Embed Size (px)
Citation preview
Overcoming the Challenges to the Sustainability of Tourism in Caribbean SIDS.
Cletus Springer
Principal Consultant
Impact Consultancy Services Inc.
Abstract
Paper aims at identifying factors that contribute to and detract from STD
Contends that tourism is only industry in which region has competitive advantage
Identifies significant threats to sustainability
Need for simultaneous action at all levels to strengthen resilience of the industry
and the wider economies of SIDS.
Structure of Paper
CH1: Theoretical Constructs CH2: Economic O/view of Caribbean CH3: Nature of Global Terrorism CH4: Nature of Caribbean Tourism Ch5: Economic Impact of Tourism CH6: Social and Environmental Impacts CH7: Investment Mobilization CH8: Air Access & Distribution CH9: International Trade Agenda &Tourism Ch10: Conclusions CH11: Strategic Priorities
CH1: Theoretical Constructs
Vulnerability: proneness to damage from external forces.
Economic: risks faced by economies from exogenous shocks to systems of production, distribution and consumption;
Social: degree to which societies or socio-economic groups are affected by stresses and hazards (internal/external) that negatively impact social cohesion;
Environmental: risk of damage to natural eco-systems.
Theoretical Constructs (2)
Sustainable Tourism Development - an approach that: Develops tourism to the fullest extent possible; Promotes rational use of local, natural, cultural and
man-made resources; Diversifies the tourism product; Is responsive to changes in market demand; Uses a planning/implementation process that is
integrated, equitable, participatory, and consensual.
Economic O/view of Caribbean
Since 80s, built around, agriculture, manufacturing and tourism;
Since mid-1990s new focus on services Robust growth in first half of 1980s (avr.7.4%)
to avr. 2% in second half of 1990s; Contraction in 2000s due to 9/11 fall out and
Iraq war; fiscal restraint; structural adjustment; lower aid flows etc.
Downturn underscores vulnerability of region.
CH3: Nature of Global Tourism
Most competitive industry in world Complex/composite with many parts and many
actors World’s largest industry – by end of ‘03 will
generate 67.4 m jobs (2.6% of global employment); US$1280.4b of GDP.
TT Economy – by end of 2003 will generate 194.5m jobs (7.6% of global); US$3,526b of GDP;
Forecast demand – 3% real growth in ’03; 5.5% per year between ’03 and 2013.
Major trends in Global Tourism
Industry evolving and growing Sustained growth in “quality” tourism; Move from “mass” to more diverse and
specialized industry based on natural and cultural environment – “alternative” “eco-”; “green”; “nature”; and “heritage”
Influence of changes in preferences, demographics, values, lifestyles;
Emphasis on value for money; More information-intensive
Major trends cont’d
Impact of 9/11 Fear of travel; preference for close
destinations; premium on safety; more, shorter trips;
Strong growth in family values Still strong interest in Caribbean Good long-term future for Caribbean but
shortfall in revenue in short to medium term
CH4: Nature of Caribbean Tourism Equitable climate, hospitable people,
outstanding scenic beauty, sandy beaches, proximity to major travel markets, political and social stability;
Variation in maturity of destinations DR, B’dos, JA and Bah at high end; SLU, A&B, T&T and Bel at middle; SHN, D’ca, and SVG at lower middle; Strong similarities but Variations in product
Nature of C’bbean Tourism (2)
Accommodation sub-sector Hotels, apartment hotels, guest houses, self catering
apartments, luxury villas Growth in accommodation behind growth in stay-over
visitors High number of All Inclusives (AI) – debate on AIs - The
Sandals Effect Cruise tourism
Stronger growth than land-based Strong competition among ports Debate over economic rents of CT. Yachting Sector
Substantial growth Significant for G’da, SVG and SLU
Ch5: Economic Impact of Tourism Contribution to GDP – 22% in D’CA to
51% in B’DOS to 69% in SLU in 1999 Employment generation – 19% in D’CA
to 51% in SLU to 56 in BAH in 1999 Also FOREX and national income Weak linkage/strong leakage – on input
supplies, wages, profit and revenue Measuring the economic impact
Limitations, outcomes of attempts at EIA
CH6: Social Impacts
Positive – job creation; improved standard of living;
opportunities for linkage; increase in critical mass for viability; subsidization of infrastructure costs in remote areas; stronger appreciation of local culture and heritage;
Negative Weak/slow distribution of benefits; tensions
among local populace; over-consumption of resources; potential to engender crime, prostitution and spread of communicable diseases
Best Practice in Mitigating Social Impacts of Tourism
Bahamahost Programme Saint Lucia Heritage Tourism
Programme (SLHTP) Global Code of Ethics
Environmental Impacts of Tourism Impacts on coastal and marine environment –
coastal erosion; destruction of coastal and marine assets hence induced vulnerability to natural disasters
Land based impacts – high energy/water demand/use; untreated effluent; noise pollution;
Advances in Tourism Planning and Administration Jamaica Tourism Master Plan; CAST, St. James
Club, Green Globe Standard.
Investment Mobilization and Facilitation Growth in arrivals faster than growth in
accommodation – 40,000 rooms needed by 2010
Challenging investment situation Increase in equity requirements High rate of mergers and acquisitions Best Practices in Hotel Investment
Credit Enhancement; project financing, tax abatements
Investment Mobilization (2)
Business Operating Conditions High transaction costs and taxes Inadequate/inappropriate physical planning
Lack of integrated planning
Performance of Small Hotels Constraints of SMEs
Absence of economies-of-scale; Lack of professional/marketing skills Limited access to capital, HR, marketing
expertise and technology
CH8: Air Access and Distribution
Strong growth rates in airline industry except for 1991
Threats to sustainability Tour operators Hub & spoke system Cruise line factor State of regional airline industry
Impacts of 9/11 and Iraq War Air safety issues
CH9: The International Trade Agenda and Caribbean Tourism
Aims of the GATS Impacts of the GATS Elements of a regional strategy on GATS
Increasing value-added from tourism Enhancing capacity of small services suppliers Removal of restrictions placed by third countries Increasing direct market access of service
suppliers to main tourist originating markets Promoting the sustainable development of the
tourism industry.
Conclusions
Caribbean Tourism is highly vulnerable economically, socially and environmentally;
Clear recognition of some of things that can be done to build the resilience of industry;
Financial, HR and technical constraints to be overcome;
Innovative investment mechanisms needed; Backward/forward linkages to be strengthened capability for sustained tourism research to be
strengthened; especially in EIA Cooperative approach to strengthening air
access and distribution needed.
CH: Strategic Response
WTTC Strategic Priorities CTO Strategic Plan (2002-2012) National Priorities
Establish tourism as lead sector Stimulate and facilitate investment in environmentally-
sound tourism projects Project a positive identity in international markets Strengthen linkages Increase and sustain local participation in planning.
development and ownership of tourism Improve quality and attractiveness of experience Improve public’s perceptions and attitudes Participate and take advantage of regional initiatives .
