Wednesday, March 18, 2020

Over 10,000 Cancelled Nights in Hotels in Costa Rica

Hotels are suffering greatly due to the restrictions needed to stop the spread of covid-19. They report over 10,000 cancelled nights and expect a fall of up to 90% because of the new coronavirus.

Hoteliers plan to ask the government for help such as subsidies and flexibility in insurance so as to avoid bankruptcy and mass layoffs.

A state of national emergency has been declared and foreigners banned from entering Costa Rica. While the hotel sector understands the need to take such extreme measures, it will take a huge hit because it is high season.

The Government has proposed some measures to help, such as exemptions from income tax and value added tax. Hoteliers, however, point out that without reservations, being exempt from tax doesn’t mean anything. They hope to have their water and electricity bills waived. The Government also asked banks to propose debt recovery plans for those in the most affected sectors.

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