sustainable tourism management - bfn · ina, isle of vilm prof. dr. wolfgang strasdas august 2,...

INA, Isle of Vilm Prof. Dr. Wolfgang Strasdas August 2, 2007 / 1

Sustainable Tourism Management

Biodiversity Conservation Finance Seminar

Tourism as a Source of Revenuefor Biodiversity Conservation



Particularities of Tourism

Many forms of tourism depend on natural resources(climate, beaches, scenery, wildlife, biodiversity …).

The tourism product must be “consumed” at the pointof “production”. There are no external users.

If access can be controlled, direct user fees can becharged and non-payers can be excluded.

There are opportunities for additional regional income.

There are no trade barriers to tourism.

Tourism is mostly non-consumptive in relation to the primary attraction (existence value of biodiversity).



Just a „Caribbean Thing“ ?



Economic Significance of Tourism

2005: > 800 million arrivalsreceipts: ca. US$ 680 billion

almost uninterrupted growthsince 1950s, esp. in relation to receipts

Forecasts: arrivals doubledby 2020 with average annual growth rates of 4.1% (long-haul: 5.4%)

Direct job creation: 2.8% of all; indirectly: 8.3%

6% of all exports; 29% of exports of services(agricultural products: 7%)

Source: UNWTO



Share of Developing CountriesDCs receive 36% of inter-national tourist arrivals(less in receipts)

Tourism is one of the topfive sources of foreign currency in >80% of DCsand the main source in almost one third of them

Tourism’s share of DCs’ service exports: 43.3%;70.6% for LDCsTourism is predominant economic activity in Small Island States & many ecotourism destinationsIncreasing overall market share fore DCs



Domestic Tourism in Emerging Economies

Country No. of domestictourists

Ratio Int. : domestic

India 135.0 mio. 1 : 54

China 740.0 mio. 1 : 23

Brazil 41.0 mio. 1 : 8

Thailand 55.1 mio. 1 : 6

Indonesia 28.3 mio. 1 : 6Source: Roe et al. 2004



The Case of Vietnam

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

00.000

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

Jahr

Anz

ahl T

ouris

tena

nkün

fte



Nature Tourism: Market volume

Size of global market unclear (7% ??)(ranging from 1 to 60%!)

Lower figures somewhat confirmed byUNWTO studies in 2001 (narrow definition)

But: 30 to 60% nature-related holidays inGermany, North America, Australia

Millions of visitors in European, N. American,Asian national parks; World Heritage Sites

domestic/local markets neglected

Growth rates unclear (lower than expected inWTO studies)



7.6 million visitors in Zhangjiajie WHS in 2003 !

2 million visitors in the Bavarian Forest NP !

4 million visitors in Yosemite N.P. !



Worldwide tourism turnover estimated to be aroundUSD 6 trillion (and expected to grow)

Global network of functioning PAs would requireUSD 30 billion = 0.5% (based on 2003 WPC in Durban)

Private reserves: 25% of revenue from tourism



Nature Tourism: Countries of OriginMain marketsAnglo-Saxon countriesCentral/NorthernEurope

Emerging marketsSouthern EuropeJapanTransition and emerging economies(Eastern Europe, Asia, Latin America)Expatriates



Figures from Germany

7% indicated that their holiday was predominantlynature-related, but 25% said that they spent anature holiday when they had multiple options.

45% indicated that they had visited naturalattractions frequently or very frequently duringtheir holidays.

77% said that experiencing nature is an importantor very important part of their holiday expectations.

...whereas in the WTO study the ecotourism marketshare (outbound TOs) was estimated at only 1%.



Nature Tourism Demand Segments

The committednature tourist

The interestednature tourist

The casualnature tourist

The adventure& sports tourist

The “consumptive“nature tourist

Nature tourists with cultural interests



1. Regulatory approach: Mitigation of negative tourism impacts;environmental education

2. Proactive approach: Provision ofrecreation (and tourism) opportunities;nature interpretation

3. Promotional approach: Development& promotion of tourism in the region

Approaches to tourism management



The example of the PNR du Vercors

Cliquez sur les activités



Benefits to conservation

Direct financing of protected areas

Indirect financing of protected areas

Benefits to the surroundings

Alternative income opportunities for local people

Income generation on the regional, national, and international levels

Indirect benefits

Creation of stakeholder interest (supporting conservation)

Types of ecotourism-related benefits



Benefits to ProtectedAreas



Types of tourism-related revenueDirect

Tourists: admission/permit/use fees

Tourism businesses: concession/license fees

Hunting and fishing permits

Indirect/voluntary

Offering additional tourism services

Donations from visitors & tourism companies

Tourism taxes (hotels, airports)

Carbon offsetting



Purpose of fees is to support manage-ment activities, not to offset opera-tional costsRecreation fees collected at over190 parks (admission and use fees:tours, campgrounds; commercial filming)Concessions Franchise FeesNPS may accept private and corporate donations20% of budget is spent for visitor services“Recreational Fee Demonstration Program” at 100 sites: 80% of fees retained by collecting parkfor conservation or visitor projects

Sources of Funds in the U.S.

Source: www.nps-gov



Challenges in developing countries ...Low tourism potential

Entrance/use fees too low or too high

Bureaucratic, unflexible procedures

Fees charged erratically

Lack of, or cost of access control too high

No visible services in return (no maps, decayof the tourism infrastructure etc.)

Lack of communication on purpose of fees

Lack of shopping opportunities or tourismoffers (opportunities for tourists to spend money)



... more challenges

Income from fees not availablefor conservation purposes

Private sector opposes fees:- “Nature as a free common good”- “Impaired competitiveness“- “Bureaucracy, irregularities, lack of transparency“

Tourism sector is inexperienced and disorganised(incapable of organising common long-term interests)

PA administration lacks professional tourismknow-how and lack of communication betweenconservation agencies and private sector



Criteria for setting fees

Attractiveness (scenicvalues, watchable wildlife)Accessibility of PA

Market potential (willingness to pay)

Differentiation, flexibility of fees(areas, seasons, groups)

Cost recovery or profitability ?

Using fees as a steering instrument



... additional recommendationsOrganisation and management

1. Maintenance of the tourism infrastructure

2. Use for (local) conservation purposes

3. Avoiding budget cuts

Creation of an autonomous organisation; or “decentralised“ PA agency; or concession to private operator

Tourism management to be based on a business plan

Communication, participation, transparency

Use of revenue



The example of Tanzania

TANAPA is a parastatal, semi-auto-nomous organization whose operatingbudget is based 100% on tourism fees

It has a marketing department and budget;Annual Business Report

Differentiated fee system: US$ 15–100/day forforeigners; $ 10-50 for huts; $ 20-40 for campsites

Many services/facilities given to private concessio-naires, but relations sometimes difficult

Local tourism “wards“, but: they are not trained;little service- or customer-orientation

Source: Behrens/Strasdas 2006



Concessions: SAN Parks

“Commercialization as a Conservation Strategy“

Own tourism operations hardly efficient; additionalinvestments would be risky & loans hard to get

12 concessions for exisiting & new accommodations,plus exclusive use rights of surrounding area

Based on contractual agreements concerning conser-vation, environmental management , community benefits

Monitoring/reporting and penalties in case of non-compliance

Experienced & responsible private tourism sector

Competitive bidding system for attractive sites

$ 90 mln. concession fees over 20 years(based on % of turnover with minimum payment) Source: Fearnhead 2007

http://www.sanparks.org/

http://www.sanparks.org/gallery/v/parks/richtersveld/

http://www.sanparks.org/tourism/wild/



Protected AreasConservation Trust, Belize

Tourists pay US $ 3.75 before departure, plus20% commission of cruise ship passenger head tax

1997: revenue of appr. US $ 400,000

Income used for investments & special projects(conservation, planning, infrastructure), training

Board of supervisors: government institutions,NGOs, privatesector non-governmentmajority

Source: www.pactbelize.org



Visitor payback methodsDonations: personalized, on-site and afterwards; or voluntary charges for services (varying amounts)

Sponsorship by companies, former or regular visitors;(high amounts, but excellent PR necessary)

Membership in a conservation club (Friends of ...)(varying amounts; long-term follow-up necessary)

Opt-in or opt-out supplements when paying operator orhotel bills (small amounts, buT sizeable with mass operations)

Merchandizing with a mark-up (small amounts)

Direct participation (volunteer work)

Source: The Tourism Company 1997



Tourism and Climate Change



Tourism and Climate ChangeTourism may contribute about 5% to the global man-madegreenhouse effect, mostly through transport

But: Tourism is a heterogenous industry, and int‘l aviation is notcovered under the Kyoto Protocol.

And: Nature-based tourism is even more energy-intensive thanmainstream resort tourism.

Long-haul tourism and aviation have recently become majorculprits in public opinion and a target for government regulation(esp. in DE, UK)

ITB survey 2007: 68% of tourism professionals see tourism as responsible for contributing to global warming

FUR survey 2007: 23 bis 40% of German holidaymakers say theywant to be more climate-friendly when traveling



Tourism and carbon-offsetting

Voluntary carbon-offsetting becomesincreasingly popular (incl. business travel)

Direct, visible, “pretty“ mitigation preferedby tour operators, lodges

Tree planting used to be “charismatic carbon“,but has recently gotten discredited

May be replaced by avoided deforestation &habitat restoration

Renewable energies becoming more popular asoffsets (possibly benefitting local communities)



Some Examples

Forum anders reisen: advertisecarbon-offsetting on websites

American ecotourism operators (outbound):voluntary carbon-offsetting becoming increasinglypopular; but: no change of travel behaviour

Intrepid Travel (AUS): carbon-offset manager;all flights carbon-neutral (45,000 PAX)

Tourism Industry Carbon Offset Service (TICOS):British mass tourism operators

“Carbon-neutral“ airlines: “Sustainable Aviation“(UK), Silver Jet, Continental, Lufthansa ...

http://www.intrepidtravel.com/africatrees



Offsets 4,650 tons of CO2-e emissions per year

Wanted local compensation and additional philanthropic benefits

Pay for protection of 192.5 ha of rainforest through FONAFIFO

Make Costa Rica a carbon-neutralecotourism destination !



Local income generation

Community levies or fee shares

Sale or rent of land to investors

Employment in tourism enterprises

Provision of local goods & services

Contractual agreements withoutside investors

Joint ventures w. outside investors

Individual local enterprises

Community enterprises (CBT)

Empowerment

Investment

Risk

Skills required



Concession fee to community for exclusive & sharedland-use rights over 30 years (fixed rent + bed levy)

Joint anti-poaching team

CCA povides employment/training and buys local goods

Community development through an NGO (philanthropic)

Conservation

Corporation

Africa



Zhangjiajie WHS: Income effects

Professional tourism management (Park Inc., hotels, certified guides, charter flights)

2003: Yuan 3.2 bln. turnover (ca. € 320 million)

Tourism contribution to regional GDP: 40%(1989: 2.3%); service sector becomes more important than agriculture

Broadly distributed income effects for all groups in society

but: Relocation of ethnic minorities from core zone

and: Environmental impacts from infrastructure



Thank you for your (hopefully) sustained attention!

sustainable tourism management - bfn · ina, isle of vilm prof. dr. wolfgang strasdas august 2,...

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