The striking juxtaposition of a booming construction sector and surging poverty levels paints a concerning picture in Guanacaste, Costa Rica.
While the real estate market has experienced unprecedented growth, local workers—especially those in construction—find themselves facing dire economic challenges.
A recent study conducted by the Observatory of Tourism, Migration, and Sustainability (Obtur) reveals alarming statistics, indicating that the rates of extreme poverty in the province have doubled between 2021 and 2024.
The report highlights the unfortunate reality where the very individuals employed in the flourishing construction industry are simultaneously grappling with escalating poverty.
This article delves into the intricate economic landscape of Guanacaste, showcasing the disparity between the region’s prosperity and the harsh realities faced by many of its workers.
Key Takeaways
Extreme poverty in Guanacaste has drastically increased, particularly among construction workers, despite a real estate boom.
Local workers are largely excluded from the benefits of construction projects, which focus on high-priced developments.
Rising living costs and stagnant wages in construction and food services are pushing more workers into poverty.
The Economic Disparity in Guanacaste’s Construction Boom
The Economic Disparity in Guanacaste’s Construction Boom
The picturesque province of Guanacaste, Costa Rica, which is often recognized for its stunning coastlines and burgeoning real estate market, is facing a stark reality.
Recent data reveals that extreme poverty has seen a troubling increase from 1.9% in 2021 to an alarming 3.9% in 2024.
This surge in poverty drastically affects workers in key sectors such as construction, lodging, and food services, hindering their ability to enjoy the fruits of the ongoing construction boom.
A comprehensive analysis conducted by the Observatory of Tourism, Migration, and Sustainability (Obtur) highlighted a paradox; although the real estate sector was thriving with significant growth in 2021, the conditions for construction workers deteriorated sharply following 2022.
For these workers, the rate of poverty skyrocketed from 7.4% to 17.1% between 2022 and 2023, while the rate of extreme poverty nearly tripled within the same timeframe, rising from 1.1% to 3.3%.
The hospitality and food services sector also felt the pinch, as non-extreme poverty increased from 13% in 2019 to 15.8% in2023.
Esteban Barboza, a key researcher at Obtur, emphasizes a concerning trend; despite ongoing housing projects that encompass over a million square meters, local workers are not reaping the benefits.
The decline in social housing initiatives in coastal districts like Tamarindo, Sardinal, Nosara, and Sámara has contributed to the issue, as these areas are increasingly populated with high-priced developments that are often out of reach for the average resident.
The accommodation and food services sector employs about 14.8% of the workforce, with an average monthly income of 418,000 colones, while the construction sector employs 8.9% of the workforce with even lower earnings averaging 369,000 colones.
These wages are grossly inadequate in light of the rising cost of living, further exacerbating the cycle of poverty.
Even with the allure of tourism and potential economic prosperity in coastal districts, regions like Cabo Velas, Veintisiete de Abril, and Nosara remain among the most economically disadvantaged in Costa Rica, grappling with high poverty rates and poor social development indicators.
Here, unemployment rates trail only behind those in the Central Pacific region.
Barboza contends that the expectation was for construction workers to benefit from the real estate boom; instead, many face persistent unemployment and meager wages, particularly in the most vulnerable communities.
This alarming disconnect highlights a growing economic disparity that threatens the stability and well-being of Guanacaste’s workforce.
Impact of Rising Cost of Living on Local Workers
As the economic landscape of Guanacaste continues to evolve, the effects of the rising cost of living become even more pronounced.
Local workers, particularly in the construction, lodging, and food services sectors, are experiencing financial strain as wages fail to keep pace with the escalating demands of daily life.
The construction sector, once a beacon of opportunity, has seen its workforce’s poverty rate more than double within a year, illustrating how external economic advances do not benefit all equally.
Esteban Barboza from Obtur notes that this widening gap is fueled in part by the influx of luxury housing projects that cater to affluent buyers rather than providing essential affordable housing for local residents.
Furthermore, the limited availability of socially responsible housing developments in idyllic coastal areas exacerbates the situation, leading to a pressing need for targeted economic policies that prioritize the welfare of local workers.
Unless measures are taken to address these disparities, the promise of a thriving economy may remain unattainable for many residents in Guanacaste.
