Friday, August 10, 2007

Democratisation of the tourism sector: Another approach

After several years of slow growth, international tourism is on the rebound. The return of both consumer and business confidence is bringing favourable conditions for both established and emerging tourism markets. And Mauritius, battered to some extent by the worldwide slump of 2001 and the impact of high oil prices on the airline industry in 2003-2004, is coming out stronger by repositioning itself with a new branding and a more aggressive air access and marketing strategy.
While the long term prospects for the sector remain strong, it is emerging as one of the most remarkable economic and social drivers - a mainstay of the country’s growth and a crucial stopgap for absorbing the trade-dislocated unemployed during our transitory adjustment phase to a new higher growth plateau.
 And now that the sector has recovered and it is back fast tracked up the ladder as a premier international tourist destination, the inappropriate and somewhat nebulous, wake-up call for the democratisation of the sector through greater equity participation does not serve the cause of tourism. At this crucial juncture as we pool up our resources to extricate a partially sheltered and uncompetitive economy from the straitjackets of trade preferences and incentives, it robbed the economy of its unique pace in the new elan of reform, spontaneity and solidarity. More than empty slogans or the necessary double-speak of an election campaign, it reflected attitudes designed to tap into a stream of resentment than to produce an adequate remedy.  It skirted the more fundamental debate about the opportunities in the sector, the possibilities and potential of the different market segments and the benefits accruing to different sectors and groups and about developing equity in tourism benefits-sharing .

Mauritius has been more successful, as compared to its culturally richer and naturally-blessed competitors, not only in attracting significant numbers of tourists but also in turning into a source of wealth its Sun, Sea and Sand.  And in response to significant changes in the global flow of tourists with new trends in travel patterns, behaviour of tourists, new motives of travel as well as increased competition throughout the world, the sector gradually diversified from predominantly beach-based tourism to business and conference tourism, cultural tourism and ecotourism. An upliftment of the national product portfolio- enhancing the authenticity of our destination by promoting our cultural and historical heritage as well as local arts and handicraft; our historic and heritage sites, museums, festivals, cuisines, local music, fine arts, and organising special mega-events - was required to generate varied choices with added-value for tourists and thus raise the expenditure per tourist.  But the strategy continued emphasizing on a quality product concentrating specifically on the up-market segment with high levels of customer service. The strategy was restrictive ensuring enclave tourism- hotels became resorts that limited their customers to the confines of the immediate resort environment. Although tourism development results in the provision of facilities and services, however, in cases of enclave tourism these facilities are not accessible to local residents; most of the benefits do not percolate down to the lower income groups, SMEs and low-skilled operators. This type of tourism demand renders them uncompetitive as they are unable to capitalize on the advantages that accrue from the economies of scale and lack the requisite experience to run tourism business along modern management principles. The real challenges for them are the difficulties in finding an outlet for their products which fail to meet the quality standards of up-market tourism. Again, their limited resource base makes this objective hard to achieve. At the margin there are however some beneficiaries of the few left-overs for some private owners of some up-market bungalows, restaurants, handicrafts outlets. 

Mauritius gave careful consideration to the type of tourism it wants and has accordingly put in place a strategy to achieve those aims. But there is a feeling now that this strategy is too restrictive. Taking  into consideration that the changing nature of the tourism industry, the increasing number of air links, the bulging affluence in emerging markets, and the general  technological improvement in global travel  have changed the profile of tourists as well as the demands on the destination, the sector and its parameters need to be redefined. The challenge is to formulate the sector policies that best reflect these changes and the new thinking that the benefits from tourism activity should be spread more evenly throughout the society. The democratisation of the sector will mean a policy orientation that does not focus uniquely on the up-market segment but also on the low-to-middle segments (the lower willingness and ability to pay) which by no means will affect the traditional upper segment of the tourism sector given the specific profile and demand of different segments .

Sometime back, someone very knowledgeable about the sector, in his very characteristic style, challenged us to think  along these lines: “Pourquoi alors ne devrait-on pas laisser ces familles mauriciennes (…) gagner plus du tourisme en les encadrant convenablement dans la para-hôtellerie. Pourquoi devrait-on leur couper leur gagne-pain en bloquant la venue de touristes sur de nouvelles compagnies aériennes qui joueront le jeu en baissant le prix du billet et en ne bloquant pas de places pour les grands hôtels. Les touristes de la para-hôtellerie ne volent pas les plages des Mauriciens, mais les partagent. Ils dépensent leur argent directement avec les Mauriciens. Grâce à leur ‘baseload’ beaucoup de nouvelles infrastructures et de business (restaurant, bowling, centre d’équitation, plongée, magasins, location de voitures, tour-opérateurs, guide, catering, femme de ménage, chauffeur etc.) se développeront en annexe dont les Mauriciens aussi pourront jouir. ».  Kishore Beegoo dixit.
                           This market segmentation offers us enormous possibilities to revitalize the agricultural and rural economy, support the sustainable development of rural areas, develop community-based tourism with a cultural content, agricultural tourism eco lodge, family owned hotels, guest houses, eco accommodation, traditional organic and authentic products and Mauritian cuisine, environmentally friendly hotel, green holidays, sports clubs providing services. (The concept of Chowki ki Dhani in Rajasthan, the Bushman Traditional Village and the Chamarel Integrated Development Project was created as an innovative idea offering tourists a cultural experience while simultaneously contributing to the economic development of the community.)
         A new tourism is emerging, sustainable, environmentally and socially responsible, and characterised by flexibility and choice. A new type of tourist is driving it: more educated, experienced, independent, conservation-minded, respectful of cultures, and insistent on value for money. To remain competitive, tourism destinations and industry players alike must adapt. For many, the challenge is to “reinvent” tourism.

The Tourism Forecasting Council (TFC) of Australia for e.g is already gearing itself for the longer term.
·       In the longer term, it is expected that there will be a yearning for village life within Australia, based on a belief that society is losing its sense of community, resulting in a greater focus on family, community values and stability.
·       A greater search for authentically distinctive settings that provide a sense of place and activities that provide a sense of belonging in response to globalisation and an increasing sense of disconnection, dislocation and lack of control.
Indeed it takes courage to lift one’s head up for a long, hard look over the horizon.  It’s another approach altogether.