Tmpe 221 Weeks 10-17

TMPE 221 – ECOTOURISM MANAGEMENT
Chapter 7
Visitor Management
Lesson Outcomes
At the end of this chapter, you should be able to:
• Define "visitor management”.

• Explain the principles of visitor management.
• Explain the different frameworks for formulating visitor management techniques.
• Enumerate the "hard" and "soft" tools for visitor management; and
• Know how to behave responsibly and ethically in ecotourism sites.
Visitor management is a key component in managing an ecotourism site. Visitor

management involves managing the type of visitors that can be admitted into an
ecotourism site, volume of visitors, density and spread of visitors within the site, frequency
.of visits, seasonality, and the behavior of tourists. These factors have implications on the
kind of facilities to be put on the site, communication and interpretation strategies, signage,
staffing, the degree of tourism impact, the quality of the tourism experience, and economic
viability. Visitor number and their actions in an ecotourism site also affect other visitor's
perceived satisfaction. This chapter focuses on the various aspects and tools for visitor
management.
Definition of Visitor Management and Its Principles

Visitor management is defined as "an administrative action oriented toward
maintaining the quality of park resources and visitor experiences" (Candrea & lspas, 2009
in Antonio & Fadirugao, 2016). Visitor management can be described as the techniques
and procedures adopted by the management staff of an ecotourism site to minimize
negative impacts of visitation, protect visitors from natural and man-made dangers, and
maximize visitor leisure satisfaction and education in the site.
There are nine principles that should guide visitor management efforts (Eagles,
McCool; & Haynes, 2002). These are:
(1) The appropriateness of management tools with the objectives,
(2) The desirability of diversity in resource and social conditions in protected areas,
(3) The need to direct and influence human-induced change,
(4) The inevitability of impacts on resource and social conditions as a result of
human use,
(5) The temporary and spatially discontinuous nature of impacts,
(6) The multiplicity of variables that influence the use-impact relationship,
(7) The realization that many management problems are not due to the number of
users,
(8) Limiting use as being just one of many management options, and
(9) The need to separate technical decisions from value judgments in decision-
making.
PREPARED BY: KAYCEE H. NUESTRO - Instructor 1

Visitor Management Frameworks

There are a number of frameworks that can be used in formulating visitor
management plans. They are the following:
➢ Carrying Capacity (CC) is probably the most popular framework for establishing
limits to level of visitation in ecotourism sites. Carrying capacity assumes that an
area can accommodate a certain maximum number of people without degrading
the place. The simplest method for calculating carrying capacity is through
Boulton's mathematical model, where the carrying capacity is determined by
dividing the area used by tourists by the average individual standard (average
space needed per person) of 2 square meters (CC = area used by tourists in square
meters / 2 square meters).
o For example, a park measuring 30,000 square meters will have a carrying
capacity of 15,000. After that, the carrying capacity is multiplied by the
rotation coefficient (RC) or the number of hours the site is open per day
divided by the average number of hours per visit (RC = number of hours open
daily / average number of hours per visit).
o For example, if the site is open for 8 hours each day, and the average time
spent by a tourist on the site is 4 hours, then RC is 2. Potential carrying
capacity (PCC) is the product of CC and RC. Thus, using the previous
example, the PCC is 30,000 (15,000 x 2).
➢ Limits of Acceptable Change (LAC) process requires making decisions on what
kind of conditions in an ecotourism site are acceptable and coming up with actions
to achieve those conditions (adapted from the explanation of Stankey, Cole, Lucas,
Petersen, and Frissell, 1985).
o According to Stankey et al. (1985), there are nine steps involved in the
LAC process:
▪ (1) identify area issues and concerns,
▪ (2) define and describe opportunity classes,
▪ (3) select indicators of resource and social conditions,
▪ (4) inventory existing resource and social conditions,
▪ (5) specify standards for resource and social conditions for each
opportunity class,
▪ (6) identify alternative opportunity class allocations reflecting area
issues and concerns and existing resource and social conditions,
▪ (7) identify management actions for each alternative,
▪ (8) evaluate and select a preferred alternative, and
▪ (9) Implement actions and monitor conditions.
o This approach is best applied to wilderness areas but could also be used
in historic and tourism areas (UNEP, n.d.).
➢ Visitor Impact Management (VIM) Framework involves identifying the negative
visitor impacts on an ecotourism site and devising programs to minimize the
impacts before expensive restoration and rehabilitation become necessary (Farell
& Marion, 2002).
o According to Farell and Marion (2002), the advantages of VIM include
simplicity, flexibility, cost effectiveness, timeliness, and inclusion of input
from stakeholders and local residents. Disadvantages include diminished
objectivity and cultural sensitivity issues.
o The VIM process is very similar to LAC. The steps in the VIM framework
are:
▪ (1) review and identification of issues,
▪ (2) selection of indicators,
▪ (3) resources inventory,
▪ (4) specification of standards for indicators,
▪ (5) implementation through an iterative process of monitoring,

▪ (6) comparison of impacts with standards, and

▪ (7) identification of alternative management options if standards are
not met
(http://www.utok.cz/sites/default/files/data/USERS/u28NlM.pdf).
➢ Visitor Experience and Resource Protection is "a planning and management
framework that focuses on visitor use impacts on the visitor experience and the
park resources. These impacts are primarily attributable to visitor behavior, use
levels, types of use, timing of use, and location of use". (US National Parks
Service, 1997).
o The process involves nine steps:
▪ (1) assembling an interdisciplinary project team;
▪ (2) developing a public involvement strategy;
▪ (3) developing statements of (park) purpose, significance, and
primary interpretive themes and identification of planning
constraints; (4) analyzing resources and existing visitor use;
▪ (5) describing the potential range of visitor experiences and
resource conditions;
▪ (6) allocating the potential zones to specific locations (prescriptive
management zoning);
▪ (7) selecting indicators and specifying standards for each zone and
developing a monitoring plan;
▪ (8) monitoring resource and social indicators; and
▪ (9) Taking management action (US National Park Service, 1997).
➢ Visitor Activity Management Process (VAMP) aims to determine the kinds of
activities that are suitable in a park and the strategies in making the public
understand, appreciate, and enjoy the park's natural and cultural heritage
(Graham, Nielsen, & Payne, 1988).
o Developed in Canada, VAMP is an integral part of the country's Park
Management Planning Process. VAMP is problem-and-issue rather than
data-driven. VAMP's primary purpose is for management to arrive at good
decisions by providing data that include experiential and informal
knowledge by the organization and resident populations, and customary
users of a region.
o It combines social science and ecological data and places strong emphasis
on the human element in park and protected area designation, planning,
and management. The VAMP model consists of six steps:
▪ (1) objective(s),
▪ (2) terms of reference,
▪ (3) database analysis,
▪ (4) concept/options,
▪ (5) recommendations, and
▪ (6) approval and implementation.
o VAMP is also used to profile park visitors and their motivations in order to
determine appropriate segments for a park and its surrounding region.
VAMP is concerned with the socioeconomic advantages and
disadvantages of the mix of opportunities, activities, services, and facilities
in the park and the region.
o For example, a particular activity like Nordic skiing is analyzed by type, such as recreational
use, for fitness or sport, competition, and backcountry skiing. Then, the specific types of
Nordic skiing activities are segmented by demographic characteristics, market share, the
setting or where they occur, the requirements in terms of access, facilities, and services, as
well as other government and private entities involved. Finally, a determination of the
appropriateness of the activity is determined (yes, doubtful, or no), by assessing the current
conditions of the site and the cost of providing the additional access, facilities, and services
to meet the requirements of each type of Nordic skiing, taking into consideration its
respective market share.
➢ Recreation Opportunity Spectrum (ROS) (Clark & Stanley, 1979) is a framework
for identifying the various opportunities for recreation. It is particularly useful for:
▪ (1) allocating and planning recreational resources,

▪ (2) inventorying recreational resources,

▪ (3) estimating the consequences of management decisions on
recreational opportunities, and
▪ (4) matching experiences visitors desire with available
opportunities.
o ROS involves the following steps:
▪ (1) inventory of recreational opportunities,
▪ (2) determining the kind of experiences that are desired by visitors,
and
▪ (3) matching the recreational opportunities with the desired
experiences.
o The inventory of opportunities should take note of specific situational
attributes, such as access, facilities, and services, among others. The
inventory should produce information about the relative availability of
different settings in an area. This information can serve as basis for
management decisions on whether to create or reduce certain types of
opportunities or settings and in what specific spots they should be done.
Inventories should cover an entire region and not just a particular political
boundary. A comprehensive inventory conducted at a regional scale and
involving public and private suppliers would provide information on the
profile of existing and potential opportunities, a catalog of administrative
responsibilities. or networks, and the spatial relationships among various
opportunities for recreation, which could suggest potential conflicts or
complementary relationships.
o The spectrum of recreation opportunity settings proposed by Clark and
Stanley (1979) ranges from primitive, semi-primitive, semi-modern, and
modern. This classification is based on six factors:
▪ (1) access,
▪ (2) non-recreational resource uses,
▪ (3) on-site management or modification,
▪ (4) social interaction,
▪ (5) acceptability of impacts, and
▪ (6) acceptable regimentation.
o Access elements include the types of access (e.g., roads, trails, and cross-
country travel), and the means of conveyance allowed (e.g., cars, all-terrain
vehicles, horses, and feet).
o On-site management elements include extent of modifications,
apparentness of modifications, complexity of modifications, and facilities.
o Social interaction ranges from zero human contact to excessive human
interaction. Acceptability of impacts considers both the magnitude and
importance of such impacts.
o Acceptability of regimentation refers to the techniques used to control
visitors' activities ranging from zero to excessive rules and regulations.
➢ Tourism Optimization Management Model is basically a framework for
managing a tourism destination using sustainable tourism indicators. The model
identifies strategic imperatives such as policies and emerging issues. It considers
community values, product characteristics, growth patterns, market trends and
opportunities, positioning and branding, and alternative scenarios for tourism in a
region. It also identifies optimum conditions, indicators, acceptable ranges,
monitoring techniques, benchmarks, annual performance, and predicted
performance. In case of poor performance, the cause-and-effect relationships are
analyzed to determine the results that require a tourism response. Management
options are then considered to address such poor performance.
Visitor Management Tools

- Visitor management tools can be grouped into two general categories: hard
and soft. Hard approaches emphasize physical, regulatory, and economic

management. These include the construction of facilities or infrastructure to

control the movement of visitors in a park, enforcement of laws by fines and
imprisonment, and pricing mechanisms. Soft approaches focus on education
and interpretation. Mason criticizes these approaches as assuming that
visitors will not behave properly in a site "until proven innocent" and overlooks
the importance of visitor experience in visitor management (Mason, 2005).
- Leung, Spenceley, Hvenegaard, and Buckley (2014) identified three direct
visitor management practices:
o (1) limitations on visitor use,
o (2) rules and regulations, and
o (3) Zoning.
- Limiting visitor use can be done by using reservation systems, lotteries,
queuing, pricing, and merit.
- A reservation system requires potential visitors to reserve a space or
obtain permit ahead of their visit.
- A lottery allocates opportunities or permits on a random basis.
- A queuing system (first-come, first-served) involves waiting for
available spaces or permits.
- A pricing system requires visitors to pay a fee for a permit. This practice
excludes people who cannot or are unwilling to pay. Pricing mechanisms
may have differential pricing for locals and outside visitors, seasonal
pricing, and premium pricing. These mechanisms address different
concerns: equity, evening out seasonal fluctuations, and demarcating or
discouraging visitation to enable a damaged or vulnerable site to
recover.
- A merit system requires potential visitors to "earn" their permit by
demonstrating their knowledge or skill. Leung et al. (2014) also
emphasized that fairness is the critical element to these practices.
- There should be no palakasan system when it comes to queuing.
- Rules and regulations according to Leung et al. (2014) include: group size
limits, assigning campsites and/or travel itineraries, area closures, length of
stay limitations, and prohibitions on activities that create substantive impacts
on resource and quality of experience. Some examples of detrimental
activities committed by tourists in an ecotourism site are picking of flowers,
building fires, leaving fires unextinguished, smoking and throwing away
cigarette butts into the woods, not wearing proper outdoor gear (e.g., slippers
instead of hiking boots), and diving in waters of unknown depth.
- Limiting group size is also imposed not only to make sure that everyone in a
group is able to hear the tour guide, but also to give chance to other guides
to make money.
o For example, a group of 18 people will be split into two with maximum
of ten persons per group. So instead of just one tour guide being able
to earn; two tour guides at the least can make money.
- Zoning is assigning certain activities to selected areas, restricting activities
from areas, and separating conflicting uses of an area. Zoning can also be
time-determined. It can be used to create different types of tourism
opportunities. The basic concept of zoning is at the heart of the Recreation
Opportunity Spectrum (ROS), a concept and framework that is widely used
in protected area management.
- Establishing ecotourism zones involves ten steps according to Calanog et al.
(2014):
1. If within a protected area (PA), refer to the General Management Plan
(GMP) for determining where tourism activities are allowed. If outside a
PA, refer to the municipality's Comprehensive Land Use Plan (CLUP),
tourism master plan, business district, and transport bays, among
others.

2. Obtain a site base map, which will be used for planning and placing
specific attractions, facilities, and infrastructure.
3. Locate sensitive or environmentally fragile sites.
4. Identify the kind of experience or situation the visitors would wish to have
at the site.
5. Compare the proposed location of tourist attractions and infrastructure
with the location of environmentally sensitive sites and present zoning
system.
6. Determine the final location of visitor infrastructure and attractions
through site visits verification and consultations with local communities
and other stakeholders.
7. Prepare a preliminary zoning system that incorporates
recommendations for visitor use zones.
8. Compare the proposed zoning system with the pre-existing system to
determine if changes are necessary.
9. Develop the final zoning system where each zone is described following
the prescribed zoning format.
10. Set the rules and regulations that will be applied in the zones.
- The zoning format should contain the following information: name of the zone,
general objectives, zone description, zone boundaries, management rules,
regulations, and policies.
o The name of the zone describes the type of activity permitted in the zone
such intensive use, religious zone, or wilderness.
o The general objectives set expectations and list the management
objectives.
o Zone description summarizes site attributes (biophysical, social, and
administrative).
o Zone boundaries specify the location and the geographical bearings of
the site.
o Management rules, regulations, and policies list the requirements for
entering the site and the "do's and don'ts" in the site, such as permits,
campfires, group size, etc. (Calanog et al.,2014).
Tools for Influencing Visitor Behavior

- Influencing visitor behavior may be done through two types of law enforcement:
soft and hard (Leung et al., 2014).
o Soft enforcement involves park design, signage, interpretation, or mere
presence of a security officer. Part of soft enforcement involves informing
the public of the relevant rules and explaining why such rules exist, as well
as the penalty for non-compliance.
o Hard enforcement involves the issuance of citations, fines, and arrests.
The choice of enforcement techniques used in a park should strike a
balance between visitor safety, compliance to rules, and visitor enjoyment.
That choice is dependent on the cultural context, gravity of environmental
concerns, and crime situation.
- In a place where people are disciplined, soft enforcement may be enough and
security guards without guns may be sufficient.
- Despite park managements' intention to provide visitor enjoyment and
experience, visitor manners with "depreciative behaviors" are still prevalent.
- Depreciative behaviors are defined as deeds that "degrade park resources or
experiences of other visitors" (National Park Service, 2016 in Antonio & Fadirugao,
2016).
- Littering, improper disposal of waste, damaging trees and rocks, feeding of wildlife,
vandalism, and the like are examples of these inappropriate behaviors. It is
important to take these acts seriously as it may result in resource damage or
destruction, alter behavior of wildlife, or pose public health risks within an area
(National Park Service, 2016).

Measures to Provide Security and Safety

- Security and safety are paramount considerations in planning trips to a
destination. Places where there is insurgency, high crime rate, and are prone to
natural calamities will not be able to attract many visitors.
- In an ecotourism site, safety can be enhanced by employing security personnel;
orienting visitors about the potential hazards in the place and emergency
procedures; requiring visitors to present valid IDs; wearing proper attire and
equipment for certain activities like caving and rappelling; prohibiting the bringing
of dangerous materials like guns, drugs, and alcohol inside the ecotourism
premises; and having warning signs. It is also important to have properly trained
tour guides and staff who can perform first aid to visitors when necessary.
- Security cameras may also be installed all over the site (Calanog et al., 2012).
- Various ways of minimizing accidents and emergencies in the park also include
releasing advisories during rainy days, assigning people to handle crowd control
during peak season, providing emergency equipment on stand-by, and assigning
trained people in cases of emergencies (Antonio & Fadirugao, 2016).
Minimizing Visitor Impacts

There are several strategies for minimizing the negative impacts of visitors'
activities on a site. These strategies could be:
(1) restricting the number of visitors entering the site,
(2) putting a maximum number of people per group of tourists together,
(3) preassigning sites to specific groups of visitors to distribute their impacts,
(4) area closures during bird periods,
(5) limiting the length Of stay on the site,
(6) putting barriers to restrict access to danger zones,
(7) prohibiting certain activities like hunting or making fire, and
(8) restricting vehicle access to the site and concentrating facilities in a specific
part of the site (Calanog et al., 2012).
In addition, it is important to note that enabling conditions must be present to
encourage all stakeholders to cooperate in minimizing the negative impacts of visitation.
For example, there should be adequate and properly placed trash bins in an ecotourism site to
encourage tourists to observe proper waste disposal, toilets must be sufficient to prevent tourists
from relieving themselves somewhere else, and there should be ample water supply to clean the
facilities. Tourists tend to show more respect to a facility when it is clean. On the other hand, dirty
places get dirtier as tourists are likely to be careless in disposing their garbage or not flushing toilets
when the place is not properly maintained.
- Limiting the number of visitors to a vulnerable site like the Puerto Princesa
Underground River (PPUR) is being done through reservation or booking system,
registration, charging high entrance fees; and controlling transportation to the site.
- At the PPUR, vehicles cannot go directly to the cave; passengers have to alight at
Sabang Port to take the boats that will ferry them to the cave. Because of limited
carrying capacity of the ferryboats that bring tourists inside the cave, passengers
need to wait to take their turns, effectively controlling the number of tourists that
are inside the cave at a given time. Moreover, the landing site, visitor center, photo
booth, toilets, and boat station are located adjacent to each other at the PPUR.
- To minimize trampling on vegetation, walking paths can be covered with some
hard materials like gravel, or tiles, or ground tire rubber like in South Korea.
Boardwalks, viewing platforms, and hides may also be built in specific areas to
preclude encounters between humans and wild animals.

- Other methods involve the enforcement of penalties like fines for violation of park
rules such as hunting ban or prohibition on feeding animals.
- The impact exerted by tourists on an ecotourism site can also be controlled by soft
measures, such as information, education, and communication (IEC) strategies.
These can be provided through seminars in visitor information center at the site
entrance trained and giving away brochures, maps, kiosks, and signs, among
others. Such measures not only educate tourists, but also influence them to
behave in a responsible manner.
- A very important feature of IEC is interpretation, which is the presentation of
data and facts in a manner that makes a connection with the tourists.
- Visitors get to appreciate the site more when a trained tour guide is able to reveal
"secrets" about the site that one will not be able to encounter simply by reading
written materials.
- To compensate for the negative effect, visitors may also be asked or encouraged
to plant mangrove seedlings or donate to environmental conservation funds.
- Tourists must also be reminded to behave ethically and respect local culture; they
must not engage in sex tourism of any form and must not corrupt the locals by
giving excessive tips (Calanog et al., 2012).
- Some examples of ethical practices include not leaving bottles, packaging
materials, and leftover food at the site; not plucking flowers; not feeding wild
animals; and not being noisy. Leaving food behind or feeding wild animals can
condition them to depend on human beings for food. This can make them lose their
survival skills of hunting or food gathering; or even make them attack people for
food: In Oslob, Cebu where 97% of the tourists violate the two-meter minimum
distance from the whale sharks, and feed the whale sharks, it was found that the
animals easily learn to associate boats with food rewards, and whale sharks which
have been at Oslob several times were more likely to show "anticipatory behavior"
and arrive at the site on average five minutes after the arrival of feeder boats
(Schleimer et al., 2015).
- The same is true of Macaque monkeys in Subic which have been observed to
come near people and snatch anything that looks like food packaging or
containers. Another bad practice is disturbing fruit bats by throwing stones at them
while hanging upside down on tree branches or banging the side of the boat with
oar to make bats come out of a cave. These disturb the circadian rhythm of these
nocturnal animals.
- Safety-oriented behavior include not drinking unpurified water, rehydrating
regularly and wearing hats to avoid direct exposure to the sun and prevent heat
stroke, avoiding hypothermia by wearing appropriate clothes, staying with one's
group to avoid getting lost, using insect repellent and wearing protective clothing
in areas where poisonous plants exist, and washing clothes when you leave the
trail.
- Visitors must also prepare for their adventure by knowing the weather, reading
about the site, and studying its trail conditions (Calanog et al., 2012).
Responsible and Ethical Behavior in Ecotourism Sites

- Schools, government, resorts, tour operators, and other tourism stakeholders have
a responsibility to educate or remind tourists to behave/dress appropriately in
places they will be visiting, to seek out as much information before traveling to a
destination, pay fair price for goods and services in the destination, to travel light
to minimize the need for big transport vehicles, to use rechargeable batteries and
reusable water bottles, and to use biodegradable soaps and shampoos. They
should also remind visitors that when taking photos, ask for permission first; do not
use flash with animals who are light sensitive (nocturnal animals); and do not give
money to children as this encourages begging (The Educational Travel
Community, 2006).
- Moreover, stakeholders themselves have a responsibility to conduct business in
an ethical manner (TETC, 2006). They should:

• obtain the consent of local communities before they establish their business;
• give back a fair share of their profits to the local community, in cash and
social
• projects like community projects in health, education, etc.;
• contribute to the nature conservation of biodiversity;
• minimize consumption of non-renewable resources such as fossil fuel;
• respect traditional culture and social structures; and
• Limit group size to minimize cultural/environmental impacts.
Factors Influencing Environmental Behavior

A person's behavior reflects his or her knowledge, attitude, and values. Several
studies cited by Chiu, Lee, and Chen (2014) positively correlated environmentally
responsible behavior to factors like sense of responsibility, place attachment, travel
motivation, tourism satisfaction, perceived value of the place (money paid vs. benefits),
and activity involvement.
In an ecotourism setting, a person can display his environmental and social
concern by not littering or keeping his trash and disposing of it properly in trash bins.

Chapter 8
Community Participation in Ecotourism
Lesson Outcomes
• explain the importance of community participation;

• explain stakeholder theory;
• identify the major stakeholder groups in ecotourism;
• provide examples of the "stakes" in ecotourism;
• cite the benefits of stakeholder participation;
• explain why stakeholders do not participate;
• enumerate the prerequisites to genuine participation;
• provide examples of participatory planning technique and
• Explain the steps in participatory planning.
One of the principles of ecotourism is community participation. Community, when
broadly defined, encompasses several stakeholder groups: government agencies,
conservation groups, non-governmental organizations, developers, workers, local
communities, tourists, indigenous people, and many others. Each group tries to advance
its own interest, which could be profit, political power, and security of tenure,
environmental protection, cultural preservation, or satisfaction. Through the process of
community participation, planners and developers will be able to uncover what issues are
important to each of the stakeholder groups and use this as a basis for addressing such
issues. Creating an equitable distribution of the outcomes of ecotourism development in
terms of benefits and costs is another potential outcome of the participation process.
The Importance of Community Participation

- Community participation is one of the principles of sustainable development.
- Community empowerment is one of the key approaches to achieving
sustainability (UN Agenda 21, 1992).
- According to UN Agenda 21, a community-driven approach to sustainability would
involve "empowering women through full participation in decision-making,
respecting the cultural integrity and the rights of indigenous people and their
communities, promoting or establishing grass-roots mechanisms to allow for the
sharing of experience and knowledge between communities, giving communities
a large measure of participation in the sustainable management and protection of
the local natural resources in order to enhance their productive capacity, and
establishing a network of community-based learning centers for capacity-building
and sustainable development." The word participation is mentioned 139 times in
the document, underscoring its importance in achieving all aspects of
development.
- As a "form of sustainable tourism," community participation is also integral to
crafting ecotourism programs.
- Recalling Chapter 1, the term "community participation" is embedded in the
Philippine definition of ecotourism: "Ecotourism refers to a form of sustainable
tourism within a natural and cultural heritage area where community participation,
protection and management of natural resources, culture and indigenous
knowledge and practices, environmental education and ethics as well as economic
benefits are fostered and pursued for the enrichment of host communities and
satisfaction of visitors."

- The stated principles of ecotourism involve at least two actors or stakeholders;

creating positive experiences for both visitors and hosts; financial benefits for local
people and private industry; recognition of the rights and beliefs of indigenous
people; support for human rights and democratic movement; partnership between
specialized tour operators and service providers at the destinations; promotion of
well-being and community development; community participation in management
and ethics; inclusion of local community and indigenous people in development;
and gender equality.
- Community participation in tourism development is important for several reasons.
It is a vital element in the implementation of tourism plans and strategies; increases
tourist satisfaction; helps tourism professionals design better tourism plans;
contributes & the equitable distribution of costs and benefits among community
members; and helps satisfy locally identified need (Toson & Timothy, 2003 in
Bhartiya & Masoud, 2015). International agreements become part of Philippine
laws. As a UN member country, the Philippines is therefore obligated to conduct
public participation as part of policy formation process. This means that no new
laws or plans could be passed without public presentations and consultation with
relevant stakeholders.
- According to Pedersen (2002), the process of getting stakeholders involved in
planning and managing ecotourism offers several advantages. It saves time and
money in the long-term by avoiding the project being blocked by groups that were
disgruntled or ignored. One of the most frustrating' things that could happen is to
finish an ecotourism plan document but fail to get public approval because some
politicians felt bad that they had not been consulted. "Why is my town not included in
that plan?" is something some legislators sometimes ask the planning team. If the team
cannot answer that question sufficiently then they may have to go back to the drawing
boards, which will take additional time and expenses. Local stakeholders, such as
residents, politicians, and tourism workers provide rich inputs in terms of knowledge of local
political dynamics, local attractions, potential tourism resources, local development plans,
previous ecotourism development efforts, history of the site, and potential security issues,
among others. Access to such valuable information eliminates the need for research time
and helps build best practices and local knowledge.
- The term indigenous knowledge is broadly defined as "the knowledge that an
indigenous (local) community accumulates over generations of living in a particular
environment. It encompasses all forms of knowledge—technologies, know-how,
skills, practice, and beliefs—that enable the Community to achieve stability in
relating to their environment." Indigenous knowledge is also called traditional
knowledge, indigenous technical knowledge (ITK), local knowledge (LK), and
indigenous knowledge system (IKS) (UNEP, 2012). Indigenous knowledge
Covers:
o (1) information, (e.g., trees and plants that grow well together),
o (2) practices and technologies (e.g., terracing techniques, medicinal plants,
soil, and water conservation practices),
o (3) beliefs (e.g., rituals that regulate the access and pattern of water
distribution),
o (4) tools (agricultural tools),
o (5) Experimentation (e.g., integration of new local culture into existing
tourism activities),
o (6) Human resources (e.g., kinship groups, and labor sharing groups),
o (7) biological (e.g., local animal breeds), and
o (8) Materials (e.g., stone walls in building houses and irrigation canals).
- Planners or developers need to defer to indigenous knowledge for several
reasons. Indigenous knowledge "may be far better than introduced technologies
brought by outside development agents, experts, or consultants. Indigenous
knowledge complements new knowledge and technologies. Indigenous
knowledge not only strengthens the indigenous people's participation and
empowerment process but also ensures viability and sustainability of a project and
helps identify cost-effective and appropriate approaches." (FAO and IIRR, 1995)

- Consulting with stakeholders can reveal potential legal issues, such as land claims
and prohibitions on certain activities as dictated by legal edicts and zoning
regulations. Looking into an LGU's comprehensive land use plan will provide a
general idea of the proposed development plans several years into the future.
During public consultations, ecotourism planners may be able to observe the
dynamics among participants and evaluate the relative positions of the various
stakeholder groups on an issue. In the process, ecotourism planners and
developers will be able to formulate the appropriate strategies to best generate
maximum participation from the audience. Stakeholders differ in their levels of
commitment, knowledge, power, skills, and financial capacity. Knowing those
differences is a good starting point for devising appropriate participation strategies
for each sector.
- Community participation instills a sense of empowerment. Scheyvens (in Gallardo,
n.d.) cites four types of empowerment that are the outcomes of community
involvement in ecotourism development:
o (1) economic empowerment, cash earned is shared among households in
the community.
o (2) psychological empowerment from getting outside recognition of the
uniqueness and value of their culture, their natural resources, and their
traditional knowledge lead to increased confidence to seek out further
education and training opportunities that ultimately bring about better
status;
o (3) social empowerment, which is a result of improved community cohesion
due to successful ecotourism venture; and
o (4) political empowerment felt by the residents when agencies initiating or
implementing ecotourism ventures seek out their opinions in the decision-
making bodies.
Stakeholder Theory
- According to Freeman's Stakeholder Theory (2001), it is essential for
management to consider the interests of all stakeholders and maintain a balance
among these interests. If one stakeholder benefits disproportionately or at the
expense of other stakeholders, it puts the viability of a business at risk.
- Stakeholders are in contractual relationship to create value for each other. This
relationship should be symbiotic— that is, everyone should benefit from such a
relationship.
- Freeman lists six principles for genuine participation to take place:
1. Principle of entry and exit. Stakeholders must be able to enter, exit, or
renegotiate contract. Stakeholders in ecotourism must have the option to be
part of it, opt out of it, and/or to renegotiate if they want to continue becoming
part of it.
2. Principle of governance. The procedure for changing the rules of the game
must be agreed upon by unanimous consent.
3. Principle of externalities. If the contract between stakeholders A and B
imposes a cost on C, then C should have the option to become a party to the
contract, to have a say in how ecotourism should be conducted.
4. Principle of contracting costs. All parties must share the cost of contracting.
5. Agency principle. Any agent must serve the interests of all stakeholders and
not just one stakeholder group. For example, the government should address
the concerns of all stakeholders and not just promote the interest of the LGU,
property owners, or tourists.
6. Principle of limited immortality. The corporation must be managed as if it
can continue to serve the interests of all stakeholders through time in the
assumption that the continued survival of ecotourism is in the interest of the
stakeholders.
Stakeholders

- Stakeholders are "groups or individuals who benefit from or are harmed by, and
whose rights are violated by or respected by ecotourism" (adapted from Freeman,
2001). There are two definitions of stakeholder. The narrow definition includes only
groups or individuals who are vital to the survival and success of (ecotourism
development). The wide definition includes individuals or groups who can affect or
is affected by (ecotourism development).
- The United Nations (1992) recognizes the developmental roles of these major
groups:
o (1) women,
o (2) children and youth,
o (3) indigenous people and their communities,
o (4) non-governmental organizations,
o (5) local (government) authorities,
o (6) workers and their trade unions,
o (7) business and industry, and
o (8) Scientific and technological community [which includes the academe].
- A more specific listing of stakeholders in ecotourism includes residents living within
or adjacent to the ecotourism site, tourism-related workers, non-tourism workers
in the destination who indirectly benefit from tourism, service providers,
accommodation establishments, souvenir shop owners, food and beverage
outlets, landowners, entrepreneurs, investors, financial ' institutions, local police,
food suppliers, indigenous people who have control over ancestral domains;
religious groups, non-governmental organizations, environmental agencies, public
utility' companies, tourists the general public, and many others. Tourism students
like you are also stakeholders in ecotourism.
- Some groups or entities may be considered as "excluded stakeholders." An
anthropocentric view of development would assume that humans are the only
stakeholders. However, a more inclusive view of development would consider
plants and animals as stakeholders because these elements could also be affected
by development. However, plants and animals cannot protect themselves from the
potential harm from ecotourism development. As such, (human) conservationists
take it upon themselves to protect the non-human life forms. Other human
stakeholders, such as indigenous peoples, the poor, youth, and children, also tend
to be weak and less assertive. These groups also need their rights and interests
to be advanced by another party, such as by non-governmental organizations.
Stakes in Ecotourism
- What are the "stakes" (interests or expectations) of the various stakeholders in
ecotourism? For a town mayor, a successful ecotourism project will be a credit to
him. This will boost his or her popularity, which could translate into winning the
next elections. The local government unit is also interested in ecotourism for the
taxes it could generate to create projects that will make its constituents perceive
the LGU as being effective. Positive perception will mean political support. For
tourism enterprises, ecotourism can mean profits; for conservation groups, it can
generate revenue for nature conservation; for workers, it means jobs and income;
for indigenous people, their ancestral rights are recognized and they get a fair
share of the proceeds. Residents will be interested in how ecotourism will affect
the peace and order situation in their area, cause traffic congestion, and increase
price of commodities during peak season. Cultural agencies will be concerned on
how local crafts, dances, and music can be sustained by ecotourism. Tourists will
look forward to deriving satisfactory experiences, cultural exposure, and new
learning from visiting an ecotourism destination.
- Stakeholder participation processes such as elections, representations in tourism
councils, and public consultations enable various stakeholder groups to achieve
their own interests while enabling other groups to satisfy their own.
Challenges in Getting Stakeholder Participation

- If stakeholder participation yields several benefits, then why is it sometimes difficult

to get people involved? This difficulty stems from several causes, which include:
o (1) the perception that one is inferior or superior to others, which influences
their attitudes and approaches to participation;
o (2) superficial nature of participation experienced by some stakeholder;
o (3) legal provisions;
o (4) culturally defined roles of men and women that affect participation
levels;
o (5) fatigue from participating in consultations that do not translate to actual
benefits;
o (6) incapacity to participate due to lack of skills and financial capital;
o (7) apathy from community members; and
o (8) lack of confidence in their representatives.
- There is power differential among stakeholder groups—they are not equal in power
and status. The difference in power may be accounted for by wealth, political
positions, educational attainment, race, ethnicity, gender, or even religion. There
is a positive correlation among the first three factors. However, sometimes one's
relative influence in society is dictated by things over which one has no control
over like skin color, sex, or the religion one has been born into. For example,
indigenous people often lack education, skills, and capital. These factors often limit
their social mobility.
- The cycle of poverty is perpetuated, resulting in their self-image being damaged,
making them timid in expressing their thoughts and feelings in public meetings.
- Community leaders may play a more dominant role and may sometimes feel that
"open discussion threatens their power and control." These dominant people may
intimidate less assertive groups from voicing their thoughts. The result is that the
outcomes of an ecotourism project will be more beneficial to the more powerful
groups.
- Sometimes the nature of the consultation process may be the reason why
democratic participation is thwarted. Arnstein (1969) distinguished eight types of
participation. The lowest rungs, known as manipulation and therapy, represent a
lack of power on the part of the local community. The next rungs, informing,
consultation, and placation, are categorized as tokenism. The highest rungs,
partnership, delegated power, and citizen control, comprise the highest degree of
participation known as citizen power. The lower the rung, the lower the power of
the stakeholder in making their voices heard and recognized. Indigenous people,
the poor, low-income workers often find themselves voiceless or being accorded
only token of participation.
- Other limiting factors to full participation are legal restrictions and cultural practices.
In certain places, laws on indigenous people's rights over ancestral lands will
prohibit development by non-members of the indigenous people's group. Cultural
traditions such as women having to take care of children and manage their
households will also limit women to home-based ecotourism-related projects such
as running a homestay.
- Sometimes the lackluster support for public consultation is a result of fatigue from
attending too many consultation meetings where the final output turns out to be
the planning document itself rather than actual projects. Moreover, in some
regions, it may be dangerous to participate because of unstable peace and order
situation.
- Attending consultative meetings or training seminars may be physically
challenging due to lack of transportation service and infrastructure.
- People sometimes do not participate even if they have the chance because of non-
participation formed by habit resulting from historically being excluded from
dialogues, lack of business know-how and financial resources, and lack of
cooperation among the different sectors, which have resulted in the failure of past
community initiatives (Gallardo, n.d.). People may also lose interest in participating

when their designated representatives fail to advance the interest of their group
through neglect of duty or corruption.
Prerequisites to Genuine Participation

- Participation, per se, will not produce the desired benefits to all stakeholder groups
because of the reasons noted in the previous section. For participation to be
effective in advancing the interests of each stakeholder group, the following
conditions must be met.
- Primarily, participation by all sectors, including the vulnerable groups (e.g., women,
children and youth, indigenous people, and persons with disability), should be
observed. Democratic participation techniques that provide everyone, including
the vulnerable groups, the opportunity to be heard must be conducted. A section,
on these techniques is included in this chapter.
- Enabling factors for participation must exist. There should be stable conditions like
peace and order, religious freedom, and tolerance for racial diversity and gender
preferences to enable people to voice their positions on issues without fear of
reprisal or persecution. People should be able to go to meeting venues without
excessive physical efforts—they should not have to swim, walk several kilometers,
and climb mountains just to attend meetings. In some remote areas, people need
to do just that so that meetings or consultations have to start late and end early.
To address this problem, good infrastructure and reliable transport services must
be available.
- To boost their confidence, vulnerable sectors should be provided opportunities to
acquire skills and education, and access low-interest financial capital for micro or
small business ventures. Members of indigenous people should be regularly
encouraged to attend consultative meetings and their rights over their ancestral
lands should be given due recognition. For women, .the means for participation
should be tailored to their situations as housewives and mothers who need to be
at home. For example, they could be taught home-based livelihood projects such
as fruit preservation or souvenir handicraft making.
- People should not be forced to attend meetings whose purpose is unclear to them.
As Rutten (2004) observed in Africa, people tend to succeed better in ecotourism
projects when they pursue such projects on their own initiative rather than having
it imposed on them by outside agents and when they finance and build basic
facilities and infrastructure by themselves. Such involvement accords them greater
control and also allows them to get the benefits for themselves.
- Each stakeholder group must be headed by capable leaders who truly represent
their interests or those who will not sell out for their personal gain. The government
or other facilitating agencies must be capable of gathering the stakeholders and
guiding them to productive discussions and resolutions. The government should
be a step ahead in terms of tourism development. Unfortunately, in some cases,
the government fails to regulate tourism development in a way that prevents
negative impacts from happening. For example, private developers have built
homes, restaurants, and hotels along the Tagaytay Ridge, which have deprived
the public free view of the natural wonder. Massive condominiums and second
homes in the area vie for limited water supply and contributes to traffic congestion.
In some cases, the government itself through its elected officials becomes the
primary violator of development guidelines.
- Corruption undermines the spirit of participation when laws or plans are bent to
accommodate certain entities at the expense of other stakeholders. Many issues
in tourism occur not because of poor planning but because of bad implementation,
which are induced by corruption. Moreover, resolutions must be translated into
actual projects within a realistic time frame. Stakeholders may eventually lose
interest-in participating if nothing concrete comes out from such meetings,
seminars, and workshops, among others.
- Participation alone is not enough. Adopting an inappropriate development
framework will result in a form of tourism that is not sustainable. For example, in

Biri, Northern Samar, which is noted for its spectacular rock formations, if tourism
stakeholders want to follow the Boracay model of mass tourism and develop cafes
and karaokes on top of the rocks, then a sad outcome is not hard to imagine. Thus,
stakeholders, especially the ones in charge of planning, must also be equipped
with the understanding of sustainable tourism frameworks.
- Other issues in participation involve the question of who among the stakeholders
should have a bigger voice in the decision-making process. For example, should
not the residents of any tourism destination have the last say in how their place will
be developed? They suffer the most from negative impacts when tourism is
allowed to develop without control. Unfortunately; in most cases there is no reset
button once tourism development takes its course. Over time, residents will
experience a decreasing quality of life as natural attractions and Cultural traditions
are overrun by tourists. Many residents have no choice' but continue to live in these
places while tourists and business owners may opt to simply find other places to
"love to death.”
Effective Participation Techniques

A number of techniques may be utilized to encourage stakeholders to participate. Among
these are participatory environmental mapping technique, meetings, nominal group
technique, and workshop. Calanog et al. (2012) explained these techniques:
1. Participatory Environmental Mapping Technique. This involves asking local
people to draw a map of their village or barangay. Using materials provided by a
project officer, this technique often prompts comments on the accuracy of the
drawing. Because everyone is asked to participate, all information is visible to the
participants, making it possible for everyone to contribute to the discussion.
2. Meetings. These facilitate the cultivation 'of relationships with Stakeholder groups.
However, .to be productive, meetings must have the following characteristics:
(1) a clearly defined and agreed role and responsibility for each participant,
(2) a common focus on content,
(3) a common focus on process,
(4) someone to moderate so that discussion is open and balanced, and
(5) someone who will be responsible for protecting individuals from
personal attacks.
3. Nominal Group Technique. This involves forming discussion groups of eight to
ten people of different backgrounds. Participants are asked-to draw up lists of
issues about a project independent from other group members. Using a round-
robin procedure, participants group the issues and then vote on their priorities. The
format encourages full participation by preventing assertive people from
dominating, as is common with focus groups.
4. Workshop. This is another popular technique for getting people to discuss issues
and present recommendations on how to resolve such 'issues. This technique is
similar to the nominal group technique but may have fewer or larger number of
participants per group. The facilitator writes or presents guide questions on an
issue that the groups need to discuss among themselves and come up with their
group outputs. The groups take turns presenting their outputs in plenary either on
manila paper or as slide presentation. The facilitator synthesizes the outputs from
all groups.
Steps in Participatory Planning Process

- Formal ecotourism planning involves time in preparing the concept or rationale
for the project, securing funding for the planning project, and assembling 'the

project team. The project team will normally consist of people with experience,
expertise, and education on ecotourism.
- Former tourism officials, private tourism practitioners, and academics are usually
tapped to comprise an ecotourism planning team. The planning team will consist
of a team leader, the most senior in terms of experience and clout, and team
members with specializations in product development, gender, human resource
development, and marketing. There may also be a project manager who is tasked
to handle the logistics, payment of honoraria to the team, and arrange the
transportation and accommodation for the team. The project manager may be a
specialist in one area as well. In some cases, the project manager may be organic
to the relevant tourism agency or sourced externally just like the rest of the team.
- A government agency may enter into a contract directly with the team members or
employ the services of a consulting firm that procures the services of the team
members. Each team member will be presented with the Terms of Reference,
which spell out the remuneration, the duration of the project, and the deliverables
or expected output. Remuneration will usually cover the professional fee and per
diem or daily allowance. The professional fee may be paid in tranches depending
on the submissions of periodic' reports and final report, or in lump sum after the
submission of the corrected final report.
- Per diem is supposed to take care of daily meals and accommodation expenses.
Project duration may be for days or months depending on the scope.
- The most important step in the participatory planning process is to obtain the
cooperation of tourism stakeholders. The Department of Tourism performs its lead
role by coordinating with relevant agencies from the national to the local levels.
This includes paying courtesy calls to local elected officials in order to brief them
about the project, and solicit support from the local government unit. LGUs have
the mandate, manpower, money, and networks to mobilize a project. They can
facilitate access to comprehensive land use plans, tourism master plans, and other
pertinent documents that can inform the formulation of an ecotourism plan for their
respective area. Local counterpart agencies could sponsor venues for meetings
and seminar-workshops, organize tourism councils if these are non-existent yet,
or form advisory committees. They can arrange accommodations, meals, internal
transportation, familiarization tours, provide local resource people, and invite key
stakeholders to the consultative meetings and workshops. The police and the
military can also be requested to provide security for the project team.
- Calanog et al. (2012) described the key steps in participatory planning which needs
to involve all stakeholders:
1. Define the process that will be used for decision-making. This process
must be acceptable to all stakeholders based on the criteria of transparency,
appropriateness, and consensus.
2. Identify the problems, issues, and needs.
3. Collect information. This could be done through participatory rapid appraisal
(PRA), surveys, impact assessment studies, SWOT analysis, focus group
discussions, interviews, and observation, among others.
4. Analyze and resolve conflicts.
5. Identify alternative courses of action to define priorities and available
opportunities of the project, taking note of the costs and benefits of each option.
6. Negotiate to identify areas of agreement and build consensus. This could
be facilitated by a leader or community organizer.
7. Formulate decisions and agreements on objectives, strategies, conditions,
and responsibilities for implementing the decisions made, institutional
arrangements for executing the agreements, and the monitoring procedure for
the process and its results.
- The third step involves collecting primary and secondary data which could be best
done at the site. These bits of data provide insights into available community
resources and capability: community's demographic characteristics, history and
traditions, community leaders (formal and informal, elected and recognized

leaders), community culture (spoken and unspoken rules and traditions), existing
groups or organizations, physical resources (man-made and natural),
infrastructure, institutions, local economy, local government and political
dynamics, social structures, and the people's attitudes and values.
- Community-based ecotourism (CBE) projects will require five phases of
community mobilization.
o The first phase is preparation, where the community's opinion on
community-based tourism is assessed. This assessment should involve
tourism professionals, service providers, operators, and stakeholders who
can present various perspectives. While the objective of this assessment
is to harness support for the project (Calanog et al., 2012), true consultation
might result in a decision by the stakeholders to NOT support ecotourism
project. At any rate, if the CBE project is supported by the community,
Phase 1 will also include identifying funds and resources needed, and
where they could be sourced.
o Phase 2 involves "awareness raising" through the preparation and
dissemination of information, education, and communication (IEC)
materials on CBE with partner organizations and individuals.
o Phase 3 involves building a community coalition. or partnerships by
focusing on common needs and common vision for the CBE.
o Phase 4 involves formulating the action plan which identifies the specific
Steps, timeline, and responsible members for each step.
o Phase 5, the final phase, is monitoring and evaluating the community to
regularly measure progress by tracking achievements. Adjustments must
be made on activities that need improvement to meet the objectives of the
CBE project.

Chapter 9
Financing Ecotourism
Lesson Outcomes
• discuss the case for ecotourism investment.

• enumerate the different sources of income from ecotourism operations.
• identify alternative financing schemes for ecotourism ventures.
• discuss Philippine laws that are investment related.
• enumerate the various fiscal and non-fiscal incentives for
• ecotourism investments; and
• enumerate the requirements for enterprises applying for TEZ designation and
availment of investment incentives.
Developing a place of significant natural and cultural values to realize its ecotourism
potential requires investing in infrastructure, facilities, human resource development, and
many other inputs. Sourcing funds to finance initial development and fund subsequent
business operations are important considerations in ecotourism development and
management.
The Case for Ecotourism Investment

Several reasons justify investing in ecotourism. One is that it allows a local
government unit to realize income from natural or cultural resources.
- According to the World Tourism Organization, ecotourism generates $300 billion
in annual revenue (Rao, 2013). At the Monteverde Forest Reserve in Costa Rica,
it was estimated that each tourist spends about $1,150 (Rao, 2013). This income
is realized without degrading the resource due to extraction. Endangered species,
such as the mountain gorillas of Rwanda, become tourism magnets saving them
from poaching. In fact, flagship species of animals generate more money alive than
dead.
- The New York Times cites a study by Mark Meekan of the Australian Institute of
Marine Science which showed that a reef shark killed to make shark fin soup in
Palau makes US$108 compared to $1.9 million over the shark's lifetime when it is
kept alive for shark diving. According to the same study, shark diving contributes
more than $800 million annually to Bahamas, more than $100 million to Thailand,
and accounts for more than a quarter of travel-related spending for visitors to the
Great Barrier Reef in Australia.
- According to Phillips, Faulkner, and Solimar International (md.), whale
watching generated US$2.1 billion in 2008, with over 13 million participants in 119

countries. In the US in 2006, wildlife-related recreational activities like hunting,

fishing, and observing wildlife generated $122 billion.
- Ecotourism parks can generate income from many types of fees. Part of these
fees could be used by the local government unit to provide and maintain social
services, such as health, recreation, and building local roads, bridges, and ports.
- Annually, ecotourism in El Nido, Palawan contributes over P200 million while
conservation cost is only PIO million, making a clear case for developing
ecotourism in that area.
- According to Weaver (2005 in Rao, 2013), it was found that 95% of visitors (soft
ecotourists) in most parks in the United States confine themselves to 5% of the
park, leaving 95% of the park to 5% of the hard ecotourists. In effect, revenue from
the 5% of the area funds the operations of the remaining 95% of the park. As noted,
ecotourism can help raise money for nature conservation.
- A study in Africa by Bednar-Friedl, Behrens, and Getzner (2012) provided
evidence that visitors are willing to pay high fees in order to visit a national park
that is in better condition.
- Ecotourism ventures may require only minimal inputs in infrastructure and
facilities with-some eco-trails having only bamboo bridges and makeshift toilets.
Sources of Income from Ecotourism Operations

- Income from ecotourism operations can come from:
o (1) entrance fee,
o (2) service fee,
o (3) user fee,
o (4) permit fee,
o (5) concession fee, and
o (6) sale of souvenir and food and beverage items.
- Visitors pay entrance fees at an ecotourism site's main gate and for special
attractions located in-the park, such as a butterfly farm. They also pay service fees
for guiding, or porterage services.
- At Kabigan Falls in Pagudpud, Ilocos Norte, besides paying a minimal entrance
fee, tourists also get the services of tour guides (one guide is assigned for every
group of 10).
- For mountain trails, porters are on hand to carry heavy baggage for the tourists at
a fee.
- User fees could be charged for the use of toilets, shower rooms, or swimming
pools. There are camping areas where visitors can also rent tents or sleeping bags.
More developed sites can have ecolodges or cottages for rent, and even venues
for weddings, debuts, planning and team building activities, and spiritual retreats.
- In Africa, residents in a national park pay permit fees to be allowed to graze their
cattle, gather dry grasses to build their local thatched houses, and fish (Ijeomah &
Ayodele, 2009). Fees can be charged for advertising and movie shootings.
Concession fee is collected from a private operator who can construct and
operate tourism facilities within a national park based on a lease contract.
- In the Philippines, long-term lease is typically for 25 years, subject to extension by
mutual consent of the parties. Kiosks or shops in a park can sell souvenirs, food,
and drinks who in turn pay concession fees to the park authorities.
The Department of Environment and Natural Resources (2016) prescribed the
following minimum rates to be paid by local and foreign visitors at a protected area:
Table 3. Minimum Rates for Local and Foreign Visitors in a Protected Area
Entrance P30 for adults; P15 for students; P0 for

PWDs, senior citizens, and children below
7 years old
P100 for foreigners
Picnic tables P25 per hour

Cottages P500 per day; P1,000 per night

Camping site P200 per spot
Swimming pool P50 per person
Basketball court and other sports facilities P100 per hour (daytime)} P200 per hour
(with lights)
Docking areas for small boats P50 per boat per hour
Docking area for yachts P5,000'per day
Parking area for first two hours and Tricycles. P20, PS
succeeding hour or fraction thereof Cars: P45, PIO
Passenger jeep/coaster (up to 20 pax):
P60, P20
Minibus and tour bus (above 20 pax):
P150, P30
Water-based activities (swimming, P60 for Filipinos
snorkeling) P100 for foreigners
Hiking and biking in designated visitor P60 for Filipinos
areas P100 for foreigners
Trekking, biking, caving, and mountain P250 per person for Filipinos
climbing outside' designated visitor areas P500 per person for foreigners
Scuba diving, whitewater rafting, and non- P800 for Filipinos
motorized water sports Pl,800 for foreigners
Professional documentation and P5,000
photography
Lease of land for short term, small scale P10 per square meter per day
commercial operations (food stalls, and
souvenir shops during festivals)
- According to the DENR, the fees were set to limit access to natural areas in the
interest of sustainability. The fees were based on willingness to pay, cost recovery,
opportunity cost and profit-sharing considerations.
- According to Fearnhead (2003), in a concession arrangement, the concessionaire
is given exclusive commercial use rights to a defined area of land in return for
payment of concession fees. At the end of the contract term, all facilities revert to
the owners of the land, which may be a government entity. Along with the rights of
occupation and commercial use of the land, a concession contract will stipulate the
set of obligations of the concessionaire regarding financial terms, environmental
management, social objectives, empowerment, and other factors, the violation of
which carries certain penalties, such as forfeiture of performance bonds and
termination of the contract. Concessions encourage partnerships between
government and the private sector.
- The community plays an important part in ecotourism revenue generation.
According to Thomas (2013), community participation increases revenues
because people are more willing to contribute through taxes and fines. They are
also kept vigilant on the revenues received from ecotourism projects, in the
process preventing embezzlement of funds by the leaders of the projects.
Financing Schemes for Ecotourism Ventures

- Financing tourism ventures are of three broad types:
o (1) public,
o (2) private, and
o (3) public-private partnership.
- Public financing includes investments put up by governments, international
donors, and multilateral development organizations where funds come, at least
initially, from public sources (USAID, n.d.). Many ecotourism ventures may have
to be kick-started by public financing until visitor-derived revenues contributes a
bigger share of the site's budget (Bednar-Friedl, Behrens& Getzner, 2012).

- Private financing covers for-profit and non-profit organizations like conservation

organizations where funds come from non-governmental sources (individuals,
foundations, companies, etc.).
- Finally, public-private partnership is where both government and private entities
are involved. In such cases, the government may offer tax breaks, subsidies,
guarantees, or infrastructure to private investment.
Two types of loans may be availed of to finance an ecotourism project.
- A project or non-recourse financing is a type of loan where the collateral is the
asset (e.g., resort facility) created through the project. In this type of loan, when a
borrower defaults, the lender becomes the owner of the resort. The lender takes a
risk in that it may or may not recover the full value of the loan through sale of the
asset and has no recourse to other borrower assets to recoup the funds loaned
(USAID, n.d.).
- A collateralized financing is where, in case the borrower defaults, the lender has
recourse to other assets apart from the assets to be created by the project. A third
party known as co-maker may guarantee to repay a loan in cash in case of default.
In very big projects, which are expected to deliver significant social and economic
benefits, the government itself can be the guarantor. This type of guarantee is
called a sovereign guarantee (USAID, n.d.).
Foreign Investments
- Foreign governments, international aid agencies, and non-profit organizations or
foundations could be tapped to finance ecotourism projects.
- Foreign investments in tourism could take the form of triple bottom line investing,
social investing, impact investing, community investing, microfinance, and
diaspora investment (Faulkner et al., n.d.).
- The Canadian International Development Agency (CIDA), Japan International
Cooperation Agency (JICA), Asian ' Development Bank (ADB), and United
State Agency for International Development (USAID) could be tapped to fund
government tourism ventures; however the project must be aligned to the-specific
focus areas of the agencies. For example, for ADB, the focus areas should be
gender and development, social development and poverty, sustainable
development goals, etc. (adb.org).
- CIDA's focus areas include gender equality, tourism policy and governance, rural
development, and small and medium size enterprise development (http://w05.
international.gc.ca/projectbrowser-banqueprojets/filter-filtre?cc=PH).
- Another focus is on social investing, or socially responsible investing, which is
using investment to affect social change.
- A closely related trend is impact investing, which blends philanthropy and private
equity to achieve objectives through the development of self-financing initiatives
and enterprises. that generate triple bottom line returns.
- The United States Agency for International Development (USAID) leads in
promoting impact investing. In collaboration with the Rockefeller Foundation,
Global Impact Investing Network (GIIN), and JP Morgan Chase & Co., they
developed Impact Reporting and Investment Standards (IRIS), which rates
social and environmental returns on financial investments.
- Community investing is a form of investment targeting underserved communities
with access to capital and credit. Investments for tourism typically focus on micro
and small enterprises and infrastructure projects, such as sanitation, health,
transportation, and electrification among others. The Community Investment
Center is a good resource for searchable database of community investment
specialists around the world (www.socialfunds.com/ci/index.cgi).
- Investors for sustainable tourism projects allocate funds to community project
components'- like guesthouses, homestays, ecolodges, and other small-scale
accommodation facilities. Other initiatives aim to empower women and young

people through business creation include local food preparation and handicraft
production for sale to tourists.
- An example of a successful community investment initiative is the United Nations
Environmental Programme's (UNEP) Small Grants Program on behalf of the
Global Environment Facility (GEF) in Costa Rica. The program supported the
development of rural community-based tourism as a sustainable livelihood. The
Small Grants Program provided $2,500 to construct a small tourist receiving area
and restrooms in a local lodge. The loan could be repaid once business starts
making money.
- Another source of foreign investment is diasporas. Diasporas are "transnational
communities maintaining connections with their countries of origin." Remittances
from migrants and their descendants are significant sources of resources,
knowledge and capital back home (Faulkner et al., n.d.).
Barriers to Investment
There are many potential barriers to foreign investments in tourism.
- According to Faulkner et al. (n.d.), investors may be discouraged by:
o (1 ) lack of reliable, comparable, and timely tourism data;
o (2) political risk;
o (3) currency controls;
o (4) limited access to capital and credit;
o (5) burdensome investment approval processes;
o (6) bureaucratic inefficiency;
o (7) poor country image;
o (8) complex legal and regulatory framework;
o (9) restriction on land and foreign ownership;
o (10) import restrictions;
o (11) inadequate infrastructure;
o (12) environmental degradation; and
o (13) labor-related issues such as lack of basic skills and difficulty of
obtaining visas for skilled foreign employees.
Microfinance
- Microfinance is another financing mechanism that provides loans, savings
accounts, and transfers to the poor.
- Microfinance is usually availed of by micro and small entrepreneurs who usually
do not have access to financial services provided by banks.
- The term was often interchanged to microcredit—petty loans to unsalaried
borrowers with little or no collateral—but since evolved to include a range of’ other
financial products such as savings, Insurance, payments, and remittances
(www.microfinancegateway.org).
- In the Philippines, one conduit for microfinance is loan sharks who lend money at
20% interest per month. However, microfinance facilities are also available from
rural banks, non-government organizations, and cooperatives.
- According to the Microfinance Council of the Philippines, the leading
microfinance institutions in 2011 in terms of number of depositors were CARD
NGO, CARD Bank, ASA Philippines, and TSPI, while the leaders in terms of
amount of deposits were 1st Valley Bank, CARD Bank, Valiant RB, and Bangko
Kabayan (Habradas & Umali, 2013).
- Poor people can obtain small loans to venture into the production and sale of cold
local beverages like samalamig, buko juice, or sago't gulaman, and native
merienda (snacks) like empanada, okoy (shrimp and vegetable pancake), banana
cue, ginatan, isaw (pork or chicken intestines), and foods, They can also use the
money to start their souvenir business, consisting of bracelets, hats, refrigerator
magnets, miniatures of local attractions like windmills and small boats. They can
also use the money to buy and operate small vehicles like pedicab or small boat.

Furthermore, they can also invest to learn massage techniques, hairbraiding, nail
art, and 'Offer services that are popular with tourists.
Donations
- Non-use sources of revenues come in the form of membership fees or donations
from the public who may or may not use the protected area (Dharmarathe, Sang,
& Walling, 2000 in Rao, 2013).
- Many tourists want their donations to be used for conservation efforts,
maintenance of tourist facilities, and providing education programs in the parks
(Rao, 2013).
Philippine Investment Laws
- There are several laws (Republic Acts, Executive orders, etc.) pertaining to
investments in the Philippines but the fundamental provisions on investments, are
contained within Articre XII (National Economy and Patrimony) of the 1987
Philippine Constitution. Provisions that have implications Oh ecotourism
investment are:
o the prohibition of sale to individuals or corporations of lands of public
domain, except agricultural lands;
o the option of the State to enter into co-production, joint venture, or
production-sharing 'agreements with Filipino citizens; or corporations or
associations where 60% of the capital is owned by Filipino citizens to
develop lands of public domain (in other words, foreign individuals or
business entities may not own more than 40% of the capital)
o the time limit to the aforementioned agreements set to twenty-five years;
renewable for another twenty-five years;
o the protection of the rights of indigenous cultural communities’ their
ancestral lands to ensure their economic, social, and cultural well-being;
and the preferential use of Filipino labor, domestic materials, and locally
produced goods.
- As mentioned, Philippine law requires that 60% of capitalization be shouldered by
Filipino individuals or business entities. To the remaining 40% requirement, one
strategy is to enter joint venture with foreign investors. An example is Ten Knots
Development Corporation,' a Filipino-Japanese joint venture company, which
began operating in El Nido in 1983 with the opening of a divers' resort on Miniloc
Island and an airstrip (Lio airport) at Villa Libertad on the mainland to provide
access to the area. Subsequently, the company set up resorts on Pangulasian and
Lagen Island (http://mimaropa.denr.gov.ph/index.pWet-nido-taytay-managed-
re9uce-protected-area).
Investing in Tourism Enterprise Zones

The Philippine government provides incentives for tourism enterprise zones
through the Tourism Infrastructure and Enterprise Zone Authority (TIEZA, 2011). The
guidelines for the administration of tourism investment incentives under RA 9593 are
contained in the TIEZA Guidelines (2011) (as amended on December 1 5, 2014). As
stipulated in the guidelines, the area which is being applied for designation as a TEZ
should
o (1) have a contiguous territory;
o (2) have historical and cultural significance, environmental beauty, or
existing or potential integrated leisure facilities within its bounds or within
reasonable distances from it;
o (3) have; or may have, strategic access through transportation
infrastructure and reasonable connection with utilities infrastructure
systems;
o (4) be at least five hectares in size (may be less than five hectares in
meritorious cases subject to the TIEZA Board decision);

o (5) be strategically located to stimulate the sustainable socioeconomic

development of neighboring communities; and
o (6) be situated where controls can easily to curtail illegal activities. Areas
located in the least developed areas as identified in the annual
Investment Priorities Plan of the Philippines (IPP) will be prioritized for
designation as TEZ by the TIEZA.
Tourism Enterprise Zones are classified as:
o (1) cultural heritage tourism zone,
o (2) health wellness tourism zone,
o (3) ecotourism zone,
o (4) general leisure tourism zone, and
o (5) mixed use tourism zone.
- Ecotourism zones are described by the TIEZA guidelines as "areas that will allow
visitors to experience a form of sustainable tourism within a given natural and/or
cultural area where community participation, conservation and management of
biodiversity, respect for culture and indigenous knowledge systems and practices,
environmental education and ethics as well as economic benefits are fostered and
pursued for the enrichment of host communities and satisfaction of visitors." These
areas include but are not limited to:
o (1) sites of scenic natural or rural beauty;
o (2) areas for observing wildlife;
o (3) areas for low impact activities such as camping, trekking, climbing,
spelunking, diving, surfing, and other similar activities; and
o (4) sites for observing and interacting with traditional or indigenous
practices in relation to the environment.
- A TEZ may be a brownfield or greenfield tourism zone.
o A brownfield is an area where there are already existing infrastructure or
tourism-related development.
o A greenfield, on the other hand, is an area where there are minimal or no
man-made infrastructure or tourism-related development at all (TIEZA,
2011).
Fiscal Incentives
- Fiscal incentives that could be granted to TEZ operators and tourism enterprises
within the TEZ cover:
o (1) income tax holiday;
o (2) exemption from the payment of all national internal revenue taxes and
all local impost, fees, licenses, assessments, and taxes for new
enterprises;
o (3) full exemption of all taxes and customs duties on the importation of
capital investment and equipment subject to certain conditions;
o (4) exemption from customs duties for imported equipment and
accompanying spare parts for new and expanding registered enterprises
subject to certain conditions;
o (5) full exemption from all taxes and customs duties for imported goods on
the condition that the goods will be imported for the purpose of operating a
wholesale or retail establishment in competition with the Duty-Free
Philippines Corporation
o (6) tax credit equivalent to all national internal revenue taxes paid on goods
and services directly or indirectly used by the registered enterprise for
services actually rendered within the TEZ; and
o (7) social responsibility incentive consisting of 50% tax deduction of the
cost of environmental protection or cultural heritage, preservation activities
end sustainable livelihood programs for local communities which may be

chosen from the list of activities identified by the National Anti-Poverty

Commission (NAPC) and other similar activities as may be determined by
the Board
Non-fiscal Incentives
- Non-fiscal incentives that could be TEZ operators include:
o (1) employment of foreign nationals subject to conditions;
o (2) exemption from duties and taxes for importation of professional md
household effects,
o (3) granting of a Special Investors Resident Visa,
o (4) repatriation jot the entire proceeds the liquidation of the investment,
o (5) the right to remit earnings from a foreign investment in the currency in
which the investment was made and at the rate prevailing at the time of
remittance, and
o (6) the right to remit at the exchange rate prevailing at the time of remittance
the amount necessary to pay for interest and principal on foreign loans and
obligations from technological-assistance contract.
- Conditions for the grant of employment permits to foreign nationals include:
o the requirement that the foreigner will occupy the executive position of
president, vice-president, treasurer, and general manager, or their
equivalents; the cap of 5% total number of foreign nationals to the total
workforce in the TEZ unless expressly authorized by TIEZA Board;
o and the requirement to provide an Understudy Training Program (UTP) to
at least two understudies.
- The Special Investors Resident Visa (SIRV) may be given to a foreign national who
invests at least US$200,000 in a TEZ and/or a registered tourism enterprise. The
SIRV is extended to his or her dependents, spouse, and unmarried children under
18 years of age. Tourism enterprises outside of the TEZS may also avail of fiscal
incentives subject to conditions.
Application Requirements for TEZ Designation
Any company duly registered with the Securities-and Exchange Commission and
national government entities or Iocal government unit may apply for TEZ designation.
- According to TIEZA guidelines, the following documents need to be submitted
upon application:
1. Duly accomplished TIEZA Application Form.
2. SEC registration certificate and copies of the articles of incorporation and by-
laws; in case of a joint venture, a copy of the joint venture agreement.
3. Company profile, containing basic data/information on its technical, financial,
marketing, and management capability/competence to undertake the
proposed project.
4. Resolution of the applicant's board of directors authorizing the filing of the
application and the designation of their authorized representative to TIEZA;
list of its directors, principal officers, and major stockholders, including their
respective biodata.
5. For national government entities or LGU, an authority from the head of
agency or local chief executive authorizing the filing of the application and
the designation of their authorized representative to TIEZA.
6. Vicinity map reflecting various land uses, important verifiable landmarks
within the five (5) kilometers radius of the project site, proximity to
transportation and utilities infrastructure, and tourism focal points in the
vicinity and their distances from the Project site.
7. Proof of land ownership and/or long-term lease agreement(s) for a period of
not less than twenty-five (25) years on the entire area of the proposed TEZ
8. Endorsement letter from the National Historical Institute (NHI) in the case of
Cultural and Heritage Tourism Zone, from the Department of Health (DOH)

in the case of Health and Wellness Tourism Zone; or from Philippine

Retirement Authority (PRA) in the case of retirement villages/communities.
9. Other supporting documents as may be required by the TIEZA.
Documentary Requirements Prior to Designation as TEZ

Before the designation as a TEZ, the concerned entity needs to submit the
following documents:
1. Resolution of the concerned LGU approving the development plan
2. Copy of the approved Comprehensive Land Use Plan of the concerned LGU
3. Verified survey returns and technical description of the land area for the
proposed TEZ
4. Environmental Compliance Certificate issued by the Department of
Environment and Natural Resources.(DENR)
5. Clearance/permit from the concerned Protected Area Management Board if
the proposed zone is within a Protected Area
6. Financial statement for three (3) years for existing companies
7. Development Plan of the area specifying the following:
o Tourism focal points and resources available within the TEZ and
adjoining areas
o Features which satisfy the requisites for the designation of TEZ
o Amount to be invested by the applicant in the area
o Areas for infrastructure development and the kind of development, for
investment and the nature of investment, and for preservation and the
sustainable activities allowed within preserved areas
o Public utilities to be operated Within the TEZ
o Medium- and long-term studies on market trends, and corresponding
development strategies for the TEZ
o Studies on the economic impact of development within the and in
surrounding communities
o Studies on the Carrying capacity of the TEZ and Surrounding
communities
o Design plans for structures incorporating measures that should ensure
the sustainable development of the area and the surrounding
environment (civil and architectural plans that preferably incorporate
Philippine design elements and cultural heritage, structural plans,
electrical, mechanical, sanitation and design computations, cost
estimates and specifications, financial schedules and construction
timetable; energy efficiency and climate change mitigation measures
to be adopted and implemented in the area; and compliance statement
on development standards enumerated in the following section).
- The proposed TEZ should be compliant with TIEZA's development standards
concerning infrastructure, setback, consumption of natural resources, sewerage
disposal system, surface water disposal, safety and security, site coverage
density, landscaping, visual security, roads, vehicle parking, waste water
treatment, ventilation requirements, and other requirements as may be prescribed
by the TIEZA board.

Tmpe 221 Weeks 10-17

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TMPE 221 – ECOTOURISM MANAGEMENT

• Define "visitor management”.

Visitor management is a key component in managing an ecotourism site. Visitor

Definition of Visitor Management and Its Principles

PREPARED BY: KAYCEE H. NUESTRO - Instructor 1

Visitor Management Frameworks

PREPARED BY: KAYCEE H. NUESTRO - Instructor 2

▪ (6) comparison of impacts with standards, and

PREPARED BY: KAYCEE H. NUESTRO - Instructor 3

▪ (2) inventorying recreational resources,

Visitor Management Tools

PREPARED BY: KAYCEE H. NUESTRO - Instructor 4

management. These include the construction of facilities or infrastructure to

PREPARED BY: KAYCEE H. NUESTRO - Instructor 5

Tools for Influencing Visitor Behavior

PREPARED BY: KAYCEE H. NUESTRO - Instructor 6

Measures to Provide Security and Safety

Minimizing Visitor Impacts

PREPARED BY: KAYCEE H. NUESTRO - Instructor 7

Responsible and Ethical Behavior in Ecotourism Sites

PREPARED BY: KAYCEE H. NUESTRO - Instructor 8

Factors Influencing Environmental Behavior

PREPARED BY: KAYCEE H. NUESTRO - Instructor 9

Community Participation in Ecotourism

• explain the importance of community participation;

The Importance of Community Participation

PREPARED BY: KAYCEE H. NUESTRO - Instructor 10

- The stated principles of ecotourism involve at least two actors or stakeholders;

PREPARED BY: KAYCEE H. NUESTRO - Instructor 11

PREPARED BY: KAYCEE H. NUESTRO - Instructor 12

Challenges in Getting Stakeholder Participation

PREPARED BY: KAYCEE H. NUESTRO - Instructor 13

- If stakeholder participation yields several benefits, then why is it sometimes difficult

PREPARED BY: KAYCEE H. NUESTRO - Instructor 14

Prerequisites to Genuine Participation

PREPARED BY: KAYCEE H. NUESTRO - Instructor 15

Effective Participation Techniques

Steps in Participatory Planning Process

PREPARED BY: KAYCEE H. NUESTRO - Instructor 16

PREPARED BY: KAYCEE H. NUESTRO - Instructor 17

PREPARED BY: KAYCEE H. NUESTRO - Instructor 18

• discuss the case for ecotourism investment.

The Case for Ecotourism Investment

PREPARED BY: KAYCEE H. NUESTRO - Instructor 19

countries. In the US in 2006, wildlife-related recreational activities like hunting,

Sources of Income from Ecotourism Operations

Entrance P30 for adults; P15 for students; P0 for

PREPARED BY: KAYCEE H. NUESTRO - Instructor 20

Cottages P500 per day; P1,000 per night

Financing Schemes for Ecotourism Ventures

PREPARED BY: KAYCEE H. NUESTRO - Instructor 21

- Private financing covers for-profit and non-profit organizations like conservation

PREPARED BY: KAYCEE H. NUESTRO - Instructor 22

PREPARED BY: KAYCEE H. NUESTRO - Instructor 23

Investing in Tourism Enterprise Zones

PREPARED BY: KAYCEE H. NUESTRO - Instructor 24

o (5) be strategically located to stimulate the sustainable socioeconomic

PREPARED BY: KAYCEE H. NUESTRO - Instructor 25

chosen from the list of activities identified by the National Anti-Poverty

PREPARED BY: KAYCEE H. NUESTRO - Instructor 26

in the case of Health and Wellness Tourism Zone; or from Philippine

Documentary Requirements Prior to Designation as TEZ

PREPARED BY: KAYCEE H. NUESTRO - Instructor 27