Costa Rica’s hotel industry has experienced fluctuating performance trends, with high-end resorts outperforming other segments, influenced by a shift in traveler demographics and a reliance on American tourists.

Over the past five years, Costa Rica’s hotel industry has mirrored trends observed in other leisure destinations popular with American tourists. High-end hotels and resort areas have shown robust performance, while mid-range and budget accommodations have experienced stagnation. This pattern is consistent with global trends, where luxury hotels are outpacing their lower-end counterparts in terms of growth.

Comparison with the Caribbean

Before the pandemic, Costa Rica’s hotel performance closely resembled that of the Caribbean, with similar growth patterns in occupancy and average daily rate (ADR). This trend continued into the initial post-pandemic recovery, with both regions stabilizing in occupancy by 2023. However, a divergence occurred in ADR trends. While the Caribbean reached record-high ADRs, Costa Rica saw a decline from its 2023 peak. This difference is partly due to the Caribbean’s higher proportion of luxury hotels, which have driven its ADR growth.

Impact of Traveler Demographics

The composition of international travelers to Costa

Costa Rica’s hotel industry has experienced fluctuating performance trends, with high-end resorts outperforming other segments, influenced by a shift in traveler demographics and a reliance on American tourists.

Over the past five years, Costa Rica’s hotel industry has mirrored trends observed in other leisure destinations popular with American tourists. High-end hotels and resort areas have shown robust performance, while mid-range and budget accommodations have experienced stagnation. This pattern is consistent with global trends, where luxury hotels are outpacing their lower-end counterparts in terms of growth.

Comparison with the Caribbean

Before the pandemic, Costa Rica’s hotel performance closely resembled that of the Caribbean, with similar growth patterns in occupancy and average daily rate (ADR). This trend continued into the initial post-pandemic recovery, with both regions stabilizing in occupancy by 2023. However, a divergence occurred in ADR trends. While the Caribbean reached record-high ADRs, Costa Rica saw a decline from its 2023 peak. This difference is partly due to the Caribbean’s higher proportion of luxury hotels, which have driven its ADR growth.

Impact of Traveler Demographics

The composition of international travelers to Costa