Local History, Culture and Economy

Historically and culturally, the southern zone is a peculiar part of the country. In a way, it’s where the country’s many attributes converge in a single place. Intense nature, indigenous communities, the legacy of the all powerful United Fruit Company, a duty-free zone, and the modern bustling city of San Isidro (apparently the fastest growing urban center in the country) are all found there.

To begin with – and probably most significantly as far as economic and cultural history – this area, particularly Golfito, is synonymous with the United Fruit Company. In the late 1800s, the company established banana and pineapple plantations in the area to produce export products for its U.S. market. United Fruit was by far the largest employer, and the local economy came to rely almost entirely on this “father figure” to provide them with work, medical care, and public works infrastructure.

After worker strikes that caused the company to pull out of the area in the mid 1980s, the area struggled economically and had to deal with a great deal of poverty. (To this day, most Costa Rican immigrants found in the U.S. are from the southern zone.) The government responded by opening a duty-free zone in the area to encourage more visitors (you have to stay overnight to make your purchases). Costa Rica’s import taxes on appliances and electronics are high enough to make it worthwhile for Central Valley residents to make the trip instead of buying at home.

Agriculture is a major contributor to the local economy and the city of San Isidro, located about 30 minutes from Dominical, is a transportation hub for coffee producers, cattle ranches, and farmers, as well as for marine products. As such, the city is growing quickly.

Many expatriates in the southern zone actually prefer to live near San Isidro. The views are fantastic, land prices are lower, the municipality is well run, services and shopping are close by, and there is a better chance of integrating with local culture, as most Ticos in the southern zone live in the San Isidro area.

The Osa Peninsula holds different attractions. Corcovado National Park is a big tourism draw, and the area’s natural richness has recommended it to adventurous foreigners and boutique hotel owners. In the past, the peninsula’s main town, Puerto Jiménez, was base for gold miners, and the waters of Osa’s rivers are still believed to carry gold silt down from the mountains in their waters. Puerto Jimenez was also an old logging town.

The area has a wealth of history and culture and this section will really only be able to touch on a small part of it. There’s plenty more to dig up by chatting with former United Fruit Company employees, visiting old families, and stopping by indigenous reserves.