Environmental organizations have generally insisted that ecotourism is nature-based, sustainably managed, conservation supporting, and environmentally educated. The tourist industry and governments, however, focus more on the product aspect, treating ecotourism as equivalent to any sort of tourism based in nature. As a further complication, many terms are used under the rubric of ecotourism. Nature tourism, low impact tourism, green tourism, bio-tourism, ecologically responsible tourism, and others have been used in literature and marketing, although they are not necessarily synonymous with ecotourism.The problems associated with defining ecotourism have often led to confusion among tourists and academics. Many problems are also subject of considerable public controversy and concern because of green washing, a trend towards the commercialization of tourism schemes disguised as sustainable, nature based, and environmentally friendly ecotourism. According to McLaren, these schemes are environmentally destructive, economically exploitative, and culturally insensitive at its worst. They are also morally disconcerting because they mislead tourists and manipulate their concerns for the environment. The development and success of such large scale, energy intensive, and ecologically unsustainable schemes are a testament to the tremendous profits associated with being labeled as ecotourism. Negative impact
Ecotourism has become one of the fastest-growing sectors of the tourism industry. One definition of ecotourism is "the practice of low-impact, educational, ecologically and culturally sensitive travel that benefits local communities and host countries". : 71  Many of the ecotourism projects are not meeting these standards.
Prior to logging restrictions imposed by the Chinese Government the industry made up 80 percent of the regions revenue. Following a complete ban on commercial logging the indigenous people of the Yunnan region now see little opportunity for economic development. Ecotourism may provide solutions to the economic hardships suffered from the loss of industry to conservation in the Yunnan in the same way that it may serve to remedy the difficulties faced by the Maasai. As stated, the ecotourism structure must be improved to direct more money into host communities by reducing leakages for the industry to be successful in alleviating poverty in developing regions, but it provides a promising opportunity.Drumm and Moore (2002) discuss the price increase and economic leakage in their paper; saying that prices might augment since the visitors are more capable to pay higher rates for goods and services in opposition to the locals. Also, they have mentioned two solutions regarding the previous issue: (1) either a two pricing system represented as two separate price lists (the first for the locals and the second for the tourists with respect to the locals purchase power ability); (2) design unique goods and services subject only or the tourists’ consumption. Leakage appears when international investors import foreign products instead of using local resources; thus, the tourists will be using international products and in-turn contributing to the outside economy rather than the local one (Drumm & Moore, 2002). Direct environmental impacts
Ecotourism operations occasionally fail to live up to conservation ideals.