Cost-benefit analysis of indigenous music as a strategy for sustainable tourism development in Andean communities in Ecuador

Bacilio Segundo Pomaina Pilamunga, Víctor Raúl Chucho Cuvi, Deisy Valeria Quevedo Amay and Esteban Xavier Contreras Peñaherrera

Management (Montevideo), 2025, vol. 3, 331

Abstract: Introduction: Indigenous music in Ecuador's Andean communities represents a valuable cultural heritage with the potential to promote sustainable tourism. Its integration into tourist routes can generate economic benefits and strengthen local cultural identity. Objective: To evaluate the relationship between the cost-benefit analysis (CBA) of indigenous music and its cultural and economic impact on Andean communities in Ecuador within the context of sustainable tourism development, considering financial variables. Method: A mixed-methods study with a concurrent design was conducted. The qualitative phase consisted of ethnographic research in the parish of Sicalpa, Colta canton, with participant observation, 700 sound recordings, and 20 audiovisual recordings. The quantitative phase used a cost-benefit analysis (CBA) and contingent valuation to estimate the economic value of musical heritage and tourists' willingness to pay. Indicators such as Net Present Value (NPV) and Internal Rate of Return (IRR) were calculated to assess the financial viability of musical tourism routes. Results: Indigenous music has significant economic value, with tourists willing to pay a high price for authentic experiences. The CBA projects a positive NPV of $150,000 USD over 5 years and an IRR of 18%, exceeding the social discount rate. Direct economic benefits (employment, income) and indirect benefits (strengthening of cultural identity, social cohesion) were identified. Conclusion: Indigenous music is a cost-effective strategy for sustainable tourism development in the Ecuadorian Andes, generating positive economic and social returns. The implementation of public policies that support community management and the creation of tourism products based on musical heritage is recommended.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:dbk:manage:v:3:y:2025:i::p:331:id:1062486agma2025331

DOI: 10.62486/agma2025331

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