EXECUTIVE SUMMARY

Loreto is a small town in Baja California Sur, Mexico, whose natural beauty caught the attention of FONATUR, the Mexican federal agency in charge of tourism development. FONATUR intends to make the region a great tourism destination through the construction of hotels, villas, condominia and marinas that cater to visitors mainly from the United States and Canada with an expected ten-fold increase in the population by the year 2025. This increase will be accompanied by urban development, mostly along the coast. Coastal and marine environments in the Loreto region have begun to show signs of pollution, over fishing and habitat degradation, making the importance of conservation and sustainable development become evident for community members. Historically, people living in the Loreto region have depended on marine resources, thus there is great interest in minimizing any possible impacts on these resources.

A major challenge for the government when it comes to accommodate the projected population growth is solving the problem of freshwater supply. The aquifers currently used by Loreto will show signs of saline intrusion by 2025. Desalination is considered a practical solution to Loreto’s expansion, although it is an expensive and often environmentally harmful process. The Loreto region harbors marine and coastal habitats including rocky coasts, estuaries and lagoons, which are considered very sensitive to the effects of a desalination plant. Desalination plants should preferably be built away from human settlements, areas used for recreation activities, and areas of conservation priority. Virtually all the area from Ensenada Blanca up to Loreto can be considered inappropriate for a desalination plant. Detailed environmental impact assessments should be conducted, and monitoring programs established, before the design of a desalination plant.

Fishing became a major driving force for regional development in the 1950s; however, over-exploitation of the fishing stocks is now becoming a limiting factor for the success of the regional fisheries. Overfishing occurs even inside the Loreto Bay National Park, where most fishing is allowed with minimum restrictions. The projected population growth will likely result in increased fishing effort inside the park, further damaging its marine biodiversity. If the goals of the park are to be fulfilled, the management plan of the park needs to be re-visited, taking into account the putative increase in fishing pressure associated with Loreto’s population growth.

A development like the one planned by FONATUR implies that there will be large amounts of money invested in the area, creating new growth opportunities for the city and its inhabitants. However, the economic value of local resources, which ultimately determines economic success in the region, has yet to be analyzed. Additional bio-economic analyses are needed in order to ensure that the proposed development will be truly sustainable.