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last modified: Monday, December 19, 2005 10:47 AM |
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Ecotourism & Local Economic Development |
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David Epstein |
davideps@umich.edu |
Introduction
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image source: www.ecotour.org |
Ecotourism initially referred to travel to unspoiled areas that were under formal legal protection. One author explains how in
1. Local
populations should be associated with tourism activities and share equitably in
the economic, social and cultural benefits they generate, and particularly in
the creation of direct and indirect jobs resulting from them;
2. Tourism policies should be applied in such a way as to help to raise the standard of living of the populations of the regions visited and meet their needs; the planning and architectural approach to and operation of tourism resorts and accommodation should aim to integrate them, to the extent possible, in the local economic and social fabric; where skills are equal, priority should be given to local manpower; [3]
Demand Side 2.8 trillion dollars will be spent by individuals on personal travel and tourism. International travelers are expected to spend 818 billion dollars on goods and services within the economies being visited. |
Supply Side The direct Gross Domestic Product (GDP) for the industry will be 1.7 trillion dollars. 74 million people will be directly employed through travel and tourism. |
The economic impacts of tourism on
host societies are usually measured through changes to the Gross Regional
Product (GRP), multipliers, input-output analysis, and local-level impact
studies.
[9]
As
in other forms of economic development, there are several types of multipliers
that can be studied. The box below gives more detail on measuring GRP and the
employment multiplier.
Gross Regional Product (GRP) = C + I + G + E � M Where: C = consumption; I=investment; G = local government spending; E = exports; and M = import purchases. As can be seen from the above formula, if foreign contractors win the bids for new hotels or if tourists require luxury items unavailable in the host country, then these imports negatively impact the GRP. Thus, a community in need of diversifying its economic base may need to employ more than just tourism to do so. Income multiplier (IM) = 1/(1-MPC) The marginal propensity to consume (MPC) measures the fraction of new disposable income spent on consumption (and not saved). For example, a family spends $1,000 on tourism in a society where the MPC is one half for everyone. The owners of the tourism businesses (hotels, restaurants, attractions) would spend $500 of this money. The next tier would spend $250, etc. The income multiplier (IM) equals 1/(1-½) = 2. This means that the original $1,000 in tourist spending resulted in $2,000 total local spending.
Adapted from: Ionides, �The Economics of Tourism in Host Communities�, p.42 in Tourism in Destination Communities , edited by S Singh and D J Timothy, 2003. |
image source: www.globaleye.org.uk |
Colonization by Europeans and displacement by the creation of national parks in the 1920s have left five million people in |
Solution #1: WINDFALL (Wildlife Industry New Development for All)
Program Overview
In 1978, the government distributed wildlife meat to people living around the parks to demonstrate the benefit local resources could provide and the need for conservation strategies. Mechanisms for local economic development
None identified. Comment & Criticisms
This top-down project failed because it did not educate the indigenous population about environmental practices or connect desired behaviors to specific economic incentives. |
Rural settlement in northern Zimbabwe. image source: www.globaleye.org.uk |
image source: africanconservation.org |
Program Overview
In 1989, the CAMPFIRE program was developed to decentralize the responsibilities and benefits of nature conservation. While the program varies across the country, it generally involves the creation of democratically elected Rural District Councils (RDC). |
These RDCs receive revenues from
hunting and tourism, a portion of which are shared with local communities to
motivate improvements in environmental stewardship. Since income is directly
tied to maintaining wildlife populations, locals have a vested interest in
stopping poachers. These communities invest program profits in schools,
clinics, and infrastructure. In 1994, CAMPFIRE received additional funding from
The U.S. Agency for International Development (USAID) to diversify its program
through ecotourism and other non-hunting based initiatives. Ecotourism related
grants were issued to:
It has been argued that colonial
activities in
Case Study
"Shall
We Gather 'round the Campfire?", Resources for the Future (RFF) 2005
by Carolyn Fischer, Thomas Sterner &� Edwin Muchapondwa
�Campfire:
Zimbabwe�s Tradition of Caring�, Voices of Africa, United
Nations-Non-Governmental Liason Sevice (UN-NGLS), by Stephen Kasere, Director,
CAMPFIRE Association, Harare
�Description and Activity Data Sheets: Zimbabwe 2001�, USAID Program
�Final Report: October 1995 �
September 2003 The Zimbabwe Natural Resource Management Project�PHASE II�, Development
Associates, Inc.
�Focus on Sustainable Development Case Study: CAMPFIRE, Zimbabwe�, �2001, GlobalEyeNews
�Green Aid in India and Zimbabwe - Conserving Whose Community?�, Geoforum, 2001, Zoe Young and George Makoni with Sonja Boehmer-Christiansen
[1] TIES website, www.ecotourism.org, and Martha Honey, Ecotourism and Sustainable Development, 1999
[2] Martha Honey, Ecotourism and Sustainable Development, 1999, p.11
[3] World Tourism Organization website, http://www.world-tourism.org/code_ethics/eng/5.htm
[4] Quote from Economics of Tourism in Host Communities, 41 based on Debbage and Daniels, 1998
[5] �Travel includes goods and services acquired by personal travelers, for health, education or other purposes, and by business travelers. Unlike other services, travel is not a specific type of service, but an assortment of goods and services consumed by travelers. The most common goods and services covered are lodging, food and beverages, entertainment and transportation (within the economy visited), gifts and souvenirs.� (WTO Technical Notes http://www.wto.org/english/res_e/statis_e/its2004_e/its04_technotes_e.pdf)
[6] WTTC World Report 2005, http://www.wttc.org/2005tsa/pdf/World.pdf
[7]
D.
Ioannides, �The Economics of Tourism in Host Communities�, p.40 in Tourism in Destination Communities, edited
by
[8]
D.
Ioannides, �The Economics of Tourism in Host Communities�, p.42 in Tourism in Destination Communities,
edited by
[9] Ryan, 1991 in Ionides, �The Economics of Tourism in Host Communities�, p.42 in Tourism in Destination Communities, edited by S Singh and D J Timothy, 2003.
[10]
S Singh, D J Timothy and R K Dowling, �Tourism and Destination Communities�, p.3 in Tourism in Destination Communities, edited by
[11] A.M. Johnston, �Exercising Indigenous Rights in Tourism�, �, p.117 in Tourism in Destination Communities, edited by S Singh and D J Timothy, 2003.
[12] Some permutations include �shopping� and �sangria�
[13]
S Singh, D J Timothy and R K Dowling, �Tourism and Destination Communities�, p.3 in Tourism in Destination Communities, edited by
[14] A.M. Johnston, �Exercising Indigenous Rights in Tourism�, �, p.118 in Tourism in Destination Communities, edited by S Singh and D J Timothy, 2003.
[15] A.M. Johnston, �Exercising Indigenous Rights in Tourism�, �, p.118 in Tourism in Destination Communities, edited by S Singh and D J Timothy, 2003.