Tourism: Another Look

Submitted by Looking Glass

Faith in the automatic forces that push tourism and the economy requires a large does of optimism. Perhaps we should look beyond our own optimism and preferences to the context in which those opinions have meaning.

First Mark King, director of the Black Bess project was reported to inform the Nation that “I don’t discuss matters with the press.” End of story. Would he have dared to tell that to the North American, British or Chinese media? Not on your life. He would have been at least relegated if not fired. It says a lot when those on whom you depend treat you to crass indignity.

1) Thanks to publicity and the inevitable global economic turnaround Barbados tourism is said to be “well positioned to be among the first to benefit from a revival in international resort tourism.” (Advocate 11/30/09). Yes the economic turnaround favours the West and North coast hotels (about1/3 of 111 or so hotels and guest houses on the island) what about the rest? However, the same can hardly be said for those other hotels dependant on lower income visitors. Personal bankruptcy in North America, your biggest market, is at record levels and growing larger by the day. In the USA banks are being closed or taken over by government faster than the sale of big homes on the Rock.

Two pictures with hardly more than a ‘caption’ of Serena on MSN— one from there with nipples projecting, the other from elsewhere with her tail-end projecting from a yellow outfit—is a reminder that there is publicity and there is publicity. Contrary to popular belief our profile internationally is no longer what it used to be. Cuba, Jamaica, Mexico, the Dominican Republic and Costa Rica are permanent features in the North American travel media. The same cannot be said of Barbados, Ask why it is that we are largely excluded.

2) Tourism spending up despite fewer arrivals. The island is doing well in terms of the amount the tourists are spending (Nation Nov, 5, 09). The statement is misleading, a reminder that the returns from tourism are overstated. A round trip from London may cost 1,500 pounds or more, but how much of that money ends up in Barbados? Most affluent Brits and wealthy others stay at the West and North coast hotels. Their share of the pie is usually deposited in overseas bank accounts; so too the air fare, the travel agent and wholesalers’ fees. Hardly any pickings are left for the South Coast and other hotels who are dependant on the lower income tourist. Most of the tourist expenditure is on imports items, which suggest that spending may be up but not net revenue. Some time ago it was estimated that only 25 cents of every tourist dollar remained on the island. It can hardly be more today.

3) The Minister mentioned tells us that Jamaica is in the business of “discounting.” Is he implying that some things are left out or deducted from the accounting as being unreliable? Or is he referring to price cuts in accommodation? If the latter he should think again. So far lower accommodation costs have resulted in more visitors, more spending and less unemployment in the industry: profit made on volume, not price per se. Luxury resorts in the Bahamas have discounted accommodation (prices) 25-50% for December and January; and others have followed suit including some with limited airlift.

In addition proximity to the North America market, superior advertising and marketing, the exchange rate and cheap duty free play a large part in Jamaica’s success. And this despite their socio-economic problems. By comparison Barbados remains short on airlift, has the most expensive duty free in the region and is presented as an expensive and high end destination,

In 1984, having started from scratch, we attracted 9600 tourist from Canada, Jamaica about 3000. Before the global crisis we were getting 4-5000 a year. Jamaica now attracts about 100,000 visitors a year. West Jet now has a bi-weekly direct 1400 seat service to the Bahamas, and BA a five times a week service to Dominican Republic (DR) starting at a measly 621 pounds compared to the 1,500 roundtrip cost to Barbados. The DR also signed bilateral flight pacts/air service agreements with countries like The Arab Emirates, Jordan, Turkey and Iceland, opened an office in Vienna from which to expand into the EU, and will host the 2010 cruise industry conference.

Trinidad is coming on stream. Boeing has pledged to help Caribbean Airlines to “reduce up-front parts provisioning and long term inventory holding costs,” and guarantee spare parts service (TTC Dec 09/09). Cost reduction, enhanced efficiency and cheaper dollar will likely mean less business for us. Could all these countries be doing things wrong? Our woeful strategic target marketing/advertising/sales skills need urgent revision.

4) Some of the statements suggesting increase in arrivals, spending and job generation are indeed misleading in that they convey dubious information, in effect false hope. How much the tourist spends is largely a matter of guesswork. Merricks for example is said to provide 2000 jobs. Chances are these will be short term jobs. Once completed and operative full time employment it is unlikely to exceed 500, with most of the high level positions taken by foreigners.

5) Finally, consider some implications of the proposed yachting facility at Bathsheba, the Black Best, Merricks (there may be much more here) and similar projects: More land lost to agriculture, no ground cover, vegetation, plants and trees to contain soil erosion…or bees to pollinate. This translates into greater import dependency which, along with increasing imports and utilities cost (light, power and water), inevitably drive up the cost to local consumer. The Barley Loaves are insufficient to support the growing mass.

And despite our water shortage another 18 hole golf course requiring a daily dose of 3000 gallons. Water (and food supply) is likely to be the next major world crisis. Already 40% of Peru’s glacial ice caps has disappeared, and there is shortage from Lima to Nepal. Rice fields are being abandoned and the rice processing plant closed in Australia. The Murray-Darling River is said to be running out of water. Desalinization is now a possibility around Adelaide. And the USA is not buying water from Dominica to help that country. A global water and food shortage will only add to our socio-economic woes. All things considered the socio-cultural cost is likely to exceed the benefits from unfettered tourism.