Costa Rica Struggles to Maintain Its Reputation as a Premier Tourist Destination Amid Rising Security, Health, and Economic Challenges Threatening the Industry

Published on December 9, 2025

Costa Rica’s reputation as a leading global travel destination is now under serious threat due to a combination of escalating security issues, alarming health advisories, and mounting economic pressures. The U.S. Embassy’s recent warnings about rising crime rates targeting foreigners, coupled with health risks linked to contaminated food products and pesticide exposure, have raised concerns among international visitors. Additionally, the strengthening of the Costa Rican colón against the U.S. dollar has made the country significantly more expensive for tourists, further dampening its competitive edge in the region. As these factors converge, Costa Rica’s once-solid status as a safe, affordable, and attractive destination faces a challenging road to recovery.

As Costa Rica enters its peak tourism season, the country’s longstanding reputation as a peaceful and scenic destination is being tested. A mix of rising security concerns, alarming health advisories, and economic challenges is placing pressure on the tourism sector and raising concerns among travelers and industry professionals alike.

Security Concerns Raise Red Flags

On November 25, 2025, the U.S. Embassy in San José issued a high-profile security alert, warning American tourists about a noticeable uptick in crimes targeting foreigners. These incidents range from break-ins and armed robberies to property crimes, financial fraud, and extortion schemes. Costa Rica, which has long been seen as a haven of safety for travelers, is currently under a Level 2 travel advisory, urging visitors to “exercise increased caution.” However, the continued warnings are starting to tarnish the country’s image and contribute to growing concerns that international tourism will decline. With the country’s tourism operators already worried about potential decreases in bookings, the security situation is threatening to disrupt what should have been a flourishing high season.

Health Alerts Add to the Worries

On December 8, 2025, the U.S. Embassy in San José also issued a health alert after Walmart Costa Rica announced the voluntary recall of Don Cristóbal brand tilapia and pangasius frozen fillets due to potential contamination with Listeria monocytogenes. The recall affects multiple batches of fish products sold in popular supermarkets like Mas x Menos and MaxiPali. This came just days after another health advisory about aluminum phosphide poisoning, a pesticide-related health risk that has already resulted in several reported cases. These combined health alerts further deepen the unease among travelers, especially as food safety becomes an increasing concern.

Economic Strain Exacerbates the Situation

While the rising security and health alerts are problematic enough, Costa Rica is also grappling with economic challenges that are impacting its tourism sector. The country’s currency, the colón, has strengthened significantly against the U.S. dollar, reaching its highest value since 2005 and trading at around ₡488–₡490. While this benefits importers and savers in Costa Rica, it has made the country more expensive for foreign tourists. Prices have surged, particularly in popular tourist destinations, making it difficult for smaller businesses to compete with regional destinations like Mexico, the Dominican Republic, and Panama. According to the National Chamber of Tourism (CANATUR), the country’s competitiveness is on the decline, with a 2.1% decrease in air arrivals from January to August 2025 compared to the same period last year. For travelers, the weaker dollar means they are getting less value for their money, making Costa Rica a less attractive option compared to other nearby destinations.

Tourism Sector Faces Uncertainty

Tourism is a vital component of Costa Rica’s economy, contributing significantly to its GDP and employment. In 2024, nearly 2.9 million international visitors arrived in Costa Rica, with U.S. tourists accounting for a large portion of that number. Yet, as the country faces a combination of security concerns, health advisories, and unfavorable economic conditions, the outlook for the tourism sector in 2025 is increasingly uncertain. Costa Rica’s natural beauty, including its lush rainforests, active volcanoes, and pristine beaches, has long been a significant draw for travelers. However, these emerging challenges threaten to erode the very foundation of Costa Rica’s tourism industry, potentially diminishing its appeal to both international visitors and travel agencies that rely on consistent traffic.

Resilience Amidst Adversity

In response to these challenges, Costa Rican authorities are taking proactive measures to address the growing security concerns. Enhanced police patrols in high-traffic tourist areas and improved property security are among the steps being implemented to restore traveler confidence. However, experts agree that a more comprehensive approach is needed for Costa Rica to recover fully. Long-term strategies that tackle both security and economic issues must be prioritized in order to stabilize the country’s tourism sector and restore its reputation as a safe and affordable destination.

For those still planning to visit Costa Rica, experts suggest taking extra precautions to ensure a smooth trip. Researching accommodations and booking through trusted platforms, enrolling in the Smart Traveler Enrollment Program (STEP), staying vigilant in public areas, and preparing for potential price increases due to the exchange rate are essential steps for mitigating risks. Despite the significant challenges, Costa Rica’s resilience and natural charm continue to offer hope for a recovery in the coming months.

Costa Rica’s status as a top global travel destination is under threat due to rising security concerns, health risks, and economic pressures. The combination of crime warnings, health advisories, and a stronger local currency is undermining its appeal to international visitors.

Looking to the Future

Costa Rica’s tourism industry is facing a crossroads. The country’s iconic landscapes, rich biodiversity, and welcoming culture continue to hold the promise of attracting visitors, but the current state of security and economic stability requires immediate attention. If authorities can work together to address these multifaceted issues and rebuild Costa Rica’s reputation as a top-tier tourism destination, there is still a strong potential for the country to regain its standing as a beloved travel spot. However, success will depend on how effectively the country responds to the evolving situation and the long-term solutions it implements for future growth.

With the peak season ahead, Costa Rica must act swiftly to reassure travelers that their safety and well-being remain a top priority. By focusing on enhancing security, addressing health risks, and stabilizing the economy, Costa Rica has the potential to overcome these challenges and continue to be a sought-after destination for travelers from around the world.