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Private Private investment in Marine parksinvestment in Marine parks CChumbehumbe Island Coral Park Ltd. in Island Coral Park Ltd. in Zanzibar/TanzaniaZanzibar/Tanzania

Coral reefs disappearing fastA case for private investment in marine conservation, in particular, even more than in terrestrial parksChumbe Island Coral Park: objectives & work doneFinancing Marine park development & operationsLessons learned…Wish list…

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Coral reefs are threatened by:Coral reefs are threatened by:

Blast fishingBlast fishing

OverfishingCoastal overdevelopment

Aquarium & Curio trade

Marine pollution

& Fish poisoning

Global warming - bleaching

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Coral reefs are disappearing fastCoral reefs are disappearing fast

27 %27 % of world’s coral reefs lost in 2000;3232 %% in critical stage or threatened;50%50% of live coral cover of Indo-Pacific lost between 1984-2003;Many Marine parks are paper parkspaper parks;40 countries40 countries with reefshave no parks at all.

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Private investment canPrivate investment can directly directly support marine conservationsupport marine conservation

Operators are on the groundare on the ground, can build local alliances with other resource users (formal & informal sector);May invest directly in marineconservation, e.g. private private Marine parksMarine parks like ChumbeIsland Coral Park,or mmanageanage small Marine parks, core zones under contract,also supportsupport Monitoring,surveillance, training, marketing.

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EcotEcotourismourism is nonis non--destructive destructive use, and:use, and:

Increases economic economic valuevalue of coral reefs

Builds local ownershiplocal ownershipby attracting local investors, employing local people

Offers ssustainabilityustainability &long-term benefitsbenefits

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EcotourismEcotourism -- the most sustainable the most sustainable option for economic use of reefsoption for economic use of reefs

This Manta is one meal for few people only.

This Manta can provide income for many people over many years...

..if benefits are shared?..if benefits are shared?

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Benefits of Marine Parks over Benefits of Marine Parks over Terrestrial parksTerrestrial parks……

Terrestrial parks:Terrestrial parks:Often excludeexclude local people,‘‘SpillSpill--overover’’ not beneficial, as harvesting wildlife as ‘bush meat’ is illegal;Instead humanhuman--wildlife conflictswildlife conflicts, e.g. danger to life & damage to crops & livestock;‘‘Benefit sharingBenefit sharing’’ not automatic & often controversial:CompensateCompensate local people for lost resource use with tourism revenues: often difficult

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Benefits of Marine Parks over Benefits of Marine Parks over Terrestrial parksTerrestrial parks……

‘‘NoNo--taketake’’ Marine parksMarine parksAlso excludeexclude local people;But provide fish nurseriesfish nurseries & spawning grounds;ReRe--stockstock neigbouring areas,‘‘SpillSpill--over effectover effect’’ increases catches after 3-5 years;Fishers benefit directlybenefit directly!Less human-wildlife conflicts,Good potential for alliance alliance between fishers and tourism investors

And stronger case for private And stronger case for private Marine ParksMarine Parks……

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ChumbeChumbe IslandIsland -- a private nature reserve off Zanzibara private nature reserve off Zanzibar

Uninhabited coral rag island, 8 miles south of Stonetown,1 km x 200 mtr, 22 ha

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MPA zoningMPA zoning

Western fringing reef NoNo--taketake--zonezone 1km x 300 metresNo bufferNo buffer zoneNorthern Forest Reserve SanctuarySanctuaryNature trails southDeveloped area 2.4 acres for EcolodgeEcolodge

Chumbe Island Coral Park

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Marine ParkMarine Park & Forest Reserve& Forest Reserve (fully protected since 1994)(fully protected since 1994)

Sanctuary forendangered

Aders duikerCoconut crab

Protected byPark rangers(former fishers)

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VisitorsVisitors´́ Centre & Nature trailsCentre & Nature trails

Guest management and education (max 14 people per day)

Lowest impact Eco-architecture

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EcoEco--lodge lodge (7 bungalows)(7 bungalows) with statewith state--ofof--thethe--art ecoart eco--technologytechnology

Rainwater catchmentComposting toiletsGreywater filtrationSolar energy

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Chumbe Park management staffChumbe Park management staff

Ca. 30% of staffCa. 30% of staff directly employed for Park Management & Education:Project ManagerProject Manager, Marine biologist, mostly dealing with Government issues;Conservation CoordinatorConservation Coordinator, Marine biologist, supervising Rangers and conservation issues;8 Park Rangers8 Park Rangers, former fishers, for enforcement, monitoring, guidance of visitors and school children;Education CoordinatorEducation Coordinator for school programs.

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Policy, legal and institutional Policy, legal and institutional context: context: opopportunitiesportunities ……

Up to 1996: NNo legislation o legislation & institutions& institutions for marine conservation in Zanzibar

Economic liberalisation &tourism creating a market a market for conservationfor conservation

Legal base for private private MPAMPA: Zanzibar Investment Act 1986, 1988 Fisheries Act, Land lease & Management contracts

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Winning public support for the Winning public support for the Marine ParkMarine Park……

VVillage meetingsillage meetings (1991/92)Training fishersTraining fishers as Park Rangers (from 1992)Informal on-the-job training by volunteersvolunteersPark Rangers Park Rangers ““educateducatee””fishers & help in emergencyEnvEnv. Education programs. Education programsAdvisory CommitteeAdvisory CommitteeManagement PlansManagement Plans 1995-2005 & 2006-2016

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Educational programsEducational programs

Awareness tours for Government officialsGovernment officials;Workshops for fishermenfishermen;School School EExcursionsxcursions for snorkeling & nature trails: up to 2008 ca. 2.500 kids, 500 teachers

CCriticalritical issue:issue: are up- market guests disturbed by school children?

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Funding Marine Park development Funding Marine Park development –– PrePre--operational phase 1991operational phase 1991--9898

Total 1.2 Mio US$

Donor Volunteer Private

Sources of investment:50% private funds FDI50% private funds FDI;;25% ca 40 Volunteers25% ca 40 Volunteers (incl. Project initiator and main investor), individuals & agencies SES, BESO, APSO.25% Donor support25% Donor support for baseline surveys, nature trails, Visitors Centre: GTZ, GTZ-CIM, GTZ-GATE, Forest Stamp Program, Netherlands Embassy, EC-Microfund, etc.

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How the investment was used How the investment was used -- PrePre--operational phase 1991operational phase 1991--9898

60% Conservation & Education60% Conservation & Education -Negotiating the Park & Manage-ment contracts with GoZ (1991-95), baseline surveys, Ranger training & employment (from 1992), Visitors’ Centre (1998), Reef & Forest nature trails & education materials (from 1995), rat eradication (1997)40% Tourism Infrastructure 40% Tourism Infrastructure --Ecolodge & tourism services

Investment used for:

Con & Ed Tourism

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EcolodgeEcolodge -- What worked in marketing?What worked in marketing?

Internet from 1998International Awards, e.g.

1999 British Airways Tourism for Tomorrow Global Award2000 UNEP Global500 Award & Chumbe at EXPO2000 (paid by German Aid)2001 IH&RA & CondenastEnvironmental Awards2005 TO.DO! Responsible Tourism (Germany)

Travel writers, Press, TV, Radio documentaries, Word of Mouth

0

20

40

60

80

100

% 15 26 37 30 41 43 63 65 86-'99 -'00 -'01 -'02 -'03 -'04 -'05 -'06 -'07

Occupancy rate 1998-2007

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Income from visitors Income from visitors (in 1,000 US$)(in 1,000 US$)

Ecotourism Ecotourism ––main source of incomeDirect donor support:Direct donor support:

1999 Aders’ duiker SanctuaryEducation Program ~ 5.000 US$/year

Indirect support:Indirect support:Volunteer workAwards, TV documentaries & travel writers, 1998-2008 worth ca. 10 Mio US$10 Mio US$

0

100

200

300

400

500

600

Income 22 43 83 129 278 300 450 490 550

-'99 -'00 -'01 -'02 -'03 -'04 -'05 -'06 -'07

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Sustainability:Sustainability: OpOperationerationss covered by covered by EEcoco--tourism proceeds from 2000tourism proceeds from 2000

Min. budget ca. 200.000 US$/yr.Staff: 2 expatriates, 40 Zanzibar.Partnerships & Cost control:Partnerships & Cost control:

Government, NGOs & Zoos for school programs & protected species sanctuariesVolunteers & University researchers for R & M Sponsors for nature trails, patrol boats etc.Buy & fix equipment on informal markets

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Lessons learned:Lessons learned:

RedRed tapetape & corruption delayed operations and multiplied investment costs (x 3)EcoEco--technologytechnology costlyNeed to go upup--marketmarket…and for aggressive marketingCCriticalritical:: volatile tourism market, but not not threatening sustainability

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The biggest challenges: The biggest challenges: not the fishermennot the fishermen……

Government tourism policytourism policyfavours big corporate investors;LLowow security of tenuresecurity of tenure & contracts; No tNo taxax reliefrelief or other incentives for investment in conservation;RRed tapeed tape & corruption, ‘punitive’ taxation;CompetitionCompetition from over-funded donor aid…

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Why competition from overWhy competition from over-- funded aid projects?funded aid projects?

Because these:Create bureaucracies at central bureaucracies at central levellevel, taking resource control away from local people;Increase costsIncrease costs of managementof managementby introducing First World standards;Create vested interestsvested interests that have little to do with local concerns;Crowd outCrowd out local initiatives & local participation.

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Wish list Wish list (incentives for the (incentives for the ‘‘rightright’’ investors)investors)……::

Conservation should notnot be a State monopoly;Donors to help create incentivesincentives (policy & regulatory) for investment in conservation, rather than subsidizing state bureaucracy;Encourage locallocal Park management by genuinegenuinestakeholders of formal & formal & informalinformal private sector…

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but also: abut also: a change of paradigms change of paradigms neededneeded……

The private sector – the Bad GuyBad Guy (to be controlled, regulated & source of funds only)?The ‘‘local communitylocal community’’ – not profit-oriented?Private sector profit alwaysincompatible with incompatible with conservation?conservation?Government park authorities, donor agencies, NGOs – what are THEIR stakes?THEIR stakes?

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