Although tourism is Costa Rica?s principal economic activity, the traditional model of sun-surf and white sand beaches has not produced an improvement in the well-being of local communities. There are territorial asymmetries, where regions with significant investments in tourism still present low human development indices. In addition, conventional tourism hasn?t managed so far to guarantee the protection of the natural resources on which it thrives, but rather it simply takes advantage of existing environmental goods and services. Over the past few years, Rural Community-Based Tourism has emerged as a powerful alternative to conventional tourism, placing local populations at the centre of tourism development. It has proved to be an effective tool for both biodiversity conservation and the reduction of poverty in rural areas.

Costa Rica?s GEF Small Grants Program has provided support to the development of Rural Community-based Tourism as a sustainable livelihood, complementary to other traditional sources of income in rural areas, which relies on endogenous cultural and natural resources and contributes to reducing the pressure on natural resources as a non-consumptive use of the environment. Community-based tourism has become the most important thematic area within the GEF Small Grants Program portfolio in Costa Rica, with over 47 local initiatives funded so far. A number of these initiatives now have a defined product and are being promoted nationally through ACTUAR.

The Project centres on the need to consolidate and expand the Rural Community-based Tourism model developed so far in Costa Rica, as an effective way to conserve biodiversity and reduce rural poverty. It seeks to articulate a series of local community-based initiatives funded so far by SGP Costa Rica, through the strengthening of ACTUAR as the national network for Rural Community-based Tourism.

Based on the tourism supply developed so far, this Project seeks to broaden the local benefits through the building of value chains which enable provision of more integrated tourism services, not just of lodging and food in isolated centers. A greater effort will be made to link local tourism initiatives with projects dedicated to sustainable production of organic produce and honey, soaps, shampoos, crafts, among other local products.

Through targeted technical assistance, the Project will seek to strengthen the quality control of products and complementary services, thus consolidating their supply. A small investment fund with partner donors will be set up for these strategic inputs.

By promoting horizontal integration, and through scaling-up community based initiatives, a greater impact and economies of scale can be obtained. A national network such as ACTUAR is important for scaling up to happen.

Both for future community-based tourism ventures in Costa Rica, as well as for the rest of the SGP program in Latin America and the Caribbean, the consolidation of the pioneering work by ACTUAR is an important tool for the development of similar national and sub-regional initiatives. The project has defined as one of its objectives to generate and share knowledge on community-based tourism in Costa Rica, and share it among the LAC SGP programs.

As an eventual result of these regional exchange processes, there is the potential to develop trans-boundary tourism routes with neighbouring countries such as Panama and Nicaragua. Existing initiatives in the border region with Panama such as those around the La Amistad International Park as well as in Talamanca and Bocas del Toro on the Caribbean Coast, as well as in the Rio San Juan on the border with Nicaragua are among areas where bi-national tourism initiatives could thrive.

Overall Impact:

Contribute to the consolidation of the incipient model of rural community-based tourism in Costa as a tool for local development and biodiversity conservation.
Outcomes:
1) Favour the access to market for existing rural community-based tourism initiatives through a promotion campaign and a marketing strategy.
2) Stimulate the development of value chain and local productive linkages around rural community-based tourism initiatives which can provide better quality services and increase the multiplier effect for incomes.
3) Facilitate access to small investments for the development of ventures and small businesses related to community-based tourism initiatives.
4) Strengthen entrepreneurial capacities of rural community-based tourism initiatives.
5) Promote environmental actions supportive of biodiversity conservation in community-based tourism initiatives.
6) Seek an increase in policy incidence and advocacy in the framework of the Alliance of Organizations for Rural Community-based Tourism to promote the scaling up and scaling out of local initiatives.
7) Promote the Exchange of experiences across Latin America through the GEF SGP network and start marketing joint ventures with neighbouring countries in Central America.