The role of tourism in development: enhancing foreign exchange

advertisement
Geographical Association Annual Conference 2011
The role of tourism in
development: enhancing
foreign exchange earnings
Alan Marvell
[email protected]
Geographical Association Annual Conference 2011
Importance
• “The maximization of foreign exchange earnings is
a high priority for most countries and in developing
countries it is often the primary objective of tourism
policy. Tourism earnings are often the most
effective, or even the only way to produce the
foreign exchange needed for the import of goods
and services essential for national economic
growth” (Wheatcroft 1998, p. 166).
Wheatcroft, S. (1998) ‘The airline industry and tourism’. In: Ioannides, D. and
Debbage, K.G. (eds) The economic geography of the tourist industry.
London: Routledge, pp. 159-179.
Geographical Association Annual Conference 2011
Foreign exchange and tourism
World Tourism Organization (2010) Tourism highlights 2010. Madrid: World Tourism
Organization, p.6.
Geographical Association Annual Conference 2011
All-inclusive holidays
• 8 April 2011 First Choice
(part of TUI) announced
that from 2012 its holidays
will be all-inclusive
• Demand grown by 32% in 5
years
• 65% of First Choice
holidays are already allinclusive
• A rebranding exercise to
distinguish between
Thomson and First Choice
brands
Image of aeroplane removed
for copyright reasons
Source: A. Pingstone (2007)
• Issue: To what extent will
holiday makers be
encouraged to spend
money in the local economy
and explore the environs
beyond the hotel?
Geographical Association Annual Conference 2011
Economic impact
Direct
spending by
visitors is
only the tip of
the iceberg
Relatively easy to
measure: visitor
numbers, expenditure
Image of iceberg removed for
copyright reasons
The indirect
impact of
tourism is
much larger
Source: Visit London (2006)
Hard to measure:
subsequent spend by
suppliers, induced
effects, investment,
etc
Geographical Association Annual Conference 2011
Tourism multipliers
Cooper, C., Fletcher, J.,
Fyall, A., Gilbert, D. and
Wanhill, S. (2008)
Tourism principles and
practice, 4th ed. Harlow:
Pearson Education
Limited, p.139.
Geographical Association Annual Conference 2011
Types of linkage between
tourism and the local economy
Ashley, C. (2006) How
can governments boost
the local economic
impacts of tourism?
London: Overseas
Development Institute.
Geographical Association Annual Conference 2011
“Gambia is Good”
http://www.youtube.com/watch
?v=V41vIRu48S4&feature=
player_detailpage
Geographical Association Annual Conference 2011
Geographical Association Annual Conference 2011
Training farm
•
•
•
•
•
•
The Gambia is Good initiative (GiG) now supplies many of the hotels
in the main resorts, collecting and selling fresh produce from
community farms.
Approximately 1000 farmers have been trained, and 90% of the
trainees were women.
Almost £175,000 has gone directly into the hands of Gambian
farmers, by selling more than 500 tonnes of locally grown produce to
hotels.
The range of produce grown has diversified and the quality of
produce has increased.
GiG created the first online ordering system in The Gambia.
Because of its innovative entrepreneurial approach, GiG has won a
number of international awards: The World Business and
Development Award in 2008, the Virgin International Responsible
Tourism Award for Poverty Reduction in 2008 and the 2009 TODO!
Award for its work in promoting sustainable tourism.
Source: The Travel Foundation (2011)
Geographical Association Annual Conference 2011
Issues for the future
•
A report by four post-graduate students at the Saïd Business School,
Oxford University.
Ebrahim, Z., Hartman, M., Quinn, M. and Schlagenhauf, J. (2009) Strategic
consulting report: Gambia is good. London: Concern Universal, p. 9.
Geographical Association Annual Conference 2011
Recommendations
•
•
•
•
•
•
1. Commit to being a business rather than an NGO project: For GiG to
become a stand-alone business, clear and consistent leadership,
communication, and action are required from key leaders and decision makers,
along with changes to GiG’s organisational culture and structure.
2. Emphasise the development of local management: Local managers must
be provided with opportunities to make increasingly important decisions and
learn from their mistakes.
3. Motivate local staff to perform: Management must act to foster a team
identity, enhance the abilities of GiG staff to succeed in their jobs, and provide
incentives for when they do.
4. Establish clear decision making criteria: Decisions should be based on a
set of guiding principles with a clear focus on profitability.
5. Formalise and enforce critical processes and communication paths:
Where informal processes and systems exist, they should be documented and
enforced by management; where they do not, they must be established.
6. Enhance seasonal differentiation strategies: Along with capturing the
upside potential in the full tourist season, strategies for reducing operating costs
and increasing revenues in the off-season must be developed.
Ebrahim, Z., Hartman, M., Quinn, M. and Schlagenhauf, J.
(2009) Strategic consulting report: Gambia is good. London:
Concern Universal, pp. 6-7.
Geographical Association Annual Conference 2011
Conclusion
• Foreign exchange earnings need
to be looked at on a case by case
basis due to localised factors and
relationships with foreign
investment.
• Local production and services are
vital to add to the chain of
production and reduce economic
leakage.
• However, local production must
meet expectation in terms of
quality, price, quantity and
reliability.
• It is clear that tourism
development needs to be part of a
holistic development policy and
not seen in isolation to the rest of
the country’s economic activity.
Image of beach removed for
copyright reasons
Source: Access Gambia (2011)
Geographical Association Annual Conference 2011
Useful resources
Concern Universal
http://www.concernuniversal.org/index.php?/home
Overseas Development Institute
http://www.odi.org.uk/
Pro-Poor Tourism
http://www.propoortourism.org.uk/
The Travel Foundation
http://www.thetravelfoundation.org.uk/
World Tourism Organization
http://unwto.org/en
World Travel and Tourism Council
http://www.wttc.org/
Download
Related flashcards
Management

42 Cards

Management

61 Cards

Create flashcards