High fuel prices affect tourism entrepreneurs in Costa Rica

The constant increase in fuel prices in Costa Rica, due to dependence on the world oil market, which in addition to the Covid-19 pandemic has suffered the effects of the war between Russia and Ukraine, is having a negative impact on the country’s tourism industry.

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Costa Rican tourism entrepreneurs have stated through the different national media that the rise in fuel has raised the prices of plane tickets, which is why foreign visits have been reduced.

The high prices of hydrocarbons, which this week already exceed 1,000 colones per liter, also prevent local tourism from being revitalized, since the Costa Rican population is forced to stay in their homes to save fuel.

The price of gasoline in Costa Rica also causes a domino effect on goods and services.

“It is true that we do not have any type of control over these changes, however, it is something that does not stop worrying us as a sector, given the repercussions that it can have on the level of competitiveness of the destination (…) It should be remembered that tourism is a highly sensitive and vulnerable activity to international events and highly chained, therefore, it is likely that variations in fuel prices will affect the cost structures of companies in the sector”, explained Shirley Calvo, executive director of the Chamber of Tourism to local media.

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The Costa Rican Chamber of Hotels (CCH) reported that occupancy in accommodation reaches only 25%, so they recommend making promotions and discounts to encourage the economic reactivation of the country.

According to the Chamber of Industries, the price of super gasoline increased 48% more compared to December 2020, regular 51% and Diesel 59%.

“Because fuel increases the cost of goods in the basic basket and services such as buses and electricity, there should be a reduction in taxes associated with gasoline. Likewise, Aresep’s tariff formula must be changed and, of course, a real and serious discussion about Recope and its monopoly must be given, since families no longer tend to cut more expenses,” said Erick Ulate, president of Consumidores de Costa Rica.