Nature based tourism (NBT) plays an important role in sustainable development, and can support economic growth, biodiversity conservation and poverty alleviation. Nature-based tourism can be a significant source of income for local communities and rural households, who often live in marginal areas with few pathways out of poverty. Proponents argue that where local communities benefit from NBT, that they are more likely to conserve wildlife and nature (for example poachers who become employed as tour guides). However, local communities near protected areas sometimes carry a large share of the costs of protected areas in the form of restricted access to land and natural resources and crop damage due to raiding wildlife.

The tourism sector is expected to grow by 3.6% in 2017 and 3.9% per year globally over the next 10 years, according to the World Travel and Tourism Council. In 2018, travel and tourism contributed USD8.8 trillion, or 10.4%, to global GDP, and the industry supported one in 10 jobs (319 million) across the world. In developing countries that depend on their natural capital assets, and figures for nature-based tourism can be substantial:

• Travel and tourism in Kenya contributes 10.5% of GDP, and provides nearly 550,000 jobs. Wildlife tourism “not only generates greater economic growth than other forms of tourism, but also has potential to do more to address poverty challenges” because wildlife tourism is more pro-poor, due to its closer linkages with the rural economy.
• In Tanzania nature-based tourism accounts for about 10% of GDP, while in Namibia, 19% of all employment (direct and indirect) has been attributed to nature-based tourism.

World Bank Group initiatives on NBT

Since 2015 the World Bank has ramped up efforts and reengaged in tourism through new initiatives due to a growing demand from countries to alleviate poverty through jobs and growth, while also protecting wildlife and conserving ecosystems. However, the relationship between nature-based tourism and poverty reduction is not straightforward. This is because:

• Local communities near protected areas sometimes carry a large share of the costs of protected areas in the form of restricted access to land and natural resources and crop damage due to raiding wildlife.
• There is often a mismatch between the high-skill labour-related demands of the tourism industry and skills levels within local communities.
• In rural areas where may be few businesses that can adequately provide adequate product and services to support the tourism sector (e.g. with food, drink, transport, craft and décor), and so these are sourced from urban centres, or are imported.
• Local people are not always the owners of tourism businesses, and so business profits are retained by non-national owners or by national investors, who are already affluent and highly skilled.

Within the World Bank, the Environment and Natural Resources Global Practice (ENR-GP) helps countries harness the potential of nature-based tourism through integrated landscape approaches that better manage multiple land-use options and layer revenue streams for both governments and communities. ENR’s portfolio includes projects that support biodiversity conservation, strengthen protected area management and tackle wildlife poaching, while incorporating carefully designed private-sector concessions and local benefit-sharing arrangements. ENR supports developing countries as they create an attractive space to embed all forms of tourism—cultural, religious, gastronomic—extending its impact beyond nature-based tourism. Global Wildlife Program (GWP) is led by the World Bank and funded by the Global Environment Facility (GEF), and has several projects with tourism components. The GWP works across 19 countries in Asia and Africa to support actions on the ground to improve wildlife and protected area management, enhance community livelihood benefits, strengthen law enforcement and reduce demand.

A portfolio review in 2017 identified nearly 25 World Bank projects, totalling over USD 800 million, with a nature-based tourism component or activity. An additional seven projects with investments of more than USD 115 million are in the pipeline. The World Bank Group supports interventions that strengthen the linkages between nature-based tourism and poverty reduction. Three main components are emphasised:

• Protect the assets: The natural assets underlying the nature-based tourism sector need to be well managed to ensure that they are maintained. Revenues will be short-lived if the tourism venture exceeds the carrying capacity of the natural ecosystems resulting in natural resource degradation.
• Grow the business: The natural site must attract a sufficient number of visitors and generate sufficient revenues to be economically viable and attractive to the private sector.
• Share the benefits: Local communities must benefit directly from the tourism activity be it through jobs and other economic opportunities, revenue-sharing arrangements, or the targeted provision of public goods (schools, roads, clinics, for example).

A snapshot of WBG projects incorporating NBT elements are summarised in the table below.