"Take Nothing but Pictures, Leave Nothing but Footprints and Waste Nothing but Time"

I. Identification

1. The Issue

Ecotourism is currently the fastest growing sector of the world's largest service industry, tourism. While environmentalists are weighing the pros and cons of ecotourism, many developing nations are looking to cash in on the growing demand for this new trend in travel. The poor nations of Central America, with its cloud forests, active volcanoes, and wide variety of flora and fauna, appear ideally situated to take advantage of the growing demand for ecotourism with Costa Rica leading the pack. Although Costa Rica has been lauded for its development of a lucrative, yet environmentally friendly, ecotourism industry, economists and enivoronmentalists alike debate whether or not an economy centered around tourism can be sustained. The idea behind ecotourism is to preserve a nation's natural resources while profiting from them. However, in this quest for profits, some nations, including Costa Rica, have allowed their ecotourism industry to become ecologically damaging. By allowing unlimited numbers of tourists into protected areas and encouraging the construction of high-rise hotels and resorts over small-scale toursim development, ecotourism industries, such as Costa Rica's, could be on the path to self-destruction.

2. Description

Introduction
As avid travelers bore of hotel lined beaches and crowded theme parks they turn to the more exotic adventures offered by ecotourism. This relatively new trend in tourism takes travelers to remote corners of the globe exposing them to diverse wildlife and cultures that have been developing in isolation from the modernized world. Although a relatively new trend in travel, ecotourism is the fastest growing sector of the tourism industry - the world's largest service industry - with an average annual growth rate of 20 to 30 percent. (Egan, 2001). This incredible growth is due in part to the increasing number of environmentally conscious consumers who have taken to ecotourism because it combines an exotic travel experience with the self-satisfying notion of being socially and environmentally responsible. (Garen, 2000, 222). Developing nations, in particular, have been eager to take advantage of this rising demand for ecotourism, as they find that preserving their natural resources may be more profitable than clearing the land for farming, logging, mining, or industrial development. Costa Rica especially has taken advantage of the ecotourism boom and the number of tourists visiting Costa Rica has increased steadily for years. (see Table 1).

Table 1
	Number of Visitors to Costa Rica	Tourism Revenue (Millions of Dollars)
1998	943,000	884
1999	1,032,000	1,036
2000	1,100,000	1,138
(American Embassy, San José, 2001)

Although ecotravel appears to be a flawless way to preserve our world's most precious resources while bringing jobs to the developing world, many still debate the long-term sustainability of ecotourism. These debates over the environmental, economic, and cultural benefits and drawbacks of ecotourism take center stage in Costa Rica, one of the world's leading ecotourism providers. In recent years Costa Rica has developed one of the world's most successful ecotourism industries and has been praised for its attention to conservation. However, although the small Central American nation began it's ecotourism industry with small scale development and attention to conservation, some environmentalists worry that as profits have grown, environmental protection has become a secondary consideration. Therefore, while Costa Rica's tourism industry undoubtedly has been economically lucrative, its continued benefits to the environment are questionable. In this manner, a look at the successes and failures of Costa Rica's ecotourism industry can lend insight into similar struggles taking place throughout the Third World, as nations attempt to produce rapid economic growth without sacrificing their natural resources and cultures.

What is Ecotourism?
Although there are several competing definitions of ecotourism, a commonly accepted explanation is it is "purposeful travel to natural areas to understand the culture 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, 221). Under this definition, ecotravel could range from a day-trip to a wildlife preserve to a week camping in a rainforest. (McLauren, 1998, 97). Because ecotravel can encompass such a wide variety of activities, the potential for corruption and deception in the form of the "Greenwashing" of environmentally damaging travel services, is considerable. As environmentalist Deborah McLauren describes it; at its best, ecotourism can help protect a delicate ecosystem while providing economic benefits to locals, and at its worst ecotravel can be, "environmentally destructive, economically exploitative, and culturally insensitive "greenwashed" travel." (McLauren, 1998, 98). For instance, in some brochures and websites a high-rise, high maintence hotel can appear as "eco-friendly" as a small, low-waste lodge.

Why Ecotourism? The Case of Costa Rica
While many Third World nations are focusing on rapid industrialization and urbanization, Costa Rica has turned to ecotourism as its key to economic development. Although a small country about the size of West Virginia, Costa Rica has incredible biodiversity with scenic beaches, lush rain forest, impressive volcanoes, and exotic wildlife. The nation's tourist industry brings in about 1 million visitors annually and generates approximately $1 billion a year, making it Costa Rica's second largest source of income after silicon chip production. (Dulude, 2000). In terms of bringing in foreign currency, tourism is second only to the electronic components sector led by INTEL, and it earns more foreign exchange than the nation's former staple exports, bananas and coffee, combined. (Country Commercial Guide, 2001). Costa Rica's tourism industry has excelled so quickly for several reasons.

• Biodiversity - Costa Rica's incredible biodiversity offers foreigners a glimpse at mountains and volcanoes, as well as beaches and rainforests, all located within a relatively small region. Costa Rica's diverse flora and fauna are protected in 24 national parks, covering 21% of the country's territory (28% if the nation's Indian reserves are included). (Dulude, 2000).

  As Katrina Brandon of the Nature Conservancy describes it, in its ideal form ecotourism would:

  Provide valuable financing for parks and conservation efforts, Serve as economic justification for the preservation of nature parks and wildlife, Reduce exploitation of conservation areas by supplying local peoples with viable economic alternatives, Promote environmentalism and conservation, and Encourage private conservation efforts (Lizano, 2001).

  
  
• Location - Costa Rica's proximity to the United States gives its tourist industry a clear advantage over the ecotourism adventures offered in Africa and Asia. Since the United States is the number one "tourist exporter" with American travelers making up approximately 20% of the world tourism market, Costa Rica's access to the North American market is a considerable advantage. The U.S. contributes nearly 49% of Costa Rica's foreign visitors with another 9% traveling down from Canada and Mexico (see Table 2).
  
  
• Safety and Stability - Although Costa Rica has a long history of political and social stability, for a time its tourism industry was hindered by the violence, and guerrilla warfare exploding throughout Central America. Costa Rica does not even maintain a standing army, yet its reputation as a safe tourist destination was tainted by the turmoil occurring in neighboring countries, El Salvador, Nicaragua, Guatemala, and Honduras. (Richter, 1992, 40). However, Costa Rica has since been able to distinguish itself from the rest of Central America, and its political stability, strong democratic institutions, and low violent crime rates are the nation's most important selling points. (Weaver, 1998, 83).
  
  
• Strong Environmental Lobby - Costa Rica's reputation among environmentalists is crucial to the successful promotion of their product, and this has incited the "green industry" to form an influential environmental lobby. Although the immediate costs of increased environmental regulations on travel services may initially injure profits, the long term benefits of maintaining an environmentally-friendly image have swayed the ecotourism industry to support most of the government's conservation initiatives. (Kaimowitz, 1997, 26).
  
  
• Higher Standard of Living - Another advantage of Costa Rica's tourism industry is the nation's relatively high standard of living when compared with the majority of developing nations. (Weaver, 1998, 83). Known as the Switzerland of Central America because of its high growth rates, economic stability, and low crime rates, Costa Rica enjoys a per capita GDP of $6,700, literacy rate of 95%, and female life expectancy of nearly 79 years. By comparison, nearby El Salvador, boasts a per capita GDP of just $3,000, a literacy rate of 71%, and a female life expectancy of about 74 years. When comparing Costa Rica with the developing nations of Africa, these differences are even greater. Thus, Costa Rica offers a look at a way of life distinct from the modernized world, while allowing tourists to largely avoid the sad realities of poverty in the Third World.



• International Support - Finally, the development of Costa Rica's ecotourism industry was both politically and financially supported by the IMF, World Bank, and the United States. For instance, the US

  The Possible Pitfalls of Ecotourism Development

  Visitor Overcapacity Haphazard Adjacent Development Inadequate enforcement of protected park areas due to a lack of funding, poor management, and uncertain government support Reliance on non-government funding Exploitation of local work force Culturally insensitive development projects (Weaver, 1998, 107).

  Agency for International Development has long been active in promoting environmental protection and ecotourism in Costa Rica by training park rangers and guides, funding conservation efforts, and setting up the Agricultural School for the Humid Tropical Region, or EARTH by it's Spanish acronym. (USAID, 1996). In addition, the World Bank recently approved a $40 million loan for Costa Rica, a large portion of which will focus on ecotourism, including a unique program of paying landowners not to cut down their forests. (Dulude, 2000). This international support, along with a solid credit rating with international lenders, gives Costa Rica a degree of financial stability in handling the substantial costs of developing an ecotourism industry.
  

Costa Rica has been able to develop a solid ecotourism industry and capitalize on their natural resources. However, although Costa Rica's ecotourism sector has received support and praise from environmentalists, politicians, and economists, not to mention avid travelers, there are many who believe that ecotravel has been overrated as an environmentally sound development tool. One of the chief criticisms is that most ecotourism projects are neither economically nor environmentally sustainable in the long-run. Blame for this shortsightedness is often placed on developers or government officials who become more focused on turning large profits than on conservation. While Costa Rica's ecotourism industry has largely been excluded from such criticisms, its development has also suffered environmental pitfalls, especially in the industry's later stages of growth after the market proved to be a high profit earner. For example, the Papagayo project will turn Costa Rica's Bay of Papagayo on the Pacific Coast into a mega-resort area with high-rise hotels, golf courses, and malls. This development project deviates from the nation's typical encouragement of small small scale construction by locals over resort development by foreign investors, and critics argue that it signals the end of truly sustainable ecotourism in Costa Rica. (McLauren, 1998, 105). In the following analysis of Costa Rica's ecotourism industry we will look at the costs and benefits its development has had on the nation's environment, economy, and culture.

Ecotourism and the Environment
While the success of any ecotourism venture relies on the condition of a nation's ecosystem, some environmentalists believe that the economic benefits ecotourism are not sufficient motivation for true environmental conservation. For instance, while Eva Garen believes that the ideals behind ecotourism are laudable, she claims in the end ecotourism does more harm than good. (Garen, 2000, 222). Deborah McLauren offers a more radical critique of ecotourism, arguing that ecotravel is an oxymoron since travel, at its base, is detrimental to the environment. She sites the fossil fuels used and pollution that jet airplanes emit as evidence that international travel and environmental protection are mutually exclusive by their very nature. (McLauren, 1998, 97-98). However, despite its inadequacies, ecotourism offers one of the most environmentally friendly travel opportunities available, and perhaps should not be discarded so quickly. Claims that air travel accelerates global warming will not stop a traveler's desire to explore the world, and a trip to a rain forest in Costa Rica is overall much more environmentally sound than a week stay at a 4,000 room beach resort in Cancun. Thus, while it is important to identify the environmentally harmful aspects of ecotourism development, the industry should not be disregarded outright as a valid means of environmental protection.

Environmental Benefits
The environmental benefits of ecotourism development in Costa Rica have been far reaching. Since 1963 when the first environmental protection reserve was created, Costa Rica's conservation initiatives have expanded to include 70 protected areas or national parks covering 21% of the nation's territory, as well as the creation of Costa Rica's National Park Service in 1970. (Weaver, 1998, 87). It can be deduced that this incredible increase in the area marked for conservation would not have been possible without the economic incentives of ecotourism. As locals were relocated and logging industries shut down, Costa Ricans were able to turn to the tourism industry for employment. This would not have been possible if Costa Rica had adhered to former protectionist measures that tended to wall off protected areas from the public. (Garen, 2000, 223). Besides offering an economic incentive for conservation, ecotourism has benefited Costa Rica's environment in several other ways, detailed below.

• Alternative to Environmentally Damaging Industries - Without the market demand and political support for environmental protectionism, currently protected areas may have fallen to the demands of farming, logging, or mining industries long ago. (Egan, 2001). Besides the revenue brought in by tourism, protected nature areas also generate income through environmentally sound pharmaceutical research and the sustainable harvest of food products. (Weaver, 1998, 25). For instance, the previously mentioned EARTH research institution has been researching the production of possible banana byproducts such as banana paper made from the generally discarded banana stalk. Also, in 1991 the U.S.-based pharmaceutical firm Merck & Co made a deal with Costa Rica's National Biodiversity Institute (INBio) to carry out pharmaceutical research and development in Costa Rica's rainforests. The most interesting thing about this alliance is that INBio is primarily concerned with conservation and their contract with Merck requires that 50% of any royalties from the discovery of new medicines go to Costa Rica's National Park Fund. (Reid, http://students.washington.edu/radin/costa.htm, 2001).
  
  
• Encourages Individual Conservation Efforts - One of the main aspects of ecotourism that differentiates it from a day at the beach is that it educates as well as entertains travelers. By experiencing first hand the beauty of the Monteverde Cloud Forest or the majesty of a Red Macaw, tourists may return home wanting to do more to help protect the environment. Informed tour guides and educational pamphlets can incite tourists to become environmentalists, thereby promoting conservation efforts worldwide. (Weaver, 1998, 24).
  
  
• Encourages Small Scale Infrastructure Construction - One of the main benefits of ecotourism is that it brings in foreign exchange without the polluting factories and exploitative manufacturing companies that are spreading throughout the Third World. Instead, the infrastructure demands of an ecotourism industry primarily include the construction of small scale hotels and transportation systems. By and large, Costa Rica has been careful to encourage small-scale development over the construction of high-rise luxury hotels, thereby maintaining a healthy balance between expanding its tourism industry and protecting its natural resources. (Egan, 2001). For instance, some architects, such as D.L. Andersen, have begun to specialize in the type of environmentally sensitive construction of small lodges ideal for ecotourism. One of Andersen's designs is the Lapa Rios Resort located on Costa Rica's Pacific coast. To ensure that the resort has as little negative impact as possible on the surrounding environs, Andersen took into account waste management and utilities, as well as the actual building design. Construction of the Lapa Rios Resort necessitated the removal of only one tree, and the completed resort consists of only a main lodge and 14 private bungalows. (Fennell, 1999, 235).

Environmental Costs
While the environmental benefits of ecotourism are rather clear cut, the costs are much more subtle and sometimes difficult to detect. For that reason governments sponsoring ecotourism development must be vigilant in the protection of their national parks and meticulous in safeguarding against corruption. By and large Costa Rica has been responsible in the development of ecotourism, but there is room for improvement. (Lizano, 1997).

• Visitor Overcapacity - The number of tourists visiting Costa Rica has increased by at least 6% annually for the past several years. (State Department, 2001). While those invested in the ecotourism sector may celebrate such rapid growth, environmentalists worry that the nation's delicate ecosystem may not be able to withstand an unlimited flow of tourists. (Hicks, 2001). For instance, one of Costa Rica's most popular parks, Manuel Antonio, takes in an average of 1,000 visitors a day during the high season. The unregulated flow of tourists through the park has taken a toll on its plant and animal life, and as the wildlife has grown accustomed to humans local monkeys have been turned into garbage feeders. (Weaver, 1998, 95). Another problem is that, in their quest for the exotic, travelers are often attracted to the rarest animals and most vulnerable plant life. It is difficult for park managers to turn paying visitors away or refuse access to the most delicate parts of the forest when the demand is there and the profit-potential great. (Weaver, 1998, 25). For this reason, these tough decisions should be in the hands of Costa Rica's National Park Service Agency, and similar institutions in other countries, that are better able to look past short-term profit gain to what is best for their country in the long run.
  
  
• Greenwashing - Greenwashing refers to the marketing scheme of attaching a "green" label to travel services that do not technically classify as ecotourism. (Egan, 2001). As ecotourism has gotten more popular, greenwashing of luxury hotels and tourist centers has become a greater problem that could tarnish Costa Rica's pristine environmental reputation. To protect against these pitfalls of ecotourism Costa Rica began the Certification of Sustainable Tourism program that aims at identifying the most environmentally friendly parks and resorts. However, some argue that lenient certification regulations have led to a sort of legitimized greenwashing of undeserving businesses in Costa Rica. For instance, large hotels can be certified with very little effort and without actively promoting conservation efforts. Simply by using biodegradable cleaning products, being careful of waste management, recycling, and avoiding pesticide use, a 500-room hotel can receive a similar rating to a small jungle lodge. (Lizano, 2001).
  
  
• Profit over Protection - Reporter Mark Dapin's experiences touring the natural wonders of Costa Rica reveal that where there are responsible tour companies, there also exist careless profit-seeking guides that can greatly undermine the conservation efforts necessary to sustainable ecotourism. Dapin's reckless tour guide, Juan, led his party on an exciting, yet environmentally damaging climb up the Arenal Volcano. Arenal is one of the most active volcanoes in Central America and has been erupting constantly for over 30 years. Scores of tourists come to watch the mountain spurt out fire and lava every clear evening. Most visitors view the Volcano from a distance, and are careful not to harm the surrounding plant and wildlife protected in parks and conservation areas. However, Dapin's "guide" broke into a reptile park - where he harassed a large tortoise by pushing its head into its shell and throwing rocks at it, bothered a collection of caged caymans (an alligator type species), and broke into a locked frog house containing poison-arrow frogs. (Dapin, London Times, April 21, 2001).
  
  While a humorous anecdote, the reporter's story reveals a dangerous lack of enforcement of Costa Rica's protected areas, as well as the complete disrespect some of those involved in the ecotourism industry have for the animal and plant life from which they make their living. Although Juan represents only one reckless tour guide among many who are responsible in their work, his behavior supports the theory that ecotourism eventually brings about a commodization of a nation's wildlife. Instead of seeing an endangered turtle species as something to be protected, those working in the ecotourism market begin to see the animal only in terms of dollar signs. (Weaver, 1998,25). This phenomena represents a perversion of the principles of ecotourism that place protectionism before profits. The chief danger in the commodization of an eco-system is the emergence of Juan's who are willing to exploit their nation's natural treasures for economic gain. While there is no quantitative manner of showing that this phenomenon has taken place in Costa Rica, it is undoubtedly a threat.
  
  
• Inadequate Enforcement - Limited finances, inadequate local expertise, and corruption can all lead to lax enforcement of conservation efforts. (Weaver, 1998, 62). Often, developing nations do not have the resources to train the personnel necessary to efficiently regulate and protect a national park or wildlife preserve. For example, at Costa Rica's Tortuguero National Park, the Western Hemisphere's most important nesting ground for the endangered green turtle, is left to the protection of just 10 full-time employees. Poachers are a problem in this area and the park has to recruit volunteers to help guard the beach during the nesting season. Another obstacle facing conservation efforts in Costa Rica is the fact that 44% of the 3.2 million acres marked for protection remain in the hands of their previous residents and owners. Logging in these areas is often hard to detect or prevent leading some to argue that Costa Rica's natural resources are protected only on paper. (Dulude, 2000).
  
  
• Reliance on International Donors - Also undercutting conservation efforts is Costa Rica's growing reliance on international donors. In 1992, for example, only 23% of Costa Rica's protected-area budget was government supplied. While international bodies are important in covering budget shortfalls, a dependence on foreign lenders and donors who may not understand Costa Rica's ecosystem can destabilize the government's control of its conservation efforts and lead to a lack of coordination in carrying out environmental policy. (Weaver, 1998, 96-97).
  

Ecotravel may be accelerating even faster than the tourism industry as a whole, leaving some environmentalists wondering if ecotourism development is being done carefully enough. (Fennell, 1999, 152). Eva Garen argues that most programs are created by elites and foreigners who pay more attention to profits than conservation and are not adequately analyzing an area's ecosystem before going ahead with development. (Garen, 2000, 228). However, before condemning a nation's entire ecotourism industry, it is important to distinguish between the problems that apply to actual ecotourism projects and the problems of travel service providers that deceive the public by mistakenly identifying themselves as ecotourism. (Weaver, 1998, 22). For instance, the problems facing Costa Rica's ecotourism industry stem chiefly from the latter, which largely can be eradicated by a stricter certification program. Therefore, discounting the environmental benefits of Costa Rica's ecotourism industry would be a mistake since the nation's conservation policies are far better than they would be with any other industry development.

Economic Costs and Benefits
Ecotravel has become a very lucrative sector of the service industry, but some of those who study the industry worry that the economic benefits of ecotourism may not be reaching the local community. For instance, B. Wheeller believes that "pure" ecotourism is incompatible with business because every form of tourism entails an element of exploitation. He argues that companies are motivated by short-term profits, while tourists are looking for mainly a self-satisfying vacation and local communities are seeking to obtain the maximum economic benefit from tourists. (Weaver, 1998, 22-23). Similarly, Deborah McLauren claims she has never come across a true ecotourism project that could pay for itself, proving that the industry is not economically sustainable. (McLauren, 1998, 101). However, P. Wight is more optimistic about the economic potential of even the most environmentally focused forms of ecotourism, stating that with careful monitoring and planning, the problems cited by Wheeller and McLauren can be overcome. (Weaver, 1998, 23). In this light, this section will look at where the business side of ecotourism can and has gone wrong in Costa Rica.

Economic Benefits
The expansion of ecotourism has undeniably boosted Costa Rica's overall economic development with tourism revenues last year totaling $1.1 billion - an incredible figure for such a small nation. (State Department, 2001). Ecotourism has brought employment opportunities to often previously disadvantaged rural populations, and a significant amount of the industry remains in the form of small scale projects that can be funded by locals. Currently, 75% of all licensed tour agencies are owned by Costa Ricans and 85% of all of Costa Rica's hotels have fewer than 50 rooms. (Weaver, 1998, 84-85). Besides these general economic benefits to local communities and the Costa Rican economy in general, ecotourism has contributed to the nation's financial well-being in other manners. For example, although the Papagayo Project may be criticized by environmentalists, continuing development of the resort area is bringing in a lot of foreign investment and creating thousands of jobs for Costa Ricans.

• Benefits to Other Industries - The growth linkage possibilities of ecotourism development can have far reaching effects on other sectors of the economy. For example, a visit to the Carara Biological Reserve entails not only a $15 entrance fee and possible additional donation, but also a flight into San José's International Airport, a bus ride to the park, a stay in a local hotel, dining in the town's restaurants, and the purchase of souvenirs from street vendors. In addition, less obvious growth linkages of ecotourism can effect everything from the communications industry to agriculture. For instance, the successes of Costa Rica's ecotourism industry have helped breathe life into the nation's sagging coffee market. Tourists consume an average of two cups of the nation's gourmet coffee a day adding up to approximately 22 million cups of coffee a year, which, at 75 cents per cup, brings in about $16.5 million. Therefore, as many Latin American nations are losing jobs and revenue to falling coffee prices caused by an influx of cheaper Asian brands into the market, Costa Rica has managed to stay afloat with this increase in domestic consumption. Tours of coffee plantations, such as the Cafe Britt Tour, have also caught on in Costa Rica's tourist boom lending even more help to coffee producers. (Brenes, 2001). Cafe Britt offers several types of coffee tours, including an Espresso Tram and the Coffee Lover's tour, which charges $50 for a seven hour tour of an organic coffee plantation and a coffee mill.
  
  
• Transfer of Incomes - An often overlooked benefit of tourism development in the Third World is that tourism is an excellent vehicle for transferring income from wealthy nations and persons to the poorer sectors of society. Ecotourism is especially effective in this transfer since travelers often venture into remote, economically-disadvantaged regions. The majority of ecotourists have above average income profiles and are willing to pay higher park entrance fees as well as make donations to conservation efforts. (Weaver, 1998, 23, 98). For example, a study of visitors to Costa Rica's Monteverde Cloud Forest found that foreign visitors are willing to pay an average of $118 to ensure that the park is adequately protected. (Fennell, 1999, 172). This extra amount that foreign visitors are willing to pay could be collected in the form of an environmental tax on non-citizen ecotourists rather than a voluntary donation. While most tourism is an exchange between the world's wealthier nations, ecotourism has the potential to increase travel to the developing world. Since tourism is a relatively barrier free trade commodity it can be a more effective means of transferring income from the modernized world than other forms of foreign investment, such as export-processing zones, in which profits are largely repatriated.
  
  
• Diversification - Ecotourism in Costa Rica has helped diversify the national economy, which previously depended upon the exportation of a few agricultural products, namely coffee, bananas, meat, and sugar, for 65% of its exports. Like many countries in Central America, Costa Rica's small internal market and scarcity of raw materials make industrialization a slow and difficult process without much room for expansion. (Chant, 1992, 89-90).

Economic Costs
While one of the standards of ecotourism is to generate domestic employment and economic opportunities for locals, if not carefully monitored, profits can leak out of these regions into the hands of elites and wealthier nations. In addition, if development projects are monopolized by rich businessmen looking for short term economic gain, both the local environment and peoples could pay the price. (Garen, 2000). While Costa Rica's ecotourism industry has been careful to avoid this pitfall thus far, as the industry accelerates, more and more development contracts may be awarded to foreign corporations and wealthy investors, which can lead to profit leakage and exploitation.

• Leakage - Many developing nations do not have the resources to construct the infrastructure necessary for tourism development, which leads them to turn to foreign corporations and international donors. The widespread involvement of foreign investors can lead to a leakage problem in which the profits earned by the tourism sector do not stay in the country. (Hicks, 2001). For this reason some environmentalists and development theorists believe that it is important for ecotourism to concentrate on small scale construction that can be done without much outside involvement. (Weaver, 1998, 26). Costa Rica has typically held with this principal, but the previously mentioned Papagayo Project is breaking with this rule, leading some to suggest that the nation's ecotourism sector has been corrupted by its own popularity. The Papagayo Project is financed chiefly by foreign investors and will double the nation's accommodation capabilities. The completed development project will include the construction of 1,144 homes, 6,270 condo-hotel units, 6,584 hotel rooms, a mall, and a golf course. (McLauren, 1998, 105). The resort area will undoubtedly turn a considerable profit, but most of its revenues will likely leak out of the country into the hands of the project's foreign investors.
  
  
• Exploitation of Local Work Force - One of Eva Garen's biggest complaints concerning ecotourism is that the resident population is often excluded from the development process and relegated to minimum wage support jobs or the informal street vendor economy. These rural workers were often involved in industries, such as logging, poaching, or agriculture, that are incompatible with ecotourism. (Garen, 2000, 230). However, instead of being compensated for switching to professions in the tourism industry, locals receive jobs that are often low-paying (although better paying that farming), and limited in their potential for upward mobility. Meanwhile, managerial positions go to foreigners or urban- educated elites. According to a study of large transnational hotel corporations located in the developing world, on average 23% of their wages go to foreigners, even though on average 93% of their workforce comes from the resident population. (Weaver, 1998, 54). Although, as previously stated, Costa Rica's accommodation industry is largely small scale and locally owned, the Papagayo Project is evidence that this trend may be coming to an end.
  
  
• Instability - Although the demand for toursim has been on the rise in recent years, a nation's travel service industry can be volatile and a downturn in the market can happen at anytime. Although Costa Rica's political outlook appears positive, sudden political instability, escalating crime rates, terrorism, or threats of a global recession could all trigger an unexpected sharp decline in tourism.

All industries are prone to budget problems, exploitation, instability, and poor management, and ecotourism is not an exception. Careful regulation is needed to ensure that the most lucrative positions are not monopolized by foreigners and elites, or the consequences could undermine the environmental, as well as the economic, goals of ecotourism. For example as Garen points out, if locals feel excluded from the tourism market, they will have no incentive to participate in conservation. (Garen, 2000, 221). One safeguard is to set legal limits on the amount of jobs and revenue that must remain in the local community. Although such regulations can be viewed as unjust protectionism or a hindrance to economic development, these consequences can be tolerated if the end result is an ecotourism industry that is both environmentally and economically sustainable and culturally sensitive.

Conclusion
Costa Rica has developed an environmentally sound and lucrative ecotourism industry that has allowed it to protect its vast natural treasures while bringing economic opportunities to typically disadvantaged rural areas. While the industry has faced difficulties in reconciling its environmental ideals with the growing demand for ecotourism and the temptation for profit-seeking, the environmental and economic benefits of ecotourism have far outweighed these drawbacks. As Martha Honey, the author of Ecotourism and Sustainable Development: Who owns Paradise? and former resident of Costa Rica, puts it, "They do ecotourism very well in Costa Rica." (Egan, 2001).

Given the lofty environmental goals and social ideals of ecotourism, it is easy for skeptics to criticize the industry, claiming that the world's delicate ecosystems cannot be adequately protected by a profit oriented business. These critics may argue that wildlife reserves and natural areas should be strictly preserved, rather than open to the public. However, although such conservation goals are laudable, they are not realistic. As Honey explains, "We're not going to stop the movement by people to the last unvisited places on the planet." (Egan, 2001). Once this fact is accepted, environmentalists can look for ways that tourism and conservation can coexist. Although ecotourism may not be able to preserve these untouched areas as they would if human contact were prohibited, it can help protect them from the dangers of destructive agricultural practices, mining, and industrialization. The flora and fauna may be bothered, but at least it will not be destroyed.

Developing countries face tough choices in the race to join the modernized world and frequently environmental resources are seen more as tools of progress than treasures to be guarded. However, as Costa Rica's ecotourism industry has proven, conservation and economic growth can go hand in hand. The overhead costs of training, infrastructure construction, and promotion can be a burden on poor nations, and the risks can be considerable; but the growth potential and environmental benefits of ecotourism make the investment worth the while in the long run. Development of ecotourism industries have sprung up throughout Central America and the developing world in general, and I think this development trend is a positive one for our environment and our people.

3. Related Cases

For more on the effects of Tourism and Ecotourism on cultures and environments check out:

• Amazon
• Balitour
• Cozumel
• Cuba
• Greektur
• Jordtour
• Omantour
• Uganda
  

For more on Costa Rica look at:

• Banana
• Banana2
• Coffee
• Costbeef
• Costpest
• Merck
• Shadecof
  

4. Author and Date:

Julie Dasenbrock

November 7, 2001

II. Legal Clusters

5. Discourse and Status: Agreement and In Progress

The General Agreement on Trade in Services
As an active member of the World Trade Organization (WTO), Costa Rica's tourism industry is bound by the tenants of that body's General Agreement on Trade in Services (GATS). While Costa Rica has generally been open to the general principals of the GATS, and WTO in general, this section will discuss the aspects of the nation's ecotourism industry that could be in conflict with the general rules and regulations of the GATS.

Environmentalism vs. Trade Liberalization
The GATS, like many WTO agreements, encourages trade liberalization through such policies as privatization, cuts in government spending, market regulation, and free trade. These trade guidelines give big business and international investors a lot of influence in the development of Third World economies, which some environmentalists believe could be detrimental to the conservation ideals of ecotourism. The issue of privatization of national parks is one particular area in which the principles of ecotourism can clash with the tenants of the GATS. For instance, most environmentalists agree that the conservation efforts required by sustainable ecotourism programs necessitate strict government regulation of national parks. However, government owned parks may not always be economically efficient, leading some trade liberalization advocates to argue that the less profitable protected areas be turned over to the private sector. (Fennell, 1999, 165). While as of yet privatization has not been a huge issue in Costa Rica, if the recent downturn in the tourism industry due to the terrorist attacks of September 11th continues, it may become a topic of debate in the future, as some of the nation's less popular parks face budget crises.

The National Treatment Principle
Under the national treatment principle of the GATS, member nations must extend equal investment opportunities to foreign investors as domestic service providers. Although some exceptions to this rule are permitted, some of Costa Rica's zoning laws and nationality requirements could be construed as unfair trade practices. (http://www.wto.org/english/tratop_e/serv_e/gatsqa_e.htm) For instance, Costa Rica uses local ownership and residency requirements to maintain domestic control of the tourism industry, especially in the development of beachfront tourism projects. (Country Commercial Guide, American Embassy San Jose, 2000). Given the importance of tourism to the nation's economy, it is no wonder that the government would want to enact some limited protectionist measures in order to protect the industry from foreign control. However, to truly keep with GATS regulations these investment limitations would not be in place, which would leave local small businesses and the informal economic sector of the tourist industry in danger of extinction.

Eco-Labelling or Discrimination?
Another area in which Costa Rica's ecotourism could be called in violation of GATS regulations is in eco-labelling of environmentally friendly hotels, restaurants, tour companies, and other businesses associated with tourism. These labels are to protect against the "greenwashing" businesses that misuse an environmental label in order to attract ecotourists. One program that Costa Rica to avoid uses "greenwashing" is a government-run accreditation program that rates hotels, tours, and other travel services by their environmental awareness. (Fennell, 1999, 152). However, if these accreditation programs favor domestic over foreign businesses, they could be viewed as an unfair trade barrier under the GATS.

The accusation that environmental protection programs are actually excuses for protectionism is not an uncommon one among members of the WTO. However, the trade organization has been reluctant to settle disputes over environmental protection, which it believes should be settled within multilateral environmental agreements or other organizations. This reluctance reveals the WTO's desire to remain a primarily trade and economic oriented institution, and leave environmental issues to NGOs. But, with issues of environmental protection becoming further and further entwined in trade and globalization, this may not be a role the WTO can avoid for much longer.

6. Forum and Scope: Costa Rica and Multilateral

7. Decision Breadth:

8. Legal Standing: Law

III. Geographic Clusters

9. Geographic Locations

a. Geographic Domain: North America

b. Geographic Site: Southern North America

c. Geographic Impact: Costa Rica

10. Sub-National Factors: No

11. Type of Habitat: Tropical

IV. Trade Clusters

12. Type of Measure: Import Standards

Environmental Protection or Protectionism?
In order to keep their beaches relatively unspoiled and safe for the native wildlife, Costa Rica's has specific environmental regulations on the development of beach front property. For example, to avoid the negative ecological and aesthetic consequences of condo-lined beaches similar to those of many American beaches, beachfront property in Costa Rica is considered public property for a distance of 200 meters from the high tide mark. In addition, unlike American beaches, private ownership of beach plots, used by some hotels to allow exclusive access to their patrons, is not allowed in Costa Rica, and the public has complete access to the beach area within the first 50 meters of the shoreline. The next 150 meters are restricted, but temporary property permits are available if the developer presents an acceptable "regulatory plan" for the land. These regulations help protect Costa Rica's beaches from the possible ill effects, on both the environment and local businesses, of rampant foreign investment. (http://www.incostarica.net/docs/commercialguide, Oct. 3, 2001). If the nation's valuable beachfront property were left unprotected from these "import standards," undoubtedly hotel and restaurant chains would now line Costa Rica's now untamed beaches, putting the local tourist industry out of business and doing irrevocable damage to the ecosystem

13. Direct v. Indirect Impacts: Direct

The "import" limitations Costa Rica places on investment in its tourism industry have a direct impact on the trade in travel services.

14. Relation of Trade Measure to Environmental Impact

a. Directly Related to Product: Yes, Tourism

b. Indirectly Related to Product: No

c. Not Related to Product: No

d. Related to Process: Yes, Habitat Change

15. Trade Product Identification: Ecotourism

Ecotourism, encompasses more than the upkeep of parks and lodges, but as with other tourism industries, extends into sometimes little thought of service providers such as taxi drivers, street vendors, waiters, and shopkeepers, hotel owners, and airports, among others.

16. Economic Data

International trade in travel services has been on the rise in recent years (up 6% since 1990) and is now the largest service industry worldwide. (WTO, Chart IV.17). Ecotourism is the fastest growing sector of this industry, with an average annual growth rate of 20 to 30 percent. (Egan, 2001).According to WTO data, travel services make up 56% of Latin America's service exports, more than any other commercial service industry. (WTO, 2000, Table IV.87). Although Costa Rica's travel services industry may be much smaller than its overseas competitors, this small nation has become a popular destination for an increasing number of overseas travelers. (See Table 1) According to State Department statistics, the number of tourists visiting Costa Rica has shot up from 780,000 in 1996 to more than 1.1 million in 2000. Last year, tourism brought in $1.1 billion, and since 1997 the number of tourists visiting Costa Rica has increased by at least 6% annually. In terms of bringing in foreign currency, tourism is second only to the electronic components sector led by INTEL, and it earns more foreign exchange than the nation's former staple exports, bananas and coffee, combined. (www.state.gov/r/pa/bgn/index.cfm?docid=2019, Oct. 1, 2001)

17. Impact of Trade Restriction: Low: Despite Costa Rica's minimal protection policies, the nation's tourism industry is booming and foreign investment in tourism and ecotourism is on the rise.

18. Industry Sector: Services

19. Exporters and Importers: USA and Costa Rica

The developed nations of North America and Western Europe make up most of the top ten importers and exporters of travel services. The ease of travel throughout Europe, the many historical, cultural, and artistic treasures of this region, and the wealth of Western Europeans puts Europe at the top of international tourist trade. Western Europe enjoys the largest share in the global trade of travel services, and travel within Europe encompasses about 46% of total world imports and 43% of the exports of this service industry. (WTO, Chart IV.18).

 

Table 3a
Top Tourism Exporters	Value of Industry(billions of $)	Share in World Exports %
1. United States	87.1	19.7
2. Spain	32.4	7.3
3. France	31.4	7.1
4. Italy	27.4	6.2
5. United Kingdom	23.1	5.2
6. Germany	16.7	3.8
7. China	14.1	3.2
8. Austria	11.1	2.5
9. Canada	10.2	2.3
10. Australia	8.2	1.8

 

Table 3b
Top Tourism Importers	Value of Industry(billions of $)	Share in World Imports %
1. United States	62.0	15.1
2. Germany	48.4	11.7
3. United Kingdom	36.4	8.8
4. Japan	32.8	8.0
5. France	18.6	4.5
6. Italy	16.3	4.0
7. Hong Kong	13.2	3.2
8. Canada	11.3	2.8
9. Netherlands	11.2	2.7
10. China	10.9	2.6

V. Environment Clusters

Deforestation - Costa Rica's diverse flora and fauna are protected in 24 national parks, covering 21% of the country's territory (28% if the nation's indian reserves are included). However, not all of these conservation areas are completely under government control and 44%of the 3.2 million acres marked for protection remain in the hands of their previous residents and owners. Because enforcement of conservation efforts in these areas are minimal, some of these "protected" lands have been turned into undercover logging projects. (Dulude, 2000). Logging and agriculture have long depleted Costa Rica's forested regions (Table 4), and while the public purchase of the nation's forests is a step in the right direction, it is clear that more needs to be done to ensure that this centuries old deforestation trend does not continue.
 

Table 4
Time Period	% of territory covered by forest
Prior to Colonization	99.8%
1950	53%
1981	31%
1987	27%
(Weaver, 1998, 83)

Endangered Species- According to the Convention on the International Trade in Endangered Species (CITES) Costa Rica is home to five critically endangered species, 21 endangered species, and 31 species considered vulnerable (Table 5 ). Among these endangered wildlife are several species of turtle, various seabirds, and some primates. In addition, Costa Rica has 527 endangered plant species, which is about 4.3% of their total plant life. (International Union for Conservation and Nature (IUCN)).

Biodiversity - By and large ecotourism in Costa Rica has played a positive role in the protection of the nation's incredible biodiversity, endangered species, and lush forests. The expansion of protected areas and ecotourism's economic incentive for conservation has allowed Costa Rica to minimize environmentally degrading industries such as logging, poaching, and some types of agriculture. For instance, Tortuguero National Park is charged with protecting the nesting area of several endangered and vulnerable types of sea-turtle, some of which are unique to Costa Rica. These turtles and their eggs have long been a prized food source for local residents and were routinely poached before their nesting areas were protected. Although enforcement at Tortugeruo National Park is not as strict as it should be, the park has helped keep these turtle species from extinction. (Chant, 1992, 91-92).

While Costa Rica has had a laudable environmental track record thus far, if the government is not careful to regulate and closely monitor the development of its ecotourism industry the nation's biodiversity could be seriously injured. Ecotourism puts travelers in direct contact with sometimes endangered plant and animal species, and if a park or protected area does not have the funds to employ enough guards and tour guides, conservation rules can easily be broken as tourists may be tempted to physically contact or even harass the ecosystem's most delicate flora and fauna. (Garen, 2000, 225).

21. Name, Type, and Diversity of Species

Although a small country (about the size of West Virginia), Costa Rica has incredible biodiversity with 20 "ecological life zones" encompassing scenic beaches, lush rain forest, impressive volcanoes, and exotic wildlife. (Weaver, 1998, 81). Costa Rica is home to so many diverse environmental treasures, chiefly because of its geographic location and wide range of climatic and vegetation conditions. Costa Rica's chief ecological advantages enabling this diverse growth are:

1. It's location between just 8 and 11 degrees north of the equator,
2. Borders with both the Pacific and Caribbean oceans, and
3. Altitude ranges from sea level to 3,819 meters. (Chant, 1992, 90).

This diverse ecosystem of mountains and rainforests has created hospitable living conditions for:

• Over 1,200 kinds of orchids
• 1,260 tree species
• 361 species of reptiles and amphibians
• 237 mammals
• and 85 types of birds (Weaver, 1998, 81).

The Tourism Impact
An unregulated influx of foreign tourists into Costa Rica's remote rural areas can have an effect on both the region's environment and culture. This tourism impact has been increasing steadily in Costa Rica, as the numbers of tourists going into protected areas has gone largely unregulated. David Harrison has rated the tourism impact of various nations by dividing the number of international tourist arrivals by the country's population and multiplying by 100. For 1988, Harrison calculated this figure to be 12.2 for Costa Rica. (1992, 12). If we use the same equation today, the tourist impact ratio more than doubles to 31.4, revealing that Costa Rica's tourism industry may be accelerating out of control. (see Table 6). For example, if the rapid growth in the number of foreign tourists visiting Costa Rica may not have allowed local residents in popular travel destination enough time to adapt to the change. David Fennell witnessed evidence of this phenomenon while on an ecotourism tour in Costa Rica. A tour guide led Fennell and the rest of a tour group to a secluded area in which they could view the miracle of a green-sea turtle laying her eggs. But, what was not part of the scheduled tour was that after the birth was over and the turtle began its way back to the ocean, the tour group caught site of a local man jumping on the turtle's back as part of a hunting ritual. What Fennell discovered then was that these turtles and their eggs have long been a staple part of the local diet, and that Costa Ricans living in this region had not adapted well to their government's new species protection efforts. This event shows the disjuncture between the Costa Rica that tourists experience and the Costa Rica that locals live in, and perhaps reveals that the progressive environmental ideals of the industry have not had the chance to catch up with cultural traditions.
 

Table 6	The Tourist Impact for Costa Rica
Year	Foreign Visitors	Population	Tourist Impact
1988	350,000	2.87 Million	12.2
2001	1.1 Million	3.5 Million	31.4

In addition, sustained contact with foreign visitors can have a variety of disruptive effects on local populations. For instance, some believe that the constant flow of wealthy, white American and European tourists into areas populated mainly by indigenous peoples and mestizos can enforce a "colonial mentality" that indigenous peoples are subservient to whites by their very nature. For instance, many lower class locals working in travel services find themselves cleaning up after, cooking for, and generally serving white, wealthy tourists. While for the tourist, being waited on is all part of a relaxing vacation experience, for locals this situation only emphasises the class, and possibly racial, differences between themselves and the foreign visitors. (Weaver, 1998, 59). Also, to accommodate tourists, resident populations may alter their traditional artistry to so-called "airport art" so that it is more acceptable to foreign travelers. The same can be true of customary foods, dances, and other traditions. (Harrison, 1992, 20). Finally, while one of the hopes of ecotourism is to advocate respect of other cultures, during this cultural exchange locals may pick up bad habits from the foreign visitors. The "ugly American" syndrome can rub off on a region's impressionable younger generations, and locals may develop a taste for conveniences of the modernized world which they cannot afford, or could pick up the wasteful behaviors of some of their less-environmentally aware visitors. (Weaver, 1998, 27).

26. Trans-Boundary Issues: No

27. Rights: No

28. Relevant Literature

"50 year partnership between USAID and Costa Rica." USAID press release, 1996 http://www.usaid.gov/press/releases/960723.htm, Nov. 4, 2001.

Adams, Lisa J. "Panama Makes effort to Challenge Costa Rica as Rich Ecotourism Area." The St. Louis Post-Dispatch. March 26, 2000.

Brenes, Daniel. "Coffee Crisis: Costa Rica Coffee Growers are Turning to Tourism as World Prices for Brew Sag." The Ottawa Citizen. March 17, 2001.

Chant, Sylvia. "Tourism in Latin America: perspectives from Mexico and Costa Rica." Tourism and the Less Developed Countries. Harrison, David ed. Belhaven Press: London, 1992. 85-101.

Country Commercial Guide, American Embassy San Jose, 2000. http://www.incostarica.net/docs/commercialguide, Oct. 1, 2001.

Dapin, Mark. "Eruptin Volcanoes and Poisonous Frogs are no Problem - It's the Tour Guides you Should be wary of." The London Times. April 21, 2001.

Dulude, Julie. "Trouble in Paradise: Critics say lack of Protection Endangers Costa Rica's Famed Nature Preserves." The San Francisco Chronicle. December 28, 2000.

"Endangered Plant Species." International Union for Conservation and Nature (IUCN). http://www.iucn.org/ October 15, 2001.

"Endangered Species Lists (Both Animal and Plant Life) for Costa Rica." Convention on the International Trade in Endangered Species (CITES). October 15, 2001. http://www.cites.org/

Egan, Timothy. "Uneasy Being Green: Tourism Runs Wild." The New York Times. May 20, 2001.

Fennell, David A. Ecotourism: An Introduction. Routledge: London, 1999.

Gaynor, Tim. "Central America Embraces Ecotourism." The Toronto Star. July 15, 2000.

Garen, Eva J. "Appraising Ecotourism in Conserving Biodiversity." Foundations of Natural Resources Policy and Management. Clark, Tim, Willard, Andrew, and Cromley, Christina eds. Yale University Press: New Haven, 2000. 221-251.

"Green and Gorgeous." The Scotsman. July 28, 2001.

Harrison, David. "International Tourism and the Less Developed Countries: The background, the Social Consequences." Tourism and the Less Developed Countries. Harrison, David ed. Belhaven Press: London, 1992. 1-20.

Hicks, Melissa K. "Touting Ecotourism could have more Vacationers seeing Green." The Atlanta Journal and Constitution. March 26, 2001.

"International Trade Statistics for the year 2000." The World Trade Organization, 2000. http://www.wto.org/English/res_e/statis_e/stat_toc_e.htm. Oct. 1, 2001

Lizano, Rodolfo. "Certification of Sustainable Tourism." http://www.planeta.com/planeta/01/0104costa.html Sep. 2, 2001.

Kaimowitz, David. "Social Pressure for Environmental Reform." Green Guerrillas. Collinson, Helen ed. Black Rose Books: Montreal, 1997. 9-20.

McLaren, Deborah. Rethinking Tourism and Ecotravel: The paving of paradise and what you can do to stop it. Kumarian Press: West Hartford, 1998.

Reid, Walter V. "Pharmaceutical giant shares the wealth: Merck funds R&D in Costa Rica." http://students.washington.edu/radin/costa.htm Dec. 17, 2001

Richter, Linda K. "Political Instability and tourism in the Third World." Tourism and the Less Developed Countries. Harrison, David ed. Belhaven Press: London, 1992. 35-46.

The World Almanac and Book of Facts 2001. World Almanac Books: New Jersey, 2001.

"The General Agreement on Trade and Services: Objectives, Coverage and Disciplines." The World Trade Organization, 2000. http://www.wto.org/English/tratop_e/serv_e/gatsqa_e.htm. Dec. 9, 2001.

Weaver, D.B. Ecotourism in the Less Developed World. Cab International: London, 1998.

For more on travel and ectourism in Costa Rica check out:

• The Travel Web Costa Rica at http://www.crica.com/special/ecotour.html
• The Costa Rican National Chamber of Tourism at http://www.tourism.co.cr/ecotourism.html
• The planteta.com site at http://www.planeta.com/ecotravel/center/costa/costa1.html offers a lot of general news and information on ecotravel in Costa Rica
• To plan an ecotourism adventure in Costa Rica, try http://www.adventureincostarica.com/
• Also, the United Nations has declared 2002 the International Year of Ecotourism. To find out more look at http://www.world-tourism.org/sustainable/IYE-Main-Menu.htm