Washington DC, February 17, 2005
– Ecotourism is an increasingly popular form of tourism for people interested in local cultures and sustainable development. Today’s tourists are seeking more interactive forms of tourism, with greater respect for the social, cultural, and ecological interests of the local communities, as well as higher standards of service
.
As the ecotourism industry expands worldwide, well-planned, ecologically sensitive facilities are in high demand. This demand can be met by ecolodges. Although genuine ecolodges have been operating for less than 10 years, these innovative retreats are committed to conservation, and they appeal to tourists who value cultural sensitivity, unique locations in natural surroundings, and stylish facilities. For tourism, sustainability is not only a response to the demands of the market; it is now an indispensable condition to be able to compete successfully. But is there a business case for such a niche market?
Exploring Opportunities for Sustainable Business,
a publication prepared by IFC’s Environmental Business Finance Program, summarizes the results of research on the “triple bottom line,” emphasizing environmental, social and economic sustainability in the ecolodge sector. This study examines the business characteristics of ecolodges and their market in developing countries, in order to determine the key factors for viability. The study examines global trends that influence ecotourism around the world, potential effects on biodiversity, key factors for profitability, and the future prospects for this industry. It provides a useful tool to the public and private sectors, donors, financiers, ecolodge operators, and others who are contributing to the sustainable growth of this burgeoning industry.
The study is the first in a series of reports resulting from the Environmental Business Finance Program’s research on the market for environmentally friendly goods and services. Future publications will examine the financial viability of other sectors that have important environmental and social benefits.
The Environmental Business Finance Program (
www.ifc.org/ebfp
) works with institutions that provide financing to viable micro, small, and medium enterprises whose activities benefit the global environment.
The program responds to these SMEs’ shortage of financing; the general need to build management, technical, and environmental capacity among SMEs; and the lack of a supportive business environment for their products and services.
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
