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Business Essentials for Ecolodges

The International Finance Corporation’s 2004 report, “Ecolodges: Exploring Opportunities for Sustainable Business, summarized its findings, identifying the business essentials for ecolodge operators.

“Although there is no single magic formula for a profitable ecolodge, the most successful share a number of key characteristics. Ideally, an ecolodge should:

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Framework for Developing an Ecolodge

The International Finance Corporation study, “Ecolodges: Exploring Opportunities for Sustainable Business,” provides a comprehensive framework for developing and operating an ecolodge, based on the triple bottom line–ecological, economic and socio-cultural sustainability. The framework considers three phases of ecolodge development–pre-construction, construction, and operation–in its analysis. The framework published below is based on the IFC study, but modified to better reflect conditions in the U.S.
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The Business of Ecolodges

There is no hard and fast definition of an “ecolodge.” Like the term eco tourism, there are some generally accepted principles that ecolodges incorporate into their design and operation.

  • Ecolodges are designed to be in harmony with their surrounding environment; and they incorporate “ecologically-friendly” management practices, adhering to the triple bottom line–economic, social and environmental sustainability;
  • They are located in close proximity to wild, scenic or protected areas, and they strive to conserve the natural environment;
  • They enhance the economic vitality of the local communities in which they operate through local sourcing of needed materials and supplies; hiring and training of local residents; contracting with local businesses; and direct contributions to the community;
  • Ecolodges seek to preserve region’s culture and heritage through interpretive and cultural programs, and the promotion and protection of local heritage sites; and
  • In industry parlance, a lodge has less than 150 rooms. If the property with more than 150 rooms is “ecologically managed,” it could be considered an “eco-resort.”

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Eco Tourists Needed for Study

If you consider yourself an “eco tourist,” consider joining a study of the “motivations and expectations of eco tour participants.” Hilary Mllar, who attends the London School of Economics, is conducting the study for her master’s dissertation on responsible tourism.

To join the study, please send responses to the following questions to Ms Millar, h.h.millar@lse.ac.uk:

  1. What motivated you to go on an ecotour?
  2. What elements of your travels made it an “eco tour?” Did you research eco tourism before embarking on your trip?
  3. Do you consider yourself a “green consumer” in your everyday life? Has your eco tourism experience impacted your daily activities?
  4. Do you continue to travel as an “eco tourist,” after your initial experience?

State Tourism Benefits from Economic Woes

California’s tourism industry stands to benefit from the economic troubles that plague the country at large. First, international travelers are taking advantage of the weak dollar to visit the U.S. According to the California Travel and Tourism Commission California, overseas arrivals at SFO surged 10% in 2007 from the previous year.

While fewer Japanese travelers came to the state, California experienced double digit growth in visitors from China and India. In addition, the number of French travelers grew by 21% in 2007.

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Economic Impact of Heritage Tourism

The Alliance of National Heritage Areas (ANHA) released its report, Economic Impact of Heritage Tourism 2005 (PDF) that examines the financial contribution of the nation’s five largest heritage areas.

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California Benefits from Market Trends

California remains a hot travel market, and the state stands to benefit from a confluence of market and demographic trends.

  • Leisure travel is booming, even as business travel remains flat;
  • People are taking shorter vacations and longer weekends;
  • Extended families and friends are traveling together; and
  • People are looking for new destinations and authentic experiences.

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Sierra Nevada Conservancy Forums, 2005

The Sierra Nevada Conservancy summarized the public testimony from the six regional forums in 2005. The conservancy will incorporate these comments into the strategic plan it is now developing. Comments are sorted into five major topics, and grouped by region, and are available for download as PDFs.
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Eco-Lodges as Sustainable Businesses

While U.S. operators shy away from “eco-tourism,” the World Bank takes this market niche seriously. The International Finance Corporation (IFC), which is affiliated with the World Bank, launched its Environmental Business Finance Program in 2004, to spur the development of small businesses that are both environmentally and economically sustainable.

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