Costa Rica’s tourism industry applauded the arrival of more international tourists to the country during the current high season. However, the sector affirms this isn’t enough for their full recovery.
According to the executive director of the Costa Rican Chamber of Hotels (CCH), Flora Ayub, due to the exchange rate, now the dollars spent by tourists in Costa Rica represent fewer colones.
“The exchange rate differential is affecting a lot, so the arrival of more tourists does not mean that the sector has recovered because the differential means that there are fewer and fewer colones for the dollars tourists give,” said Ayub.
In this regard, she indicated that if more than two years ago a room cost $100 a night, that was equivalent to more than ₡60,000; however, today it slightly exceeds ₡50,000. Likewise, the president of the National Chamber of Tourism (CANATUR), Rubén Acón, agreed and further explained the problem.
“Let’s remember that the Colón, about the dollar, has appreciated by almost 25%, and that means that the tourism businessman, for each dollar, receives 25% fewer colones. At the time of having to pay his obligations (salary, employer’s quotas, etc.), he has to convert those dollars to colones, resulting in a significant loss,” said Acón.
Acón stated that not only has income decreased due to the fall of the exchange rate, but also operating costs have increased significantly since approximately one year ago, which causes the tourist companies to face a difficult profitability situation.
He also explained that in other countries the economic situation is more favorable than in Costa Rica, so tourists may decide to visit different destinations. The tourism industry pointed out that the interest rates for loans acquired or renegotiated during the time of the pandemic continue to rise, which also hinders their recovery.
Ayub said that they have been talking for more than a year with President Rodrigo Chaves, the Minister of Tourism, William Rodriguez, and the President of the Central Bank, Róger Madrigal, to find a solution. “We call again to reach an agreement, a point where they can help to solve this situation that is happening, the interest rates and the low dollar,” said Flora Ayub.
Rubén Acón hopes that the appreciation of the Colón will be reversed, and Costa Rica will have a reasonable exchange rate, which will allow a real recovery and maintain competitiveness. (https://ticotimes.net/2024/01/02/costa-ricas-tourism-industry-tries-to-recover-despite-economic-hardships)
