Jaco, Costa Rica is a great beach town for anyone backpacking through Costa Rica. Its beaches are lined with horses and trainers offering horse rides up and down the beach for a cheap price. Jaco is located on the Central Pacific coast of Costa Rica so it’s a great spot for surfing and surfers come from all over the world to surf here.
There are plenty of hostels to stay at along the beach and the main street of Jaco and I can personally recommend Room2Board hostel and Surf School. There is great nightlife and all of the popular backpacker hostels are located along Jacó Beach, which is adjacent to the main street with all the nightclubs and bars.