Nowadays, most human contact with pandas comes when we visit zoos. However, this might not last much longer.

As mentioned before, zoos must be profit-oriented to survive. Thus, they would choose to display those animals, which can provide the greatest draw at the lowest cost to maximize profit.

Pandas, being charismatic mega fauna, are a huge draw to visitors. Having pandas can potentially lead to a 20% or more  increase in visitors. Additionally, panda merchandise also sells. Panda hats, panda cups, panda outfits and stuffed pandas – all of these items sell well in zoo gift shops, which is one of zoos’ main avenues for revenue. This brings in large amounts of profit for the zoo. This effect is magnified by the rarity and visibility of pandas, which make them very lucrative investments. Or so we would think.

While pandas do attract tourist dollars to zoos, the cost of housing a panda is not cheap either.

The cost of renting a panda from China alone can go up to USD $ 1 million per annum. This does not account for the other costs of housing pandas, like the huge amount of bamboo they require each day or the specialized medical attention they need. Pandas also require expensive facilities and habitats, all of which must be paid for by the zoos. Any cub produced also belongs to China and zoos must pay a hefty ‘baby tax’ for each baby. They can only have the baby pandas till they are 4 and must then return them to China. If any pandas die, the zoo must also pay a significant fine.

While all these measures do help to ensure zoos value and protect their pandas due to the costs involved, it is also a heavy burden for the zoos who have limited resources. Unlike other animals, which can be bought for a one-time price, renting a panda requires long-term payment, which would add up to enormous amounts.

These exorbitant costs do not make it worthwhile for zoos to host pandas in their collections, especially since these resources can be spent on other less expensive attractions or used to further conservation and research efforts. As it is, pandas receive a disproportionate amount of funding compared to other species.

An interesting point, however, is that the rates of renting a panda differ from country to country and thus, act as a form of incentive for zoos to develop closer ties with their Chinese counterparts so as to enjoy lower rates. For example, the cost of renting a panda is around USD $1 million for American zoos whereas it could be as low as USD $250,000 per annum for other countries. Is this, too, a form of panda diplomacy?