Creating Ecotourism in Costa Rica, 1970–2000

Between the 1970s and the 2000s, Costa Rica became established as the world’s leading ecotourism destination. This article argues that although Costa Rica benefited from biodiversity and a pleasant climate, the country’s preeminence in ecotourism requires more than a natural resource endowment explanation. While previous literature has emphasized the efforts of the government and nongovernment organizations, this article demonstrates the critical role of small entrepreneurs in the co-creation of the industry. Making extensive use of oral history, the article explores the role of tour companies in drawing affluent Western ecotourists to the country, and of the creators of ecolodges and other forms of accommodation in providing them with somewhere to stay. Clustering created positive externalities, drawing new entrepreneurs into the industry who could also learn from knowledge spillovers. There were downsides to the new industry. The creation of the national image of a natural paradise enabled many businesses which were not environmentally sustainable to free ride on the green image.