Investing In Our Planet: Koh Tao

Local solutions for local challenges

May 21, 2023

It’s 11 a.m. and the Koh Tao pier is buzzing. Tourists make their way after disembarking the ferry boat from Koh Samui and Koh Pha-Ngan to enjoy their vacation. They make one pit-stop before proceeding on, at the Pier service fee collection point run by the Koh Tao Municipality. Introduced with the support of the United Nations Development Programme (UNDP)’s Biodiversity Finance Initiative (BIOFIN) in Thailand, a nominal fee of THB 20 (approximately $0.60) is collected from each tourist who visits the island, to generate revenue required by the municipality in the maintenance of public services including waste management, water disposal, conservation of natural resources and biodiversity, tourism promotion and strengthening Koh Tao local communities. 

This first-of-its-kind legal framework was announced back in 2021, and with an issuance of the amended municipal ordinance by the Koh Tao sub-district Municipality Office, the tourist user charges have been officially collected since April 2022. One year on, the municipality is dedicated to ensuring that the funds generated from tourism will finance biodiversity conservation on the island. 

Koh Tao, a small paradise island located on the east side of Surat Thani coastline in Thailand is well-known for its stunning white beaches, marine life activities and is one of the world’s top diving destinations. In recent years, Koh Tao has been making a name for itself as a smart and green city, paving the way forward to be a sustainable and exemplary island of choice. 

“It was quite challenging initially when the fee was to be introduced, since it had never been done before for this reason. However, working with the Ministry of Interior (MOI), we ensured to follow a process that was compliant with the law and within the legal framework. We have been able to successfully carry forward this initiative for over a year now,” says Apichart Meepien, Deputy Mayor, Koh Tao Sub-District Municipality Office. 

Although there are rules and regulations in place, it was evident that they were not necessarily relevant nor consistent with the nature of the problems at the area level in Koh Tao. Identifying this, the BIOFIN project together with partners on the ground such as Raks Thai Foundation and local government entities, as well as a key partner from the finance sector-Krungthai Bank (KTB) have been working together to create sustainable partnerships to address some of the pressing issues on the island. From waste management to coral reef restoration, the whole-of-society approach is evident in the results. One such platform is the institutionalization process through the Koh Tao Environmental Working Group. This group, consisting of volunteer representatives ranging from community leaders to taxi boat groups, diving instructors, fisher folk, women headed small businesses along with members from the municipality, have been working together to discuss, understand, and provide local solutions to local problems – particularly on the development of the Koh Tao Strategic Plan and Budget. 

The Environmental working group uses both a participatory process and bottom-up approach to work hand in hand with the local municipality through the updating of its environmental plan, which complements the Koh Tao Municipal workplan and budget. While waste management is one of the key challenges that needs to be prioritized due to the volume of waste being generated by tourism, there are numerous ongoing initiatives including coral reef conservation, sustainable fishery and sustainable tourism projects

This was evident firsthand, when an additional 32 fish aggregation devices were deployed just off the coast of the island to mark International Mother Earth Day on 22 April 2023, with the participation of the UNDP Resident Representative for Thailand and Senior Executive Vice President - Head of Retail Banking Sales and Distribution Group, Krungthai Bank, along with wider representatives that work together through the BIOFIN project in Koh Tao.

Impacts of overfishing and marine pollution have resulted in great challenges for local fisherfolk, who rely on the ocean for their occupation and income generation activities to support their families. Through the deployment of these devices which consists of buoys tethered to the ocean floor with concrete blocks, the surrounding ocean areas are coming back to life. The initiative has made fisherfolk and diving groups more aware of sustainable fishing techniques, which means leaving enough fish in the ocean and protecting habitats and threatened species. This has also resulted in minimal conflict among fishermen and scuba diving operators to share these natural resources for their own purposes.

KrungThai Bank

“The fisherfolk and diving community have come together through this initiative to understand that if we don’t safeguard the ocean and protect its biodiversity, we will not be able to maintain our livelihoods. With the devices released today, we have deployed close to 1000 concrete blocks up to now around the island with the guidance of environmental and technical experts,” says Mr. Charoensuk Sookpol a.k.a Chor, President of the Koh Tao Fisherfolk Group. 

Creating sustainable finance solutions for People and Planet

UNDP’s BIOFIN works with countries to create sustainable finance solutions to not only protect biodiversity, but to let it flourish. In Thailand, BIOFIN is piloting 9 ongoing projects to reduce the finance gap for biodiversity management in the country, focusing on supporting the sub-national level to implement flagship finance solutions. 

The initiative also creates greater awareness on financing for nature while also providing a platform for biodiversity conservation activities designed by local communities. Projects across Koh Tao include a social fund for Taxi boat groups and fisherfolk, biodiversity data collection for coral reef management, policy advocacy through legal framework amendment, awareness raising on biodiversity conservation, and kids camp by Koh Tao Youth Group, sustainable business initiatives by Koh Tao Women’s group and waste management by the local municipality to name a few.   

The tourist user charge is an innovative finance solution for biodiversity being piloted by BIOFIN under the sustainable tourism signature solution. It led to the legacy of the so-called ‘Koh Tao model’ for which it will be replicated by her sister island- Koh Pha-Ngan by 1st of May 2023 and by other non-protected areas in this country. The collection of tourist user charges at THB 20 per tourist will have a substantial financial result for biodiversity conservation. The decentralization process for the local government unit of Koh Tao is the key success factor for implementing the finance solution at sub-nation level. The finance results of $200,00 per year could be earmarked for biodiversity conservation.  By safeguarding the beauty of Koh Tao’s coral reefs with proceeds from the pier fees, the future cost for biodiversity conservation will be addressed systematically. 

“What adds to Koh Tao’s success is the whole-of-society mind set shift that we have seen over the past few years. We’ve seen an evolution from just trying to raise profits and attract more tourists, to creating a more sustainable and environmentally conscious tourism experience that truly makes Koh Tao unique. I am thrilled to see the results of UNDP BIOFIN’s work that has contributed to this change and will continue to support local communities in working towards Thailand’s ambitious climate priorities,” says Renaud Meyer, Resident Representative for UNDP in Thailand.

Renaud Meyer, UNDP Resident Representative to Thailand

KrungThai Bank

One such group, the Koh Tao Women’s Group has been making great strides with the support provided through the project. By identifying a unique, natural and sustainable value-proposition, the women’s group works tirelessly to promote and encourage local tie-dye products to tourists that visit the island. From bucket hats to tote bags, while also having the opportunity to learn the tie-dye process that is followed, tourists have everything under one roof!

With BIOFIN’s Gender Action Plan for Koh Tao, the Koh Tao women’s group was empowered by building capacities on financial & digital literacy and providing them with seed funding to kick-start or develop their businesses. These initiatives were also some of the ways in which the extensive partnership with Krungthai Bank is supporting local communities for biodiversity conservation on the island. From spearheading the ‘Koh Tao, Better Together’ crowdfunding campaign that provided temporary reprieve to community organizations impacted by the income losses during the COVID-19 pandemic, Krungthai Bank has gone on to renew their commitment, working together with UNDP’s BIOFIN project and local authorities to support local communities to withstand shocks and adapt more sustainable alternatives to create a more resilient society. 

With BIOFIN’s Gender Action Plan for Koh Tao, the Koh Tao women’s group was empowered by building capacities on financial & digital literacy and providing them with seed funding to kick-start or develop their businesses. These initiatives were also some of the ways in which the extensive partnership with Krungthai Bank is supporting local communities for biodiversity conservation on the island. From spearheading the ‘Koh Tao, Better Together’ crowdfunding campaign that provided temporary reprieve to community organizations impacted by the income losses during the COVID-19 pandemic, Krungthai Bank has gone on to renew their commitment, working together with UNDP’s BIOFIN project and local authorities to support local communities to withstand shocks and adapt more sustainable alternatives to create a more resilient society. 

Commenting on Krung Thai Bank’s commitment, Ms. Nuansiri Vaidyanuvatti - Executive Vice President of Krung Thai Bank mentioned, “For KTB, investing in Koh Tao goes beyond achieving CSR objectives- investing in localized solutions to reinvest in nature and local communities by enhancing their capacity and developing sustainable careers. Supporting BIOFIN projects to foster harmonious coexistence between humans and nature, from career development initiatives to biodiversity conservation raising environmental awareness among young people, while fostering financial literacy to enable the locals to efficiently manage their finance, KTB looks to support the basis of better life and sustainable growth.” 

The Koh Tao Tourism Association too is now looking beyond, to enhance and amplify the need of investing in our planet. “Fragile ecosystems are being threatened and abused by tourism. Therefore, we have a responsibility to share our knowledge on island tourism- looking at best practices and integrating community solutions as we rally towards a common cause,” says Mrs. Ramluek Atsawachin, President of the Koh Tao Tourism Association.

Ramluek Atsawachin, President of the Koh Tao Tourism Association.

KrungThai Bank

The association plans to host a policy dialogue, a first of its kind in the coming months for other island destinations, creating a common platform to share challenges and solutions that could be replicated in other island tourist hotspots. Hotel owners play a critical role in this endeavor. Ban’s Diving Resort demonstrated some of the best practices that have been introduced, to continuously evolve and provide the tourists with a zero-waste experience during their stay. 

While #EarthDay2023 reminded everyone to ‘Take Action, Invest in our Planet’, it must not stop there. It’s a wakeup call that underscores the importance of engaging governments, institutions, businesses, and people worldwide to play their part. Everyone is accounted for, and everyone is accountable. The world is now ‘halfway there’, with this year marking the halfway point in the implementation of the Sustainable Development Goals (SDGs). The BIOFIN initiative will continue to rally efforts to support the management and financing of biodiversity conservation in Thailand by fostering cooperation between relevant agencies, stakeholders, the private sector, and wider society to scale up action on nature. 

To close the gap and understand the value of nature and services that it gives, we must invest in our planet. After all, without nature there is no humankind.   

Photo by KrungThai Bank