The Costa Rica Gentrification Debate: Are Foreign Tourists and Residents Welcome?

In the light of recent Costa Rica gentrification protests and online debates, we look at the issue from the point of view of locals, foreign residents, and the tourism industry.

A growing debate over whether foreigners are truly welcome to live in Costa Rica has intensified following protests against gentrification, with expats and locals sharing a variety of views across social media platforms and public forums.

The discussion comes in the wake of last Friday’s protest outside Costa Rica’s Legislative Assembly, where a movement called No a la Gentrificación presented a manifesto demanding stricter controls on foreign property purchases and immigration. Their specific demands included regulation of foreign land purchases, elimination of the $150,000 investor visa program that grants residency through property investment, and an end to “visa runs” that allow foreigners to live in Costa Rica without proper documentation.

Protesters highlighted several other concerns, including the privatization of beach access in tourist areas and inequitable distribution of water resources. Some point to specific cases in Guanacaste, where development has restricted some public beach access despite existing laws protecting these rights. Water resource management is another flashpoint, with communities questioning why water is allocated to luxury developments with private pools and golf courses while local neighborhoods face shortages.

This song is trending in Costa Rica due to gentrification. The song says several times “I don’t want them to do with you what they did with Hawaii” pic.twitter.com/ZnWxpJ3INJ

— Jeff Webs (@JeffWebs007) January 11, 2025

Tourism Industry Points to Different Culprit

However, tourism industry professionals suggest the focus on foreign residents and traditional tourists misses the real issue affecting communities. “This isn’t about beach access or traditional tourism,” states one industry expert. “It’s based on increased housing costs for local people, generated by reduced opportunities and increased demand. The main culprit? Airbnb.” They point to similar situations in cities around the world like Toronto, where short-term rental regulations exist – unlike in Costa Rica.

“Stop attacking traditional tourists,” they emphasize. “They’re not to blame for rental prices tripling in Santa Teresa, Puerto Viejo, Tamarindo, and Monteverde.”

The explosion of unlicensed vacation rentals appears to support this view. Properties that once provided long-term housing for residents are increasingly converted to vacation rentals, where owners can earn a monthly rental income in just a few days. This shift has particularly affected locals, who find themselves priced out of the communities where they work. The vacation rental industry operates largely untaxed, potentially costing the government million of dollars each year in unrealized tax revenue that could help address infrastructure and housing challenges.

It’s worth saying that Costa Rica is not alone here. The situation mirrors similar challenges around the world, in countries like Spain and Portugal and cities like Budapest and Buenos Aires. However, the impact feels particularly acute in Costa Rica’s beach communities due to their small size and limited housing alternatives. Industry experts note that while expat residents often contribute positively to local economies through business creation and long-term investment, unregulated vacation rentals can create market distortions without providing similar community benefits.

Divided Perspectives on Foreign Presence

The protest and subsequent social media discussions have left many foreign residents and potential immigrants questioning their place in Costa Rica. “Locals make it pretty clear that we’re welcome to visit but that we are NOT welcome to move there,” noted one potential immigrant in a popular Costa Rica expat Facebook group, citing concerns about being blamed for higher living costs, water shortages, and environmental pressures.

The response from current residents, both foreign and local, paints a complex picture of life in modern Costa Rica. Long-term expat residents largely report positive experiences, with many emphasizing the importance of attitude and integration. “We haven’t had anyone be unwelcoming to us at all,” shares one Canadian resident. “The people in general here are happier and nicer than where we came from.” Another resident of eight years adds, “I have had no negative experience with Ticos ever if you don’t act like they owe you something and be kind.”

Costa Rican voices reveal more nuanced views about the changing dynamics in their communities, particularly in popular beach areas where many feel priced out of their own country. “We can still be kind, but that doesn’t mean we’re content with the situation,” explains one local professional. “Nature is suffering, biodiversity is being destroyed, prices are rising, and it’s difficult to feel optimistic when the cost of living continues to increase while salaries remain the same.”

“All of my Tico friends are young professionals earning 800,000-1,500,000 colones either living with their parents or renting a 350,000 studio to be close to work,” shares another resident. “They can’t buy a house, get married or have kids.”

Yet others argue that foreign presence brings significant benefits. “Expats living here spend money and create jobs,” notes a business owner. “If we are ethical about it, the jobs we create are legal ones with all the required fringe benefits.” Another business owner reports saving government agencies significant money through fair pricing practices, highlighting how foreign-owned businesses can benefit the local economy.

Hoy en efectos de la gentrificación en Costa Rica… este “studio apartment” cerca de Nosara se alquila en $975 al mes más servicios. pic.twitter.com/WJXvyMrQqp

— Raquel (@RacheliuxCastro) September 19, 2023

Keys to Integration

The discussion increasingly focuses on how foreign residents can successfully integrate into Costa Rican communities. Many suggest the real issue isn’t with foreigners themselves but with how some choose to live in Costa Rica. “I think the problem is Americans moving to CR and still being US centered. Building your expat gated communities. Expecting bureaucracy to work like it does in the US. Not speaking the language,” observes one commenter.

Successful integration stories often share common elements. Long-term residents emphasize the importance of learning Spanish, becoming legal residents, paying into the social security system, shopping locally, and actively participating in community life. “Make an effort to be a job creator. If you hire locals, do so properly,” advises one established resident.

Despite everything, many Costa Ricans maintain that foreigners who make an effort to integrate remain welcome. “You are welcome in my country, just try to help us making a better country. Not isolating in expensive places,” offers one resident. Another adds, “If you embrace and become a part of your new home here in Costa Rica, the people here will embrace you right back.”

However, the welcome comes with growing calls for more responsible development and better integration into local communities. While much of the current debate has focused on foreign residents themselves, both locals and industry experts increasingly suggest that addressing broader issues regarding cost of living and spiraling rents could do more to ease community tensions than questioning the presence of foreign residents who choose to make Costa Rica their home.