Australia: Biodiversity Conservation and Ecotourism

By James Lee

Tourism is one of Australia's fastest growing industries. It is a major source of foreign exchange, domestic product, income, and employment. Within this sector, a trend described variously as nature-based tourism and ecotourism has emerged as a strong segment over the past few decades. The prospects for expansion of this trade, based on both international and domestic visitors, are significant. Historically, the increase of nature based and ecotourism worldwide was largely a result of the increase in awareness of the plight of the world's diminishing biological diversity and a reaction against mass tourism and its demonstrative lack of care of conservation issues.

Ecotourism is originally defined as traveling to relatively undisturbed or uncontaminated areas with the specific object of studying, admiring, and enjoying the scenery, its wild plants and animals, as well as any existing cultural manifestations found in these areas. In more recent years, ecotourism is redefined as nature-based tourism that involves education and interpretation of the natural environment and is managed to be ecologically sustainable. The concept of ecotourism has evolved over the past decade from a reaction to mass tourism to a force, which is contributing to the general greening of the tourism industry. In this sense it can be seen as a process and its importance in inducing change in the tourism industry may be more significant than its categorization as a small niche market of small operators. The greening of tourism is essential for the ecological and sociological advancement and sustainability of the industry.

Biodiversity, biological diversity, is the variety within and among living organisms and of the ecological systems they comprise. Biodiversity conservation is a relatively recent term, which originates from the concept of conservation of national parks and wilderness, wildlife, landscapes and ecosystems, and is the result of better understanding of the needs for conservation of biological diversity. Tntegration of biodiversity conservation and tourism development has emerged as an important national objective, with strong support by government, industry and the community. The National Strategy for Ecologically Sustainable Development (1992) addressed this relationship, noting that the central challenge is to develop and manage the tourism in a way which conserves its natural resource and built heritage base, and minimizes any negative environmental, societal, and cultural impacts.

The economic benefits of nature based and ecotourism can be measured in terms of the total economic value that they yield to the community. Economic benefits are customarily measured using the techniques of benefit-cost analysis, and are distinct from financial values which are associated with market transactions and cash flows of governments and private enterprises.

Total economic value has several components:

1) Direct use values, such as those derived from recreational and educational experience in natural areas.

2) Option values, comprising the value placed on having an opportunity make use of natural areas at some future stage.

3) Vicarious use values, referring to the value derived from knowing about the direct experiences of other people.

4) Existence value or the value associated with the knowledge that natural system or species continue to exist.

5) Bequest values or the value derived from the ability to bequeath natural assets to future generations.

6) Quasi-option values, which refer to the value obtained from delaying exploitative actions to learn more about the potential threats or risks to natural areas and the strategies or management practices that may be put in place to avoid or minimize adverse impacts.'

Many economic values find direct expression through market transactions, particularly for direct uses. A good example is the willingness to pay for ecotours or accommodation in natural areas. Other values may not be measurable in market data. Many people may travel long distances for a nature-based experience, without necessarily paying for use of the area. Techniques are available to measure the value of the natural implicitly, such as the travel cost method (TCM). TCM provides information on use values; it is relevant to the valuation of biodiversity only inasmuch as biodiversity or ecosystem attributes are the main factor attracting people to particular sites.

Non-use values are more difficult to measure, because markets often do not exist through which people may express their values or preferences. A celebrated study by Krutilla and Fisher (1975) introduced an interesting method (the threshold value approach) of valuing natural areas when there is only limited information on the direct value of preservation options. A commonly used technique for the valuation of natural areas is the contingent valuation method (CVM). Under this technique a hypothetical market for some natural good or service is described to a sample of subjects, who are then asked about their willingness to pay for it. The mechanism through which values are expressed is known as a "payment vehicle".

Application of CVM is one way of determining whether people are prepared to pay for the protection of biodiversity, and if so, how much. A typical application would be to determine the willingness to pay for the preservation of biodiversity in designated natural areas, by means of an entry fee, user permit or special management fund. A common misconception is that CVM is necessarily restricted to non-market or existence values; in fact it can be used to estimate the willingness to pay for direct use values. In some contexts, hypothetical markets for natural attributes could be transformed into actual markets, even for existence values. Proposals to introduce new funding mechanisms designed to protect biodiversity could be pre-tested by means of CVM and the payment vehicle could then become a reality. Such funding mechanisms include user fees, permits, and special management funds, charges collected by tourism operators and direct purchase of areas of ecological significance.

From an industry perspective, financial rather than economic values are what count: that is, net returns on their operations. Net returns are an important part of the total economic benefits accruing to the community: in a benefit-cost analysis, they are described as 'producers' surplus'.

An economic evaluation of ecotourism should include an assessment of public sector investments and other costs required to support ecotourism activity, such as roads, airports, water and sewerage and costs of managing natural areas, including information systems, site supervision and monitoring activities.

Other indirect effects of ecotourism may also be included in an economic evaluation. For example, if there is significant unemployment in a particular region, ecotourism may create new job opportunities. The value of such employment would be an important element in a benefit-cost analysis. Input-output models may be used to predict the possible role of ecotourism in alleviating regional unemployment. Care should be taken, however, in interpreting the economic significance of indirect employment effects; they may not all comprise economic benefits in the benefit-cost sense, even though their incidence may be important for particular industries or segments of the work force .

The most comprehensive survey undertaken on financial and economic values of protected natural areas in Australia is the study by Driml (1994). The main focus of the study is the Great Barrier Reef but other areas are also included. I)riml has compiled a comprehensive data set with details of the size of the area, the primary purpose of management, direct uses, the number of visitors per year, annual expenditure by tourists and financial values of other commercial activities. The study provides estimates that when combined show that every year the Great Barrier Reef, the wet tropics of Queensland, Kakadu, Uluru Kata Tjuta and Kosciusko National Parks and the Tasmanian wilderness alone generate in excess of $2 billion from tourism as set out by the table below. The main results of the survey by Driml are summarized below.

Annual Expenditure by Tourists to Six Protected Areas, 1991-1992.

Protected Area	Annual Expenditure from Tourism and Recreation ($m)
Great Barrier Reef	776
Wet Tropics	377
Kakadu National Park	122
Uluru Kata Tjuta National Park	38
Tasmanian Wilderness	59
Kosciusko National Park	640
Total	2012

Source: (Driml, p.6)

All states in Australia have developed and adopted strategies for tourism and nature-based tourism which recognize the fundamental importance of the natural resource. Some have also recognized that tourism-based activities have a basic requirement to channel some of the revenue into the management and sustenance of natural resources.

The policy and administrative mechanisms for placing values on the use of the natural resources are mostly in place. The challenge will be to design and implement systems that will not disadvantage any particular group of operators, and at the same time be of greatest advantage to the natural environment.

A draft National Strategy for the Conservation of Australia's Biological Diversity has been prepared by the Australian and New Zealand Environment and Conservation Council (ANZECC Task Force on Biological Diversity 1993), in consultation with the Agricultural and Resource Management Council of Australia and New Zealand, the Australian Forest Council, the Australian and New Zealand Fisheries and Aquaculture Council, the Australian and New Zealand Minerals and Energy Council, and the Industry, Technology and Regional Development Council. No peak tourism body was included in consultations, although the views of local governments represented by the Australian Local Government Association, business (including tourism), industry, and the conservation movement was sought. The provisions of the Convention on Biological Diversity and the draft national strategy prepared by the Biological Diversity Advisory Committee, were taken into account in the preparation of the document. The goal of the draft Strategy is to protect biological diversity and maintain ecological processes and systems. It aims to bridge the gap between current activities and the effective identification, conservation and management of Australia's biodiversity, and acknowledges the core objectives of the National Strategy for Ecologically Sustainable Development and accepts its guiding principles. The draft Strategy's primary focus is Australia's indigenous biological diversity.

The Draft Strategy covers all of Australia's biodiversity including terrestrial marine and other aquatic

ecosystems and those of external territories. The establishment of a comprehensive, representative and adequate system of ecologically viable protected areas is central to the conservation of Australia's biodiversity. In addition, the strategy recognizes the significant contribution environmentally sympathetic management of nonreserve areas can make in meeting biodiversity conservation objectives.'

Ecotourism is considered to be an incentive for conserving natural areas, a source of financial and physical resources for conservation, and a stimulus for an environmental ethic that goes beyond ecotourism. Australia will have an ecologically sustainable ecotourism industry that will be internationally competitive and domestically viable. Ecotourism in Australia will set an international example for environmental quality and cultural authenticity while realizing an appropriate return to the Australia community and conservation of the resource.

1 James, D. The application of Economic Techniques in Environmental Impact Assessment. Kluwer Academic Publishers, Dordrecht.

2 Dixon, J.A. and Sherman, P.B. Economics of Protected Areas. Island Press, Washin-ton, DC.

3 Krutilla, J.V. and Fisher, A.C. The Economics of National Environments. Johns Hopkins University

Press, Baltimore, 1975.

4 James, D. The application of Economic Techniques in Environmental Impact Assessment. Kluwer

Academic Publishers, Dordrecht.

5 Website: www.ecotourisni. com