biodiversity and ecosystem services in the tourism sector

Vital Wave Consulting Field Teams

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Transforming Risk into Opportunity:

Biodiversity & Ecosystem Services and the Tourism Sector

February 29, 2012

Christina Heyniger Strategic Accounts & Sustainable Tourism

Vital Wave Consulting

C. Josh Donlan, PhD Founder and Director

Advanced Conservation Strategies

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© 2012 Proprietary.

Introductions

Christina Heyniger Strategic Accounts & Sustainable Tourism Vital Wave Consulting www.vitalwaveconsulting.com [email protected]



www.advancedconservation.org [email protected]

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© 2012 Proprietary. 2

Agenda

Overview of Tourism Industry (Christina)

Biodiversity & Ecosystem Services, Risk, and Investments (Josh)

Case Study: Integrating Social Ventures with High-impact Environmental Outcomes (Josh)

Pressures and Risks Facing Tourism Industry (Christina)

Summary of Conclusions (Christina)

Questions & Answers (Josh, Christina)

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Tourism Industry Overview

Tourism Industry

• Environmental changes • Changing consumer patterns • Travel to wilderness areas increasing • Travel to emerging markets increasing

Environment

The tourism industry operates at the intersection of business and environment

Business • International arrivals • 4% in 2011 to more than 980 million

• International travel generated $US 919 billion in export earnings in 2010

• Environmental resources are critical attractions for tourists

• Global: Tourism accounts for approximately 5% of global carbon dioxide emissions

• Local: Visitors can offer a financial incentive to conserve, but also threaten

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Spend Shifters - a sea of change

• Sensuous 30%

• Daring 20%

• Friendly 148%

• Socially Responsible 63%

• Kindness/Empathy 391%

Brand Asset Valuator (BAV) 1million consumers, 20 years, 50 countries, 70 brand metrics

• Exclusive 60%

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Changes in Tourism as a Result of Changing Attitudes and Values

Demand for authenticity

Changing Values

More Experienced

Travelers

Risk for tourism businesses increases as desire for “authentic” travel experiences increases

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Environmental Investments in the Tourism Sector

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100% Market

Reward tourism businesses or other stakeholders based on desired environmental or social outcomes.

Investments in eco-lodges with a focus on environmental conservation or poverty alleviation are funded by NGOs or aid agencies. They often lacking enough business to make them sustainable.

Spectrum of approaches to coping with uncertainty around environment and trying to stimulate better outcomes.

100% Charity

Input-based

Outcome-based

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Risk Mitigation Strategies

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Types of Risk Facing Tourism Industry Today

Risk Mitigation Strategies

Reputational

Regulatory

Operational

Legal Liability

Systemic

CSR

Philanthropy

Biodiversity and Ecosystem

Services

Product Adaptation

Biodiversity and Ecosystem Services (BES) address the root cause of the risk businesses face

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Advanced Conservation Strategies Focused on outcomes and incentives

• Our foundation is science, yet we work and collaborate outside of science to innovate and implement new solutions and ventures for environmental and sustainability challenges.

• We leverage science, markets, design, finance, and behavioral economics for organizations trying to solve problems.

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Ecosystem Services are especially relevant in emerging markets

• Biodiversity & ecosystem services

• Why should the private sector care?

• How we invest in biodiversity & ecosystem services

• An non-tourism example: sustainable fisheries and sea turtles

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Examples of ecosystem services

Environmental Services:

• Clean water

• Carbon sequestration

• Disaster protection

• Climate change adaptation

• Fish nursery grounds

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• Biodiversity and Ecosystem Services (BES) degradation and loss has gained business’ attention in recent years.

• Higher public awareness of BES is leading to changes in consumer preferences and purchasing decisions.

• Companies are holding an increasing amount of environmental risk

Turning risk into opportunities: strategic approach, with a focus on risk evaluation and mitigation.

Biodiversity and Ecosystem Services is a new field gaining industry credibility with applications for tourism

0%

25%

50%

75%

North America Western Europe Asia Pacific Latin America

Views of CEOs on threat to growth from biodiversity loss

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Potential Investments For Biodiversity & Ecosystem Services

Investment Support for extracted bio-products

Support for reduced impact use

Support for intact use

Payment for other environmental services

Payment for use rights

Performance-based payments for biodiversity

Examples Logging, non-timber, hunting

Sustainable agriculture, sustainable fisheries

Eco-tourism, sport hunting, wild honey

Carbon, watershed protection

Land easements, non-logging concessions

Paying for bird breeding success, paying for occupied wolf dens

Least Direct

Most Direct

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Least Direct

Most Direct

Livelihoods

Payments








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Least Direct

Most Direct

Mature Markets

No markets








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Least Direct

Most Direct

Mature Markets

No markets


Mature Markets

Paying For Biodiversity & Ecosystem Services

Directly

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16% of the world’s protein

>200 million people

$82 billion

¼ of global catch is bycatch

Seabirds & turtles

Ecosystem impacts

Part I. Shellcatch: The Real Fish Story

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• Over a third of seafood is mislabeled

• Seafood industry is calling for systems that ensure that U.S. seafood is safe, legal, and honestly labeled

• Traceability has been challenging. Market Opportunity


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Shellcatch: The Real Fish Story

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Least Direct

Most Direct

Mature Markets

No Markets



Sustainable agriculture, “alternative income generation”



Easements, non-logging concessions


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The social and economic importance of fisheries and the biological realities of overfishing and bycatch result in major tensions over ocean resources.

Part II. Creating Innovative Solutions for Fisheries Bycatch

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Pacific Loggerhead Sea Turtle

Adults & Nesting Sites

Juveniles (~40 years)



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• Regulated Industrial • $50 million a year • Bycatch Measures In Place • 17 turtles year-1 = closure


U.S. Hawaiian Long-line Fishery

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• Unregulated Industrial

• No Bycatch Measures

• Turtles year-1 = ?

• Regulated Industrial • $50 million a year • Bycatch Measures In Place • 17 turtles year-1 = closure


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• Unregulated Artisanal • <$100,000 • Turtles year-1 = >2,000 • Scientific knowledge • Community outreach


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$$

Saved sea turtles

Regulated industrial fishers buy bycatch credits (avoided mortality) in exchange for regulatory certainty around closures.

Artisanal fishers change where and how they fish in exchange for financial payments.

Challenge: need technology to documents and certify the bycatch credits (avoided mortality).


Interfishery Bycatch Offsets

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Part I. + Part II. = Direct, high-impact outcomes

Directly investing biodiversity services by integrating a program with an existing “environmental market”, and providing opportunities for environmental risk management.

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Least Direct

Most Direct

Mature Markets

No markets


Mature Markets

Paying For Biodiversity & Ecosystem Services

Directly

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Hypothetical Case: Market-influenced & outcome-based approach for the Sundarbans

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100% Market

100% Charity

Input-based

Outcome-based

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Summary of Conclusions

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Tourism is a valuable industry; it also relies heavily on intact biodiversity & ecosystem services

Leveraging market-influenced and outcome-based approaches for environmental protection can help minimize risk carried by tourism businesses and destinations, and incentivize place-based environmental stewardship

As tourism continues to expand in response to consumer demand trends, it puts more pressure on natural resources and is increasingly susceptible to environmental risk

Thank You

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Questions and Answers

Christina Heyniger Strategic Accounts & Sustainable Tourism Vital Wave Consulting www.vitalwaveconsulting.com [email protected]



www.advancedconservation.org [email protected]