This article reflects on the Costa Rican experiences with ecotourism by assessing the positive and negative environmental, economic and social impacts of ecotourism development at four tourist destinations-Manuel Antonio, Monteverde, Tortuguero and ASCOMAFOR. These destinations represent different stages of tourism development. The assessment shows that the development of ecotourism has a dilemma character. Compared to alternative land-use options, ecotourism remains a promising development strategy. However, it should be embedded in a broader process of capacity building.