Reference no: EM131283785

Ecuador boasts a dazzling mix of geographic wonders, including coastal lowlands, the Andes mountain range, the fabled jungles of the Amazon, and the legendary Galápagos Islands. The 70 volcanic islands located in the Pacific Ocean about 600 miles off Ecuador's coast are known for their fragile ecosystems and endemic tropical species. The giant tortoise, sea lion, iguana, blue-footed booby, flightless cormorant, and waved albatross are just a few of the unique and wonderful species living here. Public fascination with the Galápagos dates back to the time that Charles Darwin made his first trip to the isolated archipelago in the early nineteenth century. It was there that Darwin began to formulate 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 the Galápagos Islands' exotic beauty and abundant flora and fauna. In 1959, the 100th anniversary of the publication of Darwin's On the Origin of Species, the Ecuadorian government embarked on concerted conservation efforts to safeguard the islands. Officially, the islands are a province of the Republic of Ecuador; the government designated 97 percent of the islands' land area as Ecuador's first national park.

Habitation by humans is limited to the remaining 3 percent. Despite these efforts, human intrusion has taken its toll. The phrase "Galápagos syndrome" has been used to describe the fate of land iguanas on Isabela Island. Living in an ecosystem that was isolated from the rest of the world, these creatures evolved and adapted over centuries. They lived a sedentary lifestyle, feeding on local cacti and other flora. However, dogs that had been brought from the mainland feasted on the reptiles and nearly decimated the population. The remaining land iguanas were taken into captivity.

Today, tourists are a constant presence on the islands (see Exhibit 2-10). Tourism has enabled Ecuador to diversify its export base, which traditionally has been heavily dependent on oil. Ecotourism has been a driving force behind Ecuador's economic growth during the past decade. In 1999, Ecuador defaulted on its foreign debt; in 2000, it adopted the dollar as its official currency. In a process known as inward migration, many Ecuadorians left the mainland and went to the islands seeking work. A recent study in Environment and Development Economics examined the economy of the Province of Galápagos as a separate entity from the mainland. The study found that from 1999 to 2005 the islands' GDP increased by approximately 78 percent. This means that the Galápagos could be considered one of the world's fastestgrowing economies. Tourism played an important role, accounting for about two-thirds of that growth.

However, income per person in the Province rose only by 1.8 percent annually during the same period. Prior to the 1970s, access to the islands was primarily by large cargo ships coming from Guayaquil, Ecuador's main port. Tourism got a big boost after an old military airstrip was renovated on the island of Baltra and Aerolíneas Galápagos and other commercial airlines established regular flights. The number of tourists increased from 68,850 per year in 2000 to more than 160,000 by the end of the decade. In 2009, the year that marked 200 years since Darwin's birth, 180,000 visitors were expected. The Ecuadorian government and the National Parks Service have maintained stringent rules for the islands.

All tourists must be accompanied by trained naturalist guides, and there is a $100 per person entrance fee to the park. Visitors must follow a strict itinerary that limits them to the 50 designated sites on the islands. The influx of visitors has spurred hundreds of tourism-related building projects such as hotels. More than half of Ecuador's tourist earnings are generated by the islands themselves, and much of the money goes back into the islands to protect them. Of course, tourism also creates new jobs, and, as noted, many immigrants have come to the Galápagos seeking work in the service sector.

In the past decade, the human population on the archipelago has doubled to 30,000 people. The growing immigrant population is straining public services such as waste disposal. To address the issue, Ecuador's government has expelled more than 1,000 people from the province, an action that has provoked a backlash. One migrant was powerless to stop authorities from putting her daughter on an airplane back to the mainland. She said, "We are being told that a tortoise for a rich foreigner to photograph is worth more than an Ecuadorean citizen."

Meanwhile, the livelihoods of the Ecuadorians who remain on the Galápagos are also increasingly dependent on exotic sea species. Environmentalists have expressed concern that Ecuador's environment ministry and parks service are giving in to the demands of the local fishing cooperative. Also, tourists frequently leave behind more than just dollars. There is a growing problem with invasive species; incoming aircraft and boats routinely bring rats, ant, roaches, moths, and other insects that pose a threat to the islands' biodiversity

Discussion Questions

1. What are the prospects for sustainable development of the Galápagos tourism industry?

2. The Galápagos Islands are home to many different endemic species. Are the limits on human inhabitants and visitors stringent enough? Too stringent?

3. How does one market something such as the Galápagos Islands, which have such strict guidelines?