• Executive summary - key points

1. Galapagos at risk
2. Galapagos is undergoing constant change
3. Changing tourism markets
4. Changing tour operators
5. Local benefits
6. Financing in Galapagos
7. Fishing and differences among the Islands
8. New local operators in tourism
9. Impacts of tourism
10. Leadership and governance
11. Subsidies and incentives in Galapagos
12. Conclusion

• References

GALAPAGOS AT RISK
A Socioeconomic Analysis

This document should be cited as Watkins, G. and Cruz, F. (2007). Galapagos at Risk: A Socioeconomic Analysis of the Situation in the Archipelago. Puerto Ayora, Province of Galapagos, Ecuador, Charles Darwin Foundation.
The Charles Darwin Foundation operates the Charles Darwin Research Station in Puerto Ayora, Santa Cruz Island, Galapagos Islands, Ecuador. The Charles Darwin Foundation is an Association Internationale Sans But Lucratif (AISBL), registered in Belgium under the number 371359 and subject to Belgian law. The address in Belgium is Avenue Louise 50, 1050 Brussels.

Executive summary - key points

1. During the last 15 years Galapagos has experienced drastic economic, social, cultural and ecological changes.
2. The principal cause of these changes has been economic growth driven by tourism whose gross income has increased by an average 14% each year.
3. The changes in tourism are demonstrated by the increase in available beds from 1,928 in 1991 to 3,473 in 2006, and a rise in the number of visitors to Galapagos from 40,000 in 1990 to over 145,000 in 2006.
4. Instability in the national government and a complex institutional framework in Galapagos have weakened leadership of the state in Galapagos.
5. The weak state presence, combined with municipal and provincial leadership focused on local benefits, has enabled tourism to grow without a long-term strategy.
6. Tourism markets are shifting toward higher volumes and away from the main comparative advantages of Galapagos; concurrently there is a shift toward multinational investors and operators away from local ownership.
7. At present, Galapagos tourism represents a total value of $418M, of which an estimated $63M enters the local economy.
8. Tourism, central government investments, bilateral and multilateral support, and individual donations are the largest sources of income in the Galapagos economy.
9. Fishing represents less than 4% of the total income in Galapagos. This activity was more important at the peak of the sea cucumber fishery in the early to mid 1990s.
10. The financial flows from tourism promote unregulated growth in local small enterprises, which, in turn, contributes to increased migration to the islands.
11. The local demand for public services and jobs contributes to a vicious cycle of growth. As jobs and public services are provided, they create a higher standard of living, making the islands more attractive to immigrants.
12. Subsidies and economic incentives in Galapagos have also contributed to uncontrolled growth.
13. The growth of tourism and the population stimulate the arrival of more flights and more cargo ships, decreasing the isolation of the archipelago and thereby increasing the arrival of invasive species - the greatest threat to the native biodiversity.