The uniqueness of the island, the faro, and the abundant diversity of coral and marine habitats led to the Caye being declared as a protected area in 1981 under the National Park Systems Act.

[3] Laughing Bird Caye is an island located 12 miles (19 km) off the coast of Placencia village in the Stann Creek District of Belize on the western side of Victoria Channel.

Laughing Bird Caye is also the southernmost island in the central lagoon of the Belize Barrier Reef.

This Laughing Bird Faro is separated from the mainland and the barrier reef by deep channels all around.

[2] A 1.2m ha site off the coast of Belize, comprising the nation’s offshore and barrier islands, has been designated an Important Bird Area (IBA) by BirdLife International because it supports significant populations of several resident, passage or breeding bird species, including white-crowned pigeons, red-footed boobies, roseate terns, Yucatan vireos, black catbirds, and golden-winged and cerulean warblers.