| |
|
 |
Frank Rainieri
Novel Thinking on Sustainable Tourism by Frank Rainieri, Chairman, Punta Cana Group, Dominican Republic
Caribbean Media Exchange on Sustainable Tourism
October 21, 2002 - Montego Bay, Jamaica
--------------------------------------------------------------------------------
Most anyone who lives in the Caribbean region can appreciate the economic contributions that tourism makes to the national economies. As informed journalists you all already know the stats; 35% of the Caribbean's Gross Domestic Product is generated by the industry, as many as 1 out of every 4 people are employed (directly or indirectly) by tourism and revenues generated by government in the form of taxes are in the billions.
Despite these obvious contributions, there are many who still today battle against the industry, quoting doom and gloom in the form of social and environmental degradation, disenfranchisement of populations and expatriation or leakage of foreign exchange. I've heard say that modern day hotels are this century's equivalent of sugar cane plantations. That the Caribbean has become the "white man's playground."
But, let me digress here to say that like many young men in the Caribbean, I was raised to believe that my future and my career lay in agriculture or industry. I went to Business school in the United States and dropped out to come back to the Dominican Republic to work for the country's most advanced dusting, spraying and agricultural company, taking courses to modern agricultural methods in the United States.
I saw first hand the clearing of vast expanses of land for monoculture. The division of family lands first for the first generation and then the second generation- until each became a small plot of land not capable of supporting a family. I have witnessed the migration of workers, desperate for jobs, from the rural areas of my country to the capital, in search of work. I know the chemicals that are haphazardly applied to crops and effect that they have had on surrounding communities and water supplies. I have witnessed the creation of subsidies for products which are no longer competitive in an international market.
And through all this, I question why we bind ourselves to a future that was born of the past. A past that was born of necessity in a time when international commerce took months, not seconds. In a time that bananas, pineapples and avocados were exotic goods, not something found on every shelf of every super market across the US and Europe- imported from Mexico or South America.
Because of this loyalty to agriculture and an underlying sentiment of distaste for the industry, governments are slow to recognize the value of tourism and have not worked collaboratively to build a healthy and prosperous tourism product (industry.) Foreign investment dominates local markets and independent properties are cast in the shade of international chain hotels. Vertical integration of the market by tour operators, charter airlines and hotel chains have dropped the bottom out of prices while local utility costs make the Caribbean an expensive destination to operate in a global market.
Despite these challenges, the Caribbean does have several overriding advantages in the development of a tourism industry...
As any university freshman studying marketing knows, in order to be successful within a market, you must first identify your competitive advantage and work to distinguish it within the market.
What is the competitive advantage of the Caribbean?
It is -of course- image of the crystal turquoise blue waters of the Caribbean sea, lines of wavering green palms on delicate white sand beaches. It is the broad smiles and quick laugh of our people and the calls of parrots from the bush. People will sit on a plane for 8 hours or more from Europe to feel the Caribbean sun on their skin and drink cuba libres. They seek to have new experiences, eat exotic foods, dance, have fun and maybe even relax or read a book.
I ask all of you here today, what is wrong with the exploitation of these natural attributes if (and I stipulate here "IF") it is managed in a way that increases the standard of living of Caribbean people and protects the health and hygiene of our communities and surrounding environment?
Tourism is not an industry of smokestacks, there are no billowing clouds of pollutants emanating from resorts. Successful tourism managers do not seek to ostracize local populations, but rather look for ways to incorporate people, customs and traditions into the charm of the destination. Local investment in quality tourism enterprises, attractions and supporting services boasts the economy and the industry as a whole provides a source of employment.
There is no doubt that for small island states such as make up the Caribbean basin, tourism is our competitive advantage in the global markets of today. It provides foreign exchange, job creation and an opportunity to showcase the natural and cultural beauty of our respective countries. We must be savvy in determining our future in this vast world of today in order to determine how we will develop economies, educate people and provide infrastructure and social services.
Regional chains such as Sandal's has demonstrated a commitment to their home countries and showed that the Caribbean is capable of owning and operating a successful brand name. Independent boutique properties attract high dollar room rates and large facilities earn independently verified awards for environmental responsibility and good neighbor policies.
In the case of Punta Cana Resort and Club - in an isolated area once dominated by charcoal production and subsistence fishing- we have created a robust economy, built public roads, installed energy and water capacity, built and operated primary schools, conducted adult literacy courses, created large expanses of protected areas on land and in the ocean and sought to create an environment of respect and pride for Dominican culture.
We operate our own airport facility, which opened with only 1,500 meters of runway and 2,000 passengers. Today receives 70 Europe flights weekly from in high season.
We built the whole facility as an open air, thatched Arawak Indian design that encompasses 18,000 square meters of terminal. This typical Caribbean design has eliminated almost completely the need for air conditioning- reducing the need for 2,000 tons of air conditioning and lowering by almost US$2 million dollars annual energy consumption.
The Punta Cana International Airport captures the attention of visitors from all over the world. A picture of the Punta Cana International Airport is the first or last thing any visitor to Punta Cana does.
The Punta Cana Airport has alone generated over US$50 million dollars annually in income for the Dominican government and provides 1,000 jobs locally.
Close one million passengers have come through our door this year and are distributed throughout 18,000 hotel rooms in the Punta Cana/ Bavaro/ Macao area.
In 1998 Hurricane George took down 90% of the buildings, but because of the design of the facilities, we had them back up and running in 48 hours.
But despite these successes, there are continual challenges to the development of the industry...
The preservation of our natural and social capital is cornerstone in the creation of a solid economy. Without the conservation of the natural resources which form the base of our competitive advantage, nor the development of human resources to work, run or operate business operations in environmentally responsible manner we are simply - to quote a well worn adage- "killing the goose that lays the golden egg."
Both private sector and government recognize that environmental infrastructure at both a national level and individual property basis is necessary, that the preparation of technicians to construct and operate advanced technologies and implement environmental management systems is required and that materials to educate and involve citizens and visitors in conservation should be colorful, attractive and widely displayed.
But these actions require an investment of capital from all sectors of the industry. The World Bank, in its recommend policy document, Vision 20/20, presented to the Caribbean Group for Economic Development advocated for a dedicated fund which would finance environmental infrastructure, training and technologies.
And in my capacity as an independent hotelier, chairman of the national hotel association environmental committee and President of the Caribbean Alliance for Sustainable Tourism, I agree with this recommendation.
However, as an independent businessman, I am not amenable to the manner in which they proposed the generation and collection of these funds.
Like in so many other instances, they have proposed the creation of a tax, SPECIFICALLY - a room tax based on the view- ocean view or garden view, for example. This is a proposal which I can not agree with, and I will later explain.
As well, they proposed that the fund be independently governed by an oversight committee of representatives from the public, private and social sectors. And I can agree with this proposal but would further specify that it should be private sector representatives from the tourism industry. As well I agree that the funds should be generated through a specific environmental "contribution" on tourism- I would prefer that we not label it a "tax" per say.
However, I would propose that this contribution expand the breadth of tourism activities to include a sub-sector which highly depends upon the natural environment of the Caribbean, the cruise lines. All major ports, both land and marine based ports would make appropriate collection points for an environmental contribution.
As you may already know, almost 17 million passengers arrived by air, AND 14 million by sea this year. In this manner, even a relatively small tax of $5 - $7 dollars could collect large sums.
Furthermore, just as those passengers who fly from one island to the next on dual destination trips, cruise passengers should pay when disembarking in each destination. Perhaps we would consider a discounted rate for dual destinations, but the revenues would be split equally amoungst all our Caribbean countries.
Funds generated through this mechanism would finance energy, water, waste and waste water infrastructure , build and maintain roads, build recreational infrastructure in parks and protected areas and build human resource capacity in the public and private sectors.
The management of funds would be overseen by an integrated public/ private sector committee that would approve the disbursement of money for agreed projects. This fund could also offer low cost financing for environmental upgrades to tourism businesses that would help to stimulate re-investment in mature facilities.
However, the trick to this fund will be its complete implementation by all the countries of the wider Caribbean. If the Caribbean does not stand united in its resolve to tax for the use of the natural resources of the Caribbean, outside investment will contrive to use neighbor against neighbor.
If we, the people and governments of the Caribbean, truly believe that what distinguishes us in the international marketplace is the image that the word "Caribbean" brings to mind, we must work together to protect and market our competitive edge. And we must then put our money where our mouths are, because there is only ONE CARIBBEAN.
Thank you for your attention and I will look forward to your queries.
Remember: Amateurs built the ark. Professionals built the Titanic...
|
| |
|
 |
| | |
 |
