Costa Rica is a small Central American nation that has gained an international reputation as a leader in environmental conservation. This has formed the base for its highly successful and lucrative small-scale ecotourism industry. However, there are threats from high rates of deforestation and expanding large-scale tourism that is trading on strong environmental credentials, so it is appropriate to conduct this policy analysis on such a significant ecotourism area. The paper develops an ecologically sustainable economic framework, drawing on the works of Adolph Lowe (1893–1995) and Michał Kalecki (1899–1970), to examine the Costa Rican experience and then analyse lessons for general policy development of any ecotourism area. The analysis is conducted from a political economy (and not a tourism management) perspective on the trade-offs between small-scale and large-scale ecotourism.