As we all know Costa Rican economy is suffering especially in the area of tourism. Costa Rica is currently sitting at a historic high 24% unemployment rate which has left hundreds of thousands of people without work and without a means to take care of their families.

As of Aug 1st Costa Rica has reopened it’s doors to select countries in an attempt to “Reactivate” tourism and for obvious COVID reasons have chosen not to include the USA in the approved list of countries. Unfortunately the United States is the largest tourism contributor for Costa Rica in terms of volume and without the support of our friends to the North the outlook isn’t very bright. Based on unofficial numbers so far this month hasn’t been much of a success based on all of the obstacles that needed to be overcome from high insurance quotes to an almost complete restriction of driving for most of the month.

The government has passed a new Law that they believe will help with tourism in general. Effective immediately all business registered with the ICT (Regulating Body for Tourism in Costa Rica) will be exempt from collecting or paying the 13% IVA tax for the next 2 years. The Third year will be collected s4% IVA and the 5th at a 8% IVA. This includes all Hotels, Car rentals, Tours etc.