economic impact of tourism in costa rica

Explore Costa Rica

The Role of Tourism in Costa Rica’s Economy: A Comprehensive Guide

Welcome to this in-depth exploration by Explore CR, where we delve into the pivotal role of tourism in Costa Rica’s economy. Known for its stunning biodiversity, Costa Rica has become a top destination for eco-tourists worldwide. In this article, we’ll explore how tourism has shaped the nation’s economy and continues to drive its growth. Let’s get started!

1. Tourism: A Major Economic Driver

Tourism in Costa Rica is more than just a sector; it’s a significant economic driver. According to the Costa Rican Tourism Board , tourism contributes to over 8% of the country’s Gross Domestic Product (GDP). This figure underscores the sector’s importance in generating income and employment.

Moreover, tourism has a multiplier effect on other sectors of the economy, such as agriculture, construction, and services, stimulating overall economic growth.

2. Eco-Tourism: Costa Rica’s Unique Selling Proposition

Costa Rica’s commitment to preserving its rich biodiversity has positioned it as a global leader in eco-tourism. The country’s vast array of national parks, reserves, and protected areas attract millions of tourists each year, eager to experience its unique flora and fauna.

Eco-tourism not only promotes environmental conservation but also creates job opportunities and supports local communities, contributing to sustainable economic development.

3. The Impact of Tourism on Employment

Tourism is a significant source of employment in Costa Rica. The sector directly and indirectly employs hundreds of thousands of people, from hotel staff and tour guides to restaurant workers and artisans.

Furthermore, tourism fosters entrepreneurship, with many Costa Ricans starting their own businesses to cater to tourists, such as souvenir shops, restaurants, and tour companies.

4. The Challenges and Opportunities in Costa Rica’s Tourism Sector

Despite its significant contributions, Costa Rica’s tourism sector faces challenges, including seasonality, competition, and the need for sustainable practices. However, these challenges also present opportunities for innovation and diversification.

For instance, Costa Rica is expanding its offerings beyond eco-tourism to include wellness tourism, adventure tourism, and cultural tourism. These initiatives aim to attract a broader range of tourists and ensure the sector’s long-term sustainability.

FAQ Section

Q1: How much does tourism contribute to Costa Rica’s GDP? A: Tourism contributes to over 8% of Costa Rica’s GDP.

Q2: What is eco-tourism? A: Eco-tourism is responsible travel to natural areas that conserves the environment, sustains the well-being of the local people, and involves interpretation and education.

Q3: How does tourism impact employment in Costa Rica? A: Tourism directly and indirectly employs hundreds of thousands of people in Costa Rica and fosters entrepreneurship.

Q4: What challenges does Costa Rica’s tourism sector face? A: Challenges include seasonality, competition, and the need for sustainable practices.

Q5: What are some emerging trends in Costa Rica’s tourism sector? A: Emerging trends include wellness tourism, adventure tourism, and cultural tourism.

In conclusion, tourism plays a crucial role in Costa Rica’s economy, driving growth, creating jobs, and fostering sustainable development. Despite the challenges, the sector’s future looks promising, with opportunities for diversification and innovation. Through this guide by Gigonway, we hope you’ve gained a deeper understanding of the role of tourism in Costa Rica’s economy.

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• CORONAVIRUS COVERAGE

A town in Costa Rica faces an eco-tourism crisis

With its famed Cloud Forest closed, Monteverde fights for its life.

The rainforests of Monteverde, in Costa Rica, attract thousands of nature lovers hoping to glimpse species unique to the area. But this year, the coronavirus pandemic has kept them away.

In early March, the sunset lookouts in Monteverde, Costa Rica, were packed with tourists. This community of roughly 6,000 residents is an ecotourism hot spot, and by most accounts, 2020 was set to be a banner year.

Now police tape wraps the newly installed wooden benches, and every attraction, including the famed Cloud Forest Biological Preserve , is shuttered. Restaurants are folding and accommodations, from backpacker hostels to homestays and Airbnbs, are empty. A silence has descended, cut only by birdsong. It’s both tranquil and ominous—the sound of indefinite absence.

Santa Elena, the village serving the area around Monteverde, normally hums with visitors hopping from backpacker hostels to restaurants and attractions, such as the Serpentario snake zoo (right). Now the streets are empty.

While Monteverde has no confirmed coronavirus cases, the hardship brought on by the pandemic has been swift and startling. Tourism is a major economic driver in Costa Rica , accounting for roughly 8–9 percent of the country’s GDP in 2019, according to Luis Jara, a spokesperson for Costa Rica’s Tourism Board. In places like Monteverde, it’s the only engine.

In 2019 the region, a three-hour drive from the capital, drew close to 250,000 visitors, mostly from the United States , Canada , and Europe . Avid birders, eco-adventure thrill-seekers (locals claim that ziplining was invented here), and study abroad students come to experience what the New York Times once called a “ pilgrimage to nature .”

In this otherworldly mountaintop rainforest, visitors find one of the most biodiverse places on the planet and one of the few remaining ecosystems of its kind. Its misty canopy is home to over 400 bird species—roughly half of all species in Costa Rica—as well as the most species of orchids found anywhere and a dizzying variety of trees. Nature lovers come to see plants and animals not found anywhere else in the world.

(Related: Here’s how travelers can help protect frogs in Costa Rica.)

The abrupt departure of visitors has left most households without a steady income. “This is nothing like low season,” says David Rodriguez, a wildlife guide and biologist who returned from leading a bird-watching tour on March 18, the day Costa Rica closed its borders . All his future bookings have been canceled. “During low season, you know high season is coming. This is a complete stop with no end in sight.”

As of May 5, Costa Rica, with a population of five million, had a total of 739 confirmed cases and six deaths , with active cases trending downward. Many express cautious approval of the government’s quick response. President Carlos Alvarado Quesada declared a state of emergency on March 16, closing schools, beaches, national parks, and borders while virus cases were still in the double digits.

But even after these measures lift, businesses will likely feel economic pain for some time. “Tourism will only return drop by drop,” says Heidy Perez Bravo, the director of Monteverde’s Chamber of Tourism. “We have too much tourism infrastructure now. Nothing will be full again for a while.”

David Rodriguez, 34, is a bird-watching guide and biologist who was expecting a busy high season in March and April. Because of the pandemic, all of his tours have been canceled. He doesn’t know when he’ll be working again.

Garbage bags cover a sign for the Catarata de Murciélagos , the Bat Waterfall, indicating that the reserve, opened in 2018, is now closed.

It’s a difficult reality to accept, since the last few years marked a much anticipated boom after tourism took a hard dive during the 2008 recession. The sector rose 4 percent last year and projections for 2020 were expected to surpass that. “Tourism was the most dynamic segment of the economy until a month ago. The road to recovery will be even longer than what we experienced after 2008,” says Gerardo Corrales, an economic expert and professor at Lead University of Costa Rica .

The crisis is a double-edged sword for locals, including Laura Mora, the cook at La Cuchara de la Abuela, a popular soda or diner. “I’m scared of the tourists not returning, and I’m also scared of them coming back and bringing the virus here,” she says. An outbreak in Monteverde would be disastrous for the community’s basic healthcare facilities, which for the majority of denizens who can’t afford private doctors consists of a small state-run clinic with no intensive care unit.

Related: How hard is coronavirus hitting the travel industry?

To help relieve some of the economic pressure, on April 10 the central government launched Bono Proteger , a program that provides up to $220 each month (for three months) to people who have lost income due to the pandemic; the funding equates to roughly a third to a half of average salaries in Monteverde. In a week, more than 400,000 people across the country submitted applications. But “in places like Monteverde, where tourism is the economy, three months of aid won’t be enough. It will be just the beginning [of what people will need],” says David Landergren Castro, a financial consultant who specializes in the country’s small and medium-size businesses.

“Eventually, the aid will run out and we’ll still be struggling,” predicts Shannon Smith, who owns Taco Taco , an eatery usually bursting with customers at this time of year. “When we can move around again, we’ll need to hyper focus on buying local and on sharing resources.”

Keeping it local

Some of these efforts are already underway. Locally made products and produce are flooding WhatsApp groups, as small-scale agriculture, once a way of life, becomes a survival tool. Just before the Easter lockdown, Las Chutas, the hardware shop, sold out of all seeds except beans and cilantro as residents rushed to build their own huertas or vegetable gardens.

At the Belmar Hotel , a 35-year-old family-run business and the most upscale accommodation on the mountain, only the organic garden remains open. The management has had to lay off many of the hotel’s 75 employees and hopes to generate some income by expanding the garden to sell produce to the community.

The Red Cross in Santa Elena is a small outpost that supports Monteverde’s state-run clinic with basic medical care and emergencies.

“We have a few months of reserve to pay for essential employees like maintenance and security, which makes us fortunate. But we have never before found ourselves at zero income,” says Pedro Belmar, the hotel’s general manager.

Like the Belmar, farms are looking for places to sell their products. In the last two weeks, community leaders launched Econexiones , an online platform dedicated to organizing and promoting goods hecho en Monteverde, or made in Monteverde. It’s an effort to ensure that the little money people spend circulates on the mountain, and that there aren’t multiple different farms each offering basil and lettuce. “We’re helping local producers, who were supplying to restaurants and hotels, to meet the needs of the community,” says Selena Avendaño, supervisor of community initiatives at the Monteverde Institute , a local nonprofit that promotes sustainability, and a coordinator of the effort. “We’re trying to move the part of the economy that should still be moving—food.”

Starting over, again

Many say that the current crisis highlights what has become an excessive dependence on tourism. “Thirty years ago, Monteverde was mostly dairy farms started by the Quakers,” explains José Luis Vargas, a Monteverde native and co-founder of Life Monteverde , a sustainable coffee cooperative. “Back then, a group of us worked on a project called Monteverde 2020 to diversify the economy with a focus on conservation and ecotourism.” The idea was for tourism to offer an alternative to dairy farming. Now a collapse of the industry is forcing another reinvention.

A hanging bridge at Selvatura Adventure Park in 2012. Normally the park, which is currently closed, offers canopy zip line tours, including a kilometer-long Superman cable, popular with tourists.

Starting from scratch is a familiar refrain to some. Oscar Chacón and Angela Acuña moved to Monteverde from Venezuela to escape economic and political turmoil there. Over the past 20 years, they’ve restarted their lives a half dozen times. Chacón arrived in Costa Rica in 2018 with $70 in his pocket, and last December, he and Acuña opened Zucarro Café .

When the country locked everything down, the couple adapted quickly, reducing the café’s output by 80 percent and distributing bread to grocery stores. “My experience in Venezuela prepared me for this crisis. I can put on my gloves and fight,” says Acuña. “Still, we are taking it day by day.”

For now, they’re staying open. “We have only a little product but it’s fresh. We are not just a tourist café,” says Chacón, scrubbing his hands with sanitizer. “If we can provide for the community, the community will provide for us.”

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• CORONAVIRUS
• JUNGLE EXPLORATION

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Economic Impact of Rural Tourism in Costa Rica and in the Region of Murcia, and Its Implications on Demand

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• Catalina María Morales 4 ,
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Tourism in rural areas is a wide concept that refers to the various leisure activities that can be carried out in rural zones, which include such modalities as: rural tourism, ecological tourism, agro-tourism, adventure tourism, cultural tourism, business tourism, young person tourism, social tourism, health tourism and sport tourism. These activities, little valued in the past, have come to integrate true productive chains involving, amongst other pursuits: properties, agrarian industries, transport, restaurants and communications, all of which constitute an impeller of growth, mainly for non-agricultural activities in the rural zone.

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Blanco M (2006) “Potential analysis of rural tourism in the cantons of Upala, Los Chiles, Guatuso y La Cruz.”

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Frechtling DC (1996) Practical tourism forecasting. Butterworth Heinemann, Oxford

National University of Litoral. II World Forum on agrotourism and rural tourism, Santa Fé, 7 to 10 November 2002 (online). Available at: www.foroagroturismo.unl.edu.ar

Riveros H, Blanco M (2003) “El agroturismo, una alternativa para revalorizar la agroindustria rural como mecanismo de desarrollo local”. Documento Técnico. IICA-Prodar, Lima (Perú)

Rodríguez A, Saborío M (eds) (2009) Lo rural es diverso, evidencia para el caso de Costa Rica. Instituto Interamericano de Cooperación para la Agricultura, San José (Costa Rica)

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Verardi Fialho M (2001) “Rural tourism and non-agrarian rural employment. The case of the colonial route Dos Irmaos, Rio Grande do Sul.” (online). Available at http:// www rimisp.cl/dfid/colonial-es.pdf

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Morales, C.M., Briones, A.J., Artal, A., García, A. (2012). Economic Impact of Rural Tourism in Costa Rica and in the Region of Murcia, and Its Implications on Demand. In: Sethi, S., Bogataj, M., Ros-McDonnell, L. (eds) Industrial Engineering: Innovative Networks. Springer, London. https://doi.org/10.1007/978-1-4471-2321-7_5

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Costa Rica Economic Impact Report

Discover the direct and total economic contribution that the Travel & Tourism sector brings to Costa Rica in this comprehensive report.

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This latest report reveals the importance of Travel & Tourism to Costa Rica in granular detail across many metrics. The report’s features include:

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• Tables ranking Costa Rica against other competing destinations and benchmarked against the world and regional average across various metrics
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I would like a copy of your tourism plan to share with my students in my Tourism Planning & Policy course. However, is there an English version for the tourism plan?

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Jim hepple is an assistant professor at the university of aruba and is managing director of tourism analytics..

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The World Bank In Costa Rica

Costa Rica is a development success story in many aspects. Considered an upper middle-income country, Costa Rica has experienced steady economic expansion over the past 25 years, but the COVID-19 pandemic, among other factors, challenges these achievements

In many aspects, Costa Rica is a success story in terms of development. It is considered an upper middle-income country, which has shown a steady economic growth over the past 25 years. This growth resulted from an outward-oriented strategy, based on the openness to foreign investment and gradual trade liberalization.

Costa Rica is also a global leader for its environmental policies and accomplishments, which have helped the country build its Green Trademark. The pioneering Payments for Environmental Services (PES) program has been successful in promoting forest and biodiversity conservation; making Costa Rica the only tropical country in the world to have reversed deforestation.

The combination of political stability, social contract and stable growth has resulted in one of the lowest poverty rates in Latin America and the Caribbean, where the proportion of the population living below the World Bank’s upper middle-income line (US$6.85 per person per day in 2017 Purchasing Power Parity - PPP) decreased from 15.6 to 13.7 % between 2010 and 2019.

The success of the country in recent decades is also reflected in its strong indicators of human development, which have contributed to move the country up the global ranks, higher than the other countries in the region. However, two key challenges persisted.

Poverty rates are particularly high among vulnerable groups such as Afro-descendants, Indigenous populations, and migrants. The global pandemic deepened these challenges, with the poverty rate (2017 PPP) increasing from 13.7 % in 2019 to 19.9 % in 2020. In 2023, as labor market conditions improved and real household per-capita labor income recovered, poverty declined to 12.7 % below pre-pandemic levels. 

After moderating to 4.6 % in 2022, growth surpassed expectations, reaching 5.1 % in 2023, bolstered by robust domestic and external demand. Inflationary pressures subsided in the first half of 2023. Amid global uncertainty and a slowdown in key trading partners, the projection is 3.9 % in 2024, and then growth is expected to moderate to 3.7 % in 2025 and 2026. 

Costa Rica's high susceptibility to external shocks, such as global inflationary pressures, dampened global growth, and tightening financial conditions, could pose challenges. Climate vulnerabilities, exacerbated by phenomena like El Niño, compound these uncertainties and could disproportionately impact the poor. Additionally, recent surges in migration and perceived criminality could increase expenditure demands, potentially impeding the pace of fiscal consolidation.

Addressing Costa Rica's twin challenges of inclusivity and fiscal management is crucial. Growth would need to become more inclusive across the labor force and territory, and fiscal policies should continue to support creditworthiness. Improving revenue mobilization and spending efficiency, especially in social and infrastructure sectors, is essential to reduce poverty and inequality.

Last Updated: Apr 03, 2024

The Country Partnership Framework (CPF) established by the World Bank (WB) and the Government of Costa Rica continues to foster a close partnership based on mutual learning and knowledge sharing in support of the country’s overall growth and development objectives.

A new CPF for the 2024-2028 period was approved by the WB Board of Directors on April 30, 2024. This strategy, which reflects the analytical underpinnings of the  Systematic Country Diagnostic Update (June 2023), focusses on promoting broad-based, inclusive economic growth; reinforcing and preserving human capital in key sectors like education and social protection; and enhancing resilience to natural and social shocks and the effects of climate change. All while supporting a transition to a climate-smart economy.

These efforts are underpinned by two cross cutting themes that guide the overall strategy’s implementation. They refer specifically to the aims of strengthening institutions, and to enhancing equity and inclusion across all the various WB interventions. This approach takes into consideration Costa Rica’s evolution as an upper middle income and OECD member country. 

As of early April 2024, the active portfolio in Costa Rica includes six operations totaling USD 1301.7 million in net commitments. It includes 4 investment projects (USD 641.7 million) and 2 development policy loans for budgetary support (USD 660 million).

Following the COVID-19 pandemic, the implementation of the Fiscal Management Improvement Project (USD 156.64 million), known as “Hacienda Digital”, which supports tax compliance and overall expenditure management capabilities, highlights how the WB has worked in partnership with Costa Rica’s authorities to strengthen the State’s capacity to respond to key challenges and consolidate recovery efforts and set the basis for sustainable growth. 

The second “ Fiscal and Decarbonization Management Development Policy Loan (DPL) ,” totaling USD 300 million, was approved by the WB in June 2021. This operation was designed to support the Government’s program to protect people’s income and jobs from the impact of COVID-19. It looked to benefiting the sustainability of small and medium enterprises (SMEs), reinforcing the fiscal framework in the aftermath of this health crisis, and laying out the foundations for a strong post pandemic recovery by promoting green growth and low-carbon development. A third in the series of these DPL loans builds on these efforts to support Costa Rica's fiscal and decarbonization management and was approved in June 2023 totaling USD 500 million.

Two instruments aim to strengthen fiscal, social, and physical resilience against disaster and climate risks in policymaking at the sectoral and territorial levels:

• A second Disaster Risk Management Development Policy Loan with a Catastrophe Deferred Drawdown Option (Cat DDO) , approved in March 2023, aiming to enhance the Government’s capacity to manage disaster risks resulting from the occurrence of natural and health-related hazards and the impacts of climate change. 
• The Climate Resilient Recovery & Territorial Development project , approved in March 2024, will work to increase access to disaster and climate-resilient infrastructure and services in selected regions while working closely to strengthen a broad level of engagement with community stakeholders. 

Costa Rica has also benefited since December 2020 from the Emission Reductions Payment Agreements with a commitment of up to USD 60 million to purchase verified reductions of 12 million tons of CO2 emissions through its emission reduction (ER) program. The Forest Carbon Partnership Facility (FCPF) already paid Costa Rica USD 16.4 million for reducing 3.28 million tons of carbon emissions during 2018 and 2019. The agreements cover the purchase of measured, reported, and verified ERs associated to reduced deforestation and forest degradation (known as REDD+), the enhancement of forest carbon stocks at the national level. The distribution of ER payments goes in accordance with an agreed Benefit Sharing Plan. 

Environmental, climate change, and disaster risk interventions have also been supported through trust funds, such as the Partnership for Carbon Market Readiness (PMR) , the Nationally Determined Contribution Just-in-Time (NDC JIT) , the Forest Carbon Partnership Facility , the Global Partnership for Sustainable and Resilient Landscapes (ProGreen) , and the Global Facility for Disaster Reduction and Recovery (GFDRR) .

In addition to these efforts, support was provided to enforce a Sustainability Protocol at the Reventazón Hydroelectric Plant of the Costa Rican Institute of Electricity , an international example that highlights how it can be possible to develop hydroelectric projects while applying the industry’s best environmental and social practices.

Regarding energy and transportation electrification, the World Bank is supporting the initiative to transition towards an energy model that optimizes the use of renewable resources. The aim is to decarbonize top emitting sectors, such as transport, through the progressive electrification and diversification of the energy matrix, in an environment that promotes greater regional integration and the opening of international energy markets.

Last Updated: May 02, 2024

For the benefit of the Costa Rican population, through the Program for Results project " Strengthening Universal Health Insurance ", the availability and quality of the universal health insurance system, as well as the institutional efficiency of the Costa Rican Social Security Fund (CCSS), were improved. Under the project, objectives such as the reduction of waiting lists and improvements in the treatment of chronic diseases were met. For example, the goal of 43 percent of patients with type II diabetes identified and with optimal clinical control was exceeded. Improvements in colorectal cancer screening also exceeded the goal of 40 percent of the target population. In addition, expectations were exceeded in the percentage of surgeries performed on an outpatient basis (46 %). One of the greatest achievements is in the expected percentage of the total number of primary health care units equipped with the Unique Digital Health Record (90.10 % achieved). The successful implementation of a pilot of integrated health care networks is another one of the attainments of the project.

A series of five informative notes , prepared in collaboration with the CCSS, analyses the factors that drove the success of the project " Strengthening Universal Health Insurance .” It describes how challenges were tackled and key lessons learned during the design and implementation, as well as their transformative actions. The series provides a practical guide to other countries interested in implementing similar programs and can be accessed here .

Disaster Risk Management (DRM) programs  have further improved Costa Rica’s preparedness to respond to disasters through risk reduction and prevention programs. The regulatory and institutional DRM framework was strengthened with the introduction of a legal framework that requires all new public investments to follow DRM best practices and include a hazards assessment. This enhanced capacity of Costa Rica to implement its DRM program was supported by the WBG’s Catastrophe Deferred Drawdown Option (CAT DDO), which provides a source of immediate liquidity in case of disasters.

In December 2020,  Emission Reductions Purchase Agreements  for US$60 million were signed. In August 2022,  Costa Rica became the first country in Latin America and the Caribbean to receive payments from the Forest Carbon Partnership Facility  (FCPF), receiving $16.4 million for reducing 3.28 million tons of carbon emissions during 2018 and 2019.

Through the  Higher Education Project , Costa Rica’s public higher education system has benefitted from an improvement in access and quality. Enrollment in undergraduate programs has reached the target of more than 102,000 students, and in graduate programs, more than 7,000. The total number of officially accredited programs in the four participating universities has also surpassed the target of 106. In the area of  infrastructure , more than thirty construction projects have been completed, including new schools and university buildings, research laboratories and dormitories. The benefits for the indigenous population also stand out, with the number of indigenous students enrolled in the four universities doubling between 2014 and 2017.

The World Bank also conducts research and analysis in Costa Rica. In recent years, a  Poverty and Inequality Assessment  stands out, which contributed to understanding the factors that explain the stagnation of the poverty rate and the increase in inequality in a context of economic growth. The report provides high-level policy recommendations, which have made it possible to prioritize areas for dialogue with the government and other actors in the country.

Other analytical work has included a case study entitled “ Primary Health Care Achievements and Challenges within the Framework of the Social Health Insurance ,” research series on green and inclusive growth, the working paper “ A Behavioral Approach to Water Conservation ,” and  a gender landscape  paper showcasing key indicators helpful for monitoring gender equality and designing effective policy interventions.

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Costa Rica’s Keys to Success as a Sustainable Tourism Pioneer

How the country went from a deforestation crisis to becoming a global leader in sustainability

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In 2019, Costa Rica was named “ Champion of the Earth '' by the United Nations for its direct role in protecting nature and fighting climate change. The country, which is home to just over 5 million residents, was already known as a world leader in sustainability for putting environmental concerns at the forefront of its political and economic policies.

Over 98% of Costa Rica’s energy has come from renewable sources since 2014 (in 2017, the country ran a full 300 days solely on renewable power) and 70% of all public transport is expected to turn electric by 2035. Through a combination of protected areas, ecosystem services programs, and ecotourism, Costa Rica has successfully restored its forest cover from 26% in 1983 to over 52% in 2021 — proving to the rest of the world that reversing deforestation is possible with the right approach.

Where Is Costa Rica?

Costa Rica is located in Central America, between Nicaragua and Panama. It is known both for its stable, democratic government (the country hasn’t had an army since 1948) and for its incredible natural beauty. A whopping 25% of its territory is comprised of protected lands , ranging from tropical rainforests and rugged mountain ranges, to stunning coastlines and volcanic landscapes.

What Sets Costa Rica Apart?

Central America and the rest of the tropics are full of rich biodiversity and thriving tourism industries, so what exactly sets Costa Rica's approach to sustainable tourism apart?

“Our sustainable tourism model has allowed us to seek and attract niche groups of travelers that recognize our differences and the quality of experiences in the country,” Costa Rica’s Tourism Minister Gustavo Segura Sancho tells Treehugger. “The key to success has been to target a demand that can adapt to the conditions the country has to offer.”

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The country contains more than 6% of the world’s biodiversity despite covering only about 0.03% of the surface of the globe. Housing so much biological variety doesn’t just make Costa Rica a dream location for nature lovers, it also makes the country especially vulnerable to climate change.

“Despite being a small developing country, Costa Rica has decades of sustainable tourism efforts underway,” says Segura Sancho. “Our work involves the efforts of individuals and organizations throughout Costa Rica’s public and private sector and demonstrates a unified commitment to protecting not only our environment and economy, but that of the world.”

Sustainable Destination Development

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The country’s tourism model was developed with three primary factors in mind: sustainability, innovation, and inclusiveness. Costa Rica's tourist attractions focus on activities that respect the environment and offer travelers opportunities to reduce their carbon footprint and contribute to conservation and cultural heritage.

The Costa Rican Tourism Institute (ICT) developed a country-wide Certification for Sustainable Tourism back in 1997, which provides tourism companies with guidelines to manage their business sustainably. The certification program educates local companies on the appropriate use of natural and cultural resources, and provides visitors with an official "CST mark" to identify sustainable tourism operators, accommodations, and attractions. As of 2021, over 400 companies in Costa Rica are sustainably certified, and the program has even been recognized by the Global Sustainable Tourism Council and the United Nations World Tourism Organization .

Focusing on long-term sustainability within the tourism industry involved a few risks, for example by making the country a bit more expensive to visit. In the years since the tourism model’s development, surveys have shown that 63% of United States travelers are more likely to consider destinations making an effort to conserve and protect natural resources, while 75% are more likely to consider sustainable destinations. And a study published in the Proceedings of the National Academy of Sciences found that, by the year 2000, protected natural areas in Costa Rica reduced poverty in neighboring communities by 16% by encouraging ecotourism. It would appear that the country’s decades-long investment in sustainable tourism was a good one.

Sustainable Destinations in Costa Rica: Arenal and Monteverde

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Established in 1991, Arenal Volcano National Park protects 29,850 acres and at least 131 species of mammals, including monkeys, sloths , coatis , and jaguars , along with the 5,757-foot Arenal Volcano.

An example of sustainable management in the community, locally owned Arenal Observatory Lodge maintains 270 acres of natural forest and 400 acres of reforestation areas. The hotel donates food waste to local farms as feed for animals, uses biodegradable cleaning products, and contributes to several nonprofit community projects.

Just a few hours away, you’ll find an estimated 50% of Costa Rica’s biodiversity in the Monteverde Cloud Forest Biological Preserve . The preserve is run by the Tropical Science Center, a historic non-government environmental organization that has pioneered conservation efforts, research, ecotourism, and sustainable development initiatives throughout the country.

Manuel Antonio National Park

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A relatively small stretch of Costa Rica’s central Pacific coast home to iguanas, toucans, and monkeys , Manuel Antonio was one of the country’s most visited national parks. In an effort to curb pollution and other consequences of overtourism, the park now limits the daily number of visitors to 600 on weekdays, 800 on weekends and holidays, and completely closes the park once a week. The park was awarded the ICT Elite Certificate of Sustainable Tourism in 2021.

Tortuguero National Park

Located on Costa Rica's north Caribbean coast, Tortuguero boasts the largest green turtle nesting site in the Western Hemisphere. Working alongside the Sea Turtle Conservancy , one of the world's oldest international nonprofits focusing on sea turtles, community stakeholders helped fund the Tortuguero Visitor Center in 1959 to help share information with visitors and locals about threats to sea turtles and their ecosystems. The park protects 46,900 acres and focuses on sea turtle research, also offering a Junior Research Assistant Program for local high school students and educational workshops for younger students.

When's the Best Time to Visit Costa Rica?

Most tourists visit Costa Rica during its high season from November to April to enjoy the sunny, dry weather. However, this time of year can also result in higher costs and overcrowding (which can be harder on the environment). Booking a trip during the shoulder season or low season from May to November also has its advantages, from cheaper accommodations and flights to greener surroundings. Plus, off season is typically when locals who rely on the tourism industry struggle the most, so supporting the economy during this time is a major perk. Keep in mind that Costa Rica has a variety of microclimates, so it's best to consider your specific travel destinations and priorities when researching weather.

The Four Pillars of Sustainable Tourism

By definition, sustainable tourism should not only consider its current economic, social, and environmental impacts, but its future effects as well. This is often achieved by protecting natural environments and wildlife while managing tourism activities, providing culturally authentic experiences for visitors, and creating economic benefits for the local community. According to the Global Sustainable Tourism Council , the four pillars of sustainable tourism include sustainable management, socioeconomic impacts, cultural impacts, and environmental impacts. Costa Rica is a shining example of a destination that prioritizes all four of these aspects successfully.

Sustainable Management

Part of the reason why the ICT’s Certification for Sustainable Tourism standards program has become so successful is because of the multiple certification levels it offers. The tiers inspire tourism attractions and tour operators to work harder in strengthening their sustainability practices in order to work their way up. It has become a model for other countries setting sights on sustainability within their own tourism industries.

In order to diversify the tourism industry, the Costa Rica tourism authority also launched an Integral Management of Tourism Destinations program in 2018, with the goal of helping in the development of 32 tourism centers around the country.

Socioeconomic Impacts

Using a Social Progress Index (SPI), the ICT measures the wellbeing of tourism communities across the country. The SPI considers factors like quality of life, basic human needs, level of opportunities, and social welfare rather than gross domestic product (GDP) or other economic variables, something Segura Sancho says will ensure that tourism remains a positive force for development. “Through the SPI tool, the ICT has discovered the positive effects that our sustainable tourism model has had on local communities, including access to higher education, job opportunities, air quality and waste management, quality of life, improvements in safety and community support networks, women's empowerment, among many others.”

The program also leaves room for plenty of innovation, like the establishment of one of the country’s newest national parks on San Lucas Island . Once containing a wildlife refuge and a former prison building housing some of Costa Rica’s worst criminals, the 1.8-square-mile island is now a cultural heritage and hiking site. Tourists can visit the island to enjoy the vibrant wildlife and take tours hosted by local guides, a feature that has greatly contributed to the area’s socioeconomic development. The ICT also supports the Code of Conduct for the Protection of Children from Sexual Exploitation in Travel and Tourism — an initiative of the World Tourism Organization.

Environmental Impacts

Along with the Certification for Sustainable Tourism, the ICT has also implemented several other programs to encourage and enforce environmental sustainability across the tourism sector. The Ecologic Blue Flag Program , for example, evaluates Costa Rica’s beaches on criteria like ocean water quality, waste disposal, sanitary facilities, environmental education, and community involvement in beach maintenance. Only beaches that succeed in maintaining 90% of the strict criteria receive a distinction and an official Blue Flag to display on the beach. The ICT also advocates for coastal planning and supports programs for small businesses and destination management.

Cultural Impacts

Community tourism, which gives visitors a chance to support indigenous communities, meet local people, and experience authentic cultural heritage, is a growing movement in Costa Rica. Especially in the capital city of San Jose, there are numerous opportunities for tourists to learn about Costa Rica’s architecture, artwork, history, and food. San Jose tourists can purchase a discounted single ticket to visit three of the country’s most popular museums , all within walking distance from each other: the National Museum of Costa Rica, the Museum of the Central Bank of Costa Rica, and the Jade and Pre-Columbian Gold Museum. The ICT also provides resources and maps for self-guided walking tours of the country’s main cities and information on where to find traditional Costa Rican cuisine .

A Commitment to the Environment

In early 2021, the Costa Rica National Forest Financing Fund (Fonafifo) and the ICT launched a carbon footprint calculator to help visitors determine their trip’s carbon footprint and contribute to corresponding carbon offsets. Donations to this program are used to strengthen forest conservation efforts in Costa Rica.

Among other long-term targets, Costa Rica’s National Decarbonization Plan puts the country on track to achieve net zero emissions by 2050 , in line with the Paris Climate Agreement and the UN’s Sustainable Development Goals. Although 98% of the country’s electricity already comes from renewable sources, the plan aims to power 100% of the country’s public transport with electricity by 2050. President Carlos Alvarado Quesada’s Administration plans to work with individuals from both the public and private sectors, scientists, and other industry experts to make this vision a reality.

Establishing parks and refuges in Costa Rica — which now numbers 30 national parks, 51 wildlife refuges, and nine biological reserves — has generated responsible tourism and funded conservation efforts in parts of the country that otherwise may have gone overlooked by visitors. Although a full 25% of Costa Rica is officially zoned as protected territory, local appreciation for nature encompasses the entire country.

“Sustainability has long been embedded in the culture and traditions of Costa Rica,” Segura Sancho explains. “From an early age, children are taught to protect the country’s forests and wildlife, and to appreciate the diverse landscapes and natural beauty that the country has to offer. This inherent love of our surroundings means we want to conserve its many species of animals, insects, trees and birds for decades to come.”

" Renewable Energy - Costa Rica ." International Trade Administration.

" Environment ." Embassy Of Costa Rica In Washington DC.

" Why ‘Going Green’ Pays Off: Sustainable Practices Drive Destination Choice For A Majority Of Travelers, New Research Unveils ." Sustainable Travel International , 2016.

Ferraro, P. J., and M. M. Hanauer. " Quantifying Causal Mechanisms To Determine How Protected Areas Affect Poverty Through Changes In Ecosystem Services And Infrastructure ." Proceedings Of The National Academy Of Sciences , vol. 111, no. 11, 2014, pp. 4332-4337., doi:10.1073/pnas.1307712111

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Economic Growth and Ecotourism in Costa Rica

History of Ecotourism

Ecotourism in Costa Rica started in the 1960s when only 25% of the once entirely forested country remained untouched. Entrepreneurs were curious about how the country could preserve the forest in a way that earned more money than logging it. They built lodging near newly-founded parks and worked with foreign retailers such as Any Mountain to make specialized outdoor gear to handle the terrain. Entrepreneurs also encouraged the government to produce web pages that emphasize the positive environmental impacts of ecotourism.

Benefits of Ecotourism

As a result of these investments, Costa Rica attracted 3.14 million tourists in 2019 . The direct and indirect benefits of these tourists are:

• Money: Costa Rica earned $3.4 billion in just one year— around 5% of the country’s GDP—due to visitor spending. That money can increase the number of people in the middle class and help Costa Ricans avoid the poverty that affects neighboring countries.
• Sustainability: If Costa Rica’s businesses decided to use the remaining 25% of the forests for lumber, there would be none left now. Ecotourism can exist as a source of income indefinitely. In the long run, that can create lasting prosperity and health for the citizens of the country.
• Protected Biodiversity: Places closest to the equator like Costa Rica contain the most species per unit area. Those species have the potential to cure diseases. They act as a harbor of life in the developed world where many are going extinct.
• Proof of Concept: Costa Rica was one of the first countries that had visitors to admire ecological, not historical, sites. People first created the term ecotourism, then, to describe the focus of the visitors. Many places in Africa such as Rwanda, the Democratic Republic of Congo and Benin established national parks in an attempt to reap the same rewards as Costa Rica.

The Future of Ecotourism

Ecotourism in Costa Rica and in other parts of the world is a way to satisfy both the ecological and economical needs of people. This leads to stable and robust governments that can stand up to disturbances like natural disasters. They can also serve their constituents better by preventing vast swaths of the population from sliding into poverty.

That is not to say that it is a perfect solution. Historically, leaders have uprooted indigenous communities to make the parks for ecotourism. Other sectors like Costa Rica’s computer parts manufacturing can use it as a false front to justify unnecessary pollution. Diseases like COVID-19 can reduce traffic, leaving many without jobs. However, under normal circumstances, the positives outweigh the negatives. Countries around the world should at least consider integrating ecotourism into their economies and the lives of their citizens.

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How Much Of Costa Rica’s Economy Is Ecotourism?

Published: November 14, 2023

Modified: December 28, 2023

by Eolanda Sherman

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Introduction

Welcome to the lush and vibrant country of Costa Rica, where the concept of sustainability intertwines with its remarkable tourism industry. Nestled in Central America, Costa Rica is renowned for its breathtaking natural landscapes, diverse wildlife, and commitment to environmental conservation. At the heart of this commitment lies the thriving sector of ecotourism.

Ecotourism, a concept that has gained significant traction in recent years, refers to responsible travel to natural areas that conserves the environment, sustains the well-being of local communities, and educates visitors about the importance of preserving biodiversity. It goes beyond traditional tourism by emphasizing the protection of natural resources and cultural heritage, providing sustainable livelihoods for local communities, and fostering greater environmental awareness.

In Costa Rica, ecotourism plays a pivotal role in both the tourism sector and the overall economy. With its abundant biodiversity and commitment to sustainable practices, the country has become a prime destination for eco-conscious travelers seeking authentic and nature-based experiences.

In this article, we will explore the extent of Costa Rica’s ecotourism industry and its impact on the country’s economy. We will delve into the economic contribution of ecotourism, discuss the challenges and benefits it brings, and shed light on the sustainability measures in place to ensure the long-term viability of this industry.

So, join us as we embark on a journey to uncover the remarkable world of Costa Rica’s ecotourism and discover how this small nation has become a global leader in sustainable travel.

Definition of Ecotourism

Before we delve further into the ecotourism industry in Costa Rica, let’s take a moment to understand what ecotourism truly means. Ecotourism is a form of tourism that focuses on visiting natural areas and engaging in activities that promote environmental conservation and cultural preservation. It is characterized by its commitment to sustainability and responsible travel practices.

Unlike traditional mass tourism, which often has negative impacts on the environment and local communities, ecotourism aims to minimize these adverse effects while providing a meaningful and immersive experience for visitors. It encourages activities such as wildlife observation, nature walks, and cultural interactions, all with a strong emphasis on environmental education and conservation.

One of the fundamental principles of ecotourism is the concept of leaving no trace. This means that tourists are encouraged to minimize their impact on the environment by practicing sustainable behaviors, such as staying on designated trails, respecting wildlife habitats, and disposing of waste responsibly.

Moreover, ecotourism emphasizes the importance of community involvement and empowerment. It seeks to create opportunities for local communities to benefit economically from tourism activities, ensuring that the revenue generated stays within the region and contributes to sustainable development.

In essence, ecotourism seeks to strike a delicate balance between the economic benefits of tourism and the preservation of natural and cultural assets. It promotes sustainable practices, fosters environmental stewardship, and seeks to enhance the well-being of local communities.

Now that we have a clear understanding of what defines ecotourism, let us explore how Costa Rica has embraced this concept and transformed it into a thriving industry that is both economically fruitful and environmentally responsible.

Overview of Costa Rica’s Economy

Costa Rica, a small country in Central America, boasts a vibrant and diverse economy. Historically, agriculture, particularly the export of coffee, bananas, and pineapples, dominated the country’s economic landscape. However, in recent decades, Costa Rica has experienced a significant shift towards a more service-oriented economy, with tourism emerging as a key driver of growth.

Aside from its stunning natural beauty, Costa Rica’s strategic location and political stability have made it an attractive destination for foreign direct investment (FDI) and business outsourcing. The country has established itself as a hub for technology and research-based industries, attracting multinational corporations seeking a favorable business climate and a highly educated workforce.

But it is the tourism sector, and specifically the thriving ecotourism industry, that has captured the attention of visitors from around the world. Costa Rica’s commitment to sustainability and conservation, coupled with its breathtaking biodiversity and well-preserved natural heritage, have made it a global leader in ecotourism.

The tourism industry in Costa Rica has experienced exponential growth in recent years. Visitors flock to the country to explore its lush rainforests, hike its volcanoes, relax on its stunning beaches, and encounter its diverse wildlife. According to the Costa Rican Tourism Board, the country welcomed over 3 million tourists in 2019, contributing nearly $4 billion to the nation’s economy.

In addition to its natural attractions, Costa Rica has also invested in infrastructure development to support the growing tourism industry. The country offers a range of accommodations, from eco-lodges nestled in remote rainforest locations to luxurious resorts along the coastline. Additionally, the availability of adventure and eco-tourism activities, such as zip-lining, surfing, and nature tours, further enhances the appeal for tourists seeking unique and sustainable experiences.

As we delve further into Costa Rica’s ecotourism industry, let’s explore the significant role it plays in the country’s economy and its contribution to sustainable development.

Importance of Ecotourism in Costa Rica

Ecotourism has become a vital component of Costa Rica’s tourism industry, contributing significantly to the country’s economy and promoting sustainable development. Here are the key reasons why ecotourism is of utmost importance in Costa Rica:

Economic Contribution of Ecotourism in Costa Rica

Ecotourism has emerged as a major contributor to Costa Rica’s economy, generating substantial revenue and employment opportunities. Let’s delve into the significant economic contributions of ecotourism in the country:

Challenges and Benefits of Ecotourism in Costa Rica

While ecotourism has brought numerous benefits to Costa Rica’s economy and environment, it also presents certain challenges. Let’s examine both the challenges and benefits of ecotourism in Costa Rica:

Sustainability Measures in Costa Rica’s Ecotourism Industry

Costa Rica’s commitment to sustainability in its ecotourism industry sets an exemplary standard for other nations. The country has implemented a range of measures to ensure the long-term viability of its natural resources and foster sustainable practices. Let’s explore some of the key sustainability measures in Costa Rica’s ecotourism industry:

Costa Rica’s success in developing a thriving ecotourism industry has positioned the country as a global leader in sustainable travel. Enveloped by its breathtaking natural beauty, Costa Rica has harnessed the power of ecotourism to drive economic growth, preserve its unique biodiversity, and empower local communities.

Through responsible tourism practices and a commitment to sustainability, Costa Rica has managed to strike a delicate balance between conserving its natural resources and providing awe-inspiring experiences for visitors. The country’s extensive network of protected areas, certification programs, and community-based tourism initiatives serve as a foundation for preserving its natural and cultural heritage.

Ecotourism has not only brought economic benefits to Costa Rica but has also fostered environmental education and raised awareness about the importance of conservation. Visitors leave Costa Rica with a deep appreciation for its natural wonders and a commitment to sustainable practices in their own lives, creating a ripple effect that extends beyond the borders of the country.

However, Costa Rica’s journey towards sustainable tourism is not without its challenges. The country must navigate the fine line between promoting tourism and protecting the environment, ensuring that infrastructure development is balanced with ecosystem preservation and managing visitor numbers to prevent overtourism.

As the world continues to recognize the value of sustainable travel, Costa Rica serves as an inspiration and a model for other nations seeking to develop their own ecotourism industries. The country’s success in integrating sustainability into its tourism practices demonstrates that economic growth and environmental stewardship can go hand in hand.

Costa Rica’s achievements in ecotourism and sustainability serve as a reminder that through responsible travel, we can contribute to the preservation of our planet’s biodiversity, empower local communities, and create a positive impact on the world around us. By choosing to support destinations that prioritize sustainability, we can all become active participants in the global movement towards a greener and more responsible tourism industry.

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