Determinants of livelihood diversification: The case wildlife tourism in four coastal communities in Oaxaca, Mexico

Diversification is a process by which households increase the number of economic activities in different sectors to improve their well-being and chance of survival. The aim of this research is to study the determinants of livelihood diversification with a specific emphasis on wildlife watching in the coastal communities of Oaxaca, Mexico. Based on household surveys, two econometric models were used to examine the differences regarding the asset determinants for those households increasing the number of economic activities and those involved in wildlife tourism. The results reveal four common variables distributed between capitals and specify that average household age, environmental consciousness, characteristics of the land, membership or participation in an organization (cooperative) and government transfers are determinants of a household's diversification into wildlife tourism. Policy recommendations include focusing on households with young people, providing support for social capital and policy coherence to guarantee basic needs and tourism planning design.