Benefits and Challenges

of Tourism
A Local, Regional and International
Perspective

Rachel Collis
Tourism Analyst
Ministry of Tourism
Antigua & Barbuda
March 2008

Tourism Defined
Tourism may be defined as:
 The activities of persons
travelling to and staying in
places outside their usual
environment for not more
than one consecutive year

Leisure travel, business

travel and other purposes

Activities within the place

visited, which result in
remuneration.

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

promotes the understanding and

preservation of culture and the
environment

fosters co-operation between

the private sector, public sector
and local communities
 presents career opportunities
unlike any other industry.

Tourism Defined
Enriches individuals,
families, communities

Invigorates economies

Stimulates development

Strengths of Tourism
An industry with good
investment opportunities
(hotels, restaurants,etc)
It sustains more than 1 in 10
jobs around the world
 It stimulates innovations in
travel and the milestones
which the airline industry has
reached (e g, space tourism)
It promotes improvements in
the accommodation sector
It spotlights the emergence
of the cruise and yachting
industry as a giant in the
hospitality industry

Strengths of Tourism
IT transforms how tourism is
marketed
Training of employees to
deliver quality service
 Feeling of confidence, of self-
assertiveness which the
industry now enjoys.

Sustainable Benefits of Tourism

Tourism generates jobs
directly through hotels,
restaurants, nightclubs, taxis,
souvenir sales, arts and crafts

indirectly through the supply of

goods and services needed by
tourism-related businesses.
 Tourism contributes to the
emergence of local
entrepreneurial and
management groups, especially
in the areas of hotels,
restaurants, nightclubs, shops,
ground transport, water sport
operation and entertainment.

Sustainable Benefits of Tourism

Tourism promotes improvements in

the environment
the infrastructure
communications
the provision of utilities
(clean water,, etc)
Sustainable Benefits in Tourism

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

Tourism Contributes to
Government Revenues via:
Direct Contributions - taxes on
incomes from tourism
employment and tourism
businesses, and by direct levies
on tourists, such as departure
taxes.

Indirect Contributions - taxes

and duties levied on goods and
services supplied to tourists.

Tourism Stimulates
Infrastructural Investment
 roads
electricity
telephone
public transport
networks
service facilities
water and sewage
systems

Tourism Stimulates Social

Development in Local
Communities
upgraded infrastructure
festivals and sporting events
 jobs in rural communities to
help stem influx of persons
into the city

Diversification of the Local

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

Brief Global Tourism Outlook

Receipts from the
global tourism industry
totalled US$735 billion
in 2006
 Economic growth was
almost 5% in 2007,
with the same forecast
for 2008

Brief Global Tourism Outlook

808 million persons travelled
abroad in 2005

by the year 2010 more than 900

million persons would have taken
at least one pleasure trip
 Tourism supports some 10% of
the worlds workers.

The relationship between

tourism, climate change and
poverty alleviation will be more
defined.

Regional Outlook
Tourism is responsible for:-
14.8% of the regions GDP
15.1% of total employment
19.7% of total foreign
exchange earnings
economic growth (estimated)
of 4.1% annually
 employment growth
(estimated) of 2.8% annually

Local Outlook on
Tourism
The tourism sector is the most important
economic activity in Antigua and
Barbuda.

It represents
over 85% of total foreign
exchange earnings
48 % of export earnings
59% of total capital investment
approx 70% of GDP.
It generates
 approx. 8,000 jobs (26%)
directly, plus a further 3,000 jobs
in related areas throughout the
economy (2006).
total visitor expenditures of
approximately EC$919.8 million
per year.

Local Outlook on
Tourism (cont)

262,000 stay-over tourists

visited Antigua in 2007 (254,000
in 2006)
672,788 cruise passengers
visited Antigua in 2007
 An estimated 70,000+ day
visitors arrive each year from
other nearby islands, mainly for
business, trade, or personal
reasons, including some leisure
trips (intra-regional tourism).

Local Outlook on
Tourism (cont)
Tourism employs an estimated 40
% of the workforce

Challenges to Our
Tourism
external competition (global and
regional)
 the emergence of the new tourist

changes in consumer tastes

revolution in information and

communication technologies (ICTs)

political drivers of change

The influence of air transport

Challenges to Our
Tourism
adapting to changes in the
key generating markets
 pursuing what we can do
best ( in terms of niche
markets) with the resources
that we have
training as a response to
growth in the industry
embracing and making
optimal use of
advancements in ICTs
developing strategic
alliances and partnerships
with stakeholders locally,
regionally and internationally

More Challenges
providing a favourable and
balanced investment climate
 engaging in continuous and
appropriate institutional
strengthening
ensuring that our policies
and actions recognize the
interconnectivity of tourism
with all parts of our economy
and society
being deliberate in promoting
tourism that is
environmentally, socially and
economically sustainable
Problems in the Industry
 increasing competition from
destinations offering better value
for money (e g, Cuba and
Dominican Republic in the
Caribbean)

a weak institutional framework

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

product quality and price

service that sometimes appear

indifferent
 low return on investment

inadequate marketing

Problems in the Tourism

Industry
a lack of awareness on the part
of those making decisions about
tourism development of the
social, economic and
environmental balance to be
pursued in achieving sustainable
development
 a lack of commitment by
tourism operators and travelers
to contribute to safeguarding the
local environment and culture of
the host destination

Failure to recognize that a critical

mass is needed to compete with
the big giants in the industry

More Problems in the Tourism

Industry
unfairly traded tourism
whereby local communities are
unable to share in its benefits
 large flows of visitors in remote
or sensitive locations who can
place considerable strain on local
resources and supply systems.

travellers expectations of the

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

Changes in the destinations

cultural make-up, if poorly
managed, resulting in increased
crime, prostitution and other
social problems.
 Threats to Tourism
Terrorism
Natural disasters
Health concerns
Competition
Ecological problems from the
cruise industry
Overcrowding of destinations

Threats to Tourism (cont)

Political will and control

Themed concept of tourism

 Degradation of the
environment
Opportunities in Tourism
Creation of festivals, theme
parks
Diversification of the product, e
g, hotel packages
Good reputation for safety and
tranquillity
Capitalize on problems in other
countries
Growing focus on training of
hospitality staff and tourism
planners
Small states use of ICTs to
market at reduced costs
The learning has just
begun!