UN Sustainable Development Report
Red List Index
Global Gender Gap Rank
Climate Change Performance Index
Human Development Index
Population: ~5 million
Capital: San José
Language: Spanish
Currency: ₡ Colon
Tourism contribution to GDP: 10.8% (2019, WTTC)
Discover the pura vida spirit!
Officially known as the Republic of Costa Rica, this Central American country is one of the best known countries in the world and a pioneer for sustainable tourism, going back decades.
Politically and socially stable, it is a peaceful presidential republic with a long-standing commitment to democracy, having abolished its army in 1949 and focused on the power and value of its natural heritage.
The constitution guarantees social, economic, and educational rights, contributing to high literacy rates and a well-educated workforce.
Costa Rica’s commitment to environmental protection and sustainable practices has made it a leader in ecotourism.
There are also regional variations:
Coastal: The Pacific and Caribbean coasts maintain high temperatures year-round, often exceeding 30°C (86°F). The Caribbean coast tends to have more consistent rainfall throughout the year compared to the Pacific coast, which has a more defined dry season.
Central Valley: This region, including the capital San José, enjoys a milder climate with temperatures ranging from 20°C to 25°C (68°F to 77°F). The elevation contributes to cooler nights and pleasant daytime temperatures.
Mountainous: Higher elevations experience cooler temperatures. Areas like Monteverde can be much wetter and cooler, creating a unique cloud forest environment.
Temperatures are projected to increase by 1 to 2°C by 2050 with warming more pronounced in the lowlands than in the highlands. The North Pacific region may see maximum temperature increases of 3 to 8°C. The number of dry days is expected to increase with rainfall expected to decrease -13% to -25%. However, the increase in the frequency of more intense precipitation events and extreme events such as storms and floods is expected, particularly for the Caribbean Coast.
“Pura Vida” is a phrase that you will hear and see everywhere in Costa Rica, present in the vocabulary for over 50 years and meaning “pure life” or “simple life”. But more than just a phrase or slogan, it is a way of life that encapsulates Costa Rica’s national ethos.
Costa Rica is known for its friendly, multicultural, and multilingual society, which includes influences from indigenous groups like the Bribrí, Cabécar, Maleku, Teribe, Boruca, Ngäbe, Huetar, and Chorotega as well as African, Chinese, Jewish, Lebanese, and Italian immigration.
The country is renowned for its artistic expressions, including music, dance, theatre, cinema, and handicrafts. Visitors can explore these through various cultural events and take home unique handicrafts made by local artisans
Costa Rica boasts cultural wonders such as the oxherd and oxcart, recognised as a masterpiece of UNESCO Oral and Intangible Cultural Heritage, and the Guayabo National Archaeological Monument. Other cultural traditions include creole swing dance, Limón calypso, and traditional Chorotega ceramics.
Costa Rica has a long history of democratic traditions and has been without an army since 1948. The funds saved from not maintaining armed forces are invested in improving the standard of living, contributing to the social peace and stability that make Costa Rica an attractive destination
Costa Rican culture emphasises family and leisure, with a strong tradition of festivals, community events, and music and dance. Football (soccer) is the most popular sport.
Costa Rica is bordered by Nicaragua to the north, Panama to the south, the Caribbean Sea to the east, and the Pacific Ocean to the west.
Covering an area of approximately 51,100 square kilometres, it also has two major mountain ranges: the Cordillera Volcánica and the Cordillera de Talamanca.
Costa Rica is known for its rich biodiversity, hosting nearly 6% of the world’s species despite covering only 0.03% of the Earth’s surface.
Over 25% of Costa Rica’s land is protected through national parks, private reserves, and wildlife sanctuaries. This commitment to conservation has made the country a pioneer in ecotourism, attracting visitors who are interested in sustainable travel experiences.
Stunning landscapes and attractions include rainforests, cloud forests, coastal environments, and volcanoes such as Arenal Volcano, Monteverde Cloud Forest, Corcovado National Park and the Osa Peninsula, renowned for their biodiversity and natural beauty.
Notable wildlife includes: tapirs, jaguars, sloths, scarlet macaws, monkeys and sea turtles.
Historically reliant on agriculture, Costa Rica’s economy has diversified.
The services sector now dominates, contributing about 75% of GDP, followed by industry (approximately 20%) and agriculture (around 5%).
Employment is thus primarily in services (69%), followed by industry (18.6%) and agriculture (12.9%).
(Eco)Tourism is a significant economic driver, attracting millions of visitors annually.
Other major exports include medical instruments, bananas, integrated circuits, and tropical fruits. : $17 billion in 2022.
However, unemployment is around 11.5% in recent years, with poverty levels hovering around 20%.
Costa Rica faces challenges related to a growing debt and budget deficit, requiring ongoing efforts to improve public sector efficiency.
Until the 70s, Costa Rica’s economy was primarily based on agriculture and cattle farming which led to significant deforestation of lands. Due to agricultural expansion, along with logging and land development, by the 1980s only a third of original forest cover remained.
The foundation for sustainable tourism was laid in Costa Rica beginning with its commitment to preserving natural resources.
In 1963 the Cabo Blanco National Reserve was established through privately bought land to create a protected area following a couple’s dream of finding happiness in harmony with nature.
This was followed in 1970 with the creation of Costa Rica’s first national parks: Poas Volcano National Park was first, followed by Cahuita to protect its coral reef, and Tortuguero to safeguard the endangered nesting sea turtles and manatees’ marine habitat.
Costa Rica also now recognised the economic potential of its natural resources for tourism, and continued expanding its national park system throughout the 1970s and 1980s. By the 1990s, Costa Rica had become known as an ecotourism destination, and Forestry Law (1996) imposed strict regulations on logging and land use.
In 1997, the Payment for Environmental Services (PES) program was introduced, incentivising landowners to preserve the environment by providing financial compensation for actions like biodiversity conservation, water protection, and carbon storage. Funded by taxes on fossil fuels, this program has protected over one million hectares of forests and provided significant financial support to landowners.
Costa Rica today has over 160 protected areas, of which 30 are National Parks, the rest designated wildlife refuges, biological reserves, national monuments, forest reserves, national wetlands, and protected zones. These are managed under the umbrella of SINAC (Sistema Nacional de Areas de Conservacion – National System of Conservation Areas), a department of Costa Rica’s Ministry of Environment and Energy established in 1994.
The government has played a crucial role. The first tourism related regulation was passed in 1931 by for the creation of the “National Tourism Board”, an entity that operated until August, 1955, when the institution known today as the “Costa Rica Tourism Board” was created by law
In 1997, Costa Rica introduced the Certificate for Sustainable Tourism (CST) programme, the first sustainable tourism certification in the world, evaluating businesses based on their practices. This has been instrumental in encouraging businesses to adopt environmentally friendly and socially responsible practices, and not just in Costa Rica but as a model globally.
In the early 2000s, the concept of rural community tourism began to take shape, and in 2003 an alliance of organisations was formed to enhance and promote it. The United Nations Program for Development (UNPD) provided financial and technical assistance to define and characterise community rural tourism as a national tourist product, working alongside the ICT. The sector was further supported by the Government passing laws on rural tourism, encouraging its development and dedicated to supporting rural inhabitants and their communities with links to its broader ecotourism to:
Costa Rica was one of the early adopters of the Social Progress Index (SPI), recognising its value in measuring societal progress beyond traditional economic indicators.
It pioneered the application of SPI to a major economic sector – in this case tourism – to measure its effects on local communities. And then developed a tool to measure the well-being of individuals living in tourism destinations using the SPI methodology. This approach incorporates multidimensional indicators to assess the sustainability of tourism destinations.
Costa Rica has subsequently used the SPI as a guide for developing new tourism policies and launching public-private collaborations that positively impact local communities. It has also allowed for benchmarking between different territories within Costa Rica, to help identify areas of strength and opportunities for improvement.
At a country level, Costa Rica has consistently ranked among the best performers on the Social Progress Index, particularly in categories such as basic human needs, foundations of wellbeing, and opportunity, despite having a lower GDP than many developed countries and more advanced economies.
According to its results, 93.8% of respondents believe that tourism is beneficial to their community, indicating a generally positive view of tourism’s impact (www.socialprogress.org).
Compared to non-tourism areas, residents in tourism destinations:
These results reflect the economic benefits, infrastructure development and improved services associated with tourism. As such the application of the SPI in tourism in Costa Rica has fostered the role of tourism as a catalyst for sustainable development.
Costa Rica began investing in renewable energy infrastructure as early as the 1950s. While hydropower provides 80% energy, Costa Rica has diversified into other renewables like wind, geothermal, and solar to provide resilience: abundant rivers and dams, tropical climate, and volcanic activity provide natural advantages.
As a result Costa Rica consistently generates over 98% of its electricity from renewable sources, primarily hydropower, geothermal, wind, and solar. In some years, it has achieved 100% renewable electricity for extended periods. This economically and politically helps Costa Rica to avoid dependence on imported fossil fuels and provides stable electricity prices. Its small population and lack of heavy industry make its situation somewhat unique.
That said, challenges remain as Costa Rica still relies heavily on oil for transportation, and climate change poses risks to hydropower reliability.
Thanks to its progressive decision-making, Costa Rica has successfully reversed deforestation, with around 3/4 of its land now covered in forest (from 1/3 in the 80s), protecting 5% of the world’s biodiversity.
Strong government policies, long-term planning, commitment and support, including from the public have been crucial. This includes setting ambitious goals like becoming carbon neutral by 2021 (later revised to 2050).
These initiatives have made Costa Rica one of the top destinations in the world for ecotourism and sustainability, thus a model for sustainable tourism worldwide.