Chapter 3 - Pearson Learning Solutions

Case 3-2Ecuador’s Galápagos Islands and EcotourismEcuador boasts a dazzling mix of geographic wonders, includingcoastal lowlands, the Andes mountain range, the fabled jungles ofthe Amazon, and the legendary Galápagos Islands. The seventyvolcanic islands, located in the Pacific Ocean about 600 miles offEcuador’s coast, are known for their fragile ecosystems and endemictropical species. The giant tortoise, sea lion, iguana, blue-footedbooby, flightless cormorant, and waved albatross are just a few ofthe unique and wonderful species living here.Public fascination with the Galápagos dates back to the timethat Charles Darwin made his first trip to the isolated archipelagoin the early nineteenth century. It was there that Darwin began toformulate his ideas on evolution by means of natural selection.Although there are some who would dispute Darwin’s theory,there is little disagreement regarding the magnetic pull of theGalápagos Islands’ exotic beauty and abundant flora and fauna.In 1959, the 100th anniversary of the publication of Darwin’sOn the Origin of Species, the Ecuadorian government embarkedon concerted conservation efforts to safeguard the islands.Officially, the islands are a province of the Republic of Ecuador; thegovernment declared 97 percent of the islands’ land area asEcuador’s first national park. Habitation by humans is limited tothe remaining 3 percent. In 1986, the government designated19,300 square miles of water surrounding the archipelago as theGalápagos Marine Resources Reserve. In 1998, the Special Law ofthe Conservation and Sustainable Use of the Galápagos Provinceestablished the Galápagos Marine Reserve. Taken together, thesepieces of legislation were designed to fully protect both land andwater.Today, tourists are a constant presence on the islands. Tourismhas enabled Ecuador to diversify its export base, which traditionallyhas been heavily dependent on oil. Ecotourism has been a drivingforce behind Ecuador’s economic growth during the past decade.In 1999, Ecuador defaulted on its foreign debt; in 2000, it adoptedthe dollar as its official currency. In a process known as inwardmigration, many Ecuadorians left the mainland and went to theislands seeking work.A recent study in Environment and Development Economicsexamined the economy of the Province of Galápagos as a separateentity from the mainland, The study found that, from 1999 to2005, the islands’ GDP increased by approximately 78 percent. Thismeans that the Galápagos could be considered one of the world’sfastest-growing economies. Tourism played an important role,accounting for about two-thirds percent of the growth. However,income per person in the Province rose only by 1.8 percent annuallyduring the same period.Prior to the 1970s, access to the islands was primarily by largecargo ships coming from Guayaquil, Ecuador’s main port. Tourismgot a big boost after an old military airstrip was renovated on theisland of Baltra and Aerolíneas Galápagos and other commercialairlines established regular flights. The number of touristsincreased from 68,850 per year in 2000, to 108,400 in 2004.The Ecuadorian government and the National Parks Servicehave maintained stringent rules for the islands. All tourists mustbe accompanied by trained naturalist guides, and there is a $100per person entrance fee to the park. Visitors must follow a strictitinerary that limits them to the 50 designated sites on the islands.The influx of visitors has spurred hundreds of tourism-relatedbuilding projects such as hotels. More than half of Ecuador’stourist earnings are generated by the islands themselves andmuch of the money goes back into the islands to protect them.Of course, tourism also creates new jobs, and, as noted, manyimmigrants have come to the Galápagos seeking work in theservice sector. In the past decade, the human population on the104The clash of tourism and ofnatural habitat is apparent as raftboat drivers pull up to the shoresof Española IPunta Suarez.Theinactive lava terrain and colonyof Galápagos sea lions makethe shoreline a difficult loadingport for raft boats and waitingtourists.Source: Emily Beckmann.000200010270740623Global Marketing, Sixth Edition, by Warren J. Keegan and Mark C. Green. Copyright © 2011 by Warren J. Keegan. Published by Prentice Hall.