Extreme poverty in Costa Rica’s Guanacaste province has surged from 1.9% in 2021 to 3.9% in 2024, doubling in just three years. Workers in construction, lodging, and food services have been hit hardest, according to a recent analysis by the Observatory of Tourism, Migration, and Sustainability (Obtur) at the Chorotega Regional Headquarters of the National University (UNA).
Although poverty initially decreased in 2021 due to a real estate boom along Guanacaste’s coasts, it has risen sharply since 2022. Construction workers experienced the largest spike, with poverty jumping from 7.4% in 2022 to 17.1% in 2023. Extreme poverty within the sector also tripled, climbing from 1.1% to 3.3%. Similarly, non-extreme poverty in lodging and food services rose from 13% in 2019 to 15.8% in 2023.
“While Guanacaste has over a million square meters of housing projects processed, the benefits are not reaching local workers,” said Esteban Barboza, a researcher at Obtur. “Social housing projects in key coastal districts like Tamarindo, Sardinal, Nosara, and Sámara have declined, leaving high-priced developments that are unaffordable for most residents.”
Economic Growth vs. Local Challenges
The accommodation and food services sector, which employs 14.8% of Guanacaste’s workforce, offers an average monthly income of only 418,000 colones. Construction, the province’s third-largest sector, employs 8.9% of the workforce, with an even lower average income of 369,000 colones. These wages are insufficient to cover rising living costs, pushing many workers into poverty.
Despite its economic potential, Guanacaste’s coastal districts remain among the most socially and economically disadvantaged areas in Costa Rica. Cabo Velas, Veintisiete de Abril, and Nosara continue to report high poverty rates, low social development indicators, and unemployment levels second only to the Central Pacific region.
“In theory, those working in construction should benefit from the housing boom, alongside lodging and food services workers,” Barboza explained. “But the reality is that unemployment and low wages persist, particularly in the most vulnerable areas.”
