Costa Rica hotels are set to suffer from the new dollar-colon exchange rate in an industry where the majority of gains are in dollars and expenses in colones. Prices for hotel stays for 2008 were set back in the first quarter of 2007, and would be difficult to change considering all of the promotional material that has already been printed and distributed.

To combat the loss of finances, several hotels have still decided to up their prices for any bookings made after the exchange rate was altered. The Grupo Marta, for example, has upped prices 10% starting Nov. 27 for their hotels which include Best Western Irazú, Best Western Jacó Beach, Best Western Downtown, Hampton Inn & Suites and Garden Court & Casino.

It is expected that other hotels will follow in their footsteps if the exchange rate holds steady, making vacations for North Americans more expensive. In situations where the per-night rate cannot be raised, travelers may see increases in the price for hotel services and products such as food and room service. However, others have said that they are dedicated to not letting the change affect their customers.

Hotel reservations that were made before the change in the exchange rate will not be affected by any changes in the pricing policy made by hotels.

The exchange rate was changed by the Central Bank of Costa Rica on Nov. 21. The average sale of colones went from 516 to the dollar to 496. A full hotel with 50 rooms, for $100 each, would be taking in about 100,000 colones ($200) less per day with the new rate, which equals monthly losses of $6,000. These loses will likely be much higher for more expensive or larger hotels.

This post's rating:

Related Stories

Filed under: Costa Rica News on December 4th, 2007