Both natural and anthropogenic factors are changing coral-reef structure and function worldwide. Long-term monitoring has revealed declines in the local composition and species diversity of reefs. Here we report changes in coral-reef community structure over 12 yr (2000–2012) at 17 sites and three spatial scales (reef, gulf and country) in the Tropical Eastern Pacific (Panama). We found a significant 4% annual decline in species population sizes at the country and gulf scales, with significant declines ranging from 3 to 32% at all but one reef. No significant temporal change in expected richness was found at the country scale or in the Gulf of Chiriqui, but a 7% annual decline in expected species richness was found in the Gulf of Panama. There was a 2% increase in community evenness in the Gulf of Chiriqui, but no change in the Gulf of Panama. Significant temporal turnover was found at the country and gulf scales and at 29% of the reefs, a finding mostly explained by changes in species abundance, and losses and gains of rare species. Temporal trends in alpha and beta diversity metrics were explained by water temperature maxima, anomalies and variation that occurred even in the absence of a strong El Nino warming event.