Costa Rica’s Tourism Industry Under Strain as Currency Appreciation Reduces Dollar Value and Raises Travel Costs for International Visitors

Published on November 24, 2025

Costa Rica’s tourism sector is confronting a new challenge as the national currency, the colon, continues to strengthen against the US dollar, reaching ₡498 last week—the lowest dollar exchange level since 2014. This shift is making travel to Costa Rica more expensive for international visitors and posing potential risks to a sector that plays a central role in the country’s economy. Tourism not only supports jobs nationwide but also drives foreign exchange earnings and regional development, making any fluctuation in visitor costs a key concern.

Colon Strength and Market Trends

Throughout 2025, the colon has steadily appreciated, with Friday’s weighted average exchange closing at ₡498.71 after dipping below ₡500 multiple times during the week. Over $20 million in transactions occurred on the Monex market, signaling robust demand for the local currency and sustained downward pressure on the US dollar. The colon’s rise is part of a longer-term trend, having gained nearly 27 percent against the dollar over the past three years, moving from more than ₡640 in mid-2022 to current levels.

Impact on International Travel

A stronger colon means that the value of foreign currencies, particularly the US dollar and euro, stretches less in Costa Rica. This has made hotels, tours, transportation, and dining more expensive for visitors, especially those from the US and Europe who form the bulk of arrivals.

With regional alternatives such as Mexico, Panama, and El Salvador offering lower costs, some travelers are re-evaluating their plans. Even small increases in daily expenses can influence destination choices, and higher costs in Costa Rica could redirect tourism to more budget-friendly locations, affecting overall visitor numbers.

Business and Employment Implications

Tourism is a major employment driver across Costa Rica, from the beaches of Guanacaste to eco-lodges near Monteverde and wildlife reserves in the central highlands. After a strong rebound in 2024, fueled by nature-based activities, volcano visits, and wildlife experiences, the sector now faces a potential slowdown.

Hotels, travel operators, and tour services have reported a decline in bookings in recent months. Businesses earning in dollars but paying local expenses in colons are experiencing thinner profit margins, which could result in reduced services, staff adjustments, or delayed investments. For a sector that employs thousands across the country, even small shifts in revenue can have significant ripple effects.

Central Bank Measures

The Central Bank of Costa Rica has implemented interventions to stabilize the currency, including purchases of dollars to limit excessive appreciation. Despite these efforts, the colon continues to strengthen, supported by steady remittances from abroad, foreign investment, and reduced import needs.

This long-term appreciation has made Costa Rica more expensive in international terms. Tourism operators report lower earnings as costs rise, and some businesses are adjusting pricing strategies or emphasizing value-added experiences to retain visitor interest.

Safety and Security Factors

Alongside economic concerns, rising security challenges have added pressure to the tourism industry. Safety remains a top priority for international travelers, and reports of increased incidents in certain areas may deter visitors. Together with currency-driven price increases, these issues could reduce Costa Rica’s attractiveness as a safe, nature-oriented destination.

Strategies to Maintain Tourism Appeal

To navigate these challenges, industry stakeholders are exploring new approaches. Promoting eco-tourism and adventure experiences, offering packages priced in colons, and emphasizing non-monetary advantages such as sustainability, biodiversity, and cultural authenticity are key strategies. Marketing campaigns increasingly highlight Costa Rica’s unique landscapes, protected wildlife, and outdoor activities as a way to appeal to travelers despite rising costs.

High Season Outlook

The high season starting in December will be a critical test for the tourism sector. If the colon remains strong, visitor numbers may decline, potentially impacting revenues and employment. Maintaining a balance between affordability, safety, and unique experiences will be essential for sustaining the industry’s growth.

Costa Rica’s tourism sector, long recognized for its ecological diversity, adventure opportunities, and scenic landscapes, now faces the dual challenge of currency-driven higher costs and broader global travel considerations. The coming months will determine how effectively the country can maintain its competitiveness and continue to attract international travelers.