MAKING ALL-INCLUSIVES
MORE INCLUSIVE
A Research Project
on the economic impact of
the all-inclusive hotel sector in Tobago
for
The Travel Foundation
Dr Afzal Abdool, Hibiscus Consulting
and
Benjamin Carey, Dunira Strategy
February 2004
THE ECONOMIC IMPACT OF ALL-INCLUSIVES IN TOBAGO
EXECUTIVE SUMMARY
This report explores the economic impact of the All-inclusive (AI) hotel sector on the economy of
Tobago and evaluates the extent of trade linkages that support this sector. Further, it makes
recommendations on the potential for new linkages to be established and the strategies for
strengthening existing ones. It also identifies micro-businesses, which require additional support to
facilitate their entry into the hotel supply chain and to increase the spread of benefits from this sector to
the wider stakeholder community and host environment.
In order to achieve these objectives, interviews were conducted with tour operators and an analysis of
their Tobago programmes undertaken by reference to brochure material and other collateral. A survey
of UK tour operators showed that fifteen currently feature package holidays to Tobago. Of the nearly
35,000 holidays in AI properties each year in Tobago, two thirds (23,000) are sold to British customers.
Surveys and interviews were also held with hotel managers, guests, industry businesspeople,
government officials, farmers’ organisations, local experts and other stakeholders. Results indicated
that nine AI hotels account for 33% of total room capacity and directly support 9.1% of employment on
the island. Further, British customers in these properties contribute 8.3% of the island's GDP in
accommodation costs alone. From our survey of AI guests, it was also revealed that AI tourists spend
significantly more money in the local economy than those staying in other accommodation. British
customers staying in these hotels and resorts contribute a further 3.4% of GDP simply through their
local holiday expenditure. Despite these encouraging signs, it is likely that significant proportions of
funds do not reach Tobagonians and otherwise do not remain on the island for very long. Two main
reasons for this assertion are that all payments are made abroad and while most AI hotels are owned
by Trinidadians, only one is Tobagonian-owned.
One opportunity for stemming this haemorrhage from the local economy lies in reducing imports.
Tobago, once a thriving agricultural economy, is no longer self-sufficient in food. Unfortunately, most of
the fresh produce needed by the tourism industry is imported from producers in nearby Trinidad and
from importers based there. Business links with Tobago suppliers were limited to fresh fish, lobsters
and farm eggs. The absence of six critical success factors – competitive price, consistent quality, wide
variety, reliability of supply, access to credit facilities and business acumen - were found to be
responsible for the poor performance of the local supply chain, giving Trinidad suppliers the
competitive advantage over Tobago businesses. Only a few Tobago entrepreneurs have been able to
overcome these ‘barriers’. In addressing the need to reduce leakages, improve existing linkages and
build new ones, the report findings also point to a need to develop more responsive business support
mechanisms to enhance the entrepreneurial environment in Tobago.
In light of the findings, this report recommends strengthening of the local supply industry by focusing on
agricultural linkages, business development and market orientation and capacity building initiatives.
Special emphasis is given to farmers and farmers’ organisations which have the potential to develop
the competencies demanded by the tourism sector. Additionally, the respective roles and spheres of
influence of tourists, tour operators, hotels, destination management companies, government and
community organisations are each considered as potential agents of change in initiating, influencing
and replicating desired behaviours which contribute to sustainable practices. This is evident in the
several education and awareness projects that are proposed.
In order to address the gaps identified, a number of strategies are proposed. Firstly, it is suggested that
interventions can be made by reorienting AI properties towards local suppliers. This requires a number
of developments in the local business community and in enterprise facilitation and support. Secondly,
local enterprises can take advantage of the high local spending power of AI customers by the
introduction of demand-driven initiatives. Accordingly, a number of demonstration-type projects are
suggested such as ‘Adopt a Farmers’ Group, aimed at facilitating the nexus between agriculture and
tourism, and ‘Made in Tobago’, a pilot scheme to promote locally made products directly to the tourist
market and facilitated by the AI hotels themselves. Other ventures proposed, involve training and
mentoring, technical support and multi-stakeholder engagement in the ancillary sectors. Finally, the
report identifies some existing businesses, which we believe have the potential to significantly engage
in the local hotel supply chain.
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CONTENTS
EXECUTIVE SUMMARY........................................................................................................................... i
CONTENTS .............................................................................................................................................. ii
ACKNOWLEDGEMENTS ....................................................................................................................... iv
ABBREVIATIONS & ACRONYMS .......................................................................................................... v
1.0
RESEARCH BACKGROUND ....................................................................................................... 1
1.1
PROJECT OBJECTIVES ........................................................................................................... 1
1.2
METHODOLOGY ....................................................................................................................... 1
1.2.1
RESEARCH METHODS ..................................................................................................... 1
1.2.2
SURVEY OF AI HOTELS ................................................................................................... 2
1.2.3
SURVEY OF AI GUESTS ................................................................................................... 2
2.0
TOURISM FRAMEWORK ............................................................................................................. 2
2.1
RESEARCH CONTEXT ............................................................................................................. 2
2.1.1
TOBAGO – AN ENERGY-FINANCED TOURISM ECONOMY .......................................... 2
2.1.2
GOVERNMENT POLICY .................................................................................................... 3
2.1.3
THE BUSINESS ENVIRONMENT ...................................................................................... 3
2.1.4
COMPETITION FROM TRINIDAD ..................................................................................... 3
2.1.5
STRENGTHS OF THE TOBAGO AGRICULTURE SECTOR ............................................ 4
2.2
TOURISM IN TOBAGO.............................................................................................................. 4
2.3
TOBAGO’S ALL-INCLUSIVE SECTOR ..................................................................................... 4
2.3.1
BRITISH TOUR OPERATIONS IN TOBAGO ..................................................................... 5
2.3.2
DIRECT ECONOMIC IMPACT ........................................................................................... 5
2.3.3
LEAKAGES ......................................................................................................................... 6
2.3.4
LINKAGES .......................................................................................................................... 6
2.3.5
PROGNOSIS ...................................................................................................................... 6
2.4
SELF-CATERING ...................................................................................................................... 7
2.5
OTHER ACCOMMODATION ..................................................................................................... 7
2.6
CRUISE TOURISM .................................................................................................................... 8
2.6.1
POLICY CHANGES ............................................................................................................ 8
2.6.2
ECONOMIC IMPACT ......................................................................................................... 8
2.6.3
OPPORTUNITIES .............................................................................................................. 8
3.0
THE TOURISM SUPPLY CHAIN IN TOBAGO ............................................................................ 9
3.1
THE SMALL BUSINESS SECTOR ............................................................................................ 9
3.1.1
AGRICULTURE AND AGRO-PROCESSING .................................................................... 9
3.1.2
PRESENT INITIATIVES FOR BUSINESS DEVELOPMENT ............................................. 9
3.1.3
KEY OBSTACLES TO PROGRESS .................................................................................. 9
3.2
THE SEARCH FOR SOLUTIONS ........................................................................................... 10
3.2.1
THE DEMAND FOR FRESH FOOD INPUTS .................................................................. 10
3.2.2
OXFAM’S EXPERIENCE IN ST. LUCIA ........................................................................... 10
3.2.3
FIRST FARMERS’ WHOLESALE MARKET .................................................................... 10
3.2.4
THE CREDIT GUARANTEE PILOT SCHEME ................................................................. 11
3.2.5
FARMERS’ PRODUCTION AND MARKETING DATABASE ........................................... 11
4.0
OPPORTUNITIES ....................................................................................................................... 11
4.1
WHAT TOURISTS WANT ........................................................................................................ 11
4.2
FRAMEWORK FOR RECOMMENDATIONS .......................................................................... 11
4.3
ABC OF RECOMMENDATIONS - PROJECTS WITH POTENTIAL ....................................... 12
4.3.1
PROJECTS WITH AN ECONOMIC FOCUS .................................................................... 12
4.3.2
PROJECTS WITH AN EDUCATIONAL FOCUS .............................................................. 14
4.3.3
PROJECTS WITH A TECHNICAL FOCUS ...................................................................... 15
5.0
CONCLUSION - NEXT STEPS ................................................................................................... 16
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NOTES ................................................................................................................................................... 17
APPENDICES ........................................................................................................................................ 18
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Individuals and agencies consulted ............................................................................................. 19
Accommodation capacity ............................................................................................................. 20
All-inclusive properties ................................................................................................................. 20
UK tour operators ........................................................................................................................ 21
Tourist arrivals ............................................................................................................................. 24
Cruise tourism .............................................................................................................................. 25
Questionnaire for Hotel Managers ............................................................................................... 26
Questionnaire for AI tourists ........................................................................................................ 29
Modelling the sector..................................................................................................................... 30
Demand for fresh produce ........................................................................................................... 32
Businesses in and out of the supply chain .................................................................................. 33
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ACKNOWLEDGEMENTS
The consultants would like to thank The Travel Foundation for the opportunity to research and produce
this report. We are grateful for the support and guidance received from the Foundation’s director
during the fieldwork and throughout the preparation stage, and to the Foundation’s trustees, who
reviewed an earlier version of this report. We particularly want to thank all the hotels and tourism
agencies and individuals, including farmers, businesspeople, government representatives and others
that we consulted in Tobago and who gave so generously of their time and were willing to share so
much of their views and data with us. We are also grateful for the perspectives shared by tour
operators and other tourism stakeholders in the UK. A list of individuals and agencies consulted is
included in the appendices to this report.
Finally, we would like to thank our international advisory panel of experts - David Bright and Xavier
Font in England, Michaela Pawliczek in France and Edmund Sidonie in Tobago, who contributed much
to this report through discussions with the consultants and by reviewing and improving our draft
recommendations. However any omission or error in the research or data analysis is entirely due to
Hibiscus Consulting and Dunira Strategy, which together are responsible for all the project outputs and
recommendations.
COPYRIGHT STATEMENT
The authors retain copyright in this report and due acknowledgement must always be made of the use
of any material contained therein or derived therefrom.
© Afzal Abdool and Benjamin Carey 2004.
The Travel Foundation is free to publish this report in print and electronic format.
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ABBREVIATIONS & ACRONYMS
ADB
AI
AITO
BDC
CAMID
CARDI
CARTF
CBO
CSO
DMC
ECIAF
FCCA
FTAA
FTO
GBP
GDP
GNP
HACCP
IHEI
IICA
ITOA
NGO
OGB
PATT
T&T
TOI
TTF
THA
TIDCO
TTD
TTHTA
TTHTI
UNDP
UNEP
USD
UWI
Agricultural Development Bank
All-inclusive
Association of Independent Tour Operators
Business Development Company
Caribbean Agri-business Marketing Intelligence and Development
Caribbean Agriculture Research and Development Institute
CARIFORUM Agribusiness Research and Training Fund
Community-based organisation
Central Statistical Office
Destination Management Company
Eastern Caribbean Institute of Agriculture and Farming
Florida Caribbean Cruise Association
Free Trade Area of the Americas
Federation of Tour Operators
Sterling (£)
Gross Domestic Product
Gross National Product
Hazard Analysis and Critical Control Point
International Hotels Environment Initiative
Inter-American Institute for Co-operation on Agriculture
Incoming Tour Operators Association
Non-governmental organisation
OXFAM Great Britain
Port Authority of Trinidad and Tobago
Republic of Trinidad & Tobago
UNEP Tour Operators Initiative
The Travel Foundation
Tobago House of Assembly
Tourism and Industrial Development Company of Trinidad and Tobago
Trinidad & Tobago Dollar (GBP1 = TTD10)
Trinidad and Tobago Hotel and Tourism Association
Trinidad and Tobago Hotel Training Institute
United Nations Development Programme
United Nations Environment Programme
United States Dollar (GBP1 = USD1.8)
University of the West Indies
Where the term local is used, the authors are referring to something connected to the geographic area
or population of Tobago alone and not to that of the larger Trinidad & Tobago. The term national
relates to the geographic area or population of Trinidad & Tobago; regional refers to the Caribbean
region as a whole.
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1.0
RESEARCH BACKGROUND
Since the introduction of the All-inclusive (AI) concept in the Caribbean, and in Jamaica in particular,
there has been a growing concern by industry experts and local interests alike about its impact on the
local economy. In Jamaica, the model was introduced in response to the high incidence of crimes
committed against tourists, and the consequent need to protect them from potential danger. The AI
model has several variants, ranging from the very basic to the most comprehensive. A basic AI
package purchased by a traveller would include flights, coach transfers and accommodation, including
most meals and drinks. At the other end of the spectrum, a top-of-the-range comprehensive product
might also include luxury private transfers, accommodation at a five-star resort such as Sandals, spa
treatments, sporting activities, sightseeing tours and excursions and more.
What is significant about this arrangement when compared to the non-AI (conventional) product, is that
the customer pays for the AI holiday package before leaving home. This means that little of the hard
currency (USD and GBP) will reach the destination country - sometimes only enough to settle local
expenses incurred by the AI hotel and payable in the local currency. Critics of the AI concept argue
that this amounts to a leakage of funds particularly in cases where the hotel or resort is foreign-owned
(repatriated profits). An effect of the pre-payment component of AI holidays is that AI guests are less
inclined to venture out of their host hotel or to spend on services outside of the AI package, having
already paid for much of these in advance. A similar issue also arises in the case of cruise tourism.
Quite apart from the negative impact on the local economy, it is claimed that AI’s contribute to
alienation of the host population as it effectively restricts the free movement of tourists outside the
confines of their hotel and into the local communities. In certain cases, locals may even be restricted
from entering the hotel compound. Research shows that the demand for AI holidays is growing
globally and the larger European and British tour operators are certainly keen to develop this market,
particularly in the Caribbean.
1.1
PROJECT OBJECTIVES
In pursuing its mission, The Travel Foundation (TTF) wants to have an appreciation of the structure
and character of the All-inclusive (AI) tourism sector as it presently operates in Tobago. TTF intends to
use the result of this work to inform the future direction and scope of its efforts in this area of
sustainable development.
In particular, the objectives of this project are to:
1. Gauge the economic impact of the island’s accommodation sector with special reference to AI
hotels.
2. Identify the linkages which now exist between accommodation providers as users of goods and
services and their suppliers
3. Identify any gaps or missing links that would enhance the capacity of the supply chain in
adequately meeting the needs of the accommodation sector.
4. Identify opportunities for improving the linkages or for creating new ones.
5. Make recommendations on how these linkages can be improved.
One of the Foundation's main functions "is to identify, develop and support activities that will contribute
to sustainable tourism in overseas destinations". 1 Our recommendations are therefore designed to
reflect TTF's selection criteria that projects should:



Match industry priorities
Meet community needs
Be feasible
1.2
METHODOLOGY
1.2.1
RESEARCH METHODS
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In view of the client’s need for pragmatic solutions, this research made full use of primary research
opportunities. To achieve this, the lead consultant travelled to Tobago and spent two weeks during
which he held interviews with industry stakeholders and other relevant parties including, farmers,
hoteliers, restaurateurs, government officials, NGOs, entrepreneurs and the small business
community.2
1.2.2
SURVEY OF AI HOTELS
A structured questionnaire3 was designed and used to gather information on the supply chain issues
and economic activity generated by the nine AI hotels on the island. 4 This was achieved through
interviews held with the hotels’ General Managers. Having aimed to interview staff at the seven largest
properties, we conducted detailed interviews with four of these hotels, including three of those that are
exclusively AI, and also carried out additional interviews and research with four others. Just one of the
smaller properties was unable to participate in this study. The reasons why some hotels did not agree
to detailed interviews included staff absences and major renovations requiring supervision.
Nevertheless the data collected represents more than 70% of the AI room capacity on the island.
Despite the confidential nature of some of the quantitative data requested, hoteliers were remarkably
willing to share detailed financial and other sensitive information having been given the assurance that
the data from all the respondents would be aggregated and presented in a summarised format. Such
enthusiastic participation appears to confirm their stated commitment to spread the economic benefits
of their activities to the wider community.
1.2.3
SURVEY OF AI GUESTS
A structured 2-page questionnaire5 was designed in consultation with the hotels' Guest Relations
managers. This was fully completed by 97 customers of the properties surveyed. This number
represents 11% of British AI tourist parties, which (since the vast majority are couples) is equivalent to
6% of all individual British AI tourists staying on Tobago during the two separate weeks in which the
survey was conducted. Information collected included expenditure made on local purchases,
categories of items bought and the availability of local goods and services both within and outside the
hotel.
2.0
TOURISM FRAMEWORK
2.1
RESEARCH CONTEXT
2.1.1
TOBAGO – AN ENERGY-FINANCED TOURISM ECONOMY
Tobago is part of the political union known as the Republic of Trinidad and Tobago (T&T) located at the
southern end of the Caribbean archipelago. Its richer sister island Trinidad is blessed with abundant oil
and gas reserves and consequently tourism is not a high priority on the political agenda. Tourism
accounts for less than 3% the country's total GDP, but contributes ten times this proportion to the GDP
of Tobago.
Separated from Trinidad by 35 kilometres of water, Tobago is 300 square kilometres in area and is
home to some 47,000 inhabitants. With the central seat of Government located in Port of Spain
(Capital City of Trinidad), the affairs of Tobago are locally administered by the Tobago House of
Assembly (THA) which has limited powers of governance and relies on financial subventions from the
central T&T government.
Women and youth comprise a significant proportion of employment (19,000) in an economy where
tourism is the largest employer after the state sector. It is estimated that tourism accounts for almost
5,000 direct jobs or one in every four. Agriculture and fisheries, once prolific, have been reduced in the
main to subsistence level, a consequence of a host of factors including hurricane Flora in 1963,
continuing displacement by new hotel and residential developments and the lure of tourism jobs as the
‘easier alternative’. Unemployment on the island averages 22%, twice that on the more industrious
Trinidad.
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2.1.2
GOVERNMENT POLICY
Blessed with natural attributes, friendly people and a tranquil atmosphere, Tobago has been identified
as the focus of the national tourism marketing strategy with annual tourist arrivals last year of 68,000
for the first time. Although considered an emerging destination, Tobago is headed for more intensive
exposure from this year with an unprecedented tourism budget of TTD20M (£2M) coupled with its
recent acclamation as the World’s Best Eco-Tourism Destination.6
While agriculture thrives in Trinidad, Tobago, once hailed as the bread basket of Trinidad, cannot now
meet its own needs for food despite the availability of subsidies on farming inputs such as tools and
irrigation and other farming equipment. After many failed attempts at resuscitating the agriculture
industry on Tobago, the THA is presently embarking on a number of new initiatives. In particular a
farmers’ wholesale market was launched in December 2003 and a new credit guarantee pilot scheme
for young farmers is underway.
2.1.3
THE BUSINESS ENVIRONMENT
The business culture in Tobago is distinctly different from that in Trinidad. The entrepreneurial spirit
seems to be lacking in Tobago where many young people aspire to jobs in the civil service. The work
ethic is also poor and in some instances, this has forced employers to hire Trinidadians instead of local
Tobagonians. Therefore, not only is there an import of human resources in an environment of high
employment, but there is also a net import of food on an island with a wealth of available fertile land for
cultivation. There are however many enterprising Tobagonians who have demonstrated success in
business and there is also much untapped potential besides.
Business facilitation agencies such as the Business Development Company and the Department of
Enterprise Development (THA) and the Agricultural Development Bank offer a number of services
geared toward the needs of the micro and small business sector as well as to prospective business
people.
2.1.4
COMPETITION FROM TRINIDAD
When compared to Trinidad, Tobago’s geographic size and population account for just 10% and 3.7%
respectively. This has serious implications for the allocation of resources and opportunities to achieve
economies of scale in production and marketing. Not surprisingly, Trinidad is the leader on price, value
for money and variety. Indeed it is not uncommon for Tobagonians to travel to Trinidad for shopping for
the same items sold in Tobago, and still achieve a saving, even taking account of the cost of transport.
Likewise, businesses in Tobago often prefer to purchase plant, goods and services in Trinidad or from
travelling Trinidadian salesmen rather than from local Tobagonian suppliers.
In investigating the reasons for not doing business with Tobago suppliers, in particular with farmers,
hoteliers and restaurateurs cited five key factors where local suppliers scored lower than their Trinidad
counterparts:





Price and value for money
Variety and range of products
Reliability of supply
Consistency in quality and quality control
Availability of credit facilities
Price was perhaps the most critical factor, but all hoteliers reported that, if these competitive
disadvantages could be addressed, then they would always prefer to deal directly with local suppliers
in Tobago and would support initiatives that are likely to achieve this. Although the term was not used,
hoteliers are clearly motivated by a strong sense of corporate social responsibility in their desire to
strengthen the local economic benefits of their operations insofar as any reorientation does not
undermine their commercial objectives.
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2.1.5
STRENGTHS OF THE TOBAGO AGRICULTURE SECTOR
Compared to Trinidad, local suppliers generally and the agriculture sector in particular have a number
of advantages:





2.2
Produce is of fresher quality. This is important in such cases as lettuce and other fresh salad
ingredients where presentation is crucial.
Purchasing from local farmers reduces the health & safety hazards of multiple handlers during
transportation and also minimises the length of time from harvest and delivery.
Using less pesticides and fertiliser than their Trinidadian competitors, Tobagonian farmers make
more wholesome product with a longer shelf life, which is gradually becoming more important to
the tourism sector's British customer base and could therefore become the basis of a future
marketing strategy.
Organically grown fruit and vegetables are more likely to be available from the small farmers that
make up a large part of the agriculture sector on Tobago.
Local farmers can be more flexible and responsive to the individual needs of hoteliers through
direct one-to-one relationships.
TOURISM IN TOBAGO
TIDCO lists 57 tourist accommodation properties on Tobago. These include guesthouses, villas and
hotels, providing capacity of 2,634 rooms7 and 1.9M bednights. The island therefore has the capacity
to accommodate 155,000 visitors each year, using the average duration of 12.4 nights, although actual
visitor numbers achieved last year amounted to just 68,000 8, which equates to 44% occupancy levels
across all sectors. However, since occupancy levels in AI hotels are over 70%, even allowing for some
exaggeration by hotel managers, the average occupancy level in non-AI properties cannot be more
than 35%, meaning that the AI sector, which last year hosted more than 34,000 visitors, takes the lion’s
share of the market.
We calculate that tourism directly contributes 31% of Tobago's GDP and directly supports 26% of jobs;
accommodation alone employing 20% of the working population. The indirect benefits are much
greater. Based on the data collected, we estimate that every direct job created within the
accommodation sector corresponds indirectly with a further two jobs on the island, supporting more
than 11,000 jobs in total.
AccomRooms
Room capacity
Direct jobs
modation
%
All-inclusive
880
33
1,808
Self-catering
504
19
250
Other
1,250
47
1,712
Total:
2,634
100
3,770
Source: Derived from the authors’ analysis of CSO data
Employment
%
9.5
1.3
9.0
19.8
Ratio
(staff/room)
2.0
0.5
1.4
1.4
Tobago is highly dependent on the outbound British travel and tourism industry. Whereas 14% of
tourism arrivals across the whole of Trinidad & Tobago come from the UK, there is a large imbalance
between the two islands with twice as many British tourists visiting Tobago as visit Trinidad. Statistics
show that (excluding domestic inter-island tourism) 63% of tourists to Tobago come from the UK,
compared to just 7% of tourists visiting Trinidad.
2.3
TOBAGO’S ALL-INCLUSIVE SECTOR
This sector is demand driven and is the fastest growing sector in Tobago. All the hotels that offer AI
holidays were originally conventional hotels but subsequently converted in response to demand from
tour operators' customers.
Of the eighteen hotels on the island, there are now nine that offer All-inclusive accommodation9, all
situated in the more developed Southwest of the island. Five are exclusively AI 10, whilst four remain
mixed, offering an AI option to guests, although at least one of these will convert to an entirely AI basis
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by 2005. In terms of volume, these nine hotels represent 33% (880 rooms) of the island's total
capacity (2634), although our research indicates that only 79% of this volume is currently being
occupied on an AI basis, representing 26% of the island's total capacity.
2.3.1
BRITISH TOUR OPERATIONS IN TOBAGO
A survey of UK tour operators showed that fifteen companies 11 currently feature a programme of airinclusive package holidays to Tobago. Of the nine AITO members, only four offer AI options to their
customers, but it might be significant that none of the four AITO companies to have achieved 2* or 3*
Responsible Tourism status offers AI holidays in Tobago at all. All seven FTO companies offer AI
properties and only three offer non-AI properties as an alternative. Whilst the majority of AITO
companies include accommodation away from the Southwest, only one FTO company includes
properties in the more deprived Northeast.
Of the nearly 35,000 holidays in AI properties each year in Tobago, 23,000 (66%) are sold to British
customers. Although some hotels do market themselves direct to British customers, the vast majority
of sales are made through tour operator air-inclusive packages. This illustrates the size of opportunity
for British tour operators to influence changes that will contribute to more sustainable tourism in
Tobago and the spreading of benefits - economic, environmental, social - to the wider local stakeholder
community.
2.3.2
DIRECT ECONOMIC IMPACT
Analysis of data provided by hotels and their customers and from official sources gives the following
findings:

Holiday duration - The average stay of 13.4 nights reported by the properties interviewed is slightly
higher than the 12.4 recorded by the CSO and confirms that virtually all AI accommodation is sold
as part of a "2 week package".

Seasonality - 78% occupancy is achieved in AI accommodation during the high season, but this
falls to 68% during the low season.

Staffing levels - AI hotels directly employ two staff for each of their rooms. Between them, the nine
AI properties directly employ just over 1,800 staff in high season and just under 1,700 in low
season, providing an average staff per guest ratio of 1.4 and 1.6 in high and low season
respectively. The remarkable consistency across the seasons reflects the decision of some of the
larger hotels to "not shed staff" and to retain the majority of them on permanent contracts
throughout the year "because [it is] hard to retain good staff". 60% of all staff in AI properties are
on permanent contracts. Given that the working population in Tobago is 19,000, this means that AI
properties on Tobago are directly responsible for 9.1% of employment.

Accommodation costs - The average contract rate for AI accommodation is £39 PPPN. Multiplying
this by the average duration gives an average contribution of £521 simply for the accommodation
element of each visitor's holiday. This generates a total contribution of £12.0M by British AI
customers on accommodation alone, which is significant, representing at least 8.3% of the island's
GDP12. Including non-UK customers, accommodation in AI properties contributes £18.2M or
12.6% of GDP, but this in no way corresponds to GNP, since the vast majority of AI capacity is not
locally owned.

Holiday spending - The average individual local spend reported by British AI tourists staying in AI
properties is £16 per day or £215 per holiday, which amounts to £5.0M or 3.4% of GDP. This
includes excursions (79% of respondents), car hire (52%), shopping (47%) and eating out (39%),
all providing significant opportunities for local enterprise and benefits.
This analysis confirms the phenomenal importance of the AI sector to the Tobago economy in terms of
employment and value, but it also indicates a number of areas, in which there may be opportunities for
local tourism stakeholders to grow and expand these benefits.
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 Despite growth in demand, the sector still includes spare capacity, particularly in the low season,
and this provides opportunities for growth in supply within existing capacity, although additional
unrestricted growth in supply could undermine the economic value of the sector.
 The size of the sector demonstrates that even a small reorientation towards local suppliers would
bring benefits to both the AI sector and the island economy as a whole, but this requires some
structural adjustment by suppliers to address the competitive disadvantages mentioned above.
 The local spending power of AI tourists should not be underestimated and provides tremendous
opportunities to develop enterprises for the production and delivery of high margin and/or high
demand local goods and services for the benefit of tourists.
Apart from additional employment opportunities, these could also support growth in the local production
and delivery of goods and services for the benefit of hosts.
2.3.3
LEAKAGES
The fact that so few AI properties are locally owned13 means that many potential economic benefits
that could reasonably have been expected to accrue as a result of the high proportion of GDP that the
AI sector supports means that many will not benefit the host community at all. In fact, many of the
potential benefits leak out through ownership dividends and the purchase of goods, plant and services
outside Tobago.
In order to gauge other economic local impacts of AI hotels, we surveyed a sample of restaurants
located in the vicinity of AI resorts. We found that speciality restaurants offering high quality menus
and distinctive service remained largely unaffected by the conversion of local hotels to an AI basis.
They were also more likely than other restaurants to do business with AI guests from the more
exclusive resorts, such as Hilton and Coco Reef, suggesting that these customers are not pricesensitive. We found that it was the restaurants at the lower end of the market, which could ill afford to,
that had suffered most from conversions.
2.3.4
LINKAGES
It is clear that linkages with local suppliers are poorly developed and that there is huge potential for
extending these links. A most encouraging finding was that all hotel managers expressed keen interest
in working towards increasing their levels of local inputs and in striking new alliances with suppliers in
their local community. Virtually all AI hoteliers expressed strong willingness to purchase their goods
locally if prices were competitive with Trinidad. Presently, Grafton Beach Hotel and Le Gran Courland
Spa Resort (partner hotels) have developed links with a few local suppliers to deliver a variety of
services to their guests. The hotel takes a commission on tours sold and offers discounts on dinners at
selected restaurants when certain tours are purchased. Additionally, they host a craft market on
property once weekly showcasing the work of four local artisans who also have the opportunity to sell
their wares. At any one time up to fourteen local entertainers are employed at these hotels.
2.3.5
PROGNOSIS
Arising out of the interviews with hotel executives, it became evident that the industry in Tobago is
headed for unprecedented growth in AI resorts. The new Hilton Tobago currently sells 60% of its
capacity on an AI basis, but is working toward full conversion to AI by 2005. Coco Reef Resort & Spa,
Le Grand Courland Spa Resort, Grafton Beach Hotel, Inn on the Bay and Rex Turtle Beach have
already completed their conversion and others are poised to follow. In the absence of Government
intervention by way of policy directives, it seems that this trend is certain to continue at a rapid pace. In
view of this, the socioeconomic implications need to be studied and addressed with urgency. Whilst
the current AI capacity brings tremendous benefits, unchecked further growth without appropriate
infrastructural developments and the reorientation and growth of local support sectors could lead to
serious social, economic and environmental problems.
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2.4
SELF-CATERING
This sector includes self-catering apartments and private villas with no services (apart perhaps from
cleaning and utility charges) included in the rental price. This is a small sector, generally supporting
low value jobs, and of limited interest to larger tour operators.
Self-catering apartments account for nearly 90% of the official capacity in this sector, comprising some
450 rooms in small properties of between ten and thirty apartments each. Local revenues generated
by these businesses on a per room basis is significantly less than in the serviced accommodation
sector because the room rates are typically lower (catering mainly to the regional market), there are
less revenue-generating activities on site and clientele are typically budget-conscious. From our
discussions with apartment hotel managers and restaurateurs, it was revealed that most clients
prepare their own meals and those who do not, are more than likely to dine at the roadside cafes and
bars. In fact, the primary motivation for guests choosing to stay in self-catering accommodation is to
avoid having to spend “inordinate sums of money” on prepared meals. The result is that they instead
purchase food and other items from the local grocery, which in Tobago will generally be small and
locally owned.
The villas sector primarily consists of privately owned homes, many of which are second homes or
retirement homes and are often owned by foreigners and returned residents. Without any state
intervention this sector has mushroomed over the last ten years. A three-bedroom villa would typically
fetch between USD900 andUSD2000 per week and typically employs a maid, gardener and a cook
with other maintenance services contracted to individuals or small companies. It is estimated that villa
capacity is in the region of 150-200 rooms, making a total contribution of 600 direct jobs, although this
may be an overestimate as some villas often share the same staff. We believe that as many as 800
jobs are created indirectly by this sub-sector, mainly in the maintenance field, but there is little
employment data available. Villa rental alone generates approximately £3.2M per year or 2.2% of
GDP. However only a very small percentage (probably no more than 25%) of these villas are
registered with the Department of Tourism and in the absence of data, our capacity figure is therefore
likely to be an underestimate. An important result of non-registration is that revenue earned from these
operations is underreported and many taxes are almost certainly not paid.
2.5
OTHER ACCOMMODATION
Excluding AI properties, serviced accommodation (hotels and small guesthouses that provide meals)
account for 47% (1250 rooms) of the island’s official accommodation capacity. Since there is no official
disaggregated data for holiday spending by AI and non-AI tourists, it is not possible to calculate the
true economic contribution of this sector. Nevertheless, since this sector provides slightly more than
1,700 direct jobs, which represents a significantly lower ratio than in AI properties, some public
agencies consider this a compelling economic argument for accelerating AI conversions.
However the higher occupancy levels and levels of foreign ownership in the AI sector, combined with
the current rate of conversion, indicate that the non-AI sector is far less attractive to developers and
investors as a business proposition. According to official data, the average daily spend per tourist in
2001 was USD67 - including accommodation. Even allowing for compound inflation of 10.4% over the
past three years (CBTT), this equates to just GBP41. This means that the half of tourists coming to
Tobago and staying in non-AI accommodation are individually spending 25% less than an AI tourist
contributes to the local economy on a daily basis, although - because a higher proportion of non-AI
accommodation is locally owned, the local benefits could be greater.
However, since AI customers stay 1.5 days longer (13.4 vs. 11.9) than others, non-AI tourists
collectively spend 37% less than AI tourists. The implication is that the opportunity for the AI sector is
potentially even greater - although obviously this assumes that the benefits are spread equitably and
that any negative impacts of such growth are appropriately mitigated!
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2.6
CRUISE TOURISM
This is essentially an AI product and as such, its impacts and the trade linkages it generates are akin to
the AI resort experience. Historically, cruise tourism has not been important to Tobago. This has been
so even after the construction of deep-water harbour facilities at Scarborough during the 1990s. Annual
cruise passenger arrivals have fluctuated between 10,000 and 20,000 with the major beneficiaries
being the Port Authority (mainly through Head Taxes and Port charges), local ground operators and
taxi drivers. Although available, the port's bunkering facilities (supply to ships of fresh water and marine
fuel) are seldom used and when water is purchased, it incurs a net loss as the marketing and
distribution costs far exceed the revenue.
Due to T&T’s competitive advantage in oil and energy, fuel prices are attractive but have not been
aggressively marketed to the cruise lines. There are no organised chandler services on the island and
any requests for provisions are usually co-ordinated by the ship’s local agent. Historically, demand has
been negligible, ad hoc and limited to fresh local perishable produce such as lettuce and other leafy
vegetables. Experience has shown that ships are more likely to request provisions if they are en route
to South America. The cruise supply chain typically operates through traditional links with large
suppliers located at home ports in Miami, Florida and San Juan, Puerto Rico, from which top up
supplies are air freighted to ports on the cruise itinerary.
2.6.1
POLICY CHANGES
The THA has recently taken a policy decision to boost cruise tourism by investing in an extension to
the pier and a shift of marketing focus from small and medium sized vessels (700-1000 passengers) to
the large ocean liners (2000+ passengers). While this change is intended to increase benefits, it is
likely to have a severe impact on the local environment and put the limited local infrastructure,
including ground transport, under immense strain. Already, in the absence of an adequate public
transport system, when two ships call on the same day, locals find it difficult to get route taxis (shared
taxis), the main form of local transportation.
2.6.2
ECONOMIC IMPACT
Cruise tourism has not made any significant impact on the local economy of Tobago. At USD5 per
passenger (Head Tax) plus a surcharge of USD0.30 per passenger on an organised tour, the Port
Authority of Trinidad and Tobago (PATT) reports that each year it collects less than £50,000. Historical
records show that on average only 30% of passengers purchase organised tours with a further 20%
hiring taxis. Tour prices range between USD20 to USD50, averaging £19. This means that, with an
average annual volume of 14,924 passengers 14 and after deducting the PATT levy, only £118,000 is
spent by cruise passengers on organised tours and taxis, bringing very little benefit to the local
economy. Craft sellers, local entertainers and restaurants receive little or no benefit, unless the tours
are specifically structured to include them.
2.6.3
OPPORTUNITIES
There is no doubt that there is scope for improving economic activity in the local supply chain for cruise
operators, but neither local stakeholders nor - since the parting of Airtours and Carnival at the end of
the 1990s - the British travel industry have little real influence on this sector. Any intervention must
take account of the reality that the principal stakeholders are large American companies that own,
market and operate these cruises, and whose interests are often vertically integrated with supplier
companies in the metropolis. Previous attempts at the regional level to negotiate terms and conditions
with the Florida Caribbean Cruise Association (FCCA) have achieved little or no success.
In view of the THA’s decision to promote cruise tourism more aggressively, greater attention needs to
be given to the impacts that this change is likely to have on the physical and social environment and
the net cost of investing in this area of tourism. Certainly ground operators could be more innovative in
the design of their tour packages, incorporating more aspects of local culture and new opportunities for
economic activity. However, compared to other tourism sectors in Tobago, a cost-benefit analysis of
historic investment suggests that the cruise sector should not be treated as a high priority. There also
do not appear to be viable opportunities for developing significant trade linkages with local agriculture.
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3.0
THE TOURISM SUPPLY CHAIN IN TOBAGO
3.1
THE SMALL BUSINESS SECTOR
Tobago’s economy is primarily made up of hotel and tourism businesses, together with ancillary
services, including restaurants, transport and retail and wholesale distribution. However there is a wide
range of small businesses, many of which are family owned and managed and only a few of which
export - albeit generally on a very small scale. These include garment construction, furniture making,
baking, food processing, apiculture, farming and the production of a variety of handicrafts.
3.1.1
AGRICULTURE AND AGRO-PROCESSING
While the hotel and restaurant sector represents a ready market for local agricultural produce and
locally processed products, only a few entrepreneurs are presently engaged in doing business with the
tourism industry and even less are servicing the AI sector. Limited supplies of fresh fruit and
vegetables, fish, lobster and farm eggs form the bulk of locally sourced inputs 15. All poultry and most
pork come from Trinidad farms while all the industry’s requirements for beef and mutton are imports
from America and New Zealand respectively. In the case of mutton, it is known that Tobago boasts a
thriving sheep farming industry, but this only has a ready market in Trinidad (for local consumption).
Research conducted with restaurant proprietors and hotel chefs indicates that due to the traditional
methods (open grazing and roaming) employed in livestock (cattle, goat and sheep) farming on
Tobago, the quality of the meat and associated products falls below the international standard
expected by the tourism market. In Barbados with support from IICA, they are developing a programme
around Black Belly Sheep (high quality meat) with one large resort.
Taste of Tobago is a local brand of fruit preserves, jams and jellies, which has recently had the
distinction of winning a European award for quality. Similarly, King Solomon’s and other brands of
family run apiaries have achieved acclaim at the UK Honey Show. These lines of products possess
huge potential as condiments for the restaurant dining table as well as ideal souvenir items for the
tourist market.
3.1.2
PRESENT INITIATIVES FOR BUSINESS DEVELOPMENT
Business people have access to market research, training, soft loans and loan guarantee facilities
offered by the Business Development Company and the Agricultural Development Bank (ADB). The
Department of Enterprise Development (THA) also administers an Enterprise Assistance Fund for new
entrants. But, in spite of promotional efforts at seminars and local trade events, these organisations
report that uptake is relatively poor and, even where new businesses are launched, the failure rate is
high.
3.1.3
KEY OBSTACLES TO PROGRESS
At the macro level, the Business Development Company has identified six key areas that need to be
addressed:






Seasonality of production
Economies of scale
Training needs and technical know-how
Market intelligence
Low awareness of financial products
Food production regulations
These can all be addressed through a combination of facilitation by local agencies and the
development of a more collective and co-operative approach by local businesses.
Seasonality of production: This can be addressed by assisting farmers in rotating their crops and by
providing facilities for preservation and storage of surplus fruit and vegetables during the season, in
preparation for out-of-season processing.
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Economies of scale: Raw materials are often sourced in uneconomically small quantities. This
reflects the failure of small operators (farmers, agro-processors, etc) to achieve economies of scale by
working collectively to purchase inputs in more economic quantities without abdicating comparative
advantages. An example cited was the packaging of fruit preserves for the tourist market where
suitable bottles were being sourced from England at significant cost, so limiting the volume that could
be purchased. In such cases, it would be advisable for producers to pool their resources together and
purchase in bulk. This could be easily achieved if for example they were to establish themselves in an
appropriate form of co-operative or association. In the case of farmers, the Marketing Department of
the THA has already agreed to provide free transport for bulk purchases made in Trinidad, but there is
scope to provide this assistance to other initiatives that local businesses identify as priority
opportunities.
Training needs: There is currently a lack of management and enterprise training capacity to address
skills shortages and this is compounded by poor technical know-how in production methods and
marketing skills. This can be addressed with training, which must be practical and flexible enough to
meet the unique needs and competencies of each organisation or individual.
Market Intelligence: In the export industry, this is critical. With regard to the hotel industry, farmers
and other suppliers need information on the quantity, quality, variety and usage of goods in demand in
order to plan production, harvesting and distribution schedules. This synchronisation of the supply and
demand parameters needs to be responsive to the dynamics of the tourism industry on a year-round
basis.
Low awareness of financial products: Many businesses are unaware of funding sources available.
For example, CARTF is an EU-funded programme that provides funding for research and training to
facilitate access to up-to-date market information for agribusinesses in the Caribbean. With a deadline
of March 2004, only a few Tobago entrepreneurs have so far applied for assistance under this scheme.
Food production regulations: Although tour operators are increasingly required to show that their
suppliers adopt more stringent health and safety standards (including those of their suppliers'
suppliers), a lot of local production fails to satisfy the international standard, Hazard Analysis and
Critical Control Point (HACCP). This requirement is likely to become mandatory in the future for all
suppliers regardless of size. This represents a significant barrier to entry, because the costs
associated with adopting HACCP for a micro business could be prohibitive and, without some
intervention, could lead to many small suppliers being excluded from the tourism supply chain.
We surveyed a number of existing suppliers and local enterprises, many of which illustrate some of the
problems described16.
3.2
THE SEARCH FOR SOLUTIONS
3.2.1 THE DEMAND FOR FRESH FOOD INPUTS
In October 1998, the Marketing Information Unit of the THA conducted a hospitality industry survey to
determine the extent of fresh food use and the sources of supply. This was done in order to gauge the
gap between demand and supply and to examine the potential for farmers to overcome the challenges
presented by the competition primarily from Trinidad suppliers. It also identified a range of fresh
produce items that offered opportunities for growth in local production capacity. 17
3.2.2 OXFAM’S EXPERIENCE IN ST. LUCIA
In February 2003, Oxfam (UK) conducted a feasibility study on the potential for building linkages
between tourism and agriculture on the island of St. Lucia. The study identified obstacles to local
participation by the farming community and suggested a number of initiatives to build local capacity in
production as well as in trade.
3.2.3 FIRST FARMERS’ WHOLESALE MARKET
In December 2003, the Agriculture Department (THA) and three local farmers’ organisations launched
a weekly wholesale farmers’ market to help stimulate production and develop centralised distribution
facilities through a clearing-house system. The impact of this new measure is still being assessed.
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3.2.4 THE CREDIT GUARANTEE PILOT SCHEME
The Agriculture Department and the ADB have come together to support a group of seventeen young
farmers by providing technical and financial resources. The scheme aims to address the need of
farmers to extend credit facilities to their customers. This programme has just been launched and it is
therefore too early to evaluate its impact.
3.2.5 FARMERS’ PRODUCTION AND MARKETING DATABASE
The Marketing Department has proposed the development of an electronic database to manage
production and supply of farm produce on an island-wide scale.
4.0
OPPORTUNITIES
4.1
WHAT TOURISTS WANT
To be sustainable, every project must address the needs of all stakeholders. To be successful, any
initiative in tourism must ultimately also respond to customer demand. We have found that the majority
of tourists staying in AI properties on Tobago are customers of British tour operators. This means that
their continuing satisfaction will be an important consideration when assessing projects for prioritisation
and implementation.
Our survey of AI guests reported above found that 90% of customers were satisfied with the choice of
local food available to them in their hotels. However, we were unable to ascertain to what extent they
were encouraged by staff to try these foods or to what extent they actually sampled local dishes.
Research elsewhere has shown that food is one of the most important elements in the AI package and
hotel managers reported a high incidence of repeat business (indicating loyalty as a result of high
levels of satisfaction). Therefore opportunities to spread benefits to the wider stakeholder community
must build on the existing product framework, particularly the food element, rather than trying to
introduce any new elements that have not been tested locally.
Opportunities therefore lie in two key areas:
 Reorientation by AI properties towards local suppliers, but this requires a number of
developments in the local business community and in enterprise facilitation and support.
 Demand-driven initiatives by local enterprises to take advantage of the high local spending
power of AI customers.
4.2
FRAMEWORK FOR RECOMMENDATIONS
When developing our recommendations within the tourism supply chain model adopted 18, we have
taken account of four key questions:




Which existing businesses and local enterprises have capacity for sustainable growth?
What structural change, support or training is needed for them to achieve growth?
Which products and services required by AI properties could be supplied locally?
What local products and services do AI customers want?
In arriving at our recommendations, we have considered opportunities for all stakeholders to contribute:
 What can customers do to achieve change, particularly in their selection of local goods and
services?
 What can properties do to achieve change, whether influencing their guests or selecting their
suppliers?
 What can local agents do to achieve change, particularly in the design and development of
excursions?
 What can tour operators do to promote change, whether influencing their suppliers or their
customers?
 What can government and other local public/private sector agencies do to facilitate change?
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In some cases stakeholders can influence others and in others they can achieve change directly
through their own actions. Tour operators for instance can use their brochures as a medium to
encourage AI customers to explore food options in restaurants beyond the immediate holiday
environment of their AI resort. They can also work with their suppliers (agents and hoteliers) to
examine opportunities to promote local crafts and entertainment initiatives that can enhance their own
customers' holiday experience. Government and other agencies can facilitate change by implementing
practical initiatives that will develop a demand-driven enterprise culture within the local business
community, including agriculture.
Partnership for progress: It is important to consider the context in which the following
recommendations are being made. At the outset, there needs to be an agreement in principle, for
targeted stakeholders to co-operate in the implementation of projects in which the Travel Foundation
wishes to participate.
Capacity issues: It is also important to recognise that local industry generally and the enterprise
community in particular is undeveloped on this island and that capacity will therefore have to be
developed over a period of time. Consequently, some results may not be immediately visible in the
short term, whilst institutional strengthening measures are being put in place.
Infrastructure: Although physical infrastructure on the island is fairly well developed, the business
infrastructure (culture and enterprise) requires significant development. It is anticipated that this
situation will improve with every new and successful entrepreneur that emerges.
Incremental approach: In order to develop and inculcate sustainable practices in tourism, the people
of Tobago must first practice sustainable habits in the way they live on a day to day basis. For this
reason, each project implemented can be considered to contribute incrementally to achieving the goal
of sustainable development through tourism.
Demonstration project: In light of the limited resources that may be available for implementing
projects in Tobago, it is recommended that TTF identifies a few projects that can graphically
demonstrate the organisation’s raison d’être "Caring for the places we love to visit". Indeed one wellconceived and properly executed project will be an enduring testimony of the Foundation’s commitment
to its cause.
4.3
ABC OF RECOMMENDATIONS - PROJECTS WITH POTENTIAL
Each of the projects that we recommend as having potential falls into one or more of the following
categories.



Agricultural linkages
Business development and market orientation
Capacity building
We have not suggested priorities, as we believe that this requires further consultation with the local
stakeholder community through the local forum (Tobago Steering Committee) that TTF has
established.
These projects are indicative. Although our discussions have met with considerable enthusiasm from
all stakeholders, the successful implementation of any project will rely on it being planned in close
consultation with all relevant stakeholders. Principal stakeholders are identified below.
4.3.1
PROJECTS WITH AN ECONOMIC FOCUS
Facilitate Business
Stakeholders: BDC / Enterprise Development THA
Those who can Teach – a mentoring project for budding businesses
Focus on capacity building in relation to business skills. Supplement this with a mentoring scheme to
coach entrepreneurs in hands-on approaches to planning and managing their own business activities
and in understanding the business environment. It is critical that individuals start seeing their activity as
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a business and not merely as a hobby. Business development professionals in Tobago indicated that
this shift in thinking continues to be a huge challenge for many people involved in small and micro
businesses.
Stimulate Economic Activity
Stakeholders: Division of Culture and Community Development / TTHTA / BDC / Tobago Art Society
Made in Tobago - Local Art
Arrange to have various hotels host a cultural evening on a rotating basis offering local artists the
chance to show their work. These exhibitions of local art could be extended beyond paintings and
sculpture to include fashion shows to promote the work of local designers.
Stakeholders: Tobago Farmers Association / TTHTA / TTHTI / Local Cuisine Expert
Made in Tobago – Local Cuisine
In a similar fashion, hotels can be encouraged to promote local foods to their guests by inviting them to
dine ‘Tobago style’. A local culinary expert has already been identified to develop recipes which would
utilise ingredients supplied by the Farmers Associations (ground provisions, vegetables and fruit),
whilst the House of Angostura has expressed an interest in participating in the programme. The project
aims to promote local food by presenting it in appealing ways while stimulating hotel demand for fresh
produce such as dasheen, cassava, eddoe and breadfruit.
Stakeholders: BDC / TIDCO / Fashion Expert
Made in Tobago - Local Labels
Continuing in the same cultural theme, a selection of locally made products of high quality may be
displayed for sale including locally produced music, condiments, crafts and clothing. Featuring items
made in Tobago, such an initiative could be promoted by both tour operators and hotels to their
customers.
These events can take place either independently or combined in a single evening’s activities. All three
cultural ventures can be promoted through tourist brochures, local resort representatives, the hotel
managers’ welcome cocktail party or other media such as in-flight videos.
Create new businesses
Stakeholders: Chamber of Commerce / BDC
Business opportunities exist for private enterprise to provide facilities for packaging, including
vacuum packaging and labelling of produce. Additionally, there is a need for a central chilling facility to
retain freshness of produce and prolong shelf life. These opportunities could be developed by the
proposed marketing company. Alternatively, farmers’ associations may qualify for grants to establish
these types of facilities but may need to work with local businesses to manage and operate the
enterprises.
Stakeholders: Chamber of Commerce / BDC / TTHTA
A local opportunity exists for mobile greengrocer services to satisfy demand for weekly and top-up
supplies of fresh produce to some hotels and most restaurants, which prefer to have the goods
delivered to their doorstep. Such an entrepreneur would routinely source his supplies from the farmers’
wholesale market, or from the proposed marketing company established to deal with grading,
packaging, and distribution. Alternatively, trade in fresh produce with the hotel and restaurant sector
may be handled by establishing a joint venture between farmers groups and a distribution company.
Stakeholders: Chamber of Commerce / BDC / Enterprise Development Department
Other opportunities exist (particularly for women) to offer services such as hair braiding and
manicure and pedicure treatments, although particular attention would need to be given to training in
health and safety standards. It is not recommended that these services be allowed to operate on the
beach. However, these services could be offered to those hotels that do not have spa facilities and on
a callout basis. Further, based on the results of the AI customer survey19, a whole host of micro and
small business opportunities (including cottage industry) can be developed around the range of
products and services which AI customers are likely to buy. These include jewellery, paintings, dutyfree alcohol, carvings, T-shirts and leather craft. Stakeholder organisations should take steps to
promote these opportunities and to provide appropriate training and other support for interested
individuals.
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4.3.2
PROJECTS WITH AN EDUCATIONAL FOCUS
Build capacity in farmers’ organisations
The farmers’ associations’ priority needs are in business management and training and more flexible
access to credit for working capital and irrigation facilities. The fisherfolk association’s priority needs
are in business management training, boat repair facilities and engine repairs, and more flexible
access to credit. There is also a need to monitor the performance of the farmers’ wholesale market
and to work with the farmers’ organisations to provide the necessary support to make it sustainable.
Develop linkages with farmers’ groups
Stakeholders: Farmers Associations / TTHTA
Adopt A Farmers’ Group
Establish contracts between farmers and hotels. As in the case of Sandals (the renowned chain of AI
resorts), in adopting the farmers’ association, the hotel commits to purchasing certain quotas of fresh
produce (e.g. lettuces) of certain quality and for supporting the farmers in some way, for example by
providing seeds. The farmers, if they anticipate that they are unable to fulfil their commitment, are
obliged to give two weeks advance notice to the hotel.
Educate farmers
Stakeholders: Farmers Associations / Division of Agriculture THA
Farmer education to assist farmers in such things as the pricing of inputs, the mechanics of production,
grading and post harvest handling techniques.
Support farmers in the field
Stakeholders: TTHTA / Farmers Associations / TTF
TTF may wish to consider retaining a Field Officer to work exclusively and dedicatedly with a core
group of hotel-contracted farmers to provide practical support to farmers on a one-to-one basis and on
a day-to-day basis to deal with production issues. This individual can also serve as an integrator,
working with farmers and hoteliers with a view to building trade relations and the planning,
management and synchronisation of demand and supply flows.
Alternatively, an AI hotel may retain a purchasing and extension officer who is agro-focused but also
able to work with other organisations. The impact of Sandals in St. Lucia employing a local purchasing
/ extension officer - Eustace Vitalis, has been impressive. His work has helped the development of
farmers groups. This in turn has helped both parties - reduced Sandals’ costs of managing multiple
trading relationships and built the strength of this group to begin trade in other sectors.
Hotel Incentive Programme
Stakeholders: TTHTA, THA, Ministry of Agriculture
The relevant Ministry of Government with the support of the THA, should consider offering a regime of
incentives to AI hotels which are committed to supporting local suppliers. This would entail a change in
policy, perhaps, amongst other measures, making local purchases tax-deductible. A potential partner in
this pro-poor initiative is Oxfam Great Britain. A similar project is being pursued in Barbados by OGB.
Contracting for local value added
Stakeholders: TOI, IHEI
At the macro level, the private sector should lead by formulating policies that would encourage Tour
Operators to consider entering into negotiations with their hotel suppliers to deal with such issues as
hiring of local labour and purchasing of goods and services from local suppliers. While these new
‘demands’ may appear onerous at first, they would contribute toward fair and ethical standards in the
industry, and redound to the benefit of the destination communities in the long term. This project and
the previous one (Hotel Incentive Programme) are complementary, representing a two-pronged
approach from both the demand and the supply sides of the industry.
Hotel purchasing
The opportunity exists for an AI hotel to contribute to community development by purchasing products
such as food and personal hygiene products e.g. soaps from local micro-businesses. Information on
business opportunities for communities is available from IICA (Inter-American Institute for Co-operation
on Agriculture). Although a business venture to the hotel, this initiative indicates their level of Corporate
Social Responsibility.
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Educate taxi drivers
Stakeholders: Taxi Associations, Tourism Department / ITOA.
Support the training of taxi drivers by providing information and tools on the market perspective (what
British visitors want and expect) as well as feedback on visitor perceptions of our taxi services. This
component (customer needs) has not been given adequate attention in training programmes and is a
crucial omission in light of the fact that taxi drivers can be important local ambassadors for the
destination.
Encourage environmental awareness
Stakeholders: Environment Tobago (ET) / TTHTA
Recycling projects such as composting of kitchen waste for organic fertiliser, glass and paper recycling
and separation of household waste. Encourage organic kitchen gardening at home. Use the local
media and competitions to stimulate interest and build awareness particularly among school children
and young people.
Make visitors aware
Stakeholders: ITOA / BDC
Find creative and interesting ways to promote local goods and services through tour operator
representatives during weekly briefings conducted for new arrivals. Include environmental awareness
tips and invite contributions to certain local charities that make a genuine difference in the lives of local
residents. Make visitors aware of our local conditions e.g. water shortages in the dry season, lack of
adequate infrastructure, and such little known facts like premium quality and organically grown
vegetables and fruits may have a less-than-perfect appearance, due to climatic conditions, no
pesticides and lack of ‘dressing’.
4.3.3
PROJECTS WITH A TECHNICAL FOCUS
Establish a market information system and a monthly farmer/ hotelier exchange forum
Stakeholders: The Marketing Department THA / Field Officer / Farmers Associations / TTHTA
To complement the proposed Field Officer’s work, this would include a database of all farmers’ details
such as crops under cultivation, when planted, expected harvest dates, expected yields, grade
(quality), etc. This would be a valuable tool to aid in planning as well as marketing. Having developed
the appropriate software, CAMID may be able to provide some resources to establish such a system.
The establishment of a forum would present a unique opportunity for farmers and hoteliers to meet and
exchange viewpoints, build business relationships and even resolve issues.
Encourage innovation in tour design
Stakeholders: Destination Management Companies (DMC) / Incoming Tour Operators Association
(ITOA)
Encourage more innovation in the design of tours to include more aspects of local heritage and culture,
whilst at the same time strengthening community-based organisations' capacity to participate in this
venture. Tours could include for example, visits to local agricultural businesses and farms with
interpretations provided by local tour guides explaining the special attributes of Tobago farm produce.
Products such as herbs, etc. could be sold to tourists immediately. A successful case example is the
St. Lucia Heritage Tourism project, which has actually developed new tours that AIs have included as
they are comfortable that they meet their standards. These tours are community-owned.
Assist tour guides
Stakeholders: Tour Guide Association, Incoming Tour Operators Association, Hotel and Tourism
Association, Tourism Department.
Some hotels are known to use staff members and others as tour guides instead of hiring trained tour
guides from the Tour Guide Association. Such practices frustrate all attempts to develop healthy
relations with the local community. Assistance is therefore needed to:
 Develop and offer training workshops in foreign language skills
 Produce a brochure listing certified tour guides and encouraging tourists to use their services
 Encourage hotels to display these lists of certified guides at reception
 Encourage tour operator representatives to provide this information to guests at briefings
 Develop a forum for tour guides and hotel staff to meet
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Afzal Abdool & Benjamin Carey


Design, develop a website for the Tour Guide Association and provide training for ongoing
maintenance
Develop a reward system to motivate and encourage excellence in service delivery
Promote local handicraft
Stakeholders: Tobago Handicraft Association / Division of Community Development and Culture THA /
BDC / ITOA
The Tobago Handicraft Association has twelve active members. Together they produce tie-dyed, batik
and hand painted fabrics, basketry and other crafts. Encourage taxi drivers and DMCs to include the
craft centre at Mt. Irvine on their tour itinerary as far as possible. Assist the association in sourcing bulk
supplies of Sea Island cotton (not available locally) and cold water dyes at more competitive prices.
Facilitate their participation at local trade fairs and advertise in the local tourist publications. Teach
them how to display products more attractively and provide training workshops for new entrants.
Develop local entertainment
Stakeholders: UNDP / BDC / TIDCO
Support the present planning and organisational efforts of stakeholders in assisting the local
entertainment industry to become proactive and professional. An essential first step would involve
conducting an inventory of entertainment providers and services on the island and an assessment of
their needs.
5.0
CONCLUSION - NEXT STEPS
We suggest that our recommendations be reviewed by the Tobago Steering Committee to determine
which projects should be prioritised for implementation according to TTF's selection criteria that
projects should:



Match industry priorities
Meet community needs
Be feasible
In determining the priorities, we recommend that two implementation programmes should be devised,
one for the short term (6-12 months) and an other for the medium term (2-5 years). Plans for the
second programme could be reviewed in the light of progress on the short-term programme.
Projects short-listed for implementation in the short term should be developed by the Programme Coordinator into full project proposals. These detailed project plans should then be reviewed by the
Steering Committee, which would decide which projects should be implemented, based on the
resources at its disposal, taking into account any partnership funding and in-kind support pledged by
TTF stakeholders.
TTF should then take steps to establish a Memorandum of Understanding (MOU) with the key
stakeholder organisations involved in those projects selected for implementation or support. This MOU
would serve as a firm indication of the Foundation’s commitment to play a part in effecting change
("Caring for the places we love to visit") on behalf of the British travel trade and British tourists, as well
as the commitment of all the other parties concerned. Equally important, the MOU would articulate the
policy decision that each of the projects would need to become fully self-sustaining after a specified
period of time and that the Foundation’s involvement would be progressively phased-out over the same
period.
Finally, opportunities to visit and learn from similar sustainable initiatives being implemented in other
destinations can be instructive. Research indicates that the work of OXFAM in Barbados, IICA and
initiatives undertaken by Ladera and Sandals Resorts in St. Lucia are relevant. TTF’s own initiative in
Cyprus (Heritage Tour) is also commended. The Tobago Programme Co-ordinator should be
encouraged to take every opportunity to collaborate with partner agencies and individuals with a view
to sharing information, tools and techniques that add value to the Tobago programme and contribute to
Travel Foundation initiatives in other tourism destinations.
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Afzal Abdool & Benjamin Carey
NOTES
1
The Travel Foundation Forum AGM, London, 29 September 2003.
A list of individuals and agencies consulted is shown at Appendix A.
3 Appendix G
4 Appendix C
5 Appendix H
6 World Travel Awards 2004
7 Appendix B
8 Appendix E
9 Appendix C
10 Three of these hotels still have some residual B&B contracts with tour operators, but from
information supplied by hotels it is not clear whether these will be renewed in the future.
11 Appendix D
12 This is based on a proportion of the total GDP for Trinidad & Tobago, since reliable disaggregated
figures for the separate islands are not available. However it is accepted that Tobago's per capita GDP
is lower than the figure for the whole nation, which means that the % reported here is in fact an
understatement.
13 Appendix C
14 Appendix F
15 Appendix J
16 Appendix K
17 Appendix J
18 Appendix I
2
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Afzal Abdool & Benjamin Carey
APPENDICES
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Individuals and agencies consulted
Accommodation capacity
All-inclusive properties
UK tour operators
Tourist arrivals
Cruise tourism
Questionnaire for Hotel Managers
Questionnaire for AI tourists
Modelling the sector
Demand for fresh produce
Businesses in and out of the supply chain
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A.
Individuals and agencies consulted
The following individuals and the agencies they represent were consulted in the Caribbean:
 Miles Almandoz, Almandoz Tobago Limited
 Stephanie Bob-Als, Tobago Handicraft Association
 Pamela Collins PhD, UWI
 Trevor Craig, Farmer
 Patrick Dankou, Yes Tourism
 Eric Feniet, Coco Reef Resort and Spa
 Verlyn Fraser, Tobago Handicraft Association
 Theodore Greig, West Indian International Tours
 Darren Henry, Tour Guide Association
 Christopher James, Inn on the Bay
 Farmer Leach, Lambeau
 Alpha Lorde, Grafton Beach Resort
 Emile Louis, Tobago All Fisherfolk Association
 Ramon Marks, Division of Agriculture Fisheries and the Environment, THA
 Lawrence McConney, McConney Egg Farm
 Troy Murray, Bonkers Restaurant
 Jean Nichols, Business Development Company
 Andre Phillips, PUSH Foundation
 Reginald Phillips, Farmer
 Rachael Ramsaran-Sharma, Tropikist Beach Hotel
 Larry Richards, Marketing Department THA
 Jean Robert-Richard, Marketing Department THA
 Gamal Rodriguez, Tobago Hilton
 Randall Rostant, Tobago Travel
 Cleve Scott, Oxfam Barbados
 Rene Seepersadsingh, Le Gran Courlan Resort and Spa
 Karen Shaw, Marketing Department THA
 Edmund Sidonie, Rex Turtle Beach Hotel
 Sandra Timothy, Marketing Department THA
 Judith Walcott, West Indian International Tours
 Wendell Walker, Marketing Department THA
 Wendy Lee Yuen, Trinidad Agriculture Society
The following travel companies and tourism organisations were consulted in the UK:
 AI Leisure
 BA Holidays
 Caribworld
 Federation of Tour Operators
 First Choice
 Journey Latin America
 Kuoni
 MyTravel
 Naturetrek
 Planos Holidays
 Regal
 Thomas Cook
 Tourism Concern
 The Travel Foundation
 TUI
 Virgin Holidays
 Wildlife Worldwide
 Wildwings
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B.
Accommodation capacity
Year
1998
1999
2000
2001
2002
Source: CSO
C.
Rooms
1,884
2,174
2,325
2,488
2,634
Annual growth YOY
15%
7%
7%
6%
All-inclusive properties
A survey of tourist accommodation shows that the following nine properties offer All-inclusive product:
Property
Blue Haven
Coco Reef Resort & Spa
Grafton Beach Hotel
Le Grand Courlan Spa Resort
Hilton Tobago
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4*
3*
4*
5*
Inn on the Bay
Mount Irvine Bay Hotel & Golf Club
Rex Turtle Beach
Tropikist Hotel
TOTAL:
Source: Hotels and TIDCO
Ownership
Tobagonian
Trinidadian
Non-T&T
Total:
Source: Hotels
Rating
2*
3*
Ownership
Foreign
Foreign
Trinidadian
Trinidadian
Mixed (foreign
and
Trinidadian)
Foreign
Tobagonian
Trinidadian
Trinidadian
AI
Mixed
Exclusive
Exclusive
Exclusive
55
135
108
78
Rooms
6%
15%
12%
9%
Converting
200
23%
Exclusive
Mixed
Exclusive
Mixed
20
105
125
54
880
2%
12%
14%
6%
100%
Proportion of total capacity in AI properties
12%
53%
35%
100%
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Afzal Abdool & Benjamin Carey
D.
UK tour operators
We reviewed the following companies' brochures, all of which include a holiday programme to Tobago:
Company or Group
AI Leisure
BA Holidays
Caribworld
First Choice
Journey Latin America
Kuoni
MyTravel
Naturetrek
Planos Holidays
Regal
Thomas Cook
TUI
Virgin Holidays
Wildlife Worldwide
WildWings
Brochure
Complete Caribbean
Tropical beaches
Caribbean
Hayes & Jarvis Diving
Hayes & Jarvis Worldwide Holidays
Sovereign Worldwide Beaches & Experiences
Trips The Alternative Caribbean
Bespoke Holiday Portfolio
Tropical Sun
Worldwide
Cresta Worldwide
Tradewinds Worldwide Holidays
Birdwatching, Botanical & Natural History Holidays
Just Tobago
Regaldive Worldwide
Signature Worldwide
Thomson Faraway Shores
Thomson Worldwide
Florida & the Caribbean
Wildlife Worldwide
Worldwide Travel
Season
2004
2004
2004
2003-2004
2004-2005
2004-2005
2004-2005
2004
2004
2004
2003-2004
2004-2005
2004
2004
2003-2004
2004
2004-2005
2004-2005
2004-2005
2004-2005
2004-2005
Although some of these companies carry fewer than 100 passengers per annum to the destination, all
fifteen were invited to contribute as part of the consultation process to ensure completeness and
balance. The seven FTO group members were approached primarily through the TFIU and the
responses received (mostly by email) represented six tour operators within these groups, including two
that gave in-depth telephone interviews. The eight AITO companies were consulted directly and, of
these, three engaged by having very thorough and open conversations with the consultant about their
operations in Tobago, whilst two others gave briefer interviews. The companies’ overall response rate
of 53% is very encouraging and, particularly during such a critical period in the tour operating calendar,
illustrates the tremendous commitment of some operators to explore and promote initiatives to sustain
the local benefits of their activities in the destination.
Four main themes emerged:
Supplier policies
There is an apparent contrast in approach between the larger and smaller operators in the extent to
which they feel they can or should influence their suppliers’ purchasing and employment policies.
Although they are responsible for the majority of tourism to the island, the larger companies feel
constrained by health & safety considerations, the risk of litigation and commercial imperatives. One
stated that they “are not in a position to dictate [purchasing policies]... as it is down to each individual
hotel to decide their [own]” and nor are they “in a position to dictate whom [the hotels] should or should
not employ”. Another reported that the shortage of quality accommodation on the island means that
the larger hotels (particularly those offering AI product) cannot be compelled to change their policies,
since there will always be another operator waiting to take over an allocation, if an operator becomes
too demanding. The other problem, which is a perennial one for tour operator buyers, is that they just
do not have the resources (time and expertise) to tackle those areas, such as environmental
management, that have no bearing on price and health & safety. Margins are so tight for mainstream
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Afzal Abdool & Benjamin Carey
operators, that they cannot justify investing time on peripheral matters, particularly when they believe
that raising some of these issues could alienate suppliers and jeopardise contracts.
In contrast, many of the smaller operators, which admittedly primarily work with the smaller hotels and
agents, believe that they have a responsibility to influence their suppliers in order to ensure that their
customers’ holiday experience is optimised. Since a key aspect of the holiday experience is the social,
economic and cultural environment, some operators are keen to promote policies that will enhance this
multidimensional environment. Some will therefore “stick their head above the parapet” to encourage
their suppliers to take actions that will mitigate the negative impacts of tourism and spread the positive
impacts throughout the wider stakeholder community.
This contrast in approach can be resolved by considering two findings.
Almost without exception, managers and proprietors of hotels (including all the AI properties consulted)
have told us that they are keen to mitigate the negative impacts of tourism and to spread the positive
impacts throughout the wider stakeholder community. Indeed, whereas some hoteliers become
frustrated by tour operators’ health & safety demands motivated by a fear of litigation, many are
enthusiastic about working with tour operators to promote initiatives that will have a positive impact on
the destination environment. Larger tour operators are excited by the FTO’s Responsible Tourism
Committee and its scope for creating a level playing field, which will enable tour operators to work
collectively and to effect change in their suppliers. Meanwhile smaller tour operators are more than
willing to share their experience and to contribute. The TFIU therefore provides an opportunity for all
operators to work together, but the message for larger tour operators is perhaps that they could have
far more of a positive influence than they might currently realise.
Tourism planning
Most operators reported confidence in planning controls on the island and in the government’s
approach to tourism development. There was however some scepticism about the viability of growth in
cruise tourism, for reasons discussed above, and serious concern about proposed developments at
Buccoo Marsh, a rare freshwater mangrove swamp with important biodiversity and tremendous value
as an ecotourism resource. The proposals for Buccoo Marsh include the construction of a golf course,
a lake and four or five new hotels, adding as many as 3,000 extra rooms, which would double
accommodation capacity on the island and would reduce some British tour operators’ concerns about
accommodation shortages. However, apart from the environmental impact on marine and inland
waterways, there are concerns that transport infrastructure on the island would not be able to keep
pace with this kind of development.
There was also some anxiety expressed about the development of a large market next to the Port
terminal that would be readily accessible for cruise tourists, as some operators believe this could
undermine the small but economically important craft market on the other side of the island at Mount
Irvine.
With Tobago being so dependent on the British market, there is a clear opportunity for The Travel
Foundation to lead the British outbound industry’s contribution to debates on planning issues to ensure
that planning decisions are appropriately balanced and take due account of all stakeholder needs.
Local excursions
The vast majority of local guides are considered responsible. Some operators however reported that
some boatmen taking groups to Little Tobago and St Giles Island have developed the habit of blowing
hooters to raise the birds, which is of course contrary to all good practice. Others remarked on
exponential growth and lack of restriction on visitor numbers to Gilpin Trace and the “rainforest
experience”.
To allay concerns of both operators and local stakeholders, it would be prudent to devise some codes
of conduct through a multistakeholder process, which can subsequently be disseminated widely.
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Consumer advice
A review of tour operator brochures found a number of inaccuracies about the island, particularly in the
suggestion that there are very few restaurants available away from the main resort hotels. In general
we felt that the brochure medium provides a tremendous opportunity to promote Tobagonian food and
culture and thereby influence customer choices. Changing consumer expectations would also help to
tackle some tour operators’ concerns about trying to influence suppliers.
More destination-specific consumer advice should be properly researched and made available to
ensure that customers do spend more time away from their hotels and get really stuck into their host
environment. They will have a more engaging holiday experience and the benefits of their visit will be
spread more widely.
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E.
Tourist arrivals
Annual tourist arrivals (1997-2003):
Year
Pax
Annual growth YOY
1997
44,293
1998
55,743
1999
61,618
2000
53,667
2001
49,441
2002
56,565
2003
68,000*
2004
75,000^
Source: Department of Tourism
26%
11%
(13%)
(8%)
14%
20%
10%
* Estimate
Annualised cumulative
growth (vs. 1997
26%
18%
7%
3%
5%
7%
8%
^ Projection
Tourist arrivals by accommodation type (1998-2001):
Accommodation
Hotel
Guesthouse
Other
TOTAL:
Source: CSO
1998
48.6%
23.8%
27.6%
100%
1999
47.3%
26.2%
26.5%
100%
2000
43.1%
25.6%
31.4%
100%
2001
48.9%
23.5%
27.7%
100%
Tourist arrivals by key market (2001):
Country of residence
United Kingdom
Germany
ROW
TOTAL:
Market share
71%
16%
13%
100%
Source: Department of Tourism; Tobago Tourism Sector Report 2002
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F.
Cruise tourism
Annual volume of cruise visits to Tobago (1995-2002):
Year
Ships
60
45
58
48
54
67
45
24
TOTAL:
401
Average:
50
Source: Department of Tourism
1995
1996
1997
1998
1999
2000
2001
2002
Passengers
15,249
20,462
17,395
12,246
13,626
23,266
8,909
8,242
119,395
14,924
Avg pax per ship
254
455
300
255
252
347
198
343
298
Average number of cruise visits to Tobago by month (1995-2002):
Month
Ships
January
9
February
10
March
8
April
3
May
1
June
2
July
1
August
2
September
2
October
1
November
5
December
8
TOTAL:
50
Average:
4
Source: Department of Tourism
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Passengers
2,743
3,097
2,058
947
237
234
169
439
543
239
1,603
2,614
14,924
1,244
25
Avg pax per ship
323
326
274
281
172
156
169
220
362
213
321
337
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Afzal Abdool & Benjamin Carey
G.
Questionnaire for Hotel Managers
This questionnaire, including the appendix of supplemental data, was used for the survey of AI
managers.
ALL-INCLUSIVE RESEARCH PROJECT – TOBAGO
Interview Questionnaire for Hoteliers
Introduction
This piece of research has been commissioned by The Travel Foundation, a UK-based charity created
to work alongside the tourism industry to help it manage tourism more sustainably. The Foundation
aims to change the practice of outbound tourism from the UK so that it makes a greater contribution to
people, environment and economy in destination countries. The work of the Travel Foundation is
funded by the British Foreign and Commonwealth Office and from voluntary contributions made by UK
tourists.
This project will examine the role of All-inclusive hotels in the socioeconomy of Tobago and explore
opportunities to develop their contribution.
Please be assured that any data you provide will remain confidential to the project and will only be
reported in broad terms as part of a wider analysis, in which your hotel will simply be identified as a
participant. Please discuss any concern you may have with the researcher.
Thank you for agreeing to participate.
1. Hotel name
2. Number of rooms
3. Ownership
4. Operation
Local
Local
Foreign
Foreign
5. Market share (%)
High season
(Dec15 – Apr 15)
Low season
(Apr16 – Dec 14)
UK
German
Caribbean
USA
Other
6. Occupancy rate (%)
High season
Low season
7. Number of employees
High season
Low season
8. Employment mix (%)
Permanent
Temporary
9. Average length of stay (days)
10. Average All-Inclusive package rate per week (US$)
11. All-inclusive services offered (please list)
12. Inputs (Products and Services) out-sourced (ex-hotel operations)
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Local (please list products/services/suppliers)
Foreign (please list products/services/suppliers)
13. Present experience with local supply system:

Problems encountered

Remedies suggested

Opportunities available
14. Use of local inputs
If given the opportunity, would you be interested in doing more business with local suppliers?
Yes
No
If no, then why?
15. General Comment
Thank you.
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APPENDIX – Supplemental data
16. All-inclusive business as a percentage of annual revenue (%)
17. All-inclusive business as a percentage of room capacity (%)
18. Average monthly wage bill (US$)
19. Annual taxes paid to Government - VAT (US$)
20. Annual consumption of water (Litres)
21. Annual consumption of electricity (Kilowatts)
22. Annual services bill (US$)
Water
Electricity
Garbage disposal
Sewerage treatment
Entertainment
Others (please list)
23. Annual Food bill (US$)
Local
Foreign
24. Payments to external entities (US$)
Management / consultant fees
Marketing / promotion contracts (list agencies)
Other
25. Estimated annual wastage (US$)
Food
Other
26. Value of out-sourced inputs (US$)
Local
Foreign
27. Percentage All-inclusive services supplied by hotel owner/operator or affiliate (organisation in
which owner/operator holds shares) (%)
List
28. Percentage All-inclusive services supplied by external individuals and/or agencies (%)
List
Notes
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Afzal Abdool & Benjamin Carey
H.
Questionnaire for AI tourists
THE TRAVEL FOUNDATION
ALL-INCLUSIVE RESEARCH PROJECT – TOBAGO
INTERVIEW QUESTIONNAIRE FOR TOURISTS
Introduction
This piece of research has been commissioned by The Travel Foundation, a UK-based charity created
to work alongside the tourism industry to help it manage tourism more sustainably. The Foundation
aims to change the practice of outbound tourism from the UK so that it makes a greater contribution to
people, environment and economy in destination countries. The work of the Travel Foundation is
funded by the British Foreign and Commonwealth Office and from voluntary contributions made by UK
tourists.
This project will examine the role of All-inclusive hotels in the socioeconomy of Tobago and explore
opportunities to develop their contribution. Please be assured that any data you provide will remain
confidential to the project and will only be reported in broad terms as part of a wider analysis, in which
your hotel will simply be identified as a participant. Please discuss any concern you may have with the
researcher.
Thank you for agreeing to participate.
1.
2.
3.
4.
5.
Hotel Name
Tour Operator’s Name
All-inclusive Holiday?
Yes
No
Are you satisfied with the choice of local food offered at your hotel?
What activities have you done outside of the hotel compound?
Dining (restaurants)
Car Hire (Rentals)
Other (please specify)
6.
7.
8.
9.
Yes
No
Tours (please specify type)
Shopping
How much money have you spent on the island (apart from your package price)?
What products and services did you buy during your holiday?
What products or services would you have liked to purchase but was unable to find here?
Here is a list of locally made products and services. Please tick the items you would consider
purchasing while on holiday or as gifts to take away:
Designer Garments
Jams and Jellies
Art (paintings)
Wall Hangings
Carvings (wood, metal)
Leather Craft (belts etc)
Local Food
Coffee
Hand Crafted Glass
Perfumed candles
Hair Dressing
Beauty Treatments
Other (please specify)
Custom-made clothing
Fruit preserves and Pickles
Jewellery (precious / costume)
Batik
Fresh Fruit Juices
Printed T-shirts
Pottery
Cocoa
Honey
Wines
Dance Workshops
Cooking Workshops
Fresh-cut flowers
Craft Items (specify)
Fabric (tie-dyed, etc.)
Ceramics
Frozen Flying Fish
Fresh Fruits
Cigars
Alcohol
Musical Drums
Hair Braiding
Body Massages
General Comment
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Afzal Abdool & Benjamin Carey
I.
Modelling the sector
The model on the following page is designed to be a graphical illustration of the tourism supply chain.
The relative thickness of the link lines is intended to indicate the size of the linkage within the Allinclusive supply chain. For instance, although visitors do have a 2-way relationship with the host
environment, a large part of it is a reflection of their experience of the AI resort in which they stay.
The opportunity for mitigating the negative impacts of tourism and for spreading the positive impacts of
tourism will therefore be achieved by:

shifting the emphasis of the supply chain from 4 to 7 and from 5 to 8, so that visitors are
increasingly encouraged to experience the host environment outside the AI resort and within the
local community. This includes eating local food and seeking out local crafts and culture,

whilst controlling 6 - ensuring that this doesn’t lead to increased negative environmental impacts
and

without undermining (and ideally at the same time expanding) 2 and 15, the existing supply of
goods and services to hotels and

also without weakening 9 and 11, the existing chain of supply from tour operators to their agents.
There is no value in creating additional business opportunities and relationships, if existing ones are
undermined.
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Afzal Abdool & Benjamin Carey
Host environment
including all human resources, local production and services and other tourism assets,
such as the cultural, natural and built environments
12
14
1
13
15
2
16
17
11
Tour
operators
Accommodation
suppliers
3
18
10
Destination
agents
19
9
8*
4
5
Goods supplied
7
Services supplied
Environmental impact
Experience gained (*2-way)
Visitors
6
Clients supplied
© Dunira Strategy 2004
J.
Demand for fresh produce
Estimated annual demand for food produce in the Tobago hotel and restaurant sectors:
Crop
Proportion of
food bill
40%
25%
14%
9%
6%
2%
2%
1%
1%
0%
0%
1%
Estimated value
1998 (TTD)
6,612,490
4,216,280
2,309,510
1,523,560
965,790
278,550
268,450
150,490
100,980
62,010
1,900
167,480
Projected value
2004 (TTD)
8,926,862
5,691,978
3,117,839
2,056,806
1,303,817
376,043
362,408
203,162
136,323
83,714
2,565
226,098
Fish and seafood
Meat*
Vegetables
Fruit
Processed foods*
Herbs
Eggs
Beans and peas
Root crops
Peppers
Corn
Imported crops
(eg apples, onions)*
TOTAL FOOD BILL:
16,657,490
100%
Sterling equivalent:
£1.7M
Source: Hospitality Industry Survey Tobago 1998, Marketing Information Unit THA.
22,487,611
£2.2M
Since 1998, the prices of agricultural produce have increased marginally while the projected tourist
arrivals for 2004 represents a 34.5% increase on 1998. On this basis, we project that the annual cost
of food products for the tourism sector in the current year (2004) will be about £2.2M. This estimate
should be considered as conservative in view of the fact that the prices of imported food items would
have increased significantly more than the locally grown items.
* The potential demand for locally (Tobago) grown food products would exclude all of the imported
crops and some meats and processed foods which are imported from outside T&T.
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K.
Businesses in and out of the supply chain
This appendix includes brief profiles of businesses that were identified as having the potential for
growth.
Businesses in the supply chain
The following business operations came to our attention during the course of this research. However,
further investigation is recommended to uncover other participating businesses.
McCONNEY’S EGG FARM
This is a very good example of a business applying technology to gain competitive advantage. The
farm is primarily an egg-producing operation with 12,000 laying hens, supplemented by some forty
goats and 80 breeding sheep (ewes). Mr. McConney’s greatest challenges are lack of good (reliable)
labour and limited land space. He expects the labour issue will be addressed with the introduction of
the Free Trade Area of the Americas (FTAA) in 2005, when Tobago will be opened up to the wider
labour market throughout the Caribbean region and beyond. More land is needed to introduce broilers
(chickens grown for meat as opposed to eggs) and to plant grass as fodder for animals. The sheep are
reared in slatted pens as they plan to deliver mutton of international standard in the near future.
His success is a result of his customer focus, positive attitude to change and enthusiastic adoption of
new technology. He has spent large sums of money on travelling the world visiting farms to learn about
his industry and in attending training courses to improve his knowledge and skills. He is disappointed
that no grant funding is available to individual farmers (only farmer organisations) as he feels that local
farmers’ organisations are often fragmented. McConney Farms is visited on a regular basis by students
on field trips from The University of the West Indies (UWI) and Eastern Caribbean Institute for
Agriculture and Farming (ECIAF). Mr. McConney would be keen to contribute to the design and
implementation of a proposed mentoring programme for young farmers.
FARMER REGINALD PHILIPPS
A small scale professional farmer, who supplies a limited variety of fruit and vegetables to hotels and
restaurants. He specialises in a few crops based on his demand projections.
CRAFTSMAN TED ARTHUR
A sole trader operating locally out of his home producing leather footwear of high quality in design and
finish. He sells his goods at the Hilton hotel’s weekly craft market.
JAPIA’S PASTRIES
This is a small family-run business supplying rotis (local pastry similar to pitta bread) to Grafton Beach
Hotel and Le Grand Courlan Spa Resort. Their emphasis on service and quality has contributed to their
sustained success.
FISHERMAN BENTON DAVIS
He is an established local supplier of fish to leading properties, such as Grafton Beach Hotel and Le
Grand Courlan Spa Resort. His is one of the few local businesses that offer credit terms to customers.
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Suppliers with potential to participate in hotel supply chain
This list is by no means exhaustive and further efforts should be made by TTF’s Tobago Programme
Co-ordinator to identify eligible individuals and businesses.
MT. ST. GEORGE FARMERS ASSOCIATION
This is the most dynamic of the three active farmers’ associations on the island and therefore presents
the best opportunity for participating in a pilot project.
FRIENDSFIELD YOUNG FARMERS ASSOCIATION
Most of their members are young farmers who are more amenable to employing new technologies in
their farm practices. It is felt that this group is well placed to respond to new challenges in agriculture.
SOUTHWEST TOBAGO FISHING ASSOCIATION
Operating in the heart of the tourist zone, this organisation is best placed to develop business
relationships with hotels and restaurants in the locale.
THE ROXBOROUGH COTTAGE
A small group of local women who have come together without any formal organisational structure to
produce fruit preserves, jams and jellies, pepper sauce, herb seasonings, etc. under the label Taste of
Tobago. They have had expert assistance from Caribbean Agriculture Research and Development
Institute (CARDI) in food processing techniques and other support from the Marketing Department of
the THA. Their products have become known for their high quality, both locally and abroad, but their
pre-production, processing and inventory management systems restrict them from keeping pace with
demand, even in the absence of any marketing efforts.
FARMER TREVOR CRAIG
A producer of exotic fruits including cantaloupes and vegetables for the hotel industry, Mr. Craig
reported that he was forced to abandon his farm because "hotels don’t want to pay for quality". He
dismisses the suggestion that Tobago farmers are unreliable arguing that "the farmer cannot have
working capital to sustain production with debtors who expect extended credit terms".
GOLDEN GROVE FARM
This is a well-established family-run free-range cattle and sheep farm with good standards of meats for
the local market. However, they have not been able to satisfy the requirements of the hospitality
industry in terms of client expectations of quality. Free-range sheep are also commonly reared in family
homesteads, but only find a ready market in Trinidad.
TOBAGO HANDICRAFT ASSOCIATION
The Tobago Handicraft Association has twelve active members. Together they produce tie-dyed, batik
and hand-painted fabrics, basketry and other crafts. With support from the Department of Community
Development and Culture, they have a good location and facilities for displaying and selling their crafts.
However, they lack expertise in marketing and experience problems with sourcing raw materials at
reasonable prices.
TOUR GUIDES AT ARGYLE WATERFALL
The youth of Roxborough have come together in a co-operative arrangement to offer guided tours of
the popular attraction at Argyle Waterfall. Although they have been in business for a number of years
and have undergone training, professionalism is still lacking and leadership is poor. However, a few
guides are good exemplars and can function as mentors to the rest.
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