Economic Impacts of Sustainable Marine Tourism in the Local Economy
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Economic impacts of sustainable marine tourism in the local economy Case study: Dolphin watching activity in New Quay, Cardigan, Wales. Thesis submitted in fulfilment of the requirements of the degree of MPhil Olga García Hernández School of Management and Business Aberystwyth University, Wales-UK November 2015 Abstract Cetacean watching activity as a touristic activity is steady increasing; its economic benefit has been estimated over US$ 2.1 billion per year globally, with over 13 million people undertaking the activity in 119 countries (IFAW, 2008). However, there have been few studies examining the real contribution that this sub sector can make to the economic well- being of local communities. This project examines the paths of expenditure in a local economy with a marine wildlife tourism attraction. New Quay is a Welsh village located in Cardigan Bay Special Area of Conservation, in the county of Ceredigion, West Wales, which shelters one of only two semi-resident populations of bottlenose dolphins in the UK. Due to the presence of this charismatic species, in recent years the dolphin-watching tourism industry has shown a significant increase, transforming this traditional family holiday destination. Using the methodology “Local Multiplier 3” (LM3) developed by New Economics Foundation (NEF), the project aims to work out a multiplier ratio which will explain how much this touristic activity contributes to economic development of the host community and its potential as economic motor for the region. This multiplier effect is calculated in three levels: the first one involves dolphin-watching tourists, asking them how and where they spent their holiday budget. Having identified the starting amounts and located the entry points into the local economy of New Quay, the second phase is addressed to the local businesses highlighted by tourists. The final stage is focused in the local spending habits of staff members of these businesses. From this grassroots approach to understanding the contribution of this tourism activity based on marine biodiversity, we can identify the mutual dependence between conservation goals and community livelihoods surrounding protected areas. Further, the project expects to contribute to promotion of a cross sectorial low carbon economy and also towards best practice in spatial planning, to ensure the most sustainable local economic outcomes. ii iii I have seen you I have seen you unfold your best finery to people known and unknown. I have seen you excite, palpitate, agitate and even make dizzy with that blue force, calm and furious with which you are sketched each day. I have seen you shiny and vibrant silent and serene, dull and furious Te he visto. nocturnal and bewitching Te he visto desplegar tus mejores galas a propios y extraños. -“Wow!, look at this! Awesome!”-, Te he visto emocionar, palpitar, agitar y curious voices, hasta marear con esa fuerza azul, anxious to discover the mosaic of colours, calmada y furiosa que te dibuja cada día. of life that is hidden under your waters. Te he visto brillante y vibrante; I have seen you silenciosa y serena; opaca y furiosa; From land and sea. I have seen you nocturna y hechizante. And only from those glances, because of that flirtatious foam, salt and -“Wow!, look at this! Awesome!”-, vertiginous, you have conquered me for always. voces curiosas, ansiosas por descubrir ese mosaico de colores, Thank you, Welsh Coast, for all those de vida que se esconden bajo tus aguas. journeys. Olgaki, Aberystwyth, 2014 Te he visto. Desde la tierra, desde el mar. Te he visto. Y sólo por esas miradas, por ese flirteo de espuma, sal y vértigo, me has conquistado para toda la vida. Gracias, Welsh Coast por todos esos viajes. Olgaki, Aberystwyth, 2014 iv v Table of Contents Abstract ............................................................................................................................................ ii Table of Contents ............................................................................................................................. vi Partners of this journey .....................................................................................................................xi ‘See the whales - $1’ ........................................................................................................................ xiv Chapter 1. Introduction ................................................................................................................... 15 1.1 The impacts of wildlife tourism .............................................................................................. 15 1.2 The history of a fascination: the economic value of whale watching on a global scale............. 16 1.3 Marine wildlife tourism into the local economy. .................................................................... 23 Chapter 2. Research framework ...................................................................................................... 27 2.1 Conceptual background ......................................................................................................... 27 2.1.1 Framework of wildlife tourism ......................................................................................... 28 2.1.2 The value of common goods for economic development, beyond tourist purchases ......... 32 2.1.3 The potential changes due to the wildlife tourism ............................................................ 35 2.1.4 Economic ”snapshot” ..................................................................................................... 39 2.1.5 The spending preferences of tourists during their holidays ............................................... 41 2.1.6 Investing in nature-based industries ................................................................................ 43 2.1.7 A cascade of economic impacts ....................................................................................... 44 2.1.8 Testing the strength of the productive network. “Gaps” in this cascade ........................... 45 2.1.9 The multiplier effect and economic impact ...................................................................... 47 2.1.10 The journey of multiplier effects and their different types .............................................. 50 2.1.11 Critiques of multiplier effects ......................................................................................... 54 2.1.12 Going to local level to get the data ................................................................................ 57 2.1.13 The multiplier effect method ......................................................................................... 59 2.1.14 Multiplier effect method in tourism context ................................................................... 61 Chapter 3. Research scenario .......................................................................................................... 65 3.1 Main aim ............................................................................................................................... 65 3.2 Key research questions .......................................................................................................... 65 3.3 Research area: tourism scenario in New Quay........................................................................ 65 Chapter 4. Methodology .................................................................................................................. 77 4.1 Philosophy ............................................................................................................................. 77 4.2 Research approach ................................................................................................................ 81 4.3 Analysis of data ...................................................................................................................... 90 4.3.1 Method: LM3 .................................................................................................................. 90 vi 4.4 Field work .............................................................................................................................. 92 4.4.1 Research Design .............................................................................................................. 93 4.4.2 Collecting data .............................................................................................................. 108 4.4.3 Research limitations ...................................................................................................... 118 Chapter 5. Data analysis; results and discussion............................................................................. 122 5.1 Dolphin watching activity ..................................................................................................... 122 5.1.1 About the interest in dolphin watching .......................................................................... 122 5.1.2 Profile of dolphin watchers in New Quay ....................................................................... 124 5.1.3 The journey of dolphin watchers to New Quay ............................................................... 128 5.1.4 Dolphin watching activity .............................................................................................. 132 5.2 Dolphin watching expenditure and its economic multiplier effect ........................................ 141 5.2.1 “How much and where do you spent your holiday budget?”