Ru r a l Co m m u n i t y -b a s e d To u r i s m i n Ce n t r a l Am e r i c a

Trade and Poverty in

Case study December 2009 n , tourist numbers ism and cooperation. For this analysis, exceeded 4.7 million in 2002 and we selected the countries where I8 million in 2007. Guatemala has a has grown most rapidly: Guatemala and Overview tourist industry worth $1.012 billion per . In the Guatemalan case, we This case study evalu- ates the outcomes of annum, compared with $239 million in chose to systematise the experience of rural community-based Nicaragua. As a result, Central American Rural-based Community Tourism (RCT) tourism in Nicaragua governments have focused their efforts in one of the regions that is richest in (five communities) and on attracting foreign investment to this natural and cultural resources, which, Guatemala (four com- sector (including through agreements in paradoxically, is also one of those report- munities), as an alterna- tive to more mainstream services). ing the highest indices of poverty and ex- tourist development. The agrarian crisis of the period be- treme poverty. Despite strong commu- tween 1990 and the early 2000s resulted Fundamentally, the methodology seeks nity organisations (co- in a re-evaluation of the role of agricul- to systematise the experience of RCT in operatives) and some tourism natural assets ture in the rural economy in both coun- five communities in Nicaragua and four (caves and culture) – tries. Concurrently, there was a search for in Guatemala. To this end, two national and, in the case of Nica- non-agrarian alternatives that would, on teams shared methodologies, analysis of ragua, reasonable infra- the one hand, sustain the rural popula- the initial results and comparative analy- structure and access to tion in their communities of origin and, sis of their experiences. Here, we present markets – the financial sustainability of initia- on the other, elevate the standard of liv- a comparative analysis of the tenden- tives has been badly af- ing in these communities. The latter goal cies identified in both studies, in order to fected by an inability to has been the basis for the promotion of determine the trends and policies at the link with the main dis- rural tourism, initially in the European regional level that facilitate the establish- tribution channels (tour Union (EU) and subsequently through ment of these alternatives for rural pov- operators and hoteliers). The initial investment international cooperation, as an alterna- erty reduction. costs are high and bar- tive approach for rural poverty reduction riers to entry are signifi- in developing countries. Nonetheless, not The experience of Guatemala cant. Notwithstanding all of the options for rural tourism gener- and Nicaragua poor tourist flows, these have brought some eco- ate the necessary synergies to stimulate Tourism as a generator of employment nomic and other ben- endogenous rural development. is polarising; that is, high salary jobs are efits to the destination As a result, there is a debate regard- few and require high levels of education, areas. ing the roles of collective action and (languages, administration, accounting), leadership as well as the sustainability whereas the remainder of the jobs are of initiatives. As a complement to this, low income, such as in cleaning, security, we explore how the implementation of waiting tables and cooking in rural areas. policies has impacted incentives for tour- In RCT, it is assumed that participants 1 Table 1: Initiatives from the analysis of RCT and poverty reduction in Nicaragua

Initiative Year Organisation Role of women Rural Cooperative and Community 1998 Cooperative Management of finances Tourism Las Pilas – El Hoyo Community House La Granadilla 2002 Cooperative Tourist services, food, management of finances La Paloma, Pueblo Hotel, 1995 Women’s association Leadership, organisation and rotation of roles, management of finances Quetzalcóatl Cooperative 1985 Cooperative Artisanal goods, distribution and administration of income Guardatinaja Ecological Park 1994 Indigenous community, Tourist services, food area association Source: Barrera and Pérez (2008). are not employees but managers, protagonist actors Nicaragua throughout the organisation and management of the In Nicaragua, five communities that have taken ad- process. RCT initiatives that function as collective en- vantage of different rural attractions were selected, in- terprises favour poverty reduction not only through cluding those related to volcanoes, islands, indigenous increased income but also by strengthening the man- communities, artisanal products and sightseeing. In agement of development by relevant stakeholders. contrast with the Guatemalan initiatives, which oper- With this definition of RCT, it is possible to analyse the ate as an association of communities, the Nicaraguan propensity of these initiatives to fully utilise the advan- initiatives are independent from one another and have tages of globalisation in Central American countries, a very low level of linkages between them and/or with specifically Guatemala and Nicaragua. other actors and services. Despite being located in the zone of greatest integration in terms of infrastructure Guatemala and markets, the Nicaraguan initiatives tend to face For the Guatemalan case, we selected the experience the same challenges regarding market access as the of the Candelaria Caves in Alta Verapaz. This is a com- Guatemalan ones, although some have begun to in- plex where four indigenous Q’eqchi communities have tegrate with hotel chains, mainly near the city of Gra- organised a tourist product around the Sepalau Lagoon nada. Community leadership also tends to be a key el- and the caves, which are an attractive geological for- ement in the allocation of roles, allocation of individual mation, located in an area with substantial greenery income and community investment. and many water sources. To date, a sufficiently stable flow of visitors has not yet been achieved, which would Comparison of the effectiveness of RCT ini- enable residents to dedicate more of their time to the tiatives in Guatemala and Nicaragua activity, thereby increasing their income. In this case, the promotion link is failing: participants do not ben- A review of experiences in the nine communities iden- efit from a marketing strategy that would allow tour- tified some positive processes, such as increases in ists in Guatemala City as well as foreigners to become household income, improvements in consumption, aware of the opportunities offered in the locality. Nor mainly clothes, and improvements in social investment have they managed to develop links with the network related to basic infrastructure, such as schools, roads of national tour operators. Moreover, there is a need and health posts. According to community interviews to develop peripheral products or complementary ac- in Guatemala, the extra income from RCT has led to tivities for those visitors who can spend the night and an increase in family spending, on agricultural supplies more than one day in the communities, which could be and clothing for the family. In addition, there have been developed through a ‘community route’, allowing visi- increases in planting areas and levels of food security, tors to experience the customs and cosmology of the as well as improvements in the housing of those who Maya-Q’eqchi. participate. Income from RCT depends on the role and the rotation of each family, which can be in the kitchen, -2- Table 2: General changes since the implementation of RCT in indigenous communities in Guatemala Use of funds Situation of the community Situation of the community before RCT after RCT Candelaria Maintenance and expansion Planting in small areas. Greater institutional presence. Camposanto of the site. Significant out-migration of People are no longer afraid of Agricultural products and labour. seeing and attending to tourists. household expenditures. Distrust of tourists. Conservation of trees. Land sales. Greater income. Job creation. Land has increased in price. Sepalau Paying guides, cooks, etc. People were excluded from Elaboration of artisanal goods. Cataltzul Maintenance of the ranch. communication because there Renting of equipment (kayaks). Personal consumption and was no road. Promotion of culture through. household expenditures. Investment in highway, market. School repaired. Greater income. Bombil Pek Maintenance. Production was very limited. Path made to small landholdings. Doing business. Small landholdings and The small landholdings are community disconnected. producing. The communal house had been Cultivation and sale of sugar cane. destroyed. Communal house repaired. Candelaria Maintenance of the site. The only income was from the Work and income for women. Mucbilhá Personal consumption and sale of agricultural products. Families spend more on clothing household expenditures. Women did not have an income. and food. Houses were in very poor Income in dollars. condition. People purchase more tools. Improvement in infrastructure of houses and the community centre. Source: Peláez et al. (2008).

Table 3: General changes since the implementation of RCT in Nicaraguan communities Initiative Impact Projects Rural Tourism Participants have transitioned from day Taking advantage of the resources of the reserve Cooperative and labourers on landholders’ property to and avoiding deforestation. Community Las Pilas working for themselves. Development of beekeeping. – El Hoyo Elaboration and implementation of a management plan. Declaration of a national park. Implementation of National Plan already being managed in Spain. La Granadilla Library built. Increasing the capacity of lodgings. Community House Co-op members’ children get university Incorporating other nearby attractions within the scholarships. RCT Network. Branded produce, e.g. beans. Sale of products generated and packaged (e.g. Youth receive English classes. beans packaged in the UCA Tierra y Agua) in the Dance group. community for tourists and/or other partners. Health post built. La Paloma, Pueblo Reforestation of the lake coast. Increasing organic communal gardens. Hotel, Ometepe Improvement in family income. English–Spanish school. More tourists and support from other international organisations. Quetzalcóatl A competition takes place where Maintaining the identity of local artisans. Cooperative participants display ceramic pieces. Development of San Juan de Oriente brand. There is space for the sale of individual Integrating San Juan de Oriente into the tourist products and access to shipments to supply of Catarina. external markets. Open spaces (local municipalities). Guardatinaja Improvement of houses. Construction of country lodgings. Ecological Park Improvement in income. Interpretation centre, school in Nahual. Utilising area for the cultivation of pitahaya. Source: Barrera and Pérez (2008).

-3- laundry or services to tourists, or in work- 2005-2009, the state does not have ac- ing as an area guide. Although participa- cess to funds to support a direct plan of tion in the service is voluntary, selection initiatives. The Guatemalan experience depends on the quantity of visitors and demonstrates that the state can support the social capital of the family. In con- initiatives through investment in human References trast with their Nicaraguan counterparts, capital, language programmes and client Peláez, A, Pérez, F.J. and for Guatemalan indigenous communities services. Moreover, it is possible to pro- Romero, W. (2008) language is the main factor of exclusion. mote a certification process and stand- Turismo Comunitario In Nicaragua, the common funds gen- ards that includes conservation of water Rural como Alternati- erated by RCT go towards scholarships sources, minimisation and treatment of va de Desarrollo Local for the children of members to attend waste and linking local providers with lo- Programa. , university, school repairs and the estab- cal job creation. Nicaragua: Comercio lishment of cultural and athletic groups, Investments in RCT in both countries y Pobreza en Latino as well as communal medical posts. This have stimulated a process of growth in America, COPLA, ODI- is correlated with distance from urban tourism to rural areas. Some barriers to NITLAPAN. centre: initiatives that are closer to the entry for SMEs that offer services in the Barrera, O. and Pérez, city allocate money towards improving tourist market have been overcome to F.J. (2008) Reduc- business conditions, such as for grocery some extent by public–private initiatives. ción de Pobreza Ru- stores, and developing the area and/or However, Guatemala and Nicaragua have ral a través del sector infrastructure. At the individual level, im- experienced different degrees of success servicio: El caso del proved income has been reported and, in in the development of RCT, in part be- Turismo Rural Comu- Guatemala, income driven by the tourist cause of the (in)ability of communities to nitario en Nicaragua. season is common. link in vertically with tour operators. Managua, Nicaragua: Leadership at the community level, Programa Comercio Lessons learnt clear rules and transparent collective deci- y Pobreza en Latino Although tourism is a growing economic sion making are fundamental elements in América, COPLA, ODI- alternative, the initial investment is high the success of this type of local develop- NITLAPAN. and the barriers to entry to the market ment initiative. The initiatives reviewed in are rather high for rural communities. To Guatemala and Nicaragua have reached date, in both countries, cooperation has a point of maturity, which has enabled been the motor that has driven the estab- them to connect to the market. This con- About COPLA lishment and development of initiatives to nection continues to be developed, for Comercio y Pobreza en utilise the benefits of globalisation to en- example in Nicaragua through promotion Latino América (COPLA, able the commercialisation of such serv- of the rural tourism network, making indi- or Trade and Poverty in ices. In the case of Guatemala, the initia- vidual contact with hotel enterprises and Latin America) is a two- tive was begun and is financed by USAID marketing. and-a-half year project through the Peace Corps, and involves a that explores the linkag- series of services for community training. es between trade, pov- In the Nicaraguan case, each initiative is erty and social exclusion associated with a different source of co- in Latin America. operation, which have invested not only in physical infrastructure but also in fund- This case study summary was prepared Find out more on: ing, training and access to markets, both by Jodie Keane with Alberto Lemma and http://www.cop-la.net international and domestic. Jane Kennan and is based on longer The role of the state has been differ- Photo credit studies originally undertaken by Francisco ent in each country. In the Nicaraguan Flickr/ Eric Molina Perez, Welbin Romero, O. Barrera and A. case, although the Institute of Tourism Palaez at Nitlapan in Nicaragua. The full (INTUR) has defined a series of -tour study is available in Spanish on the COPLA ist routes as part of the Strategic Plan website: http://www.cop-la.net. 4