How Competitive Is Costa Rica as a Tourism Destination? - Tecnical Note #15
Costa Rica remains a regional leader in tourism development, but high prices, safety concerns, infrastructure gaps and shorter stays are creating new competitiveness challenges.
Costa Rica ranks 51st among 110 countries in the World Economic Forum’s Travel & Tourism Development Index (TTDI) 2026, with a score of 4.16. The country remains above the global average and ranks second among nine regional competitors, behind only Mexico.
The results confirm several long-standing strengths. Costa Rica ranks 3rd in the world for the priority given to tourism by the State, 6th in tourism demand sustainability, 14th in environmental sustainability, and 20th in natural resources.
However, the 2026 index also highlights important competitiveness gaps.
Costa Rica ranks 86th in price competitiveness, making it the least price-competitive country among the regional competitors analyzed. It also ranks 88th in safety and 74th in ground and port infrastructure.
A destination facing increasing cost pressures
One of the main issues examined by CET is the relationship between tourism competitiveness and the appreciation of the Costa Rican colón.
Between 2022 and September 2026, the average exchange rate fell 28.6%, from ₡648.82 to ₡463.55 per US dollar. Tourism businesses generally earn revenue in dollars while paying a significant share of their operating costs in colones, which creates pressure on margins when the local currency appreciates.
At the same time, tourists are spending more per night in dollar terms while staying for fewer nights.
Costa Rica’s average stay declined from 12.6 nights in 2019 to 10.3 nights in 2025, its lowest level since 2006. The available data do not establish a causal relationship, but CET identifies the exchange rate, infrastructure limitations and safety conditions as factors that may be contributing to this trend.
More accommodation competing for fewer nights
Another significant change is occurring in the accommodation market.
Since 2019, the number of hotel and cabin rooms increased by 13%, while short-term rental listings grew by 118%. CET estimates that the total supply of rooms and bedrooms increased by approximately 66%, from around 102,000 to 169,700, while international tourist arrivals declined by 6.2% between 2019 and 2025.
With shorter stays and a larger accommodation supply, competition among different forms of lodging is increasing, creating additional pressure on rates.
Costa Rica remains strong — but the competitive environment is changing
The TTDI 2026 shows a country with internationally recognized strengths in tourism policy, sustainability and natural resources, but also with significant challenges in prices, safety and infrastructure.
Costa Rica’s TTDI score actually improved compared with 2024. However, the country fell two positions because other destinations improved faster.
Understanding these changes is important for public policy and business decision-making. Competitiveness is not determined only by the number of international arrivals, but also by the conditions under which tourism businesses operate, the visitor experience, the length of stay and the country’s ability to compete for travelers in an increasingly demanding international market.
Read the full Technical Note 15-2026:Tourism: How Competitive Is Costa Rica According to the World Economic Forum?
Centro de Estudios del Turismo (CET) — September 2026
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