Assessing the economic impact of protected area tourism on local economies in Brazil

Abstract

The objective of this study is to make the economic case for public investment in protected areas by estimating tourism’s direct and indirect benefits to local economies around protected areas in Brazil. The study site is the Abrolhos Marine National Park, which was established in 1983, covers over 91,000 hectares, and is roughly 67 kilometers off the southern coast of Bahia State, with its populated coastline, the Costa das Baleias (or Whale Coast). The region hosts major townships south of and including the city of Prado, namely Alcobaça, Caravelas and Teixeira de Freitas. The Park includes the five volcanic islands in the Abrolhos Archipelago, the largest whale nursery in the South Atlantic Ocean. The study affirms that investment in protected areas pays off, and is good for biodiversity conservation and the development of the local economy. The study found that the economic return per Real of government spending in protected areas is significantly greater than 1: economic returns of 6.2 Reais per Real of government spending are estimated for Abrolhos Marine National Park. Findings also show that spending by tourists visiting Abrolhos Marine National Park and the Whale Coast generates significant income multipliers for households in the local economy.