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
Tourism is the only industry which:

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

Opportunities are created for employment in the areas of:

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!