Travelling towards ‘Innovation Rich’ Economies’

‘Travel and Tourism’ has been purported by the World Economic Forum Competitiveness Report (2013) to be the fastest growing sector of economies worldwide. The Global Competitiveness Index provides a snapshot of the productive potential of nations and is a powerful tool that is used for identifying and strengthening the transformative forces that will drive future economic growth. With an emerging shift in ‘old’ terminologies such as ‘developed’ vs. ‘developing nation’ towards terms such as ‘innovation rich’ vs ‘innovation poor’ economies, pillars such as ‘business sophistication’ and ‘innovation’ are the new keys to success. The sector to watch, and thereby apply the principles of these pillars towards is none other than ‘Travel and Tourism.’

Trinidad and Tobago’s Tourism sector has been ranked number eighty three out of the one hundred and forty nations assessed. Formerly a mere segment in the ‘development’ agenda, the vision for enhancing this mainstay of the services sector in most Caribbean islands, has now graduated to the portfolios of Government Ministries for trade and investment. The move towards placing ‘Travel and Tourism’ under the microscope of ‘Trade and Investment’ goes hand in hand with most countries’ entry into the globalized era of economic development.

As set out in Trinidad and Tobago’s 2010 National Tourism Policy and highlighted in the local Secretariat’s report to the World Trade Organization’s policy review of 2012, ‘Tourism has been identified as an avenue for diversification of the economy. Tax based measures such as accelerated capital allowances are the main measures used to encourage investment, and are mostly open to foreigners and Trinidad and Tobago nationals’.
The investment agency (InvesTT) that has been established by the government of Trinidad and Tobago has identified ‘accomodation projects’, ‘ancillary facilities’ and ‘port infrastructure’ as project categories that qualify for consideration of benefits - tax or customs and excise duty exemptions.

Additionally, as stated in the Medium Term Policy Framework for 2011-2014 (MTPF), the government of Trinidad and Tobago has recognized the urgent need for the creation of a ‘more productive, competitive, diversified and innovation-driven economy’. With such lofty projections for the stimulation of the tourism sector, the activity that bridges the gap between theory and practice must now prove itself.

It has been a long standing fact that economies which demonstrate strong national investments toward mineral extraction activities, often do so at the expense of other activities in the manufacturing and service sectors. For nations such as Trinidad and Tobago, managing its mineral revenues and their subsequent investment requires a subtle balance of risk and innovation that encompasses all institutions from government to business and civil society.

Furthermore, the premise of the popularized ‘knowledge-based economy’ filters in to the research and development trajectories of these key players. Open innovation, education, knowledge management and creativity must grow in conjunction with the nation’s Information and Communication Technology Infrastructure. Trinidad and Tobago’s 2012-2016 National ICT plan also advances on these premises in its mission of creating a ‘dynamic knowledge based society, driven by the innovative use of ICT’s to enhance the social, economic and cultural development of the people of Trinidad and Tobago’.

Where then, does this position the travel and tourism industry cluster? The planning and development engines of the travel and tourism industry have experienced a philosophical shift in the recent decade. Creating equilibrium with nature, and the enhancement of human life - ‘sustainable tourism’, is the central organizing concept behind this sector.

To gain some meaningful insight into the now dynamic world of ‘sustainable tourism’, we turn to an individual who has become a popular authority on the topic. Mr. Bruce Poon Tip, Trinidadian born, Canadian based entrepreneur and founder of the world renowned ‘G Adventures’ travel company has become a leader in transforming the way people think about travel.  Hailed as the ‘Best Adventure Travel Company on Earth by National Geographic’, Poon Tip’s unique company and approach has attracted the interest of governments and international funding agencies and has transformed the ‘profit driven’ enterprise that typified the tourism industry.

His philosophy began with the ‘Triple Bottom Line’ concept which captures an expanded spectrum of values and criteria for measuring organizational and societal success. Moreover, it places ‘People, Planet and Profit’ as the integrated elements towards a successful development trajectory for the Travel and Tourism industry.

In a recent interview with a local Vancouver magazine, Poon Tip illustrated one of the employment projects that his company facilitated in India by utilizing locals to conduct tours, he has also been invited by the government of Columbia to consult on innovations in the tourism  sector along the same lines.

This privately owned company and philosophy is a key example of a successful merger between ICT’s and the Tourism Industry, a business venture that injected clever levels of innovation and capitalized on the existing institutions and policy structures of various countries to deliver a travel and tourism product that was worthy of the 21st century.

Perhaps, Trinidad and Tobago and likewise the other Caribbean nations with a desire for ‘travel and tourism’ success, would do well to explore the opportunities presented in an inter-regional context. As many extra-regional markets have contracted and the perceived spending power of their populations dwindled in recent years, it would be interesting to see a rejuvenation of the ‘CSME’s’ goals rallying around the tourism sector.

As local investment is encouraged to produce products and services, we can look to our rich cultural and entertainment business sectors as a ‘go to’ for sustaining an inter-regional tourism flow. Trinidad and Tobago and the rest of the Caribbean region remain poised and equipped for dynamic growth in the travel and tourism industry. We have now to witness how the existing infrastructure and policy environment is translated into cohesive and productive action.