Bill in Congress to Tax Tourists in Costa Rica (2019)

Overview of the Costa Rica Tourist Tax Bill

Two separate legislative initiatives were introduced in Costa Rica’s Congress with the stated intention of imposing additional taxes on tourists and introducing new entry-related requirements. One bill was presented by Shirley Díaz of the PUSC, while the other was submitted by Paola Vega of the PAC.

The Costa Rica tourist tax bill proposed charging an additional USD $15 per tourist. The stated purpose of this tax was to fund eminent domain projects aimed at expanding national parks and wildlife refuges throughout the country.

Purpose Behind the Proposed Tourist Tax

The Costa Rican government has been actively implementing eminent domain processes to acquire private lands for conservation purposes. These acquisitions are intended to increase the size and scope of protected areas and wildlife refuges across the country.

In 2017, the government acquired more than 20,000 acres of land for national parks and protected areas, including:

• Volcán Tenorio

• Volcán Turrialba

• Volcán Irazú

• Juan Castro Blanco Conservation Area

• Iguanita Wildlife Refuge

• Nicolas Wessberg Protected Area

From an environmental perspective, expanding protected land aligns with Costa Rica’s long-standing conservation policies. Economically, ecotourism represents approximately 4.9% of Costa Rica’s GDP, underscoring its importance to the national economy.

Industry Reaction to the Costa Rica Tourist Tax Bill

Despite the environmental rationale, key stakeholders within the tourism sector expressed concerns about the potential impact of the proposed tax. Both the Costa Rican Chamber of Tourism and the ICT publicly indicated that increasing costs for visitors could negatively affect the industry.

Costa Rica already ranks among the most expensive destinations in Central America. When combined with infrastructure challenges—particularly when compared to neighboring countries such as Panama—the introduction of additional taxes could discourage tourism and redirect travelers elsewhere.

Additional Entry Requirements for Tourists

Beyond the proposed tax, both bills included an additional requirement for arriving tourists. Travelers would be required to demonstrate financial solvency by showing:

• USD $500 in cash, or

• Proof of funds through a bank statement

This proposed requirement would apply upon entry and was intended to demonstrate the tourist’s ability to cover travel expenses while in Costa Rica.

Critics of the measure argued that the added financial requirement, combined with increased travel costs, could further reduce Costa Rica’s competitiveness as a regional destination.

What Does “A Bill in Congress” Mean?

Understanding the Legislative Process

A bill in Congress is not a law. It is a proposed piece of legislation that must undergo debate, voting, and approval before becoming legally binding. Confusion often arises when proposed bills are mistakenly treated as enacted laws.

In the case of the Costa Rica tourist tax bill:

• The proposal had two legislative sponsors

• Approval would require at least a simple majority vote

• As of the time of discussion, the bill had not been approved

• There was no indication of strong congressional support to move it forward

Accordingly, the proposed tax and additional entry requirements were not in effect and remained purely legislative proposals.

Current Status of the Costa Rica Tourist Tax Bill

At the time of writing, Congress did not appear inclined to approve the Costa Rica tourist tax bill. While legislative initiatives of this nature periodically arise, only those that successfully pass through the full legislative process become enforceable law.

For foreign nationals and travelers, it is important to distinguish between proposed legislation and enacted regulations when evaluating entry requirements and travel costs.