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:
- Be no more than one hour from a local airport that has reasonable connections to an international gateway.
- Be launched by individual entrepreneurs with an understanding of business, local construction, customs, natural history, interpretation and guiding, and community development, and who are willing to commit significant personal sweat equity during the start-up, while developing profession management over time.
- Be constructed in no more than one year and cost under $60,000 per room.
- Have sufficient capital to cover start-up shortfalls during the four-to-five-year break-even period.
- Have a business plan, with expansion of new lodge facilities thought through in terms of capital and land required.
- Be staffed by community members, with just under two staff per room.
- Offer long-term community member programs to develop well-trained staff, and to promote the spin-off of a variety of well-managed micro-enterprises.
- Keep marketing costs under 10% of operating costs through effective use of word of mouth, public relations, strategic alliances and the internet as the primary source of information to the market.
- Understand the source markets that drive eco tourism in the region, and devote significant time to niche marketing.
- Have, as its primary attraction, wildlife that is nearby, viewable, and is explained by qualified, skilled guides who know natural history and are fluent in the language of the visitors.
- Develop an alliance with other accommodations and tourism-related businesses to share marketing costs, offering additional services and products to individual clients, and diversifying risk.”
Read more about ecolodges:
The Business of Ecolodges, where you can download a copy of the ecolodge study.