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Rwanda’s Ecotourism Industry Reduces Poverty

Rwanda’s Ecotourism IndustryThe Rwandan genocide in 1994 was a national tragedy resulting in an estimated 800,000 deaths in a period of 100 days. However, 27 years after the massacre, the small, landlocked nation of 12 million people is thriving. A mix of social and political factors has contributed to a thriving nation. Rwanda’s ecotourism industry also plays a significant role in alleviating national poverty.

A Closer Look at Rwanda

Over the past quarter-century, Rwanda changed its course, moving positively toward economic growth and increased prosperity. According to the World Bank, poverty in Rwanda declined substantially from 2001 to 2017, dropping from 77% to 55%. Since 1994, Rwanda has maintained political stability. Stability allowed the country to develop a cost-free and compulsory primary education system with “one of the highest primary enrollment” rates in sub-Saharan Africa.

The country instituted a universal healthcare program and made great strides in legislative gender equality. In 2019, women made up 61% of Rwanda’s parliament. The percentage of female parliamentary representation is substantially greater than most western democracies. Continued economic and social growth is necessary in order to continue poverty reduction progress.

The Role of Rwanda’s Ecotourism Industry

The International Ecotourism Society (TIES) defines ecotourism as “responsible travel to natural areas that conserves the environment, sustains the well-being of the local people and involves interpretation and education.” Ecotourism can be a tool to unite communities, build environmental awareness and grow underdeveloped economies across the world. Over the past 27 years, Rwanda capitalized on this opportunity and created a growing ecotourism industry.

Tourists flock to Rwanda to wander through hiking trails in the country’s four national parks. Others are drawn specifically to the bamboo forests where visitors can see mountain gorillas, an endangered species, in their natural habitat. According to the United Nations Conference on Trade and Development (UNCTAD), Rwanda is one of the fastest-growing tourist destinations in the world. The tourism sector in Rwanda is “more than 80% nature-based,” indicating that ecotourism forms a substantial part of the tourism sector.

Tourism in Rwanda

Rwanda’s tourism sector experienced its highest annual growth in 2019, netting more than $498 million and attracting an estimated 1.63 million tourists. For the past seven years, “tourism has been ranked as the first foreign currency earner in Rwanda,” contributing 14.9% of Rwanda’s GDP in 2018.

Rwanda’s tourism sector has increased jobs and significantly contributes to the overall growth of the country’s economy. Tourism in Rwanda employs more than 3% of the labor force. For the Rwandan government, tourism is a critical tool for alleviating national poverty, explicit in both policy and poverty reduction strategies. Not only does tourism create jobs but the wealth generated from a booming tourism industry can help facilitate a country like Rwanda in its ability to access clean water, reliable energy and sanitation services.

“Africa’s tourism industry continues to flourish and supports more than 21 million jobs, and for the developing countries, tourism is an enormous tool for sustainable development,” says Mukhisa Kituyi, former secretary-general of UNCTAD.

How COVID-19 Impacts Rwanda

Pre-pandemic, Rwanda was experiencing an economic boom. In 2019, the economy grew by more than 10%, on its way to grow further in 2020. Instead, due to COVID-19, Rwanda’s economy shrank, with a projected decrease in GDP of 0.2%. As a result of COVID-19, the World Bank projected that poverty rates would increase by 5.1%, placing an additional 550,000 Rwandans in poverty in 2021. Overall unemployment rose from 13% in February 2020 to 22% in May 2020 and 60% of workers who remained employed saw significant salary decreases.

As the pandemic forced global recessions and travel restrictions, Rwanda’s ecotourism industry took a major hit. Tourism was expected to decrease by more than 70% worldwide in 2020. Rwanda’s finance minister, Uzziel Ndagijimana, confirmed that in March and April 2020, the tourism industry missed out on roughly $10 million in revenue.

The Road to Rwanda’s Recovery

Since reopening in the summer of 2019, Rwanda’s growing ecotourism industry shows signs of recovery. While international tourism rates are down, domestic tourism rates are up in comparison to past years. According to Rwanda’s leading daily newspaper, The New Times, increased domestic tourism is expected to restore a revenue sharing program where the Rwandan government will redistribute the earnings from domestic tourism to communities living in and around the visited national parks. This policy is likely to enhance the growing ecotourism sector and aid communities that have suffered economically throughout the pandemic.

-Zoe Tzanis
Photo: Flickr

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How Ecotourism Alleviates Poverty in Nepal

Ecotourism Alleviates Poverty in Nepal
Nepal is a small country located between India and China, two of the world’s most powerful nations. Substantial foreign aid is allocated to fighting poverty in Nepal. However, inefficient governments prevent these benefits from reaching the people: one-fourth of Nepalis are living in poverty. Nepal, the birthplace of the Buddha and home to Mount Everest, also has 848 bird species, 600 plant families and more than 100 ethnic groups speaking 90 languages. Despite its ineffective leadership, Nepal’s lush natural environment has created a flourishing ecotourism industry providing business and conservation to the region. By fostering this market, ecotourism alleviates poverty in Nepal and improves life for thousands of the country’s residents.

What is Ecotourism?

According to The International Ecotourism Society, ecotourism is defined as “responsible travel to natural areas that conserves the environment, sustains the well-being of the local people and involves interpretation and education.” This definition encompasses aspects from human-environment relationships to understanding landscapes, maintaining species and learning about local cultures.

Many have debated whether zoos are a form of ecotourism or not. Despite the potential for educational value, many do not consider practices of capturing and confining wildlife as ecotourism. Wildlife should not endure any suffering from human interactions, and the interest of the animals should receive priority over humans. Ecotourism allows animals to live independently of human contact, a condition impossible to replicate in zoos.

Environmental Impact

Community-based ecotourism has been immensely successful in Nepal, especially in its rural areas. Due to sparse government regulations, the general tourism industry employs cheap yet harmful practices that have exacerbated poverty in Nepal. Thus, it has become necessary for the country to consider alternative methods of attracting revenue through tourism. With this goal in mind, Nepal has adopted the homestay model of ecotourism.

The primary goal of the homestay industry is to develop economic resilience in rural areas that can work with the environment rather than against it. This cooperation eliminates the need for large infrastructure to accommodate tourists as well as protects the environment from destruction. In a developing country like Nepal, the value of these outcomes is substantial. This system allows community members to become more involved in local tourism. Locals provide lodging, cultural education and history for compensation.

The ecotourism initiative has proven to be fruitful: of the 1.2 million tourists that visited Nepal in 2018, the majority explored natural areas. Across the country, 484 homestay houses are registered around natural sites like Chitwan National Park. These establishments also encourage the improvement of sanitation facilities like clean toilets, filtered water and pollution-free air, which are crucial to reducing poverty in Nepal.

From these homestays, tourists can travel to various nearby sites. At these sites, they can engage in activities including hiking, mountaineering, cultural immersion and rafting. These efforts propel afforestation projects and preserve biodiversity by preventing forest conversion. Community-based ecotourism has kept ancient cultures alive, protected the environment and provided economic and cultural stability to local communities.

Economic Impact

Oftentimes, people think of the environment and the economy as mutually exclusive; however, ecotourism in Nepal has challenged this mindset. Ecotourism contributes to about 4% of Nepal’s total GDP and provides varying forms of employment to about 200,000 people. These opportunities are growing for people like Pratiksha Chaudhary, who runs a homestay in the village of Dalla near Bardia National Park.

The thirty-three-year-old reflects on her initially timid nature when she began hosting guests, concerned that her rooms were not clean enough or that her food was not good enough. However, after a decade in the business, Chaudhary has found confidence in herself and in her work. She can now afford home renovations and has added two bigger rooms, tiled flooring and hot water. These additions help her remain competitive in her village’s ecotourism industry, which has experienced a doubling of homestays in the last decade. Through the income she earns, Chaudhary can also provide her son with quality education and protect her natural environment.

Protected areas across the country have created a substantial decrease in inequality and poverty in Nepal. Studies found increasing the number of protected areas in Village Development Committees from 10% to 70% led to increased prosperity for those villages. Additionally, protected areas with high tourism rates reduced the overall poverty rate, demonstrating that ecotourism alleviates poverty in Nepal.

The social and economic benefits of ecotourism do not stop there. In a study of homestay operators in Nepal, 83% reported feeling empowered. Additionally, 88% reported improving their lifestyle after opening their business. The local and tourist support these owners receive has also enabled them to maintain their cultural identities, adding further intrinsic benefits to the homestay field. These positive outcomes challenge the assumption that ecotourism only benefits the elite: data shows that homestays offer potential paths out of poverty for even the most remote villages in Nepal.

The Future of Ecotourism in Nepal

Ecotourism provides great potential for entrepreneurship and economic resilience that will ultimately help combat poverty in Nepal, especially for women. Qualitative data from a 2017 study shows that women tend to be more self-confident, financially independent and better educated in family decision-making when involved in homestay businesses.

Ecotourism and homestays have proven to be effective steps in boosting local economies and involving remote villages. However, establishing completely eliminating poverty in Nepal will require assistance from governments through policy. By expanding the availability of tools for conservation efforts and using ecotourism as an aid for other sectors like agritourism and transportation, the government could boost the economy and reach more people sustainably. As an industry, ecotourism alleviates poverty in Nepal and serves as a role model for developing countries pursuing similar endeavors.

– Mizla Shrestha
Photo: NeedPix