Is Tourism The Answer To Diversification?
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Is This Maracas Bay?
By Shiva Gosine
The nation of Trinidad and Tobago recently received a warning from the IMF regarding a growing need to diversify its economy[1]. Notwithstanding the fact that many may see this as merely another repetition of what has been said on several occasions, it is just one more sobering reminder that times when we could comfortably rest on our laurels as a petroleum rich nation may come to an abrupt end.
This raises the question of economic diversification. In a recent statement, the Trinidad and Tobago Chamber of Industry and Commerce noted that, unlike many other Caribbean states, we have never had to rely heavily or exclusively on tourism[2]. However, both islands have the potential to expand in this market and to fully exploit existing opportunities – particularly in Tobago. Unfortunately, the Tourist industry in Trinidad and Tobago has been somewhat neglected. It has not been given the opportunity to maximize its fullest potential on account of the emphasis placed on the petrochemical industries.
In the Travel and Tourism Competitiveness Report (2013) from the World Economic Forum, Trinidad and Tobago, listed along with other countries which earn an income from tourism, was ranked 104th, 138th 105th and 138th in Travel and Tourism Regulatory Framework, Environmental Sustainability, Safety and Prioritization of Tourism respectively[3].
Conversely,
we see Trinidad and Tobago generally faring decently considering its size in
the area of Policy Rules and Regulations
with considerable room for improvement in Health
and Hygiene. In Business
and Infrastructure rankings we see ourselves in a comfortable position
mostly with the exception of Tourism
Infrastructure rankings which must be improved
Lastly,
our position appears to be worrisome in the area of Human, Cultural and Natural
Resources with only Cultural
Resources holding a passable position, most likely due to our Carnival
attractions.
Thus,
with the foregoing information in mind, we can more clearly ascertain the
elements most requiring effort to increase our market share in the regional
tourism industry. Critically needed are environmental sustainability; security;
a more welcoming attitude toward tourists and substantial investment, improved infrastructure
and policy regarding the industry.
In the year 2013, Travel and Tourism
contributed 3.1% of our total GDP directly and 8.2% indirectly according to the
World Travel and Tourism Council.
Without
a doubt, if we are to seize a greater slice in the Caribbean tourism market,
these rankings and figures must improve. Since the 2008 Financial Crisis, many
of the regional tourist destinations – including Barbados - suffered
considerably from the resultant decline in foreign visitors[1].
They now recognize a need to economically diversify.[2] Having not been so adversely affected due to
our mineral wealth, it is now an opportune time for Trinidad and Tobago to
capitalize on this industry.
The above illustration from the World Economic Forum Tourism Competitiveness Report concisely illustrates both the external and internal factors that impact travel and tourism effectiveness. Regarding a potential bid by Trinidad &Tobago to stake a greater claim in the industry, consider the issue of regulation, policy and investment. Our rank in the Ease of Business measurement is similar to that listed in the WEF report.[1] We see ourselves entering 2014 ranked at 66, dropping lower from 63 in 2013. Problematic for us on the index are enforcing contracts, paying taxes, registering property, obtaining construction permits and starting a business.
Undoubtedly, the bureaucracy needs to be trimmed or at least made more efficient. The onus is not just on the state to create a more tourist friendly infrastructure but also on the private sector to provide more tourist attractions - nature trails, beach resorts, structured tours and activities fuelled by both local and foreign investment. Even the small business owner selling local culinary treat has an important role to play in providing a distinctive memory of a well spent trip.
Additionally, our environment must not suffer further decay. Carnival cannot be our only tourist attraction. If we do not preserve our endangered species such as the Leatherback Turtle and our nature based treasures such as the Buccoo Reef, tourism may fast become a non-renewable resource in its own way[1]. The government is obliged to provide organizations such as the Environmental Management Authority with more teeth rather than have them as paper tigers.
Lastly, tourists must feel safe and secure. A comprehensive crime plan taking into account this very consideration is no doubt in order - if only as a first step in the right direction. This has become imperative in recent times, more so on account of the annual increase in murder rates even in the sister isle of Tobago, which, generally immune to such ills, has also experienced more murders than is usually the norm.[2]
Furthermore, it does not bode well for us when former visitors to our shores dedicate entire websites to warding off prospective foreigners seeking to vacation here. Worse yet, when we find ourselves being portrayed as a narco state run by gangs, drug money and corruption in foreign media outlets such as Vice News[3]. (https://www.youtube.com/watch?v=tnpaaVB4XyA) Such a reputation must be avoided at all costs if we are to increase our income from tourist ventures.
The opportunities are there and the time is ideal. However, no shortages of problems present themselves as well. Can Trinidad and Tobago take the initiative and carve out its own image as a “must see” Caribbean tourist destination, or is it easier said than done? One thing is certain though. We cannot wait at our leisure for oil will not last forever.
[1]
Trinidad Guardian, "IMF Warns
T&T: Tighten Policies," July 10, 2014. http://www.guardian.co.tt/news/2014-07-10/tighten-policies
(accessed July 22, 2014).
[2]
Trinidad and Tobago Newsday,
"Tourism and Trinidad and Tobago," March 6, 2014.
http://www.newsday.co.tt/businessday/0,191532.html (accessed July 22, 2014).
[3] Blake, Jennifer , and Thea
Chiesa. "Travel and Tourism Competitiveness Report 2013." World
Economic Forum. http://www3.weforum.org/docs/WEF_TT_Competitiveness_Report_2013.pdf.
(accessed July 22, 2014).
[4]
Cumberbatch, Shawn. "The Issue:Diversification Holds Opportunity." Nationnews.com, April 1, 2014.
http://www.nationnews.com/articles/view/the-issue-diversification-holds-opportunity/
(accessed July 22, 2014).
[5]
Morton, Phillip. "Barbados Seeks Prosperity Through Economic
Diversification." Global Tax News,
December 29, 2011.http://www.taxnews.com/news/Barbados_Seeks_Prosperity_Through_Economic_Diversification____53191.html
(accessed July 22, 2014).
[6]
"Doing Business in Trinidad and Tobago - World Bank Group." Doing
Business in Trinidad and Tobago - World Bank Group. http://www.doingbusiness.org/data/exploreeconomies/trinidad-and-tobago/
(accessed July 23, 2014).
[7]
"Endangered Species of Trinidad." Earth's Endangered Creatures.
http://www.earthsendangered.com/search-regions3.asp?search=1&sgroup=allgroups&ID=413
(accessed July 23, 2014).
[8]
Williams, Elizabeth. "Tobago Records 3 Murders In 10 Days." Trinidad Express, July 20, 2014.
http://www.trinidadexpress.com/news/Tobago-records-3-murders-in-10-days-267880761.html
(accessed July 22, 2014).
[9] "Murder and
Corruption in Trinidad | VICE News." VICE News RSS.
https://news.vice.com/video/murder-and-corruption-in-trinidad (accessed July
23, 2014)..jpg)
I agree that the tourism industry is far too neglected and this thus robs Trinidad and Tobago of achieving its economic potential. Hopefully there will be more projects directed at improving this sector in the future. Hope to see more of your work.
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