Transcript Overcoming the Challenges to the Sustainability of Tourism

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
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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 socioeconomic groups are affected by stresses and
hazards (internal/external) that negatively
impact social cohesion;
 Environmental: risk of damage to natural ecosystems.
Theoretical Constructs (2)
 Sustainable Tourism Development - an
approach that:
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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,
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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
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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
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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
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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
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Stronger growth than land-based
Strong competition among ports
Debate over economic rents of CT.
Yachting Sector
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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
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Limitations, outcomes of attempts at EIA
CH6: Social Impacts
 Positive –
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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
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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
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Credit Enhancement; project financing, tax
abatements
Investment Mobilization (2)
 Business Operating Conditions
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High transaction costs and taxes
Inadequate/inappropriate physical planning
 Lack
of integrated planning
 Performance of Small Hotels
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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
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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
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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
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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
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Establish tourism as lead sector
Stimulate and facilitate investment in environmentallysound 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 .
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