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Overcoming externalities: towards best ecotourism business practices in the Yacuma River Protected Area, Bolivia

Marcelo Arze is a specialist in sustainable tourism and ecotourism. He graduated from the Universidad Catolica Boliviana and has over 18 years of experience in community-based, protected area, and destination development in South America. Patrick J. Holladay earned his Ph.D. from Clemson University in Parks, Recreation & Tourism Management with an emphasis in Travel & Tourism. His research focuses on ecotourism, sustainable tourism for development, and community development and uses tools such as social-ecological systems resilience thinking. Ecotourism theoretically should constitute preservation/conservation (Brightsmith, Stronza, & Holle, 2008), education for locals, guides and tourists (Powell & Ham, 2008), cultural respect (Hipwell, 2007), local benefits (Stronza, 2007), local support (Winter, Esler, & Kidd, 2005) as well as be ethical (Higgins-Desbiolles, 2011) and nature-based (Honey, 2008). Yet, there continues to be debate in the literature as to the realized positive benefits of ecotourism (Das & Chatterjee, 2015). Indeed, little research describes the benefits of economic development and revenue generation from ecotourism to entrepreneurs and local operators such that it will supply a living wage and opportunities for business growth (Gentry, 2007). This field note seeks to answer the two following research questions: (1) What is needed to improve sustainability practices and competitiveness in ecotourism companies located in developing countries? and (2) What is needed to overcome the low prices paid by ecotourists due to inadequate business management and the adoption of inappropriate ecotourism practices, which lead to externalities for ecotourism operations? Answering these questions provides fundamental information, as it relates to better understanding how ecotourism operators and companies can better capture the economic benefits related to such experiences.