Ecolodge – A Growing Market

Imagine waking up every day in the middle of lush, unspoiled jungle—or the rolling green hills of a rustic European countryside—surrounded by the sounds of birdsong instead of city traffic. Your “commute” is a short walk to your front porch, where you enjoy your morning coffee on nature’s doorstep… and the only “boss” is you. It’s so peaceful, it’s easy to forget that you’re part of a rapidly growing global industry.

In countries all around the world, expats have discovered the joys—and profit—of running an ecolodge. They’re taking advantage of a growing trend in ecotourism to fund their peaceful, nature-filled lives overseas—and they’ve discovered some of the most affordable, breathtaking destinations to do it.

Ecolodges – A Growing Business

Ecolodges are something of a niche within the tourist sector. They are usually located in destinations that are off the beaten track and cater to tourists looking for nature focused, environmentally friendly vacations. Because they’re in the countryside or wilderness areas, where there may be few amenities, they generally provide more than just accommodation. Many include a restaurant (with food grown locally), and most offer a range of classes, tours, and other activities that take advantage of the local culture and terrain…and provide owners with a variety of income streams.

According to the U.N. World Tourism Organization, nature tourism is already 20% of overall international tourism and is growing steadily. Increasingly, tourists— especially millennials—are seeking out more authentic travel experiences, preferring to live like a local rather than spend their vacation visiting traditional tourist attractions.

Ecotourism is one of several niche tourism markets that fall under the general header of “responsible” tourism. They form a growing market segment. Today, responsible tourism is outpacing growth in the travel industry in general, which itself is expected to increase 4% a year for the next decade, according to the World Travel & Tourism Council.

Ecolodges have potential in countries all over the world; essentially, any place that offers attractive natural settings and is reachable by transport. But the greatest opportunities are in developing countries, where ecotourism is seeing its greatest gains. In these countries, traditional vacation amenities like five-star hotels, fancy spas, gourmet restaurants, and museums may be thin on the ground…but exotic wildlife and relatively unspoiled nature are abundant. And increasingly, that is what stressed-out First World tourists seek.

Is an Ecolodge for You?

Starting and running an ecolodge attracts adventurous expats who want to live close to nature themselves. Many come with an existing interest in sustainability, organic farming, or living off the grid—all goals that are easier to achieve off the beaten path. And they carry those ideas into the ecolodges they create. Unlike traditional B&Bs, boutique inns, or other accommodation that may be found in rural areas, ecolodges tend to push the envelope on sustainability. They build with recycled materials, incorporate solar paneling and composting toilets, or create organic gardens to service onsite restaurants.

For many who run ecolodges, being part of ecotourism is more about the lifestyle than about making money.

This Field of Dreams-type philosophy may seem more idealistic than practical… yet in many cases, ecolodge owners say they turned a profit in their first year in business… and they continue to be successful. Doing well by doing good? It’s a win-win.

Location, Location

Off-the-beaten-track locations tend to offer a lower cost of living and of land or property, which can mean lower startup and operating costs. But not all places are created equal. Successful ecolodges are located in areas that offer great natural beauty… but where owners have also been savvy in offering a range of activities and services that transform their lodges into destinations in their own right.

Marketing Your Ecolodge

Many well-established ecolodges rely heavily on repeat guests and word of mouth. That’s the case, for example, with Lavanda Blu in Italy, Casa Mojanda in Ecuador, and Genesis Eco Oasis in Mexico, among others.

But what about when you’re just getting started?

The internet provides low-cost marketing and allows you to market as widely or narrowly as you want. A good web page for the business, with information on accommodation rates and other services available, is a must. 

Facebook and other social media can be helpful, too, with many ecolodge businesses at least having a Facebook page in addition to a website.

Some longer-established ecolodges are featured regularly in area guidebooks and get free advertising that way. Booking.com and the like—charge a lodge owner a fee or a percentage for making the booking but can give wide exposure to properties.

Permits and Paperwork: Setting Up Your Ecolodge

The specific paperwork and permits you’ll need to set up an ecolodge will depend on where you plan to set up business. And those may vary not only by country but even by region, especially if you will be in or near protected regions like biospheres, cloud forests, and the like.

However, here are a few general guidelines to keep in mind:

  • You will need a tax identification number for the country, as well as a permit to operate. You may need special tourism permits and, if you have an on-site restaurant, a food license and inspections.
  • You may be required to file taxes monthly, so be sure to get a good accountant to help you with this. In addition, you should have a reliable in-country lawyer to help you with setting up the business and processing any paperwork. If you are setting up business in a country where you don’t speak the local language, it’s especially important to have a trustworthy lawyer to act for you.