My wife and I have been living off-grid and reforesting an abused landscape in the high jungle of northern Peru for the past 5 years. The photo is the view from the entrance of our property with the mountain peaks in the background being part of the Bosque de Protección Alto Mayo (a national forest).
The property is mostly steep foothills. 10 hectares was cattle pasture that we planted 11,000 trees on (focusing mostly on about 30 different species of fruit trees), and about 6.5 hectares is primary & secondary forest, and riparian corridors.
We feel the prospects for long-term commercial agriculture are very difficult. These are tropical soils with low nutrient capital reserves that have been further degraded by unsustainable land-use practices over decades. Also, the topography makes it unfeasible for vehicles to service all the planted areas. Spreading amendments/fertilizers is done via horseback.
Five minutes further down the road from us, is a popular weekend swimming hole for local tourists, known as La Encañada. There's food stands there, a treehouse and some balsa rafts that the locals take you on to give you a quick tour of the canyon.
The Alto Mayo region, of which this is a part of, is very underrated as a tourist destination. But unfortunately, this is not part of Peru's well-traversed, Gringo trail. Our property is a 3 hour drive from the nearest airport. Some plans have been set recently about getting the airport commercially operational that's only 45 minutes from our property, but you know how those things go in latin america. I would project our tourism prospects assuming that the only option is 3 hours away.
This means that we will mostly be reliant on local tourists.
Despite the view, you might be surprised to learn that this area isn't exactly some sort of Hawaiian luxury resort town. On the contrary, it certainly has a more "edge of the world" vibe to it. There's not a lot of industry in the Alto Mayo region, beyond smallholder agriculture, so consequently, local tourists aren't well-equipped to pay the big bucks for a weekend outing. This is a major consideration when designing a tourism experience here. Unfortunately, people are budget-conscious and cheaper (at least for products) is often the main deciding factor in a purchase decision.
I'm really not sure how this translates to tourism, but we're 45 minutes from the nearest city of 30,000 inhabitants. The first ten minutes of that drive is on pavement, and the rest is a dirt road.
Here's where we're torn. Since it's somewhat off the beaten path, I personally wouldn't want to come all the way out to a place like this without having a good idea that I'm going to get a significant level of comfort at the end of the journey. I mean you're out in the "campo" of latin america. So, I feel we should strive to make things comfort-focused. Small is OK to offset the cost of striving for comfort-focused, but I don't think this is a context to cut corners on quality. A place to pitch a tent or a cheaply-built plywood bungalow just don't seem like a pleasant-enough experience to justify the drive, even though the scenery is amazing and it's a great setting for tropical bird watching. Do you think locals will splurge for something like this often-enough to make it worth the investment? We'd probably only build one or two bungalows just to see (this could always double as WWOOFer quarters if we ever start taking volunteers).
I don't think the "glamping" trend is a thing here like it is in the USA. So a little safari tent with a portapotty and communal shower facility would probably not be the right approach for the local culture.
The small city that's 45-minutes away is the nearest lodging. None of the small towns or pueblos inbetween have any lodging options. We'd be the only ones.
The other consideration is that we don't want to go too cheap either, because then you might risk getting the riff-raff crowd that got too drunk at the river or something. You have to tiptoe a fine line here between too much vacancy and clientele that doesn't respect the space.
Some additional tag-ons could be offering a fruit-tasting experience, and a guided walking/hiking tour of the property. I think we would pretty much have to include dinner and breakfast in the price of the stay.
Does anyone on here offer lodging that's way out in the boonies in an area that really doesn't have much tourism?
For those who've established accommodation in similarly remote areas with price-sensitive local tourists: What pricing strategy worked best for you? I'm particularly interested in how much of a premium (if any) you've been able to charge above the standard local rates while still maintaining decent occupancy. Did you find it more effective to price just slightly above basic options with notably better comfort, or was a significant premium justified if the experience was truly unique? And how did you communicate that value to potential guests who might initially be looking for the cheapest option?
by AltoMayo_Agro_Forest
11 Comments
No direct experience but I am a small biz consultant and I can tell you this without a shadow of a doubt:
By targeting the right people with the right branding/messaging/positioning/marketing, you can sell ANYTHING.
I’ve seen solid gold paperclip paper weights for thousands of dollars for goodness sake. lol We live in a world of 9 billion people last I looked…your buyers are out there.
It’s just about knowing your audience and what would make them buy.
Example: Remoteness = total escape. Not overrun by tourists. Secret experience they can brag about on IG to feel special.
You’re likely right about amenities if you want a higher clientele unless you can find a way to spin it.
That said, think long and hard about if you really want to ruin the area by making it popular. You might not realize how good you have it until Instagram discovers your location and bastardizes it for all.
Long story short you should ask local people what they think. Go to the swimming hole and any other local tourist weekend destinations and find out if there’s interest in staying nearby if there was a place and what they’d expect or hope for or what amenities would attract them if the answer is yes. For what you’re describing and given where you are, this is going to be very niche if it works, go research
Short answer: hel naw man
Im in a similar position at the moment. I have very remote coconut farms out on the miskito coast. Not really anything around including tourists. The closest solid structure is 8 miles away and you have to take a boat to get there. Some people really like adventure tourism. We have a couple cabins built and are going to give tourism a try. Ive been pretty content with the outhouse and bucket showers but we are making upgrades now. Couple weeks ago I started putting in a gravity plumbing system and we will be installing composting toilets. I haven’t even thought about prices yet. Will see how it goes.
I would maybe look into something experiential, depending on what your land has to give….
Fruit tree grafting classes
Bird watching
Stargazing/telescope parties
4-wheel drive tours (there’s one on the road to Hana on Maui that’s I loved)
“Soundbaths” have become a thing
Beautiful area. I am curious how you found this place and now live there. What was you original plan? Did you inherit this? Are you a local that went away and came back and had some money? What’s your back story? You could develop local foods, but maybe upscale them. Do any locals have milk cows? Aged cheese is a product that was developed by a Catholic priest from that basic daily cheese culture in the mountainous areas of Northern Nicaragua. Basically aging cuajada into a dry storable cheese. Are there wild bees or honey wasps? Can you start a honey industry? Another option is to develop an artisan colony. Ernesto Cardenal, a priest in Nicaragua, helped an island community develop their indigenous arts into a tourist attraction. [https://en.wikipedia.org/wiki/Ernesto_Cardenal](https://en.wikipedia.org/wiki/Ernesto_Cardenal) Are there any clay source areas? Another industry is painted black pottery similar to that in Costa Rica. I see a lot of the buildings are made out of slat boards and tin. Is this near your area. [https://www.theguardian.com/environment/2023/jan/18/forest-communities-alto-mayo-peru-carbon-offsetting-aoe](https://www.theguardian.com/environment/2023/jan/18/forest-communities-alto-mayo-peru-carbon-offsetting-aoe)
How much would you want to make from tourism?
I ask because I think you could do super bespoke experiences, one set of guests at a time, for say… 10 days. Do two a month. Charge $1,000 per guest, and take 4 at a time. Thats $8,000/mo USD in income, in a region where the *annual* salary is about $6k if I’m guessing correctly.
Target “wanderlust adventurers” on Instagram. Lean in to “farm to table” with tons of emphasis on locally produced wares, not made abroad chatchkes.
Do a day on regenerative farming and what you’re doing to restore the soil. Do a day on horseback with your guests acting as paid laborers – except they’re paying you. Find a 4×4 trail you can regularly do and pre-stage stuff along the way (picnic lunch, local spirits, etc.) Have a day or two of hiking planned out. Prepare local cuisine in a genuinely authentic – but ‘upscale-ish’ setting (would require investment of time and resources.)
At that point: you’ve got a ~$3,000 per person package for me on the west coast to fly down to an absolutely stunning part of the world, stay a week, get a properly local experience and build a relationship, and then fly home. You’re taking – AT MOST – 96 guests a year so you’re not overrunning the region, and you’re bringing some extra revenue (assuming you’d work with local farmers and craftspeople) to the region.
Just sayin’. Figure out what you want to make from tourism and design a sustainable for you to execute package, then sell it. It’ll likely be cheaper than a cruise, more exclusive than a Four Seasons, and the sort of experience that people will absolutely lose their shit for.
I’d say consider breeding dinosaurs if possible
One thing I am compelled to add to this conversation is about experience in tourism. Do you have any hospitality, accommodations or cooking for customers experience? Because if you don’t, you should take some classes and try to interview a few people who have done what you’re looking to do before you get too deep into investing in this.
The reason I say this is because I do have experience, and the kind of tourist/influencer who could afford/would be willing to have this adventure would be a very savvy traveller with higher than average expectations for their $$ and precious vacay days. Meeting those expectations in a very remote location like you have (where problems are not easily solved) is just so, so difficult. There is a narrow ledge of enticing potential customers while setting achievable expectations without over selling. It’s possible to get it right, but not easy and may not produce as much profit as necessary to make the endeavor worth it.
Anyway, I think anything like this is best started with a business plan, realistic P+L and 3 year projected budget.
Having backpacked in latin-america I can tell you 100% this is exactly what a lot of Western tourists want. Everybody is always looking for the next spot ‘off the beaten track’. Then again, is going there worth it?
Important factors :
* decent website with clear information
* propose several ways to get there that correspond with people’s itineraries. My trip ended in Ecuador, but i knew a lot of people went to Iquitos. Think about getting a partner there that offers boat tours to Tarapoto (if that’s close) for example. Similarly, make sure they can travel onwards.
* maybe add a pick-up service where either you take your car(van?) to the closest bus-station twice a day or so? Or get yourself known with local taxi drivers/dudes who do the trip on motorcycles? Travel is an adventure in itself and while a bit of a hassle at times, the crowd of backpackers i hung out with loved that adventure. A 2hr busride is nothing!
* if getting there is a hassle, make sure there’s enough to do for at least a 3-day stay – think hiking trails, mountainbikes? A guided tour in the jungle (tracking animals), daytrip to swimming holes,…
* activities in the hostel are important too. Think communal meals, a ping pong table, a cozy corner for reading. A yoga corner is always a hit, especially if someone could do a class here and there.
* Also : beer/a good bar. Even if there’s not a full on party vibe, plenty of backpackers enjoy relaxing after a day of relaxing. A central area with a big table is a must. Meeting, chilling with other travelers is such a big part of the backpacking culture and makes for more fun activities too.
* if the scenery/bird watching is a big part, consider a sort of lodge where people can chill ‘inside’ whilst enjoying the view or waiting for tropical birds.
* foodwise including breakfast is almost a must for me. Evening dinners could be communal with a veggie option. Maybe reserve the day before to avoid waste. A bar with some snacks is also cool, but probably hard to maintain when you’ve got plenty of other work to do. A small but decent kitchen to cook something yourself is much appreciated by backpackers.
* In terms of comfort you don’t need to exagerate for backpackers. A dorm (or 2) for the cheaper crowd and some tents as private rooms seems perfect to me. Especially if the tents can be spread out a bit.
* you’re always going to have obnoxious people, but i think if your website stresses respect for locals and nature as well as being off the beaten path, you’re already going to weed out the worst people.
I don’t know much about the locals preferences, but if you want to get a feel for backpackers just go to some of the closer tourist destinations and stay in similar places or youth hostels.
It sounds like you can’t decide whether you want tourism from abroad via the airport, or from the town of 30k people that’s 45 minutes away, or from the sparse population of locals. You need to decide which one of those 3 options it’s going to be catered towards, because I don’t think it will work to try to target all three, they’re all going to have wildly different budgets and expectations, and cultures.
If you’re looking for the Instagram type crowd to come to Peru because your bungalow resort went viral and they want a piece of it, then your resort is going to look and be a lot different than if it’s just a little weekend getaway for locals.
It seems like your idea could be good, but it’s also very risky because you don’t really know if there will be any interest at all yet, and you may never know unless/until you try and see what happens. So my suggestion is start small, and invest in things that will get used regardless of whether or not it pans out. A couple guest bungalows I think is a decent idea and a good start, not terribly expensive and probably you can still use them for something even if the tourism thing never works out. And if it down work out, then just build more and more of them as demand grows. You’ll probably also want some sort of a community center with refreshment options and a basic store. If you do it right, the store can double as a place for locals to come buy stuff even when they’re not staying there.
If it starts to take off, you could advertise this place as a retreat destination, for people wanting a venue to hold wellness retreats. I personally know a few people in the US that go to Peru regularly to hold wellness retreats for their clients, so I know there’s a market for that.