Question 1. What is the explanation for the fact that although the GDP for the Province of Galapagos increased over a six-year period from 1999 to 2005, the per capita GDP for the same period showed a modest increase of less than 2 percent?
Essentially, the increase in GDP can be explained by examining the following: tourism, the destruction of the marine ecosystem, and the preservation, or lack thereof, of the Galapagos Islands.
The number of tourists increased from 68,850 per year in 2000, to 108,400 in 2004 and this was, in large part, good for the economy. The arrival of each tourist to the island catapulted the economy to new heights. Additionally, the renovation of an old military airstrip on the island of Baltra was a significant contributor to the economic boost of the area. Commercial airlines established regular flights to the islands, and the Ecuadorian government along with the National Parks Service had to, as a means of coping with the influx of tourists, implement strict visitation rules for tourists of the islands. The increase in tourism generated hundreds of tourism-related projects, such as constructing new hotels, and at one point, many immigrants came to Galapagos to seek work in this burgeoning environment.
The marine ecosystem was not immune to the effects of tourism either. In fact, bottom fishing and illegal catching caused the depletion of marine reserves. The destruction of fish stocks and China’s increasing thirst for shark fins and sea cucumbers has also resulted in overfishing. All of these factors combined have caused concern on the part of environmentalists who believe that Ecuador’s environment ministry and parks service are submitting to the demands of the local fishing cooperatives. Another problem posed by the surge in tourism is the fact that the incoming boats and aircraft often leave behind rats, ants, roaches, moths, and other insects which may threaten the ecosystem of the islands. In an attempt to deal with problems raised by the presence of a rapidly growing migrant population policy makers decided to expel a certain number of migrants to mitigate the negative effects the exploding population may have on the local ecosystem. This expulsion comes at a price, however. Expelling each individual migrant came at a price to the state because it was expensive. Politically, it was not a savvy move as the decision caused a backlash. People were left wondering how little regard the government had for the migrants. It was a questionable policy at best. Also, the existing number of citizens has a certain number of resources allocated to them. The presence of additional tourists decreased the per capita expenditure of the group as a whole, which means there were less funds to go around, so that the direct relationship between an increase in the number of tourists and the decreasing per capita expenditure was very palpable. This fact may nonetheless explain why the per capita growth rate was so anemic.
2. Do you think that Ecuador’s policymakers have done enough to ensure sustainable growth of the tourism sector?
According to the article, as the result of migrants coming to the community, there were many new rodents who adversely affected the population. Also, overfishing by the Chinese did not help matters. It seems to me, that the current policy is a dismal failure. It falls short of successfully addressing the problem, and it does nothing to help the sustenance of the local tourism industry. The limits on human inhabitants and visitors are not stringent because the current number, which is permitted by policymakers, is having an undeniably bad effect on the preservation of both the marine life and the ecosystem.
3. How do you market something such as the Galapagos Islands, which have such strict guidelines?
Nowadays, it is almost inconceivable that one would ignore the role that the internet may play in their marketing strategy. Social media would have to be leveraged to maximize exposure and “get the word out” so to speak, about the experience to be had once visitors come to the islands. Sites such as LinkedIn and YouTube are but a few sites which come to mind which could be used as platforms to promote the positive aspects of the experience to be held by tourists and visitors alike. In fact, one could also commission the services of Search Engine Optimization (SEO) as part of the marketing plan to ensure that the website is given maximum exposure to as many members of, not only its target market, but those potential new customers who happen to do a Google search of the Galapagos Islands. Eric Schmidt, the CEO of goggle was summoned to a hearing at the senate some time in September. His company was accused of engaging in antitrust behavior. Behavior which goes against competitors in the search engine space. He denied the accusations which claimed that Google only places highly those companies which have “paid to play”, or those companies with whom Google shares a financial interest. What his testimony revealed is that there are many companies which are willing to pay hundreds of thousands of dollars to companies who promise them higher visibility in the Google rankings. The way it works is that company A claims to have some privileged access and ability to place your company highly in a Google search. If you are a small business owner who could clearly benefit from such a thing, then you (Company B) would pay company A a fee, sometimes it is a subscription- based fee or a flat fee for it to place your company highly in the rankings.
Moreover, it is almost indispensable that a company with an online presence include SEO as an integrated piece of a marketing plan to maximize and/or expand the reach of your target audience. The senate hearings teach us that it would behoove any business owner to take the time to understand this technology as it just might be the way to streets paved with gold.

Reference

Keegan, J Warren., and Green C, Mark. (2011). Global Marketing Custom edition for UMUC. New Jersey: Prentice Hall.

Galapagos Environmental Issues-Ecology Threats. from http://www.galapagoscruise.com.ec/