Tourism's green frontier

How to protect nature and make a profit

By Roger Hamilton

A small brownish bird flew across the forest clearing and then vanished in a tangle of vines. The binoculars-toting tourists were as delighted as if it had been a harpy eagle.

In the Amazon rainforest, everything is wondrous, the stuff of myth and scientific discovery. For half an hour the guide had recorded the bird’s call and played it back, hoping to tease the creature out into the open. Now, mission accomplished, the tourists added the bird’s name to their lists as they congratulated their guide and swatted mosquitoes.

The tourists—a mother and son from California and two university students—were guests at an ecotourism lodge in the far north of Brazil’s Mato Grosso state. It wasn’t easy getting there: two days of punishing overnight flights, bumpy rides along rutted roads, and long trips by small boat. The lodge where they were staying was no Holiday Inn. It was situated on a “beach” that consisted of a floating raft in a river inhabited by piranhas (peaceful ones). Lights were generally out by 9 p.m., or sooner if the generator broke down.

All of this had cost them thousands of dollars. But for these birdwatchers, the trip was worth every penny.

A unique breed. Ecotourists are not typical seekers of rest and relaxation. For them, going on vacation is a chance to experience some of the most untamed and remote spots on the planet. They prefer wilderness to white beaches, and would rather spend a night spotting for alligators in a canoe than dancing in a disco club.

In the same way, the field of ecotourism bears little resemblance to the mainstream travel and hospitality industry. Unlike mass tourism, the ecotourism sector is concerned not only with making a profit, but also with helping local communities and protecting nature (see Beyond economics). A nature lover’s delight, ecotourism is also an accountant’s nightmare—a business with more than one bottom line.

But ecotourism can achieve its loftier aims only if lodges and tour companies attract tourists, pay staff, and give investors a reasonable rate of return. The challenge is to chart a course for ecotourism that is motivated by idealism, but sustained by profits.

Travelers in search of authenticity. Ecotourism began its rapid growth in the 1970s as travelers in developed countries grew disenchanted with what industry insiders call the “sun, sand, and sex” formula. These years also saw the beginnings of the modern environmental movement and a renewed interest in nature. According to a study by sporting goods manufacturers, birdwatching in the United States grew 157 percent from 1982 to 1994. Many of these enthusiasts looked beyond their backyard bird feeders and began to dream of trips to distant lands.

Tour operators set up shop to accommodate the new nature travelers. According to a survey conducted at the State University of New York, the number of nature tour operators in the United States increased from only one in 1900, to nine in 1970, and to 82 in 1994. Less than half have been in business more than 10 years. For U.S. nature tourists, Latin America—and particularly Central America—is the most popular destination.

Ecotourism remains a youthful industry, in many places still dominated by “mom and pop” lodges, second floor walkup agencies, and nonprofit investors. Many clients are still young backpackers with a yen for adventure and authenticity. But at the same time, ecotourism operators are attracting growing numbers of upscale clients looking for that heady mix of first-class comforts and raw nature. Outfitters and tour guides are increasingly targetting these customers.

The World Tourism Organization estimates that ecotourism and other forms of nature tourism accounted for some 20 percent of the $453 billion spent by an estimated 663 million international travelers in 1999. While the tourism sector as a whole is expected to grow at about 4 percent annually, some estimate that nature tourism could expand at a rate of 10–30 percent. In recognition of its growing stature, the United Nations General Assembly has declared 2002 the Year of Ecotourism.

Latin America’s opportunity. Ecotourism is showing its economic muscle in a number of Latin American countries. Foremost among them is Costa Rica, where the slogan of the tourism board is “nothing artificial.” In that country, tourism—to a large extent nature tourism—earns the nation an annual $1.2 billion in foreign exchange, the second highest earner of hard currency after microprocessors.

“At every tourism meeting, Costa Rica is a power to behold,” says Megan Epler Wood, president of The International Ecotourism Society (TIES). In addition to a great variety of natural attractions, the country offers a famously peaceful society, with solid democratic traditions and a successful policy of natural area preservation. Another selling point is the wealth of information available on Costa Rican fauna and flora, thanks in large part to the country’s success in attracting international scientists, and to the work of highly qualified national researchers.

Other countries are also attracting ecotourism dollars. The 60,000 visitors annually to the Galápagos Islands make a $100 million contribution to Ecuador’s economy. Some 3.5 million nationals and foreigners visited Brazil’s national parks and conservation areas in 1998, and the country’s former rubber capital of Manaus has become a favored jumping-off point for nearby ecotourism lodges. The world’s second largest barrier reef off the coast of Honduras and Belize is attracting large numbers of underwater ecotourists. An estimated 10.3 percent of tourists who visit Peru go birdwatching in natural areas. Every country in Latin America and the Caribbean offers at least some ecotourism opportunities.

Big multilateral financial agencies, such as the Inter-American Development Bank, are starting to provide loans for self-supporting ecotourism projects, or for projects in which ecotourism plays a role (see Portraits of ecotourism). An example is a new initiative that promises to realize some of the vast ecotourism potential of Brazil’s Amazon basin (look for articles in upcoming issue of IDBAmérica).

“The IDB sees ecotourism as a way to aggregate a great deal of value,” says Juan Luna-Kelser, team leader for the Bank’s Amazon project. “It gives us a vehicle for protecting the environment and at the same time providing jobs and preserving the cultural values of local communities.”

The IDB’s Multilateral Investment Fund also has helped to finance a now-famous pilot effort in Bolivia (look for articles in upcoming issue of IDBAmérica). The Bank has financed other small efforts as part of larger projects.

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Date posted: January 2002

Lifeguard on patrol...

Ecotourism dreams...