Economic Growth in Madagascar
Despite Madagascar’s 74 percent poverty rate in 2019, the small African country has one of the fastest growth rates in the world. GDP growth hovered around 5 percent in 2018 and 2019 and projections determine that it will remain at that rate in 2020 and 2021. Public and private investments in infrastructure, mining, energy and tourism helped drive the country’s recent economic growth. However, poverty still remains high, especially in the more than 60 percent of the total population that works in agriculture. Increased economic growth in Madagascar is drawing international investors to open businesses in the country, creating jobs and stimulating further growth in the developing nation.

Current State of Business

The main industry in Madagascar is agriculture. About 80 percent of Malagasy work in agriculture and approximately 86 percent of that number are in poverty. In addition, the country relies heavily on vanilla exports. The African nation is the world’s largest vanilla producer. Transitioning out of agriculture and diversifying the economy could help spur development. In 2017, the Economic Development Board of Madagascar helped reform the business climate to encourage outside investors to expand to the country. This also entailed fighting against corruption and money laundering. With Madagascar improving the business environment, international businesses may see potential in expanding to the island nation.

International Mining

Mining is yet another area driving economic growth in Madagascar. Madagascar is rich in natural resources such as oil, gas and ilmenite. There are more than one million jobs related to mining in the country. Additionally, 30 percent of export revenue comes from mining. Madagascar is abundant in ilmenite, zirsill and monazite. Rio Tinto, an Anglo-Australian company, is one of the large-scale mining companies. About 90 percent of Rio Tinto’s employees in 2018 was Malagasy. Although mining tends to be part of land degradation, Rio Tinto agreed to restore wetlands and biodiversity to its previous state after it completes mining.

Tourism Growth Resulting in Hotel Developments

Tourism remains an important industry that helped increase economic growth in Madagascar. More than 250,000 people visit the country annually to bring in $748 million in tourism revenue. The tourism industry grew by 20 percent in 2016 alone. Hotel development is one growing sub-category that could potentially add jobs to locals, particularly those seeking higher pay than they receive in the agriculture industry. The Economic Development Board of Madagascar stated that 11 percent of total employment is related to tourism.

More than 70 percent of visitors to the country stay for two weeks or more, expressing the value these visitors place on the economy. International hotel chains took notice of the increased demand for hotels in Madagascar. Radisson Hotel Group planned two hotels and one apartment complex in the country in 2019. All three buildings should open in 2020. Marriott International is opening hotels in many African countries, and one country on its list is Madagascar. Hotel and tourism growth could promise more jobs to Malagasy.

Clean Energy for the Future

The energy sector has even greater importance than tourism. Only 15 percent have access to electricity, which is one main impediment to economic growth in Madagascar. This holds back the country due to energy being one foundation to a developed economy. Schools, hospitals and other buildings require power to function at their maximum potential. As a result, the government of Madagascar set its goal high with the challenge of attaining 70 percent of electricity access by 2030. The country is already making progress to reach this goal. The country’s largest employer, Groupe Filatex, is building four solar power plants that will generate 50 MW.

As of 2019, Madagascar’s total capacity was 500 MW. Groupe Filatex employs more than 15,000 people and will add more jobs in the future to meet the high demand. Lantoniaina Rasoloelison, Minister of Energy and Hydrocarbons, explained that the country’s energy policy for 2015-2030 supports the transition to the energy mix for electricity and lighting. This will include 80 percent of renewable resources.

Growth Ongoing

International investors such as Radisson Hotel Group and Marriott International took notice of economic growth in Madagascar within the last two years. Three sectors seeing growth in the country are tourism, mining and energy. Additionally, the government’s goal of increasing electrification is a good next step to growing the country into a developed economy with less poverty and increased livelihoods. The addition of more jobs to these industries could reduce poverty.

Lucas Schmidt
Photo: Flickr

Poverty in EgyptNearly one-third of Egyptians fall below the poverty line, with the unemployment rate trending higher than extremely impoverished countries such as Ghana, Lebanon and Zimbabwe. In 2011, lasting poverty rates and poor living conditions caused Egyptian retaliation against the government. Political instability has complicated Egypt’s foreign partnerships since that time, subsequently affecting all areas of the economy; as a result, foreign investment in the country’s resources has had notable fluctuations. The inconsistency in Egypt’s economy leaves few employment opportunities, especially among younger generations, inevitably affecting rates of poverty in Egypt.

Travel in Egypt

Typically, travelers visiting Egypt receive encouragement to exercise increased caution, per the U.S. Global Health Advisory. The country ranks two out of four on the U.S. Department of State’s safety scale; this rating indicates that the U.S. Department of State has approved travel there although tourists should recognize the possible risks. This system is not solely unique to the United States – many countries have similar regulations. However, due to the global impact of COVID-19, regular travel ratings are momentarily on hold.

Factors responsible for Egypt’s pre-pandemic, level-two status include levels of terrorism and lingering tensions with the U.S. Embassy. This score is an improvement from a travel rating of four in 2011. Egypt received this high rating during a violent national rebellion that broke out against police brutality, the poor economy and religious divides. When a country has a level-four rating, the U.S. Department of State tells Americans not to travel there.

Tourism’s Impact on Egypt’s Economy

In February 2019, research expert Amna Puri-Mirza provided a statistical analysis that demonstrated that a decline in tourism impacted the Egyptian economy. From 2010 to 2011, national profits from the tourist industry dropped 32 percent in reaction to the Egyptian rebellion. In 2015, news of a Russian airline crash that was traveling to Cairo decreased tourism from 14.7 million to 5.4 million people in 2016.

The connection between tourism and poverty in Egypt correlates with the market value of different services and goods that the country produces; profits from tourism hold a large percentage of the country’s overall income. In 2018, tourism supported 2.5 million jobs, indicating heavy reliance on the industry. When situations adversely impact tourism around the globe, this substantially impacts the economy, and in turn, poverty in Egypt.

Efforts to Reduce Poverty in Egypt

Working to ease economic stress, the Egyptian government succeeded in obtaining a loan from the International Monetary Fund in 2016. While there might be uncertainties for the future of the loan, it is certainly aiding the nation in the return of tourists. Research on Egypt’s travel and tourism show promising signs of continued recovery, according to the World Travel & Tourism Council. In 2019, Egypt’s tourism level improved by 16.5 percent from the previous year, which is higher than the global average. Such an incredible growth rate is a promising sign for the rates of poverty in Egypt.

Foreign Relations with the U.S.

Despite past tensions, the partnership between the U.S. and Egypt has greatly improved. The established relationship could substantially impact the state of poverty in Egypt. The Trump Administration announced a priority of aid for Egypt; specifically, it intends to provide economic reforms and military funds to combat radical terrorism in Egypt. “Our relationship has never been stronger. And we’re working with Egypt on many different fronts,” said President Trump. Upon continuing a solid relationship with the U.S., the Egyptian government could utilize the support in developing a sustainable economy post-loan.

Other Initiatives

Egyptian President El-Sisiis and his officials are also working on economic reform needed to reduce poverty in Egypt. Like many nations, the sudden 2020 Coronavirus outbreak presents additional obstacles in accomplishing this goal. Experts expect that Egypt’s tourism industry will lose more than 40,000 workers to unemployment as a result.

Now, more families will be at risk of falling into poverty, causing a heightened risk of exposure to COVID-19. On March 20, 2020, The World Bank Group donated $7.9 million to fund Egypt’s emergency response. The nonprofit is working with Egypt to create financial, technological and health strategies to protect citizens. Ideally, the country should be able to avoid the anticipated increase in poverty in Egypt through this aid. Assisting the Egyptian economy has become an international effort. Not only is does The World Bank intend for the aid to provide the government with resources, but it also intends to disperse it among Egypt’s citizens, especially those experiencing poverty in Egypt.

Tourism is a key source of income for the country but has recently halted. Additionally, tense international relations and a poor global image have further damaged the already struggling economy. Fortunately, new global partnerships with Egypt have aided in encouraging tourism in Egypt. While the 2020 pandemic puts this travel on hold, the response of increasing aid will support the economy and prevent further poverty in Egypt. If aid continues, Egypt will receive a great opportunity to sustain its economy and people.

GraceElise Van Valkenburg
Photo: Pixabay

surf tourism and povertySurf tourism is booming across the globe. Once the sport of wandering beach bums, it now generates $10 billion a year and will make its Olympic debut at the 2021 Summer Games in Japan. Despite the surf industry’s success, a few key issues have occurred between surf tourism and poverty.

Surf Tourism and Poverty

With popularity comes overcrowding, and beaches can only hold so many surfers without creating unsafe conditions. As a result, many first-world surfers are opting to spend the extra money to travel where population density is lower. Yet, behind these exotic destinations, locals are losing their homes and living in poverty.

Countries like Nicaragua, Papua New Guinea and El Salvador are particularly experiencing the negative effects of surf tourism. Fortunately, it doesn’t have to be this way. Through collaboration between governments, surf businesses, travelers and residents, surf tourism and poverty can be dealt with responsibly and bring much-needed economic stimulus to impoverished surf meccas.

Radical Changes

Nicaragua, one of Central America’s most impoverished countries, is an up and coming surfing destination. The nation sits between the Pacific Ocean and the Caribbean Sea, giving surfers an abundance of waves to choose from. However, social injustice and extreme poverty threatens Nicaragua’s budding surf tourism industry. In the past two years, a student-led uprising has been protesting against Nicaraguan President Daniel Ortega’s regime. Since then, the nation’s economy contracted by 10 percent, and foreign direct investment has fallen by 50 percent. Compared to 2017, the country’s tourism earnings have dropped 45 percent in 2020. Before the political turmoil, Nicaragua was predicted to become the next Costa Rica, but now the country is struggling to keep its head above water.

Hope lies in local Nicaraguan businesses persevering through the tough economic times. Local surfer Germán Sánchez opened a guest house in his hometown of Asseradores to cater to backpackers and surfers looking to score at a world-class beach break. The Boom Hostel is one of the few Nicaraguan-owned bed-and-breakfasts and is becoming a prime pit stop for travelers to surf, eat and lodge. This hostel provides access to amazing waves while supporting the local economy and community.

Surfing Sustainably

In Papua New Guinea, the Surfing Association of Papua New Guinea (SAPNG) has created the first-ever national surf management plan. One of the main goals of SAPNG’s plan is to “further social and economic development at the grassroots level” through the associated surf clubs of the SAPNG.

The Vanimo Surf Lodge is one of the affiliated village clubs responsible for upholding the plan’s tenets. Vanimo charges visitors 20 kinas ($8.50 USD) per day to surf the village’s reefs and beach breaks. The funds go to local landowners and stakeholders in the community. According to SAPNG, indigenous groups own the beaches and reefs and are responsible for maintaining them. The Vanimo Surf Lodge has been successful in raising funds for the community. With help from local leaders and Walu-International, it raised $17,000 to deliver working toilets to the village’s 1,500 residents. Unfortunately, land disputes, local reluctance and national corruption have prevented the public restrooms from being completed.

Waves of Empowerment

California State Governor Gavin Newsom recently visited El Salvador to market surfing tourism as a way to boost the developing nation’s economy. Newsom and other industry leaders met with president-elect Nayib Bukele to discuss El Salvador’s potential for becoming a beach vacation hub, similar to California. 

The U.S federal government has invested into El Salvador’s infrastructure through the Millenium Challenge Corporation (MCC). The MCC contributed $3 million last year to a $10.8 million project to develop a coastal area of the El Zonte region. California hopes to continue this trend of foreign aid by encouraging surf tourism development in the country.

After Newsom’s visit, President Nayib Bukele announced an initiative called “Surf City” to invest in beaches to attract more foreign interest to El Salvador. California’s tourism arm, Visit California, is considering working with El Salvador to help the country generate its economy with more tourist dollars. El Salvador is a wave-rich country ready to begin managing surf tourism and poverty. California’s guidance could help change the country’s reputation of a violent and poverty-stricken nation to a world-class surfing experience.

The Road Ahead

There are challenges in management and implementation for surf tourism. Many impoverished communities are abused by outsiders coming in to exploit their natural resources. Fortunately, surf tourism has the chance to be different. The fact that surfing can attract tourist dollars to better local economies is a great benefit for impoverished nations. Surf industry leaders building trust with local residents are laying the groundwork for a socially responsible model of surf tourism. Surfing and the business that follows it can give at-risk communities a stronger sense of identity and empowerment.

Henry Schrandt


Photo: Pixabay

Tourism in Peru
When thinking of tourism in Peru, one’s mind quickly turns to Lima and Machu Picchu, which are areas that tourists often visit due to their immense popularity. However, just miles away, local communities, such as Luquina Chico and the Cordillera Blanca mountain region, provide the same otherworldly experience, including magnificent sights, sounds, eats and more. With new varieties of tourism, including experiential and volunteer tourism in Peru, tourists can immerse themselves in the Peruvian culture outside of the immensely populated and toured areas while also providing economic benefit to the people.

Experiential Tourism with Homestays

About 80 percent of tourism in Peru consists of Turismo financial or experiential tourism. In this homestay option, families provide their homes to tourists to teach them about Peruvian culture by fully immersing them in it.

The community council facilitates all homestays in order to provide fair opportunities for economic benefit to all families. An area with homestays is Luquina Chico, a quaint community an hour and a half plane ride away from the regular tourist go-to, Lima, which resides on the edge of Lake Titicaca. To tourists, an experience in a Luquina homestay feels like full cultural immersion. To the communities and Peruvian families offering homestays, it feels like economic assistance and an entrance into Peru’s thriving tourism sector, symbolizing a well-developed system of exchange. For instance, while staying at a homestay, LA Times writer Thomas Curwen experienced the tranquility of the Luquina environment, as well as the Peruvian culture and food the Gutierrez family offered.

Host families benefit from receiving fantastic interactions with foreigners as well as monetary benefits when tourists pay for meals and nightly lodging. Such earned income provides a sustainable tourist economy for hosts, and also allows Luquina residents to work from home rather than having to migrate outwards to bring income in. It also provides the ability for Peruvian host families to undertake structural repairs to homes or new construction to build paths.

Volunteer Tourism

Volunteer tourism in Peru offers another immersive experience to tourists while also directly assisting individuals and communities with volunteer time, skills and energy. In this exchange, tourists experience Peru through skills exchange, which directly makes valuable contributions to communities in need. There is usually a contradicting image of tourists in poverty-stricken areas often overlooked in the face of vacation. Inspired by this, the owner of WWTrek, Dean Cardinale, found a sustainable way to give back. The organization does so by hosting treks across mountainous areas to provide community assistance for at least one day on the trip.

For 2020, treks include Peru’s Cordillera Blanca mountain range in Huaraz, with a stop in the village of Pashpa, for tourists to complete a computer community center. Such a project at completion will provide Internet access to 400 residents with 10 laptops and digital cameras and 500gb of new educational content, thus providing a significant impact to an otherwise remote area.

It is imperative for one to note that approximately 6.9 Peruvian individuals live in poverty, living on less than $105 U.S. a month. At the same time, Peru’s tourism industry contributes $19.6 million to the economy while providing 1.2 million residents with jobs. With such a huge impact, responsible tourism could positively impact the alleviation of poverty when considering the potential amount of people that could vacation responsibly. People often think of a vacation as a treat to themselves, however, homestays or volunteer experiences show that one’s presence in another country could be a treat to locals as well.

– Elizabeth Yusuff
Photo: Flickr

 

How Everest is Affecting NepalThe country of Nepal is often an afterthought to Mt. Everest, the mountaineering mecca of the world and the tallest peak. Unfortunately, tourism to Mt. Everest is affecting Nepal through the unstable economy it brings and sanitation concerns. The environment and the permanent residents of the mountain must be considered.

Tourism-based Economy

Throughout most of the cold war, Mt. Everest was closed on the Tibetan side and highly restricted within Nepal. Only climbers who were accompanied by scientists could climb. However, in 1993, the government relaxed the rules and regulations surrounding the mountain. Travel and adventure agencies began to crop up. They sell the dream, the ultimate bucket list item of summiting Everest.

Now, more than 7 percent of Nepal’s economy depends on the three months of March, April and May when people come from across the globe to take their shot at summiting one of the world’s seven wonders.  People from all across the world come to the region of Khumbu, located at the base of the mountain and home to the indigenous Sherpas. Between tourists and Nepali people coming from other areas to work, the population climbs from 40,000 to a staggering 700,000 people. However, this tourism-based economy is unstable and leaves many Nepali excluded from the enterprise.

Impact on Nepali People

Though this tourism boom has helped the Nepali government, its impact on the Nepali people is very isolated. The main benefactors are those connected to the few popular tourist attractions in the country, mainly Kathmandu and Everest. Tourism to Everest is Affecting Nepal. It is having a negative impact on sanitation in Khumbu. Climbers leave heaps of trash at camps, which becomes increasingly more difficult to remove as elevation rises. As the ice melts on the mountain, it washes the trash and human waste down into the villages bellow, creating an unsanitary environment and physical destruction from flooding.

However, despite these health and safety risks, the Nepali government has declined to stop tourism for any given time. While they have made some clean-up efforts throughout the past few years, sanitation continues to be an issue on the mountain and in the villages below.

Keeping the Mountain Clean

To help mitigate some of the impact made by tourists, organizations like KEEP (Kathmandu Environmental Education Program) have made efforts to educate both the Nepali people and tourists on how they can better care for the mountain and minimize their footprint. KEEP is a non-profit organization that works to conserve the mountains of Nepal. It has started programs in Eco-tourism, environmental awareness and rural community development.

In August of 2019, Nepal announced a ban of single-use plastics on the mountain, which will significantly reduce the amount of plastic waste that will be left behind by climbers. Additionally, in 2019 the country released the decision to make getting a climbing permit more difficult.

Economy or Environment?

The Nepali government is trying to decide what should and can be done about conserving Everest and other mountains in the country. If they limit the number of climbing permits allotted, it would improve the health of the mountain. However, it would take away money and a significant number of jobs from the Nepali people. Money from Everest has allowed people from one of the poorest countries in the world to send their children to secondary schools outside of the country. It has allowed people to create their own businesses. Also, it has fostered incomes for the Sherpas that far exceeds that of the average Nepali person.

Tourism-based income is unstable in the long run because it only provides a steady income for a short period of time. However, in the short term, it provides people with better living. Everest is affecting Nepal negatively in many ways, but the positives it brings cannot be ignored. It is difficult to know what to do about the issues tourism to Everest is causing when its short-term benefits have such a strong impact on the people of Nepal. Work is being done, but just like the trek to summiting Everest, this will be a long and challenging road for the Nepali people and government.

Emma Hodge
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

7 Facts About Poverty in Havana
In 1962, the U.S. imposed a full embargo on Cuba which prohibits all trade between the two countries. Since then, Havana, the capital city of Cuba, has become ridden with poverty and inequality. Here are seven facts about poverty in Havana.

7 Facts About Poverty in Havana

  1. Living Conditions: Under the Castro government, the housing deficit in Havana has grown by 20 percent each year since the 1990s. Out of 2.6 million housing units, 1 million are below standards. Most buildings have not been updated or maintained properly since 1959. There are 696 multi-family buildings in a critical state, leaving some Havana residents in fear of having their roofs collapse. In rural areas, Havana residents sometimes live in self-made huts with dirt flooring. The government is working to improve living conditions, but it could take up to 10 years to meet demands.
  2. Economic Classes: The Cuban government has not recently published poverty data for Havana; however, the average salary for those working a government job is around $20 a month. Doctors and nurses have recently received a raise which gives specialized doctors $67 a month and entry-level nurses $25 a month. If a doctor works a typical 40-hour workweek, this means that they would make around 42 cents an hour. Waiters and cashiers in Havana on average earn less than $220 a year, which is four times less than what doctors make.
  3. Hotels and Tourism: Around 26 hotels in Havana are tied to the Cuban military and therefore the money gained from tourism does not benefit the people of Cuba. An alternative option for tourists is Airbnb, as this directly benefits citizens by allowing them to rent out their rooms. Sometimes, the money Cubans earn from Airbnb rentals is more than they would make in an entire month.
  4. Food Rationing: In Havana, the government rations chicken, eggs, rice, beans, soap and other basic goods. Rationing has forced the citizens of Havana to plant their own gardens and farms. Today, over 90 percent of the produce that people consume in Havana grows there. An organization called Proyecto Communitario Conservacion Alimentos (Community Food Preservation Project) helps teach Cubans to grow and preserve their own food. These efforts have helped many people in Havana learn to cook food from the goods they produced themselves.
  5. Social Systems: Despite the fact that the average person in Havana lives on less than $1.20 a day, Cuba boasts having one of the highest literacy rates in the world due to their free education. Health care is also free and considered a human right. People in Havana live just as long as U.S. citizens, regardless of their impoverished living conditions.
  6. Currency: Cubans have two currencies, each with different uses. Local Cubans in Havana use the CUP (Cuban Peso Nacional), which converts as 25 CUP per $1 USD, while tourists use the CUC (Cuban Convertible Currency), which holds the same value as the U.S. dollar. The dual currency system has created large inequalities in Havana because only those working in the tourism industry use CUC. This has created a two-tier class system that benefits only those working in tourism. To remedy this, however, the Cuban government has plans underway to eliminate the dual-currency system.
  7. U.S. Embargo: The embargo between the U.S. and Cuba has been a contributing factor to Havana’s fall from grace. According to NAFSA, resuming American travel and trade will not only boost the Cuban economy but will also empower Cubans to impose change on their government. The NAFSA Cuban Engagement Initiative works on legislation that will end the U.S. embargo on Cuba.

There is a long road ahead to end Havana’s poverty crisis, but with people doing work to change U.S. policies and increase responsible tourism, the world could see Cuba’s capital city return to its once elevated state. The most important step is to spread awareness and mobilize to change government policies that will benefit Havana’s citizens.

Lisa Di Nuzzo
Photo: Flickr

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

 

 


Qatar borders Saudi Arabia and the Persian Gulf in Asia. From villages to a booming urban sector, it promotes sustainable development across a gradient continuing to flourish. Here are the top 10 facts about living conditions in Qatar.

Top 10 Facts About Living Conditions in Qatar

  1. Oil: As the third-largest reservoir of natural resources Qatar makes up 14 percent of worldwide oil production. The reserves endure 25 trillion cubic meters. Predominantly obtaining resources in The North Field, petroleum accounts for more than half of GDP.
  2. Mowsalat: A government organization, Mowasalat, operates public transportation, limo and taxi services. It has headquarters in Doha and works throughout various communities within the region. It provides dispatch services under Karwa technologies and a variety of telecommunication amenities with regards to living conditions in Qatar.
  3. Water: Desalination contrives 99 percent of the domestic water supply. The majority of the population has access to clean drinking water and sanitation facilities. Groundwater is one of the main freshwater resources. The country has no rivers or lakes.
  4. People: With a population of approximately 2 million, the median age of Qatar’s inhabitants is 33 years old. Non-Arab immigrants comprise the majority with Pakistanis, Indians, Iranians and other various ethnic backgrounds. Arabic is the official language and English is a close second.
  5. Women’s Rights: Personal status laws victimize women in child custody, marriage and divorce. Male frontrunners must approve of women’s’ rights to marry. Boundaries contiguous with divorce provide unilateral rights only to men.
  6. Kafala: Kafala is a sponsorship program for migrant workers that the International Labor Organization (ILO) brought forth. Labor laws prohibit workers from leaving the country without permits with regards to living conditions in Qatar. It implements reforms for increasing minimum wage, procedures surrounding recruitment and elements against human trafficking.
  7. Reforms on Education: Reform is continually taking place in Education City to bolster and enhance sustainable development amidst Qatar’s youth and higher education. Increasing motivation and factors stem from region-specific tradition to import best practices, globalization and transnational education, global competition, local education reform policies and liberalization.
  8. Health Care: With an increasing population, free health care offerings extend to all people in the country. Life expectancy stands at approximately 79 years as of 2005. The government regulates planning and infrastructure among initiatives.
  9. Municipalities: Qatar has 10 municipalities including Jarayan al Batinah, Madinat Ash Shamal, Messaieed, Umm Salal, Ad Dawhah, Al Ghuwayriyah, Al Jumayliyah, Al Khawr, Al Wakrah and Ar Rayyan. The Ministry of Municipal Affairs controls urban planning and economic development. Municipalities are responsible for answering to councils within their region.
  10. Tourism: Doha and surrounding cities have been renovating tourism for the preparation of the 2022 FIFA World Cup. Tourist attractions such as Al Wakra Museum and Aspire Park provide cultural identification for living conditions in Qatar. In previous years, it has been hosting the 2006 Asian Games and the 2011 Pan Arab Games.

Rapid economic and industrial expansion began at the price of reform. Qatar has the highest per capita GDP in the world largely due to the discovery of petroleum. As a syndicate of the Gulf Cooperation Council, the country continues to develop at an alarming pace. From the racing of camels to the vastness of their sand dunes the culture derives from nomadic Bedouins.

– Zach Erlanger
Photo: Flickr

tourism in Myanmar

Since 2011, tourism in Myanmar grew rapidly. One million tourists visited the country in 2011 and more than three million did in 2017. The Tourism Master Plan 2013-2020 came to life to develop Myanmar’s tourism industry, create jobs and attract more international tourists. Hilton and Best Western are investors in Myanmar and foreign investment in Myanmar’s hotel and tourism industry amounted to $2.6 billion in 2017.

Tourism Master Plan

There are six strategy programs in Myanmar’s Tourism Master Plan. The strategies involve strengthening the institutional environment, building human resource capacity and promoting service quality, strengthening safeguards and procedures for destination planning and management, developing quality products and services, improving connectivity and tourism-related infrastructure and building the image, position and brand of Tourism Myanmar.

The Master Plan set a high target of attracting 3.01 million international visitors in 2015 and 7.48 million in 2020. Myanmar surpassed its goal in 2015 by attracting 4.6 million international visitors. More than 500,000 tourists arrived from Thailand and China in 2018.

An estimated 804,000 jobs in 2016 were from the travel and tourism sectors. In 2012, before the plan was enacted, there were 293,000 tourism-related jobs. Investment in the industry creates employment for those seeking to exit poverty, as unskilled workers in rural areas now have opportunities for employment in the developing tourism industry. About 40 percent of the poor reside in rural regions. Poverty reduced from 48 percent in 2015 to 25 percent in 2019. Part of this huge decrease in poverty is due to growing industries such as tourism.

Foreign Investors

Myanmar’s tourism and hotel sector received $2.6 billion in 2017 from foreign investors, which indicated increased interest relating to tourism in Myanmar. The main investor was Singapore, which is on Myanmar’s list of its top ten tourists by nationality. A $63 million venture between Myanmar’s KMA Hotel Group and Thailand’s Centara Hotels and Resorts to develop a hotel chain is one direct flow into the industry. Many other projects were created to compensate for the tourism boom.

Training in Tourism

Since tourism in Myanmar increases exponentially, it is expanding educational programs to teach skills necessary for working in the tourism and travel industry. The Ministry of Hotels and Tourism’s (MOHT) Tourism and Training School offers classes for tour guide training and tourism management. The MOHT also partnered with the Ministry of Education to offer a four-year degree in tourism at two colleges, the National Management Degree College in Yangon and Mandalar Degree College in Mandalay.

Almost 400 students earned a master’s degree in Tourism Studies and Management from Yangon University since its inception in 2015. The program accepts 60 students per year. The Hospitality Training School opened in 2016 and offers courses relating to housekeeping, front office and food and beverage.

Myanmar Tourism Bank

The Myanmar Tourism Bank opened in Yangon this year to provide long-term, long-cost loans to the tourism and hospitality sector. It is also the first bank in the country dedicated solely to the sector. It offers most services provided by commercial banks. The bank is yet another way Myanmar plans to stimulate investment in the tourism industry, particularly by smaller operators that desire to benefit from the rapid growth.

Growing Tourism Industry

Myanmar received 2.4 million visitors in the first five months of 2019, which is its strongest year since 2015. The current tourism boom shows promise for tourism in Myanmar. Job creation, increased GDP and reduced poverty are all positive effects of the growing tourism industry.

– Lucas Schmidt
Photo: Flickr