In a recent development at the Costa Rican Legislative Assembly, deputies of the governing party have effectively blocked an initiative aimed at reducing the cost of flights to Central America and the Dominican Republic. The Social Democratic Progress Party (PPSD), led by Congresswoman Pilar Cisneros, filed 63 substantive motions against the bill on Monday, significantly impeding its progress.
The bill, proposed by Eli Feinzaig of the Liberal Progressive Party (PLP), seeks to facilitate regional travel with round-trip fares of less than $126. Feinzaig argues that the measure would benefit small and medium-sized enterprises (SMEs) by allowing them to explore markets and services in the region, while also boosting tourism.
Under the proposed legislation, for flights from Costa Rica to Belize, El Salvador, Guatemala, Honduras, Nicaragua, and Panama, the departure tax would be reduced from $27 to $14. This reduction would apply if the ticket cost does not exceed $80 before taxes for round-trip travel, or $40 for one-way travel. Additionally, the bill stipulates that the total taxes and airport fees charged to travelers must not exceed $23 in each country.
However, the government has expressed reservations about the bill. Laura Fernández, Minister of the Presidency, stated that the government prefers the text to be discussed in the Tourism Commission rather than being fast-tracked through the plenary. Fernández raised concerns that low-cost flights might tempt tourists, who currently spend an average of 13 days in Costa Rica, to shorten their stay in favor of visiting other regions.
Tourism Minister William Rodriguez echoed these concerns, warning that the proposed changes could negatively impact numerous families and communities that rely on tourism for their livelihood. Rodriguez also highlighted potential financial implications, stating that the plan would reduce the State Treasury’s income by more than ₡2,000 million and similarly decrease the Costa Rican Tourism Institute’s (ICT) revenue. This reduction, he argued, could hinder the country’s tourism promotion efforts abroad.
In response to the government’s position, lawmaker Eli Feinzaig expressed his disapproval and frustration. “It suggests that they did not read the proposed text. All the arguments they presented are false and appear to be made up with the sole purpose of obstructing this project,” Feinzaig stated.
Congresswoman Cisneros defended her party’s actions, explaining that the motions were intended to force a negotiation to return the bill to committee. She noted that since a fast-track procedure was approved in the plenary, there was no opportunity to hear from the involved parties.
This legislative impasse highlights the complex balancing act between promoting regional connectivity and protecting domestic tourism interests. As the debate continues, it remains to be seen whether a compromise can be reached those addresses both the potential benefits of cheaper regional travel and the concerns raised by government officials about its impact on Costa Rica’s tourism sector. (https://ticotimes.net/2024/08/13/costa-rican-government-halts-regional-travel-bill)
