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How Wildlife Tourism in Africa Reduces Poverty

Wildlife Tourism in Africa
The World Travel and Tourism Council says that wildlife tourism is “tourism that involves watching and experiencing with wildlife in its own natural habitat.” Wildlife tourism is incredibly important in Africa; it makes up 36.3% of the continent’s travel and tourism economy. As home to arguably the most captivating and recognizable collection of wildlife on the planet, including elephants, lions, cheetahs and gorillas, it is no wonder that many tourists seek Africa as a place to get closer to nature.

Of course, the money that tourists spend can be transformative in places that do not and likely would not have much of an economy outside of tourism. In total, wildlife tourism directly contributes $29.3 billion to the African economy and employs 3.6 million people. Those numbers are more than twice as high when indirect effects factor in. For a continent that is lagging behind the rest of the world in reducing poverty and had 70% of the world’s poor in 2019, the influx of wealthy tourists from abroad is greatly desirable.

A Synergistic Match

In recent decades, many conservationists have come to realize the dual role that wildlife tourism can have in Africa. It can help protect its extraordinary wildlife and enrich the local communities near the protected areas where the wildlife lives.

Many rural populations in Africa are destitute and rely heavily on subsistence farming. For those who border the approximately 17% of lands in Africa that are designated protected areas, they need to have economic reasons to play a role in protecting those lands and the wildlife on them. The argument alone that such beauty should receive protection for future generations might sound good on principle but bears little weight to those who are struggling to survive in the here and now. On the other hand, wildlife tourism can provide them with significant economic opportunities.

In short, if tourism provides more economic opportunity than exploiting the land and wildlife would, then locals will work to protect the land and wildlife that generates the tourism. As a result, the key is making sure that a sufficient portion of wildlife tourism funds goes toward the local economy. Countries in Africa that want to create sustainable wildlife preserves need to create sustainable wildlife tourism that centers on equity for local stakeholders. This means making sure local workers receive fair pay, and that much of the tourism-generated fees and taxes go to local communities to fund health clinics, schools, infrastructure and social services.

The NGO Establishing Sustainable Tourism

The United Nations projects that “more than half of global population growth between now and 2050 is expected to occur in Africa.” The African Wildlife Foundation (AWF), an NGO, believes this rapid growth will increase the difficulty of wildlife conservation because governments will feel pressured “to allocate more and more land for agriculture, livestock, human settlement, resource extraction and infrastructure.”

For its part, AWF has helped set up some nature conservancies in Africa that benefit local people. In Kenya, it helped Maasai tribal people set up land-lease arrangements outside of Amboseli National Park, effectively expanding the local protected area. The Tawi and Satao Elerai ecolodges operate in these conservancies and generate revenue for the Maasai people. Both provide funding for schools that should help empower girls in the highly patriarchal Maasai culture.

In Rwanda, AWF was instrumental in setting up Sabyinyo Silverback Lodge, the country’s first community-owned lodge. Revenues from the lodge fund the SACOLA (Sabyinyo Community Livelihood Association) community trust, which has received nearly $4 million to date and has benefited more than 5,000 households.

Equity on a Continent Rich With Natural Treasures

These and other projects like them play an integral role in providing economic opportunity for rural people in Africa who border the continent’s many protected areas. Local people benefiting economically from conservation efforts strengthen conservation efforts. Those who would like to improve the balance between man and nature in Africa may have an interest in spending their tourist dollars at eco-friendly lodges.

– Jeramiah Jordan
Photo: Flickr

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How Tourism in Tanzania Alleviates Poverty

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

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The Effects of Wildfires on the Poor

The Effects of WildfiresThe effects of wildfires are destructive, deadly and devastating. Additionally, they are becoming increasingly frequent. From the west coast of the United States to Australia and Russia, wildfires are spreading like never before, wreaking havoc and adding unparalleled burden to the countries’ poor.

The Effects of Wildfires

Wildfires burden society by depleting resources, burdening the economies and impacting citizens’ health. Wildfires force the evacuation of people and often destroy homes and valuables. The University of Oregon Scholars Bank states that a person needs an income of twice the poverty line to be fully capable of protecting oneself, family and assets from fires. Thus, these fires have a disproportionate effect on the poor.

Wildfires Cause Depletion of Resources

One way in which wildfires are destructive is the depletion of resources. The burning of forests destroys properties, trees, vegetation and wildlife. Wildfires often strip families of everything they own in a matter of minutes.

In addition, these fires deplete not only air quality but water quality as well. As wildfires burn, they contaminate the water in streams, lakes and reservoirs which limits access to clean water. Thus, the affected area’s drinking water and food supply are not usable. Limited food and water supplies make it harder for the poor to live.

Wildfires Cause a Decrease in Economic Stability

Wildfires take a large toll on an affected areas’ economic security by causing economies to close. As a result of closing the economy, tourism decreases. The effects of wildfires make areas untravellable as they pose a massive threat to people and destroy forests and hiking trails that often draw tourists. In addition, the economy slowed due to the destruction of resources.

This lack of tourism and loss of resources cause loss of income in affected economies. So, as income from tourism decreases, the number of available low-paying service industry jobs decreases as well. This causes those already living on or below the poverty line to face greater financial hardships as hours and jobs are limited. Furthermore, as fires destroy forests and trees, jobs in the logging or wood chipping industries run scarce.

Wildfires Cause Strain on Human Health

Furthermore, wildfires pose a great threat to human health as their smoke depletes air quality. This can result in reduced lung function, bronchitis, heart failure and asthma among other things. The effects of wildfires on mental and physical health are long-lasting. These effects on health disproportionately affect the poor as they often have limited access to affordable healthcare.

The Increase in Wildfires Worldwide

Wildfires know no bounds and have begun to spread with increased frequency to places that have little to no previous experience with them. Siberia, a tundra that has had limited prior experience with fires, is now struggling to put out a fire that has burned upwards of 6.5 million acres. 

Similarly, in 2020, Australia suffered devastating wildfires that burned 44.5 million acres and killed upwards of 30 people. It killed large amounts of wildlife and devastated their environment. Likewise, Australians are feeling the effects of wildfires in Australia today. The Australian government did little to curtail the devastation of wildfires which led to countless protests by citizens.

The Good News

The devastating effects of wildfires worldwide are far from gone. However, through the increase in aid and wildfire-related programs, the goal to limit drastic spreads and devastation is possible.

The United States developed many fire-related programs that created job opportunities focused on research, fighting and prevention methods and landscape rehabilitation. These programs aim to limit the level of devastation associated with wildfires. Additionally, the USAID also provided humanitarian support to Australia throughout its 2020 wildfires.

With increased research and fire-related programs in addition to global support during times of active burns, the devastating impacts of wildfires can reduce. Thus, they will lower the impacts on communities and preventing an increased burden on the poor.

– Lily Vassalo
Photo: Flickr

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Rwanda’s Ecotourism Industry Reduces Poverty

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

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The 2021 Safari Rally Can Help Kenya’s Economy

Safari Rally Can HelpThe Kenyan Safari Rally is a car racing event “first held in Kenya in 1953 to commemorate the coronation of Britain’s Queen Elizabeth II.” The Safari Rally became inactive for almost 20 years “due to concerns over safety, organization and finances.” Now, in 2021, the car racing event is making a comeback in Kenya. The event may be an important source of revenue for Kenya as it has the potential to increase tourism in the country. The revival of the Safari Rally can help Kenya since the country’s “economic outlook remains highly uncertain” due to COVID-19.

Impact of COVID-19 on Kenyan Tourism

From 2009 to 2019, the tourism sector’s GDP value in Kenya grew by about $4 billion. Since almost 40% of Kenya’s youth experience unemployment, a growing tourism industry has the potential to provide employment opportunities, thus reducing poverty in the country. International tourism in Kenya is more profitable than domestic tourism with arrivals of more than two million tourists between 2018 and 2019. However, with the onset of the COVID-19 pandemic, pandemic-induced restrictions have limited the economic potential of tourism in Kenya.

As is the case for most countries, COVID-19 harshly impacted Kenya’s tourism and hospitality sector with a loss of more than $500 million in hotel revenue alone. Due to decreased travel in 2020, more than 36,000 airline workers in Kenya were at risk of unemployment. According to the World Bank, the COVID-19 pandemic has pushed an additional two million Kenyans into impoverished circumstances due to job losses, wage cuts and reduced household income. The Safari Rally offers hope to a struggling Kenyan economy, providing a chance to revitalize the tourism sector after the harsh impacts of the pandemic.

How the Safari Rally Can Help Tourism

By hosting 24 foreign and 34 Kenyan drivers, the Safari Rally will boost not only international tourism but also domestic tourism. Domestic tourism is just as important as international tourism in preventing tourism-based economies from collapsing during the pandemic. The Safari Rally enables local Kenyan residents to travel to the race venues to support Kenya as domestic tourists.

The hospitality industry will see a rise in activity as sponsors and participants in the Safari Rally book hotels for accommodation. A Kenyan betting company, Betika, sponsors the event along with companies such as Toyota. The event will increase the prominence of Kenyan businesses harmed by the lack of sporting activities due to COVID-19 restrictions.

Additionally, the Safari Rally will give Kenyans a chance to boost their sporting culture and patriotism. The itinerary of the race consists of 18 stages that pass through key tourist attraction sites in Kenya. Locations such as Lake Naivasha and other wildlife conservancies give spectators and participants a chance to enjoy the sight of lions, leopards, giraffes and elephants, all while boosting the Kenyan economy.

The Road to Economic Recovery

While tourism may have been the worst-hit sector globally, for developing countries it may be a way to escape the economic impacts of the global pandemic. The Safari Rally can help Kenya by offering Kenya’s tourism sector an opportunity to recover, igniting economic growth and reducing poverty in the country.

– Frank Odhiambo
Photo: Flickr

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5 Ways Morocco’s Economy is Recovering

Morocco's EconomyPreviously, a myriad of tourists had visited Morocco to explore its diverse culture, food, landscapes, history and people. However, due to the COVID-19 pandemic, the nation has faced a devastating economic crisis. Without its regular influx of tourists or traveling diaspora, Morocco is in the depths of a recession for the first time since 1995. The government is working to ensure that Morocco’s economy can recover from the pandemic.

5 Ways Morocco’s Economy is Recovering

  1. The Mohammed VI Investment Fund: In November 2020, King Mohammed VI established a $1.6 billion economic plan to revive Morocco’s economy due to the economic crisis that the COVID-19 pandemic brought on. Shortly afterward, the International Finance Corporation, as part of the World Bank Group, officially announced its support for the Moroccan Ministry of Economy and Finance’s efforts to boost the country’s economy.
  2. Moroccan Transportation Companies Decrease Prices: In June 2021, King Mohammed VI announced that all transportation companies must make tickets more affordable for Moroccans living abroad. The announcement targeted airlines such as Royal Air Maroc, which dropped flight ticket prices by more than 50% globally. Within a few days of the announcement, flights were being booked much faster than before. During the first week of discounted airline ticket prices, 195,547 people traveled to Morocco.
  3. Other Discounts for Tourists: Airline discounts are not the only thing Morocco’s economy is relying on to attract travelers. All forms of transportation in Morocco, from car rentals to train and bus tickets, have decreased in price. Additionally, 30% of hotel prices have decreased.
  4. More Visitors: International travel restrictions drastically affected tourism, causing a 78% deficit in the sector’s revenue in the first quarter of 2021. In response, the Moroccan government established a new economic plan that specifically targeted revenue from tourism. Now, tourism is surging more than it ever has since the onset of the COVID-19 pandemic. In 2019, 12 million tourists visited Morocco, half of whom were Moroccans living abroad. From June to September 2021, Morocco will see 72% of the visitors it saw in the same period in 2019, or around 3.5 million travelers.
  5. Rapid Tourism Sector Rebound: Morocco’s tourism sector suffered a loss of $7.2 billion in 2020. The COVID-19 pandemic hit small businesses and tourism hotspots hard, especially during national lockdowns. However, these businesses are benefiting from the country’s new economic plan. Travel reopenings are also catalyzing Morocco’s economic recovery.

Laudable Economic Growth

Despite the effects of COVID-19 on Morocco’s economy, the World Bank ranked it 53rd out of 190 countries for ease of doing business in 2020, reflecting its laudable economic achievements within merely a decade. With King Mohammed VI’s plan in place, the country’s setbacks hardly seem significant. The restoration of Morocco’s economy is underway and the country’s effervescent tourism sector is back on the rise.

– Nora Zaim-Sassi
Photo: Flickr

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COVID-19 Vaccinations in San Marino

COVID-19 Vaccination in San MarinoSan Marino is a small Southern European state surrounded by Italy. Despite having a small population of just 33,000 people and a mountainside location, the country is surprisingly one of the wealthiest in the world based on GDP per capita. San Marino acquires most of its wealth from tourism and the sale of local goods. However, the effects of the COVID-19 pandemic nearly destroyed the country’s tourism industry. The campaign for COVID-19 vaccinations in San Marino will allow the economy to recover as industries begin to reopen, igniting economic activity.

The Impact of COVID-19

In terms of the poverty rate in San Marino, minimal data exists. But, like the rest of the world, San Marino’s economy has also experienced adverse impacts from the COVID-19 pandemic. During the pandemic, tourism rates decreased due to stay-at-home orders and travel restrictions. Before the pandemic, the small country averaged around two million tourists in 2019, a clear indication of the significant economic role of the tourism sector. With regard to COVID-19 rates, San Marino has confirmed 5,092 cases and 90 deaths. The campaign for COVID-19 vaccinations in San Marino has been successful due to small population numbers and a steady supply of vaccines.

COVID-19 Vaccinations in San Marino

All of San Marino’s people have either been partially or completely vaccinated against COVID-19. The country administered mostly Sputnik V vaccines after signing a deal with Russia. Starting May 17, 2021, San Marino is offering a COVID-19 vaccine holiday package to boost tourism with an incentive. The holiday package allows non-residents access to vaccines in San Marino by booking accommodation for a certain duration at one of 19 hotels.

“The initiative is open only to those coming from countries that Italy has opened up to for tourism.” Two separately administered Sputnik V doses are available at a cost of €50. To receive the second dose of the vaccine, tourists must return to the country and stay in a hotel for at least three days. This way, San Marino makes up for its loss of tourism revenue while helping to eradicate the virus with vaccines.

The Road to Recovery

More than 66% of the population has been fully vaccinated through the campaign for COVID-19 vaccinations in San Marino. With no patients hospitalized for COVID-19, the country is effectively controlling its COVID-19 infections. With an adequate vaccine supply to cover its population, San Marino has found an innovative way to put the vaccine surplus to good use while boosting the tourism industry. The COVID-19 vaccination holiday package in San Marino is a unique solution to ignite economic recovery in the country. The offer has caught the attention of tourists who trust in the efficacy of the Sputnik V vaccine. Through innovative solutions, San Marino is finding creative  ways to recover from the COVID-19 pandemic

– Matt Orth
Photo: Flickr

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Bali to open Green Zones for international tourists

Green Zones for International Tourists
The balance between financial stability and safety is tricky, but after a year of the pandemic, Bali officials are desperate for their citizens to return to a degree of normality. Although green zones may not wholly save Bali’s economy, the initiative will be an incredible step in potentially repairing what the COVID-19 pandemic has broken for the people of Bali. Here is some information about how Bali will open green zones for international tourists in an effort to boost its economy in a safe way.

About Green Zones for International Tourists

Bali intends to open allocated zones called ‘green zones.’ These will include increased COVID-19 health and safety measures to entice tourists to return to Bali. Green zones are the latest idea from the Bali government to help save its economy safely. Bali governor Wayan Koster announced that the arrival of green zones will be available once international borders open.

Green zones will include three different locations; Ubud, Nusa Dua and Sanur. These zones will host tourists and tourist activities as safely as possible while restricting tourists from entering areas that are not green zones. Bali created green zones to entice tourists to come back to Bali to help Indonesia’s economy as a whole as it is one of the most popular islands in Indonesia.

Bali’s three green zones will prioritize the vaccination program to welcome foreign tourists while trying to maintain COVID-19-free travel. These zones will be areas free from COVID-19 through a comprehensive vaccination program for people living and doing activities in the region or zone. These allocated areas in Bali will be under strict health protocols and guidelines to ensure the safety of locals and tourists; tourists may have to quarantine in these areas before traveling to other parts of the island. Denpasar city’s tourism office has started collecting information from restaurants and hotel workers in the Sanur area to ease the vaccination process.

Tourism in Bali

As many tourists travel to Bali for its beauty, tourism is also essential to its workers. The industry roughly makes up 80% of Bali’s economy. As a result, the COVID-19 pandemic has hit Bali very hard. Between April and June 2020, the island’s economy shrunk by 11%. Bali’s provincial government has estimated that at least 75,000 workers lost their jobs due to the pandemic.

The vaccine rollout and a high compliance rate for COVID-19 protocols among residents are helping reduce COVID-19 cases. If COVID 19 cases continue to drop, as they have in recent months, domestic and international travelers will be able to travel within green zones. Although the country has not set a date to open international borders in Indonesia, Sandiaga Uno, the Indonesian Tourism Minister, has stated that Bali is ready to reinstate its borders.

Looking Ahead

The pandemic has impacted Indonesia’s tourism industry greatly. According to the Asian Development Bank, 9.4% of Indonesia’s population moved below the national poverty line as of 2020. Hopefully, green zones for international tourists will help Indonesia’s tourism get back on track, allowing Indonesian citizens to garner employment and rise out of poverty.

– Jessica Barile
Photo: Flickr

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The Opening of Cuba’s Private Sector

Cuba's Private Sector
A couple of days after the closing of the Cuban border, 16,000 private workers, upon sensing danger, requested the labor ministry suspend their licenses so they could avoid paying taxes. That number rose to 119,000, 19% of the private workforce, in a few more days and threatened to annihilate the Cuban economy. The implementation of the global travel restrictions had a devasting impact on the country’s tourism sector, which is the second-largest revenue generator for the island nation. As a result, selective private businesses took a massive hit and the government lost a crucial foundation for foreign exchange. By December 2020, Cuban tourism had fallen by 16.5%, followed by an 11% drop in the country’s GDP. Worried by the lingering economic collapse, the government began opening Cuba’s private sector, providing Cubans with self-employment opportunities and allowing them to operate businesses in added sectors.

What Did the Government Do?

Previously, the communist-led government allowed Cubans to participate in merely 127 officially approved private sector activities. Some of the legalized activities included working as a barber, working in gastronomy or transportation or renting rooms to tourists. To expand the private sector, the government eliminated the previous list of 127 activities. Instead, it created a new list of 124 jobs prohibited in the private sector. The rest of the 2,000 legal activities, which the government recognized, will be open to Cubans. In the past, state-owned businesses have always dominated the Cuban economy. However, the private sector has managed to make a mark over recent years. Presently, 635,000 people occupy the private sector, which is roughly 14% of the Cuban workforce. The introduction of the long-awaited economic reform might increase diversification in the private sector and could spur economic growth for Cuba.

The Effects on Cuba and its People

The economic reform will allow Cubans to partake in additional economic activities. It will help eradicate bureaucracy in the governmental arrangements, as the Cubans will no longer have to manipulate their business documentations to fall under the list of legalized activities. Now, they only have to confirm that they are not running any business from the list of prohibited activities.

Further, the liberalization of the private sector will bring about a change in the career patterns of Cubans. Previously, apart from the underpaid state-run jobs, the only other viable option for Cubans were low-skilled jobs. Now, Cubans will have countless other opportunities in technical fields like engineering and economics. Still, professional fields like medicine, law and teaching could open to state employees only. Additionally, the opening of the private sector will increase employment opportunities, which will rapidly develop the private sector. Private business owners currently make up 13% of Cuba’s workforce. This number will spike due to the relaxation of the private sector.

The Future of Cuba’s Economy

Ricardo Torres, a pro-reform economist at the University of Havana’s Center for the Study of the Cuban Economy, stated that the opening up of Cuba’s private sector will diversify jobs and boost the GDP. This, in turn, triggered a shift in economic arrangements in Cuba. But the chances of the private sector dominating the economy soon are bleak, mainly due to the political settings of Cuba. Therefore, expectations have determined that state-owned businesses will direct the economy. Rather than rushing into free-market forces, the Cuban government must seek inspiration from other countries and establish a solid institutional framework. Several European states, the U.S., Japan and other East Asian countries have proved that by focusing on macro and microeconomic policies and planning and investing in citizens, an economic upliftment should be possible.

Cuba’s Relationship with the US

The economy was booming under the Barack Obama Administration. Things, however, took a turn when former President Donald Trump overturned Obama’s agreement to ease travel restrictions on Cuba. Donald Trump also ended the U.S. cruise travel to Cuba, disallowed many Cuban Americans to send remittances back home, pressured a U.S.-run hotel out of Cuba, forced countries not to hire Cuban doctors and nurses during the pandemic and re-enlisted Cuba on the list of countries that sponsor state terrorism. Cuban businesses suffered a great deal due to this. The labor reform could not have been timelier for the Cuban government as it could present a sturdy case for amendments in the U.S. policy.

One of Obama’s main objectives was to expand the private sector in Cuba. Therefore, on the back of the opening of the private sector and the appointment of Joe Biden as President, the Cuban government can look to persuade the U.S. to consider a policy reform. Although Cuban had to wait a long time for labor reform, it is crucial to mend unemployment rates, boost the GDP and restore Cuba’s unsteady economy through Cuba’s private sector.

– Prathamesh Mantri
Photo: Flickr

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ASC Addresses the Housing Crisis in Venice

Housing Crisis in VeniceVenice’s resident population is drastically shrinking, from around 175,000 people within its boundaries after World War II to about 50,000 today. Despite this small number, the high cost of housing and the lucrativeness of the tourism industry leads to many homeowners turning properties into short-term tourist rentals. Estimates indicate that 25 million people visit Venice every year and 14 million of those people only stay for a day. This precarious economy reliant on tourism increasingly proves itself to be unsustainable due to high housing costs relative to resident income. Fortunately, Nicola Ussardi, the co-founder of Social Assembly for the House (ASC) is trying to address the housing crisis in Venice.

The Housing Crisis in Venice

In a nutshell, Venice has become the “world capital” of tourism which has predictably led to overtourism — a term the World Tourism Organization uses to describe “the impact of tourism on a destination, or parts thereof, that excessively influences perceived quality of life of citizens and/or quality of visitor experiences in a negative way.” To put this into perspective, more than 20 million tourists visit Venice per year but loses about 1,000 residents in the same span of time. The remaining citizens face tough financial situations with regard to housing costs. Property owners have the option to keep their buildings affordable for locals or transform their properties into short-term rentals and make a potential windfall profit.

More than 8,000 Airbnb apartments in the city point to a frustrating reality of the housing crisis in Venice that Ussardi’s grassroots movement concerns itself with. For ages, Venice has relied on mass tourism for the overall well-being of the country but it is increasingly obvious that it also has a negative impact on citizens. Ussardi’s plan to provide housing circumvents traditional methods of applying for and receiving public housing. Ussardi says that many public housing properties have fallen into disrepair. Even abandoned convents become hotels instead of public housing.

Assembly for the House (ASC)

Assembly for the House is a housing community that focuses on finding homes for Venetians who have to leave their residences due to the rising cost of rent. People who lose their homes can count on ASC to locate uninhabited, abandoned or dilapidated spaces, repair them for occupancy and move them in. ASC also works with residents to block evictions.

In essence, ASC not only lobbies the government for fairer housing practices but also finds abandoned homes for people to occupy. This applies a communal face to the crisis in a kind, albeit unconventional approach to ensuring shelter for the people of Venice.

How Assembly for the House Helps

Assembly for the House hosts 150 people in Cannaregio and Giudecca, two working-class neighborhoods in Venice. Emanuela Lanzarin is a social services assessor for the region and plainly admits that while ASC’s actions are illegal, there are also not enough public houses to meet demand. Shockingly, 2011 is the last time a Venetian received a public apartment.

For people like Simonetta Boni and Davide de Polo, two Venice residents who lost their homes after steep rent increases and ineffective social services, ASC provided housing spaces at a crucial time. De Polo said, “We [occupiers] are the alternative to the death of Venice.” The Assembly for the House is helping facilitate that alternative.

This uncommon approach from a nonprofit focused on ending the housing crisis in Venice is providing necessary housing assistance to citizens who otherwise would not have a roof over their heads. Ussardi is an inspiring example of a citizen taking action to solve a crisis that the government has overlooked.

– Spencer Daniels
Photo: Flickr