Archive for December 2nd, 2008

IATA Blasts Proposed Costa Rica Entry Tax

Tuesday, December 2nd, 2008

Costa Rica is considering levying a $15 tax on international passengers arriving in the country, causing the airline industry, represented by IATA, to cry foul.

The law currently being debated would tax arriving passengers but would not apply to Costa Ricans. IATA, in a letter to the minister of tourism, says the proposed tax could be perceived as discriminatory.

Furthermore, IATA argues that the tax could be a disincentive for travelers to visit Costa Rica. But this tax could unravel years of work by turning visitors away and sending the wrong signals, IATA says.

Tourism will account for 13.5% of Costa Rica’s GDP this year, which suggests how important the sector is to the country’s economy, IATA says.

The proposed tax could siphon off passengers to other countries in the region. It also runs contrary to Costa Rica’s agenda to increase tourism to the country. Much like a tax on tobacco, the proposed tax will penalize tourism, and the government will see the collection of the tax decrease as tourism diminishes.

Argentina last month began levying a reciprocal tax on citizens of countries that require visas of Argentine nationals. IATA objected to that tax for much the same reason it objects to Costa Rica’s planned tax.

Costa Rica With 58 Political Parties

Tuesday, December 2nd, 2008

There are only 15 months to go before Costa Ricans vote on a new president and already 58 parties have registered with the Tribunal Supremo de Elecciones (TSE).

Voters of the presidential elections to be held in February 2010 will probably never hear of most of the parties, as some are specialized to represent only certain sectors of the population, like the senior citizen’s party or the disable citizen’s party.

Luis Antonio Sobrado, president of the TSE, feels there is an “over population” of registered political parties.

Sobrado compares the political system in neighbouring countries like El Salvador with 6.8 million inhabitants and only 6 political parties, or Colombia with a population of 42 million and only 8 registered national political parties.

In Costa Rica there is no restriction of the number of political parties or any requirements based on percentage of voters. Many of the parties are provincial and cantonal. National parties, however, are required to have at least 3.000 signatures.

Costa Rica residents return to their homes as rains subside

Tuesday, December 2nd, 2008

Over 4,600 people returned to their homes this week, while another 1,400 remained in shelters as the flooding and torrential rains subsided in Costa Rica’s Caribbean areas.

An estimated 46,600 people have been affected as strong rains flooded the Caribbean canton of Limón in Costa Rica since the storms began last week, according to the National Emergency Commission (CNE), and 28 bridges have been wiped out, among other damages.

The rains also have pounded western Panama, and landslides closed parts of the Inter-American Highway, cutting off the capital, Panama City, for 48 hours this weekend. Public Works Minister Benjamín Colamarco said the highway would closed at least until Monday, as repairs were made, according to the EFE news agency. (more…)