The pasture land that surrounds Arenal and La Fortuna and parts of San Carlos has long been home to cattle ranchers. Nowadays, tourism dominates the local economy around the volcano, and souvenir shops – when not honoring the volcano – pay homage to the past, with cowboy hats, horse regalia and cowboy boots lining the shelves. Restaurants specialize in steak dinners and hotels offer horseback riding.

Arenal Volcano is supposedly one of the world’s most active volcanoes, and it became so – to the surprise of the locals – with a dramatic eruption in 1968. The eruption killed 87 people, buried three villages and affected more than 232 square kilometers of land, damaging livestock, crops and forest. Many farming families had to move out, which in some ways left an opening for tourism to move in. The Arenal area is one of the few places in the country where the tourism industry is still dominated by locals.

Lake Arenal is the largest lake in Costa Rica and the second-biggest in Central America, after nearby Lake Nicaragua. It receives water from at least three rivers in the region, in addition to a 400-meter tunnel that connects it with the beautiful (and natural) Lake Cote. The lake was an engineering feat for Costa Rica at the time and generates 70% of the country’s electricity. Water from the lake is also used for irrigation in the Pacific area of Guanacaste, which is the most arid part of the country and goes months without rain.

Unlike La Fortuna, where tourists often stay to view the volcano, the area around the lake and the town of Arenal is not particularly touristy. The hotels are mainly cozy mom-and-pop ventures, with an eco-resort or two. The majority of local residents are farmers or farm hands, though the burgeoning real estate market is helping create employment in the construction and services industries.

Around the San Carlos area, you might notice lots of black sheets covering large portions of steep or sloping farmland on the drive up from San José. These are ornamental plant farms, and there are quite a few of them in the region. They take advantage of the region’s heavy rains by growing plants that they either export to other countries or sell in booming real estate markets in Northwest Guanacaste and the Central Pacific.

The area is dotted with pretty little towns inhabited by farm hands and employees of the tourist industry. On Fridays, long lines of small trucks edge their way up and down the mountains to San José, to sell their fruit, vegetables, and fish (Tilapia ponds can be found all over this area of Costa Rica) in the Central Valley’s weekend markets.