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 Published Thursday, June 11, 2020
By the A.M. Costa Rica staff
The deputies of the Economic Affairs Commission approved the analysis of the bill No.21934, which proposes to suspend the mandatory entry payment of the Value Added Tax, IVA, for the tourism sector until 2021, reported the Congress on Wednesday.
According to Congress, the bill proposes to extend the grace period for two years in the Public Finance Strengthening Law regarding the entry into force of the collection of the IVA tax on the tourism sector.
The current law requires tourist entrepreneurs to collect a 4% VAT tax from July 1. In 2021 the tax will rise to 8 percent. Starting 2022 the tax will rise to 13 percent.
This temporary suspension of the tax will not have a direct impact on the finances of the Ministry of Finance, said the deputy Roberto Thompson who presented the project in Congress.
After this approval, bill No.21934 will be presented to the deputies for the first round of voting. After two rounds of voting, Congress will determine the approval or rejection of the bill.
The Chamber of Tourism celebrated the progress in the bill that could suspend the VAT tax.
"We hope to have the support of the rest of the deputies," said Rubén Acón, president of the Chamber.
This week, the Tourism Institute announces free courses led by international Wellness and Health Tourism experts to learn new ways to attract tourists after the pandemic comes to an end.
According to the Institute, the goal of experts is to teach new business ideas, giving advice and recommendations to entrepreneurs interested in attracting health and wellness tourists.
The institute has been developing promotional campaigns for the country as a unique destination of wellness and health services, called “Wellness Pura Vida.”
Precisely the reconnection with nature, the search for the essentials and recharging energies, will be attractive for national tourists who begin to travel, as well as for international tourists when they can return to our country, said the institute in its statement.
The courses will be available on the ICT Capacita platform with chats in English and Spanish.
On the platform, 11 videos are displayed with updated information from experts on subjects as the basic principles of Wellness, the available wellness resources of Costa Rica, promotional strategies, information on the European and American markets, the design of products, the difference between the spa and the Wellness, among many other topics.
The international experts who will also give talks are from the wellness tourism consulting firm Resources for Leisure Assets.
Among the courses are Wellness Tourism Strategy, Spa Design, Spa Feasibility and Financials.
In addition to courses in strategies to attract health tourism, there will also be training for the prevention of covid-19.
In May, the Institute announced the development of a local tourism campaign with low prices aimed at local travelers, foreign residents and Costa Ricans to increase tourism in the country.
According to the institute, to stimulate national tourism and start to bring the sector out of paralysis due to the pandemic, strategic alliances will be established with cooperatives, associations and banks to promote discounts and payment facilities, as an incentive for people who live in the country to encourage them to explore local tourism.
The institute has developed a plan to deal with the return of international airlines when the health authorities allow it. They are renegotiating with the airline's travel campaigns that were planned for 2020. Among the important points are the sanitary guidelines for passengers entering and leaving the country, and the analysis of the operating costs of airlines, said the institute.
The plan for the advertising campaign called “Only the Essentials” will continue, which presents Costa Rica not only as a place to travel but as a life-transforming experience.
Public banks created a rescue program for tourism companies. The goal is to provide support for working capital and cash flow for small and medium businesses.
There is one plan still in the negotiation phase with the Inter-American Development Bank, IDB, which is to develop an employment program for small tourism companies.
According to the institute, 94% of tourism companies in the country are small or medium, such as hotels with 40 rooms or less.
In 2019, the tourism sector generated $3.9 trillion and more than 200,000 people worked in tourist companies, according to statistics from the Costa Rican Central Bank.
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