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Biodiversity and Ecosystem Services in the Tourism Sector

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The tourism sector operates at the intersection of environment and big business. As the industry has matured, it has had to face difficult realities with respect to its environmental impacts. Tourism businesses are looking for ways to mitigate environmental impact and positively influence environmental issues.

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Biodiversity and Ecosystem Services in the Tourism Sector

  1. 1. Vital Wave Consulting Field TeamsLatin America Argentina Brazil Chile Costa Rica Dominican Republic Mexico Transforming Risk into Opportunity: PeruAsia India China Cambodia Uzbekistan Biodiversity & Ecosystem Services and theEastern Europe Tourism Sector Estonia UkraineAfrica February 29, 2012 Egypt South Africa Nigeria Kenya Christina HeynigerMiddle East Strategic Accounts & Sustainable Tourism United Arab Emirates Vital Wave ConsultingUnited States C. Josh Donlan, PhD Founder and Director California (Headquarters) Advanced Conservation Strategies
  2. 2. Introductions C. Josh Donlan, PhD Founder and Director Advanced Conservation Strategies www.advancedconservation.org jdonlan@advancedconservation.org Christina Heyniger Strategic Accounts & Sustainable Tourism Vital Wave Consulting www.vitalwaveconsulting.com christina.heyniger@vitalwave.com © 2012 Proprietary. 1
  3. 3. Agenda Overview of Tourism Industry (Christina) Pressures and Risks Facing Tourism Industry (Christina) Biodiversity & Ecosystem Services, Risk, and Investments (Josh) Case Study: Integrating Social Ventures with High-impact Environmental Outcomes (Josh) Summary of Conclusions (Christina) Questions & Answers (Josh, Christina) 2 © 2012 Proprietary. 2
  4. 4. Tourism Industry Overview Tourism Industry Environment Business • Environmental • International arrivals resources are critical • 4% in 2011 to more than attractions for tourists 980 million • Environmental changes • Global: Tourism • International travel • Changing consumer patterns accounts for generated $US 919 billion approximately 5% of • Travel to wilderness areas increasing in export earnings in 2010 global carbon dioxide • Travel to emerging markets increasing emissions • Local: Visitors can offer a financial incentive to conserve, but also threaten The tourism industry operates at the intersection of business and environment © 2012 Proprietary. 3
  5. 5. Spend Shifters - a sea of change Brand Asset Valuator (BAV) 1million consumers, 20 years, 50 countries, 70 brand metrics • Exclusive 60% • Sensuous 30% • Daring 20% • Friendly 148% • Socially Responsible 63% • Kindness/Empathy 391% © 2012 Proprietary. 4
  6. 6. Changes in Tourism as a Result of ChangingAttitudes and Values Changing Values Demand for authenticity More Experienced Travelers Risk for tourism businesses increases as desire for “authentic” travel experiences increases © 2012 Proprietary. 5
  7. 7. Environmental Investments in the TourismSectorSpectrum of approaches to copingwith uncertainty around 100% Marketenvironment and trying to stimulatebetter outcomes. Outcome-based100% Charity Reward tourism businesses or other stakeholders based on desired environmental or social outcomes.Input-basedInvestments in eco-lodges with a focus onenvironmental conservation or povertyalleviation are funded by NGOs or aidagencies. They often lacking enough businessto make them sustainable. © 2012 Proprietary. 6 6
  8. 8. Risk Mitigation Strategies Biodiversity and Ecosystem Services (BES) address the root cause of the risk businesses face Reputational Philanthropy Regulatory Product Adaptation Types of Risk Risk Operational Facing Tourism Mitigation CSR Industry Today Strategies Legal Liability Biodiversity and Ecosystem Services Systemic © 2012 Proprietary. 7 7
  9. 9. Advanced Conservation StrategiesFocused on outcomes and incentives • Our foundation is science, yet we work and collaborate outside of science to innovate and implement new solutions and ventures for environmental and sustainability challenges. • We leverage science, markets, design, finance, and behavioral economics for organizations trying to solve problems. © 2012 Proprietary. 8
  10. 10. Ecosystem Services are especially relevant inemerging markets • Biodiversity & ecosystem services • Why should the private sector care? • How we invest in biodiversity & ecosystem services • An non-tourism example: sustainable fisheries and sea turtles © 2012 Proprietary. 9
  11. 11. Examples of ecosystem services Environmental Services: • Clean water • Carbon sequestration • Disaster protection • Climate change adaptation • Fish nursery grounds © 2012 Proprietary. 10
  12. 12. Biodiversity and Ecosystem Services is a new field gainingindustry credibility with applications for tourism • Biodiversity and Ecosystem Services (BES) degradation and loss has gained business’ attention in recent years. • Higher public awareness of BES is leading to changes in consumer preferences and purchasing decisions. • Companies are holding an increasing amount of environmental risk Views of CEOs on threat to growth from biodiversity loss 75% 50% 25% Turning risk into opportunities: strategic approach, with a focus 0% on risk evaluation and mitigation. North America Western Europe Asia Pacific Latin America © 2012 Proprietary. 11
  13. 13. Potential Investments ForBiodiversity & Ecosystem Services Least Direct Investment Examples Support for extracted bio-products Logging, non-timber, hunting Support for reduced impact use Sustainable agriculture, sustainable fisheries Support for intact use Eco-tourism, sport hunting, wild honey Payment for other environmental services Carbon, watershed protection Payment for use rights Land easements, non-logging concessions Performance-based payments for biodiversity Paying for bird breeding success, paying for occupied wolf dens Most Direct © 2012 Proprietary. 12
  14. 14. Potential Investments ForBiodiversity & Ecosystem Services Least Direct Livelihoods Investment Examples Support for extracted bio-products Logging, non-timber, hunting Support for reduced impact use Sustainable agriculture, sustainable fisheries Support for intact use Eco-tourism, sport hunting, wild honey Payment for other environmental services Carbon, watershed protection Payment for use rights Land easements, non-logging concessions Performance-based payments for biodiversity Paying for bird breeding success, paying for occupied wolf dens Most Direct Payments © 2012 Proprietary. 13
  15. 15. Potential Investments ForBiodiversity & Ecosystem Services Least Direct Mature Markets Investment Examples Support for extracted bio-products Logging, non-timber, hunting Support for reduced impact use Sustainable agriculture, sustainable fisheries Support for intact use Eco-tourism, sport hunting, wild honey Payment for other environmental services Carbon, watershed protection Payment for use rights Land easements, non-logging concessions Performance-based payments for biodiversity Paying for bird breeding success, paying for occupied wolf dens Most Direct No markets © 2012 Proprietary. 14
  16. 16. Potential Investments ForBiodiversity & Ecosystem Services Least Direct Mature Markets Mature Markets Investment Support for extracted bio-products Support for reduced impact use Support for intact use Payment for other environmental services Payment for use rights Performance-based payments for biodiversity Paying For Biodiversity & Ecosystem Services Directly Most Direct No markets © 2012 Proprietary. 15
  17. 17. Part I. Shellcatch: The Real Fish Story16% of the world’s protein ¼ of global catch is bycatch>200 million people Seabirds & turtles$82 billion Ecosystem impacts © 2012 Proprietary. 16
  18. 18. Part I. Shellcatch: The Real Fish Story • Over a third of seafood is mislabeled • Seafood industry is calling for systems that ensure that U.S. seafood is safe, legal, and honestly labeled • Traceability has been challenging. Market Opportunity © 2012 Proprietary. 17 17
  19. 19. Shellcatch: The Real Fish Story © 2012 Proprietary. 18
  20. 20. Part I. Shellcatch: The Real Fish Story Least Direct Mature Markets Investment Examples Support for extracted bio-products Logging, non-timber, hunting Support for reduced impact use Sustainable agriculture, “alternative income generation” Support for intact use Eco-tourism, sport hunting, wild honey Payment for other environmental services Carbon, watershed protection Payment for use rights Easements, non-logging concessions Performance-based payments for biodiversity Paying for bird breeding success, paying for occupied wolf dens Most Direct No Markets © 2012 Proprietary. 19
  21. 21. Part II. Creating Innovative Solutions forFisheries Bycatch The social and economic importance of fisheries and the biological realities of overfishing and bycatch result in major tensions over ocean resources. © 2012 Proprietary. 20
  22. 22. Part II. Creating Innovative Solutions forFisheries Bycatch Adults & Nesting Sites Juveniles (~40 years) Juveniles (~40 years) Pacific Loggerhead Sea Turtle © 2012 Proprietary. 21
  23. 23. Part II. Creating Innovative Solutions forFisheries Bycatch Juveniles (~40 years) U.S. Hawaiian Long-line Fishery • Regulated Industrial • $50 million a year • Bycatch Measures In Place • 17 turtles year-1 = closure © 2012 Proprietary. 22
  24. 24. Part II. Creating Innovative Solutions forFisheries Bycatch Juveniles (~40 years) • Unregulated Industrial • Regulated Industrial • No Bycatch • $50 million a year Measures • Bycatch Measures In Place • Turtles year-1 = ? • 17 turtles year-1 = closure © 2012 Proprietary. 23
  25. 25. Part II. Creating Innovative Solutions forFisheries Bycatch • Unregulated Artisanal • <$100,000 • Turtles year-1 = >2,000 • Scientific knowledge • Community outreach © 2012 Proprietary. 24
  26. 26. Part II. Creating Innovative Solutions forFisheries Bycatch $$ Saved sea turtles Interfishery Bycatch Offsets Regulated industrial fishers buy bycatch credits (avoided mortality) in exchange for regulatory certainty around closures. Artisanal fishers change where and how they fish in exchange for financial payments. Challenge: need technology to documents and certify the bycatch credits (avoided mortality). © 2012 Proprietary. 25
  27. 27. Part I. + Part II. = Direct, high-impact outcomes Directly investing biodiversity services by integrating a program with an existing “environmental market”, and providing opportunities for environmental risk management. © 2012 Proprietary. 26
  28. 28. Potential Investments ForBiodiversity & Ecosystem Services Least Direct Mature Markets Mature Markets Investment Support for extracted bio-products Support for reduced impact use Support for intact use Payment for other environmental services Payment for use rights Performance-based payments for biodiversity Paying For Biodiversity & Ecosystem Services Directly Most Direct No markets © 2012 Proprietary. 27
  29. 29. Hypothetical Case: Market-influenced &outcome-based approach for the Sundarbans 100% Market 100% Charity Outcome-based Input-based © 2012 Proprietary. 28 28
  30. 30. Summary of Conclusions Tourism is a valuable industry; it also relies heavily on intact biodiversity & ecosystem services As tourism continues to expand in response to consumer demand trends, it puts more pressure on natural resources and is increasingly susceptible to environmental risk Leveraging market-influenced and outcome-based approaches for environmental protection can help minimize risk carried by tourism businesses and destinations, and incentivize place- based environmental stewardship 29 © 2012 Proprietary. 29
  31. 31. Thank You
  32. 32. Questions and Answers C. Josh Donlan, PhD Founder and Director Advanced Conservation Strategies www.advancedconservation.org jdonlan@advancedconservation.org Christina Heyniger Strategic Accounts & Sustainable Tourism Vital Wave Consulting www.vitalwaveconsulting.com christina.heyniger@vitalwave.com © 2012 Proprietary. 31

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