Costa Rica halts reopening of economy, in big blow to tourism sector

Costa Rica’s government will halt reopening the country’s economy due to an increase in the number of coronavirus cases over recent days, a senior official said on Friday. The Central American nation which has already lost 100,000 jobs due to the pandemic, and this decision will hit the economy hard.

“These are not numbers to think that nothing is wrong and that we can continue with the reopening,” Health Minister Daniel Salas said during a news conference.

Over the last 24 hours, Costa Rica has registered a record 119 new coronavirus infections, bringing the total number of confirmed cases to 2,058.

“Stores and shopping malls, beaches, churches and other activities will have to wait until we have a sustained decrease in cases,” Salas said. The national soccer league is also suspended “until further notice,” he added.

Costa Rica’s tourism chamber has been putting pressure on the government to open the country’s borders, which are closed until June 30. Government data shows the jobless rate reached 15.7% in the February to April period, as 100,000 jobs were lost. The central bank forecasts gross domestic product could contract by 3.6% in 2020.

In a letter published this week by the Costa Rican Hotel Chamber (CCH), its president, Javier Pacheco, said the hotel sector “can no longer endure” the economic crisis caused by the coronavirus pandemic. A CCH survey found more than half of Costa Rica’s restaurants have already laid off workers during the crisis.

“The announcements of support for tourism are half-hearted, and what the Government has been announcing has not been met or is progressing at a rate that disadvantages us,” Pacheco said. “If things continue like this, next month there will be total closures of the companies and massive layoffs.”

Among CCH’s demands is that Costa Rica begin welcoming international visitors from July 1.