With a $1.92-billion-a-year tourism industry, Costa Rica stands as the most visited nation in the Central American region, with 1.9 million foreign visitors in 2007, thus reaching a rate of foreign tourists per capita of 0.46, one of the highest in the Caribbean Basin, and above other popular destinations such as Mexico (0.21), Dominican Republic (0.38), and Brazil (0.03).

Ecotourism is extremely popular with the many tourists visiting the extensive national parks and protected areas around the country. Costa Rica was a pioneer in this type of tourism and the country is recognized as one of the few with real ecotourism.

Other important market segments are adventure, and sun and beaches. Most of the tourists come from the U.S. and Canada (46%), and the E.U. (16%), the prime market travelers in the world, which translates into a relatively high expenditure per tourist of $1000 per trip.

Tourism in Costa Rica is one of the fastest growing economic sectors of the country and by 1995 became the largest foreign exchange earner. Since 1999, tourism earns more foreign exchange than bananas, pineapples and coffee combined. The tourism boom began in 1987, with the number of visitors up from 329,000 in 1988, through 1.03 million in 1999, to a historical record of 2.1 million foreign visitors in 2010.

In 2008, tourism contributed with 7.2% of the country’s GDP, 22.7% of foreign exchange generated by all exports, and in 2005 it was responsible for 13.3% of direct and indirect employment.

As a result of the global economic crisis, international arrivals began falling since August 2008, as the number of U.S. citizens visiting the country shrank, and this market segment represents 54% of all foreign tourists visiting Costa Rica. The combined effect of the economic crisis and the 2009 flu pandemic resulted in reduction of tourists arrivals in 2009 to 1.9 million visitors, an 8 percent reduction as compared to 2008. In 2010 the number of visitors rose to 2.098 million, barely exceeding the previous peak reached in 2008.

In terms of 2011 Travel and Tourism Competitiveness Index (TTCI), Costa Rica reached the 44th place in the world ranking, classified as the second most competitive among Latin American countries after Mexico, and ranking fifth in the Americas. Just considering the subindex measuring human, cultural, and natural resources, Costa Rica ranks in the 33rd place at a worldwide level, and 6th when considering just the natural resources criteria.

The TTCI report also notes Costa Rica’s main weaknesses, limited number of cultural sites (104th), time required to start a business (125th), poor condition of ground transport infrastructure (111th), and poor quality of port infrastructure (132nd).

In 2008 most visitors came from the United States (38.6%), neighboring Nicaragua (21.8%), and Canada (5.2%). Tourist revenues from North America and European countries, which together made up 60% of all visitors, contributed to achieve a relatively high expenditure per tourist of $1000 per visitor, both in 2007 and 2008.

Other important originating countries are Panama (3.5%), Mexico (2.9%), and Spain (2.6%). According to a 2006 survey, visitors from the Caribbean Basin and South America travel to Costa Rica mainly for business or professional purposes, while a majority of Americans, Canadians and Europeans visit the country for leisure.

Word of mouth from friends and family, with an average of 58%, was the leading reason for visiting Costa Rica for vacations and leisure. The main visitor’s complaint is the poor condition of the roads.