Wednesday, 7 October 2015

JAMAICA: Leveraging One Caribbean Tourism Despite Competition

Despite competition among Caribbean destinations, there has to be collaboration and cooperation to strengthen the Caribbean brand

Tourism is one of the fastest-growing industries globally. It has come to the rescue of many underdeveloped and developing countries, where it has replaced traditional industries such as agriculture and manufacturing. As World Tourism Day is being celebrated, it is imperative to reflect on the emergence and evolution of tourism in the Caribbean and to contemplate the future of this industry in a region that highly depends on tourism economy.

While this contemplation goes on, changes are taking place in the Caribbean tourism landscape. Changes are inevitable, but more so with the phenomenon of tourism. People's desire to travel, preferences and needs change. A destination's target market will also change, so do the physical and natural landscape of any tourism offering due to human and environmental disturbance. Economic indicators will also change. There will be new developments in technology that will force change in operations. There will be change in political systems which will influence policy decisions and operation of the tourism industry. Change will always occur, but it is not the change that should be the worrisome issue; rather, how prepared a tourism destination is , be it a country or region, to mitigate the impacts.

The dynamic nature of tourism leverages changes to the modus operandi in the Caribbean region, hence, the discussion on a Caribbean Tourism Model and the Caribbean Basin Tourism Initiative.

Caribbean Tourism Model

There have been several endorsements for tourism development in the Caribbean. The United Nations World Tourism Organization (UNWTO) continues to encourage tourism development in countries such as those in the Caribbean because of its potential to grow economies.

Perry Christie, prime minister of The Bahamas, in his address to the Caricom Community at the opening of the 36th Caricom heads of government summit in Barbados, emphasised that tourism development should be taken more seriously, and thus should be on the agenda of heads of government and regional meetings. He stressed the importance of tourism development in reducing unemployment and debt burdens and growing the economies of the region.

This message was not left unheard. The Caribbean Tourism Organization (CTO) hosted a four-day workshop in July of this year to conceptualise new ideas and fresh thinking in order to reinvent the Caribbean tourism product under the theme 'Developing Viable and Sustainable Tourism Products'. The Singapore Model was used as the benchmark for the forum.

But, what is the Singapore Model, and can this leverage change to tourism development in the Caribbean? This model focuses on four key areas: tourism experience, tourism planning, tourism product development, and tourism destination and products. This model is based on a "YourSingapore" destination brand and a vision that speaks to "a vibrant and inspiring Destination Singapore". It is built on the premise of "a dynamic tourism landscape for Singapore in partnership with industry and community". The Singapore Model is based on long-term strategic planning and a marketing thrust that pushes the destination as a place for business, leisure, health care, and education. The "YourSingapore" destination brand suggests ownership of tourism by the stakeholders, inclusive of visitors and residents. Increase in visitor numbers is planned carefully through a yield-driven quality growth strategy. There is strong collaboration between the tourism board in Singapore and industry stakeholders to create value for visitors, increase industry performance, competitiveness and business opportunities, and establish long-term partnerships. The outcome of this model is that Singapore, which is only 700 square kilometres, has an average of 15 million visitors per year. Bearing in mind that Jamaica is 15 times larger in land mass than Singapore.

It is the aspiration of CTO to have a Caribbean tourism model. Let us analyse some realities. Singapore is only one country while there are several countries in the Caribbean. Can the Caribbean tourism model benchmark this vision and mission within a framework of divided land mass and varying political, social and economic systems?

What was most profound in Prime Minister Christie's message at the summit was his remark that the next generation will have a "much greater burden to carry if we don't begin to focus on ways to make our natural strengths stronger". This suggests that tourism operations in the region cannot operate the usual way. It has to be rejuvenated with new and complementary product offerings to attract and engage the tourist and create competitive advantage amongst other tourist regions, bearing in mind that this has to be done in a sustainable way. Sustainable tourism development suggests that the needs of visitors, residents and other stakeholders be met, taking into consideration the political, environmental, economic, social, and cultural environment in order to preserve the resources for future generations (UNWTO, 2011). Sustainable tourism development is no longer a buzz concept, but what is required now to ensure that this economic phenomenon continues to exist.

Can tourism development in the Caribbean be sustainable? Caribbean tourism is based predominantly on physiography and tropical climate. With the onset of climate change and its effects on these resources, there is the need for in-depth focus and analysis as to what to do now so that tourism can continue to exist. Being small island states and developing economies, it can be difficult to introduce and implement some of the measures to ensure sustainability. Greater economic benefit is gained from the mass tourism model. Tourism considered to be sustainable is not profitable, and the power law distribution theory explains that mass tourism provides more revenue than niche markets.

Whilst Caribbean countries depend on foreign direct investment via tourism, there are associated economic costs, mainly economic leakage, occurring from the importation of goods and services outside of the region. Is it that Caribbean countries will be providing more goods and services within the region to supply each other and reduce economic leakage? This would be a very good opportunity for the growth of supporting industries such as information technology, banking and finance, agriculture and manufacturing. This would be welcoming to residents; providing them with the needed employment opportunities. Scholars have found that residents will favour and support tourism development if they will derive economic benefit. There will be demand for education and training in the various areas, and so these institutions are poised to benefit from industry linkages. Competent human capacity is one of the pillars of economic and social empowerment.

Caribbean Basin Tourism Basin Initiative

The Caribbean Hotel and Tourist Association (CHTA) is suggesting a Caribbean Basin Tourism Initiative with the United States of America (US) for regional tourism development where all Caribbean countries will benefit. This stems from the anticipated disruption of the US tourism market in the region due to the restoration of diplomatic relations between them and Cuba, which should lead to the removal of US-imposed embargo. This renewed USA-Cuba relationship is perceived to be a threat to tourism in many Caribbean countries. The prediction is that more Americans will be visiting Cuba, and so countries such as Jamaica and The Bahamas, which are popular destinations in the region for American visitors, will face a decline in that market, thus disrupting their tourism economy.

Tourism in Cuba is not new, and therefore is not new competition. Like many other countries in the region, tourism has been used to counter the effect of the declining sugar industry and to diversify the economy. In 2014, Cuba had a visitor count of over three million with the majority coming from Canada, seconded by Europe. Certainly, US travellers will want to visit Cuba because of the newness of the product to them. The unknown destination and the curiosity surrounding the Pearl of the Caribbean; Cuba's political history, cultural practices, norms, history, and heritage; and even nostalgia for Cubans who migrated, among other features that the "new tourist is seeking", will drive this market. Hence, there will be new competition in the region for US visitors.

The anticipated increase in visitor interest to Cuba, especially from the US, should not be a deterrent to tourism in other Caribbean destinations. It should be a change where leverage can be applied to maximise regional competition through 'collaborative tourism'. There are numerous possibilities surrounding regional tourism partnership and collaboration to include the building of human expertise for the industry, expansion in manufacturing and trading of goods and services to supply the region, thus increasing sufficiency and retaining economic gain for further growth and development, and benchmarking best practices to strengthen tourism operations.

Countries such as the Dominican Republic and Jamaica already have long-standing relationships with Cuba, and this would further facilitate partnership in tourism. One of Jamaica's local hotel chains, Sandals Resorts International, currently operates in the wider Caribbean, their model could be used to bridge some of the divides, such as cultural differences and trade relations. There are possibilities of island hopping for countries in close proximity to Cuba and increase airlift to the region from across the world, making the Caribbean more accessible. Common among Caribbean people is the taste for spicy and sweet foods. Food, condiments and confectionaries made in the region can be traded among country destinations.

According to CHTA , American visitors who seek vacation packages on impulse may now prefer to travel to Cuba because of the proximity. It means that the rest of the Caribbean can benefit from long-haul visitors through strategic marketing. All of this requires leverage of change and co-operation. Despite competition among Caribbean destinations, there has to be collaboration and co-operation to strengthen the Caribbean brand. However, the questions are: Is the need for change recognised by all Caribbean destinations? Are these changes desirable? Can these changes occur? The challenge is how to bypass the political, socio-cultural and economic differences among Caribbean destinations and collectively benefit from the 'One billion tourist, one billion opportunities' (World Tourism Day 2015 theme).

Caricom, CTO and CHTA all have very important roles in charting this pathway.

Despite competition among Caribbean destinations, there has to be collaboration and co-operation to strengthen the Caribbean brand.

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