Comprehensive Notes on Caribbean Tourism Fundamentals

Fundamentals of Caribbean Tourism

• Fundamentals of Caribbean Tourism addresses major themes of Unit ONE CAPE Tourism.
• CAPE Tourism Unit TWO: Caribbean Tourism Product Development, Marketing, and Entrepreneurship.

Module One: Concepts and Issues

• Caribbean tourism should adapt to political, technological, social, and economic changes.
• Caribbean governments must invest in market research.
• Tourism:
  • Caters to recreational needs.
  • Travel for recreation, leisure, religious, family, or business purposes.
  • Social, cultural, and economic phenomenon.

Interdisciplinary Nature of Tourism

• Sociology and Tourism:
  • Tourism marketing organizations rely on sociologists to understand the social impact of travel.
  • Important link: coexistence in an environment of respect and tolerance.
  • Tourism has affected the social structure and functions of many people in the Caribbean.
• Tourism and Economics:
  • Hires millions of people.
  • Generates foreign exchange.
  • Creates linkages between industries.
  • Boosts economic growth.
  • Creates employment.
  • Provides tax revenue for government.
  • Aids with a country's balance of payment.
  • Results in the multiplier effect.
  • Economic leakage takes place as many tourist entities are owned and operated by foreigners.
• Tourism and Anthropology:
  • Study of past and present culture.
  • Emphasis on earning from cultural resources.
  • Concerned with how tourism changes a culture.
  • Informs marketers how to package and sell products and services to tourists.
  • Shows the importance of cultural preservation
• Tourism and Geography:
  • Dependent on natural and human resources.
  • The environment is the tourism product.
  • Helps identify natural attractions.
  • Regulate resource use and management.
  • Regulate the impact of visitors on the environment.

Classification of Tourism and Tourists

• Tourist: people traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business, or other purpose (UNWTO).
• Domestic Tourism: leisure activities within their own country.
• Regional Tourism: leisure or entertainment within a particular region.
• International Tourism: travel from one country to the next outside their region.
• Inbound: Non-Resident visits a given country.
• Outbound: Resident leaves that country to visit another one.

Push and Pull Factors of Tourism

• Pull factors: characteristics of the host country that influence people to visit.
• Push factors: situations in the home country that influence a tourist’s need to visit a destination.
• Push motivation: Escape from daily routine, spend time with family, or adventure.
• Pull motivation: Attractions of scenery, historical sites, recreation facilities, cultural attractions.

Global and Caribbean Overview

• Travel and tourism is the world’s largest industry.
• International tourism is going through a phase of radical change.
• According to the World Bank in 2016 government tourism receipts reflected 1.393 billion US dollars was generated worldwide from tourism in 2016.
• Globally tourism contributed $7.6$ trillion US dollars directly, indirectly, and inductively.

Historical Perspective on Tourism in the Caribbean

• Post World War II Era (1950s-1960s):
  • Economic Improvement: Higher incomes and longer holidays in North America and Europe.
  • Technological Advancement: Development of aircrafts offering regular and commercial airline services.
  • Innovation in Business: Shipping companies turned cargo ships into cruise ships.
  • Rise of Travel Agents: Collaboration with airlines and hotels to offer package holidays.
• Late 20th Century:
  • Ageing populations needing warmer climates.
  • Affordable flights due to airline industry competition.
• The Prohibition Era:
  • Americans flocking to Cuba and Bahamas for alcohol and gambling.
  • Development of tourism infrastructure in Cuba, interrupted by trade embargo in 1961.
• Significant of Tourism in Caribbean History *Incentives to investorsTax holidays and reduced import duties.
  • Job Opportunities for locals
    *Locals could get jobs in the industry
  • Arts due to the tourist insatiable appetite for local culture, art, cuisine, music and dress, the creative and performing arts industry thrived as a result.
  • Business linkages created Boom in the service trade, increased distribution contracts for beverage companies, transportation and tour operators increased Business linkages created
  • Social investment with money earned from the industry Government had increased revenue to build and expand schools and clinics. This increased the standard f living of most Caribbean territories.

Factors Influencing Tourism Development

• Accessibility via air or sea.
• Education and training of locals.
• Investment in infrastructure.
• Level of safety and security.
• Marketing and promotion.
• Competitive pricing.
• Diversifying tourism offerings.

Emergence of Tourism in Different Caribbean Regions

• Dutch (Suriname):
  • Early development of nature tourism.
  • Political unrest in the 1980s impacted industry.
  • Expensive airfares and visa restrictions.
• Spanish (Dominican Republic):
  • Tourism development started late.
  • Sugarcane, tobacco, coffee were long industries.
  • Puerto Plata zone was the first area developed.
• French (Guadeloupe):
  • Relied on sugarcane and banana exportation.
  • French and American tourists attract to the beaches and cultural experience.
• English (Jamaica):
  • Cultivation of sugar cane and the manufacturing of sugar.
  • Tourism industry started quite early.
  • Government saw tourism as an economic strategy to diversify the developing economy.

Contribution of Tourism to the Caribbean Economy

• Measured in terms of its effect on income, employment, investment, and balance of payment (UNWTO).
• Generates revenue for government and private sector.
  Economic leakage takes place where tourist entities are owned and operated by foreigners who remit funds to their homeland.
• It has led to increased infrastructural development in tourist hub.

Tourism Impacts

• Socio-cultural, economic, and environmental categories.
• Economic Impact:
  • Foreign Exchange.
  • Employment.
  • Provides government revenue.
  • Rise in Real Estate value.
  • Economic Linkages.
• Environmental Impact:
  • Dependent on beaches, forests, mountains, rivers, land, and sea.
  • Sustainable Tourism promotes responsible use of the environment.
• Socio-Cultural Impacts:
  • Service-oriented industry dependent on relationships between tourists, providers, and citizens.
  • Can create conflict and tension.
  • Two-way cultural exchange revitalizes local arts and crafts.
  • Commodification of culture to meet tourist needs.
• Doxey’s Irritation Index (Irridex) Model:
  • Framework for studying the impact of tourism on local communities.
  • Euphoria, apathy, annoyance, antagonism stages.

Challenges Facing Caribbean Tourism

• Inadequate training and education.
• Lack of human and financial resources.
• Lack of teamwork and collaboration.
• Need for community-based tourism.

The Tourism System (Leiper, 1979)

• Traveler Generating Region (TGR).
• Transit Route (TR).
• Tourist Destination Region (TDR).
• Inter-related organizations with specific functions.

Structure of the Tourism Industry

• National Level:

  • Ministry of Tourism.
  • Tourist Board.
  • Tourism Investment company.
  • Private national organizations.

• International Organizations:

  • UNWTO.
  • Caribbean Tourism Organization.
  • Local Hotel Tourism Organizations.

Pyramid of Tourism Segmentation Model

• ECOTOURIST
• SPECIAL INTEREST TOURIST
• For eg. CULTURE/HERITAGE TOURIST, ADVENTURE TOURIST, LOCAL/COMMUNITY BASED TOURISM
• SUN-LUST TOURIST
• All-INCLUSIVE TOURIST
• CRUISE PASSENGER
• Tourist may transition from one segment to the next, moving either up or down within a visit or on new visits (Jawardena, 2007).

Areas of Linkages in Tourism

[Image of Areas of Linkages in Tourism]

• AGRICULTURE
• ANCILLARY SERVICES
• MANUFACTURING
• Tourism
• TRANSPOTATION
• LOCAL COMMUNITIES
• CONSTRUCTION
• FISHERIES

Importance of Inter-sectoral Linkages

1. Aids the development of the economy.
2. Provides social improvement.
3. Reduction of imports.
4. Improved perception of tourism industry.

Issues Affecting Tourism

• Safety and Security (Crime).
• Epidemics and health risks (HIV/AIDS).
• Rapid Technological change.
• Natural Resources.
• Risk and disaster management.
• Changing consumer tastes and preferences.
• Airlift and access.
• Political.

Strategies to Manage Tourism Issues

1. Education and Awareness Campaign.
2. Public Relations.
3. Use of Information communication technologies.
4. Implementation of sustainable tourism practices.
5. Development of risk and disaster management plans.

Tourism Linkages and Leakage

• Tourism industry depends on other sectors to generate income.
• Linkage: connection and interrelation between separate industries.
• Tourism Leakage: amount spent on importing goods/services and money that is repatriated.
• Government aims to reduce importation and increase training of locals.

Key Sectors in Tourism

1. Accommodation.
2. Food and Beverage.
3. Adventure Tourism and Recreation.
4. Transportation.
5. Events and Conferences.
6. Attractions.
7. Tourism Services.
8. Travel trade/ Intermediaries.