AGROTURISM IN THE DOMINICAN REPUBLIC Case Study of Valuation of Agriculture’s Environmental Externalities Alejandro Herrera Magdalena Lizardo ROA PROJECT Oct. 2003, Rome

BACKGROUND Annually 3.0 million tourists Traditionally, the DR was known as agriculture based economy. After mid 80s tourism, export processing zones and other service activities consolidated as the most dynamic activities. Relevance of Tourism US$3,000 annual income Annually 3.0 million tourists 6% of GDP A growing interaction of tourism and agriculture as provider of direct use good, since mid 80s. Tourism and agriculture can develop a relationship of complementarity beyond the provision of direct use goods. Agriculture can enhance tourist offer of the DR by providing goods and services of indirect use in form of cultural and environmental amenities. Agro-tourism can be a way of internalizing positive externalities of agriculture by means of market mechanisms.

OBJECTIVES To identify tourist’s preference and WTP for agro-tourism in two different farming system in the DR, as well as WTP for positive environmental externalities of agriculture. To identify the determinant factors of tourist decision to enjoy agro-tourism in the DR and its WTPs for agro-tourism and positive environmental externalities of agriculture. To evaluate the potential income that the development of agro-tourism might generate based on a typology of agro-tourists interested in visiting the country.

AGRO-TOURISM Diversity of rural activities that allows tourists to know, enjoy and participate in the daily life of farming communities. Agro-tourism activities: Sampling tropical fruits and vegetables Participation in farming activities Exploration of local culture Enjoyment of landscape and agro-biodiversity Observing different agricultural practices

METHODOLOGY Survey to tourists visiting the DR Jan II- Feb I, 2003 Stratified sample of 712 tourists., error margin: 3.75% Foreigners (80.8%), Non-resident Dominicans (19.2%) Tourists older than 16 years Survey applied in three major airports (Santo Domingo 36.8%; Puerto Plata 23.17%; and Punta Cana 40%) Survey conducted by Gallup Dominicana, S.A. Survey instruments: A questionnaire Map showing major tourist attractions of the DR and distance among each other. Description of 7 most attractive tourists in the DR, as well as agro-tourist sites of Rio Limpio and San Juan de la Maguana Rio Limpio: a farming system with high incidence of organic coffee in non-irrigated land. San Juan de la Maguana: a faming system with conventional production of rice, beans and subsistence crops under irrigation.

Questionnaire Number of questions: Tourist preference for tourists activities in scale 0 to 6 -Adventures -Beach recreation -Eco-tourism -Agro-tourism -Cultural tourism -Sport tourism -Other Tourist preference for agro-tourist activities in scale 0 to 6 -Enjoying rural landscape -Farming and planting activities -Exploring local culture -Learning about organic production -Other Importance level assigned to conservation practices in agro-tourist sites in scale 0 to 6 Natural landscape conservation -Soil conservation -Efficient water Local culture conservation -Forest conservation -Other Organic production

Questionnaire…. Number of questions: 17 De-motivating factors for practicing agro-tourism in the DR in scale 0 to 6 Distance from the resort -Security -Facilities -Other Transportation cost -Attractions around agro-tourist destinations WTP to enjoy agro-tourism in DR in: i) Rio Limpio; ii) San Juan de la Maguana; and iii) Both WTP for agriculture’s positive environmental externalities or adoption of conservation practices that reduces agriculture’s negative environment externalities Demographic data and place of survey application

SANTO DOMINGO CITY RIO LIMPIO SAN JUAN DE LA MAGUANA SAONA ISLAND SUPPORT INFORMATION TO BE ILLUSTRATED IN THE MAP OF TOURIST ATTRACTIONS. SANTO DOMINGO CITY RIO LIMPIO SAN JUAN DE LA MAGUANA SAONA ISLAND ENRIQUILLO LAKE SAMANA BAY SD: Km PC: 145 Km PP: 215 Km   Is the capital city of the DR, the first city of the New World where you may enjoy visiting the National Botanical Garden, the Aquarium, Culture Museums and a tour around the Colonial City declared by UNESCO patrimony of humanity. In addition, you may enjoy the nightlife, casinos, commercial centers, crafts market, and flea markets. Around Santo Domingo, you may also visit the Lighthouse to Christopher Colombus, the Palace of National Government, the Malecón, Boca Chica Beach, the zoological park, public offices, universities, international banks, hotels, and stores. SD: 305 Km PC: 445 Km PP: 165 Km This agro-tourist place offers the opportunity to engage in the most antique and rudimentary form of agriculture of the Dominican Republic in a small community of less than 400 families whom have shown a strong commitment in order to preserve their natural resources. They subsist on the production of organic coffee, vegetables and trade exchange with Haitian communities. Here you may enjoy horseback riding, hiking, interpretation trails into organic coffee plantations, bird watching, wildlife (mammals), endemic orchids, and swimming in the Artibonito river. Around Río Limpio, you may also enjoy panoramic views of the valley and the landscaping of the National Park Nalga de Maco, which covers both Dominican and Haitian territory, Sierra Bahoruco Park, Enriquillo Lake, Cabral Lagoon, and the memorial battlefield of Dominican political independence. SD: 200 Km PC: 345 Km PP: 340 Km This agro-tourist place offers the opportunity to engage in intensive and traditional forms of rice and beans production and subsistence plantations. It also offers glimpses of taíno culture, and the religious and magical manifestations of the people in each community. In addition you may enjoy beautiful landscapes of mono-plantation. SJM is the region where most rice and beans are produced in the DR. SJM also offers pre-Columbian art, magical-religious ceremonies in the Corral de los Indios, the religious monuments Papá Liborio and the Twins of Palma Sola, aborigine dancing of palo and atabales, horseback riding, walking paths and interpretation trails into rice and beans plantations, bird watching, wildlife (reptiles), and the broadleaf forest. Around San Juan de la Maguana, it is also possible to enjoy the landscape of the second biggest intermountain valley of the country (1,800 Km2), the Yaque del Sur river (most important of the region), Enriquillo Lake, Cabral Lagoon, Sierra Bahoruco Park, Isla Cabritos Park, the thermal waters of the Cercado, and the National Park José del Carmen Ramírez. SD: 110 Km PC: 35 Km PP: 320 Km This tourist place offers the opportunity to enjoy a trip on boat from Bayahibe in the East National Park to Isla Saona, the biggest island (110 km2) adjacent to the RD. Saona was discovered by Christopher Colombus during his second trip to the New World. It was inhabited by French pirates during the XVII and XVIII centuries In addition, you may enjoy beautiful panoramic views of the marine landscape of southeastern Hispaniola, dive in the submarine sanctuary of Saona and its coral reefs, observe migrant turtles, birds, and reptiles, explore the walking paths, and engage in cave excursions. There are also pre-Columbian art, pictography, crafts, and camping to be enjoyed. Around Saona Island, it is possible to take pleasure in the attractions of the Altos de Chavón Amphitheater and Archeological Museum, Ponce de Leon’s residence, and the East National Park with its pictographic and esleographic art. PP: 365 Km This tourist site offers the opportunity to enjoy the panoramic view of the largest lake in extension of the Caribbean, where crocodiles, iguanas, snakes, turtles, fish, and migratory birds abound. In addition you may enjoy cannoning, fishing and bird watching. Around Enriquillo Lake you may also enjoy a visit to Cabral Lagoon, Sierra Bahoruco Park, Jaragua National Park, Isla Cabritos Park, and the thermal waters of the Cercado SD: 245 Km PC: 385 Km PP: 210 Km This tourist place offers the opportunity to enjoy a panoramic view of the Caribbean's largest bay (768 km2), and observe the display of thousands of hunchback whales that come from the North Atlantic Ocean, the Gulf of Maine, Canada, and Iceland during winter and spring. In this site it is also possible to enjoy fishing and boat trips to observe migrant birds. Around Samaná Bay you may also find other attractions, such as Haitises National Park and the Limón waterfall.  

Descriptive Statistics Eco-tourism and agro-tourism activities has the lowest percentage with tourist with relevant preferences (4-6 levels) and highest percentage of indifferent preference (3 level) 90% of Tourists arriving to the DR have relevant preferences for sun, beach and sand tourism. Other activities with high preference levels: cultural tourism, adventure tourism and sports tourism. Eco-tourism was offered as an activity to be enjoy in the DR to 30% of tourists and agro-tourism was offered to 19% 15% of tourists had participated in agro-tourism in the DR, just 8.4% are foreingners Prefered agro-tourists activities: rural landscape and enjoy local agricultural culture. Most important conservation practices for foreigners: natural landscape and forest conservation. De-motivating factors for practicing agro-tourism in the DR Concern for personal security -Lack of facilities -Few attraction in sites

Who wants to enjoy agro-tourism in the DR?

Organic Agriculture Farming System Rio Limpio US$109.00 Unconditional Mean WTP for Agro-tourism in Two Different Farming Systems Organic Agriculture Farming System Rio Limpio US$109.00 Irrigated intensive agriculture San Juan de la Maguana US$106.00 Both systems: US$186.00

Determinants of WTP for Agro-tourism

Determinants of WTP for Positive Externalities of Agriculture

Agro-tourist Typology

Estimation of Number of tourists interested in agro-tourism

Potential Income from Agro-tourism