ECOTOURISM IN MEXICO LACKING GOVERNMENT SUPPORT

UNCLAS SECTION 01 OF 02 MEXICO 001177

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: ECON SENV MX
SUBJECT: ECOTOURISM IN MEXICO LACKING GOVERNMENT SUPPORT
AND COMMUNITY BUY-IN TO TAKE OFF



1. SUMMARY. Mexico has experienced record years in tourism
in both 2004 and 2005. Always looking for areas to improve
the already strong industry, many in Mexico support
ecotourism with hopes that the diversity of Mexico's
environment can assist in the economic advancement of local
and indigenous groups while providing similar economic
revenues that it did in other Latin countries. While the
potential for ecotourism exists, the Mexican Secretariat of
Tourism (SECTUR) continues to mostly focus its resources on
traditional beach tourism and community groups have yet to
develop adequate networks and buy-in to allow ecotourism to
occupy a larger portion of Mexico's tourist industry. The
Mexican ecotourism sector essentially operates ad hoc with
private parties attempting to have as much success as
possible with limited resources while the GOM action in the
sector is highly disorganized. END SUMMARY.

SECTUR STILL DEFINING ITS ROLE
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2. Econoff met with Lilia Rueda Garcia, Director for the
Development of Alternative Tourism at SECTUR on February 3.
According to Rueda Garcia, President Fox called for tourism
to be diversified to include ecotourism when elected and is
the first President to provide a budget for ecotourism (USD
3.8 million, 17 percent of federal funds dedicated to
ecotourism),although SECTUR's budget as a whole has declined
during his administration. From 2002 to 2004 SECTUR
attempted to expand ecotourism by constructing infrastructure
(cabanas and methods of access) mostly in 27 protected areas
near already popular tourist destinations where ecotourism
was seen as a possibility. Rueda Garcia could not state if
the infrastructure had increased ecotourism. The Secretariat
has since moved on to other areas of ecotourism development
including the development of technical and business training
materials. The agency will release its ten-year ecotourism
plan next month but admits there is a long way to go.


3. Eleven government agencies (the Ministry of Tourism,
Ministry of Environment and Natural Resources, Ministry of
Agriculture, Livestock, Rural Development, fisheries and
Food, Ministry of Social Development, Ministry of Economy,
Mexican Tourism Promotion Council, National Tourism Fund,
National Commission of Natural Protected Areas, National
Forestry Commission, National Commission for the Development
of Indigenous Towns, Rural Financing and the National Fund
for Solidarity Businesses) have some ecotourism component in
their budget (total federal budget for ecotourism of USD
22.4 million) making it difficult to determine what is being
funded by whom. SECTUR is only recently attempting to
complete an inventory of ecotourism providers and admits that
it is nearly impossible to obtain information from all
indigenous and community groups. No current system exists to
determine the amount of revenue from ecotourism due in part
to many services being provided by private foreign companies.
Rueda Garcia believes it will be difficult to improve the
world's view of ecotourism in Mexico without improvements in
security/insurance, certification and training of providers
and increased promotion. Promotion must also occur
domestically according to Rueda Garcia to teach Mexicans that
there is more to tourism than the beach. Similar to many
industries in Mexico, SECTUR noted that government incentives
are needed in order to expand ecotourism. The vast majority
of ecotourism is done by foreigners with Mexicans
participating in "typical" beach and ocean tourism in Mexico.

AN ASSOCIATION OF WILL BUT NOT RESOURCES
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4. The Mexican Association of Adventure and Ecotourism, is a
twelve year old organization with 70 members, mostly small
businesses or communities. Econoff met with the
organization's President Wendy Hesketh on January 25. Hesketh
helped rebuild the organization from near death as its
members had let its day to day operations fall into disarray.
She currently runs its out of the offices of her trade show
promotion business with a staff of one. Hesketh is the first
to admit that AMTAVE would like to do more and needs to do
more to promote ecotourism but does not have the time or
resources to do so. According to AMTAVE in the Fox
administration all social agencies see ecotourism as a
solution for the economic problems of the indigenous and have
brought their budgets together in an attempt to do so.
AMTAVE has a very negative view of SECTUR'S efforts stating
that SECTUR only completed ecotourism studies because they
were required to by World Tourism Organization's for the
International year of ecotourism.


5. Hesketh cited similar problems as SECTUR, noting that
lack of norms and certification for ecotourism operators will
prevent it from competing in the world market like Costa

MEXICO 00001177 002 OF 002


Rica. AMTAVE has received funding from the Secretariat of
the Economy to make a series of DVD's and manuals on opening
and operating ecotourism businesses. AMTAVE has also reached
an agreement with an insurance company that will insure the
tourism operators if AMTAVE acts as the program
administrator. Hesketh has played an active role in seeking
reform to the tourism law in hopes that ecotourism will be
recognized. According to AMTAVE, European tourists will
continue to go elsewhere as they demand a established
program, while the proximity of the U.S. makes it an ideal
market to tap. Hesketh's term as president ends this summer
and she has mentioned serving for another year only because
there is no one to take over. COMMENT. AMTAVE has expressed
an interest in working with international groups but it was
clear to Econoff that its good intentions will have
difficulty becoming reality without more resources. END
COMMENT.

TOURISM BUSINESS WITHOUT BASIC BUSINESS SKILLS
-------------- -


6. Pronatura is a Mexican conservation organization that
provides some ecotourism services in various parts of Mexico.
Econoff spoke with its office that connects bird watching
groups (90 percent from the U.S.) with local guides and
establishments in Veracruz. Pronatura provided Econoff with
data for its services since its inception in 2000. The data
demonstrated that revenues fell 67 percent from 2000 to 2004
and total visitors fell nearly 96 percent in the same period.
Pronatura admitted that they do not have accurate totals of
visitors or net revenue figures. The group explained to
econoff that it is the responsibility of the individual
guides or establishments that lodge the tourists to provide
statistics on how many tourists are received and how much
revenue they provide. This is often not done by small groups
or groups that change staff frequently, causing Pronatura to
often only have data for selected months of the year.


7. Norma Ferriz, director of the program in Veracruz told
Econoff that none of the direct revenue received by Pronatura
is returned to the communities. Pronatura acts as an all
inclusive tour operator. The communities receive the indirect
benefits of training in how to handle tourist groups,
information on tourists who do not demand the all inclusive
package Pronatura provides, and the ability to provide
secondary services to the tourists while they are in the
area. The organization feels that currently there is little
domestic ecotourism market as few Mexicans are willing to pay
a higher price for tourism services or the ability to see
untainted natural areas. Ferriz echoed the comments of both
SECTUR and AMTAVE that until there is more support for
ecotourism at all governmental levels and coordination
between public and private organizations and community
groups, ecotourism will not reach its potential.

COMMENT
--------------


8. Mexico's environmental diversity and the passion with
which governmental, NGO and private sector tourism contacts
spoke to Econoff demonstrated the potential for ecotourism in
Mexico. Whale watching off of the coast of Baja California
and the monarch butterfly reserves in the states of Mexico
and Michoacan can be seen as two ecotourism success stories
that began with struggles. However, the lack of resources,
basic data on the sector, and basic business practices used
by the private and not-for-profit sectors strongly show how
much must be done in order for ecotourism to be a viable
sector of the tourism industry in Mexico. Efforts must be
made to create standard operating procedures for the industry
and increase public and private partnerships before Mexico
can hope to have similar success with ecotourism as other
Latin countries.


Visit Mexico City's Classified Web Site at
http://www.state.sgov.gov/p/wha/mexicocity

GARZA