tourism benefits

Benefits and Challenges of Benefits and Challenges of TourismTourism

A Local, Regional and International A Local, Regional and International PerspectivePerspective

Rachel CollisRachel CollisTourism AnalystTourism Analyst

Ministry of TourismMinistry of TourismAntigua & BarbudaAntigua & Barbuda

March 2008March 2008

Tourism DefinedTourism Defined

Tourism may be defined as: • The activities of persons travelling to and

staying in places outside their usual environment for not more than one consecutive year

• Leisure travel, business travel and other purposes

• Activities within the place visited, which result in remuneration.


It is the industry of the future which embraces the values and lifestyles of future generations


• promotes the understanding and preservation of culture and the environment

• fosters co-operation between the private sector, public sector and local communities

• presents career opportunities unlike any other industry.

Tourism is the only industry which:Tourism is the only industry which:


●Enriches individuals, families, communities

●Invigorates economies

●Stimulates development

Strengths of TourismStrengths of Tourism

• An industry with good investment opportunities (hotels, restaurants,etc)

• It sustains more than 1 in 10 jobs around the world

• It stimulates innovations in travel and the milestones which the airline industry has reached (e g, space tourism)

• It promotes improvements in the accommodation sector

• It spotlights the emergence of the cruise and yachting industry as a giant in the hospitality industry

Strengths of TourismStrengths of Tourism

• IT transforms how tourism is marketed• Training of employees to deliver quality

service• Feeling of confidence, of self-assertiveness

which the industry now enjoys.

Sustainable Benefits of TourismSustainable Benefits of Tourism

● Tourism generates jobs directly through hotels, restaurants, nightclubs,

taxis, souvenir sales, arts and crafts indirectly through the supply of goods and

services needed by tourism-related businesses. • Tourism contributes to the emergence of local

entrepreneurial and management groups, especially in the areas of hotels, restaurants, nightclubs, shops, ground transport, water sport operation and entertainment.

Sustainable Benefits of TourismSustainable Benefits of Tourism

Tourism promotes improvements in

• the environment • the infrastructure • communications • the provision of utilities (clean water,, etc)

Sustainable Benefits in TourismSustainable Benefits in Tourism

• Accommodation• Adventure & Recreation• Attractions• Events & Conferences• Food & Beverages• Tourism Services• Transportation• Travel Trade• Hospitality Management• Consultants• Accountants• Linguists/Interpreters• Environmental specialists

Opportunities are created for employment in the areas of:Opportunities are created for employment in the areas of:

Tourism Contributes to Government Revenues Tourism Contributes to Government Revenues via:via:

• Direct Contributions - taxes on incomes from tourism employment and tourism businesses, and by direct levies on tourists, such as departure taxes.

• Indirect Contributions - taxes and duties levied on goods and services supplied to tourists.

Tourism Stimulates Infrastructural InvestmentTourism Stimulates Infrastructural Investment

• roads • electricity • telephone • public transport

networks • service facilities• water and sewage • systems

Tourism Stimulates Social Development in Tourism Stimulates Social Development in Local CommunitiesLocal Communities

• upgraded infrastructure• festivals and sporting events• jobs in rural communities to help stem

influx of persons into the city

Diversification of the Local EconomyDiversification of the Local Economy

Tourism also serves as a major stimulus to the development of other economic sectors, such as agriculture, handicraft, agro-industry manufacturing, banking, trade and commerce, art, culture, music and entertainment.

Brief Global Tourism OutlookBrief Global Tourism Outlook• Receipts from the

global tourism industrytotalled US$735 billionin 2006

• Economic growth was almost 5% in 2007, with the same forecast

for 2008

Brief Global Tourism OutlookBrief Global Tourism Outlook

• 808 million persons travelled abroad in 2005

• by the year 2010 more than 900 million persons would have taken at least one pleasure trip

• Tourism supports some 10% of the world’s workers.

• The relationship between tourism, climate change and poverty alleviation will be more defined.

Regional OutlookRegional Outlook• Tourism is responsible for:-

• 14.8% of the region’s GDP • 15.1% of total employment • 19.7% of total foreign exchange earnings• economic growth (estimated) of 4.1%

annually• employment growth (estimated) of 2.8%

annually

Local Outlook on TourismLocal Outlook on TourismThe tourism sector is the most important economic activity in

Antigua and Barbuda.

It represents • over 85% of total foreign exchange earnings • 48 % of export earnings • 59% of total capital investment• approx 70% of GDP.It generates • approx. 8,000 jobs (26%) directly, plus a further

3,000 jobs in related areas throughout the economy (2006).

• total visitor expenditures of approximately EC$919.8 million per year.

Local Outlook on Tourism Local Outlook on Tourism (cont)(cont)

• 262,000 stay-over tourists visited Antigua in 2007 (254,000 in 2006)

• 672,788 cruise passengers visited Antigua in 2007

• An estimated 70,000+ day visitors arrive each year from other nearby islands, mainly forbusiness, trade, or personal reasons, including some leisure trips (intra-regional tourism).

Local Outlook on Tourism Local Outlook on Tourism (cont)(cont)

• Tourism employs an estimated 40 % of the workforce

Challenges to Our TourismChallenges to Our Tourism• external competition (global and regional) • the emergence of the ‘new tourist’ • changes in consumer tastes

• revolution in information and communication technologies (ICTs)

• political drivers of change

• The influence of air transport

Challenges to Our TourismChallenges to Our Tourism• adapting to changes in the key generating

markets• pursuing what we can do best ( in terms of

niche markets) with the resources that we have

• training as a response to growth in the industry

• embracing and making optimal use of advancements in ICTs

• developing strategic alliances and partnerships with stakeholders locally, regionally and internationally

More ChallengesMore Challenges• providing a favourable and balanced

investment climate• engaging in continuous and appropriate

institutional strengthening • ensuring that our policies and actions

recognize the interconnectivity of tourism with all parts of our economy and society

• being deliberate in promoting tourism that is environmentally, socially and economically sustainable

Problems in the IndustryProblems in the Industry• increasing competition from destinations offering better value

for money (e g, Cuba and Dominican Republic in the Caribbean)

• a weak institutional framework with inadequate controls that can lead to tourism development which is both inappropriate and intrusive and can cause irreversible damage to the natural environment

• product quality and price

• service that sometimes appear indifferent

• low return on investment

• inadequate marketing

Problems in the Tourism IndustryProblems in the Tourism Industry a lack of awareness on the part of those making

decisions about tourism development of the social, economic and environmental balance to be pursued in achieving sustainable development

a lack of commitment by tourism operators and travelers to contribute to safeguarding the local environment and culture of the host destination

Failure to recognize that a critical mass is needed to compete with the big giants in the industry

More Problems in the Tourism IndustryMore Problems in the Tourism Industry “unfairly traded tourism“ whereby local communities are

unable to share in its benefits

large flows of visitors in remote or sensitive locations who can place considerable strain on local resources and supply systems.

travellers’ expectations of the goods and services which should be available can lead to these items or services being imported from outside or local supply chains being distorted to meet the demand

Changes in the destination’s cultural make-up, if poorly managed, resulting in increased crime, prostitution and other social problems.

Threats to TourismThreats to Tourism

• Terrorism• Natural disasters• Health concerns • Competition• Ecological problems from the cruise

industry• Overcrowding of destinations

Threats to Tourism (cont)Threats to Tourism (cont)

• Political will and control

• Themed concept of tourism

• Degradation of the environment

Opportunities in TourismOpportunities in Tourism

• Creation of festivals, theme parks• Diversification of the product, e g, hotel packages• Good reputation for safety and tranquillity• Capitalize on problems in other countries• Growing focus on training of hospitality staff and

tourism planners• Small states’ use of ICT’s to market at reduced

costs

The learning has just begun!

tourism benefits

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