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Ecotourism and economic growth in the Galapagos: an island economy-wide analysis

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  • TAYLOR, J. EDWARD
  • HARDNER, JARED
  • STEWART, MICKI

Abstract

This study revisits and updates a 1999 economy-wide analysis predicting that increases in tourism would result in rapid economic as well as demographic growth on the Galapagos Islands. The following six years witnessed sharp growth in tourism; a restructuring of tourism around larger cruise ships and new, larger hotels; and rapid population growth. Our findings indicate that total income (that is, the gross domestic product) of the Galapagos increased by an estimated 78 per cent between 1999 and 2005, making the Galapagos economy among the fastest growing in the world. Tourism continued to be far and away the major driver of economic growth. Nevertheless, population growth via new migration to the islands nearly erased the effect of economic growth on per-capita household income. These findings raise questions about the compatibility of ecotourism and conservation in this unique ecological setting.

Suggested Citation

  • Taylor, J. Edward & Hardner, Jared & Stewart, Micki, 2009. "Ecotourism and economic growth in the Galapagos: an island economy-wide analysis," Environment and Development Economics, Cambridge University Press, vol. 14(2), pages 139-162, April.
    • Handle: RePEc:cup:endeec:v:14:y:2009:i:02:p:139-162_00
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Galapagos Islands need tourism, says Sir David Attenborough
      by Dave Simpson in hand picked... and carefully sorted on 2009-02-19 17:23:09

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    Cited by:

    1. Ilia Alomía Herrera & Rose Paque & Michiel Maertens & Veerle Vanacker, 2022. "History of Land Cover Change on Santa Cruz Island, Galapagos," Land, MDPI, vol. 11(7), pages 1-24, July.
    2. World Bank, 2021. "Banking on Protected Areas," World Bank Publications - Reports 35737, The World Bank Group.
    3. Christopher A Kirkby & Renzo Giudice-Granados & Brett Day & Kerry Turner & Luz Marina Velarde-Andrade & Agusto Dueñas-Dueñas & Juan Carlos Lara-Rivas & Douglas W Yu, 2010. "The Market Triumph of Ecotourism: An Economic Investigation of the Private and Social Benefits of Competing Land Uses in the Peruvian Amazon," PLOS ONE, Public Library of Science, vol. 5(9), pages 1-14, September.
    4. Tanner, Michael K. & Moity, Nicolas & Costa, Matthew T. & Marin Jarrin, Jose R. & Aburto-Oropeza, Octavio & Salinas-de-León, Pelayo, 2019. "Mangroves in the Galapagos: Ecosystem services and their valuation," Ecological Economics, Elsevier, vol. 160(C), pages 12-24.
    5. Francisco López-del-Pino & José M. Grisolía, 2018. "Pricing Beach Congestion," Tourism Economics, , vol. 24(4), pages 449-472, June.
    6. Gilliland, Ted E. & Sanchirico, James N. & Taylor, J. Edward, 2016. "Tourism, Natural Resource Use and Livelihoods in Developing Countries: A Bioeconomic General Equilibrium Approach," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236214, Agricultural and Applied Economics Association.
    7. Andrea Cecchin, 2017. "Material flow analysis for a sustainable resource management in island ecosystems," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 60(9), pages 1640-1659, September.
    8. Lu Yang & Xiao Hu & Hoffer M. Lee & Yuqing Zhang, 2023. "The Impacts of Ecotourists’ Perceived Authenticity and Perceived Values on Their Behaviors: Evidence from Huangshan World Natural and Cultural Heritage Site," Sustainability, MDPI, vol. 15(2), pages 1-23, January.
    9. Andrea A. Eras-Almeida & Miguel A. Egido-Aguilera & Philipp Blechinger & Sarah Berendes & Estefanía Caamaño & Enrique García-Alcalde, 2020. "Decarbonizing the Galapagos Islands: Techno-Economic Perspectives for the Hybrid Renewable Mini-Grid Baltra–Santa Cruz," Sustainability, MDPI, vol. 12(6), pages 1-47, March.
    10. Federico Medina & Juan Pablo Bermeo & Jesus Ramos-Martin & Bernardo Bustamante & Juan Cadillo Benalcazar & Jaime Cevallos & Belén Liger & Freddy Llive & Rony Parra & Hernán Villarraga & María Eugenia , 2014. "Diagnóstico y análisis biofísico para evaluación y formulación de escenarios de desarrollo en el Archipiélago de Galápagos," Informes Técnicos CEPROEC IT2014_01, Instituto de Altos Estudios Nacionales, Centro de Prospectiva Estratégica.

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