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Ecotourism and Economic Growth in the Galapagos: An Island Economy-wide Analysis

Author

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  • Taylor, J. Edward
  • Hardner, Jared
  • Stewart, Micki
Abstract
This paper raises questions about the compatibility of "ecotourism" and conservation in the unique environment of the Galapagos Islands. It updates a 1999 economy-wide analysis that predicted that increases in tourism would result in rapid economic as well as demographic growth on the islands. The following six years witnessed sharp growth in tourism; a restructuring of tourism around larger cruise ships and new, larger hotels; and rapid population growth. Our findings indicate that total income (that is, the gross domestic product) of the Galapagos increased by an estimated 78% between 1999 and 2005, placing Galapagos among the fastest growing economies in the world. Tourism continues to be far and away the major driver of economic growth; however, new injections of all sorts of spending, including by government, commercial fishing, and conservation agencies, have had a multiplier effect on income in the Galapagos economy, and as a result, on population growth, via uncontrolled immigration that is theoretically prohibited by the Special Law of the Galapagos to prevent ecological harm to the islands. Further, immigration has diminished the effect of economic growth on household income, creating political pressure to find even more economic development options for Galapagos residents, including commercial fishing. The linkage between economic growth, led by tourism or any other sector, and environmental protection of the Galapagos should be taken seriously when designing and implementing economic development and conservation programs.

Suggested Citation

  • Taylor, J. Edward & Hardner, Jared & Stewart, Micki, 2006. "Ecotourism and Economic Growth in the Galapagos: An Island Economy-wide Analysis," Working Papers 11950, University of California, Davis, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:ucdavw:11950
    DOI: 10.22004/ag.econ.11950
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Galapagos Islands need tourism, says Sir David Attenborough
      by Dave Simpson in hand picked... and carefully sorted on 2009-02-19 17:23:09

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    Cited by:

    1. Ilia Alomía Herrera & Rose Paque & Michiel Maertens & Veerle Vanacker, 2022. "History of Land Cover Change on Santa Cruz Island, Galapagos," Land, MDPI, vol. 11(7), pages 1-24, July.
    2. Tanner, Michael K. & Moity, Nicolas & Costa, Matthew T. & Marin Jarrin, Jose R. & Aburto-Oropeza, Octavio & Salinas-de-León, Pelayo, 2019. "Mangroves in the Galapagos: Ecosystem services and their valuation," Ecological Economics, Elsevier, vol. 160(C), pages 12-24.
    3. World Bank, 2021. "Banking on Protected Areas," World Bank Publications - Reports 35737, The World Bank Group.
    4. Andrea A. Eras-Almeida & Miguel A. Egido-Aguilera & Philipp Blechinger & Sarah Berendes & Estefanía Caamaño & Enrique García-Alcalde, 2020. "Decarbonizing the Galapagos Islands: Techno-Economic Perspectives for the Hybrid Renewable Mini-Grid Baltra–Santa Cruz," Sustainability, MDPI, vol. 12(6), pages 1-47, March.
    5. Lu Yang & Xiao Hu & Hoffer M. Lee & Yuqing Zhang, 2023. "The Impacts of Ecotourists’ Perceived Authenticity and Perceived Values on Their Behaviors: Evidence from Huangshan World Natural and Cultural Heritage Site," Sustainability, MDPI, vol. 15(2), pages 1-23, January.
    6. Federico Medina & Juan Pablo Bermeo & Jesus Ramos-Martin & Bernardo Bustamante & Juan Cadillo Benalcazar & Jaime Cevallos & Belén Liger & Freddy Llive & Rony Parra & Hernán Villarraga & María Eugenia , 2014. "Diagnóstico y análisis biofísico para evaluación y formulación de escenarios de desarrollo en el Archipiélago de Galápagos," Informes Técnicos CEPROEC IT2014_01, Instituto de Altos Estudios Nacionales, Centro de Prospectiva Estratégica.
    7. Christopher A Kirkby & Renzo Giudice-Granados & Brett Day & Kerry Turner & Luz Marina Velarde-Andrade & Agusto Dueñas-Dueñas & Juan Carlos Lara-Rivas & Douglas W Yu, 2010. "The Market Triumph of Ecotourism: An Economic Investigation of the Private and Social Benefits of Competing Land Uses in the Peruvian Amazon," PLOS ONE, Public Library of Science, vol. 5(9), pages 1-14, September.
    8. Francisco López-del-Pino & José M. Grisolía, 2018. "Pricing Beach Congestion," Tourism Economics, , vol. 24(4), pages 449-472, June.
    9. Gilliland, Ted E. & Sanchirico, James N. & Taylor, J. Edward, 2016. "Tourism, Natural Resource Use and Livelihoods in Developing Countries: A Bioeconomic General Equilibrium Approach," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236214, Agricultural and Applied Economics Association.
    10. Andrea Cecchin, 2017. "Material flow analysis for a sustainable resource management in island ecosystems," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 60(9), pages 1640-1659, September.

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    Keywords

    Resource /Energy Economics and Policy;

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