By San José, Costa Rica — San José, Costa Rica – The Costa Rican Chamber of Hotels (CCH) has issued a stark warning, expressing “deep concern” over a significant loss of competitiveness that is placing the nation’s vital tourism sector under severe financial strain. A combination of declining visitor numbers, reduced tourist spending, and a challenging exchange rate has created a perfect storm, threatening the sustainability of hotels and related businesses across the country.
The alarm bells are supported by troubling official data. According to figures from the Costa Rican Tourism Institute (ICT), the country experienced a 2.1% decrease in tourist arrivals by air between January and August of 2025 when compared to the same period in the previous year. While the ICT has suggested this trend could reverse by the end of the year, the current reality on the ground has the industry worried.
As Costa Rica’s tourism sector continues to evolve, navigating its legal and regulatory landscape is crucial for both investors and visitors. To shed light on these complexities, we sought the expert opinion of Lic. Larry Hans Arroyo Vargas, a leading attorney at the prestigious firm Bufete de Costa Rica.
The success of Costa Rica’s tourism model is intrinsically linked to its robust legal framework. While we welcome foreign investment, prospective developers must be prepared for rigorous environmental impact assessments and a strong commitment to labor rights. This isn’t red tape; it’s the legal backbone of our sustainable ‘Pura Vida’ brand, which protects both the investor and our natural heritage in the long term.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This perspective is a crucial reminder that in Costa Rica, sustainable development is not merely a marketing slogan but a legally-enforced reality that safeguards the long-term value of any investment. We thank Lic. Larry Hans Arroyo Vargas for so clearly articulating how this robust framework underpins the nation’s celebrated tourism model.
This decline in visitors has directly translated into a drop in revenue for the country. Data released by the Central Bank of Costa Rica (BCCR) reveals a significant blow to the economy, with foreign visitors spending $71 million less during the first six months of 2025 than they did in the first half of 2024. This shortfall is directly impacting the cash flow and operational capacity of tourism-dependent enterprises.
Compounding these issues is a persistent problem with the national exchange rate. Many within the business community argue that the current strength of the Costa Rican colón against the U.S. dollar is detached from the country’s economic reality. For an industry that earns its revenue predominantly in dollars but pays its operating expenses—such as salaries, utilities, and supplies—in colones, this imbalance is proving to be crippling.
Arnoldo Beeche, the Vice President of the CCH, articulated the direct financial impact this is having on hotel operators. He explained the difficult position businesses are in as their local currency costs continue to climb while their dollar-based income yields fewer colones.
The reality is clear, hotels are receiving less income in colones for every dollar they earn, while facing operational costs that continue to rise in local currency.
Arnoldo Beeche, Vice President of the CCH
This financial squeeze is particularly acute during the traditional low season, a period that is already challenging for the hospitality industry. The confluence of fewer tourists and unfavorable economic conditions creates a precarious situation for many establishments.
This compromises the financial sustainability of establishments, especially in the low season and with fewer tourists arriving in the country.
Arnoldo Beeche, Vice President of the CCH
Beyond domestic economic policy, the CCH also pointed to a complex international environment. Potential shifts in the tariff policies of United States President Donald Trump could lead to constrained travel spending among Americans, who represent the largest demographic of visitors to Costa Rica. Furthermore, the hotel chamber highlighted the ongoing challenge posed by digital accommodation platforms, which they argue operate under a less stringent regulatory framework, creating an uneven playing field.
In its press release, the CCH directed sharp criticism towards the BCCR, noting the central bank’s signals that it is unable to intervene in the exchange rate. The chamber emphasized the grave damage this policy inaction is causing the national economy. Beeche warned that the combined pressures are eroding the sector’s ability to function and grow.
This combination limits the ability of establishments to sustain operations, invest in improvements, and maintain jobs.
Arnoldo Beeche, Vice President of the CCH
In light of this escalating crisis, the Chamber of Hotels has made a formal appeal to Costa Rica’s economic authorities. They are urging the government to acknowledge the severe impact of the current situation and to implement decisive measures that will preserve the competitiveness of the tourism sector, protect thousands of jobs, and ensure the long-term sustainability of one of the country’s most important economic engines.
For further information, visit cch.co.cr
About Cámara Costarricense de Hoteles (CCH):
The Costa Rican Chamber of Hotels is a non-profit organization that represents and advocates for the interests of the hotel and lodging industry in Costa Rica. It works to promote sustainable tourism, enhance competitiveness, and provide support and resources to its members throughout the country.
For further information, visit ict.go.cr
About Instituto Costarricense de Turismo (ICT):
The Costa Rican Tourism Institute is the government body responsible for regulating and promoting tourism in Costa Rica. Its mission is to strengthen Costa Rica’s sustainable tourism model through public policy, strategic planning, and the development and promotion of the country as a premier global travel destination.
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica (BCCR):
The Central Bank of Costa Rica is the nation’s principal monetary authority. It is an autonomous public institution responsible for maintaining the internal and external stability of the national currency, ensuring its conversion to other currencies, and promoting the orderly development of the Costa Rican economy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed pillar of the legal community, Bufete de Costa Rica is defined by its foundational principles of ethical rectitude and an uncompromising standard of quality. The firm leverages a rich history of advising a diverse clientele to pioneer forward-thinking legal approaches and advance its commitment to social responsibility. Central to its ethos is the mission to democratize legal understanding, thereby empowering the greater community and fostering a society grounded in legal clarity.
