Coast of Manuel Antonio
Unregulated AirBnBs threaten Costa Rica’s communities: An $800 million shadow market displaces locals, evades taxes and strains infrastructure.
— Casey Halloran
SAN JOSé, SAN JOSé, COSTA RICA, August 22, 2024 /EINPresswire.com/ — Costa Rica’s short-term rental market is experiencing unprecedented growth, bringing with it both economic opportunities and societal concerns. A recent study shows that this industry, estimated to be worth approximately $800 million annually, is transforming the country’s tourism landscape.
Important points:
Massive growth: According to data from Costa Rica Investments, there are 35,950 short-term rental listings across the country as of August 2024, with significant growth in key destinations.
– Focus on popular destinations: Jacó leads with an average of 2,904 monthly listings, followed by Tamarindo with 2,263. Other popular locations include Cahuita, San José and Cobanó, all with over 2,000 average monthly listings.
– Steady increase: Jacó has seen a 13% increase in listings in the last year, Tamarindo 19% and Cahuita over 27%. Bahía Ballena has seen growth of over 35%.
– Economic potential: It is estimated that such regulation by the Costa Rican government could generate tax revenues of up to US$100 million per year.
– Community impacts: The boom in short-term rentals is impacting the availability and affordability of housing for local residents, particularly in popular tourist destinations.
– Regulatory challenge: Most short-term rentals take place outside the current regulatory framework, which puts traditional accommodation at a competitive disadvantage.
– Call to action: Experts recommend implementing measures such as mandatory registration, enforcement of existing laws and the creation of community funds to align economic growth with local needs.
Casey Halloran, CEO of Costa Rican Vacations, commented: “Costa Rica is at a pivotal moment. We must capitalize on the economic potential of short-term rentals while preserving the essence of our communities and our valued ‘pura vida’ lifestyle. It is imperative that we act now to implement balanced regulations that benefit all stakeholders.”
This press release highlights the need for a national dialogue on how Costa Rica can maintain its tourism attractiveness while protecting the interests of local communities.
James Dyde
CentralAmerica.com
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