Banking on Protected Areas - Promoting sustainable protected area tourism to benefit local economies - World Bank Document

 
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Banking on Protected Areas - Promoting sustainable protected area tourism to benefit local economies - World Bank Document
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                                                                                                            Areas
                                                                     tourism to benefit local economies
                                                                                                            Protected
                                                                     Promoting sustainable protected area
                                                                                                            Banking on
Banking on Protected Areas - Promoting sustainable protected area tourism to benefit local economies - World Bank Document
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Banking on Protected Areas - Promoting sustainable protected area tourism to benefit local economies - World Bank Document
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Banking on Protected Areas - Promoting sustainable protected area tourism to benefit local economies - World Bank Document
Contents

Acknowledgements ........................................................................................................................ 7
Executive Summary ...................................................................................................................... 9
              How was the study done?...................................................................................................10
              What did the study find? ...................................................................................................... 11
              What lessons can countries draw from the study?....................................................... 13
              Recommendation 1–Protect the Asset............................................................................ 13
              Recommendation 2–Grow and Diversify the Business.............................................. 13
              Recommendation 3–Share the Benefits........................................................................ 14

1. Introduction.................................................................................................................................. 16
    1.1. The State of Biodiversity ......................................................................................................... 17
    1.2. Benefits of Protected Areas .................................................................................................. 18
    1.3. Protected Area Coverage ....................................................................................................20
    1.4. Protected Area Challenges ..................................................................................................20
              1.4.1. Protected Area Funding .......................................................................................... 23
              1.4.2. Community Benefits ................................................................................................ 24
    1.5. Rationale for the Study .......................................................................................................... 26

2. Assessing the Economic Impacts........................................................................................30
   2.1. Methodology............................................................................................................................. 32
              2.1.1 Estimating the Economic Impact of Tourism in Protected Areas .................... 32
    2.2. Avenues for Economic Impacts of Protected Areas ..................................................... 34
    2.3. Lewie Model ............................................................................................................................ 36
    2.4. Data Collection ....................................................................................................................... 37

3. Findings .........................................................................................................................................39
   3.1. Country Context and Summary Statistics ......................................................................... 39
   3.2. Key Findings From Country Case Studies........................................................................ 48
              Effects of Protected Area Tourism on Local Economies ........................................... 48
              Return on Government Spending ................................................................................... 52
              Impact of Conflicts and Shocks........................................................................................ 53
              Impact of Government Policies......................................................................................... 54
    3.3. Study Limitations..................................................................................................................... 57
Banking on Protected Areas - Promoting sustainable protected area tourism to benefit local economies - World Bank Document
4. Policy Recommendations...................................................................................................... 58
   4.1. Protect Natural Assets............................................................................................................60
              4.1.1. Formalize Protected Areas.......................................................................................60
              4.1.2. Increase Public Investment in Protected Area Management.........................60
              4.1.3. Build Capacity of Protected Area Managers...................................................... 64
              4.1.4. Regularly Assess the Effects of Visitor Spending............................................. 64
    4.2. Grow and Diversify Tourism Businesses .......................................................................... 64
              4.2.1. Diversify Tourism Offerings..................................................................................... 64
              4.2.2. Develop Concession Policies to Promote Tourism in Protected Areas ....65
    4.3. Share Benefits with Local Communities .......................................................................... 68
              4.3.1. Formalize Benefit Sharing Arrangements........................................................... 68
              4.3.2. Strengthening Income Multipliers........................................................................69
              4.3.3. Mitigate and Compensate for Human-Wildlife Conflict.................................. 70
    4.4. Green Recovery ..................................................................................................................... 70

5. Conclusion..................................................................................................................................... 74
References.........................................................................................................................................76
Banking on Protected Areas - Promoting sustainable protected area tourism to benefit local economies - World Bank Document
authors   Banking on Protected Areas is the result of a collaborative effort between the World
          Bank (Urvashi Narain, Hasita Bhammar, Phoebe Spencer) and the University of
          California, Davis (Prof. Edward Taylor, Heng Zhu, Edward Whitney, Anubhab Gupta,
          Mateusz Filipski, Elisabeth Earley). We are also thankful to Jo Pendry and Laura Onofri
          for their contribution to the report.

          This global study synthesizes information from four country case studies. We are grate-
          ful to the co-authors of these studies:

          BRAZIL	
                 Prof.  Carlos Eduardo F. Young, Alexandre Kotchergenko Batista, Camila Rizzini
                   Freitas (University of Rio de Janeiro); Sylvia Michele Diaz and Bernadete
                   Lange (World Bank.

          FIJI	Prof.    Stuart Kininmonth (University of South Pacific); Jessie McComb (IFC).

          NEPAL	Sindhu   Prasad Dhungana (Government of Nepal); Tijen Arin (World Bank);
                   Siddhartha Bajra Bajracharya (National Trust for Nature Conservation); and
                   Sagar Raj Sharma (Kathmandu University).

          ZAMBIA	Iretomiwa   Olatunji, Ngao Mubanga (World Bank)
Banking on Protected Areas - Promoting sustainable protected area tourism to benefit local economies - World Bank Document
P RO MOT I N G S USTAIN AB L E PROTE CTE D AR E A TOU R IS M TO B ENE F IT LO CAL E CONOM I ES   7

acknowledgements       This report is supported by passionate individuals across many institutions and organi-
                       zations who are banking on protected areas to promote conservation and development.

                       The team is grateful for the support, encouragement, and overall guidance of Karin
                       Kemper, Iain Shuker, Christian Peter, Garo Batmanian, Raffaello Cervigni, Christophe
                       Crepin, Charlotte De Fontaubert, Ann Jeannette Glauber and Valerie Hickey.

                       Peer reviewers included: Richard Damania, Giovanni Ruta, Kirk Hamilton, Ross
                       Hughes, Shaun Mann, Juan Pablo Castaneda, Mimi Kobayashi, Maurice Rawlins, Julie
                       Rozenberg, Bernadete Lange, Renato Nardello, Lisa Farroway, Kasia Mazur, Jessie F.
                       McComb, Andre Aquino, Fei Deng, Sylvia Michele Diaz, David Kaczan (World Bank),
                       and Juha Siikamäki (IUCN). Valuable feedback was also provided by: Susan Pleming,
                       Wendy Li, Olga Gavryliuk, and Elisson Wright (World Bank).

                       Finance for the four country case studies was generously provided by the following
                       trust funds: PROBLUE and Window-3 funded the Brazil and Fiji studies; the Nepal study
                       was funded by WAVES; the Zambia study was funded by PROFOR. The global study
                       was supported by the Global Wildlife Program funded by the Global Environment
                       Facility.

       Country Teams   BRAZIL	Fernando    P.M. Repinaldo Filho (Abrolhos Marine National Park); Betania
                                Fichino, Amanda Silva, Ricardo Castelli Vieira and Renata Carolina Gatti
                                (Brazilian Ministry of Environment); Adriana Moreira, Sergio Margulis, Paula
                                Montenegro, Wanessa Matos, Eduardo Romao Rosa, and Charlotte De
                                Fontaubert (World Bank); and Guilherme Dutra (Conservation International).
                                The dedicated and enthusiastic Brazil survey team includes: Lucas de A. N.
                                Costa, Maira L. Spanholi, Lucas Rolo Fares, Rodrigo Fernandes Gonçalves,
                                Daniel Sander Costa, Rodrigo Abreu Carvalho, Marcos P. Mendes, João
                                Augusto Muniz Videira, Gabriel Pabst da Silva, William John Hester, Aline
                                Guzenski Fioravanso, Patricia Camara de Brito, Miguel Ângelo Portela
                                Pinheiro, and Thais de Jesus Custodio.

                       FIJI      raig Strong, Saras Sharma (Ministry of Fisheries); Marica Vakacola
                                C
                                (Mamanuca Environment Society); Helen Sykes (Marine Ecology Consulting);
                                Lasse Melgaard, Cary Ann Cadman, Jeremy Webster, Sophie Egden, Luke
                                Vueta, and George Henry Stirrett (World Bank). The dedicated and enthusi-
                                astic Fiji survey team includes: Apimeleki Yasawa Nasokitabua, Reshma Ram,
                                Tony Tarivonda, Glen Bule, Noleen Lata Narayan, Simione Naivalu, Solomone
                                Volau, Leba Tavo Miller, Arishma Archna Ram, Shane Rico Henry, Adi Losana
                                Marama Tabuavuka Bulamaibau, Ruth Naomi Narawa, Shilpa Shupriya Lal, and
                                Gabriel Jacob Selema Mara.

                       NEPAL     aneer Lamichhane, Umesh Paudel, Tek Bahadur Gurung (National Trust for
                                S
                                Nature Conservation); Annu Rajbhandari and Sailja Shrestha, (World Bank).
                                The dedicated and enthusiastic Nepal survey team includes: Animesh
                                Shrestha, Saujan Khapung, Jeena Maharjan, Shikha Neupane, Pragya Joshi,
                                Aashruti Tripathy, Pema Sherpa, Muna K.C., Rijan Upadhyay, Sonu Gurung,
                                Pralita Rana Magar, Hrijata Dahal, Bidur Poudel and Rikesh Prasain from
                                Kathmandu University.
                                                                                                                             Co n t en t s

                       ZAMBIA	Dr. Chuma Simukonda, Miyanda Gwaba (Department of National Parks and
                                Wildlife, Government of Zambia); Donald Banda (Chipata Town); Moses
                                Saul Kaoma (Lower Zambezi National Park); Nathalie Johnson, and Hellen
                                Mungaila (World Bank); Chiwala Matesamwa (Chiawa GMA); Alex Chidakel
                                and Brian Child (University of Florida); Petros Muyunda and Choizya Mbewe;
                                Ian Stevenson (Conservation Lower Zambezi); Keira Langford-Johnson
                                (PROFLIGHT Zambia); Adrian Coley (Flatdogs Camp); Paul Barnes (Pioneer
                                Camp); and Grant Cumings (Chiawa Camp). The dedicated and enthusiastic
                                Zambian survey team included: Alick Bruce Makondo, Kenneth Mulenga,
                                Sarai Sinyolo, Nozyenji Mwale, Janet Mulla, Chilufya Chisanga, Memory
                                Bwalya, Liseli Moira Banda, Mwila Lunda, Margret Mbewe, Chipo Shimoomba,
                                Christopher Chibwe, Keren Chakaba, and Vincent Katowa.
Banking on Protected Areas - Promoting sustainable protected area tourism to benefit local economies - World Bank Document
Banking on Protected Areas - Promoting sustainable protected area tourism to benefit local economies - World Bank Document
Executive
Summary

Globally, biodiversity is imperiled. The 2020          which speaks to both crises, addressing
Living Planet Index reported a 68 percent              economic losses and promoting recovery
average decline in birds, amphibians, mammals,         through actions which simultaneously support
fish, and reptiles since 1970; one third of the        biodiversity conservation. Such a view brings
world’s terrestrial protected areas are under          the world’s protected areas into much-needed
intense human pressure and about two-thirds of         focus, as they are key to any global effort to
the world’s oceans suffer from human impact, as        contain biodiversity loss. Their role in doing so
habitat loss and degradation, pollution, exploita-     will be deliberated at the CBD COP-15 this year,
tion, climate change and invasive species drive        where threats to biodiversity and their impacts
catastrophic biodiversity losses.                      on development will be stressed, and countries
                                                       will be encouraged to set aside more land and
Biodiversity matters because of its intrinsic
                                                       marine areas for conservation.
worth, and because ecosystem services, which
depend upon biodiversity, underpin human well-         How can countries address both crises? Can
being and support economic activity in a range         countries afford to bring even larger areas
of sectors. Our survival is, finally, impossible       under protection when the need for economic
without intact natural landscapes and sea-             recovery is so pressing, fiscal spaces are tight,
scapes. Land- and marine-based ecosystems              and so many development challenges persist?
provide food, oxygen, water, carbon seques-            This study set out to make the case that it is
tration, resilience in the face of climate change,     possible. That by promoting sustainable and
and a buffer against pandemics. They also              inclusive tourism in protected areas, countries
foster economic activities such as tourism, which      can respond to these escalating crises, recov-
attract eight billion visitors to protected areas in   er from the economic fallout of the pandemic,
a typical year. The need to protect these natural      address longstanding development challenges,
areas has never been greater.                          and conserve biodiversity.

At the same time, the COVID-19 pandemic has            While governments see protected areas as key
led to a deep global recession in which much           to addressing biodiversity loss, protected areas
economic activity has declined and govern-             are often overlooked in economic develop-
ments face increasing fiscal constraints and           ment plans and economic recovery strategies.
challenges in allocating scarce resources to           One reason for this is that data gaps make it
support the health, security, and development          difficult to demonstrate protected area tour-
of their populations. The tourism sector too, has      ism’s far-reaching stimuli to national and local
suffered significant setbacks. In tourism-depen-       economies, especially in developing countries.
dent economies in Africa and the Caribbean,            Banking on Protected Areas study therefore
for example, GDP is projected to shrink by 12          set out to quantify the impacts of protected
percent. Additionally, many biodiversity-rich          area tourism on local economies to show that
protected areas are located in far-flung, neglect-     protected areas promote conservation and
ed rural regions, in which poverty is persistent.      development.
Often, protected areas around these rural
                                                       The study explores economic impacts on local
communities help leverage tourism to provide
                                                       economies, as local economic development is
the few avenues available to support livelihoods
                                                       a goal in-and-of itself, and community support
and address development challenges.
                                                       is a critical concern for protected areas and is
These intersecting calamities – a pandemic in          needed to secure their long-term integrity. It
a time of biodiversity loss – call for a response      therefore estimates protected area tourism’s
Banking on Protected Areas - Promoting sustainable protected area tourism to benefit local economies - World Bank Document
10   BA NKI NG ON PROTE C TE D A RE A S

                                                                     economic costs and benefits to local com-                                    How was the study done?
                                                                     munities, and explores how benefits may be
                                                                     increased and costs reduced.                                                 Four country case studies were undertaken:
                                                                                                                                                  two in terrestrial protected areas in Zambia and
                                                                     At the same time, a key challenge for protected                              Nepal, and two in marine protected areas in
                                                                     areas is lack of finance. Research shows that                                Fiji and Brazil. While the number of countries
                                                                     poorly financed protected areas lose biodiver-                               is small, the case studies - from Latin America,
                                                                     sity through poaching, livestock incursions, land                            Africa, Small Island States, and Asia - cover a
                                                                     grabs, and illegal mining and logging; likewise,                             mix of economies, environments, and cultures.
                                                                     funding has been found to be the most robust                                 Governments were consulted to select study
                                                                     predictor of successful ecological outcomes                                  sites, and local students were trained to conduct
                                                                     in marine protected areas. Pre-pandemic                                      surveys of tourists, lodges, businesses, and
                                                                     figures show a global biodiversity funding gap                               households. Information on production, income,
                                                                     of US$598–US$824 billion per year, a figure                                  expenditure, and the locations of transactions
                                                                     mirrored for protected areas, which have lost                                was gathered, and in each country, partnerships
                                                                     further funding due to the pandemic. Thus, the                               with local universities grounded the case studies
                                                                     study argues strongly for public investment in                               in the socio-economic context. Study findings
                                                                     protected areas by providing estimated rates of                              were shared with stakeholders, both in-country
                                                                     return on investments.                                                       and globally, to enhance buy-in and quality.

                                                                                                                                                                    Tourism in protected areas triggers
                            figure es-1 Economic Impact Pathways for Protected Areas                                                                                economic activities, and as these
                                                                                                                                                                    activities expand, growing income
                             Revenue sharing,
                             community projects                                                                                                 Environmental       and expenditure increase the
                                                                                                                                                   Impact
                             b                                                                                                                                      demand for goods and services.
                                                                                                                                                                    Contributions to the economy are
                                                                                                                                                                    direct in the form of visitor spend-
                                                                                                                                                                    ing on park fees, hotels, transport,
                                                                                  PARK AUTHORITY,                                                                   leisure and recreation, which create
                                         Businesses pay                             GOVERNMENT
                                          taxes and fees b                                                                                                          employment and support local busi-
                                                                                                                             a Pay non-consumptive                  nesses; while indirect effects occur
                                                                                           a Pay a Park                         and consumptive fees
                                                                                              Entrance Fee                      and taxes                           when tourism businesses and em-
                                                        b Park hires guards or                                                                                      ployees further stimulate economic
                                                           employs households
                                                           for PA activities                                                                                        activity by using the services of
                                                                                                                                                                    other local businesses. These direct
                                                                                                                                                                    and indirect impacts converge on an
                                                                                                                                                                    income multiplier, which is defined
                                                                 a               Protected Areas                         a                                          as the change in local household
                                                          Purchase goods          Terrestrial / Marine             Spend money on
                                                           and services                                             lodging, tourist  TOURISM,                      incomes per unit of money entering
                                   HOUSEHOLDS                                                                                        LODGES AND
                                                                                  OU                                   activities                                   the local economy through tourist
                                                                                                    G

                                                                                                       N                             BUSINESSES
                                                                                       RIST S VISITI
                                                                                 T

                                                                                                                                                                    spending, and is a measure of eco-
                                                                                                                                                                    nomic impact. A general equilibrium
                                                                                                      Wages paid to
                                                                           Purchase food, a       workers employed                                                  model is needed to estimate these
                                                         b,c                   goods and         in tourism activities                                              impacts, and the study adopts a
                                                                                 services                           c
Ex ecu tiv e Summary

                                      Local incomes
                                            increase;                                                                        b Source goods                         model known as LEWIE - Local
                                  households spend                                                                             and services                         Economy-Wide Impact Evaluation.
                                     their income to
                                       source goods                                                                                                                 The model attributes values to these
                                                                                                                                                                    multipliers for a range of simulat-
                                                                                                                                                                    ed, direct and spillover impacts,
                                                                                   LOCAL FARMS
                                                                                  AND BUSINESSES                                                                    allowing users to: (1) describe the
                                                                                                                                              Trade with outside/
                             a
                                                                                                                                               non-local markets
                                                                                                                                                                    manner in which tourism stimulates
                                                                                                                                                                    local economies, (2) clarify returns
                                                                                                                                                                    on public investment in protected
                                        Direct Impact                                       Legend of Pathways of Influence
                                                                                                                                                                    areas, (3) understand impacts of
                                                                                            a. Direct impacts                                                       economic conflicts and shocks, and
                            Indirect impact through                                         b. Production linkages
                                production linkages                                                                                                                 (4) estimate the effects of govern-
                                                                                            c. Income and consumption linkages
                                                                                                                                                                    ment policies.

                            Source: Adapted from Taylor and Filipski 2014.
P RO MOT I N G S USTAIN AB L E PROTE CTE D AR E A TOU R IS M TO B ENE F IT LO CAL E CONOM I ES   11

figure es-2 Income Multipliers, 2019                                                                                    What did the study find?
                               3.00                                                                                     Tourism in protected areas generates
                                                                                                                        significant income multipliers. Income
                               2.50                                                                                     multipliers from tourism are greater than one
                                                                                                                        in all country cases, showing that local market
                               2.00
Income multiplier

                                                                                                                        linkages are strong, and amplify tourist spending
                                                                                                                        (Figure ES-2); the multipliers also suggest that
                               1.50                                                                                     income leakage from local economies is not
                                                                                                                        considerable. Multipliers across the four country
                               1.00                                                                           1.83      cases are also consistent, suggesting that a
                                           1.82                               1.78            1.74
                                                               1.53
                                                                                                                        healthy protected area tourism sector provides
                               0.50
                                                                                                                        similar income gains to local households across
                                                                                                                        a variety of contexts, despite variations in per
                               0.00
                                        Zambia              Zambia          Nepal            Brazil           Fiji      tourist spending and numbers of visitors.
                                      Lower Zambezi       South Luangwa     Chitwan         Abrolhos       Mamanuca
                                                                          National Park    Marine Park      Islands     Benefits are broad and help the poor. The
Source: World Bank                                                                                                      study reveals that tourism benefits households
                                                                                                                        directly involved in the tourism sector and those
                                                                                                                        indirectly linked with the sector. Households
figure es-3 Income Multipliers by Household Type, 2019                                                                  benefit directly and indirectly through pro-
                                                                                                                        duction and income linkages - when tourism
                                                                Poor        Non-poor           Island                   operators hire local people and buy local
                                                                                                                        goods, and when households spend wages or
                                  2
                                                                                                                        businesses spend profits earned through the
                                1.8
                                1.6                                                                                     tourism sector. Study findings reveal that despite
     Income multiplier

                                1.4                                                                                     the larger multiplier shares of non-poor house-
                                1.2                                                                                     holds in most instances (Figure ES-3), tourism
                                  1                                                                                     appears to benefit the poor more, as normal-
                                0.8                                                                                     izing multiplier shares by populations of poor
                                0.6
                                                                                                                        and non-poor residents (Figure ES-4) shows that
                                0.4
                                0.2
                                                                                                                        the multiplier shares per resident are higher for
                                  0                                                                                     poor residents than for non-poor in all country
                                             Lower              South       Chitwan        Abrolhos       Mamanuca      case studies but one.
                                            Zambezi            Luangwa    National Park   Marine Park      Islands
                                                                                                                        Tourism in protected areas also creates signifi-
                                                      Zambia                 Nepal          Brazil           Fiji
                                                                                                                        cant job opportunities. Jobs are created directly
Source: World Bank                                                                                                      through tourism activities, and indirectly by
                                                                                                                        stimulating local economies. Beyond the number
                                                                                                                        of jobs, the share of employment supported
Figure es-4 Normalized Income Multipliers by Household Type, 2019
                                                                                                                        by the tourism sector is substantial. In Zambia,
                                                                                                                        tourism in protected areas generated jobs for
                                                                 Poor         Non-poor           Island
                                                                                                                        14 and 30 percent of working age populations
                                                                                                                        around the Lower Zambezi and South Luangwa
                                100%                                                                                    Parks, respectively. In Nepal, tourism-related
                                                                                                                                                                                     E xe cu t iv e Summary

                                                                                                                        jobs around Chitwan National Park are held by
                                80%
    Percentage of Multiplier

                                                                                                                        3 percent of the working age population, while
                                60%
                                                                                                                        in Brazil’s coastal region this figure is 12 per-
                                                                                                                        cent. Tourism in Fiji’s Mamanuca Islands created
                                40%                                                                                     8,304 jobs (through direct and indirect channels),
                                                                                                                        employing 13 percent of the local population in
                                20%                                                                                     the Mamanucas and adjoining coastal areas. The
                                                                                                                        study accounts for jobs such as hotel employees,
                                  0%                                                                                    tour operators, and restaurant workers, and those
                                             Lower              South       Chitwan        Abrolhos       Mamanuca
                                            Zambezi            Luangwa    National Park   Marine Park      Islands      employed as a result of the increased demand
                                                      Zambia                Nepal           Brazil          Fiji        for goods and services catalyzed by tourism
                                                                                                                        in sectors such as retail, services, and in some
Source: World Bank
                                                                                                                        instances agriculture, livestock, and fishing.
12   BA NKI NG ON PROTE C TE D A RE A S

                                                                   Protected areas can impose costs on commu-          million in Lower Zambezi, South Luangwa and
                                                                   nities which must be managed. Human-wildlife        Chitwan National Parks, respectively. Similarly,
                                                                   conflict around terrestrial protected areas, and    marine protected areas may cause short-term
                                                                   fishing restrictions in marine protected areas,     income loss by restricting fishing, a major means
                                                                   can cause critical short-term income loss to        of livelihood. Often, those suffering the negative
                                                                   households which should be mitigated through        effects of proximity to protected areas may not
                                                                   avoidance measures and timely compensa-             be major beneficiaries of tourism, and these im-
                                                                   tion. In 2019, wildlife caused crop losses of 14    balances should be redressed in order to build
                                                                   percent around the Lower Zambezi National           much-needed community support.
                                                                   Park and 11 percent at South Luangwa National
                                                                                                                       Public investment in protected areas pays off,
                                                                   Park in Zambia, and 9 percent around Chitwan
                                                                                                                       and generates high economic returns. Rates
                                                                   National Park in Nepal. Over this period, these
                                                                                                                       of return on government spending are signifi-
                                                                   losses were estimated at US$1.8, 1.2 and 2.9
                                                                                                                       cantly greater than one, making protected areas
                                                                                                                       valuable economic assets. As noted, tourism
                            figure es-5 Annual Estimated Rate of Return on Government                                  triggers direct and indirect economic impacts in
                            Spending, 2018–2019                                                                        local economies, which in turn generate rates
                                                                                                                       of return on government spending of between
                                              35                                                                       $6.2–$-28.2 for every public dollar invested.
                                              30                                                                       This accrual of economic benefits relative to
                                                                                                                       government investment in protected areas
                                              25
                             Rate of Return

                                                                                                                       reveals the potential of these areas to promote
                                              20                                                                       green economic recovery and support sustain-
                                              15                       28.2                                            able development.
                                              10                                                                       Together, these findings make the case for gov-
                                                       16.7
                                               5                                                                       ernments to promote sustainable and inclusive
                                                                                         6.2               7.6
                                                                                                                       tourism in protected areas to stimulate econom-
                                              0
                                                                                                                       ic growth and create jobs. Caution is warranted
                                                     Zambia          Zambia             Brazil           Nepal         when drawing lessons from the four country
                                                   Lower Zambezi   South Luangwa       Abrolhos          Chitwan
                                                                                      Marine Park      National Park   case studies, however. For example, because
                                                                                                                       the study uses a static model, it cannot account
                            Source: World Bank
                                                                                                                       for fluctuations in natural resources which
                                                                                                                       affect incomes, or the negative environmental
                                                                                                                       impacts of tourism, both of which may reduce
                            figure es-6 Framework for Sustainable Tourism in Protected Areas                           the economic benefits of tourism in protected
                                                                                                                       areas. Also, the model does not account for the
                                                                                                                       value of other ecosystem services supplied by
                                                                                                                       protected areas, the focus on local economies
                                                                                                                       neglects the wider economic advantages of
                                                                                                                       tourism, and lack of data prevents the mod-
                                                                                                                       el from capturing all economic linkages and
                                                                                                                       effects. These constraints, when addressed, will
                                                                                                                       increase economic impacts. Finally, the results
Ex ecu tiv e Summary

                                                                                                                       cannot be easily generalized, as individual sites
                                                                                                                       do not represent the entire protected area
                                                                                                                       system in a given country, which may contain
                                                                                                                       both tourist hotspots and areas in which tourism
                                                                                                                       is not viable.

                            Source: World Bank
P RO MOT I N G S USTAIN AB L E PROTE CTE D AR E A TOU R IS M TO B ENE F IT LO CAL E CONOM I ES   13

What lessons can countries draw                        Monitor Visitors and Impacts. To make the
from the study?                                        case for public spending, and to aid planning,
                                                       governments and conservation agencies should
While the findings of this study cannot be ap-         regularly assess the impacts of protected area
plied to all protected areas, they offer lessons       tourism, and use surveys to capture visitor num-
from diverse settings from which policies can          bers, tourist spending, and seasonal changes in
be tailored. Central to all efforts, however, is       tourism behavior. Such information can shape
the need to fund and manage protected areas            policies, improve tourist services, assist local
well, promote tourism and diversify its offerings,     communities, refine tourism business models,
and share benefits with local communities fairly.      and demonstrate the economic returns of in-
Taken together, these three factors can enhance        vesting in protected areas.
development outcomes, secure biodiversity
assets and support economic recovery from the
pandemic.                                              recommendation 2
                                                       Grow and Diversify the Business
recommendation 1                                       Diversify Tourism Offerings. In many countries,
Protect the Asset                                      protected area tourism is focused on a few key
                                                       locations, which concentrate both positive and
Formalize Protected Areas. To protect these            negative tourism impacts. In the countries fea-
natural assets, it is necessary to formalize their     tured in this study, this concentration of visitors
status. Even if this action restricts resource use,    at well-known sites makes it important to ex-
such losses may be offset, as exploited wild           pand the number of protected area sites, and to
stocks recover and disperse under formal pro-          select priority sites on the basis of road access,
tection. Formalization also confers authority on       security, biodiversity, landscape attractions, and
governments to raise environmental standards           local stakeholder interest in tourism. To dilute
and reduce the negative impacts of tourism,            negative impacts, the study also advocates the
and this demonstrated commitment to conser-            selection of an expanded network of protected
vation can stimulate private sector investment in      areas for phased tourism development, based
tourism services.                                      on various desirability and feasibility criteria
Increase Public Investment in Protected Area           through which sites can be ranked to identify
Management. The study advocates strongly for           optimal opportunities for private sector partici-
investment in protected area management; and           pation and community benefits.
to accomplish this, it supports the use of finan-      Develop Concessions Policies. Another
cial instruments such as public budgets, as well       means to promote tourism in protected areas
as innovative mechanisms to tap private sector         is through concessioning, which can enhance
resources such as conservation trust funds,            park operations through managing and financing
carbon finance, conservation bonds and collab-         infrastructure, and providing services such as
orative public-private management partnerships.        accommodation, food, merchandise, recreational
Build Capacity of Protected Area Managers.             activities, rental equipment, and transport. Similar
To deliver the benefits described in this study,       approaches to outsource tourism development
protected areas must be well managed, and              may include leases, management contracts, and
the underlying factors associated with poor            licensing, and such mechanisms should stipulate
                                                       key terms and conditions for business operation,
                                                                                                                    E xe cu t iv e Summary

performance must be addressed. Successful
protected areas have qualified managers who            such as duration, type of operation, environmen-
understand protected area laws and policies,           tal conditions, and fees for access. Concessions
and the business needs of tourism operators            programs should include strong protected
and commercial entities. For example, managing         area laws and regulations, public support for
commercial visitor services requires abilities that    proposed commercial activities, demonstrat-
go beyond the skills of wildlife management,           ed economic benefits, stakeholder input into
and this capacity must be built.                       concession operations, and legal frameworks to
                                                       support implementing agencies.
14   BA NKI NG ON PROTE C TE D A RE A S

                                                       recommendation 3                                     and help to secure support for conservation
                                                       Share the Benefits                                   from local communities who are critical ben-
                                                                                                            eficiaries and conservation allies. The study
                                                       Formalize Benefit Sharing. As noted, protected       stresses the need for well-managed compensa-
                                                       area neighbors are essential stakeholders, and       tion payouts that are timely and transparent. The
                                                       sharing benefits in these communities across         determination of losses to park neighbors, such
                                                       poor and non-poor households is key to main-         as crop losses, is very difficult, and the study
                                                       taining protected area integrity. Perhaps most       also advocates further research, standardized
                                                       importantly, these benefits should be distributed    methods for estimating crop losses, and local
                                                       fairly by including the poor and disadvantaged,      level management actions, such as seasonal
                                                       and the study recommends that policies be            fences and the corralling of livestock, to mitigate
                                                       put in place to enable this. Advocated benefit       losses and build park-neighbor relations.
                                                       sharing approaches include direct and indirect
                                                       employment, revenue sharing by protected             In conclusion, the pandemic has affected econ-
                                                       area authorities, revenue sharing schemes from       omies globally, leading to large losses in tourism
                                                       tourism businesses and partnerships, sustain-        revenue, and a weakened, under-financed
                                                       able utilization of plants and animals, and shared   conservation sector at a time of unprecedented
                                                       decision making and capacity building.               threats to the biosphere. In such a context, the
                                                                                                            message of this study is crucial – countries must
                                                       Strengthen Income Multipliers. Because               champion sustainable and inclusive tourism in
                                                       tourism is the strongest lever for delivering        protected areas in order to recover from the
                                                       protected area benefits to communities, govern-      pandemic, conserve biodiversity, and promote
                                                       ments should assist households to participate in     sustainable development. This study reveals
                                                       the tourism economy through entrepreneurship         that conserving biodiversity and promoting tour-
                                                       training, skills development, credit services and    ism can together be compatible with a green,
                                                       logistics; governments should also support busi-     post-pandemic revival that is driven by govern-
                                                       ness diversification, and local procurement to       ments and the private sector, and yield high
                                                       strengthen linkages in local economies, prevent      returns from protected area investments. And in
                                                       leakage and increase multipliers.                    responding to a pandemic that has heightened
                                                       Mitigate and Compensate for Human-Wildlife           awareness of inequality, protected area tourism
                                                       Conflict. Mitigation and compensation are            should distribute its benefits fairly in response
                                                       fundamental to managing human-wildlife conflict      to development needs, and losses incurred by
                                                                                                            protected area stakeholders.
Ex ecu tiv e Summary
P RO MOT I N G S USTAIN AB L E PROTE CTE D AR E A TOU R IS M TO B ENE F IT LO CAL E CONOM I ES   15

                                                                                                      E xe cu t iv e Summary
16   BA NKI NG ON PROTE C TE D A RE A S

                             1

                        Introduction
In tro duc tio n
P RO MOT I N G S USTAIN AB L E PROTE CTE D AR E A TOU R IS M TO B ENE F IT LO CAL E CONOM I ES   17

1.1 the state of biodiversity

Biodiversity has been declining globally at an               billion people depend on marine and coastal
alarming rate. Scientists warn that the world may            biodiversity for their livelihoods (UNDP n.d.)
be in the midst of its sixth mass extinction event,          and around 1 billion people depend to some
this time caused by human activity (Barnosky                 extent on wild meat, plants, mushrooms and
et al. 2011; Ceballos, Ehrlich, and Raven 2020;              fish (FAO and UNEP 2020). Biodiversity and
Wake and Vredenburg 2008). A recent report of                ecosystem services also underpin a significant
the Intergovernmental Science-Policy Platform                number of jobs. Around 60 million people are
on Biodiversity and Ecosystem Services (IPBES)               employed worldwide in fishing and fish-farming
- Global Assessment Report on Biodiversity and               (FAO 2020), and an estimated 45 million jobs
Ecosystem Services (IPBES 2019) - estimates                  are provided by the formal forest sector (FAO
that over one million species are threatened with            and UNEP 2020). Biodiversity and healthy
extinction. The 2020 Living Planet Index reported            ecosystems mitigate climate change, while the
an average decline of 68 percent in monitored                conversion of these systems increasingly risks
vertebrate species populations between 1970                  spillovers i.e. the emergence of zoonotic diseas-
and 2016 (WWF 2020), while only three percent                es in humans (Gibb et al. 2020).
of the ocean was free from human pressure in
                                                             The greatest pressures on biodiversity stem
2014 (IPBES 2019).
                                                             from habitat loss, fragmentation, and degrada-
Biodiversity matters because of its intrinsic                tion (IPBES 2019). Land use change has caused
value, and because biodiversity and ecosys-                  70 percent of global biodiversity loss (WWF
tem services underpin human well-being,                      2020). Demand for agricultural land to meet
livelihoods, and many of the Sustainable                     growing food needs has degraded land sur-
Development Goals. As biodiversity declines,                 rounding protected areas, leading to reductions
so does the health of ecosystems on which key                in species richness and abundance (Newbold et
sectors such as agriculture, fisheries, and water            al. 2014). Studies also show the impact of roads
utilities rely. Moreover, conserving biodiversity            and infrastructure development on species
is important for the world’s poor because their              decline (Benítez-López, Alkemade, and Verweij
livelihoods are linked to and dependent on                   2010). Other threats to biodiversity include
natural ecosystems, and renewable natural                    over-exploitation of natural resources (including
capital makes up 23 percent of the wealth in                 hunting, fishing, and logging), pollution, invasive
low-income countries (World Bank forthcoming).               species, and climate change (IPBES 2019) (see
Forests and trees provide vital resources to 1.3             Figure 1) (WWF 2020). Similarly, threats to marine
billion people (World Bank 2016b), over three                ecosystems include pollution, overfishing, and

figure 1 Drivers of Species Decline for Animal Groups
                                                                                                                          In t ro duc tio n

       Birds
                                                                                       Habitat degradation/loss

  Mammals                                                                              Exploitation
                                                                                       Invasive species & disease
     Fishes                                                                            Pollution
                                                                                       Climate change
Reptiles and
 amphibians

               0%           20%         40%         60%         80%         100%

Source: WWF 2018
18   BA NKI NG ON PROTE C TE D A RE A S

                                                   marine litter. Climate change is expected to drive                 The year 2020 was positioned to be a “su-
                                                   biodiversity loss, intensify other drivers, and lead               per year” for biodiversity. A number of global
                                                   to higher extinction rates (Newbold 2018).                         conferences, including the Fifteenth Meeting
                                                                                                                      of the Conference of the Parties (COP-15) of
                                                   These threats are significant. One third of the
                                                                                                                      the Convention on Biological Diversity (CBD),
                                                   world’s terrestrial protected areas—2.3 million
                                                                                                                      were planned to stress threats to biodiversity
                                                   square miles—are threatened by road expan-
                                                                                                                      and their impacts on development. COP-15
                                                   sion, grazing, and urbanization (Jones et al.
                                                                                                                      aimed to bring countries together to examine
                                                   2018), while about two-thirds of the world’s
                                                                                                                      progress toward the Aichi Biodiversity Targets
                                                   oceans showed signs of increased human
                                                                                                                      and to negotiate a post-2020 global biodiver-
                                                   impact between 2008 and 2013 (Halpern et
                                                                                                                      sity framework (CBD 2019) to address growing
                                                   al. 2015), with climate change driving most of
                                                                                                                      threats. The delayed CBD COP-15 will now be
                                                   these impacts (IPCC 2019). Over 30 percent of
                                                                                                                      held in 2021 and will deliberate the key roles of
                                                   fisheries are overfished (FAO 2020). An average
                                                                                                                      protected areas in conserving biodiversity and
                                                   of 13,000 pieces of plastic litter can be found
                                                                                                                      addressing global biodiversity decline.
                                                   on every square kilometer of ocean (UNDP n.d.)
                                                   and it is estimated that 4.8–12.7 million metric
                                                   tons of plastic waste enters the oceans every
                                                   year (Jambeck et al. 2015).

                                                   1.2 benefits of protected areas

                                                   Protected areas, defined by IUCN as “area[s]                       of the carbon sequestered by all land ecosys-
                                                   of land and/or sea especially dedicated to                         tems (Melillo et al. 2016). Fully protected marine
                                                   the protection and maintenance of biological                       areas also build resilience against the effects of
                                                   diversity, and of natural and associated cultural                  climate change (Roberts et al. 2017).
                                                   resources, and managed through legal or other
                                                                                                                      Protected areas also support development and
                                                   effective means,” are critical to maintaining the
                                                                                                                      are informally dubbed as “engines of develop-
                                                   earth’s biodiversity. Protected areas conserve
                                                                                                                      ment,” because of their economic contribution
                                                   biodiversity, maintain habitats and species pop-
                                                                                                                      to communities living around them (den Braber,
                                                   ulations, and confer resilience to climate change
                                                                                                                      Evans, and Oldekop 2018; Ferraro, Hanauer,
                                                   (Duraiappah et al. 2005; Edgar et al. 2014;
                                                                                                                      and Sims 2011). Naidoo et al. (2019) analyzed
                                                   Geldmann et al. 2013; Leverington et al. 2010;
                                                                                                                      socioeconomic and health data for 87,033 chil-
                                                   Melillo et al. 2016; Roberts et al. 2017; Watson
                                                                                                                      dren and 60,041 households in 34 developing
                                                   et al. 2014). These areas provide ecosystem
                                                                                                                      countries and concluded that people living near
                                                   services such as food and water, sediment
                                                                                                                      protected areas are better off; households near
                                                   retention, and carbon storage. Well-managed
                                                                                                                      protected areas were on average 20 percent
                                                   marine protected areas have been shown to
                                                                                                                      wealthier, had a 26 percent lower probability of
                                                   have five times more large fish biomass and
                                                                                                                      being poor than those farther away, and were
                                                   fourteen times more shark biomass than fished
                                                                                                                      healthier. Protection of poor areas has also been
                                                   areas (Edgar et al. 2014). In addition, protected
                                                                                                                      found to reduce both poverty and deforestation,
                                                   areas provide landscape immunity1 in the form
                                                                                                                      on average (Ferraro, Hanauer, and Sims 2011).
                                                   of undisturbed habitats which separate people
In tro duc tio n

                                                                                                                      A study in Nepal showed that protected areas
                                                   and wildlife, and from which zoonoses are less
                                                                                                                      reduce poverty without increasing inequality, and
                                                   likely (Reaser, Tabor, et al. 2020). With increas-
                                                                                                                      that these benefits were greater when a larger
                                                   ing urbanization, the role of protected areas in
                                                                                                                      proportion of the area was protected (den Braber,
                                                   providing clean water is significant, as a third of
                                                                                                                      Evans, and Oldekop 2018). Marine protected
                                                   the world’s 100 largest cities rely on protected
                                                                                                                      areas, too, reduce poverty through improved fish
                                                   areas for drinking water (Dudley and Stolton
                                                                                                                      catches, benefits to health and women (Leisher,
                                                   2003). Terrestrial protected areas also seques-
                                                                                                                      Van Beukering, and Scherl 2007), and improved
                                                   ter 0.5 Pg C annually—approximately one-fifth
                                                                                                                      human well-being (Ban et al. 2019).

                                                   1   J. Reaser et al., (2020) define ‘landscape immunity’ as the ecological conditions that, in combination, maintain and strengthen
                                                       the immune function of wildlife within an ecosystem.
P RO MOT I N G S USTAIN AB L E PROTE CTE D AR E A TOU R IS M TO B ENE F IT LO CAL E CONOM I ES     19

                    Many countries also reap the benefits of na-              in the Volcanoes National Park is now the
                    ture-based tourism, and from the perspective              country’s largest source of foreign exchange,
                    of this report, such tourism arguably constitutes         generating US$200 million annually (Maekawa
                    the single strongest lever to achieve sustain-            et al. 2013). Australia’s Great Barrier Reef has
                    able development goals through conservation.              been valued at AU$56 billion, contributes
                    Protected areas receive 8 billion visits a year           AU$6.4 billion per year to the economy and
                    (Balmford et al. 2015) and before the COVID-19            supports 64,000 jobs (Deloitte 2017). According
                    pandemic, tourism, including in protected areas,          to the OECD, it is projected that ocean-based
                    was a rapidly growing economic sector, provid-            industries such as marine and coastal tourism
                    ing 1 in 10 jobs globally (WTTC 2019b). Tourism           will double their contribution to global val-
                    not only creates jobs through employment in ho-           ue-added tourism by 2030 (OECD 2016). Global
                    tels and hospitality services, but also generates         coral reef tourism is valued at US$36 billion per
                    park fees and other resources for conservation            year—the equivalent of about 70 million tourist
                    and community development. In many develop-               visits to reefs (Spalding et al. 2017). In Africa,
                    ing countries, income derived from protected              a burgeoning wildlife economy contributes to
                    areas is important to the economy (Balmford et            employment and revenues through diverse ac-
                    al. 2009). In the Galapagos, tourism contributed          tivities (see Box 1) (Snyman et al. 2021), and such
                    to a 78 percent growth in income over six years,          nature-based tourism offers countries a means
                    creating the fastest growing economy in the               to use natural resources to pursue sustainable
                    world (Taylor, Hardner, and Stewart 2009) over            development.
                    this period. In Rwanda, mountain gorilla trekking

           box 1
   Wildlife-Based     A wildlife economy is defined as         Wildlife economy sectors and related activities
Economy in Africa     “wildlife, plants and animals (marine
                      and terrestrial), as an economic          SECTOR            WILDLIFE ECONOMY ACTIVITIES
                      asset to create value that aligns
                      with conservation objectives and          Agriculture       Game farming and ranching; live capture
                      delivers sustainable growth and                             and sale; cropping and culling; wild harvest-
                      economic development” (Snyman                               ing; crops and livestock
                      et al. 2021). This includes consump-      Tourism           Wildlife-based tourism; coastal tourism;
                      tive and non-consumptive uses, as                           recreation; sport fishing
                      described in Table 1.
                                                                Energy            Hydro-electric; wave energy
                      In South Africa, for example, wildlife
                                                                Fisheries         Multiple use of marine resources; freshwater
                      may be farmed on private land,
                                                                                  fisheries; aquaculture and fish ranching;
                      which has led to an increase in
                                                                                  subsistence fishing
                      game farming and growth in the
                      wildlife economy. It is estimated         Forestry          Timber; non-timber forest products
                      that the informal African Traditional     Health            Bioprospecting
                      Medicine industry is valued at
                      about US$1.4 billion per year; in         Trade and         Commercial film and photography; wildlife
                      2018, South African National Parks        Industry          products; bioprospecting; nature-based car-
                      (SANParks) revenue from the sale of                         bon credits; other payments for ecosystem
                      fauna and flora was US$1.3 million,                         services; real estate
                      and between 2005 and 2014, the            Other             Education; research, including research
                      value of South Africa’s exports of                          involving off-take; cultural activities; religious
                      CITES*-listed species was estimated                         activities
                                                                                                                                            In t ro duc tio n

                      at US$1.1 billion.

                       Source: Snyman et al. 2021
20   BA NKI NG ON PROTE C TE D A RE A S

                                                   1.3 protected area coverage

                                                   In recognizing the need to protect biodiversity                     landscape and seascape.” While this target has
                                                   and nature, and the role of protected areas                         not been fully met, countries have made signif-
                                                   in meeting this goal, several countries have                        icant progress, setting aside approximately 15
                                                   increased terrestrial and marine areas under                        percent of the planet’s land and 7.6 percent of
                                                   protection over the past decade (see Figure 2).                     its oceans (UNEP-WCMC and IUCN, 2020; see
                                                   In part, these increases reflect countries’                         Figure 3). The post-2020 framework is expected
                                                   commitments to the CBD Aichi Biodiversity                           to be ambitious, and to call on countries to set
                                                   Target 11 to conserve by 2020: “at least 17%                        aside more land for protection and biodiversity
                                                   of terrestrial and inland water areas and 10%                       conservation. Additionally, since 2018, other
                                                   of coastal and marine areas, especially areas                       effective area-based conservation measures
                                                   of particular importance for biodiversity and                       (OECM)2 have been recognized as essential to
                                                   ecosystem services, through effectively and                         achieve conservation targets outside of protect-
                                                   equitably managed, ecologically representa-                         ed area networks. As of September 2020, there
                                                   tive and well-connected systems of protected                        are 146 OECMs covering almost 61,000 km² of
                                                   areas and other effective area-based conser-                        land and over 273,000 km² of ocean (Dudley et
                                                   vation measures and integrated into the wider                       al. 2018).

                                                   1.4 protected area challenges

                                                   While Figure 3 suggests significant areas under                     and counterfeiting activities. Challenges to
                                                   protection, such areas face challenges which                        combatting wildlife crime include weak legis-
                                                   severely limit their efficacy. For example, in the                  lation and limited law enforcement capacity
                                                   Pacific Ocean’s Coral Triangle, an assessment of                    (UNODC 2020). Wildlife crime is a growing
                                                   coral reefs in marine protected areas found that                    threat to wildlife in protected areas. There are
                                                   only 1 percent of these areas were effectively                      reports of increased poaching and exploitation
                                                   managed (Burke et al. 2011). Poor management                        of natural resources in Asia and southern and
                                                   of protected areas can lead to deforestation,                       eastern Africa (Hockings, Dudley, and Elliott
                                                   which may lead to a loss of formal protection                       2020). Poaching in marine protected areas as a
                                                   through downsizing or degazetting (Mascia and                       result of poor enforcement has also been doc-
                                                   Pailler 2011; Tesfaw et al. 2018).                                  umented (Bergseth et al. 2018). A World Bank
                                                                                                                       study found that over the period 2010–2016
                                                   An analysis of the Global Database on Protected
                                                                                                                       more than US$2.35 billion was invested in
                                                   Area Management Effectiveness reported that
                                                                                                                       combatting the illegal wildlife trade in Africa and
                                                   less than a quarter of protected areas had ade-
                                                                                                                       Asia, US$948 million of which was dedicated
                                                   quate staff and budgets (Coad et al. 2019), and
                                                                                                                       to protected area management as a strategy to
                                                   that this hampered conservation, habitat man-
                                                                                                                       reduce poaching (World Bank 2016a). This is a
                                                   agement, patrolling, community engagement,
                                                                                                                       small amount compared to the estimated costs
                                                   and wildlife monitoring. Other challenges relat-
                                                                                                                       of illegal logging, fishing and trade in wildlife
                                                   ed to lack of management plans, equipment and
                                                                                                                       which are estimated to be over US$1 trillion
                                                   infrastructure, while the size and designation
In tro duc tio n

                                                                                                                       annually3 (World Bank 2019a). Illegal fishing is
                                                   of protected areas may also limit conservation
                                                                                                                       responsible for the loss of 11–26 million tons of
                                                   outcomes (Hockings 2006).
                                                                                                                       fish each year, equivalent to US$10–23 billion
                                                   The illegal wildlife trade is the fourth larg-                      (FAO 2019).
                                                   est global criminal enterprise, exceeded
                                                                                                                       Competition over natural resources intensifies
                                                   in value only by drug, human trafficking,
                                                                                                                       the challenges to protected area management.

                                                   2    An OECM is a geographically defined area other than a Protected Area, managed to achieve sustained, long-term, in-situ
                                                       conservation of biodiversity, ecosystem functions and services; and, where applicable, cultural, spiritual, and socio–economic
                                                       values (CBD, 2018).
                                                   3    More than 90 percent of these losses are from ecosystem services that forests, wildlife and coastal resources provide, and
                                                       that are not currently priced by the market, such as carbon storage, biodiversity, water filtration, and flood retention (World
                                                       Bank 2019a).
P RO MOT I N G S USTAIN AB L E PROTE CTE D AR E A TOU R IS M TO B ENE F IT LO CAL E CONOM I ES                   21
Figure 2 Growth in Protected Areas since 2010

                                                                                                                                                                      In t ro duc tio n
                                                                                                                               Source: UNEP-WCMC and IUCN 2020
22   BA NKI NG ON PROTE C TE D A RE A S

                        Figure 3 Terrestrial and Marine Protected Area Percentages Per Country
In tro duc tio n

                        Source: Adapted from Maxwell et al. (2020), using data from UNEP-WCMC and IUCN 2020.
                        Note: The figure is showing the increase in area coverage (%) per year for marine and terrestrial protect-
                        ed-area estates for countries >25,000 km².
P RO MOT I N G S USTAIN AB L E PROTE CTE D AR E A TOU R IS M TO B ENE F IT LO CAL E CONOM I ES   23

figure 4 Concentration of Biodiversity in the Tropics                           In Latin America, large scale habitat loss from
Species density distribution cross the world                                    agricultural expansion, infrastructure develop-
                                                                                ment, cattle ranching, and fires threaten fragile
                             AMPHIBIANS
                                                                                ecosystems. Human encroachment is increasing
                                                                                across the world’s protected areas as well. In
                                                                                sub-Saharan Africa, cropland coverage inside
                                                                                protected areas has increased at nearly double
                                                                                the rate of coverage in non-protected areas.
                                                                                In Latin America, outside the Amazon biome,
                                                                                agricultural pressure increased by 10 percent in
                                                                                protected areas (Geldmann et al. 2019).

                                                                                Poor management can also increase human-wild-
                                                                                life conflict, leading to loss of livelihoods for
                                                                                communities living near protected areas, loss of
                                                                                wildlife through retaliation, and diminishing sup-
                                                                                port for conservation (Hill, Osborn, and Plumptre
                                                                                2002). Over 75 percent of the world’s felid
                                                                                species are at risk through human-wildlife conflict
                               BIRDS
                                                                                (Inskip and Zimmermann 2009).

                                                                                Lack of finance and community engagement to
                                                                                support conservation are likely the most critical
                                                                                challenges to the management of protected
                                                                                areas and are discussed below.

                                                                                1.4.1 Protected Area Funding
                                                                                Research in marine protected areas has shown
                                                                                that funding is the most robust predictor of suc-
                                                                                cess for ecological outcomes (Gill et al. 2017),
                                                                                and that poorly financed protected areas
                                                                                lose biodiversity through poaching, livestock
                                                                                incursions, land grabs, and illegal mining and
                                                                                logging.

                                                                                Broadly, the global biodiversity funding gap
                             MAMMALS
Source: Pirlea et al. 2020                                                      hovers between US$598 billion and US$824
                                                                                billion per year (Deutz et al. 2020), and these
                                                                                gaps are mirrored for protected areas, which are
                                                                                underfunded worldwide (Coad et al. 2019; Gill et
                                                                                al. 2017; IUCN ESARO 2020; Waldron et al. 2017;
                                                                                Watson et al. 2014). Nearly all protected areas
                                                                                in Africa are inadequately funded, and a deficit
                                                                                of US$1 billion annually must be addressed to
                                                                                save iconic species and landscapes (Lindsey
                                                                                et al. 2018). Protected areas in Latin America
                                                                                                                                             In t ro duc tio n

                                                                                are under-funded by approximately US$700
                                                                                million annually, and this figure is likely to grow
                                                                                (Bovarnick et al. 2010). The funding needed for
                                                                                a global network of marine protected areas cov-
                                                                                ering 20–30 percent of the seas is estimated to
                                                                                be between US$5 and US$19 billion per year
                                                                                (Balmford et al. 2004).
24   BA NKI NG ON PROTE C TE D A RE A S

                        figure 5 Global Distribution of Extreme Poverty

                        Source: World Bank 2018

                                                   1.4.2 Community Benefits                                               of tourism revenues in the local economy
                                                                                                                          (Rylance and Spenceley 2017).
                                                   The tropics are home to a large share of the
                                                   world’s biodiversity, as seen in Figure 4 (Barlow                      Many governments recognize the importance
                                                   et al. 2018; Raven et al. 2020). Areas in these                        of benefit-sharing mechanisms4 (see Box 3)
                                                   latitudes also have high levels of poverty                             to garner local support for protected areas
                                                   (Figure 5). The relationship between protected                         (Spenceley, Snyman, and Rylance 2019), but
                                                   areas and poverty is, however, complex. Many                           even established mechanisms may fail to deliver
                                                   poor, rural communities depend upon natural re-                        benefits (Spenceley, Snyman, and Rylance 2019)
                                                   sources for food, fuel, and livelihoods, and may                       for reasons including, but not limited to (i) exces-
                                                   be prevented from harvesting these resources                           sive bureaucratic processes, (ii) poorly designed
                                                   from protected areas; in the short term this may                       mechanisms in which benefits do not off-set
                                                   lead to a loss of support for conservation.                            costs of conservation, are low, or are captured
                                                                                                                          by elites, or (iii) lack of agreement on means of
                                                   Local communities may bear other costs of bio-                         disbursement and recipients. It is also important
                                                   diversity conservation, such as changes in land                        to note that benefits of living around protected
                                                   tenure or governance, displacement, and the                            areas accrue collectively, while costs are borne
                                                   costs of human-wildlife conflict (see Box 2).                          by individual households (Munanura et al. 2016).
In tro duc tio n

                                                   In the absence of benefits from protected-ar-                          Research indicates that equitable and transpar-
                                                   ea tourism, communities bearing the costs of                           ent benefit-sharing may advance development
                                                   human-wildlife conflict are unlikely to support                        and conservation goals (Snyman and Bricker
                                                   conservation, while the loss of tourism reve-                          2019), and that conservation and socioeconom-
                                                   nues from local economies, known as revenue                            ic gains are more likely when protected areas
                                                   leakage, may further alienate local communities.                       pursue co-management, reduce economic in-
                                                   In Uganda’s Bwindi Impenetrable National Park,                         equalities, empower local people, offer cultural
                                                   tourism leakage was estimated at over 75 per-                          benefits and reduce negative livelihood impacts
                                                   cent (Sandbrook 2010), while in Botswana, value                        (Oldekop et al. 2016).
                                                   chain analysis showed only 37 percent retention

                                                   4    Benefit sharing mechanisms include tangible benefits such as jobs, direct income, and revenue sharing from park entrance
                                                       fees; and intangible benefits include capacity building, skills training, and cultural benefits (Spenceley, Snyman, and Rylance 2019).
P RO MOT I N G S USTAIN AB L E PROTE CTE D AR E A TOU R IS M TO B ENE F IT LO CAL E CONOM I ES     25

                     box 2
          Human-Wildlife
   Conflict Costs to Local
             Communities

                               Human-wildlife conflicts typically occur in          the park over six months was US$74 (1.5 percent
                               agricultural and production landscapes which         of median household capital asset wealth).
                               are near protected areas. The impacts of             Approximately 73 percent of respondents expe-
                               human-wildlife conflict include, but are not         rienced crop raids in which 45 percent of their
                               limited to, loss of livelihoods from crop raiding,   maize was lost to animals from the protected
                               livestock depredation, damage to property and/       area (Mackenzie and Ahabyona 2012).
                               or loss of life.                                     Global estimates of the costs of human-wildlife
                               In Bhutan, a survey of 274 households living         conflict are not available, and only 10 percent
                               near the Jigme Singye Wangchuck National             of studies on this topic have quantified its
                               Park reported a yearly average financial loss        economic impacts (Inskip and Zimmermann
                               equal to 17 percent of the total per capita cash     2009). These studies reveal that (i) direct costs
                               income due to livestock predation (Wang and          are unevenly distributed within communities
                               Macdonald 2006). Around Chebera-Churchura            (Thirgood, Woodroffe, and Rabinowitz 2005);
                               National Park in Ethiopia, a study of 145 house-     (ii) individual/household losses may be severe
                               holds estimated economic losses of US$75,234         (Woodroffe et al. 2005); and (iii) economic costs
                               caused by wildlife between 2007–2011, with 30        only partially describe social and cultural im-
                               percent of livestock lost over a three year period   pacts because livestock and produce are forms
                               (Acha, Temesgen, and Bauer 2018). In Uganda,         of wealth which enhance resilience (Dickman,
                               a survey around Kibale National Park estimated       Macdonald, and Macdonald 2011).
                               that the average financial loss for farmers around

                     box 3
  Efforts to Share Benefits
from Tourism in Protected
             Areas in Africa

                               To work towards a pro-poor distribution of ben-      revenue shares of 7.5–25 percent of fees from
                               efits, governments in several African countries      tourism and hunting benefit local communi-
                               have instituted mechanisms to share a per-           ties through development projects such as
                               centage of park and protected area entry fees        schools, clinics, bridges, water infrastructure,
                                                                                                                                             In t ro duc tio n

                               with neighboring communities. These funds are        and training programs (Mtui 2007). In Rwanda’s
                               typically invested in local projects rather than     National Parks, a 2005 scheme distributed 5
                               distributed as direct cash transfers (Mitchell and   percent of park revenues through local districts
                               Ashley 2009).                                        (Verdugo 2007), while in Namibia, members
                                                                                    of the Namibia Association of Community
                               In Kenya, local governments distribute ap-
                                                                                    Based Natural Resource Management Support
                               proximately 19 percent of tourism revenues
                                                                                    Organizations (NACSO) receive up to 40
                               under their jurisdictions to local communities
                                                                                    percent of revenues from community conser-
                               living next to protected areas including Maasai
                                                                                    vancies in the form of cash incomes, game
                               Mara National Reserve, Lake Bogoria National
                                                                                    meat, or development projects (IUCN ESARO
                               Reserve, and Samburu National Reserve.
                                                                                    2020). Spenceley, Snyman, and Rylance
                               In parks run by the Kenya Wildlife Service,
                                                                                    (2019) describe many more African exam-
                               a percentage of park fees is invested in
                                                                                    ples of revenue sharing between protected
                               community projects through their Community
                                                                                    area authorities/tourism businesses and local
                               Service department (Weru 2007). In Tanzania,
                                                                                    communities.
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