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Costa Rica Loses Tourism Momentum as Mexico and Guatemala Attract More Travelers

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Costa Rica closed 2025 with just 1% growth in tourist arrivals, lagging regional rivals. Higher costs, infrastructure limits, safety perceptions, and a strong currency deterred visitors, while Mexico and Guatemala gained travelers through lower prices, broader attractions, aggressive marketing, and expanding air connectivity from North America and Europe, markets worldwide.

Costa Rica’s tourism sector ended 2025 with a modest 1% increase in international visitor arrivals, a figure that industry officials describe as a weak performance compared with regional rivals such as Mexico and Guatemala, which reported significantly stronger growth in the same period.

Tourism Data and Main Source Markets

According to the Costa Rican Tourism Institute (ICT), about 2.68 million visitors arrived by air in 2025, up just 1 % from the previous year. Data for most of 2025 had shown declines or very slow recovery in earlier months, particularly in the first three quarters.

Historically the United States and Canada account for the largest share of visitors — roughly half of total tourism inflows — followed by Europe and other regions. North American arrivals dipped earlier in 2025, with some reports suggesting challenges in flight connectivity and broader economic uncertainty contributed to weakened demand.

Why Costa Rica Is Losing Competitive Ground

Industry analysts and business groups point to several structural and market factors that are dampening Costa Rica’s tourism growth relative to its neighbors:

1. Higher Relative Costs and Price Sensitivity

Costa Rica has higher travel and on-the-ground costs than many competitors in Latin America. Its emphasis on premium eco-tourism, while attractive to some segments, translates into a pricier experience for broader traveler demographics. The appreciation of the Costa Rican colón has also reduced the purchasing power of foreign tourists, effectively making the destination more expensive than Mexico or Guatemala for the same travel budgets.

2. Infrastructure Constraints

Costa Rica’s ground and transport infrastructure has been flagged in multiple studies as a persistent challenge. Poor road quality and limited public transport options make some destinations harder to reach than in competing countries with more developed networks.

3. Perceptions of Safety

Although Costa Rica remains comparatively safer than many regional alternatives, public reports and local media coverage of petty crime and tourist-targeted offences have influenced traveler perceptions — particularly among North American visitors who prioritize safety. These concerns were highlighted in reports showing tourism declines in the year’s first months.

4. Shifting Global Travel Preferences

Post-pandemic travel behaviour has continued to evolve. Many tourists seek diverse experiences — including cultural heritage, urban tourism, archaeological sites, and lower-cost beach vacations — which destinations like Mexico and Guatemala actively market. Mexico’s growth of ~6% in 2025 was driven in part by its broad itinerary options, from Caribbean beaches to colonial cities. Guatemala, for its part, is promoting major historical and ecological attractions that appeal to niche segments like archaeological and adventure travelers.

Regional and Broader Industry Trends

Costa Rica’s slower growth comes amid a broader regional shift in tourism. Some Caribbean destinations, including Costa Rica, reported declines or stagnation in U.S. arrivals across parts of 2025 — a pattern linked to rising travel costs, inflationary pressure, and changing consumer preferences. Canada’s outbound travel to Caribbean and Latin American destinations has also softened in 2025, affecting countries that traditionally rely on that market.

Despite these headwinds, Costa Rica continues to attract millions internationally, and late-season data for late 2025 showed stronger month-to-month growth, hinting at a potential rebound if strategic adjustments are made.

What Industry Leaders Are Saying

The National Chamber of Tourism (CANATUR) has urged policymakers and private stakeholders to pursue more aggressive marketing in high-potential markets, invest in infrastructure improvements, and enhance cost competitiveness to safeguard tourism’s role in the national economy.

Costa Rica remains one of Latin America’s most recognizable tourism brands thanks to its biodiversity, protected parks, and eco-experience reputation — assets that, if paired with sustained investments and strategic repositioning, could help it regain momentum in an increasingly competitive global tourism landscape.

About the author

Juergen T Steinmetz

Juergen Thomas Steinmetz has continuously worked in the travel and tourism industry since he was a teenager in Germany (1977).
He founded eTurboNews in 1999 as the first online newsletter for the global travel tourism industry.

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