The Futaleufú area of Palena District Chile, is rich in natural resources of timber, water,
precious metal, and natural scenery that attract competing interests concerning utilization. This predominantly rural region relies on small-scale agriculture and fisheries as its principal industries, and currently ranks among Chile's lowest in economic performance.
Adventure travel and
ecotourism have been steadily contributing to growth in recent years, as Chilean and international visitors are attracted to the area's rugged mountains and whitewater rivers.
X Region is, in fact, visited by international tourists more than any other rural region of Chile. These same mountains and rivers, however, are prime targets for resource development by mining and
hydropower companies. Hydropower development promises affordable electricity and creation of new jobs in the region, and
mining industry would likely follow with more jobs. However, such activities would exclude much traditional economy and tourism around the Futaleufú, possibly displacing more jobs than they create for local residents. Reservoirs, new roads,
land degradation, and mining sites are largely incompatible with previous land uses in areas where this new infrastructure would be established. If completed, dams and their accompanying infrastructure would open previously remote areas to mining activities—for which some companies already have listed claims. This raises issues of
environmental justice, as many local people, including some of indigenous heritage, would be disenfranchised by changing land use and economic structure. Some energy from hydropower companies would be used locally by residents, mining operations, and other industry, but Endesa's previous plans suggest that most electricity would be transmitted northward to Chile's metropolitan areas, which commonly experience power shortages. Many residents and community organizers believe that tourism may be the key to a more sustainable path toward development in Palena and be better for its communities in the long run. In the absence of hydropower and extractive development, tourist visitation is expected to continue increasing in coming years, drawn by the Futaleufú's pristine whitewater and unspoiled natural scenery. Ecotourism is already bringing an influx of money to the region and can multiply benefits in the future. However, the industry must be managed carefully to minimize environmental impact and empower local communities. High traffic during the tourism season can cause degradation from transportation demands, energy use, and waste. Additionally, if tourist attractions and infrastructure are not owned and operated locally, revenue may escape the region rather than capturing benefit for the people who live there. ==Nonprofit organizations and activists that advocate for the Futaleufú==