Tourism in TanzaniaTourism involves traveling to locations other than one’s usual environment to participate in activities of interest. Tanzania contains many tourist destinations, including Mount Kilimanjaro, Serengeti National Park and Zanzibar beaches. As such, tourism in Tanzania remains essential to the economy of the nation and has a significant impact in more ways than one.

Tanzania’s Poverty Statistics

With a population of approximately 55.6 million people, Tanzania has one of the world’s most impoverished economies despite its previously high rates of growth and remarkable tourism industry. Tanzania’s GDP growth rate decreased from 5.8% in 2019 to 2% in 2020, meaning that Tanzania’s growth per capita became unprecedentedly negative. Furthermore, the Tanzanian poverty rate was 25.7% in 2020, which means that almost 15 million Tanzanians could not afford some or all of their basic necessities.

The Impacts of COVID-19 in Tanzania

Due to the COVID-19 pandemic, more than 140,000 people in Tanzania lost their formal jobs in June 2020. Additionally, more than two million people with informal, non-farming jobs experienced a decrease in income. Because of these pandemic job losses, more than half a million people could be pushed below Tanzania’s poverty line.

Furthermore, Tanzania’s rapid population explosion during the pandemic has resulted in an increase in the number of citizens living under the poverty line. Tanzania’s poverty rate increased to nearly 2% in the past year, meaning hundreds of thousands of people have been pushed below the poverty line since the pandemic began. According to the World Bank, “[b]ecause a large share of Tanzania’s population is close to the poverty line, even a mild economic shock can push numerous households into poverty.”

Moreover, the pandemic has halted many businesses, especially in the tourism and manufacturing sectors. However, with the new development of the COVID-19 vaccine, many people are starting to travel again, which may indicate that an economic turn-around could be in Tanzania’s near future.

Tourism in Tanzania

According to University of Dar Es Salaam students Nathanael Luvanga and Joseph Shitundu, Tanzania’s tourism industry contributes to the alleviation of poverty. In their study, they examined three popular tourist attractions in Tanzania and how the qualities of those three locations helped alleviate poverty.

The students found that tourism in Tanzania creates employment for those who live in poverty, including jobs operating hotels, providing tours, working at stores and handcrafting goods to sell to tourists. Job creation in the tourism industry is decreasing poverty rates because the skills needed to obtain employment are not specialized. This means that with proper training, anyone can excel as a tourism industry employee.

The Benefits of Tourism

As a result of positive tourism in Tanzania, the country has observed an increase in the number of people acquiring income from tourism-related jobs. With tourism and travel rates beginning to increase again, many are hopeful that more job opportunities in the tourism industry will arise.

Moreover, tourism strongly correlates with national and even international capital, which opens many opportunities to benefit impoverished citizens and further reduce poverty rates. Tourism was Tanzania’s “largest foreign exchange earner,” the second-largest GDP contributor and the third-largest employment creator, per a World Bank report. With access to numerous foreign markets, Tanzania is able to create employment opportunities for the impoverished, preserve cultural traditions through tourism, expand efforts to further develop the country and decrease poverty rates.

Tourism Alleviates Poverty

More than two million people have visited Tanzania each year to view its exquisite scenery and learn about Tanzanian culture, but tourists are unaware of just how important their visits are to alleviating poverty. Tourism creates jobs for those living in poverty, allowing many impoverished Tanzanian people to provide for their families, and therefore, lift themselves above the poverty line. Additionally, tourism allows Tanzania to use foreign capital to boost its economy, contributing to a rise in its GDP. National and international funding gained from tourism allow an expansion in efforts to eliminate poverty in Tanzania and generates more unique opportunities to benefit the impoverished.

Lauren Spiers
Photo: Flickr

Film Industry in Saint Kitts and NevisSaint Kitts and Nevis became the Eastern Caribbean Currency Union’s (ECCU) first sovereign state to lower its debt-to-GDP ratio to the minimum 60% benchmark in 2018. The dual-island nation also adopted the Poverty Alleviation Program. Through this initiative, the government provided a monthly stipend to 4,000 families making less than EC $3,000 (USD $1,100) each month. However, the impacts of the COVID-19 pandemic are jeopardizing the country’s economic growth. The tourism industry contributes 60% of Saint Kitts and Nevis’s GDP. Because of the pandemic’s disruption to the tourism sector, predictions have determined that the country will experience -2% GDP growth in 2021. Fortunately, an unexpected economic opportunity has arisen that will assist the nation in generating additional revenue: the new film industry in Saint Kitts and Nevis.

The MSR Media Deal

The entertainment industry suffered a significant economic collapse due to the shutdown of movie theaters and film production studios during lockdown regulations. In 2020, estimates determined that the international theatrical and home entertainment industry was worth $80.8 billion. This is a drop of 18% from the previous year. The most substantial decrease was in theater revenue, which fell from $42.3 billion in 2019 to $12 billion in 2020. Moreover, theater companies generated just 15% of the world’s total entertainment revenues compared to 43% in 2019.

COVID-19 safety regulations cost film companies like Universal an extra $8 million due to the overall production costs in the U.K. Due to the strict safety precautions and rising production costs in the U.K., film companies like MSR Media sought after COVID-19 safe havens to continue filming. The company found Nevis Island to be the ideal solution.

Saint Kitts and Nevis had only 44 reported coronavirus cases by March 2021. All but two of the patients had recovered completely, and there had been no fatalities. Since the end of August 2020, there have been no curfew or shelter-in-place restrictions throughout the country. Additionally, the CDC has also given Saint Kitts and Nevis a Level 1: Low Covid Risk rating. In contrast, the State Department has given the nation a Level 2 travel advisory. MSR Media has invested a multi-million dollar film industry investment in Saint Kitts and Nevis as a result of the country’s efficient control of the COVID-19 pandemic. As a result, the film industry in Saint Kitts and Nevis underwent formal establishment.

New Employment Opportunities

According to data from the Eastern Caribbean Central Bank (ECCB), Saint Kitts and Nevis’ economy had a GDP of $927.4 million (2.5 billion Eastern Caribbean dollars) in 2020, down 11.2% due to the prolonged COVID-19 pandemic and its effect on the tourism industry. In 2019, the tourism industry in Saint Kitts and Nevis employed 4,800 people. However, a World Food Programme survey found 51% of the population reported job losses or lower income as a result of the pandemic in 2020. Winston Crooke, a former actor and native Nevis Islander, detailed the tourist industry’s dire state. “I haven’t seen a tourist in a year and a half,” he told The Borgen Project in an interview.

Film creators will shoot six films on the island of Nevis as part of the MSR Media deal. MSR Media has recruited a total of 32 locals to work full-time with the film crew. Eight locals have landed speaking roles. Additionally, the crew cast 160 locals as extras. Nevis Premier Mark Brantley expressed gratitude to MSR Media for bringing employment and development opportunities to the island.

Boosting the Economy

The debut of the film industry in Saint Kitts and Nevis is also proving to be profitable. As a result of the MSR Media deal, opportunities for economic diversification have developed. It has created new prospects for employment, education and increased the exposure of Nevis across the world. Every four months, $1 million will go to the national economy per terms of the MSR Media deal.

The arrival of the film industry in Saint Kitts and Nevis has also ushered in the possibility of a new tourism category known as film tourism. Several distinct characteristics contribute to Saint Kitts and Nevis’ appeal as a filming location, setting the twin islands apart from others in the Caribbean. The country’s breathtaking scenery includes green hills that meet at Mt. Liamuiga’s volcanic peak, a rainforest, a harbor with several hidden coves and inlets and many beautiful beaches. Several tourist sites, including the Saint Kitts Scenic Railway and the Brimstone Hill Fortress, are located there. The Hamilton Museum is located on Nevis, as the island is the birthplace of Alexander Hamilton, one of the founding fathers of the United States

Saint Kitts and Nevis is developing new hotels in anticipation of more tourists. Prime Minister Timothy Harris of Saint Kitts has outlined a varied hotel complex that is nearing construction. The Trinity Sunset Shores, Seaview Hotel and Hillsborough Suites Hotel are among these buildings, all of which will open in 2021.

Saint Kitts and Nevis’ Citizen by Investment Program (CBI), which began in 1984, is the world’s longest-running investment migration program. In exchange for contributing to the Sustainable Growth Fund, the program provides a haven for U.S. families. The income that the fund creates goes toward assisting many aspects of society, such as tourism and healthcare. Winston Crooke feels the film industry will aid in increasing interest in the CBI program. “There’s no such thing as bad publicity, and [filming movies in Nevis] is great publicity. I think what [MSR Media has] done is showcase not only [the island] but also what Saint Kitts and Nevis can offer to small companies,” he said.

The Acting Academy

One of the MSR Media team’s goals is to teach individuals from Saint Kitts and Nevis the skill of creating films. On February 22, 2021, the Acting Academy opened its doors. Phillipe Martinez, MSR Media’s Chief Producer and Director, and Winston Crooke, now an acting coach, lead the academy. The Nevis Performing Arts Center hosts the Acting Academy. Aspiring performers will take evening lessons twice a week, from 6 p.m. to 9 p.m. on Mondays and Wednesdays. “The Acting Academy is about developing whatever skill sets [locals] have, nurturing [those skills] and owning them,” said Winston Crooke. All classes at the academy are free.

Future of the Film Industry

The film industry in Saint Kitts and Nevis has a bright future. MSR Media is currently working on projects including A Week in Paradise, Assailant and One Year Off in Saint Kitts and Nevis. “The most important thing is to help develop these other people [or] youngsters and so on in the film industry so they will carry on and develop the market. And I also want to thank MSR Media, Philippe Martinez and the production company for being bold enough to look at Nevis Island in the way that they have and give us this fabulous opportunity,” expressed Winston Crooke.

– Tiara Tyson
Photo: Flickr

Rwanda’s Ecotourism IndustryThe Rwandan genocide in 1994 was a national tragedy resulting in an estimated 800,000 deaths in a period of 100 days. However, 27 years after the massacre, the small, landlocked nation of 12 million people is thriving. A mix of social and political factors has contributed to a thriving nation. Rwanda’s ecotourism industry also plays a significant role in alleviating national poverty.

A Closer Look at Rwanda

Over the past quarter-century, Rwanda changed its course, moving positively toward economic growth and increased prosperity. According to the World Bank, poverty in Rwanda declined substantially from 2001 to 2017, dropping from 77% to 55%. Since 1994, Rwanda has maintained political stability. Stability allowed the country to develop a cost-free and compulsory primary education system with “one of the highest primary enrollment” rates in sub-Saharan Africa.

The country instituted a universal healthcare program and made great strides in legislative gender equality. In 2019, women made up 61% of Rwanda’s parliament. The percentage of female parliamentary representation is substantially greater than most western democracies. Continued economic and social growth is necessary in order to continue poverty reduction progress.

The Role of Rwanda’s Ecotourism Industry

The International Ecotourism Society (TIES) defines ecotourism as “responsible travel to natural areas that conserves the environment, sustains the well-being of the local people and involves interpretation and education.” Ecotourism can be a tool to unite communities, build environmental awareness and grow underdeveloped economies across the world. Over the past 27 years, Rwanda capitalized on this opportunity and created a growing ecotourism industry.

Tourists flock to Rwanda to wander through hiking trails in the country’s four national parks. Others are drawn specifically to the bamboo forests where visitors can see mountain gorillas, an endangered species, in their natural habitat. According to the United Nations Conference on Trade and Development (UNCTAD), Rwanda is one of the fastest-growing tourist destinations in the world. The tourism sector in Rwanda is “more than 80% nature-based,” indicating that ecotourism forms a substantial part of the tourism sector.

Tourism in Rwanda

Rwanda’s tourism sector experienced its highest annual growth in 2019, netting more than $498 million and attracting an estimated 1.63 million tourists. For the past seven years, “tourism has been ranked as the first foreign currency earner in Rwanda,” contributing 14.9% of Rwanda’s GDP in 2018.

Rwanda’s tourism sector has increased jobs and significantly contributes to the overall growth of the country’s economy. Tourism in Rwanda employs more than 3% of the labor force. For the Rwandan government, tourism is a critical tool for alleviating national poverty, explicit in both policy and poverty reduction strategies. Not only does tourism create jobs but the wealth generated from a booming tourism industry can help facilitate a country like Rwanda in its ability to access clean water, reliable energy and sanitation services.

“Africa’s tourism industry continues to flourish and supports more than 21 million jobs, and for the developing countries, tourism is an enormous tool for sustainable development,” says Mukhisa Kituyi, former secretary-general of UNCTAD.

How COVID-19 Impacts Rwanda

Pre-pandemic, Rwanda was experiencing an economic boom. In 2019, the economy grew by more than 10%, on its way to grow further in 2020. Instead, due to COVID-19, Rwanda’s economy shrank, with a projected decrease in GDP of 0.2%. As a result of COVID-19, the World Bank projected that poverty rates would increase by 5.1%, placing an additional 550,000 Rwandans in poverty in 2021. Overall unemployment rose from 13% in February 2020 to 22% in May 2020 and 60% of workers who remained employed saw significant salary decreases.

As the pandemic forced global recessions and travel restrictions, Rwanda’s ecotourism industry took a major hit. Tourism was expected to decrease by more than 70% worldwide in 2020. Rwanda’s finance minister, Uzziel Ndagijimana, confirmed that in March and April 2020, the tourism industry missed out on roughly $10 million in revenue.

The Road to Rwanda’s Recovery

Since reopening in the summer of 2019, Rwanda’s growing ecotourism industry shows signs of recovery. While international tourism rates are down, domestic tourism rates are up in comparison to past years. According to Rwanda’s leading daily newspaper, The New Times, increased domestic tourism is expected to restore a revenue sharing program where the Rwandan government will redistribute the earnings from domestic tourism to communities living in and around the visited national parks. This policy is likely to enhance the growing ecotourism sector and aid communities that have suffered economically throughout the pandemic.

-Zoe Tzanis
Photo: Flickr

Tourism, the advantages, disadvantages and how to improve the practice
Around the world, 44 countries rely on tourism for at least 15% of their workforce and national GDP. Many of these countries are island nations or countries that don’t have a highly developed economy or business sector. As the United Nation’s agency, the World Tourism Organization, states, increased tourism can boost developing countries’ local economies, cultural discussion and job opportunities. However, if developing nations solely depend on the tourism sector and dismiss infrastructure development and other essential services, the disadvantages of tourism can outweigh the advantages.

The Advantages

For developing countries, the advantages of tourism tend to be primarily monetary. A large scale tourism industry prevents larger, more harmful businesses from working off the land. Small tourist companies that reign on the land stops large capitalistic corporations from polluting the air or gentrifying people’s homes.

The tourism industry encompasses many different travel areas, which allows the majority of a country’s population to be employed. These employment places include hotels, car rental agencies, restaurants, tour companies, souvenir shops, and equipment shops, among others.

Profit earned from tourism can be reinvested into the country for better infrastructure, education, funding conservation efforts and creating more responsible ways of touring. Without tourism, many countries would not have the same level of access to education and infrastructure. Moreover, tourism allows hosts and visitors to share cultures and meet diverse groups of people. Through respectful interactions, a broader view of the world from both parties can be achieved. By reinvesting the money earned back into the country, tourism and its attractions can grow, creating a positive cycle for the country.

The Disadvantages

With the way the tourism industry is currently run, the disadvantages of tourism may greatly outweigh the advantages in a country. The first factor to take into consideration is environmental damage. When a country has a high tourist attraction, the number of people occupying a space increases immensely. As a result, the release of carbon monoxide gases can increase due to plane and car use affecting the country’s environment. Many countries with ancient ruins or natural attractions are also in danger of destruction or erosion with significant foot traffic and human interaction. Additionally, flora and fauna can decrease in areas or change their growth and migration patterns when there is an overflow of humans interact. Foot traffic and continuous touching can also slowly degrade the stability of ancient structures.

One of the advantages breached upon the sharing of cultures. While this is a great interaction of beliefs and customs, it can become destructive to a host country’s culture. One of the ways cultures can be disrespected is through the commercialization of countries’ cultures. When tourism booms, large industries swoop in and sell figures of the cultures’ icons or traditional wear, disrespecting the countries’ indigenous beliefs and can be harmful to the people living there. Moreover, poor behavior from tourists who don’t respect the spoken or unspoken codes of conduct held by indigenous peoples also undermines the sacred beliefs held within the country.

Also, for many countries, tourism is a seasonal occurrence. For people that work in the tourism industry, their jobs are only viable for a certain number of months, and after the season has ended, many are left without income. Many of these jobs also lack the benefits that other sector jobs supply. Tourism workers are often left without insurance or pension. Not to mention, foreign businesses tend to overtake the companies present in these countries, forcing small businesses to shut down. As a result, foreign businesses keep the majority of profits from tourism, while local businesses lose their income. This hurts small businesses and local economies.

As previously stated, the profit gained from tourism is often reinvested into the industry. However, with unequal infrastructure development, the tourism industry can inadvertently sustain itself without aiding a country’s other vital sectors. As such, many countries end up developing tourism hot spots while the rest of the country suffers. In these countries, there are visible socioeconomic gaps between the wealthy and the poor. Focusing mainly on the tourism industry and places of mass attraction leaves disadvantaged communities at risk of financial instability. Moreover, countries solely invested in tourism are vulnerable to quick economic falls as its working sectors are unevenly balanced. If a natural disaster, political unrest or unprecedented pandemic were to strike, the country would lose a massive income, causing an economic recession that some countries may significantly struggle to bounce back from.

Ways to Respectfully Travel

The most important step to being a respectful tourist is to be an educated tourist. Understanding and respecting the culture and the people of the country is vital. By not undermining tourism countries’ culture and beliefs, the people living there will be more welcoming to tourists, and cultures can flourish without fear of commercialization.

Being environmentally conscious is also important to the survival of these countries. Respecting a country’s land and structures preserve the countries’ beauty and keep the land clean and prepped for further development. Many countries are more environmentally strained, so reducing pollution or your carbon footprint in a foreign country can help ease the strain.

Supporting the small and local businesses found in these countries can help keep local communities employed and support the overall economy.  As local businesses grow, more people will have the opportunity to be employed outside of the tourism sector, and the economy will be able to grow within itself.

By learning the advantages and disadvantages of tourism, and how one can improve the practice of traveling, the tourism industry will be able to change for the better and support the countries that host people from all over the world.

– Marlee Ingram
Photo: Flickr

Ecotourism Alleviates Poverty in NepalNepal is a small country located between India and China, two of the world’s most powerful nations. Substantial foreign aid is allocated to fighting poverty in Nepal. However, inefficient governments prevent these benefits from reaching the people: one-fourth of Nepalis are living in poverty. Nepal, the birthplace of the Buddha and home to Mount Everest, also has 848 bird species, 600 plant families and over 100 ethnic groups speaking 90 languages. Despite its ineffective leadership, Nepal’s lush natural environment has created a flourishing ecotourism industry providing business and conservation to the region. By fostering this market, ecotourism alleviates poverty in Nepal and improves life for thousands of the country’s residents.

What is Ecotourism?

According to The International Ecotourism Society, ecotourism is defined as “responsible travel to natural areas that conserves the environment, sustains the well-being of the local people and involves interpretation and education.” This definition encompasses aspects from human-environment relationships to understanding landscapes, maintaining species and learning about local cultures.

Whether zoos are to be considered a form of ecotourism has been widely debated. Despite the potential for educational value, practices of capturing and confining wildlife are not considered ecotourism. Wildlife should not endure any suffering from human interactions, and the interest of the animals should be prioritized over humans. Ecotourism allows animals to live independently of human contact, a condition impossible to replicate in zoos.

Environmental Impact

Community-based ecotourism has been immensely successful in Nepal, especially for its rural areas. Due to sparse government regulations, the general tourism industry employs cheap yet harmful practices that have exacerbated poverty in Nepal. Thus, it has become necessary for the country to consider alternative methods of attracting revenue through tourism. With this goal in mind, Nepal has adopted the homestay model of ecotourism.

The primary goal of the homestay industry is to develop economic resilience in rural areas that can work with the environment rather than against it. This cooperation eliminates the need for large infrastructure to accommodate tourists as well as protects the environment from destruction. In a developing country like Nepal, the value of these outcomes is substantial. This system allows community members to become more involved in local tourism. Locals provide lodging, cultural education and history for compensation.

The ecotourism initiative has proven to be fruitful: of the 1.2 million tourists that visited Nepal in 2018, the majority explored natural areas. Across the country, 484 homestay houses are registered around natural sites like Chitwan National Park. These establishments also encourage the improvement of sanitation facilities like clean toilets, filtered water and pollution-free air, which are crucial to reducing poverty in Nepal.

From these homestays, tourists can travel to various nearby sites. At these sites, they can engage in activities including hiking, mountaineering, cultural immersion and rafting. These efforts propel afforestation projects and preserve biodiversity by preventing forest conversion. Community-based ecotourism has kept ancient cultures alive, protected the environment and provided economic and cultural stability to local communities.

Economic Impact

Oftentimes, the environment and the economy are thought of as mutually exclusive; however, ecotourism in Nepal has challenged this mindset. Ecotourism contributes to about 4% of Nepal’s total GDP and provides varying forms of employment to about 200,000 people. These opportunities are growing for people like Pratiksha Chaudhary, who runs a homestay in the village of Dalla near Bardia National Park.

The thirty-three-year-old reflects on her initially timid nature when she began hosting guests, concerned that her rooms were not clean enough or that her food was not good enough. However, after a decade in the business, Chaudhary has found confidence in herself and in her work. She can now afford home renovations and has added two bigger rooms, tiled flooring and hot water. These additions help her remain competitive in her village’s ecotourism industry, which has experienced a doubling of homestays in the last decade. Through the income she earns, Chaudhary can also provide her son a quality education and protect her natural environment.

Protected areas across the country have created a substantial decrease in inequality and poverty in Nepal. Studies found increasing the number of protected areas in Village Development Committees from 10% to 70% led to increased prosperity for those villages. Additionally, protected areas with high tourism rates reduced the overall poverty rate, demonstrating that ecotourism alleviates poverty in Nepal.

The social and economic benefits of ecotourism do not stop there. In a study of homestays operators in Nepal, 83% reported feeling empowered. Additionally, 88% reported improving their lifestyle after opening their business. The local and tourist support these owners receive has also enabled them to maintain their cultural identities, adding further intrinsic benefit to the homestay field. These positive outcomes challenge the assumption that ecotourism only benefits the elite: data shows that homestays offer potential paths out of poverty for even the most remote villages in Nepal.

The Future of Ecotourism in Nepal

Ecotourism provides great potential for entrepreneurship and economic resilience that will ultimately help combat poverty in Nepal, especially for women. Qualitative data from a 2017 study shows that women tend to be more self-confident, financially independent and better educated in family decision-making when involved in homestay businesses.

Ecotourism and homestays have proven to be effective steps in boosting local economies and involving remote villages. However, establishing completely eliminating poverty in Nepal will require assistance from governments through policy. By expanding the availability of tools for conservation efforts and using ecotourism as an aid for other sectors like agritourism and transportation, the government could boost the economy and reach more people sustainably. As an industry, ecotourism alleviates poverty in Nepal and serves as a role model for developing countries pursuing similar endeavors.

– Mizla Shrestha
Photo: NeedPix

Tourism's Impact on Reducing Poverty
Within the past decade, international travel to developing countries has risen substantially. Countries like Tanzania and Indonesia have benefited from a surge in tourism. Moreover, research postulates that this will improve economic growth in developing countries. Economic developments in these countries are essential for stable socioeconomic growth. Tourism’s impact on reducing poverty within developing nations will be addressed in this article. However, the tourism industries in these countries promote more than just income generation — also, stability, opportunities in local communities, employment and cultural prosperity.

Advantages

In 46 of the 49 least developed nations (nearly 94%), tourism has become one of the primary sources of economic income. Moreover, in some countries, this results in 25% of GDP. The total contribution of tourism in 2019 generated roughly $9.2 billion, with direct contributions globally generating nearly $2.8 billion. The income generated in these countries can provide further support to local communities and the overall infrastructure and revenue of developing countries.

The tourism industry offers excellent advantages for socioeconomic growth and poverty alleviation. One of the most significant factors is employment. Many individuals living in developing countries lack the education and opportunity for high-paying, skilled jobs. Jobs within the tourism industry, such as food, conservation and hospitality require lower skill levels. Therefore, allowing for expanded employment opportunities. In these ways, tourism’s impact on reducing poverty is both positive and significant.

Disadvantages

The tourism industry can certainly promote nations, effectively raising their global profile and allowing for even more tourism. However, it can also allow for environmental damage, such as pollution, littering, resource depletion or loss of natural habitats due to the massive increase in visitors. In this same vein, roughly 40 million Americans traveled internationally in 2019. Yet, alternatively, it should be noted that tourism can potentially provide funding for conservation and create incentives to preserve natural areas. This occurs in both urban and rural environments to regenerate the areas.

Infrastructure such as roads, airports, hotels and other tourism services may fail to keep up with the estimated tourist projections of an “additional 400 million arrivals forecasted in 2030.” Infrastructure’s crucial role in tourism is in the amenities that these countries can provide for visitors. Although, with tourist arrivals already surpassing projections by 2017, some countries may struggle to progress and uphold their “infrastructure readiness” quickly enough.

Tanzania and Indonesia: Success Stories

Tanzania, located in sub-Saharan Africa, has become a significant tourist attraction within the past couple of years. Due to its rich culture and conservation, Tanzania has become a highly desirable destination. The nation accounted for 1.28 million tourist arrivals in 2016 alone. With this rise, Tanzania’s GDP of 4.7% is directly linked to tourism and travel expenditures. Furthermore, the country increased investments by 8.7% ($1.2 billion) and “export earnings,” generating $2.5 billion in revenue. These earnings dramatically impacted job opportunities, a significant variable in alleviating poverty. E.g., the increased investments employed 470,500 persons in the tourism and travel industry in 2016. Recent reports from the World Travel and Tourism Council (WTTC) expect the tourism and travel sector to continue to rise “6.6% annually in the next 10 years.”

Indonesia has also created a profitable tourism and travel industry. Striving to improve income inequality and alleviate poverty through tourism has proven to be a successful initiative. A study conducted by LPEM FEB UI, Universita Indonesia, shows that tourism activities have reduced the “depth of poverty from 2.04 to 1.21.” Along with this, severe poverty lessened in 2016 from 0.37 to 0.29. Additionally, the study also reveals that tourist activities offer more significant support within communities. For those living in regions with more prevalent tourist activity — the poverty rate is 1.5%–3.4% lower than regions that are not.

Continuing the Positive Impact

While the advantages do not necessarily outweigh the disadvantages — there are significant, positive results in promoting the travel and tourism industry in the highlighted regions above. With continued progress, countries such as Tanzania and Indonesia have made increasing strides in alleviating poverty. Tourism’s impact on reducing poverty represents a significant feat that will hopefully continue to yield positive results for the world.

– Allison Lloyd
Photo: Flickr

Tourism in Africa
Tourism has been a fundamental component of the African economy for years, with many countries depending on the industry as a primary source of revenue. In addition to supporting the economy directly through foreign currency, tourism in Africa has become a reliable source of income for many locals. Some of these individuals work as tour guides, while others own tourism-dependent businesses like hotels and cultural craft shops. As a result of the COVID-19 pandemic, the tourism industry has changed dramatically over the past year.

Economic Shifts

The World Bank reported that, in 2012, tourism in Sub-Saharan Africa (SSA) contributed $36 billion to the region’s GDP. The report also indicated that many countries in SSA were still working to develop their tourism facilities. Since 2012, these countries have improved security and provided better quality resources to attract tourists and tourism investors. However, COVID-19 disturbed this progress. Many countries established touristic travel bans to fight the pandemic, and many visitor attractions had to close. In total, the World Travel and Tourism Council has predicted that Africa’s resulting GDP loss could be $52.8 billion.

Unemployment

COVID-19 terminated many jobs, including tourism-related occupations like travel agencies and small businesses. The World Bank has reported that “one in twenty jobs in SSA is in travel and tourism.” According to a recent study from the African Union, an estimate of 2 million jobs directly or indirectly related to travel and tourism will disappear during the pandemic. These losses will affect all citizens in this region. For example, consumers will experience increased prices on commodities and higher taxes to compensate for the loss of tourism revenue.

Finding Solutions

However, countries typically reliant on tourism for economic stability are finding creative ways to adapt to the changes.

Many countries had no choice but to close borders in order to control the entrance and spread of COVID-19. Various policies implemented now encourage people to observe social distancing and wear masks in public places. To promote the industry amidst these new safety guidelines, the U.N. reported that Kenya and Zambia encouraged domestic tourism in the absence of foreign visitors. South Africa has donated approximately $11 million in relief aid to eligible tourism-related businesses, and the International Trade Centre reported that young Gambians who worked in community tourism became “COVID-19 first responders to awareness and prevention.”

These initiatives have helped people gain some income and retain access to basic needs. Additionally, countries have been conducting virtual tours in parks to continue engaging international tourists and increase chances of visitation following the pandemic. BBC reported that Kenya, Seychelles and Rwanda would open in August 2020 for international travelers; however, tourists would have to undergo different procedures to gain safe access to hotels and touristic sites.

Many African countries greatly profit from the tourism industry. This industry has been rapidly growing in Africa. In fact, the continent expected a consistent increase in the number of incoming international visitors over the next several years. However, in response to the recent surge of COVID-19, the continent is adapting to creatively compensate for these changes and continue protecting citizens’ health and safety.

– Renova Uwingabire
Photo: Flickr

Ecotourism in Costa Rica
Costa Rica is notable for having a stronger democracy than the United States and being the least impoverished nation in Central America. Twenty-five percent of the country is national parks – some might say that leaving all that land unfarmed means losing productivity. The national parks also contain untouched forests, which create economic incentives to develop that land into a pasture or city. However, since it is doing better than its neighbors at economic and social development, there must be some other reason Costa Rica is successful. A large part of that answer is the amount of ecotourism in Costa Rica.

History of Ecotourism

Ecotourism in Costa Rica started in the 1960s when only 25% of the once entirely forested country remained untouched. Entrepreneurs were curious about how the country could preserve the forest in a way that earned more money than logging it. They built lodging near newly-founded parks and worked with foreign retailers such as Any Mountain to make specialized outdoor gear to handle the terrain. Entrepreneurs also encouraged the government to produce web pages that emphasize the positive environmental impacts of ecotourism.

Benefits of Ecotourism

As a result of these investments, Costa Rica attracted 3.14 million tourists in 2019. The direct and indirect benefits of these tourists are:

  1. Money: Costa Rica earned $3.4 billion in just one year— around 5% of the country’s GDP—due to visitor spending. That money can increase the number of people in the middle class and help Costa Ricans avoid the poverty that affects neighboring countries.
  2. Sustainability: If Costa Rica’s businesses decided to use the remaining 25% of the forests for lumber, there would be none left now. Ecotourism can exist as a source of income indefinitely. In the long run, that can create lasting prosperity and health for the citizens of the country.
  3. Protected Biodiversity: Places closest to the equator like Costa Rica contain the most species per unit area. Those species have the potential to cure diseases. They act as a harbor of life in the developed world where many are going extinct.
  4. Proof of Concept: Costa Rica was one of the first countries that had visitors to admire ecological, not historical, sites. People first created the term ecotourism, then, to describe the focus of the visitors. Many places in Africa such as Rwanda, the Democratic Republic of Congo and Benin established national parks in an attempt to reap the same rewards as Costa Rica.

The Future of Ecotourism

Ecotourism in Costa Rica and in other parts of the world is a way to satisfy both the ecological and economical needs of people. This leads to stable and robust governments that can stand up to disturbances like natural disasters. They can also serve their constituents better by preventing vast swaths of the population from sliding into poverty.

That is not to say that it is a perfect solution. Historically, leaders have uprooted indigenous communities to make the parks for ecotourism. Other sectors like Costa Rica’s computer parts manufacturing can use it as a false front to justify unnecessary pollution. Diseases like COVID-19 can reduce traffic, leaving many without jobs. However, under normal circumstances, the positives outweigh the negatives. Countries around the world should at least consider integrating ecotourism into their economies and the lives of their citizens.

– Michael Straus
Photo: Flickr

Tourism in Bhutan
The curious case of Bhutan has puzzled social and economic scholars for decades. In 1972, the king of Bhutan, King Jigme Singye Wangchuck, declared that Gross National Happiness (GNH) was more important than Gross Domestic Product (GDP). It is the first and only country in the world to use GNH as a measure of socio-economic development rather than GDP. Bhutan conducts measurements by evaluating nine domains.

Nine Domains of Gross National Happiness:

  • Psychological Well-being
  • Health
  • Education
  • Time Use
  • Cultural Diversity and Resilience
  • Good Governance
  • Community Vitality
  • Living Standards
  • Ecological Diversity and Resilience

The last domain listed above (Ecological Diversity and Resilience) has been the cornerstone of Bhutanese Buddhist ideology for centuries. As such, the Bhutanese government has devoted a large portion of its policy agenda toward the conservation of native wildlife. It is the only country in Asia to have over 50 percent of its natural land guaranteed preservation at all times under its constitution. However, with the recent democratization of the country in 2007 and the subsequent onset of globalization, the young generation that makes up over 60 percent of the population would rather “spend time in front of televisions… instead of at the Buddhist temples or in the forests.”

Youth and Urbanization

The more technological interests of the new generation have sparked concern among the traditional older generation in Bhutan. The youth are moving to the cities in droves and will likely live their lives more disconnected from nature and religion than previous generations. As of 2017, 48.7 percent of the population born in rural areas had migrated to cities in search of education, jobs and a more modern lifestyle. Most of these domestic migrants are between the ages of 25 and 29.

Some expect more rapid urbanization to take place due to this large and sudden influx of people to Bhutanese cities. If the rate of movement remains consistent, Bhutan will have to more than double the amount of land available for urban expansion to have adequate housing to accommodate the influx. Along with housing, Bhutan will also have to expand sanitation facilities, electrical infrastructure, transportation infrastructure, public transit and education facilities. These are factors that many Southeast Asian countries have struggled to expand sustainably. However, this does not mean that environmental factors will become obsolete in order to make these developments.

 Tourism in Bhutan

Tourism is one of Bhutan’s largest industries and it is still growing. According to the Bhutan Tourism Monitor from 2016 to 2017, the country experienced a 22 percent growth in tourist arrivals. Tourism generally sparks an increase in globalization in countries that have largely disconnected from international developments, such as modernization, especially among the youth. As tourism ramps up, cities begin to develop more to entice and accommodate additional tourists. This also creates more jobs and draws in domestic migrants from the countryside, just as Bhutan is experiencing now. However, the cities are not the only attraction for tourists. Tourism in Bhutan consists mainly of ecotourism – people want to experience the beauty of Bhutan’s preserved countryside. Tourism in Bhutan is prompting greater urbanization and interest in modern amenities among the youth; however, it also emphasizes the importance of environmental preservation to Bhutan’s economy.

 Improvements in Rural Communities 

Bhutan has implemented the Remote Rural Communities Development Project (RRCDP) in order to lessen the negative impacts of the youth’s migration to cities. This project “promotes the increase of agricultural productivity development of communities’ access to markets, irrigation, agricultural technologies and community infrastructure” in Bhutan’s six most remote districts. Completed in May 2018, this project has provided roads to communities that have never had them before. The roads give these communities better access to health facilities, schools and markets. Farmers are now able to use trucks to transport their goods rather than walking for days to the nearest market. This development has also contributed to the empowerment of women as a byproduct. Some women, who have never been able to make a single-day trip to the market, are even learning how to drive.

Placing greater importance on the accessibility of rural communities may be a solution to the drain of the countryside. By providing access to more modern comforts like roads and markets, the youth may be less hasty to move to the city. Greater access to these communities also helps tourism in Bhutan and creates more jobs in the countryside. The country is building more retreats and farms are expanding the variety of crops. Nonprofits like the World Wildlife Fund are working with the Bhutanese government to better fund advertising for tourism in Bhutan and make it easier for tourists to access the countryside.

Graham Gordon
Photo: Pixabay

New Business Opportunities in Micronesia
The Federated States of Micronesia is a 600-island nation in the Pacific Ocean where 40 percent of the population lived in poverty as of 2014 and 32 out of 1,000 children died before the age of 5 as of 2017. Micronesia is heavily reliant on U.S. aid since the nation’s independence in 1986, but many expect it to end by 2023 as the country struggles with unemployment, over-reliance on fishing and a stagnant local business sector with uncertainty looming. Micronesia’s private sector will need a significant boost when aid from the U.S. comes to an end. Opening new business opportunities in Micronesia, specifically at the local level, is a priority the Pacific island nation needs to capitalize on.

Connecting Micronesia

The rise of the internet has been an important business driver for the private sectors for many nations. Micronesia has been tackling a project to expand the country’s own servers both locally and globally. The Pacific Regional Connectivity Project by the World Bank is a long-term project that will not only connect Micronesia with its neighbors Palau, Nauru and Kiribati via a fiber network, but also allows Micronesia to open and regulate the market to allow the private to build and improve domestic businesses that the current satellite connections would not be able to bring. The building of the lines to improve networking and connections is a pivotal investment to increase the domestic business sector to boost the local economy. Exploiting the internet is an important objective for opening new business opportunities in Micronesia and evolve the local marketplace.

Tourism Sector in Micronesia

Improving the tourism sector is also a priority Micronesia should exploit to bolster its economy. Neighboring countries such as Palau, Nauru and the Northern Marina Islands, a U.S. territory, have strong connections to various Asian countries to allow easier access to their respective areas of interest, which Micronesia also currently relies on if falling short. States within Micronesia have taken steps to rectify the tourism concern, such as when Yap made a controversial deal with the Chinese development company Exhibition & Travel Group in 2011 to develop tourist destinations 1,000 acres across the state. Meanwhile, the Papua New Guinea-based airline Air Niugini established connections to Chuuk and Pohnpei, Micronesia in 2016 and increased flight capacity in 2017.

Fishing Sector in Micronesia

While Micronesia has been improving its tourism sector, it has also made deals with countries outside of the U.S. to bolster its fishing sector which has been in major need of development. Focusing on the regional neighbors has been a major step in that development. As an island nation, fishing is one of Micronesia’s main economic sources, however, there have been concerns about its long-term reliability, and thus, the country’s management of resources has become necessary. Chuuk has size-based policies to control and maintain fish populations during appropriate seasons, balancing the marketplace and keeping fish populations at sustainable levels. Micronesia also began a transparency program in its tuna fishing sector in 2018, a measure to monitor and sustain the tuna population for both local and international marketplaces. Fishing is an important asset for Micronesia; maintaining the population levels of various species including tuna is a priority the country be paying attention to for years to come.

Opening new business opportunities in Micronesia requires the country to branch out from the guiding hand of the U.S. and beseech nearby neighbors to bolster the local economy. Micronesia also expects to sustain its local fish populations to enhance the markets both locally and internationally. While the steps have been small, the Federated States of Micronesia has made the necessary moves in the event that the United States end its aid in 2023.

Henry Elliott
Photo: Flickr