Case study: The Nature of Commercial Recreation

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9B04M052 ELEPHANT WALK THRU William J. Ritchie, Matthew S. Shell, Ravi Corea and Chandeep Corea prepared this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail [email protected]. Copyright © 2004, Ivey Management Services Version: (A) 2009-10-15

An ecotourism project, integrating wildlife conservation, economic development and human development to ensure the continuity of community-based wildlife conservation efforts in Sri Lanka.

The Sri Lanka Wildlife Conservation Society’s (SLWCS) management team knew they had conceived a very unique project in Elephant Walk Thru (EWT), but the success of this innovative ecotourism project would hinge on the society’s ability to balance the needs of a diverse group of stakeholders as well as various economic and political-legal forces faced by the organization. SLWCS’s primary task in the ensuing months would be to identify salient external opportunities and threats posed by stakeholder groups. Equally important would be to evaluate the continually changing political-legal and economic environments prior to constructing the EWT facilities. BACKROUND Founded in 1995, the Sri Lanka Wildlife Conservation Society (SLWCS), (registered in the United States as a 501(c) non-profit, tax-exempt organization) had been working exclusively in Sri Lanka to protect native species while aiding the social development of the Sri Lankan people. Headed by Ravi Corea, president, and Chandeep Corea, projects director (see Exhibit 1), the SLWCS began its first major project in 1998 — an innovative electric fence designed to resolve conflicts between the native villagers and the elephants in Sri Lanka and protect the surrounding forests (see Exhibit 2). During the administration of the fence project, three key issues emerged that prompted a move to acquire forestland from the Forest Department for the development of Elephant Walk Thru. According to Ravi,

Although the immediate human/elephant conflicts were resolved, surrounding forests were still being damaged by local villagers, highlighting the need for economic

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Page 2 9B04M052

incentives for rural residents to save their environment. Second, there needed to be a sustainable means of using forest resources, protecting key buffer areas.

Finally, Ravi was busily pursuing grants and other sources of external funding for subsequent conservation projects, redirecting his talents toward fund-raising and away from the core conservation tasks he had originally sought to undertake. Ravi realized that something had to be done to address these issues. In 2000, he applied to the Sri Lanka Board of Investments for forestland for the eventual development of EWT. Two years later, with national and local governmental approval for the release of the land, Ravi and his management team awaited final approvals for the release of the land from the Land Commissioner, but many questions regarding the implementation of the project remained unanswered. Both Ravi and Chandeep knew that their plan was ambitious, as this ecotourism product would push the traditional boundaries of eco-based tourism. They knew that the success of EWT would hinge on their ability to design the project so that it might be suitable for five very diverse stakeholder groups: 1. SLWCS and related constituencies, 2. the villagers, 3. the indigenous animal species and surrounding forests, 4. other nature-based initiatives in Asia, and 5. tourists. The months during 2002 proved to be a significant period for EWT, as members of the management team introduced the EWT concept to the international community through a variety of conferences. Ravi and Chandeep attended the Eco-Tourism Summit in Quebec, Canada (sponsored by the World Tourism Organization in May 2002), and the International Elephant Symposium in Orlando, Florida, (sponsored by the International Elephant Foundation in November 2002). Members of the EWT management team were also participants in a delegation with the Sri Lankan Prime Minister, Ranil Wickremasinghe, to the United States in 2002. These events helped the team to further develop EWT’s organizational goals and assess its internal strengths and weaknesses. The concept of EWT was clearly emerging as an innovative venture that could be a model for low-impact, maximum benefit, nature-based tourism in Asia. Equipped with a solid understanding of the mission and objectives of EWT, Ravi and Chandeep were keenly aware of the operational resources that would secure the success of the organization for years to come. But given their own international experiences and information gathered during eco-related conferences, they knew that there was a vast number of factors, external to the project and beyond their control, that would significantly influence the success of the Elephant Walk Thru. Meetings were scheduled in an effort to foster further analysis. During gatherings with his management team, Ravi expressed particular concern with EWT’s ability to balance the variety of expectations held by stakeholders, many of which posed potential threats to EWT. At the same time, he knew that there were multiple opportunities for EWT that had not yet been identified. Ravi felt that the political-legal and economic factors would be particularly important and that the organization would need a comprehensive list of external opportunities and threats affecting the eco- tourism project before it could undertake the major task of raising funds and constructing the facilities.

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Page 3 9B04M052 ORGANIZATIONAL BACKGROUND Sri Lanka has been called the “biodiversity hotspot” of the world. SLWCS believes that if wildlife conservation projects involving local communities are to survive, in the long term, they need an economic base. Additionally, rural communities must see direct positive benefit from the conservation work performed in their communities as well as some level of social improvements from the funds that are generated from activities. NATIONAL BACKGROUND The political environment of Sri Lanka has been both unstable and ineffective over the last 20 years. Internal fighting between the violent Liberation Tigers of Tamil Eelam (LTTE) and the national government has stifled economic growth and created a sense of fear among the citizens of the country. However, things have started to change. The LTTE and the government reached a ceasefire agreement on February 21, 2002, an event that signalled the start of a new era in Sri Lanka. In June, 2003, the international aid community (including the United States) pledged a massive aid/grant package of $4.5 billion for the development of Sri Lanka, an amount equal to the aid package pledged to Afghanistan after the fall of the Taliban. The new government that was subsequently established in Sri Lanka was very business-friendly. Its leader, Prime Minister Ranil Wickremasinghe, was one of the most experienced political leaders in Asia. Under his leadership, the country worked hard to encourage foreign investment and backed up this mandate by opening up for competition industries that had been state-run. The economy in Sri Lanka had long depended on agriculture as a major source of income. However, agriculture was the least dynamic sector of the economy, accounting for only 19.4 per cent of gross domestic product (GDP) in 2001. Agriculture had done little to elevate rural incomes, even though almost one-third of the working population still worked in this industry. The textile industry, another major industry in the country, was facing falling prices, cheaper sources and high investment costs to stay competitive. Of the major industries in Sri Lanka, the service sector was by far the most dynamic, and the potential for growth in this industry far exceeded any other. One of the industries that had not been utilized much was the tourism industry. According to the U.S. Embassy, “The outlook for tourism is encouraging, due to the cease-fire.” The telecommunications industry represented another bright spot in the Sri Lankan economy, fuelling the growth of information technology as well as the development of the Internet and e- commerce in Sri Lanka. Because of its modern telecommunications industry, Sri Lanka had a direct connection to many of its international trading partners. The nation’s infrastructure represented one of its most significant opportunities. The involvement of the government in the management of transportation, roads and power generation had left it behind the times. The main system of roads had not been significantly improved since the nation’s independence more than 50 years previously. But the new government was in the process of widening smaller trunk roads and developing several new highways that connected the capital city of Colombo with key cities. Power shortages had plagued the country since 1994, making it difficult for businesses, especially those in manufacturing, to survive. One of the strengths in the nation’s infrastructure was the Bandaranaike International Airport, which was fairly modern and could handle approximately three million people per year. A major expansion of the airport, which was located on the outskirts of Colombo, was planned for 2004. The expansion would increase passenger handling capacity by two million per year and would improve the airport’s air navigation systems.

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Page 4 9B04M052 ORGANIZATIONAL GOALS The long-term goals of the SLWCS and the proposed Elephant Walk Thru were: 1. To contribute to the long-term protection and conservation of the elephant, including the resolution of

human-elephant conflict. 2. To use suitably trained local people with the guidance of scientists and conservationists to gather data

on the local elephant population. 3. To conduct surveys of the plant and animal species in the central province and ascertain their

conservation status. 4. To increase the awareness, knowledge, skills and economic well-being of the local people. The project

sought to develop economic incentives for wildlife conservation and create opportunities for villagers to participate in field and eco-tourism projects. Through such efforts, SLWCS hoped to change the attitude of villagers toward wildlife conservation and protection and encourage them to take the message of wildlife conservation to other communities.

5. To form partnerships that would help in the long-term conservation of Sri Lanka’s natural resources, while allowing for sustainable development.

Since 1997, the SLWCS has been working in Sri Lanka to resolve human-elephant conflict, making use of community participation. The top management of Elephant Walk Thru believed that revenues from business operations, as well as a mix of foreign aid and grants, were important to develop an economic base for the project’s long-term survival. PROJECT In an effort to ensure the long-term survival of the project and with the co-operation of the Board of Investment of Sri Lanka, Elephant Walk Thru would lease 25 acres near a forest that extended all the way from the dry zone through the intermediate zone to the wet zone of Sri Lanka. Although the country had seen some terrible fighting in the past, the project area had never been one of conflict. This particular forest, which had a high diversity of habitats, had equally diverse fauna and flora. A field scouts program to monitor, observe and record elephants in this forest was also a part of this project. These scouts would be recruited from the local villages, trained and educated in the wildlife of the area. Eventually, they would function as field guides to visiting guests, earning a reasonably high wage from an alternate, environment- friendly, sustainable source that would supplement the meagre living they made from agriculture. The guides would also conduct environmental awareness programs for other communities, schools, etc., in this area. OPERATIONS Elephant Walk Thru would provide guests with an up-close and personal jungle experience. Amenities such as four-wheel-drive (4WD) vehicles, experienced field guides and trackers, hot and cold water facilities, quality food and beverage services, etc. would be provided to guests.

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Page 5 9B04M052 FORMAT OF VISIT Upon arrival in Sri Lanka, visitors would spend one to two nights in Colombo at a boutique hotel or rented villa home to acclimatize and relax in a relatively homey environment. Following this brief period, visitors would be taken by luxury 4WD vehicles to the project site (about five hours from Colombo). During this five-hour journey to the eco-lodge, there would be several stops to visit places of interest (e.g. Pinnawella, Dalada Maligawa, Dambulla cave drawings). Visitors would spend four to seven nights at the eco-lodge. The eco-lodge was only a 15- to 45-minute drive away from the large game reserves of Wasgamuwa N.P. and Maduruoya N.P. Additionally, the vast Knuckles Mountains and Forests were within a one-hour drive of the eco-lodge. The members who ran the tours would organize day trips to all of these locations on an individual basis at charges of approximately US$150 per head per day. Although the main part of the trip would be spent away from civilization, visitors could still visit the major cities where they could shop. ACCOMMODATIONS Central Lodge and Research Station There would be a central lodge with overnight accommodations, such as cabanas and tented semi-luxury camps, and other hospitality services for guests. There would also be a research station and a nature centre, which would, with time, include a library and a natural history collection, documenting the biodiversity of the region. The main administrative and management hub of the conservation projects would also be situated here. Village Hospitality Centres Participating village households would have some basic infrastructure such as plumbing and kitchen facilities developed for them to host overnight guests. This would give the guest a chance to experience a day in the life of a rural farmer, a fisherman, “a toddy tapper,” a wild honey collector, “a chena cultivator,” etc. Overnight Camps There would be elephant and horseback treks into the neighboring forest with an overnight camping stop at a choice of several pre-selected areas to observe the local wildlife, bird watch, absorb the beauty of the forest and to give the guest an opportunity to commune with nature. The site would be a lakefront (tank/reservoir) where elephants came to drink, bathe and socialize, especially during the night. On moonlit nights, guests would have the opportunity to ride in inflatable boats to observe the elephants from the water. This would be the best way to observe elephants, without causing undue alarm. Refreshments would be provided as guests silently moved along, watching the elephants go about their way of life. Alternatively, guests would be able to observe these elephants from a comfortable viewing hut built on a nearby tree. While observing the elephants and other wildlife, guests could enjoy an aperitif or hot or cold drinks. This forest area was classified as Divisional Secretariat forest and was not part of either the Forest Department or the WildLife Department.

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Page 6 9B04M052 Ancient Villages There were many ancient villages in the area, including one that was over 300 years old. There villages were human habitations caught in a time warp. Two villages, which were about 15 minutes’ drive from the project site, were supplied by two perennial springs and completely surrounded by the jungle, cut off from the rest of the world. The native people there still worshiped at shrines built under huge ancient, spreading banyan trees and fig trees. Guests would be taken in the afternoon to see these villages. Since the route followed the thick canopy jungle, guest would get an opportunity to feel the primordial quality of the jungle on the return trip in the late evening. If they were lucky, they would also encounter elephants, leopards and bears along the route. This could be a walking safari or an expedition in Land Rovers, depending on the needs and sense of adventure of the guests. ELEPHANT WALK THRU INFRASTRUCTURE Eco Tree Lodges After the initial use of village hospitality centres, the project would progress towards canopy-level tree lodges. The basic concept was to have eight to 10 habitat-immersed, canopy-level tree lodges integrated into the existing forest structure (see Exhibit 3). None of the structures, except for the supporting beams and columns, would be built on the ground in order to minimize the ecologically detrimental edge effects that can be caused by ground construction. The height of all these well-camouflaged structures would be at a level where they could provide unimpeded access to the forest floor, from elephants to shrews. The construction engineering would be integrated in such a manner that existing large trees would support luxury tree huts. Each hut would have a bedroom and living room with efficiencies, modern bathroom, intercom and telephone, and wrap-around balcony. All the support structures would be well camouflaged to blend with the forest environment. Next, the tree huts would be connected to an elevated central lodge by canopy walkways. Infrastructure facilities would include offices, kitchen, restaurant and dining room, game room, library, video parlor and a lecture hall. The swimming pool would be a natural-looking rock pool fed by natural spring water. All facilities would be connected to each other by elevated walkways. This resort would be a unique feature in Sri Lanka and would be one of the first entirely elevated nature tourism resorts in the world. It would also ensure maximum safety to the visitors and allow for the forest and the forest floor to remain totally untouched with the minimal disturbance to the animals at all times. VEHICLES • Three Land Rover Td5 Defender County station wagons • One 4WD commuter van with air conditioning to transport guests back and forth and to be used as the

general purpose vehicle for the lodge • Two Zodiac Grand Raid Mark III inflatable boats with Honda 50HP outboard engines FINANCES With an estimated 10 guests paying US$400 per night, the jungle tree house accommodations would generate up to US$4,000 in gross revenues each day. Since the daily costs per guest, including staff, fuel and food is estimated at US$50, the estimated profit at full occupancy is US$3,500 per day. Most of this

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Page 7 9B04M052 income would be reinvested in the village and in other wildlife projects. This type of operation allows for maximum benefit to be generated for the country at minimum costs. TOURISM IN SRI LANKA In 1966, the government established the Ceylon Tourist Board, which has worked hard to expand the industry in Sri Lanka. The country’s main attractions included the beach resorts on the southwestern coastal region, although many tourists also visited the ancient cities of the dry zone. The tourism industry had suffered severely when the fighting between the national government and the Liberation Tigers erupted in 1983. The February 2002 ceasefire allowed the tourism industry to once again regain its marketability and its quest for European and American visitors. At that point, the Sri Lanka Tourist Board moved away from its traditional “Sun, Sea and Sand” promotion to a more modern theme, which called Sri Lanka “A Land Like No Other.” PROMOTION WITH INTERNATIONAL PARTNERS The SLWCS began working with Abercrombie & Kent of the United States on its conservation projects. Abercrombie & Kent was one of the world’s largest high-end tourism companies. The use of multinational corporations to raise funds served as one of the biggest opportunities for Elephant Walk Thru. The companies built goodwill with consumers through environmentally friendly practices, and EWT gained funds besides revenues from tourists. As such, EWT decided to aim for high-end customers, going for quality rather than quantity. The anticipated rate for visitors was US$300 to US$500 per night per person. There was a 20-guest limit at the lodge at any one time. LONG-TERM PROSPECTS This nature tourism resort was targeted for high-end, up-market clients. Most of the world’s tourism services, especially those in Sri Lanka, were targeted to attract package tourists. There was a large group of affluent tourists who were willing to pay premium prices for novel, unusual and high-quality services and opportunities to experience nature. This market segment had mostly eluded Sri Lankan tour operators because there were no true eco-tour services on the ground to attract this particular group of tourists. More recently, nature tourism had begun to be extensively promoted — such as in Sri Lanka Tourist Board’s new slogan; “A Land Like No Other,” but was still in its infancy. There were large, big untapped, high-end eco-tourist markets in the United States, Canada, Europe, Australia, the Middle East, Japan, China and New Zealand. By developing partnerships with international eco-tour operators such as Abercrombie & Kent and Discovery Tours, EWT hoped to tap into these markets. Internationally, the international tourism industry had suffered some serious setbacks over the years with the increase of terrorism. American travellers, one of the targeted ecotourist groups, were reluctant to travel internationally after the World Trade Center tragedy in 2001 and during the 2003 war with Iraq. However, the long-term prospects of attracting upper-class eco-tourists from the United States and Europe remained bright. In fact, some Americans have been joining the eco-tourism bandwagon within the United States. There are various tree house resorts scattered throughout the United States and internationally, and they offer a concept very similar to that of EWT, minus the amazing experience of observing elephants (see Exhibit 4 for selected World Wide Web links).

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Page 8 9B04M052 Since Elephant Walk Thru would be the only operation in Sri Lanka providing such an unusual nature experience, initially the SLWCS would have full market share, playing a leadership role in introducing some very novel concepts in design, service and quality. The players would be the affluent international nature tourists who were willing to pay a premium for the best possible nature experiences and hospitality services. It was highly unlikely that the market would shift away from ecotourism since this type of tourism had become the most economically and biologically sustainable way of using the world’s depleting biodiversity resources. The cost and prices would be set according to international standards to match or compete with what else was being offered in the market. As competition increased, with other operators emulating the same concepts, it would be a challenge for EWT to be more innovative while remaining environmentally friendly.

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Exhibit 1

THE MANAGEMENT TEAM Chief Executive Officer — Ravi Corea SUMMARY BIO: Ravi Corea has been involved in wildlife conservation in Sri Lanka for more than two and a half decades. Ever since his childhood, Ravi has shown a keen interest in natural history, and today Ravi is a student on a scholarship at the prestigious Columbia University’s Center for Environmental Research & Conservation in New York, finishing a degree in Environmental Biology. Ravi has worked for the National Zoological Gardens (Dehiwala Zoo) as a Student Guide Lecturer and has conducted research on reptiles, fishes, birds and elephants of Sri Lanka. In 1995, Ravi initiated the establishment of the Sri Lanka Wildlife Conservation Society, a non-profit, fully incorporated, tax-exempt organization based in the United States. Ravi presently functions as its founding president. Ravi has also established the project — Saving Elephants by Helping People — the first community-integrated effort in Sri Lanka to help resolve human- elephant conflict at Gamburu-Oya/Pussellayaya, Wasgomuwa. The Wildlife Trust, the Disney Wildlife Conservation Fund, Computer Associates International Inc., and the U.S. Fish & Wildlife Service have provided funds for this ongoing project. Columbia University, the Wildlife Conservation Society (New York), and the National Office of the American Society for the Prevention of Cruelty to Animals (ASPCA) funded Ravi’s earlier research efforts. Ravi has also obtained the financial support of the Abercrombie & Kent Global Foundation and the International Elephant Foundation, United States, for the conservation efforts of the Sri Lanka Wildlife Conservation Society in Sri Lanka. Ravi Corea presently resides in the State of New Jersey in the United States. Director — Chandeep Corea SUMMARY BIO: BSc, Marine Biology. Final year MSc in Forestry and Environmental Management. Founding partner of a successful Web-design company, ENIGMA (Pvt.) Ltd. Projects director of the Sri Lanka Wildlife Conservation Society, United States. Chandeep has extensive fieldwork experience working in Sri Lanka on wildlife conservation projects. He has worked with Dr. Wolfgang Dittus on the Smithsonian Institution funded Torque Macaque Study in Polonnaruwa. A team member of Dr. Prithiviraj Fernando’s — Southern Area Elephant Radio Collaring Program funded by Global Environmental Facility, Chandeep participated in the Zoological Survey of Sri Lanka co-ordinated by Lyn De Alwis (President’s Counsel for WildLife Conservation). Additionally, he is working with villagers to establish small eco-lodges for local visitors to experience nature with minimal impact on the environment. Director — Jayantha Jayawardene SUMMARY BIO: Wildlife Consultant. Formerly ADB Wildlife Project Director. Formerly senior manager at Finlay’s Plantations. Member of Presidential Task Force on Wildlife Conservation, Southern Development Authority, Mahaweli Ministry. Publisher/Editor of Sri Lanka Nature. Member of Asian Elephant Specialist Group. Author of book on Sri Lanka Elephant. Founder/member of Biodiversity and Elephant Conservation Trust. Chief Architect — Sanjeeva Guneratne SUMMARY BIO: Faculty Member, Department of Architecture, University of Sri Lanka, Katubedda. He is presently working on his PhD in Architecture at the University of Milwaukee, Wisconsin, United States. Source: Company files.

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Exhibit 2

FIGHTING TO SURVIVE IN SRI LANKA Fighting to Survive in Sri Lanka The elephants of Sri Lanka, once 20,000 strong, face an uncertain future. Their habitat is being destroyed, and local villagers and ivory poachers threaten their very existence. Today, fewer than 4,000 wild elephants live in this agricultural island country. With an annual birthrate of four per cent and a death rate of six per cent, that’s not good news. And since 70 per cent of the elephant population lives outside of the country’s national parks and sanctuaries, the death toll will likely only grow. In fact, some regional elephant populations already border on extinction. For six decades now, the Sri Lankan government has been clearing vast expanses of jungle to make room for human settlements. Most of the land has been cleared without consideration for ecological issues, such as how the wild animals would be affected. Not surprisingly, the elephants have reacted by invading nearby villages. Push Comes to Shove Although elephants in Sri Lanka have been raiding farmers’ crops since time immemorial, these were rare intrusions, and most Sri Lankans maintained a certain reverence for elephants. In recent times, however, the conflict has intensified. Unprecedented human encroachment on the elephants’ habitat has isolated many elephant populations, leaving the animals with no choice but to raid farmers’ crops in order to survive. As a result, an estimated 100 to 150 elephants are harassed, shot, poisoned and electrocuted each year as farmers retaliate. Socio-economic surveys conducted in villages with intense conflict show that the average village incurs about $28,500 worth of property and crop damage annually from these elephant raids. But crops and wallets aren’t the only casualties. Each year, elephants kill approximately 60 villagers. Thanks to years of harassment by humans, the elephants are very aggressive and will kill a person on sight. No villager will venture out of his home or hut after six o’clock in the evening, and on some days, children cannot go to school because elephants are obstructing the roads. There’s also an emotional cost to this human–elephant conflict. The elephant’s royal status is deeply ingrained in the local culture, religion and folklore. So Sri Lankans are faced with a difficult moral dilemma: They revere the elephant, but at the same time they persecute it. This internal conflict takes a toll on the community. When an elephant is killed or dies of injuries caused by people, the whole village gathers to pay solemn respect to the dead animal. Killing an elephant in Sri Lanka is not just a cultural taboo, it’s also illegal. In fact, the killing of all wildlife is prohibited, yet poaching incidences in the country are on the rise. The Sri Lanka Department of Wildlife Conservation (DWLC) does its best to catch the murderers, but it’s a difficult task. Don’t Fence Me In To combat these problems, the DWLC developed a program to fence the elephants into the country’s national parks, thereby creating sanctuaries for them. But the attempts to contain the elephants have met with varying degrees of success. Because they’re built along human-made boundaries, the fences mean nothing to the elephants, who have their own cultural and ecological boundaries. The fences are also costly to build and require a great deal of expensive manpower to maintain. More important, they have done little to protect the majority of elephants, who roam outside the boundaries of the national parks. Without the safety of these parks, the roaming elephants are more prone to violent poacher attacks.

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Exhibit 2 (continued) In 1997, the Sri Lanka Wildlife Conservation Society proposed a more effective solution. The idea was to fence off elephant-restricted areas, such as villages and large agricultural fields, with solar-powered electric fences, leaving vast expanses of land outside the fenced areas for the elephants to range. Launched in 1998, the pilot project, called Saving Elephants by Helping People (SEHP), is managed and operated by the society. The village of Gamburu-Oya/Pussellayaya, situated in the central province of Sri Lanka, was completely encircled by a 10-kilometre fence using funds provided by the Wildlife Trust (www.wildlifetrust.org), the Disney Wildlife Conservation Fund (www.disney.com) and Computer Associates International (www.cai.com). The SEHP project provided all of the equipment needed to build the fence, while the Gamburu-Oya/Pussellayaya villagers provided the labor. Any items or materials that could be bought from the village were contracted locally, thereby channeling some of the project money into the village’s economy. From the start, the fencing was very effective in deterring the elephants. In 1997, 12 elephants were killed in Gamburu-Oya/Pussellayaya, compared with eight elephants in 1998 and only one in 1999. According to the regional office of the DWLC, there have been no reports of crop raiding, property damage, or human or elephant deaths since then. With the threat of the elephants removed, the villagers were able to turn their attention to helping the government catch local poachers. Now that the villagers support elephant conservation, they’re more willing to give information about known poachers to help the DWLC apprehend them. Source: Ravi Corea, Used with permission

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Exhibit 3

ARTIST’S RENDITION OF THE CANOPY-LEVEL TREE LODGES

Source: Company files.

Exhibit 4

RELATED TREE HOUSE WORLD WIDE WEB LINKS • http://travel.vsnl.com/palmland/treehouse • http://Treehouses.com • http://www.treehousesofhawaii.com • http://www.tourindiakerala.com/treehouse.htm • http://Eureka-net.com/treehouse

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