TED Case Study - Pandas and Ecotourism

Pandas today number so few, breed and adapt so slowly, and depend so heavily on the stability of their environment that their fate lies entirely in the hands of humans. While some efforts have been launched to protect pandas and their environments purely on altruistic grounds, the survival of the species may fare better if corresponding economic incentives can be found. This is particularly true because the panda population is concentrated in an area of southwest China where indigent local villagers depend on activities such as logging for economic survival. Ecotourism, in essence, is the sale of an experience, and one that relies heavily on a naturally occurring environment. In the case of pandas, ecotourism covers both the rental of pandas to other countries’ zoos and the more traditional approach of building research areas and wildlife preserves, wherein tourists can observe pandas (and often buy associated merchandise) in exchange for entrance fees. Ecotourism, both in general and in this specific case, encourages a local economy to preserve its natural environment, which it suddenly discovers to be a source of revenue. Ecotourism thus serves an environmentalist cause by halting the encroachment of human society on an area of nature. It is a finely balanced industry, however, considering that the very tourism which serves to protect the pandas, if it becomes too heavy in volume, has the potential to disrupt both the animals and their environment.

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I. Identification and Overview

1. The Issue - Identify, describe, and extrapolate the conflicting influences of ecotourism on the protection of pandas

Estimates generally place the panda population of the world at a level slightly below 1000 animals. The World Wildlife Fund estimates that the habitat available for pandas was reduced by half between 1974 and 1989. Moreover, fragmentation of the remaining area raised considerable challenges for reliable food procurement and depth of the gene pool.

The diet of a panda is almost exclusively composed of bamboo. Because pandas descended from carnivores, their digestive systems are ill-suited for the bamboo they consume. As a result, pandas take in massive amounts of bamboo, 83 pounds per day, in order to retain enough nutrition for survival. Pandas, then, are heavily reliant on an abundant and sustained source of bamboo, something best assured by large, continuous tracts of suitable land. Pandas are also slow to rebuild their population, having just one offspring every one or two years.

Geographically speaking, the panda population is fairly concentrated. It covers only a handful of mountain ranges in three provinces in southwest China. Most pandas live within a couple dozen nature reserves established by the Chinese government. The local populace around panda habitats is generally poor, and relies heavily on farming, hunting, and logging for survival. These activities produce little in the way of total economic value, but are very destructive for panda habitats – a textbook context for ecotourism. In theory, ecotourism can support a local economy by making a resource out of the local environment. The populace then has a vested interest in preserving its source of income, and in many cases may even find its economic situation improved. This equation is all the more pertinent in China, where statutory prohibitions failed to halt encroachment and where local officials are often more interested in spurring economic growth than environmental husbandry.

A recent study commissioned by the Chinese government found that a properly managed ecotourism program in the Wolong Panda Reserve could generate between $29 and $42 million per year. This reserve is the largest of a couple dozen reserves in three provinces of southwest China, which among them hold the entire wild panda population. By replacing the local economy, which is destructive in relation to the panda habitat, with an economy based on ecotourism, the area can generate enough revenue to increase standards of living. Simultaneously, the new economy will provide concrete incentives for the maintenance of panda habitat and the health of the panda species.

Loaning pandas to zoos can also be a profitable exchange. Such loans are closely related to the concept of ecotourism, relying on the sustenance of the local ecology to produce revenues that do not consume the primary resources. U.S. zoos pays up to $1 million per year for the loan of pandas, and much of that money is plowed back into conservation programs, from whence the pandas came. Captivity, however, presents both a threat and a promise to the species. Because pandas are valuable assets to zoos, they can be loaned out to produce conservation revenues and a general understanding of why conservation is important. Yet precisely because pandas have proven to be so lucrative, the temptation exists to place a larger number in captivity. To some extent, the Convention on International Trade in Endangered Species (CITES), a 160-member multilateral agreement housed within the United Nations Environmental Programme, represents an obstacle to such actions, but the possibility for abuse of its provisions remains.

A more traditionally defined ecotourism program, wherein tourists pay to visit pandas in an essentially wild environment, represents a similar double-edged sword. The local populace protects its environment for the sake of tourist dollars, but if the flow of tourists becomes too great, the very ecology they come to visit may be threatened. Tourists require transportation and housing, which disrupt the environment. They consume food, use energy, and leave waste. Perhaps most obviously, they interact with their ecological target. In this last regard, pandas are more resilient to ecotourism than many other animals, as the presence of humans does comparatively little to alter their movement, eating, and mating patterns. Nonetheless, the carrying capacity of an ecotourism economy is an important, if vague, boundary. Ecotourism based on pandas may represent a boon for local economies and conservation efforts, but it also holds the potential to be the bane of the very areas it thrives upon.

II. Legal Issues

Pandas are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). As such, any importation or exportation of pandas is closely regulated. CITES was adopted in 1963 by the World Conservation Union, an intergovernmental body tied to the structure of the United Nations through its Environment Programme. (organizational chart) CITES entered into force in 1975, and now counts 164 members, including China (entered 1981) and the U.S. (entered 1975). The agreement is voluntary but legally binding.

Because of the inclusion of pandas under CITES, bringing pandas into the U.S. requires reviews by both the Chinese and American governments. China’s government, through its designated scientific authority, must assert that the trade would not be detrimental to the survival of the species, that the animals in question were obtained legally, and that the animal’s treatment in transit and after reception would be adequate. The U.S. government must make a similar set of findings, including an assessment that the panda would not be used primarily for commercial purposes.

U.S. guidelines for pandas recognize that they have potential to bring in large profits. To bring in a panda the zoo must have a valid scientific program and a plan that insulates that program from interference by public viewings. The research must fit into the larger research programs of China and US on pandas. Money given for pandas must be used for a related program, such as panda preservation or research in China. (“Giant Panda Policy”)

China’s Huanglong area is protected as a World Heritage site, which brings prestige as well as some monitoring and funds. This, however, is not a tight legal document along the lines of CITES. On a national level, pandas are covered by the U.S. Endangered Species Act, which helps to shape the U.S. guidelines outlined above. Intra-national movement of pandas and regulation of ecotourism are domestic matters for China. Legal aspects include poaching and land-use regulations. China appears to have largely deterred poaching with harsh penalties and enforcement.

7. Decision Breadth - CITES is universal. U.S. regulations apply throughout the U.S. Chinese regulations are largely local in nature.

In general, legal issues have not been contentious; all involved parties concur that pandas should be protected. Some potential problems could involve domestic Chinese laws which affect the lifestyle of residents in panda regions. These, however, are not the type of conflict made public to the world. Encouragingly, international and American regulations ensure that pandas sent to U.S. zoos serve to fund conservation efforts in China, including the study of issues related to maintaining a stable balance between development and conservation, possibly through ecotourism.

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III. Geographic Clusters

c. Geographic Impact: Great. The largest threat to the species is encroachment on their environment.

10. Sub-National Factors: Significant. Most economic activity in China falls under the jurisdiction of provinicial governments.

IV. Trade Data

13. Direct v. Indirect Impacts: Tourism directly effects local economies, which influences how they preserve or exploit the environment.

Panda related ecotourism can be divided into reserves in China and zoos elsewhere. There are 110 pandas living in captivity worldwide, but only nine pairs of pandas live outside of China, four of them in the United States. (“Giant Pandas Mean Big Things”; "Memphis Zoo Goes Wireless for Pandas") Pandas in U.S. zoos have been leased, with recent deals providing for 10 years at $1 million per year. The American zoo can also be obligated by the lease to provide a set amount of funding for research programs on the pandas while they are in the U.S. For the Memphis zoo this year, such spending equaled $300,000 per year. (“Giant Pandas Mean Big Things”)

After committing to such expenses, American zoos also expect a large increase in revenue. A University of Memphis study estimates that the Memphis area will take in $28.9 million in panda related tourist revenue. Over the next decade, this figure is placed at $135.5 million. Notably, this is only the increased revenue expected because of the pandas; total zoo tourists are expected to spend $647 million in the area during the next ten years. (“Giant Pandas Mean Big Things”) The National Zoo in Washington, D.C. experienced a similar rush of tourists for its panda exhibit, and estimates that 5 million people visited the pandas between their arrival in December, 2000 and March, 2003. (Small testimony)

19. Exporters and Importers:

Globally, tourism is a giant industry, though one that is highly susceptible to weak economic conditions as well as political and social conditions such as the terrorism and SARS scares. (WTO highlights) Tourism is rarely directly targeted by tariffs or other trade barriers, but perceptions of a possible destination do matter immensely. Below are the top ten countries in 2002 by tourist arrivals, receipts, and citizen spending.

International Tourism Receipts – Top Destinations and Highest Revenue
2002 rankings	Arrivals (millions)	2002 rankings	Receipts (billions USD)
1. France	77.0	1. United States	66.5
2. Spain	51.7	2. Spain	33.6
3. United States	41.9	3. France	32.3
4. Italy	39.8	4. Italy	26.9
5. China	36.8	5. China	20.4
6. United Kingdom	24.2	6. Germany	19.2
7. Canada	20.1	7. United Kingdom	17.8
8. Mexico	19.7	8. Austria	11.2
9. Austria	18.6	9. Hong Kong (China)	10.1
10. Germany	18.0	10. Greece	9.7
Source: World Tourism Organization. Tourism Highlights 2003

International Tourism Expenditures – Top Spenders
2002 Ranking	Spending (billions USD)
1. United States	58.0
2. Germany	53.2
3. United Kingdom	40.4
4. Japan	26.7
5. France	19.5
6. Italy	16.9
7. China	15.4
8. Netherlands	12.9
9. Hong Kong (China)	12.4
10. Russian Federation	12.0
Source: World Tourism Organization. Tourism Highlights 2003

China, excluding Hong Kong, hosted 36.8 million international tourists in 2002, with tourism accounting for 5.4% of GDP. (WTO Barometer; “China’s Tourism to Occupy 11% of GDP by 2020”) Globally, international tourism created direct receipts of 474 billion USD in 2002. (WTO overview) About half of this revenue went to Europe, with Asia capturing 20%. Tourism generates, directly and indirectly, 200 million jobs, 10% of the global job total. (ecotourism fact sheet)

Separating ecotourism from total tourism is necessarily difficult, depending heavily on which definition the data-collecter uses. This is particularly true when dealing with a tourist who participates in both ecotourism and regular tourism during one trip. Nonetheless, it is estimated that 40-60% of all international tourists are nature tourists, and 20-40% are wildlife-related tourists. Nature related tourism is also growing at a much faster clip than regular tourism, 10-25% compared to 4%. (ecotourism fact sheet)

A study estimates that the largest panda reserve in China has the potential to generate 29-42 million USD without exceeding the limits of sustainability for the reserve. ("The Economics of Panda Reserve Management") This does not mean that all current activity is sustainable or non-intrusive. Tourists at the same reserve can currently be photographed holding a panda for 12 dollars. ("China's Nature Reserves: Protecting Species of Generating Profits?" )

V. Environment Descriptions

There are almost 1000 pandas remaining, concentrated on a handful of mountain ranges in southern China. They are likely to come into contact with humans, and the frequency of such encounters continues to increase as human populations hem in the remaining panda habitats, and as tourists travel to panda reserves for the expressed purpose of passively interacting with pandas. The human population in the largest reserve, Wolong, has increased by 66% since its foundation in 1975, with households up 115%.

Bamboo makes up nearly all of the diet of these pandas, and their living patterns tend to center on food sources. Increased use of wood for timber or firewood has done much to reduce the size and contiguity of suitable habitats. Pandas have no regular natural predators, and a lifespan that stretches to decades, but repopulation rates are small. As a result, human incursions into panda demographics have an unusually large impact. Wild pandas, like their captive brethren, serve as poster animals for environmentalist movements. As a result, they are both highly lucrative as tourist attractions and frequently disturbed as a result. Human pressure on pandas is likely only to increase.

Environment in Zoos

Tian Tian and Mei Xiang are two of the best known pandas, and taking a look at their daily lifestyle will grant some insight into the zoo environment. They are on a ten year loan to the United States Smithsonian National Zoological Park, in exchange for a $10 million donation to Chinese official agencies involved in panda protection. They are among approximately 20 pandas that live in zoos outside of China. They are a major attraction at the Washington, D.C. zoo, serving to raise awareness of environmental issues and sell novelties and souvenirs.

At 4 and 5 years of age, these two pandas are entering sexual maturity, a subject of much interest to the Zoo and its patrons. Panda population growth is troublingly slow, and the additional difficulties of birth in captivity have made the undertaking even more significant. The period of time around the 1-3 day annual mating period is closely monitored, as are such things as eating habits and estrogen levels. The spring of 2003 saw only a 15 second mating session that raised hopes but ultimately proved fruitless.

When not engaged in such activities, the pandas spend much of their time as they would in the wild – eating. Each spends 10-16 hours per day working their way through the day’s nutrition. Their diets are more varied than most wild pandas, though still heavily based on bamboo. The occasional small rodent is not present in their diet, but a few nutritional biscuits and other such side dishes have been added instead.

Pandas are more often than not solitary creatures, existing on their own schedule though occasionally interacting with others they happen across. However, pairings are not unrecorded, and Tian Tian and Mei Xiang seem to have followed this less conventional route. The two regularly roll around in some form of playful recreation. Their habitat and roaming area, though smaller, represent a microcosm of all the geographic and climatic features they are likely to encounter in the wild. They are subjected to intense scrutiny, both from tourists and researchers. However, the nature of interaction with both groups is largely non-imposing and seems to disturb them little if at all.

The lives of these two pandas are obviously different as a result of ecotourism. They live in a sheltered environment, with freely provided food of greater than average variety. In return, they become an around-the-clock spectacle. In fact, you can view them here right now. They appear to be more social than expected, though this trait cannot necessarily be attributed to captivity. Their experience serves as a concentrated example of how expanding ecoutourism may affect wild and semi-wild pandas in China.

Pandas are an ideal case study for proponents of ecotourism. First and foremost, they can easily be included under the label "charismatic megafauna," the standard for which is essentially how many times"aww, how cute" is heard from observing humans. These utterings can be directly translated into dollars. Or as an alternative, the pandas can be used, quite literally, as a poster animal. Additionally, legal standards on international trade or lending of pandas is well-defined and well-enforced, so environmental activists do not need to qualify their support for zoo programs. Finally, and most importantly, the greatest threat to pandas is environmental degradation caused by the human population around the remaining wild pandas and panda reserves. The environment's destruction is the result of economic dependence on heavily extractive and damaging activities. The local population depends on these practices for economic survival, but the economic value gained pales before the potential revenues of a well-managed ecotourism program. In sum, if ecotourism is to suceed anywhere, pandas should be the case.

That being said, more demand for panda viewing and interaction exists than can be sustained by panda reserves without threatening the pandas themselves. Strong management is required to limit tourist traffic to the carrying capacity of the reserves. Such management is also necessary to assure an equitable distrubution of economic benefits to the local populace in order to secure popular support for local environmental preservation. On these counts, the outlook is grim. Panda reserves are viewed as valuable gems in a developing country where political success is defined by local economic growth, regardless of sustainability.

If the future of pandas is predicted by a simple extrapolation of current trends, the species will be lost. Change is necessary, and ecotourism represents the greatest possibility for protection of the pandas' environment. On the side of optimism, zoo revenues are already cycled back to panda reserves through lease payments and research. Those interested in protecting pandas should encourage ecotourism, but more importantly, should pressure reserve management to adopt a sustainable ecotourist program.

VI. Other Factors

“The Economics of Panda Reserve Management.” Timothy Swanson, et al. Environmental Economics Working Group of the China Council for International Cooperation on Environment and Development. 2001. Available at: http://biodiversityeconomics.org/pdf/topics-613-01.pdf

"A Framework for Evaluating the Effects of Human Factors on Wildlife Habitat: The Case of Giant Pandas." Jianguo Liu, et al. Conservation Biology, Vol. 13, No. 6 (December 1999). p. 1360-1370.

Testimony of Lawrence M. Small, Secretary, Smithsonian Institution before the Committee on House Administration, U. S. House of Representatives, March 5, 2003. http://www.house.gov/cha/hearingsmalltest.htm

Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). http://www.cites.org/

Trade and Environment Database

Ecotourism: Panda's
Paladin or Bane?

I. Identification and Overview

II. Legal Issues

III. Geographic Clusters

IV. Trade Data

V. Environment Descriptions

VI. Other Factors

Trade and Environment Database

Ecotourism: Panda's Paladin or Bane?

I. Identification and Overview

II. Legal Issues

III. Geographic Clusters

IV. Trade Data

V. Environment Descriptions

VI. Other Factors

Ecotourism: Panda's
Paladin or Bane?