G 155 Al 253 / 1989 This report is the outcome of a one mcnth study sponsored by Conservation International through its Mexico Program and Ernst 6 Young to begin a synthesis of available infonoation on ecotourism. This research lays the grcundwcrk for evaluating whether ecotourism is a viable method fcr.promoting and financing conservation and economic development in less developed countries (LDc's). This study focuses on the marketplace for nature-based travel in the U.S. and the variables which determine the impact of travel c" the destination l ***t****t***t*****t***************** community.

The cutput of this study includes this written report and accompanying exhibits, a final presentation to the staff of Conservation International and Ernst 6 Young, a summary c.f interviews conducted, the beginrings of a database of ccntacts in the field, and a file collection of research including articles from academic ECOTOURISM: journals and the popular press,reports from other organizations, and literature from tour operators and tourism offices. THE UNEASY ALLIANCE The goal of"ecotourism I0 is to capture a portion of the enormous global tourism market by attracting visitors to natural areas and using the L-eve"ues to fund local conservation and fuel economic development. One journalist explains, ecotcurism is a "brash, pragmatic "ew concept that mires modern conservation theories with Conservation I"ter"atio"a1 good old-fashioned money-making...it is the point at which capitalism and conservation join together to fight for the same cause: wildlife Ernst L Young preservation, at a profit." (Mexico Journal, 1989) ""fortunately, this alliance between business and conservation is not always Fall 1989 harmonious or easy to achieve. While there are often economic incentives tc entice business people to invest in tourism, there ale not always the incentives tc make them invest in ecologically-sound projects that benefit local people. First in conservation Inter"atio"al*8 Serias ot Ecotourism is currently a "hot" topic. The fury is predictable. working Papers om ecotourisr It is a mcvement that potentially involves billions of dollars. high- level politics, the survival of threatened cultures, and the preservation of rapidly disappearing wildlands. Advocates support th< concept as a forceful method for achieving the elusive goal of "sustainable development." Critics argue that it is an experiment that has been tried and failed. They Warn that conservationists intoxicated by the promises of ecctourism will open the gates to destruction on the very lands they are trying tc protect. "The big problem with tourists," the Philadelphia Inquirer reports, "is they often defile the very thing they have core tc revere. Even the most respectful by dint of their numbers and commercial potential, vind UP destroying the authenticity and the environment of the places they

1 isit." (PI, 1989) "any in the debate SrS gravitating to the middle Tourism is not Solely responsible for what some consider economic round, recognizing both the potential and the pitfalls. DL- neo-colonialism. One comnrentator concludes, "the influence of foreigners is less intrusive today than it Was 20 or even 10 years The relevance of ecotourism rSSts on three propositions: ago. Now, TV and advertising will have a more pervasive effect on Social morSS than will tourism."(South, 1989) often tines It is not . ecotourism can promote and finance conservation; tourism, but poorly planned tourism, that can be blamed for deleterious effects. Ecotourism, in contrast, is by definition a . ecotaurism can promote Snd finance economic development; and planned approach which must carefully assess the~impacts and benefits before development begins. Ecotourism can even enhance local cultural . ecotourism gone amok can destroy the rSsourcSS it seeks. to protect. integrity because *Ucaref"lly designed interpretive programs can make the park a focus for fostering local knowledge, Skills and lifestyles !onsenration is enhanced when host governments are convinced that to perpetuate traditional values among indigenous people and to .here is an economic rationale for establishing protected areas. A rell-known Study conducted in Kenya's Amboselli National Park valued educate outsiders about their culture." (Kutay, 1989) !ach lion at $27,000 per year and each elephant herd at $610,000 per The economic rewards from either conventional or nature tourism ear in terms af visitor revSn"SS. Another study showed that the park are also under debate. Commenting on the situation in Per", the rielded net earnings (mostly from tourism) of $40/hectare per year Bartolome de las CaSaS Andean Studies Center Says 'ltourism has not rhich was fifty times greater than the net profits expected from been the answer to the region's development problems... much of the optimistic agricultural projections. (Both of theSe studies are cited money coming in SS a result of tourism returns to privately-owned ." McNeely, 1988) These studies explain the Slogan that in East companies, many of which are not based in Peru." (Cunningham, 1989) ifrica "wildlife pays so wildlife Stays." (Kutay, 1989) The World The Center does not believe tourism ha translated into a tourist boom leSo"rcSS Institute pinpoints the importance of tourism by concluding, for the area (Cuzco) and a resident addS that those that do work a5 'although Sow 7,000 protected areas exist throughout the world, craftspeople, for example, '...receive very little and work St comparatively few enjoy de facto protection, and most of those that xploitative rates." (Cunningham, 1989) Again, the goal of ecotourism lo, can attribute their survival to the revenue they earn from is to rely an country rSSourceS and businesses to maximize the :o"riSm." (as cited in Warner, 1989) economic benefits for the local area. Tourism ha5 made a dramatic economic impact on many less Tourism's direct assaults can be compounded by indirect damages. developed countries. According to U.N. statistics tourism generated Wealthy tourists often drive up the cost of living in the visited area j55 billion for developing countries in 1988, making it the second and demand Scarce reso"rceS, Such as firewood, causing S local 1SrgSS.t earner after oil. (South Magazine, 1989) In Kenya tourism scramble to meet these needs even if it means cutting down the last Should be the top earner cf foreign exchange in 1989, surpassing tea remaining trees. Moreover, as tourism accounts for an increasingly and coffee: in Egypt tourism takes the number two Slot; and in Mexico higher percentage of the economy, the region becomes dependent on the tourist trade accounts for 4% of its gross domestic product. these revenues and vulnerable to fluctuations in demand. This. totalling $2.5 billion in 1988. (South Magazine, 1989) In addition to undermines the original goal of "sing tourism to diversify the bringing in badly needed foreign exchange, to"Fism is lauded for its economy. The UN reports that whereas tourism receipts account for 3% role in diversifying the economy, bolstering employment, Spreading of GNP in western countries, they maka up between 25 and 52% of GNP in benefits to rural areas, encouraging the rational "Se of marginal the Caribbean and the Seychelles. In reviewing the overall impact Of lands, and promoting infrastructure projects which serve other Sectors tourism JeSus Delgada, a professor of preservation management at the of the economy. University of sao Paula, summarizes the tourism threat by remarking, "tourism can no longer be Separatad from other man-made disruptions of Yet, tourism has a darker side, and critics claim its costs far the ecology, such as mining and deforcStation.n (Harrington, 1989) outweigh its benefits. Travel to natural areaS in some countries contributed to the Serious destruction of the environment including Thus the tourism dilemma is Set. Nature tourism promotion offers trail SroSiOn and pollution from litter, disruption of wildlife huge reSo"rceS, and promise, for the conservation of these areas and migrations. buildup of algal growth in water supplies due to improper the economic benefit of surrounding communities. These reSo"rcSS may waste disposal,and depletion of natural rSSo"rcSS from hunting and be Sought, however, at the risk of jumping out of the proverbial pot plant collection. Tourism hae also trampled over several cultures - into the fire. What should be done? HOW can Conservation its intrusion most dramatically portrayed by whole villages deciding International and Ernst & Young harness the power of tourism while to move to escape the onslaught. Steering clear of the mistakes of the past? one possibility is the promotion and implementation of "ecotourism" policies and programs-, Properly planned and administered ecotarism m.ay make it possible, In certain natural areas, to manage the tourism flow in order to maxipize the benefits and limit the negative impacts. The complete resolution PART I: SETTING THE STAGE of the ecotourism debate is beyond the scope of this paper. hut by focusing on e few key areas Of the debate there is hopefu+ly InsIght into where the leverage points are for cultivating effective ecotourism policies end programs. This paper examines the nature- Ecotourism is a concept still-in its infancy. Consequently, based travel marketplace in the U.S. It also discusses come of the there is considerable confusion over what ecotourism "is" es well as variables which determine what effect tourism will have on the host debate regarding its value. The term has eluded firm definition country. This overview is intended to analyze current conditions and because it is a complex notion which ambitiously attempts to describe expose e~ees where improvements can be made. an activity, set forth a philosophy, end espouse a model of development. Conservation International, Ernst and Young, and other conservation-minded groups should escalate their involvement now.. The There are at least ten terixs, and many more variants, which are opportunity is ripe. The need is great, the awarenese is growing, often wed interchangeably with ecotourism. To distinguish between initiatives are being launched, and major funding sources are these terw is more than a semantic debate. The terns are seriously considering sizable projects in this area. The time has substantively different and should he kept separate. The marketing come to make ecotourism a workable concept. However, unless we go language of the travel brochures needs to he disentangled from the below the eurfece of the debate end detenoine the real viability of consecration end development concepts. the activity, we could he opening up a "Pandora's Box" and destroy the natural resource on Which the proposed developnent is based! or by One category of terms is merely descriptive. The expressions falsely assuming that funds will be available for conservation, nature-travel, adventure-travel, and cultural-travel, seglnent tourist! discover too late that the activity is not profitable. based on what activities they participate in during their visit. Another category of terns are value-based. The phrases, responsible After defining what ecotourism "Ought to be" (part I), this paper tourism, alternative tourism, and ethical travel, highlight the need examines the U.S. marketplace to determine the extent and for considering the approach end ii-apact of travel regardless Of the characteristics of nature-based tourism demand, the distribution activities pursued. Hector Ceballos-Lascurain eloquently combines channel for nature-based trips, and the cast of major suppliers (Part these tw0 aspects, the activity and the approach, in his definition 01 II). Part III looks at host country variables which decide if the ecotourism: promised benefits of ecotourism are realized. Vouris

Kurt Kutay, the owner of en adventure travel company that Promotes responsible travel, takes a different tack in his definition, Which focuses on the vital role of the host country. He writes, "Ecatourism is now seen es a model of development in which natural areae are planned as part of the tourisln base and biological reeOurce~ are clearly linked t0 social economic s,ectOrs.n (Kutay, 1989)

4 5 These concepts clarify the differences between the common nomenclature. "Nature-tourism", for example, is grounded in the behavior and motivation of the individual whereas "ecotourism" is a more comprehensive concept which is based on a planned approach by a host country or region designed to achieve societal objectives heyon< (but including) those of the tourist. Nature-tourism is not necessarily ecologically sound, as numerous examples around the globs illustrate. In an attempt to unite the above definitions, the following hybrid is offered (see Exhibit 1): Ecotourisn: A form of tourism inspired primarily by the natural history of an area. including its indigenous cultures. The ecotourist visits relatively undeveloped areas in the spirit of appreciation, participation and sensitivity. The ecotourist practices a non-consumptive use of wildlife and natural resources and contributes to the visited area through labor or financial means aimed at directly benefiting the conservation of the site and the economic well-being of the local residents. The visit should strengthen the ecotourist's appreciation and dedication to conservation issues in general, and to the specific needs of the locale. Ecotourism a150 implies a managed approach by the host country or region which commits itself to establishing and maintaining the sites with the participation of local residents marketing them appropriately. enforcing regulations, and using the proceeds of the enterprise to fund the area's land management as well as community development. This definition establ,isbes tough standards for a program or destination to qualify as ecotourism. It may seem overly complex. The needs of conservation and development, however, are inherently complex, and successful approaches will need to be multi-faceted. In this paper "nature-tourism" will often be used to describe current practices, which may not meet the above criteria. Tnis term should be simply understood as "leisure travel to participate in outdoor activities utilizing the natural resources of an area." (Ingram and Durst, 1987) Much of the research in this area uses this term to describe aspects of what is currently happening. l~Ecotourismv Will always refer to the goal of well-managed and constructive nature- tourism as described above.

Exhibit 2 maps out a simple segmentation of the overall tourism market. At the first level tourism can be broken down into three main: categories depending on the primary purpose of the trip: 1) business, government affairs or study, Z),visit friends or relatives, and 3) vacation and leisure. Vacation and leisure travel can be split I between traditional and specialty travel. Traditional travel L represents mainstream tourism to developed areas to pursue

6 conventional activities. The main goals of traditional travel axe relaxation and entertainment. Specialty travel, in contrast, is based on travel to undeveloped areas or the pursuit of unique activities. The principal motivation for specialty travel is personal development and growth (see customer motivation section for a more in-depth discussion). Both traditional and specialty travel can be further broken down into nature-based and non-nature-based segments. Exhibit 2 displays the various categories of nature-based specialty travel. Each of these categories can be defined along a number of intensity dimensions such as the degree of physical rigor or the depth of scientific study. within the industry there is a common distinction between "hard" and "soft" travel. Hard travel may refer to a very physically deinM$g trip or to a sophisticated and dedicated research endeavor. other end of the spectrum, soft travel entails less demanding physical activity or refers to hobbyists dabbling in scientific activities. The primary market for ecotourism is nature-based specialty travel. This segment represents people who are drawn by the natural endowment of an area and want to enjoy the destination in a unique llla"IleT. This goes part way to the full definition of ecotourism. It should be emphasized again that nature-based specialty travel is not equivalent to ecotourism, but these are the chief customers. Given the proper context, nature tourists could be acatourists. Ecotourism does not have to be limited to the current customers for nature-based tourism. The arrows in Exhibit 2 demarcate the potential markets for ecotourism customers. starting from the bottom, non-nature-ba&sd specialty travelers could be enticed to take a nature-based trip. similarly, non-nature-based traditional travelers could begin by trying a traditional nature-based trip and ultimately experiment with specialty nature-based travel. At the highest level, non-vacation travelers could be encouraged to spend a portion bf their visits for vacation and leisure and trickle down the maze to ecotourism. Jeanne Beekhuis, a private travel and tourism consultant, has questioned the value of segmenting the travel market because she claim "everyone crosses over" the lines. (beekhuis, 1989) She explains that the total travellinq market could be interested in things ecologically oriented and therefore they should not be rigidly separated into exclusive groups. Her point is well taken and her comments support the nation of segments flowing into one anotheg. The segmentation, though necessarily somewhat artificial, can help to clarify the thinking about major market groups and how to package and sell ecotourism destinations. In addition, conventional tourists who may be attracted to developed natural areas (e.g. Niagara Falls) need to be educated about the value and beauty of natural areas in their original state.

7 further complicated by the record keeping of host countries which may "compared to business and conventional pleasure travel, nature- not accurately track visitors and their spending Patterns. There is oriented trips are a small but increasingly significant part of scattered data on the number of nature tourists and expenditures to tourism to developing countries." (Kutay, 1989) individual destinations, and some countries have gathered significantly more data than others. There is some evidence to suggest that the number of nature- tourists is growing in the neighborhood of 20% per year. The basis one preliminary estimate suggests that nature-based tourism for this estimate is interviews with several tour operators who are dollars to ~~c's.from visitors of industrialized~ countries amounts to experiencing this level of growth, expert estimates, and the entry approximately $2 billion. This number is arrived at in the following rate of tour operators into the industry. One measure of this entry crude fashion: United Nations figures indicate that $25 billion in rate is the number of tour operators advertising in The specialty tourism dollars flow from North to South each year (Kutay, 1989). 'AX Travel Index. The number of tour operators advertising nature-tours American Express study found that overall, personal travel represents in this index increased approximately 229 between the 1986 Fall/Winter 66% of total tourism spending. Experts estimate that nature-travel issue and the 1987 Spring/summer issue. (Ingram and Dust, 1987) represents about 10% of Personal and leisure travel for Americans and Europeans. Thus: The continued growth of the nature-travel market is substantiated by analyzing the underlying elements of demand. The underlying forces $25 billion x 66% x 10% = $1.7 billion Per year spent on nature travej feeding this demand are fundamental and long-term. in less developed countries by tourists from industrialized countries. Working in the other direction, some tour operators report that 4-6 million Americans travel overseas for nature travel each year. A There are three primary factors influencing the level of review of available trips suggest that the average cost (not includin! ecotourism demand: overall tourism growth, the growth in specialty airfare) is $3,000. Thus: travel, and increasing awareness and concern for the environnent. ::ach of these primary factors are in turn influenced by a number of 4 million X $3,000 = $12 billion spent per year by U.S. citizens elements (see Exhibit 4). Overall tourism, for example, is expected travelling to overseas for nature-travel. LDc's would then receive a to grow by about 4% per year for the next ten years because of macro Portion of this pie. factors such as population growth, rising world incomes and employment, shorter work weeks in many parts of the world, and the increasing globalization of the world's economies and societies. Clearly these are not scientifically derived statistics. They do Industry and technology advances have effected change through easing however indicate the general magnitude of the nature-travel market, communications and transportation and lowering airfares (though -egardless of how ill-defined it is. "be,, these n"mbers were Passed airfares may be on the rise again). Finally, cultural dynamics also '2~ tour operators some felt the range was conservative, others favorer leave their mark as evidenced by the change in attitudes about :he lower end. perhaps this is verification that the range is at vacation time amongst professional Japanese. The Japanese, once ieast reasonable. However, under the strict definition of ecotourism considered reluctant vacationers, were the second largest spenders on proposed above, these numbers diminish considerably. There are few personal travel in 1987. (c. Starr Atwood, 1989; South, 1989) sites in the world today that can qualify as pure ecotourism based on those stringent criteria. The rapid growth of specialty travel is fueled by some of the same factors as overall tourism, but there are a number of additional explanations. The boom in outdoor recreation and the increasing awareness of health and fitness have revised people's attitudes about There is consensus among experts in the field that nature travel how they should spend their vacations. One adventure travel aqent is on the rise. A few excerpts from their comments confirm this view explains that many of her clients mention that their doctor insists they go on a walking vacation or that they do not disrupt their "Studies of U.S. tour operators and international tourists show that fitness routine during their trip. (Halty, 1989) special interest travel is booming and the most popular special interest tours are nature-oriented outdoor activities." (Ingram and On the supply side of travel, many traditional destinations have D"rst, 1987, reached a saturation point and tour operators have packaged exotic locales to peddle to consumers looking for an escape from the throngs. "Most experts agree that ecotourism is substantial and growing." In their review of the travel industry, Coopers & Lybrand, a" industry (Hawkins, 1989) consultant, points out that "...the grawth,in travel volume may strain...same tourist destinations during peak seasons... this

9 STIXS 3D”DW-I 3lVYdOHddV HUM s3am a3Nwwiim ~33. IFBlrMsm NDllOKkld ONVWlEJhW4 tlOd 1NVltlOdWl ,.T,Vl33dS3-- FisltrDl3Au~3dd3 do w3bl* NOIlVNllS3a IV s3llrll3vd ONV 3s~ w~-103 cw ,wrms 3tml3nUlS\MdNI do xx-l - M NOLldWd3d 013AuISFRS * S3US 3lVlIJdO8ddV JO A”3VdW PW.WW, ,vit0.% MO1 N0113310!dd IMDYdnSNI * fINI’JMOt(3 013hlllSN3S *

SlNlVtllSN03 AlddrlS SlNlVUSN03 ONVW30

AlddllS llWl1 ONV (INVWO N3dWV’a H3lHM SkiO13Vd AS ElNlVtllSN03 OSlV SI II 1nCl ‘SaN3Hl WEU-DNOl ONV lVlN3WVONnzl AS EllXk! SI WSltKl01033 d0 HlMOtlD 3Hl MOTIVATIONS FOR PARTICIPATING IN SPECIALTY TRAVEL

l CHANGES y/ WORK. RELAX ENTERTAIN DE SHORTER WORKIN; b0URS COMPOSITION LESS PHYSICALLY DEMANDING WORK, b BETTER EDUCATION /

EXCITEMENT/MYSTIOUE SOCIAL ASPECTS . SINGLE BUT DO NOT WANT TO TRAVEL ALONE . WEST FOR A NEW EXPERIENCE OR TO DESTINATIONS THAT ARE COUPLE OR FAMILY-ORIENTED . HAVE SEEN OTHER PLACES . MEET INTERESTING PEOPLE WITH COMMON INTERESTS . NEW SCENERY/ARTS/CULTURE . SEEK PERSONAL BONDING WITH SMALL GROUPS . COMPETITION (FAMILY, FRIENDS. COLLEAGUES OR STRANGERS) . RISK AND DANGER . COCKTAIL CONVERSATION . FUN AND RELAXATION

PERSONAL GROWTH PHYSICAL FITNESS . INTELLECTUAL . WANT VACATION TO FIT INTO ACTIVE LIFE STYLE EDUCATION-‘LIVING TROPICAL . HEALTH CONCERNS LABORATORIES . NEW AND GREATER CHALLENGES . EMOTIONAL * REDUCE STRESS -BE ALONE . SPIRITUAL ‘ADAPTED FROM IALTRENDS AND TOURISM FUTURES: MARTIN AND MASON,987 S3JFCE:NANRE FFl4VELWTHET-IAAFMAN ANDWRST.I~VIEWSWl~TWROPER4TORSANDCUSTWERS. Ogilvy, director of research for the Values and Lifestyles Program at The Market opinion Research Group, who conducted the study for SRI International, reaches a similar conclusion. He writes, "the the President's Commission, divided the S"rvey respondents into five growth of our economy is no longer driven by the desires of cons"mers psychographic classifications. A psychographic description is based to accumulate goods. It is driven by the consmer's quest for vivid on the needs and motivations of consumers rather than where they live experience." (American Demographics, December 198.5) ogilvy points to or how much they make. A description of these groups, their primary the rapid rise in overseas travelers and the increasing market for motivation for participating in outdoor activities, and their overall adventuresome experiences to justify his point. characteristics, is summarized in Exhibit 6. This segmentation is significant beca"se.the groups vary greatly by the level of their The combination of a search for activities involving participation in certain outdoor activities. Exhibit 7 shows that the '*development" and "experience 'I illuminates the motivations for "Get Away Active" (WA) group more frequently participates in the type specialty travel in general, and nature travel in particular. of activity that is common to nature-based travel. Thus, the profile Interviews with several advent"fe travel and nat"re travel tour of the "Get Away Active" pereon provides insight into the typical operators confirm that while clients for their trips come in all traveler for this kind of a trip. This information is useful becauSe shapes and sizes, one generalization can be made: people Want to the primary motivation for a G&A is to "experience nature*, and this experience something new and meaningful. suggests they are excellent candidates for ecotourisn, who may be willing to forego fancy developments for more rustic facilities. InterviewS with to"= operators reveal that nature-travel c"StomerS are varied and from all walks of life. Alan Camera", from This analysis is also useful for predicting demand trends. Since Wilderness Travel, ncteS that the one common characteristic of his 48% of GM'S SIX “baby boomers” and will be soon entering their prime clients is their desire to have "an active learning vacation... off- income earning years, they should fuel nature travel groeth. the-beaten track... they want to enter the reality of the situation." Moreover, members from the more rigorous categories are expected to His clients vary from 20-70 years old (median age of SO).(Cameron, convert to GAA'S as they get older, swelling the ranks of this group. 1989) Jon Wood, a luxury tour operator, caterG to professional people This is good news for the nat"re travel business, as "this near retirement age, b"t he mentione that in the last five years his (demographic shift) will boost the demand for parks, marinas, bicycle clientele has gotten younger, with many in their 40's. He attributes paths, nature preserves, and other recreational facilities for decades this change to the "turnoff with popular destinations and artificial to come." (Furyant, 1987) experiences." His clients are well-educated and ~~Sophisticated~~ and they are searching for an authentic experience. (Wood, 1989) SteYe Specifically regarding travel, many experts in the industry Colon, from Above the Clo"ds trekking, comments that he works for the discuss a change in attitudes which sbo"ld support an increase in "discernin~traveller" who wan& to both explore and share with demand for ecotourism. Arthur Frommer's recent book, The New World of foreign cultures. His clients are concentrated between the ages of w, "reflects a massive dissatisfaction by large numbers of 30-50. and 60-659 are women. (Colon, 1989) Finally, Pat Halty, of ~11 Americans with simplistic travels offered by established travel firms Adventure Travel, points to two clear groups of customers: "dual and facilities." (Philadelphia Inquirer) Kutay adds "we find there is income no children couples" (dints) and the "empty nesters" (older a growing interest among adventure travellers to be more than j."st a couple whose children have left home). These two groups have high passing taurist...many Seek opportunities to make an active levels of disposable income to spend on specialty travel. (Halty, contribution to conservation or community development by their visit." 1989) (Kutay, 1989) It is the responsibility of the host country, assisted by the international conservation community, to define and encourage There have been a few surveys of U.S. adults which Study their this contribution. motivation for participating in outdoor recreation or their reasons for joining adventure travel trips. The President's Commission on the Demoaraohics Outdoors sponsored research which included a survey of 2000 American adults regarding their attit"deS toward outdoor recreation. The The previous section, based on general outdoor recreation trends research uncovered five major reasons why Americans participate in and tour operator interviews, concluded that en understanding of outdoor recreation: fitness, social interaction, excitement, customer motivations was more important than other types of consumer experience self and nat"re, escape a feeling of being in cramped classifications. Once the motivations are clearly understood, it SpSCeS. This list was very similar to a list developed from the would be helpful to See if there are Soy general demographic trends. research on c"stomer motivations for adventure and nat"re travel. The One of the few available studies on the adventure travel market per se two lists tiere merged under four categories: excitement/mystique, is a two part survey in 1987 of Adventure Travel nagazine Readers. Social aspects, personal growth, and physical fitness. These categories are shown in detail in Exhibit 5.

13 14 6t * 9Y 6P SE 2s 3DV NVl(13W

slinav xx7 x9 XOI XEE %EE X9L d0 30VlN33U3d

NOIlVAIlOR - mwum3ak-t lN3wmx3m snmvl-nSM 1ON ssmlld htwaN033S -rmmSN3tRhM -mccs ?wxs -iwxs NOllVAllOR 3 ss3tu.1d 3mv3ao13mm mwva wsrd 1U SNld33M hHL-,VZlH ONld33X 3tmlVN33MM3dX3 3CM-l-MGSM AklVWlUd s3iaw3os 3Al1113dW03 a31VAllOWNn SnODSN03 3Al13V DNlY33S htlODUV3 3 a3sS3tllSNn NZ’AltlO-SS3NlId -HllV3H AVMV LID -1NBW3213X3

S3dAl MOOOUlO 3lHdVKJOH3hSd Wild

NOllV’3t133tl tlOO(31nO NI NOllVdlC)llWd t1Od NOllVAllOk’.. W3Hl NO G’3SVS SdtlOtlD 3lHdV’t100H3hSd tiOPVW E!hld OlNl ‘33(1lAlCl 38 NV’3 SNtQlt13W’i

oNIH3lviAaw3 /3~lllVN DNlUVti /DNI)IVhVX IDNl30NV3

E)NldWV’3 LElHlO

DNldWV3 IN31

996L MI N3UO a32vAllOwNn 3N00 S3lllAl13V 3 a3SS3l4lSNll N3AItla-SS3NlI .

I S3dAl lAOOtlllIO 3lHdW9OH3hSd 3hld The surveys found that the appreciate their automatic membership to the African wildlife Fund, typical adventure traveller is an affluent but he does not believe they would choose his operation beCause of it. man approaching middle age. (This may reflect some survey bias because tour cperators report that now ~Cmen make up "early half Of Fcr now, he explains, they are not marketing to the segment that their customers.) Other majcr findings included: really Cares about conservation. Other operators who have made significant commitments to local groups, often do not use their Age: majority between 35-54: rm2dian age of 35; involvement as a marketing tool. This may be a trend that is changing. Many operators have given "lip service" to the notion of Income: median income of $38,800-, but represents both ends environmental and cultural sensitivity, but this verbiage is starting of the inCome scale, 259 earn less than $25,000 to turn into tangible actions. Overseas Adventure Travel, one of the and 10% earn greater than $100,000: major U.S. tour operators, recently issued a press release that prcmctes ecotourism and explains how OAT is doing its part. OAT 33% frcm Mountain and Pacific States; proudly claims, "OAT is a conservation-oriented company with many HOme state: programs world-wide that contribute directly to the preservation of *verage amount scme of the finest and most delicate wildlife refuges in the world." spent cn each trip: $4,623, spending begins before the trip with (Overseas Adventure Tra"e1 press Release October, 1989) Other groups accessories, equipment, etc.; are also becoming increasingly involved in directly addressing local needs and Ccn~erns (see Supplier section). Average 'experience trips" per year: 3; MCst popular The demand for nature-based travel is based an many fundamental adventures: involve backpacking, hiking CT camping; and long-term trends. The aging of the baby bocmer population, for example, suggests that those involved in these activities will be Plans *or centering their peak earning years and that those who have been mere the future: for nearly every adventure in the survey, mCre +arts-oriented may switch to activities that are less rigorous but people planned to go in 1988 than in 1987, leading involve the observation of nature. tc a prediction that 16 million people will take adventwe travel trips ever the next 20 years if Custcmers pursue specialty travel primarily for one underlying "scft" trips included. reason: to pursue a new experience that leads to personal growth or enrichment. For those attracted to nature, these desires may take the Decision Hakina Criteria form of natural history tours tc exotic or undisturbed areas. There are numerous additional motivations that drive the demand for nature Scme consumers seem to chocse theiractivities first (e.g. tEwe1. CUstCmer groups can be identified based on the importance of hiking) arid then ChcCse a destinatiCn that is well-known for this the different motivations. These groups have unique characteristics activity. Others select the destination and then choose activities which can be useful to marketers trying to target particular segments frCm those available. TOW operators are chosen cn the basis of their and to host country policy makers trying tc package destinations which qualifications, their knowledge of the area, the types cf trips they will attract a particular segment. plan and the convenience and flexibility of their itineraries. clients do not seem tc be overly concerned with the price of the trip The "Get Away Active" group is a prime market for nature travel. (for moderate to expensive trips) nor do they seem to dwell deeply It represents one-third of American adults, and their primary into the philosophy of the tour operator. I" a survey Cf tcur motivation for outdoor recreation is to experience nature. The needs operators, Customers were seen tc be mcst concerned with the tour of this group should be specifically addressed when sites are operators qualifications and the health and sanitation of the developed and marketed. This group may seek "softer" CT supported facilities. These operators felt that cnly 2% of their Clients were tou-s because they are not the risk takers. In additicn, they seek "very concerned" With host country attitudes and only 22% were "very solitude which means the "enjoyment capacity" of a site may be concerned" with ~Csts. (PPEI US) limited. Interviews with tcur operators confirmed these results. They Perhaps the mcst important conclusion abcut customers is the mentioned that Customers were generally happy when they discovered understanding that they are inner-directed in their motives and that the tour operator was making special effcrts tc support local decision making process. They are concerned with the uniqueness and projects, but that it was not generally a key decision factor for ¶u$ity of the experience, the safety and hygiene of the trip, and the choosing that operator. One tour operator remarked that his clients ability to schedule the trip Where they yant, when they want. They 15 16 r

tiOlVt13dO tl3lVS3lOHM aNnow - I s3aw -tl3hO ~NlltilV 9 L %09’-oc mtlvw dllXtlVW 7laav %OFOE

S33lhtJ3S 30VMVd- S33lAt13S SKIVlN03 lV301- 301ttOtId* All3 . 3dowwsn ~OrvWnvlldv’3 31lS-NO

klOlV’t13dO HOlVti3dO SHn3N3tld3tUN3 lN3t.W 13AVUl (aNnoeln0) tlnol (aNnol3NI) (INVl lV’301

3mxmls mlsnaN1 local providers. In Britain and the U.S., tour operators account for Rica) which many of the wholesalers use, though again there are a most Vhird world holiday bookings.' (South Magazine, 1989) myriad of %om and pop shops" that spring up around the popular tourist stops. The travel agent is the ultimate retail outlet. Travel agents have not been a popular distribution channel for adventure travel and Given that many in the U.S. uSS to"= operators and that there are nat"re +_ourS because many tour 0peratorS do not believe that SgS"tS a few large operators at both the outbound and the inbound levels, and are sufficiently informed about the destination or the style of travel that the% firms SrS run by the founders, there is a focal point for to'sell the trip properly and manage client expectations. Some reform. There are.key individuals who could spearhead ~nw efforts. industry experts say. however, that there is an increasing trend of The way these tour operators function, their choice of destination, travel agents booking these types of tourS and there are now seminars the way they package and Sell trips, the type of support services they available for agents to learn more about the industry. (ASTA Brochure, provide, and their cost structure, are all important factors to understand how to make changes in the way nature tourism impacts host 1989, A survey of tour operators in 1987 disclosed that travel agents referred 25% of respondent's clients. countries. *our operators are an extremely important component Of successful ecotourism. Many operators are very knowledgeable about Tour operators based in the U.S. function mainly Ss marketing and country conditions and are eager to cooperate on constructive SSlSS entities. (Ashton, 1989) They produce Slick brochures and projects. The goal is for host countries to enlist their support - handle all customer relations before the trip begins. TO"= operators not exclude them from conducting business. link up with inbound operators who are responsible for putting the actual vacation package together. The lines between the outbound and inbound operators are often blurred. Several outbound operators may also function partially aS inbound operators and become very involved sesmentation bv Level of Involvement with the details and the arrangements in the country. This dual function is especially true of tour operators who have special ties to Tour operators advertising in the U.S. are generally U.S.-owned a country (e.g. .S firm run by ex-Peace Corps volunteers) or one that operations, averaging seven years in business, and serving anywhere has been operating in a country for a long time with a volume to from 20 to 3000 clients per year. (Based on a survey of nature tour justify making errangenents: independently. wilderness Travel, for operators advertising in the specialty Travel Index, WE1 #ZS) Nature examole. u*eS inbound operators,in Costa Rica but SrranaSS their own Tour operators can be segmented along numerous dimensions: size, tour; in PSN. (Cameron; 1989, geography, and area of specialization, among others. '+,r the purposes of this study they have been divided into for-profit and not-for- The travel business, nature travel included, is reportedly very profit groups and segmented,according to their level of involvement competitive with slim margins (see economics section). It is also an with host country concernS and issues (see Exhibit 9). industry of privately-owned businesses where agencies and firms are run by the founders who are generally intimately involved wit\ the For-Profit Sector choice of destinations and how business is conducted. Within the for-profit group, some tour operators are simply In many ways the specialty travel industry, which SncompassSs "selling nature." They are principally concerned with making a profit nature travel, Sear6 extremely fragmented. Indeed, the publisher of and they have identified a lucrative market. The "sensitive group" specialty Travel Index commented that he has a file of 9,000-10,000 are aware of the concerns and irsues of the host country and they try potential advertisers. (Alpine, 1989) others estimate that there are to design their trips to be low impact and culturally sensitive. The 5,000 or ncre tour operators involved with adventure and/or nature "donors" make the next step and donate a portion of their revSnuS.5 to travel. This fragmentation is mainly limited to the retail side Of local environmental or community development groups. Finally, the the business. In the U.S. there are only a handful of to"= OperatorS "do'ers" have taken an active role in conserving and improving the who sell the majority of business for general adventure and nSturS areas they visit. One example of a "do'er" is the Journeys company travel. Mountain travel is the recognized leader (sending Out 3,000 which donates a portion of the land costs of their trips to a non- people per year) followed by a second tier group including OverSSaS profit affiliate "The Earth Preservation Fund." 1x1 addition, Journeys Adventure Travel, Wilderness Travel, and Journeys. There are offers a number of specialized trips one of which is a cleanup Of the thousands of boutique shops that sell pieces of these larger tours, 0I Macho Pichu trail. Exhibit 10 shows examples of other formS of construct their own trips for a specialized market niche. creative cooperation by U.S. tow operators running nature tours in LDC'S. The industry is also less fragmented when the inbound operators are considered. In many countries there Seem to be a few large It is difficult to determine what percentage of tour operators operators (such as Horizontes or Costa Rica Expeditions, in Costa fall into each of these categories because it is difficult to SSPSrStS I 19 [HOKUS lldOtld-tiOd-104

HOIH + }lN3W3AlOANI JO 13A3-i } b MO1 n*w,

1 tlO133S lidOtld-t10d ( NOIlVlN3LW3S StlOlW3dO WI01

‘SKGPOtld AtilNn03 1SOH HllM lN3PElAlOANI JO 13A31 t113Hl AS (INV Sdltll lElHl32t’kl3d0 QNV NE)IS3(1 EIHL AVM 3Hl NI AtlVA SMOlVtt3dO lKlO+

68/22/01 :zvn

3HlvNNolls3no dr-rMOTlOd NI OdNI SNOUVNo(7 EXXVlV3 NI ltl3SNI 3AltKl dlHStEIBW3W 13AVIl.l SS3Ntl3CfllM

dMVO1 dlHStl3EW3W SZ$ swl0131ssvl3

3EX33ld Otll9 lNXl3 SNOuVNOa (SVdVlH3) NHI 01 OOOSO lV\mCllAlCiNI CINV ANVdW03 sw-~Jl ~~T-LLVN -QflNVWW3 k90131A dltll NOliVAti3S3Hd lIVHlV3NI Sdltll lVl33dS CiN(U NOUVAtl3S3tld H&IV3 3lVlllddV IIdOtld-NON

bMV) CINM 3dllalIM NV3ltldV 01 SlSocl aNvl JO NoUtod

S3lllAlJ.3V 10 S3ldWVX3 lN3W3hlOhNI d0 3dAl HOlVkl3dO tin01

S133POtid lN3Wd013A3a 3lWON033 HO NOUVAH3SN03 NI NOllVdl3l1klVd S.LlOlVkl3dO tlnO1 lldOtld-tIO;I cl0 S3ldWVX3 marketing hype from real actions. Based on this research it appears tight margins. The rapid entry of new firms into the field, however, that the majority of operatars fall within the "sensitive" group with hints that there SrS profits to be made. .a growing "umber entering the ranks of the "donors." There are Only a handful of firms, that have bee" identified. that have earned the In a recent New York Times article, nountai" Travel "do'ers" label. The middle two groups are probably the largest u"characteriStically gave a cost breakdovn for one of their African because many of the founders of these firms have worked and lived in Safaris. Mountain Travel's costs, for this trip, consisted of 55% in the countries they sell Ss destinations and they often have a personal field expenses, 23% in administration and overhead, 18% in hotels and commitment to their progress. I" co"trast, tour operators do not the trip leader, and a modest 4% for profit. This would imply tight often become doQers because travel is a very competitive industry and margins, but this does not account for the full story. Discussions they do not feel they can spare the rSSoufcSS far extra projects. with travel agents reveal that many of the large operatorS make S Bill weber of .Tour"eys, one of the most progressive and innovative significant amount of money on airline overrides (conmissions for operators explains, Vfe would welcome more specific charges and selling large blocks of tickets) possibly as much as $600 for each regulations which would benefit local people and environments, and $2000 ticket sold. Whether this is a" important aspect depends o" the which would apply uniformly to all operators and individual "umber of tickets that muSt be sold to receive overrides and whether travellers." (Kutay, 1989) Practices need to be established that there are additional administrative costs incurred. This issue should prevent the "do~ers~~ from being placed at a competitive disadvantage. be investigated along with other scale issues. (personal interviews with All Adventure Travel and Bridget Bean at the Nature conservancy, 1989). The Not-for-Profit Sector Mr. bay AShto" offered a rough cost breakdown for the CDstS for The not-far-profit sector offers nature trips f&a variety of one of A"dubo"'s 13-day programs. On this trip, field expenses rSaso"s: member service, donor trips, as a Source of funding, and for accounted for 759 of land coStS. Overhead reportedly represented a" education and research support. Some of these trips are very additional 20% of coStS, and 5% of the fees were set aeide for profitable. Ray Ashto", the former director for Natural History Tours santributions to conservation programs. or. Asbto" confessed that for HSSSaChusStts Audubon, explained that his trip* are primarily a this waS not a money-making venture, and that it was often difficult membership service, a service to other "on-profits, and a way to to preserve the 5% "profit" margin. (personal interview with Ray provide educational institutes. He claims that there are other non- Ashto", 1989) profits that make a "ton of money " from their trips and that they may use their trips SS a fundraising mechanism in the future. (personal interview with Ray Ashto", 1989) The SxpensSs for a nature travel trip vary SubstantialtY The Nature Conservancy also offers trips aS a service to their depending on the destination, the Style of travel, the SSTVVZSS membership. Each trip includes a $300 voluntary donation (which all provided, and the volume of business a tour operator conduCtS. PartiCipa"ts pay) to the Nature ~anservancy to fund programs in the Mountain travel justifies its Szoo-a-day trek by explaining that their area visited. During the trips, clients are encouraged to join or "off the beaten track routing" incurs greater CoStS for Porters, make donations to the local ~~0's involved in the areas they visit. additional equipment, and expensive transportation. Hareover, import Moreover, all trips are accompanied by a" experienced naturalist. duties are exorbitant and bribes are often requested, the staff (Personal interview with Bridget Bean of the Nature Co"serva"cy, 1989) explains. (New York Times 12/4/88)

The non-profit sector of this market is a small but growing Ashton explains that his trips may be somewhat more expensive segment. It may also provide very effective models for how ecotourism than the competition becauSe of the services he provides. Each should be developed in the future. MassacbuSSttS Audubon trip includes a staff guide, well versed i" the natural history of the area, in addition to a local guide. Other to"r Economics operStorS mention the costs of pre-departure info?nation. and donations to local groups as factore which drive up costs. Costs a"d Profits

Due to the lack of industry definition and organization, there is "0 publicly available information regarding the cost structure for a nature travel tour operator or recognized average industry margins. Anecdotal information suggests that it is a competitive industry with 5 tight margins. The rapid entry of new firms into the field, however, hints that there are profits to be made. Table 1. Most popular nature-oriented activitiesa and destlnationr for U.S.-based tour operators visfting developing countries. In a recent New York Times article, Mountain Travel ;;;;;fcteristically gave a cost breakdown for one of their African ACTIVITY PERCENTb DESTINATIONSC . Mountain Tra"e18s coStS, for this trip, consisted of 55% in 7 field SxpenSes, 23% in administration and overhead, 18% in hotels Snd lrckklng/Hiking 721 Nep'al (15) the trip leader, and a modest 4% for profit. This would imply fight Kenya (9) margins, but this does not account for the full story. DiscuSslons Tanzania (9) with tra"e1 agentS re"ea1 that many of the large operators make a China (9) significant amount of money on airline overrides (commissions for selling large blocks of tickets) posSibly as much aS $600 for each gird Uatching 66 Kenya (11) $2000 ticket Sold. Whether this is an important aspect depends on the number of tickets that must be sold to receive overrides and Whether Mexico (11) there are additional administrative costs incurred. This issue should Costa Rica (11) be investigated along with other scale issues. (personal interviews Taozanfa (11) with All Adventure travel and Bridget man at the Nature Conservancy, 1989,. Nature Photography 66 Kenya (15) Tanzania (12) Mr. Ray Ashton offered a rough cost breakdown for the c0StS for one of Audubon's X3-day programs. on this trip, field expenses Uildlife Safaris 63 Kenya (16) accounted for 75% of land costs. Overhead reportedly represented an Tanzania (lfl) additional 20% of costs, and 5% of the fees were Set aside for Nepal (16) contributions to conservation programs. DT. Ashton confessed that this waS not a money-making venture, and that it was often difficult canping 60. Kenya (Ii) to preserve the 5% 44profitnn margin. (personal interview vith Ray Tanzrnia (12) Ashto", 1989, nwntal" Clinbing 41 Hepal (211 Kenya (171 Tanzania (II) The expenses for a nature travel trip vary substantially depending on the destination, the Style of travel, the services Flshlng 38 Costa RI.3 (21) provided, and the volume of business a tour operator conducts. Mountain Tra"e1 justifies its Szoo-a-day trek by explaining that their River Raftingnanoeing/Kayaking 34 Nepal (26~) "off the beaten track routing" incurs greater co*tS for porters, Puerto Rico (21) additional equipment, and expensive transportation. Ma-aver, import duties are exorbitant and bribes are often requested, the staff Botanical Study 31 nexico (18) explains. (New York Times 12/4/88) Puerto Rico (lE,

Ashton explains that his trips may be somewhat more expensive 4 Other nature-oriented activities promted are horseback rfding. cultural and than the competition because of the services he provides. Each archeological study. deep sea actlrities. spelunking. boat trips to MassachuSetts Audubon trip includes a Staff guide, well versed in the unlnhabltcd islands. orthid study, butterfly watching. and 4-wheel drive natural history of the area, in addition to a local guide. Other tour l rc"rrlonr. OPerStorS mention the costs of pre-departure information, and donations to local groups as factors which drive up CoStS. b Percent of operators engaging in each activity. r Countries are "at ranked. The numbers In parentheses are percentages representing the proportion of tour operators listfng each country among the top three destinations for a particular activity. P*Mou"tai" Travel... has bee" creating advent.u=e* to exotic destinations fca= 22 years.." The first two sections of this report explore the concept of "Imagine sitting am""g the gentle mountain gorillas of Rwanda... ecotourism and the dynamics and characteristics of the nature-based experiencing the qwticism of exotic Java and Bali..." travel marketplace in the United States. The question still remains, though, whether all of this activity is translated into real benefits Vauntain treks, wildlife safaris, sailing trips... Africa, for the host community. ~The promise of ecotourism, after all, is that Amazon, Andes..." it can promote and finance conservation and local economic development. If conservation and development a=e not enhanced, ------(Specialty Travel Index Fall/winter 1989) ecotourism becamee nothing more than a haughty phrase for the business of selling nature.

The largest proportion of Nature tour operators use magazines and I" reviewing case studies from around the world it is difficult h=ochu=es as thei= primary s"u=ce for advertising in the U.S., as to find one complete model to emulate. There is no recognized show" in Table 1 below. blueprint for successful ecotourism development in all of its facets. Rather, there are examples from different projects in which particular components are innovative o= well-implemented. PO= example, COsta Rica is Often cited as having a" exemplary national system of parks Magazines 94% and reserves. This is certainly true, but some experts lament the B=OchLl=es 91% small amount of money that seems to be channelled back to local people Direct Mail 69% surrounding these protected areas. This section discusses the Tourism Trade Shows o= variables which determine whether o= not nature-based tourism is Travel Markets 66% weting its dual objectives of conservation and local economic Newspaper 56% development from the perspective of the host country, and draws upon case examples when possible. I" addition, this section identifies the sou=ce: FPEI #aa major ways in which nature tourism can be transformed into ecotourism fo= the benefit of the protected areas, the surrounding communities, The high percentage of t"u= operators that use magazines and and the host country as a "hale. brochures demonstrates that. operators are carefully targeting their custome=s and also relying heavily 0" requests for information. This P="moti"a and Financing. Conservation is not .3 business that appeals to the mass market, and thus specialized adve='cisi"g is appropriate. Protected area.6 can generate revenues from nature tourism through entrance fees, donations, ancillary services 01 products, and private investment (examples of each of these forms are show? in Exhibit 12). Whethef conservation benefits from these four mechanisms depends 0" how much money is raised and who receives it (see Exhibit 13). Both the costs and benefits of nature tourism must be carefully evaluated to determine whether o= not protected areas can generate excess revenues of eve" be self-sustaining. Experts warn that some external funding will always be needed for conservation programs because not all ecologically important a=eas will be able to generate sufficient tourist revenues to support themselves. PO= example, some fragile natural areas may not be able to admit any tou=ists at all. I" many cases tourism should not be considered as a path towards self- sufficiency but as a means to defsay the costs of operations. Entrance fees have produced significant revenues for some protected areas around the world. In Rwanda, one of the most celebrated cases, entrance fees into the ~a=c National Des Volcans totals m"=e than $1 million per year. (World Res"u=ces Institute Report (WI) 1990) 'I" the Galapagos, direct revenues total $560,000

23 74 n oh a3sw StlOllSln 01 CINlWOl XtlVd WOW ‘ld3a W3ddV t)NISlVti QNfld SWdVd klOd IHVS WW zi’ 1 NOUVlS H3W3S3H tlv3ml 09S$ SllVd tlVE)1VdVtll YtlVd 1VNOIlVN WA OVHY NIMtlVa S3ltlVHR13 s3mm33tI 133tlla V31NIWOa * aNVlIVH1 * t1oavn33 - SOWdVlV’E) *

SNoUvNca )I ozss s33l HD-KWll S3tlVlD3H HO3 S3H3V 00s 3- NVHJ. bl3luo 0009 AE 03(7NVdX3 tlV3A mw LB WEX-03 tlOlW3dO S3tmlaN3dX3 3llOtETl NOUVAtl3SN03 sNv3loA mol rwm3wv WOtld ww E$-Z$ 3amh 3wow S3a lVNOl3VN 3tWd V’3lti VlSO3 ’ VaNVMtl * v’31u VlSO3 * : VaNVMti -

(C) (Y) (E)

WSlUnO1033 HE)nOtlHl NOllVht13SN03 9NKINVNIzl 90 SWSINVH33W

66RZIOL :zvn E)Nlkk’HS-1ldOktd JN3w3Tv?ttQI lN3WlS3ANi dlHSMUM0 lN3’UElhNI 30 MI-UVN 3lt’Alkld

S3SS3NISnfl clOtl38WrlN~ a;;;;:;; E)Nlk%‘HS- IIdOkld a3aav3nivA HE)IH. AHVlll3NV SNOISS33NOO 3HJ. SNMO OHM 3AllEltl3

-0 MoH aNv H3nw M~H lN3ldEIkl JO AON&ldd3 S3SS3NISnS SNOIlVNOa SNOllVNW S3Al333tl OHM sivnalAlaNI

SONM (33kiVWW 3~fuOntlis t13k-tunw uoivna ~OAklVl3lkldOkld -lW3MEl DNlOltld 3dN.

L II 5130 OHM ‘2 L A3NOW H3nW MOH ‘1

i NOllVAkl3SN03 t1OzI SLkElN38 3Hl3klVlW'3kl9 MOH per year. (WRI, 1990) Notwithstanding these examples, many parks are fundraising appeal to the visitors who had signed their ~lcq bock, charging nominal fees and revenues are consequently limited. raising $150,000. (personal interview with Bridget Bean of The Hat"rS cc"Servancy, 1990, Lccal NGO'S can also tap into this financing Profits cculd be multiplied by increasing fees substantially. Scheme by selling organizational memberships to travellers. Bridget The profit-maximizing point depends in part on the demand elements Bean, the coordinatcr for international trips for The Nature Such Ss the uniqueness of the Site, and in pa* on the Supply which Conservancy, explained that local NGO'S give talks during her trips may be limited by Snviranmental and social carrying capacities. WRI, and offer memberships afterwards. (personal interview with Bridget 1990) Different countries are experimenting with fees by raising them Bean St The Nature Conservancy, 1990) and *orming multi-tier St~ct"rSS to charge foreigners higher rate5 than nationals or local residents. In CcStS Rica, the Mcnteverde Ancillary goads and Services could also potentially be big mcney- Cloud FcreSt Reserve will raise its entrance fee from $2.75 tc $10 makers. Visitors would most likely Spend mere if there wSrS after a one-year period tc allcw tour operators to incorporate the new attractive gccds and services to purchase. Visitors already spend a costs into the price of their packages. (WM. 1990) A multi-tier significant amc"nt of money on food and lodging in parks, and there Structure is based on the rationale that locals support the park are opportunities for visitor centers and other enterprises tc offer a thrc"gh tSxSS and by foregoing alternative "SSS, and that foreigners range of products from t-shirts and notecards tc handicrafts and should contribute their fair Share. Wulti-tier Systems are employed in Srtwcl-k. PSrk managers need to team up with creative business pecple Rwanda and Ecuadcr and several ether countries are considering who understand the ccnsumpticn patterns of their visitors and supply instituting them. them with appealing products. Many areas Seem tc make the miSta& cf only offering cheap trinketa instead cf higher-priced items which may The Wcrld Resources Institute report highlights the need for be mere appealing to wealthier, experienced travellers. Sarm+iing park fees to fund park management. Currently many park fees are collected for the central qc"er"mSnt coffers and the WRI Finally, if private investors can be convinced that they will repcrt advocates a portion of the funds continue tc flow to the receive a competitive ret"n~, they nay be willing to invest in park central government So that neticnal support for the parks will be maintenance and facilities. Recently an American woman in CcstS Rica maintained. Howaver, this system makes protected areas vulnerable to purchased 500 acres cf rain forest for $520,000, and is in the prccess central government budget c"tS during Sccncmic downturns. It is also of setting up nature-based tcvrist facilities. The project Slsc important for a dedicated portion of the funds tc be controlled by includes community development actiCitiSS. (WRI 1990) park lnanaqement to SnS"rS the park's self-sufficiency and provide an incentive for efficient administration. CcStS Rica, Eauadcr and PromotrnaandFinancinq Thailand cfOer examples of ccuntries earmarking funds. In Ccsta Rica, ScmS proprietary f"nds for the parks ccmplement the general government The second promise of ecctourism is that it can prcmcte and a11ctnlent. USSr fees in the Galapagos help to finance itself and finance economic develcpment, bath St national and local levels. D"S other less pop"lSr sites in the Ecuador park System, and in Thailand, of the major challenges for Scctcurism planners (and tourism plSnnSrS the entrance fees to the parks remain within the National Parks in general) is tc design a program which shares the benefits of Division. Dave Blantcn, director of Voyages: ESst African safaris tourism with local people. In reference to one of the studies which comments, "the big challenge is to get local people involved in the proved the economic value of wildlife in Kenya, Jeffrey HcNeely park and in tourism manaqement rather than siphoning off money to the writes, "the challenge comes in bringing the accncmic benefits of central qc"SrnmSnt. Once local people have a Stake in the park and tourism to the local community which is paying the opportunity ccSt of its wildlife, they act as vigilantes and poaching diminishes." (Kutay, not harvesting Slapbants." or other natural rSSc"rcSS that "culd 1989) detract from a site's tourism appaal. (ncNeSly, 1988) Donations can be a rich sc"rcS cf rSven"Ss for parks management AS with the benefits for conservation, the influence that any and local environmental txzo*s. D-an&ions can be solicited in n"mSrc"s form of tourism has on the local economy depends on a number of ways ranging from individual on-site contributions! tc tcur operator Str"ct"ra1 factors. no major factors determine the nSt"re cf the revenue-sharing schemes, to fundraising avents during tours. I" CcStS economic impact on the local economy: the type of tourism cultivated, Rica. the Hcnteverde Conservation teaguS was able to expand their and the level of development and diversification of the local eccncmy. TeSSrvS by 8000 hectares through donations. ,wRI, 1990) SeVeral tour OPS=Stcrs have donated generous s"mS to the areas "here they lead Exhibits 14 and 15 a-e simplified Schematic depictions of this their trips. Victcr Emanuel Nat"re TOUTS, for one, dcnated $5000 from interaction. ~Tcurists are mcst valuable to S hcst country economy cnS trip to the Institute for Natural History in Chiapas, Mexico for when they consume local, high value-added goods and services and when the management of the El Triunfo Reserve. The Charles Darwin Research the economy is highly diversified and developed. In other wcrds, a Station in the Galapaqcs took an active approach and mailed a person travelling to a locale and Staying in lodges owned, managed, 25 26 AWON ammwda aNv aSdoiSA3a AlHE)IH

AWON AUNn03 1iOH 3HlOl lSltlnOl \I d0 3llWh 3Hl H3

AWON AtllNn03 1SOH 3Hl JO N011V3ldlSH3Ala aNV lN3WdOl3A3a 30 131231 3Hl aNV’ 13AVHl d0 TLUS 3Hl NO AlltlWWltld SaN3d3a AtllNn03 1SOH 3Hl 01 lSltmO1 V JO 3nlVA 3Hl *, XlBIHY3

68/P 110 1 :zvn

a3tlifxw tl0EV-i JO 3dU dlHStBNMO* SWHld do 3ZIS.

13aOW 3lWON033 3ldWlS V BeRzlol :zwl

s3alnO aNv slv1~3~vw ‘3ktn133uHOkiv 1~301 ONIWVW-NOISl33a lV’301 lN3W33VNVW 133POHd NOIlVOIlS3ANI SaNVlallM S,NVlaNI VNn)l VWVNVd lV301 L- 1

tlV3A fd3d X 09lC aNnd DNlAloA3tl HOnOtlHl NINnWW03 01)13VS a3-l3NNVH3 S33d ONILNnH 133POtId lN3Wd013A30 33thlOS3U 03lVtlD31Nl VMONVnl S.VlS~VZ 1

S3lVS 1VnNNV )I 0% s13naoud 3Aiivt13dooO s.N~W~M HonotrHi alos suw1aNvH a33naoud ~11~307 . 3AkElS3H lS3tIOd an013 3at13A31NOW VOlt( VlSO3 lV301

S133~OtldlN3Wd013A30 3lWONO33lVOOl d0 S3ldWVX3 33tlHl I organized a cooperative to sell locally produced handicrafts and are ;t. outside, resulting in high leakage and low multipliers. I" COntraS now achieving sales of $50,000 per year which are said to reap 11 In 7,a*ia*s Luangva Integrated Resource nature tourists are often satisfied with consumption of simple 10~2 significant profits. The areas studied seemed to Development Project, hunting fees totalling $150,000 per year are goods which favors a high multiplier. channeled back to the community through a revolving loan fund, and in profit from small business development, a?d,increased job Panama, the tuna Indians have been involved with the decision-making opportunities that provided some possibilltles for professional for the Wildlands Investigation Project. (WRI, 1990) ~~.rancement. In addition the areas contributed to government __.______I"llPS and_..~~ could~~ Dot&ally_ develop secondary industries in the Nature tourism is praised because its customers presumably prefer future, such as tent and egui&nt production. local goads. It can be based on indigenously-owned lodges that are built from local materials and serve native foods. Thus nature The central point of this section is that ecatourism development tourism can he promoted without excessive capital requirements and cannot be promoted in isolation from overall economic development. infrastructure developments. AS was pointed out in the customer Tourism growth, after all, is just one component of broader motivation section, part of the attraction of nature travel is the advancements in several industries. Issues such as the distribution ability to experience an undeveloped area which is in stark contrast of income generated from the ecotourism sector, is,no different than to the urban existence of many travelers from the industrialized concerns for an overall equitable sharing of a nation's wealth. world.

The primary and secondary income flows from tourism benefit different sectors and economic actors in various ways. Thus even if the leakage is stemmed, planners need to be aware of which sectors and which groups of people within a country are affected by tourism promotion. New revenues may cause desirable development, such as local production of foodstuffs, or undesirable demand, such as increasing oil requirements in a fuel importing country. (Healy, 1988) In terms of which local people benefit, this depends an what type of firms are promoted, their size, ownership, and labor requirements. Healy warns, "local economic arrangements can be very important in determining whether new income streams benefit the poor or merely reinforce lqngstanding inequalities.8q (Healy, 1988)

Externalities, the positive or negative impacts from the results of an economic actor which does not enter into his utility function, must also be considered. (Healy, 1988) The costs of trail erasion from a trekking operation are borne by the whole community, but the trekkers may not be forced to pay for the damage. Trail erosion is an example of a physical externality. Tourism can also create "pecuniary externalities," that is a change in prices that affects someone not directly involved in the transaction. Thus a local villager may be forced to pay inflationary prices for local goods because of the influence on demand from wealthy tourists. Externalities often need to be controlled by government regulations or other methods by Which individuals are forced to bear the full costs of their activities. For example, tour operators may be taxed to pay for site cleanup, or visitors may donate to comolunity projects to offset their inflationary impact.

The results from Healy's four case studies of forest-based tourism found that multipliers could not be calculated based on his first study. He did conclude that forest tourism was necessarily promoted in remote areas and that facilities were often small scale and scattered, Many goods and services had to be brought in from HlMOtlD 9NlAdl(lOW tiOd SWSINVH33Pk do01 KIV9a33d aNV NOllVnlVA3 l e

lN3Wd013lUCl 31WON033 lIOzL--- NOllVAkl3SN03 t10&--- SlkElN38 lv’3O-l 3ZlWlXVW .*

s3aim w’301-- SklOlVkl3dO w70l-- s~3wolsn3-- 9NINlVU aNv Nouwna3 . .

NVld lN3bElC3VNVW aNv’1-- NVld SS3NISnS-‘ l.UVlS MO-IS aNV ‘9NINNVld .*

SkElAVld HOI-VW 3Hl 1lV WOkI IndNI-- H3VOklddV CEllV’tlD3lNI .I E)OQHcIlVM- oav’3t13w i3- dn-MOllO+ sA3r\trns AtllsnaNl- od~13tlrutlvdva3tid/S3Nii3au79. 3SnOHDNltlV313 MNI- WVtBOtJd N0l1V3ldllkl3~ NOIS 133rotld. Nouv130ssv ~~lsnaN~3l0~0tl~ SNOIlVNIlS3a tlVln3lltlVd 31vNIaHCKl3/llnSN0~ st10lvu3do tu7olivnaiAlaNI NO s313ulv 3tmlv3+ S133rOHd aN&b Hli~ sditisNoil\fl3tl aiine. :SaOHUW :saoHuw :saoiu3w

Slt13hNOP Slti3dX3. SKIN HllM NOllVtl3d003- S.OE)N 1V/3010131n8ltl1N03* NOIlVZlllltl3d AHlNn03-SSOKb DNlklVHS-lIdOb’d* tlOlAVH3El tl3dOtld 3WtlnOKN3- lN3w3%Nvw’.l.N3wdo13Na 0dNi 0000 3lvNtw3ssia. St10lW3dO 3115 ‘51Nbk’W h3llOd NI ltnaN3c) do W-l01 3lVltldOkJddV 3SOOH> S33113Vkid IS38 3lOWOt!d* 53003 auvaNvls ,usnaNk aNvw3a 3ivmwus’ :slvoD :s1vot) :s1voEl

NOllVZINV’OtlO AtusnaNi aNV NOllVt13d003 SS3N3tlVMV CINV (aNnoun aNv aNnoaN0 kiOlVki3dO tlnO1

H3VOHddV a39NOtld-33tlHl \I

:lN3W3AlOANI tlO4 SV’3UV surveys, travel market for nature toll= operators, codes Of cOndUCt, watchdog for misconduct. and promotion of profit-sharing schemes. A consumer education and awareness program would aim at stimulating demand for ecotourism and affecting the behavior of The final and most important need for action is assistance for visitors who travel to nature destinations. Education of the consumer host country ecotourism planning and development. Planners within would begin at home. consumers sho"ld be aware of the issues involved these countries need to be aware of the "best practices" that have with ecotourism and shown how their travel can make a positive been implemented from around the world. These practices include difference. First, travellers should be aware of the differences policy making, site development, packaging and marketing, local between variovs tour ~operators and the types of trips they offer. participation programs, and management control systems. This requires once on the trip, c"stomer.5 should be encouraged to contribute to a greater cross-fertilization of ideas between countries and a local projects. The education should continue when clients return centralized base of knowledge of experts in the field. Neighboring home to keep them "p-to-date with issues regarding the locale they countries could also possibly benefit by cooperating over joint have visited as well more general conservation priorities. "products" s"Ch as the newly touted-Ruta Maya, or joint advertising and promotlo". These objectives can be achieved by reaching the nature travel cons"mer thr""gh the popular media, conservation organization Technical assistance in the area of ecotaurism is available from membership, and specialized groups (such as COOP America or the Center conservation groups within the host countries and internationally and for Responsible Tourism). This campaign would initially be aimed at from a ,growing industry of consultants. This technical assistance can those groups of people likely to engage in nat"re travel, b"t this be applied at a national, regional, park, or project site level. target audience could be broadened over time. The delivery methods could include feat"re articles on particular destinations, case Each of these three areas for involvement co"ld be developed in st"dies, a certification program for approved nature to"= operators, much greater detail, but they are presented briefly here to illustrate and specific pre-departure and post-trip information booklets or the need to concentrate on each aspect of the multi-faceted ecotourisn newsletters that would advise travelers of proper behavior, ways to I"Cept. To move the substantial and growing nat"re travel market contribute, and suggestions for ways to be involved in the uyond a business that benefits a few to an economic and conservation conservation movement once back at home. model of development will require the appropriate participation of c"stomers, to"r operators, in-country planners, and the organizations The second major are.3 for involvement is the formation of strong which serve these groups. alliances with inbound end 0"tbo"nd tour operators. TO date, efforts to organize adventure or nature travel tour operators have failed. Conse*ently;some individual tour operators have made isolated efforts to play a constructive role in the countries they visit. These efforts are led by a few innovative firms, but they do not represent industry standards. Even firms which are sensitive to local countries' needs have often not made contributions to sustain the resources on which their business is based. Moreover, those firms that do contribute must limit their help because of the competitive nature of the industry.

The tour operators could improve nature travel by adopting industry standard codes of cond"ct, disseminating appropriate information to their clients, cooperating with local NGO's, and to the extent possible, sharing profits for the protection and management of the nature destination. These goals could be achieved by promoting an industry association or by building relationships with individual to"r CXp.2rMXXs. Certainly, individual to"= operators should be encouraged to participate now, while the foundation for a more comprehensive initiative is laid. These leaders will be instrumental for getting a more comprehensive project on the ground. Ultimately, industry organization and cooperation will be essential for broad-range and long-lasting effects. M industry association could provide the following outputs and services: information clearinghouse, industry

32 "e&y, Robert G. 1988. "Economic Consideration in Nature-oriented Tourism: The Case of Tropical forest Tourism." southeastern center for Forest Economics Research, Research Triangle mrk, (includes dire& citations as well as background material) N.C.: FPEI Working Paper No. 39. Hunt, Carla. 1989. "Latin Magic: The 'Other Americas' cast Their Alderman, Claudia L. 1990. "A study of the Role of Privately spell on a Rising Number of visitors." Travel weekly. owned Lands used for Nature Tourism, Education, and Conservation." Conservation International, Washington. mgram, C. Denise and Patrick 8. DUrst. 1987. "Nature oriented Travel to Developing countries." Southeastern center for Ambron, Andre. 1486. "confidential Travel Agent survey on Forest Economics Research, Research Triangle Park, N.c.: Caribbean Leisure Travel." OAS analysis of results. FPEI working Paper No. 28. Ashton, Ray E., Jr. ""dated. "Ecotourism and the Yucatan and Maya Irwin, Bill and Ma1 Bernstein. 1988. "Ta"ck: &d"ent"re gravel Region: Developing cooperative International Relationships." maws Crowds of All Ages: Expo seminar Addresses Common unpublished working paper. Marketing strategies." Travel weekly. February 18, 1988, p. 13. 1989. "Defining the Ecotourist Based on site Needs." -&published paper prepared for the 1989 International Keena", Joe. 1989. Vcotourism.~~ pIexico Journal. Hay 22, 1989. workshop on Ecotourism and the Yucatan and Maya Region. Kutay, K"rt. 1989. "The New Ethic in Adventure Travel." Boo, Elizabeth et al. 1989. "Ecotourism: The Potentials and ~"zzwom: The Environmental Journal. summer 1989. Pitfalls." Unpublished paper, World Wildlife Fund, Washington. Laaman, Jan G. and Manuel J. Baldares. 1990. "Denand for an Annual Pass to Costa Rica's National Parks." working paper. Branigin, William. 1989. "Belize's New Leader Keeps an Open Door." *he Washinaton Post. October 9, 1989. ~aarmn, fan G. and Patrick B. D"rst. 1987. "Nature Travel in the Tropics." Southeastern Center for Forest Economics Research, 1989. vungles vs. fobs in Belize." The Washinston Post. Research Triangle Park. N.C.: FPEI working Paper No, 23. -October 9, 1989. Lindberg, Kreg. 1991. "Economic Policies for Maximizing Nature myant, Barbara E. 1987. "Built for Excitement." American Tourism's Contribution to sustainable Development." World pemoarmhics. Warch, 1987. raso"rces Institute. ceballos-Lascurain, H. 1988. vhe future of Ecotourism", Mexico McNeely, Jeffrey A. Undated. wow to my for conserving SImuMI. January 17, 1988. Biological diversity." Unpublished working paper. cutler, mayne. 1988. "Anything for a Thrill." American McNeely, J. and J. Thorsell. 1988. "~"ngles, Mountains, and Demoaraohics. A"g"st, 1988. Islands. How Tourism can Help conserve the Natural Heritage." In I.. D'Amore and J. Jafari 'Tourism a Vital Force for Peace". Domestic Technology International, Inc. 1989. "Lo" Impact First Global Conference, Montreal P.P. Canada. Tourism: Coupling Third World Natural Reso"nx conservation and Economic Development." Prospectus. Martin, W. H. and S. Mason. 1987. "Social Trends and To"riSm F"t"re~.~ Tourism &Ianacrement. June, 1987. Farnsworth, Clyde H. 1988. "Micro-loans to the World's Poorest." me New York Th. Febluary 21, 1988, sec. 3, p. 1. nays, Barbara J. 1989. Wexico's Sunny Skies: Increased Air service and Solid Value Offer Hope for a Bright Future." Gutkin, Steven. 1989. *'Tourists with Reservations." South. Travel Weekly. February 20, 1989, p. 44. A"g"st, 1989, p. 47. Herlino, Diane. Undated. "Kenya Tourism: A New vision." X,Quz Harrington, T. 1989. "Tourism Damages Amazon Region". The and Travel News. Christian science Monitor. June 6, 1989. Noland. David. 1988. Why this &k cost $3,890." The New York Qme_S. December 4. 1988.

34 35