• 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

４．Changing tour operators

　Changes in tourism markets have also been associated with changes in the kinds of tour operators. Local operators represent about 40% of the boat owners in Galapagos, but they are losing ground against international operators (Taylor, Stewart et al., 2006). Operational costs of tourism in Galapagos are higher than on the mainland, which means that larger companies that focus on cost reduction and efficiency can provide a better product to visitors. In this environment, it is difficult for smaller companies to compete with large operators. This competition is reflected in the greater volume of visitors on larger boats (45-100 passengers) and the fact that the eight largest vessels in Galapagos earned half of the total gross income generated by all tour boats combined (Epler, 2007).

　Multinational operators are attracted to the Galapagos market because volumes have grown and the market has shifted toward travelers searching for vacation opportunities in key ecotourism locations throughout the world. The profits of multinational operators are likely to be greater than those of smaller operators, because they have market access, access to investment capital, economies of scale, greater efficiency, provide more comfort, and have well developed alliances with international and national airlines.

　Tourism in Galapagos has begun to shift away from the principal comparative advantage of nature-oriented and Darwin-linked tourism. Adventure tourism, larger cruise ships (up to 500 passengers), low-budget hotels, and activity-based tourism including sport fishing are now being offered and will have to compete with similar offers in other equally attractive locations in the world. If new visitor sites are opened, they are unlikely to meet the same high level of biological value of existing visitor sites and will therefore reduce the overall quality of a visit to Galapagos. Some visitor sites already appear to be over-visited, the quality of guides has decreased, and a shift has begun toward larger volumes of visitors rather than fewer high-paying visitors. As visitor experiences begin to decline, markets will decay and operators will be forced to reduce prices and increase marketing and infrastructure. These changes will drive tourism towards collapse as has happened in other locations (Plog, 2001).