Perú: Reserva Ecológica Inkaterra

Expected Outcomes

This project is expected to achieve long-term conservation of the 10,000 hectare Inka Terra Ecological Reserve and its many species of flora & fauna. This will include eliminating illegal logging; reducing hunting to sustainable levels; preventing poaching of plants and wildlife; recovering populations of endangered species; and reducing mercury pollution in local waterways.

These results will be accomplished by generating the following four outcomes:
Business Expansion
Inka Terra will significantly augment its product range by expanding its existing facilities and developing new hotels in Cusco (the gateway city to Machu Picchu) and Puno (on Lake Titicaca). This will create a network of hotels in Southern Peru which collectively provide eco-tourism and cultural experiences in three distinct zones -- the cloud forest (Cusco/Machu Picchu), the high andes (Lake Titicaca), and the rainforest (Amazonia). With a broader range of product offerings, Inka Terra will have the ability to offer stand-alone vacation packages. Consequently, its guests will tend to stay at its properties for a longer period of time, thereby increasing revenues (some of which will go towards biodiversity conservation and community development). IFC financing has been provided for these business expansion activities; no GEF funds will be utilized for this project component.

Forest Conservation and Management Plan

This project will establish and implement a Forest Conservation and Management Plan (FCMP) to guide the long-term utilization and conservation of the IER. It will provide a detailed map of the IER indicating its different types of forests and habitats. It will also include an inventory of floral and faunal species located within the reserve and their potential uses. This data will allow ITA to divide the IER into different zones so that each area will be used (or not used) in an appropriate manner based on its ecological characteristics. The FCMP will also allow ITA to develop a sophisticated program for monitoring forest conditions over time. It will also establish protocols by which local villagers will be hired to provide surveillance throughout the perimeter of the reserve and communicate any instances of illegal logging or poaching to ITA. Finally, the FCMP will describe the procedures that ITA will follow if there any such infractions. Thus, the FCMP will provide a sound basis for properly managing the IER indefinitely into the future.

Community Partnerships for Forest Conservation & Sustainable Development

This project will develop partnerships between ITA and the four communities located in and around the IER. These partnerships will reverse the current situation in which there is a tension between the conservation interests of the ecotourism venture and the livelihood interests of the local communities. Whereas the local communities currently constitute a threat to the reserve, these partnerships will allow them to become allies in helping to preserve the IER. ITA will accomplish this by establishing formal agreements with the local communities in which they will receive various forms of assistance so that they can improve their quality of life without damaging the forest. Technical assistance will allow the local communities to improve farm yields through crop rotation, soil management, and integrated pest management. ITA will also help them to breed animals (some of which they typically hunt, such as capybara and peccaries), to supplement their own food consumption and to sell in local markets. Finally, ITA’s assistance will enable the local communities to participate in reforestation programs involving native tree species that have been depleted from the reserve. In exchange for this assistance, the communities will agree to help preserve the IER and mitigate threats from outside parties. Some of the community members will be directly employed to patrol the reserve and communicate any infractions to ITA. During the process of preparing this GEF proposal, the local communities repeatedly emphasized their interest in entering into this type of strategic alliance with ITA.

Environmental Training

The project will foster awareness, support, and capacities for rainforest conservation among local, national and international stakeholders, including communities, government agencies, tourism operators, and academic groups. This will be achieved through development of a comprehensive education and research center in partnership with the Amazon Center for Environmental Education and Research (ACEER) and the National Geographic Society. The center will offer environmental education programs and support basic and applied research. It will include a biological field station, distance learning center, ethnobotanical garden, interpreted trails, and other educational facilities.

Long-Term Conservation Finance through Ecotourism Development

This project is expected to generate considerable financial resources indefinitely into the future in order to cover the annual costs of managing the IER. This will be done by constructing four new ecotourism attractions – namely, a canopy walk, monkey island tour, giant otter tour, and palm forest tour. As indicated in Figure 8 below, ITA will own these new attractions (so that it will have an asset base with which to generate ongoing revenues). InkaTerra’s wholly-owned subsidiary named Palma Real will operate, maintain and market the new attractions. In addition, Palma Real – which also owns and operates the Reserva Amazónica lodge – will transfer 20% percent of its total revenues to ITA each year.⁵ It is expected that this arrangement will lead to over $300,000 in annual revenue for ITA by 2006. After the GEF funds are fully utilized, it is anticipated that this arrangement will generate the maximum annual payment of US$400,000. But even in the worst case scenario, ITA should receive enough funds to pay for its basic operating costs, community programs, and forest management activities (see page 18). Thus, this project is expected to catalyze a self-financing protected area.

Figure 8: Project Diagram