Emerging Market in the Tourism Industry - Research Paper Example

Eco Tourism: A Sector of the Tourism Industry and Section December 5, 2005 Eco Tourism: Emerging Market in the Tourism Industry. The tourism industry has become the world's largest industry with an estimated 460 million international tourist arrivals recorded in the first seven months of 2005 (World Tourism Barometer, Oct. 2005). According to the World Tourism Organization, this represents an increase of 25 million or 5.9% in growth over the past year's figures. According to Nash (2005), eco-tourism makes up about 7% of the tourism industry, with a growth estimated at 10% to 25% per year. Over the past 15 plus years, 'eco-tourism' has become an emerging and future market in the Tourism industry. Targeting a middle-income household, with an average income of US$60,000 - $130,000 per year, eco-tourism caters to an educated but non-elitist sector (Yoder, 1998). However, this niche market of the tourism sector has come under scrutiny for the positive and negative implications it presents. We will examine the positive and negative factors of ecotourism by looking at the political, economic, social and technological factors of ecotourism, and how they can increase visitor arrivals. Due to the ambiguous nature of the term 'eco-tourism' and the many meanings it has been assigned, it can sometimes become confusing. The confusion raised by the term needs to be clarified in order to better understand the nature of eco-tourism. A definition must be given to facilitate the understanding of its impacts on the industry. Definition of Eco-Tourism Eco-tourism according to the United Nations Environmental Programme (UNEP, n.d, beginning section, 1) is a developmental tool that can promote the three basic goals of the Convention on Biodiversity as listed below: conserve biological (and cultural) diversity, by strengthening protected area management systems (public or private) and increasing the value of sound ecosystems; promote the sustainable use of biodiversity, by generating income, jobs and business opportunities in ecotourism and related business networks, and share the benefits of ecotourism developments equitably with local communities and indigenous people, by obtaining their informed consent and full participation in planning and management of ecotourism businesses. All the literature reviewed for this paper reveal that other definitions have referred to it as nature based, alternative, green, adventure, and agri tourism. The main aim here is not to confuse ecotourism with sustainable tourism, although both are closely linked. Whereas ecotourism is more concerned with economic benefits for the community while maintaining a sound ecosystem, sustainable tourism is more concerned with saving the environment without economic gain. The one common factor in all these definitions is that there is a consensus that eco-tourism is about travel to destinations that are sustaining their natural resources for economic, social, and most importantly, natural benefits. With this definition at hand, a review of the literature reveals some key points of interest. These points address both negative and positive views about the management and positioning of eco-tourism in the industry and the future viability in the global framework. Positive PEST factors of Eco-Tourism Eco-tourism provides several benefits when managed properly. The first of these benefits is Political. Politically, most governments in one way or another have embraced ecotourism. This was encouraged when the area received its' largest boost with the United Nations Environmental Programme (UNEP) declaration of 2002 as the International Year of Eco-tourism. Governments around the world have seen the importance of this niche market and recognized the necessity to support their tourism industry. Citing examples of various government efforts throughout the world Nash (2005) points to the growing involvement of government agencies in promoting and aiding eco-tourism. In England for example the newly formed Natural England, aims to aid all sectors of business in promoting and managing their natural resources (Wikepedia, n.d., beginning, 1). With programs like the visitor payback scheme, partly funded by the Countryside Agency, the English have shown their support for programmes that help sustain their natural resources. The second positive factor is economy based. English Nature, now part of Natural England states that tourism in the United Kingdom generates 4.5% of the Gross Domestic Product (GDP), and 7% of employment. With over 200 National Nature Reserves (NNR) attracting nearly 13 million visitors there is a great need for sustainable eco-tourism a potential for economic opportunities. Also, Economic growth in the UK for 2005 has been on an increase and has positively affected the hotel business sector as revealed by the UK Forecast Report conducted by PricewaterhouseCoopers (2005). The growth for the hotel sector is expected to increase based on the growth of the UK economy which is forecasted 'to grow around 2.7 percent this year and by around 2.5 per cent in 2006' ('Forecast', n.d., 2005, page 1). This provides an opportunity for the Provincial Leisure accommodators to campaign using ecotourism as a draw to increase their market share, which according to the PricewaterhouseCoopers report (page , is not doing as well as their city counterparts. Another economic benefit to an area will result in the creation of new business and job opportunities. Communities, however, must be included in the decision to turn their community into an eco tourist destination. Remembering that ecotourism is about minimizing impact on the host culture and environs, local business operators should be encouraged and shown the value of investing in their community as a eco-tourist destination. Some may argue that eco-tourism will cause more harm than good (Yoder, 1998) but as an economic tool the opportunities to non producing areas with untouched natural resources this can be greatly beneficial. A case for ecotourism is perfectly presented in that of Costa Rica. Costa Rica has benefited with an increase in visitor arrivals from 943,000 to 1.1 million from 1998 to 2000. They have also increased their per capita GDP of US$6,700 compared to the other islands, like neighbour El Salvador, with a GDP of US$3,000. Costa Rica has also been called the Switzerland of the Americas with its high standards of living and minimal crime rate (Dasenbrock, Jan. 2002, 7). The revenue generated, returns to the host community and if managed properly will have minimal impact on the community and its environs. Another economic benefit derived from eco-tourism is self financing through revenue from entrance and park fees of fragile environments. This allows for the ecological preservation of sensitive areas, such as the gorillas of the Parc des Volcans in Rwanda. The money generated by the observation of the gorillas for one hour aids the Rwandan government in preserving all other protected areas (Nash, 2005). The English example is protection of Natural Nature Reserves (NNR) of which there are over 200 for the public to enjoy. The social impact of ecotourism is probably the most important one as the basis of this is to minimize disruption in the culture, and lives of the host community while enhancing meaningful cultural returns and economic benefits for all. Positives benefits of ecotourism for the host community include increase in training and educational opportunities where none exists. Increase economic opportunities for a flagging community while maintaining their unique culture. Technologically, the use of renewable and natural sources of energy will help in maximizing revenues earned while having minimal to no impact on the environment. Technologically we can do a lot of damage if we are not careful. In order to meet visitor demand, mismanagement of natural resources can lead to ecological disaster. Nash (2005) cites an example of the bright lights used on Mexican beaches which prevent female sea turtles from coming ashore to lay their eggs, thus preventing reproduction. Negative PEST factors of Eco-Tourism Politically the negative effects of the recent July bombings and past political climates have had adverse affects on the tourism industry. However since 2004 tourism and the economy in general have been on a steady incline. This however has to be managed by reassuring the visitor of the safety of the destination, nationally and internationally. The economic negative of eco-tourism is the exploitation of revenues. This occurs when the local community does not have the necessary resources and are forced to 'import goods to support eco-tourists' (Nash, 2005). The exploitation also occurs when foreign owned business return revenue to developed countries. The social negative of eco-tourism is described by Nash (2005) as 'population pressures'. There is more strain placed on the environment and the infrastructure when migrants come to a successful area seeking employment. Displacement of local communities in order to accommodate the creation of an environmentally protected area would go against the essence of eco-tourism. This is seen in the example of the Masai tribes removed, by Kenyan and Tanzanian governments, from wildlife preserves. The final negative impact on eco-tourism is the dependency fostered by eco-tourism. A community that becomes dependent on this kind of tourism, which tends to be seasonal, will falter when tourist arrivals fall. Eco-tourism as described so far is dependent on several factors for sustainability in the tourism industry. It is mainly dependent on the control of factors reviewed earlier. Positive forces imply that future environments are dependent on the preservation of not only the geographic location, but also the land and the people. The negative forces however describe it as 'eco-terrorism', which is used only to promote tourism for gain. Tour operators and hotels of eco-tourism are accused of using eco-tourism to create new business and bring in new clientele. Until recently, most businesses that fit themselves under the eco tourism umbrella had no real boundaries or criteria to declare a destination, tour or hotel eco tourist certified. With the declaration by UNEP for 2002 as the International Year of Ecotourism, an agenda listing 21 requirements was given for the industry to use as guidelines for becoming a member of ecotourism. Other institutions, both national and international, have since come up with standardizations and certifications of their own. An example of this being Green Globe. At present eco-tourism is favourably accepted market sector of the tourism industry. It has moved to the point where criteria have been created through associations like Green Globe 21, to qualify hotels and other operators as eco-friendly. Governments, like the UK with its comprehensive programme under Natural England, have also joined in to help assist where necessary, as they recognize the impact of tourism on the Gross Domestic Product and the futures of their countries. The growth of eco-tourism will continue, especially in undeveloped countries with their unique environments ready for exploration by the eco-tourist. There is however still much more to be examined as the out growth of other niche markets stemming from eco-tourism, such as agritourism and archeotourism, come to the forefront in England. This is the future of eco-tourism and its path is in the hands of pioneers who can envision the potential for this very important market of the tourism industry. References Dasenbrock, J. "The Pros and Cons of Ecotourism in Costa Rica" TED Case Studies Number 648, January, 2002. Retrieved December 8, 2005 from the Mandala Projects: http://www.american.edu/projects/mandala/TED/costa-rica-tourism.htm#general "Facts & Figures'. World Tourism Organization Barometer Vol. 3 No. 3 Oct. 2005. Retrieved on Dec. 5, 2005 from World Tourism Organization website: http://www.world-tourism.org/facts/eng/pdf/barometer/WTOBarom05_3_excerpt_en.pdf Ivanko, J. (2001, January). Putting the 'ECO' in Tourism. E, 12, 34. Retrieved December 5, 2005, from Questia database: http://www.questia.com/PM.qsta=o&d=5000071043 Nash, J. "Eco-tourism: Encouraging Conservation or Adding to Exploitation" Population Reference Bureau. Retrieved on December 5, 2005. http://www.prb.org/Content/NavigationMenu/Other_articles/April-June_20011/Eco-Tourism__Encouraging_Conservation_or_Adding_to_Exploitation_.htm "Position Statement: Sustainable Tourism". English Natures. Retrieved on December 5, 2005 from English Natures website: http://www.english nature.org.uk/ news statement.aspID=43 "Tourism". The Countryside Agency: Landscape Access Recreation. Retrieved on December 5, 2005 from The Countryside Agency website: http://www.countryside.gov. uk/LAR/Regions/southWest/activities/livingLandscapes/countrysidecapital/tourism.asp 'What is tourism' (2005, December). Eco-Tourism. United Nations Environmental Programme Website. Retrieved on December 5, 2005 from UNEP website: www.uneptie.org/pc/tourism/ecotourism/home.html Yoder, A. (1998, Spring). Sustainable Development, Ecotourism, and Globalization: Are They Compatible Student Paper presented for Interdisciplinary Minor in Global Sustainability, University of California, Irvine. Retrieved on December 5, 2005 from Darwin database: http://darwin.bio.uci.edu/sustai "The party is still far from over for the UK hotel sector". UK Forecast Alert. May 2005. PricewaterhouseCoopers: Hospitality Directions Europe Edition. Retrieved on December 5, 2005: http://www.pwcglobal.com/uk/eng/about/ind/rehl/HDE_UK_Forecast_May 05.pd#search='Pricewaterhousecoopers%20uk%20forecast%20for%20may%202005' Read More