Sustainable Business in South America An International MBA Investigation in the Amazon Rain Forest It s the longest and mightiest of the world s

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1 Sustainable Business in South America An International MBA Investigation in the Amazon Rain Forest It s the longest and mightiest of the world s rivers, flowing through the planet s largest tropical rain forest. But the colossal Amazon basin is under siege in ways that could alter the face of the planet, making it the scene of one of the most important human adventures imaginable. Jean Michel Cousteau (2008), Jean Michel Cousteau Ocean Adventures: Return to the Amazon, KQED Public Broadcasting and Ocean Futures Society.

2 Guided by Rhan Flatin with Harold Daniel Director the UMS Center for Tourism Research and Outreach (CenTRO) Associate Professor, Maine Business School For the University of Maine Business School MBA Program

3 Our Primary Destination Manaus is an economic powerhouse, the eighth largest city in Brazil and the center for 60% of northern Brazil's economic activity, with a total revenue of about $28 billion per year. 6 days in and around Manaus and 4 days in the Mamiraua Sustainable Development Reserve

4 10 Day Trip Based in Manaus, Brazil Includes a 4 Day Excursion to the Mamiraua Sustainable Development Reserve

5 The Mamiraua Reserve

6 Travel Goals Expose you to new cultures, new business forms, identify best management practices Identify and learn about models of sustainable business practiced in the Amazon Rain Forest Seek answers to questions about government policy supporting the development of sustainable businesses management, financing, training One important sustainable business model is Eco Tourism Determine how successful eco tourism has been for the Brazilians in helping to preserve the Amazon Rain Forest and the cultures of its native populations Determine how Brazil has built their eco tourism industry, one of the leading global examples of this business form in the world. These are questions with important parallels for Maine.

7 Comparisons Maine vs. Amazonas, Brazil Maine, USA Heavily Wooded State, w/ Wood Products Industry Rural Population Native Populations Historically Agricultural Economy Boom & Bust Economy Timber Pressure to Preserve the State s Natural Environment Strong Ethic to Preserve the State s Cultural Heritage Emerging Eco Tourism Industry Pine Tree Development Zones Amazonas, Brazil Heavily Wooded State, w/ Wood Products Industry Rural Population Native Populations Historically Agricultural Economy Boom & Bust Economy Rubber Pressure to Preserve the State s Natural Environment Strong Ethic to Preserve the State s Cultural Heritage Established Eco Tourism Industry Zona Franca What lessons can we learn and bring back for application in Maine?

8 Organization of the Trip Zona Franca (The Manaus Free Trade Zone) Development of Sustainable Businesses Organizations that Are Managing the Amazon Like a Business Eco Tourism A Sustainable Business Model

9 Organizations You Will Visit Free Trade Zone Technos Leading world wide watch maker with 35% share of the market Coca Cola Coca Cola Syrup manufacturing plant in the Free Trade Zone Honda Largest motorcycle assembly plant outside of Japan in the Free Trade Zone Log in Logistica Intermodal domestic freight shipper, building marine terminal near Manaus Su Frama Economic Development Corporation Manages Free Trade Zone Fucapi The Foundation Center for Analysis, Research and Technological Innovation Responsible for Technology Development & Higher Education Amazon Biotechnology Center (CBA) Responsible for Technology Transfer Non Governmental Organizations INPA (Instituto Nacional de Pesquisas da Amazonia) Arrow Rain Forest Foundation Eco Resorts Uacari Lodge Mamiraua Sustainable Development Reserve Ariau Amazon Towers Amazon Eco Park Jungle Lodge TIWA Amazonas Ecoresort Amazon Riverside Hotel The Anavilhanas Jungle Lodge

10 You Will Also Visit Mercado Adolfo Lisboa (Manaus) The world s largest freshwater fish market Zoological & Botanical Gardens (Manaus) Meeting of the Waters Rio Solimoes (Amazon) and Rio Negro

11 Some People You Will Meet Sherre Nelson (UMaine Class of 76) Patrick Stephenson (Arrow Rain Forest Foundation) Miguel Rocha da Silva (Pousada Chez Les Rois) Augusto (Gus) Albuquerque Hugo Hoyos

12 What We Will Do Educational Activities Pre Travel Readings Meet Local Entrepreneurs Learn Some Portuguese Create Eco Tourism Evaluation Kit In Country Tour the Manaus Market Naturalist Scavenger Hunt Eco Lodge Evaluation Visit Native Villages Educational Activities In Country (Continued) Maintain a Daily Journal Daily Group Briefings Post Travel Presentation of Findings Fun Activities Eating New Foods Enjoying New Beverages Overnight Tour Boat Swimming Touring Shopping

13 Student Reading/Viewing Assignments The reading list that follows is still evolving such that new articles could be added, potentially replacing some of the articles that are listed. 1. Bannerman, Matt & Luiz Claudio Marigo (2001), Mamiraua: A Guide to the Natural History of the Amazon Flooded Forest, Instituto de Desenvolvimento Sustentavel Mamiraua (IDSM), Tefe, Amazonas, Brazil. 2. Czerwonka, Ann (2007), Eco-tourism Potential in Maine s North Woods: A Round Table Commentary, Maine Policy Review, Vol. 16, Number 2, Winter, De Vincente, Jorge (2004), Analysis of the North American commercialization chain (local, regional and international) of the target countries, The International Ecotourism Society, September. 4. Honey, Martha (1999), Ecotourism and Sustainable Development: Who Owns Paradise? Island Press, Washington. 5. Milliken, Jr., Roger (2007), Adding a New Leg to the Economic Stool in Maine s North Woods, Maine Policy Review, Vol. 16, Number 2, Winter, Nyaupane, Gyan P. and Brijesh Thapa (2004), Evaluation of Ecotourism: A Comparative Assessment in the Annapurna Conservation Area Project, Nepal, Journal of Ecotourism, Vol. 3, No. 1, Osland, Gregory E., and Robert McKoy (2004), Ecolodge Performance Goals and Evaluations, Journal of Ecotourism, Vol. 3, No. 2, Pine II, B. Joseph & James H. Gilmore (1999), The Experience Economy, Work is Theatre & Every Business a Stage, Harvard Business School Press, Boston. 9. Porter, Michael E. (1990), The Competitive Advantage of Nations, The Free Press, New York. 10. Springuel, Natalie (2000), Eco-Tourism on the Maine Coast, Maine Policy Review, Fall, Vail, David (2007), Tourism Strategy for the Maine Woods: A Big Push to World Class, Maine Policy Review, Vol. 16, Number 2, Winter, Wallace, George N. and Susan M. Pierce (1996), An Evaluation of Ecotourism in Amazonas, Brazil, Annals of Tourism Research, Vol. 23, No. 4, Weaver, David (2001), Ecotourism, John Wiley & Sons, Inc. 14. The International Eco-Tourism Society Web Site Maine s Pine Tree Development Zones Cousteau, Jean-Michel (2008), Return to the Amazon, PBS Home Video.

14 Probable Itinerary Flight From Boston to Manaus Saturday, June 6, Depart & Sunday, June 7, Arrive Activities In and Around Manaus Monday, June 8 Visit Mercado Adolfo Lisboa (Market in Manaus) Meet American Consular General, Sherre Nelson (UMaine 76) Meet Patrick Stephenson, The Arrow Rain Forest Foundation Welcome Dinner Tuesday, June 9 Visit Coca Cola Visit INPA Visit Technos and Other Businesses in the Zona Franca

15 Probable Itinerary (Continued) Activities In and Around Manaus Wednesday, June 10 Fucapi Amazon Biotechnology Center (CBA) Su Frama (Re: Zona Franca & Tourism) Thursday, June 11 Visit Honda Motorcycle Plant Visit the Teatro Amazonas (Opera House) Touring, Shopping Friday, June 12 Depart for Tefe Depart for Mamiraua by Tour Boat (3.5 hours) Check In to the Uacari Floating Lodge

16 Probable Itinerary (Continued) Activities Away from Manaus Saturday, June 13 Nature Tours & Naturalist Scavenger Hunt Visit Local Villages Sunday, June 14 Group Interviews of Uacari Lodge Staff and Management Interview other Tourists at the Lodge Monday, June 15 Return to Tefe by Speed Boat (1.5 Hours) Return to Manaus

17 Probable Itinerary (Continued) Activities Away From Manaus Monday, June 15 (Continued) Embark on Three day tour of Eco Lodges on the Rio Negro by Tour Boat, or Check In at Amazon Eco Park Jungle Lodge Over night on the Tour Boat in Transit Open Air, Sleep on Deck in Hammocks (No biting insects) Tuesday, June 16, & Wednesday, June 17 Second & Third Day Touring Eco Lodges on the Rio Negro by Tour Boat Group Interviews of Lodge Staff and Management Group Interview with Tourists at each Lodge Visit Archeological Digs at Iranduba and/or Anavilhanas Flight From Manaus to Boston Thursday, June 18, Depart & Friday, June 19, Arrive

18 What We Will See At the Mercado

19 What We Will See Where We Will Stay Pousada Chez Les Rois

20 Where we Will Stay Uacari Lodge

21 What We Will See Architecture

22 What We Will See Architecture

23 What We Will See Where We Will Eat

24 What We Will Taste

25 What We Will See

26 What We Will See

27 What We Will See

28 What This Trip is Not Uncomfortable Unfriendly Boring An Indiana Jones Adventure

Sustainable Business in South America An International MBA Investigation in. An Investigation of Best Practices in Eco Tourism Coming in June 2009

Sustainable Business in South America An International MBA Investigation in the Amazon Rain Forest An Investigation of Best Practices in Eco Tourism Coming in June 2009 Guided by Rhan Flatin with Dr. Harold