By Tico Times
October 7, 2025
Original Article: https://ticotimes.net/2025/10/07/costa-rican-hotels-warn-of-job-risks-amid-drop-in-tourists
Hotels across Costa Rica face mounting pressures as tourist numbers dip and a sluggish dollar exchange rate eats into their earnings. From January to August 2025, air arrivals fell by 2.1 percent compared to the same stretch in 2024, signaling a slowdown in one of our country’s key economic drivers.
This drop ties directly to reduced spending by foreigners. Central Bank figures show that in the first half of 2025, international visitors spent $71 million less than they did a year earlier. The trend has left many hotel operators scrambling to cover costs that keep climbing in local currency.
Arnoldo Beeche, vice president of the Costa Rican Hotel Chamber, points out the harsh math at play. Hotels earn fewer colones for each dollar they bring in, even as expenses like utilities and staff wages rise. This squeeze hits hardest during quieter months when rooms already sit empty.
Beyond the numbers, broader issues compound the strain. U.S. tariffs under President Donald Trump have hiked costs on Costa Rican exports, potentially tightening budgets for American travelers – the largest group heading to the country. These policies could further limit spending on trips abroad, adding uncertainty to an already soft market.
Digital rental platforms present another hurdle. Services like Airbnb operate under lighter rules than traditional hotels, giving them an edge in attracting budget-conscious guests. While new laws since 2021 require these platforms to register and report earnings for taxes, hotel groups argue the playing field remains uneven, allowing short-term rentals to undercut established businesses.
The Hotel Chamber has pressed the Central Bank on the exchange rate, criticizing its hands-off stance. They warn that without action, more operations could falter, leading to cutbacks in upgrades and job losses. Beeche stresses that this mix threatens not just profits but the livelihoods tied to tourism.
Officials in tourism call for steps to bolster competitiveness. They urge the government to address the exchange rate and refine regulations on digital platforms to support sustainable growth. As Costa Rica heads into the final months of 2025, those in tourism hope for a rebound, but current signs point to ongoing challenges.
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