The tourism sector operates at the intersection of environment and big business. As the industry has matured, it has had to face difficult realities with respect to its environmental impacts. Tourism businesses are looking for ways to mitigate environmental impact and positively influence environmental issues.

1. Vital Wave Consulting
Field Teams
Latin America
Argentina
Brazil
Chile
Costa Rica
Dominican Republic
Mexico
Transforming Risk into Opportunity:
Peru
Asia
India
China
Cambodia
Uzbekistan
Biodiversity & Ecosystem Services and the
Eastern Europe Tourism Sector
Estonia
Ukraine
Africa
February 29, 2012
Egypt
South Africa
Nigeria
Kenya
Christina Heyniger
Middle East Strategic Accounts & Sustainable Tourism
United Arab Emirates
Vital Wave Consulting
United States
C. Josh Donlan, PhD
Founder and Director
California (Headquarters)
Advanced Conservation Strategies

2. Introductions
C. Josh Donlan, PhD
Founder and Director
Advanced Conservation Strategies
www.advancedconservation.org
jdonlan@advancedconservation.org
Christina Heyniger
Strategic Accounts & Sustainable Tourism
Vital Wave Consulting
www.vitalwaveconsulting.com
christina.heyniger@vitalwave.com
© 2012 Proprietary.
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3. Agenda
Overview of Tourism Industry (Christina)
Pressures and Risks Facing Tourism Industry (Christina)
Biodiversity & Ecosystem Services, Risk, and Investments (Josh)
Case Study: Integrating Social Ventures with High-impact Environmental
Outcomes (Josh)
Summary of Conclusions (Christina)
Questions & Answers (Josh, Christina)
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4. Tourism Industry Overview
Tourism Industry
Environment
Business • Environmental
• International arrivals resources are critical
• 4% in 2011 to more than attractions for tourists
980 million • Environmental changes • Global: Tourism
• International travel • Changing consumer patterns accounts for
generated $US 919 billion approximately 5% of
• Travel to wilderness areas increasing
in export earnings in 2010 global carbon dioxide
• Travel to emerging markets increasing emissions
• Local: Visitors can
offer a financial
incentive to conserve,
but also threaten
The tourism industry operates at the intersection of business and environment
© 2012 Proprietary.
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5. Spend Shifters - a sea of change
Brand Asset Valuator (BAV)
1million consumers, 20 years, 50 countries, 70 brand metrics
• Exclusive 60%
• Sensuous 30%
• Daring 20%
• Friendly 148%
• Socially Responsible 63%
• Kindness/Empathy 391%
© 2012 Proprietary.
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6. Changes in Tourism as a Result of Changing
Attitudes and Values
Changing
Values
Demand for
authenticity
More
Experienced
Travelers
Risk for tourism businesses increases as desire for “authentic” travel experiences
increases
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7. Environmental Investments in the Tourism
Sector
Spectrum of approaches to coping
with uncertainty around 100% Market
environment and trying to stimulate
better outcomes.
Outcome-based
100% Charity
Reward tourism businesses or
other stakeholders based on
desired environmental or social
outcomes.
Input-based
Investments in eco-lodges with a focus on
environmental conservation or poverty
alleviation are funded by NGOs or aid
agencies. They often lacking enough business
to make them sustainable.
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8. Risk Mitigation Strategies
Biodiversity and Ecosystem Services (BES) address the root cause of the risk businesses face
Reputational
Philanthropy
Regulatory Product Adaptation
Types of Risk Risk
Operational Facing Tourism Mitigation CSR
Industry Today Strategies
Legal Liability
Biodiversity and
Ecosystem
Services
Systemic
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9. Advanced Conservation Strategies
Focused on outcomes and incentives
• Our foundation is science,
yet we work and
collaborate outside of
science to innovate and
implement new solutions
and ventures for
environmental and
sustainability challenges.
• We leverage science,
markets, design, finance,
and behavioral economics
for organizations trying to
solve problems.
© 2012 Proprietary.
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10. Ecosystem Services are especially relevant in
emerging markets
• Biodiversity & ecosystem services
• Why should the private sector care?
• How we invest in biodiversity & ecosystem services
• An non-tourism example: sustainable fisheries and sea
turtles
© 2012 Proprietary.
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11. Examples of ecosystem services
Environmental
Services:
• Clean water
• Carbon
sequestration
• Disaster
protection
• Climate change
adaptation
• Fish nursery
grounds
© 2012 Proprietary.
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12. Biodiversity and Ecosystem Services is a new field gaining
industry credibility with applications for tourism
• Biodiversity and Ecosystem Services (BES)
degradation and loss has gained business’
attention in recent years.
• Higher public awareness of BES is leading to
changes in consumer preferences and purchasing
decisions.
• Companies are holding an increasing amount of
environmental risk
Views of CEOs on threat to growth from biodiversity loss
75%
50%
25%
Turning risk into opportunities:
strategic approach, with a focus
0% on risk evaluation and mitigation.
North America Western Europe Asia Pacific Latin America
© 2012 Proprietary.
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13. Potential Investments For
Biodiversity & Ecosystem Services
Least Direct
Investment Examples
Support for extracted bio-products Logging, non-timber, hunting
Support for reduced impact use Sustainable agriculture, sustainable fisheries
Support for intact use Eco-tourism, sport hunting, wild honey
Payment for other environmental services Carbon, watershed protection
Payment for use rights Land easements, non-logging concessions
Performance-based payments for biodiversity Paying for bird breeding success, paying for
occupied wolf dens
Most Direct
© 2012 Proprietary.
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14. Potential Investments For
Biodiversity & Ecosystem Services
Least Direct Livelihoods
Investment Examples
Support for extracted bio-products Logging, non-timber, hunting
Support for reduced impact use Sustainable agriculture, sustainable fisheries
Support for intact use Eco-tourism, sport hunting, wild honey
Payment for other environmental services Carbon, watershed protection
Payment for use rights Land easements, non-logging concessions
Performance-based payments for biodiversity Paying for bird breeding success, paying for
occupied wolf dens
Most Direct Payments
© 2012 Proprietary.
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15. Potential Investments For
Biodiversity & Ecosystem Services
Least Direct Mature Markets
Investment Examples
Support for extracted bio-products Logging, non-timber, hunting
Support for reduced impact use Sustainable agriculture, sustainable fisheries
Support for intact use Eco-tourism, sport hunting, wild honey
Payment for other environmental services Carbon, watershed protection
Payment for use rights Land easements, non-logging concessions
Performance-based payments for biodiversity Paying for bird breeding success, paying for
occupied wolf dens
Most Direct No markets
© 2012 Proprietary.
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16. Potential Investments For
Biodiversity & Ecosystem Services
Least Direct Mature Markets
Mature Markets
Investment
Support for extracted bio-products
Support for reduced impact use
Support for intact use
Payment for other environmental services
Payment for use rights
Performance-based payments for biodiversity
Paying For Biodiversity &
Ecosystem Services
Directly
Most Direct No markets
© 2012 Proprietary.
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17. Part I. Shellcatch: The Real Fish Story
16% of the world’s protein ¼ of global catch is bycatch
>200 million people Seabirds & turtles
$82 billion Ecosystem impacts
© 2012 Proprietary.
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18. Part I. Shellcatch: The Real Fish Story
• Over a third of seafood is
mislabeled
• Seafood industry is
calling for systems that
ensure that U.S. seafood
is safe, legal, and
honestly labeled
• Traceability has been
challenging. Market
Opportunity
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19. Shellcatch: The Real Fish Story
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20. Part I. Shellcatch: The Real Fish Story
Least Direct Mature Markets
Investment Examples
Support for extracted bio-products Logging, non-timber, hunting
Support for reduced impact use Sustainable agriculture, “alternative
income generation”
Support for intact use Eco-tourism, sport hunting, wild honey
Payment for other environmental services Carbon, watershed protection
Payment for use rights Easements, non-logging concessions
Performance-based payments for biodiversity Paying for bird breeding success, paying for
occupied wolf dens
Most Direct No Markets
© 2012 Proprietary.
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21. Part II. Creating Innovative Solutions for
Fisheries Bycatch
The social and economic
importance of fisheries
and the biological
realities of overfishing
and bycatch result in
major tensions over
ocean resources.
© 2012 Proprietary.
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22. Part II. Creating Innovative Solutions for
Fisheries Bycatch
Adults &
Nesting Sites
Juveniles
(~40 years)
Juveniles
(~40 years)
Pacific Loggerhead Sea Turtle
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23. Part II. Creating Innovative Solutions for
Fisheries Bycatch
Juveniles
(~40 years)
U.S. Hawaiian Long-line Fishery
• Regulated Industrial
• $50 million a year
• Bycatch Measures In Place
• 17 turtles year-1 = closure
© 2012 Proprietary.
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24. Part II. Creating Innovative Solutions for
Fisheries Bycatch
Juveniles
(~40 years)
• Unregulated
Industrial
• Regulated Industrial • No Bycatch
• $50 million a year Measures
• Bycatch Measures In Place • Turtles year-1 = ?
• 17 turtles year-1 = closure
© 2012 Proprietary.
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25. Part II. Creating Innovative Solutions for
Fisheries Bycatch
• Unregulated Artisanal
• <$100,000
• Turtles year-1 = >2,000
• Scientific knowledge
• Community outreach
© 2012 Proprietary.
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26. Part II. Creating Innovative Solutions for
Fisheries Bycatch
$$
Saved sea turtles
Interfishery Bycatch Offsets
Regulated industrial fishers buy bycatch credits (avoided
mortality) in exchange for regulatory certainty around
closures.
Artisanal fishers change where and how they fish in exchange
for financial payments.
Challenge: need technology to documents and certify the
bycatch credits (avoided mortality).
© 2012 Proprietary.
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27. Part I. + Part II. = Direct, high-impact outcomes
Directly investing biodiversity services
by integrating a program with an
existing “environmental market”, and
providing opportunities for
environmental risk management.
© 2012 Proprietary.
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28. Potential Investments For
Biodiversity & Ecosystem Services
Least Direct Mature Markets
Mature Markets
Investment
Support for extracted bio-products
Support for reduced impact use
Support for intact use
Payment for other environmental services
Payment for use rights
Performance-based payments for biodiversity
Paying For Biodiversity &
Ecosystem Services
Directly
Most Direct No markets
© 2012 Proprietary.
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29. Hypothetical Case: Market-influenced &
outcome-based approach for the Sundarbans
100% Market
100%
Charity Outcome-based
Input-based
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30. Summary of Conclusions
Tourism is a valuable industry; it also relies heavily on intact
biodiversity & ecosystem services
As tourism continues to expand in response to consumer
demand trends, it puts more pressure on natural resources and
is increasingly susceptible to environmental risk
Leveraging market-influenced and outcome-based approaches
for environmental protection can help minimize risk carried by
tourism businesses and destinations, and incentivize place-
based environmental stewardship
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31. Thank You

32. Questions and Answers
C. Josh Donlan, PhD
Founder and Director
Advanced Conservation Strategies
www.advancedconservation.org
jdonlan@advancedconservation.org
Christina Heyniger
Strategic Accounts & Sustainable Tourism
Vital Wave Consulting
www.vitalwaveconsulting.com
christina.heyniger@vitalwave.com
© 2012 Proprietary.
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