sustainable tourism

Community-led sustainable tourism in protected areas

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Community-led sustainable tourism in protected areas

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Services
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Hospitality and Recreation
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Direct Impact
Describes the primary SDG(s) the IOA addresses.
No Poverty (SDG 1)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Reduced Inequalities (SDG 10) Gender Equality (SDG 5)

Business Model Description

Community-led Inclusive sustainable tourism value chain models with international standards that operate in protected and high environmental value areas that generate income not only by hosting tourists but by offering local high-quality gastronomy, cultural experiences, and handicrafts to visitors.

Expected Impact

Promote tourism alternatives for communities in protected areas, while enhancing women's empowerment and the protection of natural resources.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Region
  • Costa Rica: Quepos
  • Costa Rica: Uvita
  • Costa Rica: Parrita
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Services

Development needs
Although tourism has become one of the most dynamic economic activities in the country with a strong influence on the generation of jobs and wealth, the socioeconomic policies applied have not been sufficient to ensure a more equitable distribution of the dividends of economic growth among sectors and communities.

Policy Priority
Costa Rica has had as a priority the development of tourism. Since 1955 when it founded the Costa Rican Tourism Institute (ICT) in order to promote tourism based on international trends, until today, the country has been executing actions such as substantial legislation to ensure constant and regulated growth of the activity.

Gender inequalities and marginalization issues
There are more women working in the hospitality industry, but this does not mean that they occupy positions where decisions are made and, even less, that they obtain equal or higher salaries compared to the salary received by their male peers for the same work.

Investment opportunities introduction
Coastal corridor, Brunca-Caribbean corridor, Puerto Quepos are hot regions that have gained teh reputation for offering international standard eco-tourism offerings.

Key bottlenecks introduction
4.07 km of roads in poor condition, 247.9 square km with access problems to energy substations, 18.27 square km without 4G connectivity, 45.02 km with gaps in social development.

Sub Sector

Hospitality and Recreation

Development need
Develop actions to enhance cultural heritage value and improve competitiveness and social cohesion in tourism-oriented areas (14).

Policy Priority
Promote sustainable cultural tourism.

Gender inequalities and marginalization issues
COVID-19 impacted women, especially in cultural, recreational, and artistic services (27.1%) (11).

Investment opportunities introduction
gastronomic tourism, handicrafts, art and museums, visits to communities and traditions.

Key bottlenecks introduction
Disarticulation of cultural tourism ventures with the main tourist nodes of the pole.

Industry

Hotels and Lodging

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Community-led sustainable tourism in protected areas

Community-led sustainable tourism offerings based on gastronomy, handcrafts, culture and eco-tourism in protected areas
Business Model

Community-led Inclusive sustainable tourism value chain models with international standards that operate in protected and high environmental value areas that generate income not only by hosting tourists but by offering local high-quality gastronomy, cultural experiences, and handicrafts to visitors.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

> USD 1 billion

2017-2019: 59.8% of tourists visited Costa Rica for cultural reasons: museums, theaters, galleries, art, rural community, traditions and lifestyles, churches, villages, agricultural farms, dance or cooking classes, enjoyment of local gastronomy, visit botanical garden/butterfly/gardens/zoos, attend religious activities or missions, attend concerts or sports activities (8, 9, 10).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

> 25%

According to the Nielsen study on the ROI of sustainability, about 55% of consumers are willing to pay more for products and services from companies that demonstrate to generate impacts social and environmentally positive.

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Short Term (0–5 years)

The time it takes to open a commercial establishment depends on the nature of the business since the requirements vary. Permits usually include Land use permissions, operating licenses and patents, registration in the Taxpayers Registry and CCSS, policies, and insurance, health permits.

Market Risks & Scale Obstacles

Business - Supply Chain Constraints

Producers of cultural tourism services challenge linking their activity with the value-added chain of the already consolidated tourism sector (hotels, restaurants, etc.).

Capital - Requires Subsidy

Financial support is often required for the opening and consolidation of cultural and sustainable tourism initiatives.

Training

Communities usually lack the necessary tools to incubate and consolidate their ventures, which is why they require extensive training and support.

Market - High Level of Competition

It is a very specialized form of tourism that requires a specific client segment, which must be attracted through advertising and linkages.

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

Diversify the tourism hotspot towards orange and knowledge-based economic activities.

Gender & Marginalisation

Promote women's empowerment and economic autonomy. 55% of workers in the tourism industry are women but only 16% decision-making jobs are occupied by women.

Expected Development Outcome

Generate foreign exchange, jobs, income and business opportunities, helping to solve social problems such as poverty.

Contribute towards conservation and preservation of natural resources and promotes stewardship of natural and cultural resources.

Gender & Marginalisation

Contribute towards gender equality by promoting women economic and decision-making participation

Primary SDGs addressed

No Poverty (SDG 1)
1 - No Poverty

1.1.1 Proportion of the population living below the international poverty line by sex, age, employment status and geographic location (urban/rural)

Current Value

Despite tourism being an engine of development, poverty by income level in Costa Rica soared by 5.2 percentage points after Covid, reaching 26.2% of the population.

Target Value

Reducing multidimensional poverty (MPI) at least by half of current levels by 2030.

Secondary SDGs addressed

10 - Reduced Inequalities
5 - Gender Equality

Directly impacted stakeholders

People

Tourism offers employment to more than 200,000 people and contributes 6.3% of the Costa Rican GDP.

Gender inequality and/or marginalization

More than 100,000 women working in tourism in Costa Rica.

Planet

Costa Rica has 27 national parks, 58 wildlife refuges, 32 protected areas, 15 swampy wetland areas, 11 forest reserves and 8 biological reserves as well as 12 other conservation regions. As of 2019, Costa Rica received more than 300 thousand people whose tourism activity was associated with the local culture.

Corporates

Tourism represents 59.09% of the companies in the coastal and protected areas. As of 2019, Costa Rica received more than 3 million people whose tourism activity was associated with the local culture.

Indirectly impacted stakeholders

People

People living in the cluster can take advantage of and enjoy the variety of their own identity in food, music, dances, and traditions, generating healthy environments for recreation and entrepreneurship.

Corporates

The value chain associated with the tourism subcluster.

Gender inequality and/or marginalization

The empowerment of rural women is key to reducing inequality and poverty.

Planet

Strengthen the world's cultural heritage by positioning Costa Rican traditions, art, and culture.

Outcome Risks

Exceed the limits and disrespect the autonomy of native peoples and exceed the natural limits allowed for people in an ecosystem.

Failure to achieve linkages and sustainable added value to everyone involved in the value chain.

Exceeding the natural limits allowed for people in an ecosystem.

Impact Risks

Publicize and coordinate actions to make available cultural tourism more visible.

Cultural inventories of gastronomy, music, and other expressions of identity are needed.

Impact Classification

B—Benefit Stakeholders

What

Promoting sustainable cultural tourism.

Risk

Weak linkages, limited business knowledge and challenges to distribute wealth among value chain participants.

Impact Thesis

Promote tourism alternatives for communities in protected areas, while enhancing women's empowerment and the protection of natural resources.

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

Territorial Economic Strategy for an Inclusive and Decarbonized Economy 2020-2050 in Costa Rica: Transform agriculture through R&D&I towards technological innovations (1).

National Policy for Effective Equality between Women and Men 2018 -2030: Strengthen women's economic autonomy through inclusive quality employment and the use, access, and control to income, resources, and benefits (2).

Costa Rica Creative and Cultural Strategy: Develop actions to enhance cultural heritage value, improve competitiveness, and social cohesion of territories with a tourist vocation (7).

Financial Environment

Financial incentives: Banca para el Desarrollo and the MCJ establish an alliance to support and promote artistic and cultural enterprises (15). Fondo PROPYME del MICITT offers a call for creative economy projects (15).

Fiscal incentives: Income Tax Law that gives differentiated treatment to MSMEs.

Other incentives: Meetings such as "Plan Nacional de Gastronomía Costarricense Sostenible y Saludable" (National Plan for Sustainable and Healthy Costa Rican Gastronomy), cultural guides launched by the ICT and the MCJ. In turn, the ICT provides training. INA's Traditional Costa Rican Cuisine Rescue Program.

Regulatory Environment

Law 7440, Law on Public Spectacles, Audiovisual and Printed Materials: For this Law, a public spectacle shall be understood as any function, representation, transmission, or public capture that gathers, in any place, people to witness or listen to it.

Law 4788, Law that Creates the Ministry of Culture, Youth and Sports.

Law 5412, Organic Law of the Ministry of Health: to exercise control and oversight of the activities of natural and legal persons, in health matters, ensuring compliance with laws, regulations, and relevant standards.

Marketplace Participants

Discover examples of public and private stakeholders active in this investment opportunity that were identified through secondary research and consultations.

Private Sector

FUCOGA, Osa Academy of the Arts and Gallery, companies that make up the Integral Program of Culture and Art for the Osa Peninsula, National Chamber of Tourism, Costa Rican Chamber of Restaurants and Related Industries.

Government

MAG, ICT, INA, MCJ, Ministry of Health, Finca 6 Museum - Diquís World Heritage Site, Manuel Antonio National Park, Marino Ballena National Park.

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
rural

Costa Rica: Quepos

In 2019, the south pacific had a minimum demand of at least 328,523 tourists, and the middle pacific with at least 696,615 (8, 10).
rural

Costa Rica: Uvita

Manuel Antonio National Park received 513,050 residents and non-resident tourists, and Marino Ballena National Park received 171,562 (8, 10).
rural

Costa Rica: Parrita

Manuel Antonio National Park received 513,050 residents and non-resident tourists, and Marino Ballena National Park received 171,562 (8, 10).

References

See what sources were used to establish the investment opportunity’s data and find resources that could be consulted to explore more.
    • (1) MIDEPLAN (2021). Estrategia Económica Territorial para una Economía Inclusiva y Descarbonizada 2020-2050 en Costa Rica
    • (2) INAMU (2018). Política Nacional para la Igualdad Efectiva entre Mujeres y Hombres 2018-2030, PIEG
    • (3) MCJ (2020). ESTRATEGIA COSTA RICA CREATIVA Y CULTURAL 2020-2030. Mesas sectoriales.
    • (4) Asamblea Legislativa (1994). Ley 7440, Ley de Espectáculos Públicos, Materiales Audiovisuales e Impreso.
    • (5) Asamblea Legislativa (1971). Ley 4788, Ley que Crea el Ministerio de Cultura, Juventud y Deportes
    • (6) MCJ (2021). Fondo PROPYME del MICITT ofrece convocatoria para proyectos de economía creativa
    • (7) ICT (2020). Distribución de los pisos de demanda Unidad de Planeamiento Turístico.
    • (8) ICT (2020). Cantidad de visitas de residentes y no residentes a las áreas silvestres protegidas (ASP) por categoría de protección.
    • (9) ICT(2020). Principales actividades realizadas por los turistas. Período 2017-2019
    • (10) INEC (2021). Encuesta Continua de Empleo al primer trimestre de 2021 RESULTADOS GENERALES.
    • (11) BCCR (2019). ​​​​​Cuenta Satélite de Turismo 2018 Y 2012.
    • (12) BCCR (2019). Cuenta Satélite de Cultura.
    • (13) MCJ (2021). ICT y MCJ lanzan seis guías de destinos turísticos del país para invitar a los viajeros a descubrir sus rincones
    • (14) MCJ (2020). Banca para el Desarrollo y el MCJ establecen alianza para apoyar y fomentar emprendimientos artísticos y culturales.
    • (15) PROCOMER (2021). PERÚ: DE LA PROMOCIÓN DE LA GASTRONOMÍA A LA INTERNACIONALIZACIÓN DE SUPERFOODS.