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

 

 

Tourism Sector in Timor-Leste Oil accounts for 90 percent of Timor-Leste’s government revenue, but since 2017 the government has focused on diversifying the economy, attracting investors and developing its rising tourism industry. The small island country gained independence in 1999 and reduced its poverty rate from 50.4 percent in 2007 to 41 percent in 2014. It plans to develop the tourism sector in Timor-Leste in order to attract new visitors, increase revenue

and add jobs. USAID, Chemonics and private investors are seeing economic opportunity in the emerging tourism sector.

Benefits of Tourism Industry Investments

The benefits of developing the tourism sector in Timor-Leste include job creation and increased revenue. Poverty-reduction policies, health care and improved education are possible uses of much-needed revenue to the developing economy. The government’s goal is to attract 200,000 annual international tourists by 2030, which would generate $150 million and add 15,000 local jobs. For reference, total revenue for Timor-Leste was $300 million in 2017. Chemonics is currently working with the government and USAID’s Tourism for All Project to develop Timor-Leste’s tourism industry.

Since the tourism sector in Timor-Leste is new, one task stated by Peter Semone, chief of party for the USAID Tourism for All Project, is to explain the benefits of tourism to Timorese that might object to the rising tourism industry, especially in terms of its environmental impact. Marine tourism, particularly on Atauro Island, is expected to flourish once the tourism industry is further developed. One priority is convincing wary Timorese that the rising tourism industry means increased revenue to the government or directly through selling services and/or products.

Achievements by USAID’s Tourism for All Project

The USAID Tourism for All Project began in January 2018 and is slated to end in January 2021. Its goal is to expand and improve the Timorese tourism industry using a comprehensive and sustainable approach. The project costs $9 million and its focus is directed towards two main areas: ensuring laws, institutions and policies are in place to implement the national tourism policy that began in 2017, providing sustainable private sector tourism investments and participation by Timorese communities and replicating successful models for future use.

There are five major achievements of the USAID Tourism for All Project. One accomplishment of USAID’s coordination with the government of Timor-Leste is the registration for a Mt. Ramelau Tourism Partnership that is currently in progress. Mt. Ramelau is a sacred mountain and major tourist attraction. USAID also facilitated the process of Atauro Island residents creating a vision, mission and tourism action plan for the next three years and began registration for the Tourism Partnership of Atauro. Atauro Island is the most marine biodiverse location in the world. USAID and Timor-Leste anticipates a booming ecotourism industry on the island.

Grants programs were also launched under the project to encourage tourism entrepreneurs to invest in targeted areas. One final achievement is the establishment of a working group involving the Secretary of State for Arts and Culture, UNESCO and local non-governmental organizations for conservation and preservation of tais, a hand-woven textile used to make scarves and bags. Tais was proposed for UNESCO Intangible Cultural Heritage recognition.

Future Economy of Timor-Leste

Semone stated that “tourism is the base to improve the service industry and the culture of service in the country. It is also an excellent factor to foster the development of a private sector of SMEs but also a way to raise environmental consciousness for locals.” With the help of Chemonics, USAID and other organizations, Timor-Leste’s tourism sector shows promise in reaching the goal of attracting 150,000 international tourists and adding 15,000 by 2030.

– Lucas Schmidt
Photo: Flickr

Decrease Poverty in Benin

Tourism is the second-fastest-growing industry in the world, but it is an untapped resource in many countries, including Benin. Benin is a small West African country and one of the poorest in Africa, but it does have one of the best wildlife reserves in West Africa. As a result, the country has exceptional tourism potential, which can help decrease poverty in Benin. However, protecting its wildlife is essential to achieving that goal.

Benin’s Potential for Tourism

Around 40 percent of Benin’s population lives in poverty. Tourism can thus help because it does not only increase gross domestic product. According to the World Bank, Benin’s natural landscapes and cultural attractions give them an advantage by both creating jobs across a range of skill sets and opening new markets for various businesses and entrepreneurs. This helps decrease poverty in Benin by further developing the country and generating shared wealth.

However, tourism and national parks in Africa are nearly symbiotic. Poaching doesn’t just threaten wildlife, it threatens tourism. Popular tourist destinations and National Parks in Africa tend to be East African countries, such as Tanzania’s Serengeti or Botswana’s Kalahari Desert. Botswana’s tourism sector makes up 8.9 percent of the country’s job market, creating 84,000 jobs, and generating $2.52 billion in 2018. Benin has one of the highest conservation land ratios in Africa, but Benin’s Pendjari National Park is one of the last intact and richest wildlife reserves in West Africa.

The park is home to lions, elephants and leopards as well as endangered species, such as the giant pangolin, African wild dogs and the Jabiru Senegal. However, tourism in Benin accounts for only 0.7 percent of the country’s GDP, generating well below its potential at $197 million, and making up 5.6 percent of the job market. Instead, Benin’s economy relies on agriculture, accounting for 26.1 percent of the country’s GDP, although the weather in Benin can be unpredictable.

Plans to Expand Tourism

To expand economic development and decrease poverty in Benin, the Beninese government started the Government Action Program (GAP) in 2016 and passed a public-private partnership law in 2017 to attract foreign investors. The goal is to improve infrastructure, education, agriculture and tourism. Through seven major tourism projects under GAP, Benin plans to increase its tourism GDP to 10 percent by 2021. One project includes protecting and rehabilitating Pendjari Park.

In partnership with African Parks, a nongovernmental organization that manages 11 national parks and reserves in eight African countries, the Beninese government plans to double the wildlife population in Pendjari Park and increase the average six-thousand visitors to nine thousand, but the task is only possible if Benin can protect its wildlife from poachers.

Canine Heroes

Throughout West Africa, poachers kill rhinos, pangolins and elephants to smuggle to Asian and European markets. This is where canines play a vital role in combating poaching and therefore protecting wildlife, tourism and the economy to decrease poverty in Benin.

In Tanzania, tracker dogs are used to combat poaching by finding wounded animals and tracking down poachers. Botswana has been a prime example of wildlife conservation, winning the war against poachers with their Canines for Conservation program and some of the harshest anti-poaching laws, which helped mitigate elephant losses seen in neighboring countries. Elephants from Angola, Namibia and Zambia were seen retreating to Botswana for safety, but when the government disarmed anti-poaching units in 2018, the country lost 87 elephants and five white rhinos to poachers just months later. Poaching in Botswana has been on the rise ever since, not only threatening wildlife but potentially tourism in Botswana.

One of the biggest animal welfare and conservation charities, the International Fund for Animal Welfare (IFAW), helped establish the Sniffer Dog Project in Benin to help stop poaching in Benin. These dogs are trained to detect animal parts at prime smuggling locations, such as airports, border crossings and the border of protected habitats. Before IFAW, there were no established dog detection training programs in West Africa; now there are eight canine detection units.

In January 2018, African Parks, National Geographic, the Beninese Government and the Wyss Foundation—a charity dedicated to protecting natural habitats—invested $23.4 million to protect Pendjari Park. Because of the vast potential of Benin’s tourism industry, decreasing poverty in Benin lies not only in agriculture, education and technology, but its rich history, iconic landscapes and wildlife.

– Emma Uk
Photo: Google Images

 

Growth in the Dominican Republic

The Dominican Republic, a Caribbean nation of 10.77 million people, shares the island of Hispaniola with Haiti and is primarily known for its beautiful beaches and resorts. With a 13.5 percent youth unemployment rate in the country, these resorts provide necessary jobs, economic stimulation and growth in the Dominican Republic. Despite the recent negative media attention, the growth of resorts shows no sign of stopping. Four new resorts opening in late 2019 and 2020 will continue adding to the burgeoning tourist industry, increasing numbers of workers in the service sector and establish mutually beneficial U.S. and Dominican exchanges.

The Pillar of Tourism

According to the Canadian Trade Commissioner Service, the tourism industry is one of the “four pillars” of the Dominican economy. It forms 7.9 percent of the economy. Growth in the Dominican Republic focuses on projects encouraging tourists to spend more money. There are already 65 such projects approved by the Dominican Republic Ministry of Tourism for 2019.

Speedy development will continue the trend of success in the tourism sector. The Dominican Republic Association for Hotels and Tourism statistics for 2018 displayed a 6.2 percent increase in the sector, which now makes up 20 percent of Caribbean trips. There was also a six percent increase in hotel rooms, and people filled 77 percent of total rooms. Overall, the industry reaped immense revenues of $7.2 billion in 2017. Tourism’s success contributes to GDP growth. The University of Denver predicts $89.54 billion in 2019, and GDP rising to $161.4 billion by 2030.

More Rooms, More Jobs

New resorts will extend the tourism industry’s prosperity by increasing the amount of occupied rooms and the jobs required to service visitors. The World Bank reported that the Dominican labor force was 4,952,136 workers in 2018, up from 3,911,218 only eight years before. Service sector workers made up 61.4 percent in 2017, illustrating the prominent role tourism and related industries play for the growth of the Dominican Republic. Here are four vacation spots heating up employment progress in late 2019 and 2020:

Grand Fiesta Americana Punta Cana Los Corales: This resort, owned by the Mexican Company Posadas, will have 558 rooms and various amenities necessitating more staff. The Director-General of Posadas, José Carlos Azcárraga, expressed hopes that the new resort will aid one of the fastest-growing Caribbean economies. The Dominican president visited the cornerstone to show his support. The resort opens in late 2019.

Hyatt Ziva Cap Cana: This American-owned Playa Hotels and Resorts brand also had a groundbreaking ceremony attended by the Dominican president. There will be 750 rooms requiring staff attention, alongside the various dining and fitness services provided. It opens in November 2019.

Club Med Michès Playa Esmeralda: This newest edition to Club Med’s resort collection will be an eco-friendly environment with four separate “villages” for new employees to manage. In an email to The Borgen Project, Club Med stated it will hire more than 440 Dominicans and help lead vocational training for approximately 1,000 locals to extend the resort’s positive impact. It opens in November 2019.

Dreams Resorts and Spas in El Macao: AMResorts, a subsidiary of the American-owned Apple Leisure Group, will have 500 rooms for the staff to manage. Bars, pools and a litany of eateries will require service sector employees as well. It opens in 2020.

A Vacation for Two

The development of new resorts is mutually beneficial for both the U.S. and the Dominican Republic. The island nation’s tourism is highly dependent on American visitors, who formed 33.85 percent of guests in 2013. The Dominican Embassy reported that individual tourists spent $1,055 on average in the same year. Americans received a pleasant vacation in exchange for growth in the Dominican Republic.

Two of the above resorts are branded by American companies as well. Their earnings not only benefit the Dominican economy but also benefit the American economy. Resort companies are part of a larger exchange where 53 percent of 2017 Dominican trade was with the U.S.. The Canadian Trade Commissioner Service found that the Dominican Republic imported 42 percent of its goods from the U.S. in the same year.

Unfortunately, the four new resorts will not solve all of the Dominican Republic’s problems. Poverty remains high at 30.5 percent, although it has dropped from 41.2 percent in 2013. However, new resorts contribute to this decrease by providing employment opportunities in one of the nation’s most lucrative sectors.

– Sean Galli
Photo: Flickr