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Analyzing Costa Rica’s Ecotourism Industry....

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The Advantages and Disadvantages of Ecotourism Analyzing Costa Rica’s Ecotourism Industry Hollie Moulaison, 301144606 Geog 322

Introduction Regardless of its relatively new emergence, ecotourism is the most rapid growing sector within the tourism industry – the world’s largest service industry (Dimanche & Smith, 2008). This is partially due to the rising number of environmentally responsible individuals who have gravitated towards ecotourism, due to its combination of unique travel experiences and the satisfaction of being socially and environmentally conscious (Dimanche & Smith, 2008). Specifically, Costa Rica has become a leader in the fostering of ecotourism, as they recognize that preserving natural resources and landscapes may be more cost-effective than clearing the land for other capital-intensive activities, such as farming, logging, or mining (Weaver, 1999). While the industry has faced challenges in harmonizing its environmental ideals with the growing demand for ecotourism, along with the temptation of profit generation, the environmental and economic advantages of ecotourism have far exceeded these disadvantages (Orams, 1995).

What is Ecotourism? Although there are several ways through which ecotourism is defined, a popular definition is “purposeful travel to natural areas to understand the cultural and natural history of the environment; taking care not to alter the integrity of the ecosystem; producing economic opportunities that make the conservation of natural resources beneficial to local people” (Garen, 2000, para. 1). From this definition, it is evident that ecotourism encompasses a wide range of travel activities, such as a daytrip to a national park, to several weeks camping in the backcountry (Garen, 2000). As a result of this vast spectrum of activities, the potential for dishonesty and corruption to occur in the form of “greenwashing” is significant (Laufer, 2003).

Ecotourism and Costa Rica While many nations in the Global South are concentrated on rapid industrialization and urbanization, Costa Rica has applied ecotourism as a catalyst for economic development (Campbell,

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1999). Although small in size, Costa Rica’s richness in biodiversity offers tourists a glimpse of some of the world’s most scenic landscapes (Hearne & Selinas, 2002). As a result, this country’s ecotourism industry appeals to approximately 1 million visitors annually, which in turn generates about $1 billion per annum (Dulude, 2000). In terms of attracting foreign currency, ecotourism provides the foundation for Costa Rica’s economy, as it derives more foreign exchange than the nation's previous staple exports – bananas and coffee – combined (Dulude, 2000). The exponential growth of Costa Rica's tourism industry is the result of several factors (Boo, 1990). Costa Rica's access to the North American market has been a considerable advantage for its ecotourism industry, especially in comparison to that of Africa and Asia (Weaver, 1999). For instance, American travelers alone account for approximately 20% of the global tourism market (Filion, 1994). In regards to Costa Rica specifically, the United States contributes roughly 49% of the country’s foreign travelers, along with an additional 9% traveling down from Canada and Mexico (Weaver, 1999). Another reason as to why Costa Rica’s ecotourism industry is so profitable is because this country has a comparatively higher standard of living to that of the majority of other developing countries (Weaver, 1999). Due to its high growth rates, economic stability and low crime rates, “Costa Rica has a per capita GDP of $6,7000, a literacy rate of 95%, and female life expectancy of nearly 79 years” (Weaver, 1999, para. 11). In contrast, neighboring Costa Rica is El Salvador who generates “a per capita GDP of just $3,000, a literacy rate of 71%, and a female life expectancy of about 74 years” (Weaver, 1999, para. 11). When measuring Costa Rica up against the developing countries of Africa, these inequalities are even more substantial (Weaver, 1999). Thus, Costa Rica provides tourists with the ability to experience a way of life distinct from the developed world, while allowing these same tourists to evade the despairing realities of poverty within the Global South (Hearne & Selinas, 2002).

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Because Costa Rica's reputation amongst environmentalists has been pivotal to the success of their ecotourism industry, this has prompted them to formulate a strong environmental lobby (Buchsbaum, 2004). This lobby has gone on to facilitate political support of environmental concerns, as well as having significant impact on influencing conservation initiatives (Buchsbaum, 2004). While increased environmental regulations on travelling often impede profits initially, the gradual, yet steady, inflation of wealth from upholding such an environmentally conscious image has influenced the ecotourism industry to act in support of most of the government's conservation initiatives (Kaimowitz & Sheil, 2007). Costa Rica has successfully established a stable ecotourism industry, generating profits from preserving their natural resources (Kaimowitz & Sheil, 2007). However, although Costa Rica's ecotourism sector has received much support from avid travelers, environmentalists, politicians, and economists alike, there are still many individuals who argue that ecotourism, as a whole, is largely incapable of acting as the environmental development tool it has largely been portrayed to be (Stem et al., 2010). One of the dominant criticisms is that most ecotourism projects are neither economically nor environmentally sustainable in the long-term, as it is often developers or government officials who become more concerned with generating large economic revenue rather than with efforts of conservation (Medina, 2005). In regards to Costa Rica's ecotourism industry specifically, while it has generally been excluded from such criticisms, there has been instances where its development has also endured environmental hardship, most notably when the market demonstrated its ability to generate a large profit (Chant & Harrison, 1992). For example, Costa Rica's Bay of Papagayo, located on the Pacific Coast, was transformed into a mega-resort area, complete with high-rise hotels, golf courses, and malls (Honey, 1999). This development project ultimately exemplifies how Costa Rica deviated from the country’s original intentions of small-scale local construction and critics argue that it stands as a beacon, signaling the end of truly sustainable ecotourism in Costa Rica (McLauren, 1998).

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Ecotourism and the Environment The Environmental Advantages It is a well-known critique that ecotourism exists as an oxymoron of environmental conservation because travel, at its very core, is damaging to the environment (McLauren, 1998). The pollution emitted by airplanes provides undeniable evidence that international travel and environmental protection are inharmonious to each other by nature (McLauren, 1998). However, despite this valid argument, in comparison to traditional tourism, ecotourism incorporates a level of environmental consciousness for travelling individuals (Garen, 2000). Ideally, the most effective alternative in reducing our environmental footprint would be for people to give up international travel entirely; to alternatively become a tourist in your own town, so-to-speak (Orams, 1995). However, realistically speaking, this unfortunately is not a likely outcome (Orams, 1995). Furthermore, when considering the greater issue at hand, backpacking through a rain forest reserve in Costa Rica is much more environmentally sound then a week’s stay at one of Cancun’s large-scale beach resorts (Garen, 2000). Without the market demand and political support for environmental conservation, areas that are currently protected would have likely succumbed to the growing demands of farming, logging, or mining industries (Cusak & Dixon, 2006). For example, in regards to the international case study of the Aral Sea basin, what was once one of the largest lakes in the world is now in steady decline due to the diversion of water for agricultural use – most notably for the purpose of growing cotton (Kotlyakov, 1991). This region’s once-thriving fishing industry has been essentially eradicated, bringing with it unemployment and economic struggle (Kotlyakov, 1991). In contrast, by working to conserve the natural resources that Costa Rica has, both of these environmental and economic hardships remain relatively unfamiliar to this nation (Weaver, 1999).

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One of the primary advantages of ecotourism is that it attracts foreign exchange in the absence of polluting factories and exploitative manufacturing companies, which are largely expanding throughout the rest of the Global South (Aylward et al., 1996). Instead, the infrastructural demands of the ecotourism industry generally involve the development of small-scale hotels and transportation networks (Aylward et al., 1996). With the exception of the Papagayo project, Costa Rica has been careful to support small-scale production over the development of high-rise luxury resorts, therefore sustaining a healthy balance between increasing its tourism industry and conserving the natural surrounding environment (Buchsbaum, 2004). For example, some engineers, like D.L. Andersen, have begun to specialize in the construction of environmentally sensitive developments, ideal for sustaining ecotourism (Cusak & Dixon, 2006). One of Andersen's designs is the Lapa Rios Resort found on Costa Rica's Pacific coast (Fennell, 2014). To ensure minimal environmental degradation, development of the resort required the removal of only a single tree (Fennell, 2014). One example of how the resort fosters sustainable practices is by having the majority of its power generated from the methane gas produced by local pig feces (Fennell, 2014). Another benefit of ecotourism that separates it from traditional tourism is that, along with being entertained, travellers often become environmentally educated as well (Weaver, 1999). By experiencing first-hand the delicacy of a fully functioning ecosystem, tourists may return home with a greater desire to have a more active role in protecting the environment (Hearne & Selinas, 2002). Furthermore, along with the sheer experience, informative tour guides and educational brochures can also encourage travelers to become more environmentally conscious, thus publicizing conservation efforts across the globe (Weaver, 1999). While the environmental benefits resulting from ecotourism are rather straightforward, the costs are often much more ambiguous and can be difficult to identify (McLaren, 2003). For that reason, governments subsidizing the ecotourism sector must be attentive to the protection of their national

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parks and prevent any possibility of corruption (Laufer, 2003). While Costa Rica has successfully developed a sound ecotourism industry, there is room for improvement (Honey, 1999).

The Environmental Disadvantages For the past several years, the amount of travelers visiting Costa Rica has increased approximately 6% annually (Weaver, 1999). While those devoted to the ecotourism industry may praise such extensive growth, critics argue that the country’s fragile ecosystems may be unable to withstand the unregulated amounts tourists (Stem, Lassole & Deshler, 2010). For example, one of Costa Rica's most frequented parks, Manuel Antonio, sees a daily average of 1,000 visitors during the high season (Chase et al., 1998). These uncontrolled visitor numbers has negatively influenced the park’s plant and animal life (Stem et al., 2010). For example, as the wildlife becomes familiarized with the presence of humans, local monkeys have grown accustomed to eating the garbage that is left behind (Stem et al., 2010). Another issue surrounding the activities of ecotourism is that tourists are inclined to observe the most rare and exotic flora and fauna (Hearne & Selinas, 2002). While these species are often extremely vulnerable, it can be challenging for park personnel to deny paying tourists access to these delicate parts of the forest when there is opportunity for substantial economic gain (Medina, 2005). Ultimately, this establishes the importance of profits above that of protectionism (Medina, 2005). Greenwashing refers to the marketing ploy where a ‘green’ label is attached to tourism activities and services that are fundamentally unsustainable (Laufer, 2003). While ecotourism has gained in popularity, greenwashing of luxury resorts and tourist centers has become a much more substantial issue, ultimately tarnishing Costa Rica's reputation for providing environmentally friendly tourism opportunities (Laufer, 2003). To mitigate these drawbacks, Costa Rica established the Certification of Sustainable Tourism program, which aims to recognize the most environmentally conscious tourism destinations (Medina, 2005). However, critics contest that lax certification regulations have

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somewhat led to the legitimization of greenwashing for Costa Rican businesses who advertise minimal conservation efforts as being sustainable (Medina, 2005). Because this industry has seen such extensive growth over a relatively short period of time, it brings to question if ecotourism development is being done thoroughly enough (Fennell, 2014). McLaren discusses how elites and foreigners tend to give more consideration towards profit generation as opposed to conservation efforts (2003). The final result is that organizations fail to adequately analyze an area’s ecosystem before proceeding with the development of most ecotourism projects (McLaren, 2003). However, before criticizing a nation's entire ecotourism industry, it is imperative that the issues applicable to legitimate ecotourism ventures, and the issues surrounding travel service providers – such as misleading the public by wrongfully identifying themselves as being eco-conscious – are differentiated from one another (Weaver, 1999). For example, the issues associated with Costa Rica's ecotourism industry stem primarily from the latter (Weaver, 1999), which largely can be solved by enforcing a more rigorous certification program (Medina, 2005). Therefore, to disregard the environmental benefits generated from Costa Rica's ecotourism industry would be an oversight as the country’s conservation policies are far superior to what policies would likely be established within any other industry (Weaver, 1999).

Ecotourism and the Economy The Economic Advantages While increased foreign investment and employment opportunities are well understood economic advantages of ecotourism, the financial benefits generated by this industry can have far reaching effects on other sectors of the economy as well (Filion at al., 1994). For example, while a tour through Costa Rica’s Carara Biological Reserve requires only a $15 entrance fee, to arrive at the reserve itself will likely require a flight into San Jose’s International Airport, a bus ride to the park, a stopover in a local hotel, dining in the town's local restaurants, as well as the potential purchasing of

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souvenirs from street merchants (Fennell, 2014). Another example, highlighting the more inconspicuous economic linkages of ecotourism, is the affect on Costa Rica’s agricultural industry – specifically in regards to the country’s declining coffee market (Varangis et al., 2003). To quickly summarize, tourists enjoy an average of two locally brewed cups of coffee a day, which totals up to be roughly 22 million cups of coffee per year (Varangis et al., 2003). This alone generates approximately $16.5 million in revenue (Varangis et al., 2003). Because ecotourists are often inclined to explore more remote and economically disadvantaged regions, a frequently overlooked benefit of ecotourism is its ability to act as a vehicle through which income from wealthier nations can be transferred to the less-wealthy sectors of the globe (Weaver, 1999). The majorities of such travelers have above-average income profiles and are therefore more likely to pay higher park entrance fees, as well as make donations towards conservation efforts (Weaver, 1999). While most tourism activities generate exchange between the world's wealthier nations, ecotourism encourages increased travel to developing countries (Weaver, 1999). Also, because ecotourism is a relatively barrier-free trade commodity, it can act as a more effective means of transferring revenues from developed countries, as opposed to other forms of foreign investment (Fennell, 2014). In regards to Costa Rica specifically, ecotourism has helped diversify its national economy, which once primarily relied upon the exportation of a few agricultural products (Fennell, 2014).

The Economic Disadvantages While ecotourism’s ability to generate local employment and economic opportunities are largely acclaimed, if not meticulously supervised, profits can leak out of these regions and into the hands of high-class individuals and wealthier nations (Smith & Jenner, 1992). Because developing nations tend to lack the resources to construct the necessary infrastructure for tourism development, many then rely on foreign investors and international benefactors (Campbell, 1999). Extensive

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collaboration with foreign corporations can result in an issue of leakage, where the profits acquired by the tourism sector do not remain within the country (Smith & Jenner, 1992). Therefore, some environmental theorists discuss the importance for ecotourism development to then remain smaller in scale, thus ensuring that much can be achieved with limited outside involvement (Laufer, 2003). While Costa Rica has typically adhered to this standard, the previously mentioned Papagayo project fails to conform to this very rule (Honey, 1999). While the resort area does generate a significant amount of profits, most of its revenues leak from the country, only to benefit associated foreign investors (Smith & Jenner, 1992). This has lead to the accusation that the nation's ecotourism industry has, in fact, been corrupted (Honey, 1999). Not only is the local population usually excluded from the development process but they are often also left with limited opportunity to remain within their original employment, forcing them leave and find work within the tourism service industry (Kaimowitz & Sheil, 2007). Furthermore, instead of being compensated for having to change professions, locals receive tourism jobs that are both low paying (although not in comparison to farming), and restricted in their ability to later be promoted (Kaimowitz & Sheil, 2007). Meanwhile, managerial positions are granted to educated foreign elites (Kaimowitz & Sheil, 2007). It is to be expected that almost any business is to experience a varying degree of budget issues, exploitation, economic instability and insufficient management, and ecotourism is no exception (Boo, 1990). Careful monitoring is required to guarantee that foreigners and elites do not monopolize the most profitable positions (Kaimowitz & Sheil, 2007). In the face of such an unfortunate occurrence, the repercussions could largely undermine both the environmental and economic intentions of ecotourism (Garen, 2000). For example, Garen discusses how, if locals feel as though they are being excluded from the ecotourism sector, there is minimal incentive for them to participate in efforts of conservation (2000).

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Conclusion In regards to ecotourism, developing countries face difficult decisions in their attempts to join the modernized world because while this industry can be beneficial to both the economy and the environment, it can unfortunately succumb to corruption as well (Boo, 1990). Repeatedly, natural resources are viewed in terms of their economic value as opposed to their need to being conserved (Stem et al., 2010). Therefore, environmentalists argue that instead, ecosystems containing natural flora and fauna ...