Protecting employment and the competitiveness of Costa Rica as a tourist destination is what the tourism sector is asking the deputies about the bill that would allow round-trip travel to any destination in Central America for less than $126.
The future of this initiative will be decided today in an extraordinary session in the Plenary, where the legislators will discuss the presidential veto of Rodrigo Chaves. If the legislators, led by Eliécer Feinzaig, of the Progressive Liberal Party, add 38 votes, the project will be final.
The hypothesis is that tourists could make internal transfers in the region very quickly and at an affordable price, which means that they will not necessarily stay in Costa Rica for one or two weeks, but could stay a couple of days in national territory and then fly to Guatemala, Honduras, Belize, El Salvador or the Dominican Republic.
The effects on the tourism sector would be disastrous, as they would have an impact on the local economy, the tourism industry and thousands of jobs, say businessmen.
Concern about the exchange rate
“Added to this, there is the concern about the exchange rate. Costa Rica, being in a partially dollarized economy, faces an exchange rate that is not favorable compared to some neighboring countries, which makes the prices in our tourist offer higher compared to countries such as Panama, Nicaragua and Guatemala. This disparity in the prices of tourist services, added to lower airfares between countries in the region, could lead travelers to choose other cheaper destinations, affecting our industry more deeply,” said Christian Doñas, president of Proimagen Costa Rica.
On the other hand, businessmen in the sector affirm that the decrease in tourist flows not only directly affects tourist companies, but also has a multiplier effect on other sectors linked to tourism, such as agriculture, commerce, financial services, construction and transportation.
Likewise, airline businessmen assured that this regulation on fares would limit competition and affect connectivity. “The correct approach to promote low-cost flights and improve connectivity should focus on the elimination or reduction of fees and taxes on airline tickets, which would allow greater competition and broader access to low-cost fares without affecting the sustainability of the sector,” said the Airline Association.
Allow competition to develop freely
In this sense, the best way to benefit passengers is to allow competition to develop freely. “Instead of imposing price restrictions, the operating and tax costs faced by airlines should be reduced, which will translate into more affordable prices,” added the industry spokesmen.
