The Small Island Developing States (SIDS) are a group of 57 United Nations members, including Samoa, Papua New Guinea and Vanuatu. They are home to 65 million people across 1,000 islands and feature 20% of global biodiversity and 40% of the world’s coral reefs.
They also share a common set of significant challenges to preservation and protection of the natural marine and coastal treasures their economies depend on.
A new report published by Pew Charitable Trusts examines how these small island nations are pioneering a new conservation financing model: imposing tourist fees to fund conservation projects.
Financial constraints, including high debt burdens that often exceed 60% of gross domestic product, consume a large part of national budgets and leave limited funding for conservation investments, climate adaptation, or environmental management.
These debt challenges are exacerbated by growing populations that increase demand for housing, infrastructure, and services, and by the effects of climate change – which all put pressure on fragile coastal ecosystems and limited land resources.
The SIDS’ economies rely heavily on tourism, fisheries, international trade, and financial assistance from developed nations, making them particularly vulnerable to global economic downturns, natural disasters, or travel disruptions.
These compounding pressures make traditional conservation approaches, such as habitat restoration, financially unfeasible for many SIDS, highlighting the need for innovative financing to ensure long-term investment in environmental protection.
To that end, across the Caribbean, Pacific, and Indian oceans, SIDS are pioneering systems that transform visitors into conservation partners – moving beyond traditional approaches, such as indirect taxes and tourism-related employment, and adopting earmarked levies, such as departure fees and hotel taxes.
These measures provide more predictable, sustainable environmental protection funding by directly linking tourist activity to conservation.
Palau implemented a Pristine Paradise Environmental Fee in 2020, a US$100 charge automatically included in the price of every international airline ticket into the country.
It is broken down as: $10 for the Fisheries Protection Trust Fund; $12.50 to local governments supporting environmental management; $22.50 to the national treasury; $25 for Palau International Airport; and $30 to the Protected Areas Network Fund and the Palau National Marine Sanctuary, one of the world’s largest protected ocean areas.
