Tourism Crisis in Costa Rica: Thousands of Jobs Lost, What’s Really Behind the Drop?

Published on November 23, 2025

With almost 22,000 jobs lost in the last year alone, Costa Rica’s tourism sector has suffered greatly in 2025. The industry is deeply concerned about this sharp decline, especially in rural and coastal areas. Once-thriving hotels and service companies are now reporting severe downturns that have led to forced layoffs and closures. The long-term sustainability of the tourism sector and the nation’s financial stability are being called into question by this downturn.

The Downturn in Employment and Tourist Arrivals

Data from the third quarter of 2025 paints a grim picture for Costa Rica’s tourism industry. Employment in the sector has dropped from 189,093 jobs in 2024 to 166,923 by the end of the year, marking a loss of over 22,000 positions. The decline in tourism jobs has not been limited to just the big cities but has also deeply affected rural and coastal areas where tourism plays a central role in the local economy.

Tourist arrivals have also seen a decline of 1.8% through October compared to the previous year. From January to July of 2025, Costa Rica saw 50,000 fewer international visitors than in the same period in 2024. This drop has had a ripple effect throughout the country, as local businesses that once depended on a steady stream of tourists now find themselves struggling to stay afloat.

The Economic Impact on Local Communities

In regions such as Guanacaste and the Central Pacific, the tourism downturn is deeply felt. These areas have long relied on visitors for income, with local guides, restaurant staff, and transport workers among the first to experience job cuts. The downturn has left many families without a reliable source of income, leading to increased economic strain.

Hotels in these areas report a significant decrease in bookings for 2025, which is a cause for concern. If these trends continue, further layoffs and business closures are expected, which could exacerbate the economic struggles in these regions.

Contributing Factors to the Decline

The reasons behind the decline in Costa Rica’s tourism industry are multifaceted. One key factor has been a reduction in spending by international visitors. In the first half of 2025, tourists spent $71 million less than in the same period the previous year. A stronger Costa Rican colón against the US dollar has also made it more difficult for businesses that rely on foreign currency to remain profitable. In places like Quepos and Nosara, operators report a staggering 20% drop in tourism-related work since late 2024.

Another contributing factor to the decline has been rising security concerns in some popular tourist destinations. Increased crime in areas that were once considered safe has caused hesitation among travellers, particularly those from the United States, which historically has been Costa Rica’s largest source of international visitors. While European tourists have maintained their interest, the overall drop in North American visitors has had a notable impact on the industry.

The Government’s Response and Proposed Solutions

Government officials and industry leaders are calling for urgent action to address the crisis. Several proposals have been put forward to help revive the tourism sector. These include improving infrastructure, such as better roads and transportation networks, increasing safety measures to reassure tourists, and ramping up marketing efforts to attract new visitors and investment.

Furthermore, the government is working to strengthen partnerships with airlines to expand flight routes from key international markets. The aim is to encourage more visitors to return to Costa Rica by making it easier and more affordable to reach the country. Despite these efforts, however, recovery is far from guaranteed and requires quick action to restore the confidence of both tourists and business owners alike.

Tourism’s Role in Costa Rica’s Economy

Tourism is one of the most important sectors of Costa Rica’s economy, supporting more than 200,000 jobs across the country. Many of these positions are in remote areas, where tourism is often the primary source of income. Without a quick recovery, these communities risk falling deeper into poverty, with many people potentially migrating to urban centres in search of better opportunities.

The crisis has also raised broader questions about the sustainability of Costa Rica’s ecotourism model. The country has long been known for its natural beauty, rich biodiversity, and adventure tourism offerings. However, as the industry faces increasing challenges, it is now up to government leaders and business owners to find new ways to protect the country’s tourism edge while ensuring that it remains a safe and attractive destination for global travellers.

Looking Ahead: Will Costa Rica’s Tourism Rebound?

As the high season approaches, there is still hope that the decline in tourism can be reversed. However, this will require swift and decisive action from both the public and private sectors. Business groups are warning that if the downturn continues, tourist arrivals could fall by as much as 15 to 20 per cent by the end of 2025, deepening the crisis for local communities that rely on tourism.

In the coming months, all eyes will be on Costa Rica to see whether the industry can recover from its current slump. The country’s leaders are hopeful that with the right measures in place, tourism can bounce back. However, the path to recovery will be a challenging one, requiring the country to adapt quickly to changing global travel patterns and to address internal issues that have contributed to the crisis.

The Future of Costa Rica’s Tourism Industry

The decline in tourism in Costa Rica poses a serious problem for entire communities that rely on tourism for their livelihoods as well as for companies in the sector. It is unclear if the government’s efforts to revitalise the industry will be sufficient to stop the decline.

Meanwhile, the industry’s future depends on striking a careful balance between restoring traveller confidence, enhancing infrastructure and safety, and being able to adjust to the changing global tourism scene. Whether Costa Rica’s tourism industry can rebound or whether the nation needs to reconsider its entire tourism model going forward will be determined in the upcoming months.