A bill to promote low-cost flights between Costa Rica and Central America was approved in its first debate by the Legislative Assembly. The bill proposes a reduction in airport fees and charges for flights between Costa Rica and other Central American countries. However, several tourism organizations and airlines have voiced opposition to the bill, arguing it would harm Costa Rica’s air transport sector and foster unfair competition.
Among the groups opposed to the bill are the Costa Rican Airline Association (ALA), the Latin American and Caribbean Air Transport Association (ALTA), and the International Air Transport Association (IATA).
“The industry believes that there are other ways to promote intra-regional traffic, such as reducing rates and charges without tariff caps. To discuss this, we have requested a meeting with the deputy who proposed the law, the deputy heads of faction, and other authorities in Costa Rica to explore alternative solutions,” said Peter Cerdas, IATA Regional VP for the Americas. The Guanacaste Chamber of Tourism Association (CATURGUA) also expressed its concern about the approval of this law.
“We believe that, although the initiative may be well-intentioned, its potential consequences could be extremely detrimental to the tourism sector and the region’s economy,” they stated. CATURGUA emphasized concerns that the proposed reduction in airport fees could harm tourism and the regional economy.
Additionally, they pointed out that the initiative could have a direct negative impact on the revenues of the Costa Rican Tourism Board (ICT), reducing the funds available for promoting the destination in key markets such as North America and Europe. Representatives of the various sectors agree that more dialogue is necessary to address the bill in a comprehensive manner.
They also believe that imposing a limit on airfares, regardless of the amount, could be considered price control, which would limit free competition, reduce the opening of new routes, and affect Costa Rica’s connectivity. President Rodrigo Chaves has warned that he will veto the bill if it advances, citing its potential negative impact on the tourism sector. Therefore, at least 38 votes would be needed for the bill to be signed into law.
The bill will be voted on in the Legislative Assembly next Thursday, barring any unforeseen circumstances. (https://ticotimes.net/2024/10/16/tourism-airlines-oppose-costa-ricas-low-cost-flight-proposal)
