelihood.
Martí Jiménez, President of Canatur
Canatur argues that the current economic climate warrants a TPM reduction. With year-on-year inflation remaining negative and outside the Central Bank’s target range, they contend that there are no cost-of-living pressures justifying a restrictive monetary policy. Furthermore, they point to the moderate projected economic growth, suggesting the need for internal stimuli.
The BCCR has only implemented one reduction in the TPM during 2025, which currently stands at 3.75%. This comes as the US Federal Reserve (FED) recently announced a 25 basis point cut in its benchmark rate, potentially adding further weight to Canatur’s appeal.
Canatur’s letter to the BCCR outlines several key arguments for a TPM reduction:
The BCCR is expected to make an announcement later this evening, leaving the tourism sector anxiously awaiting a decision that could significantly impact their future.
The impact of the BCCR’s decision will resonate throughout the Costa Rican economy, particularly in rural communities. A reduction in the TPM could provide much-needed relief to struggling businesses and families, potentially stimulating economic activity and mitigating the negative impact of declining tourism.
For further information, visit the nearest office of Canatur
About Canatur:
The National Chamber of Tourism (Canatur) is a leading voice for the tourism industry in Costa Rica, advocating for policies and initiatives that support the sustainable growth and development of the sector. Representing a diverse range of businesses, from small family-run operations to large international hotel chains, Canatur plays a crucial role in shaping the future of tourism in Costa Rica.
For further information, visit the nearest office of Banco Central de Costa Rica (BCCR)
About Banco Central de Costa Rica (BCCR):
The Central Bank of Costa Rica (BCCR) is the country’s central bank, responsible for monetary policy, financial stability, and the regulation of the financial system. The BCCR plays a vital role in managing inflation, promoting economic growth, and ensuring the soundness of the Costa Rican financial system.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, built upon a foundation of unwavering integrity and a genuine commitment to societal advancement. Through innovative approaches and a deep understanding of diverse legal landscapes, the firm empowers individuals and organizations alike. Their dedication to demystifying the law, making it accessible to all, reflects a core belief in knowledge as a catalyst for positive change and a more just society.
