Ecotourism's sustainability challenges in Costa Rica and Cuba

¶ … Ecotourism Industry in Costa Rica and Cuba

Many countries rely upon tourism as a major source of revenue for local businesses. The volatility in the industry has often caused major financial downturns for tourism-based economies. To deal with this problem many countries are targeting a new consumer, the eco-friendly traveler. Ecotourism is the fastest growing sector of the tourism industry with an average annual growth rate of 20 to 30%. (Egan, 2001). Many view ecotourism as a viable way to protect the natural environment and create social and economic benefits for local communities (Buchsbaum, 2004). The issue with ecotourism is whether or not its implementation in a given area is actually creating sustainable land use and conservation efforts or harming local economies and contributing to the overuse of natural resources.

Ecotourism Defined

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).

III. Ecotourism in Costa Rica

Ecotourism in Costa Rica has reached a high level of maturity compared to other countries, and now serves as an example for both the potential and the pitfalls of ecotourism (Buchsbaum, 2004). The main reason Costa Rica has become such a popular destination for ecotourism is because it has an excellent national parks, a stable democratic government with no army, a pleasant climate, and friendly people (Buchsbaum, 2004). It also has one of the highest standards of living, the best public health care system, the best public education through the University level, and the highest literacy rate in Latin America (Honey, 1999).

The government of Costa Rica began to invest heavily in ecotourism in the 1980's, and in 1984 they passed an important piece of legislation, which gave incentives and tax breaks to hotels, airlines, car rental agencies, travel agencies, and sea transportation (Honey, 1999). Government supported policies and programs were designed so that foreign investors would benefit the most which resulting in few opportunities for local businesses to invest (Buchsbaum, 2004). The governments relaxed attitude towards foreign investors and logging companies is also not encouraging sustainability (Buchsbaum, 2004). Foreign money has not helped the local economy as much as anticipated because a large amount of money leaks out of the local communities to pay tour operators, to import products that appeal to foreign tourists, and to pay for tickets on foreign owned airlines (Lindsey, 2003).

One of the dangers of ecotourism is the excessive pressure it can add to environmentally sensitive areas (Buchsbaum, 2004). Coupled with a lack of commitment, conservation efforts result in development beyond sustainable levels (Buchsbaum, 2004). Another negative impact of ecotourism is that it can lead to an increase in the cost of living for local people (Wearing, 2001).

V. Conclusion

Both Costa Rica and Cuba have capitalized on the ecotourism opportunities available for their distinct socio-political, cultural environment. Costa Rica has encouraged foreign investment to the point where the local businesses and people are priced out of investing in the local ecotourism market leaving managerial decisions about ecotourism largely to the foreign investors. Cuba has allowed foreign investment, but the government plays a heavy hand in regulating and controlling the scarce resources of the country. The tight controls keep local businesses involved, but create a lack of innovation in management.