Like Trinidad and Tobago and Bahamas, Costa Rica Tourism Struggles as Crime Waves, Currency Depreciation, and Bad Publicity Looming Travel Industry, What You Need To Know

Written By: Tuhin Sarkar

Tuhin Sarkar

Tuhin Sarkar is a Senior Journalist at Travel and Tour World with more than 10 years of experience in travel and tourism journalism. A post-graduate in Journalism and Mass Communication from Jadavpur University, he combines strong research, industry knowledge and storytelling expertise to produce engaging, insightful and impactful travel news and fascinating feature stories.

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April 7, 2025 1:21 AM

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Like Trinidad and Tobago and the Bahamas, Costa Rica tourism is grappling with a series of challenges that threaten its appeal as a top travel destination. Costa Rica tourism, once thriving due to its rich biodiversity and eco-friendly offerings, is now facing a rise in crime waves, which have contributed to growing concerns over safety for travelers. High-profile incidents in Costa Rica travel news, including violent crimes linked to gang activity, have tarnished the country’s once-pristine reputation.

In addition to crime, Costa Rica’s currency depreciation has made the country less affordable for international tourists. The Costa Rican colon’s stagnant exchange rate against the US dollar has made travelers reconsider their options in Central America, as neighboring countries offer more value for money. This depreciation, coupled with negative publicity, has caused Costa Rica tourism to decline. For Costa Rica to recover, it will need to address these issues to maintain its position as a top travel destination.

 
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Costa Rica, once a shining jewel in the Central American tourism crown, is facing an unprecedented crisis. For years, the country’s economy relied heavily on tourism, which surpassed coffee as the nation’s most important economic driver back in 1999. Yet now, the golden goose is struggling, bruised and battered by rising crime, a stagnant exchange rate, and a wave of bad publicity. As Costa Rica stumbles, travelers are starting to look elsewhere, and locals are bearing the brunt of the fallout.

Costa Rica’s charm—lush rainforests, abundant wildlife, pristine beaches, and a reputation for eco-tourism—has drawn millions of tourists each year. In 2023 alone, the country welcomed over 3 million international visitors. However, the news in recent months has painted a different picture. The tragic death of the son of a well-known former baseball player due to violence linked to gang activity brought global attention to the country’s security issues. The delay in the autopsy, explained by the backlog created by the surge in homicides tied to the ongoing gang wars, shocked tourists and locals alike.

Costa Rica Tourism: A Paradise Facing New Challenges

Costa Rica, a country renowned for its stunning landscapes, vibrant biodiversity, and eco-tourism initiatives, has long been a top destination for travelers seeking a natural paradise. From pristine beaches along both the Pacific and Caribbean coasts to lush rainforests, towering volcanoes, and abundant wildlife, Costa Rica offers an experience that combines adventure, relaxation, and environmental preservation. However, despite its rich natural resources and tourism infrastructure, Costa Rica’s tourism sector faces new challenges that threaten to undermine its success.

 
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A World-Class Destination with Unique Offerings

Tourism became Costa Rica’s leading economic sector in the late 1990s, surpassing coffee as the country’s top revenue generator. The country’s commitment to sustainability and eco-tourism has played a key role in its appeal to international visitors. Costa Rica is home to over 5% of the world’s biodiversity, making it a haven for nature lovers and wildlife enthusiasts. National parks such as Manuel Antonio, Corcovado, and Tortuguero offer visitors close encounters with wildlife, including sloths, monkeys, and sea turtles, in some of the world’s most pristine environments.

Beyond wildlife, Costa Rica’s natural beauty includes lush tropical rainforests, pristine beaches, and spectacular volcanoes like Arenal, one of the most iconic in the country. Adventurers flock to Costa Rica for activities such as zip-lining, surfing, white-water rafting, hiking, and exploring its extensive network of protected areas. The country has earned a reputation for being a global leader in sustainable tourism practices, with a focus on maintaining its biodiversity while also providing exceptional experiences for travelers.

Challenges to Costa Rica’s Tourism Sector

While Costa Rica’s tourism sector has flourished, recent years have presented new obstacles. Rising crime rates, especially linked to gang violence and drug wars, have created concerns for tourists and locals alike. Incidents of violence in certain areas have made headlines, leading to negative perceptions of the country’s safety. High-profile events, such as the tragic death of a former baseball player’s son, which was linked to delayed autopsy reports due to overwhelmed police resources, have further fueled concerns about security.

 
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Another pressing issue is Costa Rica’s stagnant exchange rate. The country’s currency, the colon, has been trading at an unfavorable rate against the U.S. dollar, which has caused some U.S. tourists to rethink their travel plans. Compared to neighboring Central American countries, Costa Rica has become increasingly expensive, which, combined with inflation, has led travelers to explore more affordable destinations.

Additionally, the rapid rise of short-term rental platforms like Airbnb has contributed to the housing crisis in popular tourist areas. Local residents find themselves being priced out of their homes as property owners shift to more lucrative short-term rentals for tourists. The growing imbalance between tourism and local living conditions is a source of tension, resulting in protests in various cities across the country.

Hope for the Future: Sustainability and Resilience

Despite these challenges, Costa Rica’s tourism sector remains resilient. The country still boasts world-class infrastructure for tourism, including well-trained guides and an established reputation for hospitality. Its commitment to sustainable tourism practices has placed it at the forefront of eco-tourism worldwide, and the country’s future remains promising if these principles continue to drive growth.

As Costa Rica adapts to the evolving demands of travelers, addressing safety concerns, improving affordability, and balancing the needs of local communities will be critical in maintaining its status as one of the world’s most sought-after travel destinations. With its unmatched natural beauty and dedication to preserving the environment, Costa Rica has the potential to overcome its current struggles and continue being a beacon of sustainable tourism for years to come.

 
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Bad Publicity: A Crisis in the Making

In today’s hyper-connected world, a single piece of bad news can go viral in minutes, and Costa Rica has unfortunately become the focus of negative press. When a gang-related homicide makes international headlines, the damage to Costa Rica’s image is immediate and substantial. While PT Barnum famously said that “all publicity is good publicity,” today’s digital age proves otherwise. Bad news travels faster than ever, and once Costa Rica’s reputation is tarnished, it becomes hard to recover.

Locals, too, are feeling the impact of crime and insecurity. With an understaffed and undertrained police force and a judicial system that seems more lenient toward violent offenders, residents feel increasingly unsafe. Every Costa Rican I know has either been a victim of crime or knows someone who has. For foreign visitors, this uptick in violence makes Costa Rica feel less like a peaceful paradise and more like a place to avoid. The country’s tourism industry, which has provided jobs for thousands of Ticos, is struggling to keep its reputation intact.

The Currency Crisis: Exchange Rate Woes Add to the Pain

As if the rising crime wasn’t enough, Costa Rica’s currency woes are compounding the problem. The exchange rate between the Costa Rican colon and the U.S. dollar has been stuck at around 500 colons to the dollar, the same rate it was over a decade ago. This stagnant exchange rate, combined with inflation, has made Costa Rica less appealing for U.S. tourists. Countries like Nicaragua and Panama are offering better value for money, with attractive beaches, abundant wildlife, and lower costs for travelers.

While inflation remains relatively low, Costa Rican tourism is being hit by the continued depreciation of the colon. Many visitors are finding that their dollars don’t stretch as far as they used to, leading them to reconsider their vacation destinations. As the world recovers from the pandemic, tourists have more options, and Costa Rica is increasingly being viewed as an expensive and less viable option compared to its neighbors in Central America.

A Populist President, But No Concrete Solutions

Costa Rica’s current political landscape adds another layer of complexity to the nation’s tourism crisis. The president, a populist figure with a dedicated cult-like following, has largely turned a blind eye to the country’s economic challenges. Instead of addressing the root causes of Costa Rica’s downturn, he often deflects questions about the low exchange rate, claiming that inflation numbers are under control. However, his lack of actionable solutions is leaving citizens and the tourism industry feeling abandoned.

Tourism professionals are frustrated by the lack of leadership and concern from the government. As the country’s most valuable industry faces a significant downturn, there seems to be little urgency on the part of political leaders to offer concrete solutions. Rather than working to attract tourists back to the country, the president has chosen to attack his political opponents and the media, further alienating the public and international investors.

Costa Rica’s Tourism Infrastructure: A Shining Hope Amid the Darkness

Despite the grim outlook, there are reasons to believe that Costa Rica’s tourism sector can recover. The country still has a superior tourism infrastructure compared to many of its neighbors. Its well-established network of expert tour guides, eco-friendly accommodations, and world-class natural parks continues to draw visitors. Costa Rica’s commitment to sustainability and its position as a leader in eco-tourism are still attractive selling points for those seeking an authentic, nature-filled vacation.

The country’s tourism professionals remain resilient, working hard to overcome the challenges posed by a combination of rising crime, an unfavorable exchange rate, and the bad press. Costa Rica’s government, despite its shortcomings, has continued to invest in tourism infrastructure, and the country still boasts some of the most sought-after destinations in the world, including Manuel Antonio National Park, Arenal Volcano, and the Osa Peninsula.

A Long Road to Recovery

There is no denying that Costa Rica is facing a difficult period. The combination of growing crime, a stagnant currency, and negative publicity has dealt a heavy blow to the country’s tourism industry. Yet, Costa Rica has faced challenges before and emerged stronger. From the 1991 hotel pool electrocution incident to various high-profile crimes, the country has always managed to recover from setbacks. Whether it’s the country’s stunning natural beauty, its rich biodiversity, or its tourism infrastructure, Costa Rica has too much to offer for tourists to write it off completely.

One thing is certain: Costa Rica cannot afford to continue ignoring the problems at hand. It must tackle its security issues head-on, work to stabilize its currency, and promote a more positive image internationally. The government must invest in education, training for law enforcement, and work with local communities to address the growing crime wave. At the same time, Costa Rica must reconsider its reliance on tourism as its primary economic driver and diversify its economy to reduce vulnerability to future shocks.

Costa Rica’s future as a tourism powerhouse hangs in the balance. As the country grapples with a combination of crime, an unfavorable exchange rate, and bad press, its once-untarnished reputation is showing signs of wear. However, Costa Rica has survived difficult times before, and there is hope that with concerted effort and a change in leadership, the country can bounce back and reclaim its status as a leading travel destination. But the road to recovery will not be easy, and it will require a unified effort from the government, local communities, and the tourism industry. Only time will tell if Costa Rica can weather this storm and emerge stronger than ever.

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