Protests and Legal Challenges Halt Major Tourism Development in Guanacaste’s Papagayo Gulf

The Constitutional Chamber has suspended the Bahía Papagayo project in Playa Panamá after protests erupted over the planned logging of nearly 750 trees in a sensitive coastal zone.

By: AXL Media

Published: Apr 25, 2026, 10:12 AM EDT

Source: The Tico Times

The Catalyst: The Logging of 748 Trees

The controversy intensified after the National System of Conservation Areas (SINAC) issued a resolution on April 9, 2024, authorizing the removal of 748 trees to make way for the Bahía Papagayo real estate and tourism project. Environmental coalitions, including Salvemos Playa Panamá, Salvémonos, and Antigentrificación Costa Rica, quickly organized demonstrations at the site. They contend that the forest cover is essential for capturing groundwater in a region already prone to severe dry-season water stress.

While the Ministry of Environment and Energy (MINAE) defended the permit, stating it was based on a meticulous forest inventory, protesters dismissed the government's argument that reforestation could compensate for the loss. They maintain that newly planted saplings cannot replicate the complex ecological functions of an established coastal forest, particularly regarding local biodiversity and soil stability.

Legal Suspension and Constitutional Review

The conflict shifted from the streets to the courts when Magistrate Fernando Cruz Castro issued a ruling connected to an action of unconstitutionality. The court’s decision has effectively frozen the project while it reviews the regulations governing the Papagayo Gulf Tourism Project. This suspension has caused significant friction between the judiciary and the executive branch.

Tourism Minister William Rodríguez expressed concern over the ruling, arguing that the Papagayo project is of "national interest" and provides essential employment for the Guanacaste region. The Costa Rican Tourism Institute (ICT) has since requested a clarification of the ruling's scope, fearing that the legal uncertainty could deter future foreign direct investment in the area.