Home » Costa Rica Travel News » How France Leads in Luxury Travel Market, Costa Rica Tourism Surge and Latin American New Power Ahead Boost Trips, Still Trump Tariff Bites More, Latest Update is Here

Published on
August 19, 2025

By: Tuhin Sarkar

Global travel in 2025 is being shaped by contrasting forces of growth, challenge, and reinvention. On one side, France has surged to the top of Europe’s luxury travel market, with bookings up more than 60% this summer. From the glamour of Parisian fashion houses to the allure of the French Riviera’s yachts and resorts, France has cemented its role as the ultimate playground for travellers who value exclusivity, culture, and gastronomy. Luxury demand is booming, even as mainstream travel sectors face cost pressures.

In the Americas, a different story is unfolding. Costa Rica, once the darling of post-pandemic eco-tourism, is seeing its surge cool. The combination of softer US demand, rising travel costs, and new tariffs imposed by the Trump administration has begun to bite. Tour operators warn that the fall and winter seasons may see fewer American visitors, a sharp contrast to the record highs of recent years.

Meanwhile, the spotlight is shifting further south. Latin America’s new powerhouses—Colombia, Brazil, Argentina, Chile, and Bolivia—are powering ahead, winning over travellers from North America and Europe. Vibrant festivals, improved flight connectivity, and investments in hotels are drawing tourists in record numbers. From Argentina’s wine valleys to Brazil’s world-famous beaches, the region is becoming a serious competitor on the global tourism stage.

These developments highlight a wider trend: while some destinations thrive by innovating and diversifying, others face turbulence from economic shifts and political decisions. For travellers, the lesson is clear—2025 will reward flexibility and awareness.

New Tourist Taxes Reshape Global Travel Costs

Tourism strategies are changing fast, and 2025 is proving to be the year when taxes and visitor levies redefine how destinations fund growth. The United Kingdom is preparing to join Greece, Japan, Mexico, and the United States in introducing a new tourist tax. Officials argue that the additional fee will help finance infrastructure, maintain historic sites, and protect against overtourism. Critics, however, warn that higher costs could push away budget-conscious travellers.

This policy shift is not limited to Europe. Across the Caribbean and Latin America, nations including Mexico, Costa Rica, Jamaica, Barbados, Dominica, and St. Lucia are rolling out new or higher visitor levies. Some are also tightening citizenship-by-investment programmes, once a popular route for international investors. Governments defend the changes as a means of achieving sustainable tourism growth, but travellers will need to adjust to higher holiday expenses.

Costa Rica Tourism Surge Slows as Tariffs Bite

Once one of the hottest eco-tourism hubs in the Americas, Costa Rica is facing a slowdown in arrivals. The surge in American visitors seen in the post-pandemic years has cooled as new US tariffs and economic uncertainty push up travel costs. Tour operators are reporting weaker demand heading into the autumn and winter high season. For local businesses heavily reliant on US holidaymakers, the slowdown is raising concerns about lost income and reduced growth.

Latin America Powers Ahead with New Attractions

While Costa Rica cools, other parts of Latin America are thriving. Colombia, Brazil, Chile, Argentina, and Bolivia are seeing strong tourism growth fuelled by festivals, improved air connectivity, and new hotel investments.

  • Colombia’s colourful festivals are luring international crowds.
  • Brazil’s beaches and nightlife remain magnets for tourists.
  • Argentina’s wine country is enjoying a surge of premium travellers seeking authentic cultural experiences.

These destinations are proving especially attractive for travellers from Europe and North America, eager for affordable yet culturally rich holidays.

Canadian Tourism to US Declines Sharply

One of the most dramatic shifts in 2025 is the steep drop in Canadian tourism to the United States. Cross-border travel has fallen by nearly one-third this year, costing American destinations more than $2 billion in lost revenue.
States such as Florida, New York, and Michigan have been hit hardest, with hotels, restaurants, and attractions reporting sharp revenue losses. Analysts blame political tensions, currency fluctuations, and stronger domestic tourism options within Canada for the decline. For US tourism economies that rely heavily on Canadian visitors, this downturn represents one of the toughest challenges of the decade.

Overcrowding Challenges in Global Hotspots

While some destinations face falling numbers, others are struggling with the opposite problem—too many tourists. Vatican City, Andorra, San Marino, the Bahamas, and St. Kitts and Nevis ranked among the most overcrowded destinations in 2024, with visitor numbers vastly exceeding local populations. The challenge remains balancing economic benefits with quality of life for residents and the preservation of heritage. Policymakers are under pressure to manage tourism sustainably without cutting vital revenue streams.

France Leads Europe’s Luxury Travel Market

Luxury travel demand shows no signs of slowing, and France has emerged as Europe’s crown jewel in this sector. Bookings rose by more than 60% in July 2025, cementing France’s reputation as the top luxury travel destination.

  • Paris continues to dominate in fashion and gastronomy.
  • The French Riviera remains the playground for yachting, luxury resorts, and exclusive experiences.

Even as global travellers tighten budgets in some regions, the high-end segment is booming—showing the resilience of luxury tourism.

Airline Disruptions Create Fresh Uncertainty

Luxury travellers, however, are not immune to air travel chaos. Canada faced major flight cancellations this week, with over 35 flights grounded across its busiest airports. Affected carriers included Air Canada, Lufthansa, Cathay Pacific, United Airlines, Singapore Airlines, and Thai Airways.

The disruption was tied to ongoing tensions with 10,000 Air Canada flight attendants locked in difficult contract talks. While a full strike is not officially underway, demonstrations and operational pressures have already caused ripple effects across the aviation network. Travellers are urged to check flight status before heading to airports, as uncertainty may continue in the coming weeks.