Continue to Develop Symbiotic Relationship with Indigenous People

1. Improving Core Business Model Beyond 10 years 5 years Continue to Develop Symbiotic Relationship with Indigenous People Increase Marketing Efforts Join Eco-tourism Associations Maintain awareness of changing climate policy Ratification of REDD and other climate and perseveration policies Contemplate offset market if regulated

2. Growth • Posada Amazonas attracts 20% of the tourist market  in the Madre De Dios region

3. Short Term: Continue to Develop Symbiotic Relationship with Indigenous People • Create a natural buffer based on settlement location between reserve location and advancing development from highway • Create vested interest so they will want to watch the park so that the source of their income is not diminished. Community surveillance is the most effective way to patrol a protected area. • Must ensure that it is of material interest for them to conserve • Make it profitable for them to be involved in ecotourism. (compensated via entrance fees, hired as guides, make handicrafts to sell to tourists, and learn to value their ecosystem for the services it can provide) • Create agro forestry and harvesting of sustainable forest products; help with distribution

4. Reasons for Agro forestry • Focus on perennials—crops which continue to produce for a number of years like citrus, manioc, vanilla, banana, mango, pepper, cacao, coffee, and rubber—as the basis of their agricultural techniques. • Growing crops like coffee, cocoa, bananas, and vanilla in the shade of canopy trees preserves more biodiversity than standard cultivation techniques. • Rubber tappers earn their principal income, which is four times higher than they would earn as city workers, from the sustainable harvesting of rubber, Brazil nuts, palm hearts, and other forest products • In the Peruvian Amazon, logging a one-hectare patch of forest generated $1,000. The annual net yield of the sustainable harvest of fruit and rubber, after deducting the cost for collecting and transport, was estimated to be $422, for a net present value of $6,330 per hectare. (Peters et al. 1989)

5. Valuing a Sustainable Harvest in Peru Land Use and Net Present Value per hectare (discount rate=5%) • Sustainable fruit, latex, and timber harvest $6,820 • Sustainable fruit and latex harvest $6,330 • Timber from Melina (Teak) plantation $3,184 • Cattle Ranching $2,960 • Timber $1,001

6. Symbiotic Relationship Benefits

7. The Power of Indigenous People • They organized an Amazon-wide blockade, which covered almost all of the Peruvian Amazon, which is sixty percent of the country. They shut down major river transportation systems, highways, and oil wells until the Peruvian Congress agreed to meet with them. After two weeks, they succeeded in getting Congress to repeal the law

8. Marketing Efforts • The International Tourism Society • Access to Ecotourism and Sustainability Conference • Improve marketing • Access to partnership opportunities • Responsibletravel.com • World’s leading travel agent for responsible holidays • Promote with PromPeru

9. Marketing Suggestions • Improve Search Accuracy • RFE’s website came up for “Peru Amazon” but not for “Peru Ecotourism” or “Amazon Ecotourism” • Capitalize of Free Publicity • New York Times The Cry of the Wild • The Economist Rumble in the jungle

10. Other Efforts • Ally with other ecotourism lodges in the area (70 in total) • This will allow for greater pull with governments • Joint marketing efforts with decrease per company costs • Differentiate from other countries (Brazil, Bolivia) • Travelers coming to see Machu Picchu near Cuzco are just one hour away by a reliable, inexpensive commercial flight to Puerto Maldonado.

11. Target Market • Target market: RFE’s clientele is 50 percent free and independent, 30 percent from international tour operators, and 20 percent from local operators. • Current visitor composition: Guests come from all over the world, with the largest number, 40 percent, from the United States. Other major markets include Europe (30 percent), Canada (10 percent), Australia (5 percent) and Peru (5 percent).

12. More Tourism Facts • The World Travel and Tourism Council ranks Peru as the fifth fastest-growing country for business travel and tourism, out of 20 in Latin America. • Machu Picchu reopens tomorrow (April 1) • Tourism expected to grow by 10% during Holy Week • In 2008, Peru hosted the APEC Summit (Asia Pacific Economic Cooperation) in Lima. The APEC Summit caused a boom in tourist arrivals

13. Profitability

14. Recent Policies • August 1, 2009: The Agreement on the Environment between Canada and the Republic of Peru(the Canada–Peru Environment Agreement) • December 18, 2009: Copenhagen Accord included REDD-plus provisions • February 18, 2010: Environmental Affairs Council within the Environment Chapter of the United States-Peru Trade Promotion Agreement (USPTPA)

15. US–Peru Free Trade Agreement • Dedicated, sector specific chapter has requirements that crack down on illegal logging. • There is a degree of scrutiny on the forest sector in Peru now • Environmental Cooperation Agreement: environmental protection, strengthening forest sector governance and capacity for related biodiversity conservation

16. Map

17. REDD+Reducing emissions from deforestation and forest degradation • Global forest loss contributes to between 12 & 15% of the total worldwide greenhouse gas emissions each year • Present value (NPV) of a REDD project in voluntary markets would range from us$614 to us$994 per hectare • If in future the UN recognizes REDD as a legitimate activity for reducing carbon emissions • REDD could be worth more than $6600 per hectare

18. REDD+ - Issues • The EU executive estimates that between 15 and 25 billion Euros are needed annually to halve deforestation by 2020. • Unlimited inclusion of forest credits in carbon markets could in fact crash the price of carbon by as much as 75% • High corruption • The Forestry Ministries in several REDD countries are the most corrupt ministries in some of the most corrupt countries in the world. • REDD schemes are open to wide abuse (Interpol)

19. Carbon Offsets • Nothing in your area of business • Risks • Destroy rainforest and no longer apply for REDD+ • Brand Image • Government Regulations in other countries • Ex. Alberta and Specified Gas Emitters Regulation • Opportunities • Future in REDD+ • When?

20. Slash and Burn • Map showing the fire sources reported in September and the first 12 days of October, 2008, for an area of 4000km2 in Madre de Dios region. • Estimated in Peru that the 80% of the deforested area is caused by agriculture (slash & burn practices)