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Tourism, the Economy, Population Growth, and Conservation in Galapagos

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Tourism, the Economy, Population Growth, and Conservation in Galapagos Tourism, the Economy, Population Growth, and Conservation in Galapagos Bruce Epler CHARLES DARWIN FOUNDATION Puerto Ayora, Santa Cruz Island, Galapagos Islands, Ecuador Revised and Updated in September 2007 Tourism, the Economy, Population Growth, and Conservation in Galapagos ACKNOWLEDGMENTS The author is particularly indebted to Susana Cardenas who, in addition to providing general guidance and logistical support, oversaw the distribution and collection of surveys and data entry. Johanna Castañeda assisted in distributing surveys to tourists waiting to depart the airport on Baltra and data entry. Liz Llerena assisted in data entry and interviews with hotel owners on Santa Cruz. Jairo Alvarado circulated surveys in the airport on San Cristóbal. Paulina Buenaño, Carmen Nicolade, and Delsy Jaramillo assisted with surveys and interviews with hotels on Santa Cruz, San Cristóbal, and Isabela. Graham Watkins, Executive Director of the Charles Darwin Foundation (CDF), oversaw the study, provided numerous and relevant data files and studies, and submitted comments that improved the study. Johannah Barry, President of the Galapagos Conservancy, contributed data and insight into tourists’ and industry donations. Roslyn Cameron shared her knowledge about tour vessels, tourists, and fundraising. Craig MacFarland added information on the early years of the CDF, the development of the tourism industry, and ongoing and evolving issues and concerns. Oscar Aguirre, of the Galapagos Chamber of Tourism (CAPTURGAL), generously supplied summaries of survey information collected over several years. Edwin Naula, Head of the Galapagos National Park Service’s Tourism Unit, and Daniel Silva provided useful data compiled by the Park Service. Eliecer Cruz, of the World Wildlife Fund, provided insight into immigration, industry trends, and changes occurring in populated areas. Freddy Herrera, of the Ministry of Tourism, shared files on the numbers and capacities of hotels and restaurants. The Port Captains in Puerto Ayora and Puerto Baquerizo Moreno contributed data on the movement and number of crew members on tour vessels. Valuable information on tour vessels, pricing policies, the structure of the tourism industry, and changes over time were courteously supplied by Maggie and Fiddi Angermeyer, Edwin Dyer, Eric Andrews, Charles Wittmer, David Balfour, Martin Schreyer, Rolf Sievers, and Jimmy Peñaherrera. John Gallagher and Peter Schiess contributed information on fees paid by outside yachts. The study could not have been undertaken without the financial support of the Galapagos Conservancy and Lindblad Expeditions’ Galapagos Conservation Fund, whose long-term dedication to improving management of the archipelago is acknowledged. Linda Cayot edited the revised and updated version with financial support from the Galapagos Conservancy. ii Tourism, the Economy, Population Growth, and Conservation in Galapagos ABSTRACT This paper traces the historical development of tourism in the Galapagos Islands, highlights trends in the industry’s growth, and demonstrates the subsequent impacts on the local, national, and international economies, and on the population and conservation of the archipelago. Early studies concluded that there was an incalculable potential to develop nature-based tourism in Galapagos and that the tourism industry was the most compatible with conservation of the archipelago’s unique biological diversity, evolutionary and biological processes, and environment. Incalculable is the key word. No one envisioned that the islands would emerge as one of the world’s premier ecotourism destinations; that Galapagos tourism would contribute hundreds of millions of dollars to Ecuador’s national economy, and in turn, that it would generate revenues and population growth in Galapagos exceeding anyone’s wildest expectation. As the Galapagos tourism industry developed, it became both a blessing and a bane. The industry’s humble beginnings date back to the late 1960s when a half dozen vessels and hotels catered to 2,000 or so tourists per year. By 2006, there were at least 80 vessels and 65 hotels capable of simultaneously accommodating nearly 3,500 guests per night. Since 1991, the rate of visitation increased by approximately 9% per year, with industry revenues increasing by an astounding 14% per year. More than 120,000 tourists arrived in the archipelago in 2005. Despite these leaps, the user fees paid both by visitors and companies conducting tours have not increased since 1993. Tourism also generates some financial support for conservation (donations) and governmental institutions (primarily through entrance fees). Conservation and government spending are quantified and their contributions to the rapid influx of revenues spurring the ongoing population boom are demonstrated. The average rate of population growth in the 300 km2 reserved for human settlement has been 6.4% per year, three times greater than in mainland Ecuador. If temporary and clandestine workers from the continent that also reside in the islands were included, the overall annual rate of population growth would approach or exceed 8%. Population growth is even greater on Santa Cruz, the economic and tourism hub of Galapagos. There is much debate over the benefits from the rapid economic growth. Clearly, some astute entrepreneurs have realized disproportionately large gains in their net revenues and the economy and living conditions on Santa Cruz are greatly improved. The other islands and large segments of the population have not fared as well. Taylor et al. (2006) argue that immigration and inflation have negated increases in the average real per capita income of the majority of legal residents. It is obvious that economic growth has resulted in unsustainable population growth, socioeconomic stratification, civil unrest, strained public services and infrastructure, an increase in the number of invasive species, and a number of conflicts with conservation goals and authorities. The increase in tourism has raised other concerns. There is a marked decline, from 1991 to 2006, in how visitors ranked their satisfaction with Galapagos nature and wildlife. Another alarming trend is that when asked, 1/3 fewer international tourists responded that they would have spent more time in mainland Ecuador had they not been able to tour the archipelago. Ecuador is one of the most biologically diverse nations on Earth and has a huge potential for developing ecotourism. Unfortunately, the country is not capitalizing on its natural endowment; this may be attributed to image problems that stem from economic, political, and social chaos that was rampant during the 1990s, poorly developed infrastructure, a failure to actively market mainland tourism, and increased competition from other countries. The last section of the report addresses underlying issues such as the undervaluation of resource rent and a discussion of some options that may contribute to resolving a number of the pressing problems. iii Tourism, the Economy, Population Growth, and Conservation in Galapagos TABLE OF CONTENTS Section Page Acknowledgements ...................................................................................................................... ii Abstract .....................................................................................................................................iii List of Tables ...............................................................................................................................vi List of Figures .............................................................................................................................vii List of Acronyms and Abbreviations. ............................................................................................ viii Introduction and Objectives..........................................................................................................1 II Methodology and Data Sources ............................................................................................1 III Historical Overview ...............................................................................................................2 The 1950s ..........................................................................................................................2 The 1960s ..........................................................................................................................3 The 1970s ...........................................................................................................................3 The 1980s ..........................................................................................................................4 The 1990s to the Present ......................................................................................................5 Population Growth ................................................................................................................6 IV The Galapagos Tourism Industry ............................................................................................8 Tourists’ Profiles ...................................................................................................................8 The Tourist Fleet .................................................................................................................11 Fleet Capacity and Vessel Ownership .............................................................................11 Fleet Operation ...........................................................................................................12
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