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A proposal to reduce the cost of flights to Central America and the Dominican Republic has been effectively blocked by ruling party lawmakers in Costa Rica’s legislative assembly. Congresswoman Pilar Cisneros’s Progressive Social Democratic Party (PPSD) filed 63 substantive motions against the bill on Monday, severely hampering its progress.
The bill, introduced by Eli Feinzaig of the Liberal and Progressive Party (PLP), aims to promote regional travel with round-trip fares of less than $126. Feinzaig believes the measure will benefit small and medium-sized enterprises (SMEs) by allowing them to explore the region’s markets and services, while also boosting tourism.
Under the proposed legislation, the departure tax for flights from Costa Rica to Belize, El Salvador, Guatemala, Honduras, Nicaragua and Panama would be reduced from $27 to $14. The reduction would be available if the round-trip ticket price does not exceed $80 (before taxes) and the one-way ticket price does not exceed $40. In addition, the bill stipulates that the total amount of taxes and airport fees collected from passengers by each country cannot exceed $23.
However, the government has expressed reservations about the bill. Presidency Minister Laura Fernandez said the government would prefer to discuss the bill in the Tourism Council rather than rush it through plenary. Fernandez is concerned that cheap flights could tempt tourists to cut short their stay, which currently averages 13 days, and head to other regions.
Tourism Minister William Rodriguez echoed the concerns, warning that the proposed reforms could negatively impact many families and communities that rely on tourism for their livelihoods. Rodriguez also highlighted the potential financial impact, saying the plan would reduce revenues to the national treasury by more than N2 billion and similarly reduce revenues to the Costa Rican Tourism Institute (ICT). He argued that such reductions could hamper the country’s tourism promotion efforts abroad.
Councilman Eli Feinzaig expressed dissatisfaction and frustration with the government’s stance. “It shows that they did not read the proposed text. All the arguments they made are false and seem to have been made up just to hinder this project,” Feinzaig said.
Congresswoman Cisneros defended her party’s actions, explaining that the motions were meant to force the parties to negotiate in order to send the bill back to committee for consideration. She noted that since the fast-track procedure was approved in plenary, there was no opportunity to hear the opinions of the parties involved.
This legislative impasse highlights the complex balance between promoting regional connectivity and protecting domestic tourism interests. As the debate continues, it remains to be seen whether a compromise can be reached that addresses both the potential benefits of cheap regional travel and the concerns of government officials about its impact on Costa Rica’s tourism industry.
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