International Science and Technology Institute, Inc. Head Ocr'ers.1129 201h Street. N.W. A/oshrnglon D C 20036 202/ 735-C8.31 . Te!e. 272785 IST UP FAX: 202/223-3365

BELIZE TOURISM SECTOR ASSESSMENT.

PREPARED FOR

AGENCY FMR INTERNATIONL DEVELOpMENT

]LAC/PS

UNDER CONTRACT WITH INTERNATIONAL SCIENCE AND TECHNOLOGY INSTITUTE, INC. (CONTRACT No. LA6-0619-C-00-7038)

BY

GORDON HUNT, CONSULTANT, ISTI RICHARD HENRy, CONSULTANT, ISTI TABLE OF CONTENTS Executive summary...... 4 I. Current Environment ...... 6 A. Socio Economic ...... 6 B. Legislative and Regulatory ...... 9 II. Infrastructure...... 12 A. Transportation Links ...... 12 B. Public/Private Services (water, sewers, etc.) ...... 14 C. Accommodations, Entertainment ...... 14 D. Travel Agencies/Tour Operators ...... 15

E. Tourism Employment and Training ...... 16 III. Promotion and Marketing...... 17 A. Current SituatLon ...... 17 B. Special Interest Tourism ...... 18 1. Water-Oriented ...... 18 2. Natural History ...... is

3. Hiking/Trekking...... 19 4. Adventure Tours ...... 19 C. Archaeology - Driven Tourism ...... 20 1. Current Developed Sites ...... 20 2. Chart Chich ...... * ... . .20 3. Caracol...... 4. Ruta Maya ...... 21 D. Cruise Ship Tourism...... 22 I-V. Constraints ...... *...... 2 A. Accommodations...... B.Roadso...... i...... 24

C. Tours and Facilities ...... 25 D. Tourism/Archaeology Personnel and Budgt ...... 26 E. Communication and Coordination ...... 26 F. Licenses, Taxes and Concessions ...... 27 G. Safety ...... 28 H. Signs ...... 28 I. Handicrafts/Souvenirs ...... 28

J. Medical Facilities ...... 29 K. Custom Clearing Procedures/General Attitudes Conclusions ..... 30

L. Conclusions...... 30

V. Role of USAID...... 32 A. Accommodation...... 32

B. Promotion/Marketing ...... 32

C. Infrastructure...... 32

D. Environmental ...... 33

g. Training...... 33

V. Business Development ...... o...... 33

G. Specific Tasks ...... 34

1. Short Term ...... 34 2. M~dium Term ...... 35 3. Long Term ...... 38 ')ppend~ices A. List of Contracts and Interviewees

B. Tourism Statistics C. Caracol Development Effects *D. La Ruta Maya E. Strategies for Women in Tourism Executive Sumary The current administratioi in Belize has for the past four years tourism as its number identified two priority sector for development This shift in government has been a major thinking and has led, if not to substantive yet, to at improvement least a focus on existing as problems. Lacking to alleviate the fina..=ial resources the more obvious constraints on tourism, the rely almost government has had entirely on the private to sector, both domestic and foreign, to develop and expand the tourist t.1,dustry in Belize. The tourism infrastructure in Belize is weak, acccmmodate but Just adequate enough current levels and to types of tourists. Projected and Tiality increases in numbers of tourists, however, will require substantial support facilities. upgrading of tourist External transportation is adequate at present be upgraded easily and could with the expansion of the main airport. transpox.tation, however, Internal will need major improvements grc-.nd transportation, in local air service, road conditions and water trancportation Services to the cayes. such as water and sanitation facilities at primary such as San Pedro destinations need immediate major improvements, ai medical services do power, police and throughout the country. The hotel situation edequate and is currently will remain so in the medium-term, providing new construction a17 the additions and planned are actually completed. There is however, of travel'agencies a definite shortage, and tour operators to handle the needs present tourist arrivals. of Belizees Direct and indirect employment in the tourism totals less than 20% industry of the Belizean workforce, and the level of and experience is the training relatively low by comparison to other countries Given in the region. the current level of tourism and the lack absorb of short-term capacity more, existing efforts to to promote and market destination Belize as a tourist are sufficient. In the long term, however, concer-rate Belize will want on developing a niche to as one of the world's special prominent sites interest tourism including for diving, natural history, hiking/trekking, and

4 adventure tours. In addition, and perhaps of more importance eventually, will be international recognition of Belize as a prime site for Mayan archaeology. For tourism purposes, Belize will offer three levels of Mayan-oriented facilities: the existing sites which have been reconstructed, such as Altun Ha and Laamanai; sites which have been cleared but not rebuilt, such as Chan Chich; and a world-class, ongoing archaeological dig at Caracol. This collection of sites, if properly maintained and marketed, will place Belize in the category of Mexico and Guatemala au an archasological tourist destination. USAID currently supports two projects in Belize which provide direct assistance to tourism in the areas of tourism promotion and archaeological excavation and has provided grant funding for training of private sector tour guides. Given the nature of the tourism sector, virtually all USAID support programs have or will have at least an indirect beneficial effect, whether they support agriculture, infrastructure or balance of payments. From the standpoint of this assessment, however, it is felt that USAID'a efforts to assist tourism developmrgnt should continue to concentrate on support for the private sector through increased training, support to the public sector through promotion of archaeological-driven tourism, and joint assistance and support for water/sewerage improvements in San Pedro. The other needs of the Belizean tourism sector, both public and private, cannot be directly affected by USAID gl.ven current budgetary constraints. They can be addressed, however, in cooperation with the Belizean Government, the local private sector and donor agencies. USAID can and should take a leading role in promoting joint discussions of and collaborations on tourism-related issues. Specific areas for USAID action in the short and medium-term include: - hosting or co-hosting regular meetings of all donor representatives; - support for water/sanitation improvements in San Pedro; - support for a Mayan history conference in Belize) - increased training assistance for the private sector; and - increased support for the Tourism Ministry/Archaeology Department in training, materials and infrastructure.

5 I. CURPRET ENVIRONMENT

A. Socioeconomic Znvironment

Belize is a small country of 23,000 square kiloniaters and approximately 170,000 inhabitants. The size of the economy mirrors that of the population, with a GNP of US $190 ,millicnand a labor force of 55,000. While not in the dire financtal straits of many of its Central American and Caribbean neighbors, Belize still suffers both a shortfall,of government revenue and a lack of capital for the private sector. Even with its relative underpopulation, the country has an unemployment rate of betwean 15 and 17 percent. The workforce itself is highly literate but unskilled and prone to high turnover rates. While primarily an agricultural country, the current government of Belize has determined tourism to be its number two priority sector for development. The government, in contrast to the previous administration, undtrst.ands the importance of the many socioeconomic benefits accruing from tourism, including: foreign exchange earnings, job creation, contributions to government revenues, .development of domestic industry and the potential beneficial lin:ages to most other sectors of the economy including agriculture, construction, handicrafts banking and services. In its Tourism Policy/Strategy Statement of 1988, the Government stated that its objectives with regard to tourism were to:

1) Increase stay-over visitors with particular emphasis on year round and long-stay visitors; 2) Maximize revenues per visitor; and 3) Maximize tourism net contributions in terms of net foreign exchange earnings, value-added contributions, employment, government revenue and linkage to other sectors.

6 Having decided to play a lead role in the development of tourism, the government seems aware of the current constraints and potential drawbacks of a significantly expanded tourism sector. On paper, at least, attention is being paid to the problems of an Import-dependent tourist industry, regional imbalances in development, negative impacts on the environment, destruction of the soil and cultural fabric of the country, and discrimination against other sectors of the economy in favor of tourism. While admitting that the pzivate sector has traditionally been the driving force in the tourism sector, the government has committed itself to providing or assisting in the development of such basic requirements as:

1) Upgrading and maintaining basic infrastructure and public sector services; 2) Preparing and protecting national tourism assets and sites; 3) Creating tourism circuits that interconnect with and complement those of neighboring countries; 4) Expanding the country, s international and regional air transportation networks; and 5) Enhancing the country's commercial tourism product to meet international standards.

In order to achieve its stated goals, the Government of Belize will have to work far more closely with the private sector, both domestic and foreign, than it has in the past, and the entire tourism sector will have to develop at least a minimally effective mechanism for coordinating policy and programs. An effective start has been made to rectify this problem with the establishment of, a number of tourism-oriented organizations representing both the government and the private sector. The Belize National Tourism Council, (BNTC) is composed of seven appointed public and private sector members, and acts in an advisory capacity to the Ministry of Commerce, Industry and Tourism.

7 The group has been in existence since June of 1987. The Belize Tourism Association (BTIA) Industry is a private sector organization representing close owners and operators to 300 of tourism related enterprises. It is relatively new is still going through and the normal growing pains associated with any new admirstrative structure. The Belize Export and Xnvestment Promotion (BEIPU) is a USAID-funded Unit private sector institution which has non-voting government representation on the BTIA board. BEIPu, as its name suggests, intended to is assist private sector development through the promotion and exports. of investment By providing arsistance to investors with processes governmental approval and general and specific information, BEIpu plays a useful, albeit at times controversial, role in the promotiun of investment in the tourism sector by foreign individuals and companies. Though all three organizations are in the early stages of their developmont, there is already an acknowledged need for the groups to improve coordination of their the activities. If the government is to achieve its goal planned, effective tourism of development, it will have to have the active, positive nupport that can only coms about through close cooperation. At present, however, the groups do not talk to one another except informally, and there no coordination is little or of programs, activities or even policy. All should three organizations address specific issuer which involve their separate or overlapping areas of interest and responsibility, such as the on-going, deep-seatod dispute between foreign and domestic investors in the tourism industry. The tourism industry in Belize is sharply divided between and expatriate local citizens owners, both residential and abventee. While operations almost all tourist in the country are extremely small by international standards, there is a perception by the domestic sector that foreign owners and operators are "wealthy* and have access to far greater resources than do local citizens. their part, the For expatriates feel that they are, in fact, small constantly on the businesses verge of financial disaster and overly burdened with duties and regulations. taxes, For the government's part, there is a very real concern that the private sector, both foreign and domestic, is accumulating wealth at the expense of the public sector through foreign exchange leakage and the avoidance of government revenue measures, such as the hotel occupants tax. Given the lack of access to capital, local investors have been at a decided disadvantage to foreign investors. Until the credit situation changes, they will remain at a disadvantage. Unless an organization such as BTIA steps in and plays the role of honest broker between the two communities, disputes over tourism-related issues like permits, licenses and development concessions will continue to fester and take on political instead of economic overtones.

B. Legislative and Regulatory

In an effort to achieve the goals it has set for itself, the Belizean government has begun to implement plans to help it more effectively monitor the tourism industry and establish firmer administrative control. With the expert assistance of a resident Tourism Advisor funded by the European Development Fund, the government is working on a master plan for tourism development and has already formed the Belize National Tourism Council and introduced a Planning and Marketing Unit. With the incorporation of the Belize Tourist Bureau into the Ministry of Tourism as a Touriam Department, the government is building a proper administrative foundation to address issues such as the impact of foreign exchange regulations, benefits to the economy, balance of payments constraints and the abolition of visa requirements. The government's primary stated task will be to plan the country's overall direction for tourism development, rather than let it continue in the haphazard and unsystematiq fashion in which it has evolved over the past decade. The government intends to determine in so far as possible the type, level and volume of tourism, as well as the levels and types of investment in the industry, both foreign and domestic. With the assistance of external donor agencies, the

9 government has begun to formulate a series of master development for Ambergris, and zoning plans the cther Cayes, and the six districts of the country. plans will determine These which areas are to be opened for further development which are to and be restricted, as well as general and specific regulations use, infrastructure of land requirements, building codes, environmental and ecological considerations. In the area of investment, the government intends to take a more role in creating active an investment climate conducive to a moderate balance between foreign and local investors in this sensitive industry. The primary tools attracting investors for to the industry are development concessions consisting tax holidays and of duty exemptions. The Ministry of Tourism intends to work closely with the more Ministry of Economic Development, which has authority for issuance of concessions. the Compared with other countries in the region, Belize does not suffer any particular disadvantage in attracting investors on the basis of concessions offered. Current concessions include tax holidays ranging from two to fifteen years and duty concessions which may cover all imported inputs including capital goods. Of greater concern to investors, however, is perception of fairness the in the granting of concessions, as both foreign and domestic investors in tourism feel one is favored at the expense of the other in the concession granting process. Current tourism and tourism-related legislation is under be adapted review and will and amended to fit the government's new activist policy. laws and Some thirty ordinances, ranging from Alien Registration to Wildlife been Protection, have identified as being of primary importance to the tourism industry. The statutes cover the following areas:

Aliens Landholding Land Utilization Land Acquisition Registered Land Estate Duty and Tax Aliens Registration Aliens Ordinance Labor

10 Land Development Authority Building and Planning Private Works and Construction Water & Sewerage Housing and Town Planning Monuments and Antiques Wildlife Protection Fisheries Forest Central Bank/Exchange Control Development Financo Cozporation Development Incentives/Fiscal Trade License Incentives Local Government (District/Boards) City/Municipal Council Clubs (Registration) General Registry Companies Income Tax Hotels Criminal Code Crime Prevention

11 II. INFRASTRUCTURE

A. Transportation Link3

International Air Transportatio. Latest available statistics show 46,660 arrivals by Services to air last year. Belize City include Eastern Airlines, with daily Continental, flights from Miami; with daily flights from Houston; TACA, with daily and Houston, flights from Miami and four times weekly from New Orleans. Tan/SAHSA Belize also serves from Miami, New Orleans and Houston. In addition, Tropic Air has applied to the Government of Belize for a new route from Cancun, Mexico to Belize City. From Europe to Belize, airlines must transit publicity via Miami. Increaoing and demand by European tourists for Belize operators may well impel tour and airlines to re-think their schedules for better access to the country. Round-trip rates appear reasonable to tour operators at some hotels present, though are overpriced compared with other tourism areas. will Airlin capacity have to increase to meet the growing demand from terminal North America. A new building is under construction to replace the present outmoded and inadequate facility.

Domestic AirTransiortato, Among several small private and charter airlines are Maya fly 7 to and Tropic. They 9 passenger twin and single-engine planes on frequent schedules Pedro and other principal to San cities in the districts: Corozal, Dangriga, Punta Gorda. Big Creek, They also offer charter and air ambulance service. considered reasonable. Rates are The companies are considering the purchase of additional aircraft to meet increasing tourist demand.

12 While private airstrips exist, additional runways will be necessary in order to provide easier access to major tourist sites. The air-strip at San Pedro, however, is dangerously close to the village and should be placed farther away.

Overland Arrivals and Road Conditions Although statistics do not show a breakdown by nationality of arrivals by road, 65,000 visitors were estimated to have come to Belize by land in 1987, accounting for 54% of all arrivals. Once inside Belize, visitors will find many of the roads in bad condition. In the wet season, secondary roads can be impassable. The Northern and Western highways are in fair condition. The Hummingbird and Southern highways are poor. Road conditions affnct tourism in many areas of the country, preventing access to Mayan archaeologicr.I sites and "bush" attractions and :sing obstacles for tourists.

Sea Arrivals

Tourist arrivals by sea were estimated for 1987 at 8,969--constituting 7.4% of total arrivals in Belize. Figures may be misleadiaig as traffic is mostly local and commercial on a ferry service between Punta Gorda and Honduras. Cruise traffic in the Caribbean is steadily increasing, however, and there are indications that cruise ships may return to Belize bringing significant revenues to the country. It will be necessary, however, for the Belize Government to improve the poor port conditions and establish better security measures for cruise passengers.

Ground Transportation

Private bus services are available from Belize City to major towns on the national highways. The fares are affordable, but it is apparent that future tourists will be expecting traditional tourist excursion buses or mini-buses to

13 take them to the major Belizean sites rather than public transportation. Taxis and other care for hire are available, but daily rates are high, ranging US $50 upwards. from Most cars are older, large models not always in top condition. In many cases, four wheel-drive vehicles are necessary to traverse the secondary roads.

B. Public/Private Servces water sewers electricit etc.) The serious water and sewer problems of the San Pedro were stressed by those interviewed. all Fear has been expressed of - possible epidemic of hepatitis or even cholera. Such illnesses would impact most unfavorably on all future tourism in Belize. Some private hotels farther out from San Pedro have solved this problem by use of sea water for toilets, but the overall problem needs immediate attention by the authorities. Electricity coats are very high, and service is erratic. Hoteliers complain about the cost to their business due to the damage of expensive, imported equipment by frequent power surges and failures.

C. Accommodations Belize has been described as a country with many small "mom and pop" hotels. When the Ramada Inn is opened, ac expected, on January 1, 1990, it be the largest will hotel in Belize. But the charm of Belize lies establishments in the smaller with the number of rooms ranging from 5 to 44. Most of the hotels are fully booked in the high season; some even have been overbooked. The lack of sufficieni rooms and the future arrival of the Ramada has prompted several hotels to plan or commence the building of additional rooms and amenities. Statistics on hotel capacity in Belize vary. The 1988/89 listing of hotels by the Belize Tourist Bureau shows some 1,250 rooms in the entire country some properties with in various districts not reporting. Belize City, with 335 rooms, and San Pedro, with 314, have the largest number. Increases in the future, are msot likely, and it will be critical to meet the expected demand for tourist

14 accommodations.

Entertainment Organized entertainment is not readily available in Belize. There are discos in Belize City and Belmopan, and a dance troupe which could be used not only for tourist entertainment in Belize City but on future tourism promotions abroad. The real enjoyment of tourists in Belize lies not in after-hours entertainment such as found in other countries but in the relaxed, casual and friendly life styles of the Belizeans themselves. A few hotels have swimming pools; others will add them. There ire very few tennis courts in all of Belize.

D. Travel Agencies/Tour Operators Eight travel agents are listed in the Belizean Business and Travel Directory. For the incoming tourist without advance tour or sightseeing plans, it is difficult to find the packaged local and country tours available in other tourism-minded cities and countries. Tours are arranged on demand and prices depend on the size of tours, i.e. one person alone pays a high price. A leading travel agent indicated that packaging half-day and full-day tours has buen largely non-existent until recently. The future wave of tourists will make it imperative and profitable for some agencies to produce ready-made packages for sale. There are, however, many organizations which offer boat charters for fishing and scuba diving among - the best to be found anywhere. Mountain Equestrian Trails and othera offer an excellent service for riding on mountain and jungle trails. There are many bird-watching expeditions and nature trail trekking available (many arranged by hoteLs for their guests), as well as visits to archaeological sites, which may well to the i_=t interesting of all types of adventure travel.

15 Some local travel agents represent agencies and tour operators United States. Relatively in the few major tour operators are setting up packages Belize. As the publicity for on Beli2;e increases, though, there will be many more tour operators and travel agents selling this country; many will seek out agencies in Belize to handle their clients.

E. Tourism Emloyment and Tranini Direct and indirect employment in the tourism sector accounts 9,000 workers currently for about and is projected to rise to some 23,000 by 1995. tourism expands, employment As opportunities will increase in the area accommodations: hotels, of guest houses, lodges, condominiums and facilities such floating as cruise ships and dive boats. Adcitional employment generated in the areas will be of ground an,' air transportation, ancillary services, entertainment, souvenirs and handicrafts. The increased demand for employees in the tourism trained, sector will call for a experienced cadre of workers which does not exist of today. The opening the planned Ramada hotel in 1989, alone, will require as many skilled workers as the current combined total of all the major hotels in Belize City. Significant training programs surpassing those in existence will have to be put in place in the next two years to provide the thousands of new wor':.ers required by the industry by 1995. Members of the Belize Tourism Industry Association (BTIA) have a 6-week training initiated course for tour guides with field trips to sites appeal. This course of tourist has elicited much interest and enthusiasm. (It been criticized by has also members of BTIA in districte outside of Belize is perceived City, as it as a hardship for small hotels or agencies to the lose an employee for training period.) It is a start, however, and should be followed up by training sessions, preferably other in the form of workshops or conferences held in the other districts as well as in Belize City.

16 III. PROMOTION AND IARKETING

A. Current Situation

The promoting and marketing of Belize as a tourist destination has been traditionally the purpose of the private sector, due to the lack of interest by the previous Government and the lack of resources by the current one. In view of the present capacity to house, feed, transport and entertain visitors, there is little or no need to substanti&lly increase promotional efforts for Belizuan tourism in the immediate future. Current advertising levels in the scuba diving media are suffici-nt to maintain interest at supportable levels fcr the water­ based tourism sector, and the recent USAID program to develop and provide promotional materials ahould meet the short-term demand for hrochures and maps. The major problem at this time for Belize is, surprisingly enough, the danger of being oversold. In the last year, Belize has become one of the "discovered" areas in the US travel and tourism media. Misinformation about Belize is rampant in the industry and articles such as the recent Tampa Bay Magazine story, showing fashion models on Mayan ruins and touting the "beautiful beaches" of Belize, are in danger of heightening expectationa about both the attractions and capacities of the country. In addition, a major documentary -ilm on Caracol will be shown on US TV in 1989, which will very probably result in a major, immediate increase in the number of visitors wanting to see the Mayan sites.

Given the current level of infrastructure development in Belize, a major increase in tourists could be disastrous. The Belizean Government will have to take immediate steps to prepare for both higher levels and different types of tourists.

Of greater concern to the private sector at this time is the lack o2 a unified promotional strategy for Belize for the coming years. Currently, occupancy levels are high and projections for the next season are higher. Hotel

17 operators know, however, that occupancy rates can fluctuate, and they are concernea that the investments they are currently making in new and expanded facilities will be hard to justify without sufficient long-term promotional efforts to maintain high levels of usage.

B. Special Interest Tourism

1. Water-Oriented

The bulk of Belize's tourist arrivals have traditionally gone straight to the cayes, primarily Ambergris, for fishing, diving and relaxation. Belize has an excellent reputation as a water sport destination, though ar, the lower end of the scale when compared to the competition from sites such b's the Cayman Islands, Mexico and the Netherlands Antilles. Barring a health crisis or airplane disaster at San Pedro, water-oriented tourism will contitiue to provide the main at;action for Belize for the near term at virtually no cost to the government, due to the advertising and promotional efforts of the private sector.

2. Natural History

Increasingly, Belize is becoming known internationally as a destination for nature-oriented tourists, such as bird watchers and wild life photographers. The enlightened policies of the government in terms of environmental protection and the estalishment of the various wild life and marine preserves, have received international attention in environmental and wildlife protection circles and publications. Much more could be done, however, to raise awarenens in both the U.S. and European markets of the attempt by Belize to protect its environmental resources and offr non-destructive tourism opportunities. This promotional efifort need not be expensive, as it could rely on articles and publications done by both the international environmental community and the

18 travel media. Additional costs to the public sector in Belize for promotion should be minimal.

3. Hiking/Trekking

The market for hiking and trekking in Belize is still in its infancy and will probably remain a relatively small section of the overall tourist sector. Backpackers spend les money and have the least beneficial economic impact of any class of tourist, oxcept for spelunkers. In the abuence of a well-developed and maintained network of trails and camping facilities, Belize iL unlikely to attract large numbers of hikers in the near future. Trekkers, on the other hand, can be a valuable source of income, and tnurs such as those offered on horseback in the Maya Mountains are extremely attractivo to younger, up-scale tourists. Promotional efforts should be increased for this sector, but care should be taken to avoid oversellinq beyond the capacity of the operators to absorb clients..

4. Adventure Tours

Unlike its major competitors in the Caribbean, Belize has the opportunity to offer a range of unique "adventure" tours, including caving, canoe and float trips, wildlife observation, mountain and forest trekking, game fishing and hunting. By their very nature, these will tend to be packaged tours, and can, if property managee, appeal to a wide range of tourists. Belize's spectacular scenery and unspoiled areas can remain undamaged with the relatively light environmental impact of this type of to, rism. As with hiking and trekking, adventure tours will primarily be promoted and marketed by the private sector, with little need for government assistance or involvement.

19 C. Archaeology-dr.ven Tourism

1. Developed Sites Belize currently has a number of Mayan sites which have been excavated and consolidated over the years; they can be viewed by tourists as examples of what the ancient cities once looked like. While not of the size or caliber of Mexican or Guatemalan sites such as Chichen Itza or Tikal, the Belizian ruins are of interest to visitors who have never seen a restored Mayan site. Locations such as Altun Ha, Xuna itunich, Lamanai and others once drew significant numbers of tourists, but due to a number of factors, including lack of funding, these sites have been allowed to deteriorate to the point where they are, at present, not suitable for serious promotion as tourist sites.. A relatively amall effort to clean up, sign-post, and administer these sites would return them to their role as major tourist attractions.

2. Chan Chich

The ruins at Chan Chich, together with the recently opened resort at the site, will soon become a major draw for tourists. Unlike the consolidated ruins, Chan Chich has not been reconstructed or even excavated. Instead, a private developer has cleared the heavy overgrowth from one section and reseeded the with grass site to stabilize the mounds. Adjoining sections have had the undergrowth cleared but maintain the jungle canopy overhead. Visitors to the site are able to see what a major temple complex looks like to an explorer and to visualize what it could become with reconstruction and consolidation. The resort on the site is a first-class operation and will rapidly draw the kind of Un-scal" visitor that Belize should try to attract.

20 3. Caracol

The Mayan ruins at Caracol in the Mountain Pine Ridge area are currently being excavated and consolidated by a team of archaeologists from the University of Central Florida. With support from the government of Belize and USAID, this site will be developed over the long term as a tourist attraction which should rank with major developed sites in Mexico and Guatemala. At present, virtually inaccessible to the ordinary tourist, Caracol dwarfs any other site in Belize. As it is developed over the coming years, it will act as an engine which will drive Mayan-oriented tourism, and can focus the development of the entire San Ignacio/Mountain Pine Ridge area. (See Appendix C)

4. La Ruta Maya

The recently proposed concept of a Mayan tourist circuit encompassing sites in Mexico, Belize, Guatemala, Honduras and El Salvador is a tremendous potential boon to Belizean tourism. That segment of the tourist population primarily interested in Mayan ruins comes to Belize only an an afterthought, or as transients going to or from the sites in Guatemala or the Yucatan. The combination of the development of Caracol and the refurbishing of Xunantunich and other sites will make Belize both a primary destination and a major stopping place on the Ruta Maya. It is crucial that Belize stay involved in discussions and studies of the Ruta Man project to avoid being overshadowed by its larger neighbors. Luckily, the concept is in its early stage and there is time for Belize to maximize its involvement and its ultimate benefit. (See Appendix D)

21 D. Cruise Ship Tourism

The re-development of cruise ship tourism holds great promise for Belize in terms of the most cost-effective utilization of both its coastal and inland -resources. Once a regular port of call for Caribbean cruise ships, Belize has only recently begun to seek out cruise line traffic after a long hiatus. The Caribbean in general is in the midst of a cruise ship explosion which is rapidly overburdening the normal island ports of call. In addition to the ships already in place in the region, some twenty ships formerly used in the Mediterranean are on the way to the Caribbean, with more on order from European shipyards. Cruise ship passengers are in many ways the best possible tourists for a country like Belize, with limited hotel capacity and no desire for vast enclave developments like Cancun. Cruise ship tourists bring their own hotel rooms with them, and they want to spend money. The most recent figures from the Caribbean Hotel Association show that the average cruise ship passenger spends between US $75 and $150 per day per stop. St. Thomas, in the US Virgin Islands, for example, currently receives 5 cruise ships a day, 365 days a year. The 700,000 passengers they carry spend an average of $110 each in some 400 stores catering to their needs. Cruise line tourists, therefore, contribute some $77 million directly to the economy of St. Thomas. Even Grenada, with one small dock and virtually no tourist shops, receives some 128,000 visitors from 260 ship calls each year. In addition to the money pumped directly into the local economy through purchase of handicrafts and souvenirs, tours, taxis, food and beverage sales, and entertainment, cruise ship tourists provide a direct and easily monitored source of government revenue in the form of landing fees levied per visitor. In Haiti, for example, one cruise line calling weekly at a northern beach brings 2,000 passengers who pay US$4.00 per head for the right to use the beach. On

22 an annualized basis, that one operation provides the government of Haiti with direct revenue equivalent to the entire budget allocated to Belizean tourism. The constraints to cruise ship tourism in Belize are primarily ones of infrastructure. There are at present no suitable facilities for large cruise ships to call at Belize City. The deep water port is a cargo facility and tourists landed there would have to make their way through a less than picturesque section of the city to the main shopping area. Passengers could be lightened in from ships anchored far offshore, but at present only the dock at the Fort George is suitable for receiving tourists. Once ashore, the tourists will find a shortage of taxis, buses and tour operators to get them out of the city and into the countryside. One large cruise ship depositing several thousand visitors at one time would overwhelm Belize's current capacity to transport, feed and entertain tourists.

23 IV. CU(STRAINTS

A. Accommodations

At present (1988-1989 tourist season), Belize has barely enough hotel rooms of acceptable quality to accommodate current tourist demand. New construction and expansions of existing facilities should be adequate to meet the demand for the coming year as well. Beyond that, however, there will be an increasing need for new rooms in all parts of the country to handle the expected increase in tourist volume. The Government of Belize prefers to stress the development of small, locally owned facilities to provide accommodation for tourists, and this makes eminent sense from the standpoint of the social dynamics of the country. The major constraint to this approach, however, is the lack of access to funding for local entreproneurs. Historically, hotels have been developed by foreign investors with their own sources of credit, limited though they have been. Currently in Beliza, the local investor has few options if he wishes to compete or joint venture with the foreign owner/operator. Credit in Belize is expensive, short-term, difficult to qualify for, and time-consuming to obtain. In order for local entrepreneurs to meet the coming demand for quality accommodations, they will need access to reasonable funding and assistance with the application and approval process.

B. Roads

The quality of the road network in Belize is the most frequently mentioned constraint on the development of tourism. Ground transportation affects every area of tourism--from the excessive wear imposed on vehicles to the general impression made on the individual visitor. The two major highways are adequate for current needs, but once off those roads the quality of the road surface

24 drops rapidly. Due to lack of budgetary resources, the government-maintained roads are in a constant state of deterioration, some to the point of impassibility, depending on the weather. If the government's plan to reduce pressure on the marine environment by drawing tourists to the inland attractions is to be realized, substantial maintenance must be done on existing roads;in some areas, new roads will have to be constructed. As road construction is an extremely costly undertaking, ways to minimize both the cost of construction and maintenance should be sought. Private roads, Jn some cases, are far superior to the public roads of the Blue Creek area. Some form of collaboration with the private sector should be pursued in order to leverage the government's scarce resources, through tax incentives, import duty rebates, shared fuel and salary costs for government work parties, etc.

C. Tours, Tour Operators and Facilities

There are, at present, only a handful of tour operators in Belize offering anything approaching the quality or convenience offered by competitor destinations. This is a bid growth area and a great potential opportunity for Belizean citizens that does not require a large amount of capital. Education and training are the main constraints to starting a true business, and current deficincies in these areas can be addressed through the training mechanisms currently being put in place by USAID/Beliza. The secondary restraints to the development of a strong local tour industry are the duties and taxes which the operators face when importing the equipment they need. Ideally, the government should waive, rebate or reduce the fees which the operators must pay on vehicles and equipment destined for direct use in the tourist industry. The current system favors the foreign investor who can afford the extra cost of duties and taxes on imports more easily than his/her Belizean counterparts.

25 D. Tourism/Archaeology Personnel and Budget

Like most ministries and departments of the Belizean Government, Tourism and Archaeology are forced to operate on starvation-level budgets. This creates a vicious cycle in which there is no budget to provide the services necessary to upgrade the infrastructure required to attract and keep the tourists and not enough revenue from the tourists to fund the necessary budget. Like many governments, the Belizean system requires that all revenues go into a general fund rather than to the Ministries that have earned them. In view of the tight financial situation of the Government, it is unlikely that there could be a decision to free up financial resources for tourism and archaeology from current receipts. Consideration should be given, however, to instituting mechanisms to maximize direct receipts from tourism, particularly Mayan oriented tourism, through park fees, surcharges, contributions, etc. and to channel those funds, either completely or partially, to the Tourism Ministry. A well-designed program of this type could provide substantial revenues to the Ministry and perhaps even make it self-sufficient. Closely tied to the budgetary constraint for the Ministry and Department of Archaeology is the lack of personnel. The Archaeology Department, for instance, has over 400 known Mayan sites and virtually no staff to even visit, much less examine or maintain them. As a result, looting is widespread and the national treasures of Belize are being lost forever. Thought should be given to the utilization of Peace Corps Volunteers, IESC personnel, students, both foreign and national, and even tourists on "working" vacations.

. Coammunication and Coordination

There is currently in Belime little or no regular coordination of programs among donor organizations, or between the private sector organizations and governmental entities. As a result, there is a surprising amount of

26 misinformation about the tourism sector for such a small country as Belize. The removal of this constraint is relatively simple and inexpensive as it involves the instituting of processes and mechaniams for disseminating information and coordinating programs. Something as simple as a regular monthly meeting of representatives of all donor organizations to compare notes on current and planned programs would go a long way toward alleviating the problem. Similar efforts should be made to inform the private and public sectors of what the donors are doing and vice versa.

F. Licenses, Taxes, Duties and Concessions

In Belize, as in every country in the world, the Government is viewed by the private sector as a hindrance rather than a help. In particular, it is widely felt that the Government derives substantial revenues from the fees it levies on tourism, but returns nothing to the industry. In addition, it is commonly perceived that the concession process is arbitrary and in some cases discriminatory. For instance, for2Ign investors feel that they are discriminated against in favor of nationals, particularly in the area of licenses to operate, and Belizean investors feel they are discriminated against in favor of .the "wealthy" foreigners who can afford the time and expense of the concessions process. As is often the case, both sides are right and both are wrong. The Belizean Government appears to be doing its best to operate in a fair, even­ handed manner, but is not effective in getting its message out to the tourism community. Assuming no immediate changes in the type and level of duties and taxem levied, the government could defuse the situation by meeting more frequently and coordinating more closely with the private sector in order to enhance its image.

27 G. Safety

While crime in Belize Is nowhere near the level of the US or competing tourist destinations in the region, there is currently a perception that crime and personal security are a problem for tourists in Belize. Regardless of the actual size of the pr-blem, the mere fact that it exists now is cause for concern. An atmosphere of fear and uncertainty will quickly drive tourists away if steps are not taken to deal with the situation. Luckily, the problem so far is minor and could be dealt with by increasing police patrols and street lighting. The private sector is extremely eager to deal with the problem quietly and effectively, and would probably be receptive to co-financing security upgrading with the Government.

H. Signs and Signpoeting

A minor constraint, but an irritating one for tourists, is the sorry state of signposting throughout Belize. For the local citizen who knows his way around, it is not a problem; but for the newcomer, particularly in the absence of tourguides, Belize City, for example, can be a confusing maze, especially at night. Here, as with safety, the private sector is aware of the problem and willing to work with the Government to solve it. Government, for its part, is also aware of the problems and has acknowledged the need for its rectification in its Tourism Strategy Statement.

I. Handicrafts/Souvenir,

A major source of revenue from a country's tourist industry is the saiG of souvenirs. Tourists want to spend money on items to take back home and will buy virtually anything associated with the country. The amount to be spent, of course, will vary with the quality of the product and its availability. Cruise

28 ship passengers in the Caribbean, for example, spend between $75 and $125 per stop, with up to 50% in some cases being spent on handicrafts and non-duty free souvenirs. Belize, unfortunately, has relatively little to offer the visitor in the way ok locally produced handicrafts or souvenirs. This is not to say that there are no capable artists, artisans or manufacturers, but rather that there is a lack of experience in production, quality control, marketing and retailing. For what is produced, prices are high; quality is generally low; and the street vendors compete directly with the hotel shops for the same products. In addition, import duties are high on products brought in to be sold to the tourists, forcing the retailers to raise prices even higher. There is simply no reason for a tourist to pay a higher price for a Mexican blouse in Belize City than he just paid in Cozumel. In light of the probable increase in Mayan-oriented tourists in the near future, Belizean artisans should be concentrating on the production of Mayan­ related products such as hieroglyph rubbings, carvings, pottery replicas, T­ shirts, paintlngs, posters and the like. At present, there is very little available on the market with a Mayan motif that is not from Guatemala. Efforts should be made during the coming year to seek out new designs, encourage new or revised production, build stocks of products and train both artisans and sales people.

J. Medical Facilities

The lack of modern facilities ii!not an active restraint to tourism at the current time, but it is a potential long-term problem. Belize has been lucky not to have had a major health or accident tragedy so far. Had one occurred, and the travel media publicized the fact that for serious medical treatment visitors must leave the country, tourism levels could be seriously affected. So far, Belizean tourism has been the province of the relatively young and fit.

29 As the tourist mix changes, however, to include more of the very young and older travellers, medical facilities will become increasingly important.

L. Customs Procedures/General Attitudes

As with medical facilities, customs procedures are not a major constraint at this time but could beccme one if no changes are made. Compared to the islands of the Caribbean and to the Mexican resorts, tourist entry into Belize is a chore rather than a pleasant and exciting beginning of a vacation. The new airport facility will do much to help the impact of the first time visitor's arrival, particularly if there are signs and posters actively welcoming the tourist to the country and a cheerful helpful customs and airport staff to speed the arrival process. By land, from Mexico, the entry is even worse with the impression of a border being guarded from invasion rather than a vacation destination eagerly awaiting foreign visitors.

CONCLUSIONS Having listed a number of major constraints to the development of tourism in Belize, it must be pointed out that none of these are new or unknown. The Belize Tourise Bureau, in its detailed and comprehensive strategy statement for an Integrated Tourism Policy, has noted the constraints and proposed courses of action to be taken. While the Government of Belize has stated its willingness and intention to act on its master plan for deqelopment, the reality is that there are not sufficient financial resources available to the Government to achieve its ambitious goals. In the area of accommodations alone, the government estimates that it would require as much as US $80.0 million to rehabilitate, expand and construct the 2,500 hotel rooms needed by 1993. To improve and expand the infrastructure of roads, ports and airports, to provide new and more adequate ancillary services such as medical facilities, water and sanitation, and to

30 continue the consolidation and access improvement of Caracol and Other Mayan sites, will call for an even greater investment of capital. Total costs for all development pro-rsed by the Government's strategy statement over the next five years will come to well over two hundred million dollars. Given the highly unlikely chance of that much money being made available to Belize by the international donor community, it will be crucial for the Government to coordinate its master plan for tourism development with the dnors at the earliest possible time to identify the most essential elements of the plan. Piecemeal funding of isolated parts of Belize's development program will no longer suffice in the coming era of development assistance cutbacks and increased reliance on private investment. If Belize is to achieve even a fraction of its' stated goals, it must approach the funding process with a united front of public and private sector interests, including both domestic and foreign investors. A master plan is an excellent starting point, providing all agree with its premises and proposals.

31 V. ROLE OF USAID

A. Accommodation

There is little USAID/Belize can or should do to increase or improve the level of tourist accommodation in Belize. This is rightfully the task of the private sector and any assistance should come from the Belizean Government in the form of tax and duty relief, concessions, and credit facilities for Belizean citizens. One area in which the Belizean Government could use assistance is in the sourcing of concessional funds for effective lending to local businesses. USAID consultants could be made available under existing contracts to research the subject and advise the Government as to the best means of locating such £unding.

B. Prcewaion/Marketlng

The recent USAID project being done by Pannel, Kerre, Foster is more than adequate for the promotional needs of the Belizean Government at this time. Over the long term, however, more printed material will be needed. Given the present levels of occupancy, Belize will not need to concentrate on mass marketing, but rather on the specialized areas of tourism identified earlier, with the object of creating a market niche and upgrading the quality of the tourist to maximize the financial benefit to the country. Promotion needs to remain just a step ahead of capacity.

C. Infrastructure

Apart from roads, the only infrastructural needs that USAID should probably consider assisting would be the water and sanitation facilities for San Pedro.

32 This is an immediate need and one which should be considered together with other donors and the private sector. A team of consultants from the UNDP arrived in Belize in December, 1988 to begin work on a master plan for development of San Pedro, and their report is expected early in 1989. USAID should monitor the team's progress and work with the Government and other donor agencies to organize the funding and construction of the water and sewer component of the master plan.

D. Environmental

Belize recognizes the need for environmental preservation and the value of environmentally based tourism. There appear to be no immediate needs that USAID/Belize can play a role in filling, beyond assLtance in coordinating effective communication with and utilization of the various international environmental and wildlife groups.

R. Training

Training is a universally recognized need in Belize, and the USAID programs in support of training are well xwegarded and eagerly sought. Current programs being offered by the Belize Institute of Management (BIM) including tour guide training programs being conducted with BTIA, are seen as a highly useful comionent in the development of a mature tourist industry. These programs should be expanded in conjunction with the IESC and made available to other regions of Belize outside Belize City.

F. Business Development

The business development efforts of USAID through BEIPU were slow getting started, but are now seen as a highly useful tool. The tourism industry should

33 be spawning a number of new and expanded ancillary businesses to support the growinr- number of hotel rooms. Local industry should be supplying fittings, furnishings, food, souvenirs and handicrafts to the hotel sector. Local entrepreneurs should be providing entertainment, tour guides, dining facilities, and transportation directly to tourists themselves. The USAID Mission should be encouraging the development of small and medium-sized local businesses through information sharing and training, using the existing mechanisms of BEIPU, IESC and BTIA.

G. Specific Tasks

1. Short Term

Coordination - There is currently no mechanism, formal or informal, for coordinating the programs of the various donor agencies that work in Belize. USAX'D should play a lead role in organizing regular monthly meetings with key representatives of the small donor community, at which time programs and activities could be discussed and information shared. The coordination of programs, at least In general terms, would logically follow from such meetings. Initially, such gatherings should be kept informal and should entail no additional burden on USAID's budget, though staff time would have to be appropriataly allocated.

Representation - If allowed by the Government, a USAID representative should sit in on selected meetings of the Belize National Tourism Council (BNTC) as an observer. This would allow USAID/Belize both to find out what the current thinking is on tourism and to inform the members as to USAID programs and their potential impact on the BNTC and its work. Again, this should require no additional USAID expenditure other than staff time.

34 Liaison - As in the case of the BNTC, USAID should develop a closer relationship with the Belize Tourism Industry Association. This nascent group is well on its way to becoming the largest and most powerful of the private sector organizations in Belize, and it will be crucial for USAID and the other donors to coordinate with it. As a start, the Mission should request to have a representative present at BTIA meetings as an observer, or at least to assign someone to act as liaison to the association.

u- The "Ruta Maya" concept of a tourism circuit encompassing Mexico, Belize, Guatemala and Honduras represents an excellent opportunity for Belize to begin to coordinate its tourigm strategy and development plans with those of its larger neighbors. Even if the concept never develops into the grand program currently envisioned, it will certainly draw attention to the region and offer the possibility of attracting large-scale funding from international donor agencies. it is crucial that Belize remain a part of all Ruta Maya discussions and that USAID play a role in helping to coordinate those activities. As ona of the major participants in the Ruta Maya initiative is the National Geographic Society, headquartered in Washington, D.C., it is both logical and desirable that USAID develop close ties with the Society to link the assistance being given archaeology-driven tourism in Belize with the larger Ruta Maya project.

2. Medium Term

Water and Sewage - Depending on the results of the UNDP-sponsored master plan for development of San Pedro, USAID should consider proposing some program of joint funding for the installation of a water and sanitation system for the current and projected hotel development on Ambergris Cay.. The situation at San Pedro is the most serious and potentially dangerous problem facing the tourism industry in Belize, and yet paradoxically, the easiest to solve. Water and

35 sewage treatment for a small community like San Pedro is a low-tech, relatively inexpensive project which could be put in place in less than a year. Given the very real likelihood of an outbreak of waterborne disease in San Pedro and its subsequent effect on Belizean tourism, this project should receive top priority from the donor community.

Academic Conference - In the interest of promoting archaeological-driven tourism in Belize, USAID should propose and support financially a serious academic conference on recent developments in Mayan history to be held in Belmopan in the spring of 1990. Such a conference would be the first of its kind ever held in Belize and, by its very nature, would put Belize on the map in the world press, providing sufficient background work has been done. Drawing on the findings and experience of Drs. Arlen and Diane Chase of the University of Central Florida, such a conference could highlight the work USAID is currently supporting at Caracol, as well as the nationwide work of the Belize Department of Archaeology. In addition, the longstanding issue of a museum at Belmopan could be discussed in both an academic and international donors forum. Central to the theme of the conference would be the Ruta Maya concept, and the entire question of the impact of tourism on archaeology and vice versa. Support for a conference of this type would be widespread and funding could be sought from a variety of universities, museums, magazines, international donor agencies and individuals over the coming year. The date of April, 1990 is suggested to allow sufficient time for proper planning and to assure that the site at Caracol would be accessible by road to conference participants.

Development Effect Study - As part of the upcoming USAID contract on export and investment issLstance, a study should be made of the actual development impact of archaeology, ujLng the Caracol project as a case study. Such a study should examine the immediate, medium and long-term economic effects of a major archaeological excavation and consolidation on Belize and examine strategies for

36 its integration into a national master plan for tourism development and promotion.

Materiala Reprint - Given the dearth of acceptable printed material for visitors to the Mayan sites in Beli.-i, USAID should consider supporting the purchase of reprints of existing brochures and pamphlets not currently available in Belize. In the case of Caracol and Santa Rita, for example, high quality, colored brochures were printed for the Orlando Museum of Art in 1987. Reprints of these brochures would be extremely inexpensive compared to the cost of developing new material. Simple research should uncover a variety of similar materials which could be made available to the Department of Archaeology, as well as the Belizean private sector, at reasonable cost. Revenues from the sale of these materials should more than cover the cost of reprinting.

Videotapes - The recent commercial documentary film about the "Lost City of Caracol- is an excellent promotional piece on Belize, and when it is shown on U.S. television scmetims in 1989 it should motivate the non-water sport sector of Belizean tourism to visit archaeological sites and stay in facilities near those sites.

Caracol Access - One result of the release of the film about Caracol will be the desire of tourists actually to visit the site. At present, the site is isolated and difficult to reach without a four wheel-drive vehicle or helicopter. In addition, there is little to see other than the digging itself. With major funding support of USAID, however, there will be, in the relatively near future, substantial consolidation work to be viewed by visitors. USAID should, in cooperation with the Department of Archaeology and the University of Central Florida team on site, develop a plan to improve the overland access to the sites and accommodations for visitors. Given the high coat of road and infrastructure development, coordination with other donors will be essential. As the Caracol

37 site development will undoubtedly be part of the overall master plan for tourism development, USAID should be working closely with the EEC Tourism Advisor -o be certain that all plans are coordinated properly.

TraLninq - As the training programs currently being supported by USAID are very well regarded by both the public and private sector in Belize, it would be advisable to increase the size and scope of those programs designed to develop the human resources of the tourism industry. Through BIM and the IESC, USAID should offer a range of training support to BTIA of the type recently provided to local tour guides. Such training should focus on getting the training out to the recipients rather than having the trainees come into Belize City. Local and regional training sessions could be offered by a revolving core of trainers or IESC volunteers depending on the type of training needed.

Information - Similar to training, but more in the line of general information, a program to advise the private sector of the range of services and support mechanisms available to them should be offered, most probably by BEIPU. Outside of Belize City, the operators of the tourist industry have little or no experience with or faith in the public sector's programs to assist them. A series of geaeral awareness seminars, informally delivered, would give the hotel and tour operators the basic information they need in order to ask the proper questions and begin the process of acquiring funding, training and other forms of assistance.

3. Long Term

Currently, USAID programs of support for the tourist industry in Belize are focusing on the development of human resources and the rehabilitation and development of the archaeological treasures of the country. Assistance to such organizations as BEIPU, BIM and BTIA is short and medium-term by its very nature

38 and has as its goals the ultimate self-sufficiency of those administrative structures. Long-term development of the tourism sector will depend on the development and upkeep of primary infrastructure such as roads, airports and support services. Of these, roads are the greatest obstacle to maximizing the beneficial impact of tourism. Long-term USAID support should concentrate on problems of road construction and maintenance and should be provided in close coordination with other international donors. The Ruta Maya program provides a unique and timely mechanism to mobilize international support for a major road building effort, and offers USAID a ready-made coalition within which to operate.

39 APPENDIX A

CONTACTS AND INTERVIEWEES Pedro Perez Project Officer - USAID

Belize City

Sigi Loeper EEC consultant, Belize Tourist Bureau Brian Hope Deputy

Denton Belisle Director, Belize Export and Investment Unit (BEIPU) Promotion

Janice Aguilar Director, Caribbean Holidays

Sue Williams Owner, Mon's Triangle Inn

John Searle Director, Belize Global Travel

SafnPedro -. 'Ambergri% Caye

Celly McCorkle Manager, San Pedro Holiday hotel

Iraida Gonzales Universal Travel

Larry Parker Reef Divers, Ltd.

Belize City

Steve Maestre Manager, Villa Hotel

Paul Hunt Executive Director, Port George Hotel

Trevor Roe Director, Maya Airways

Doug Erskine Partner, Pannell Kerr Forster

Victor Gonzalez President, Belize Audubon Society

Belmopau

Eugene Adolphus Manager, Circle A Motel

Mr. Tanti Manager, Convention Hotel

Caye"District mike Fleming Director, Cha Creek Cottages

Paulita Robson Co-director, San Ignacio Hotel Dangria

Terese Bowman Director, Pelican Beach Hotel

Orange-"Walk

Mrs. Urbina Director, Baron's Hotel

eoroz-l

Rosita Mai Director, Maya Hotel

Dahlia and Tony Castillo Manager, Tony's Inn

Coisej

Jenny Wildman Director, Adventure Inn

Bel ze--Cty

Lou Nicolair Director, Nicolair and Associates

Stewart Krohn Great Belize Production

Jean Shaw Manager, Mopan Hotel

Thomas Cooney Deputy Chief of Mission, US Embassy

T ledo- ­ Dstric-t

Peter Mahung Manager, Mahung's Hotel, Punta Gorda, BTIA Rep. Toledo

William Schmidt Travel Agent, Punta Gorda, BTIA Rep'. Toledo

Robert Whitehead Political Officer, US Embassy

Glauco Calzuola Resident Adviser, European Committee

Abel Lopez Belize Hotel Development

Sau"Pedro

James Azueta hol Chan Marine Reserve

Balmopan

Peter Thomson British high Commissioner

Allan Moore Archaeologist-Sites Belize City Ron. Henry V. Young Dep. Minister of Tourism Barry Bowen Local Businessman

Dr. Diane Chase Dr. Arlen Chase Assistant Professors and Directors, Caracol Project Sharon Bean Trade & Investment Services, Service Corps (IESC) International Executive Harvey Wallender Vice President, IESC Harvey Lerner Director, Louis Berger International, Inc. Linda Bautista Country Representative, IESC

OrangeWlk'Dstric-c Tom & Josie Harding Managers, Chan Chich Lodge

San-Pedro John Reitz President, Journey's End Hotel The Kruegers Directors, El Pescador Hotel

Bet ize- City Rober Palacio Roger's Car Rental John LLewellyn Director, Belize Mesoamerica Tours

Caye'Dfstr-rct Nancy & Larry Holtsman Mountain Equestrian Trails Donald W. Conrad Management Advisor, BIM Edward H. Carrette Senior Partner, Inter-American Hospitality Services (representing Ramada Inn) UO dA)6-ToJb. Dr. George Stuart . Archaeologist, National Geographic Society Wilbur Garret Editor, National Geographic Magazine APPENDIX B

TOURISM STATISTICS

(BELIZE TOURISM BUREAU) TOURIST ARRIVALS IN BELIZE 1981 - 1987

YEAR USA CANADA UK % INCR/OVER EUROPE OTHER TOTAL PREV. YR.

1981 23620 2150 1638 9477 27306 64201 1982 26255 1699 3009 5367 31037 67337 4.9% 1983 26928 2527 2002 2981 29791 64229 (4.6%,) 1984 27036 2799 2228 5910 50457 88430 37.7% 1985 33539 3893 6458 7456 42094 93440 5.7% 1986 38837 4420 8728 8483 33285 93753 0.3% 1987 45089 4562 9718 9130 52125 120624 28.7%

MODE OF TRANSPORTATION OF MTOURIST ARRIVALS IN BELIZE: 1981 - 1987

YEAR AIR OVERLAND SEA 1981 17421 27.1% 46244 72.0% 5360 0.9% 1982 28203 41.9% 38088 56.6% 1046 1.5% 1983 22828 35.5% 33176 51.6% 8225 13.1% 1984 28309 32.0% 55269 62.5% 4852 5.5% 1985 31985 34.2% 55090 59.0% 6365 6.8% 1986 52048 55.5% 40229 42.9% 1475 1.2% 1987 46660 38.7% 64995 53.9% 8969 7.4% ACCOMMODATIONS

BY AREA ­ 1985 ­ 1987

No. of No. of No. of Hotels Rooms Beds

1985 '86 '87 2985 '86 '87 1985 '86 '87 ze City 39 41 45 455 495 517 655 741 436 ze Rural 4 4 4 27 34 34 50 67 63 zal 8 7 7 101 96 100 163 125 160 re Walk 6 5 5 77 70 69 133 124 118 12 13 16 114 104 143 195 209 265 )pan 2 3 4 16 37 44 26 72 80 i Creek 6 4 4 62 34 46 103 74 82 L Gorda 6 7 8 42 49 60 67 84 97 ledro 38 41 37 295 331 353 538 618 689 Caulker 15 16 16 143 139 150 239 222 230 .ncia 6 10 10 34 63 66 60 93 105 4 6 7 75 67 71 115 105 104 146 157 163 1441 1519 1653 2344 2534 2729 Estimated Past Tourism Performance

Visitor Account Bona Fide Bona Fide Visitor Stay-over Visitors Avg. Length of Stay

1982 30.900 4.5 nights 1985 42.900 5.5 nights

1986 43.100 5.5 nights*

1987 55.200 7.5 nights

Tourism Expenditure Account Average stay-over visitor

Expenditure in Current Terms

1982 US$ 286.40

1985 US$ 273.40

1986* US$ 368.90

1987 US$ 374.10

CRTC estimated the average length of stay during the high season 1986 at 10.6 nights already.

NOTE: CRTC estimated the average visitor expenditure during the high season 1986 at US$689,65. Tourism Balance of Payment Account in Current Terms (US$ MIO).

Gross For. Foreign Net Foreign* Exchange Exchange Exchange Receipts Input Earnings

1982 8.85 5.69 3.16 35.7% 1985 11.75 9.96 1.79 15.2% 1986 15.90 10.81 5.09 32.0% 1987 20.65 14.95 5.70 27.6%

Government Directed Revenue Account From Tourism in US$ Current Terms

Hotel Park Airport Total Tax Direct Licenses Fees Tax Income

1985 117,500 1,400 2,000 429,000 549,900 1986 159,300 1,300 2,100 431,000 593,700 1987 206,700 1,400 2,200 552,000 762,300

NOTE: I. Hotel tax is substantially under collected. It is assumed that less than 50% has been accounted for by the accommodation sector. II. Also, the 1985 tax revision has not been executed.

III.. License fees need to be revised. IV. Increase in park fees required and also collected where the public sector is present.

NOTE: Net foreign earnings have been comparatively low due to high degree of earnings not channeled through the official Belize banking system. Tourism Direct and Indirect Employment Account

Accommodation Other Sectors Total Direct Sector Direct Indirect And Indirect

Mi o Mio Mio Man Employees Man Employees Man Employees Days Days Days

1985 0.945 2.590 1.890 5.180 2.835 7.770 1986 1.000 2.740 2.000 5.480 3.000 8.220 1987 1.087 2.980 2.174 5.960 3.261 8.940

Accommodation Sector Labour Productivity

Visitor Days Per Direct Employee

1985 0.25

1986 0.24

1987 0.38 TOURIST PROJECTIONS ESTIMATES

Visitor Account

Bona Fide Bona Fide Visitor Average Stay-over Visitors Length of Stay

1988 62.000 9.0 nights

1990 80.000 10.0 nights

1995 115.000 11.0 nights

2000 150.000 11.0 nights

2005 175.000 11.0 nights

2010 190.000 11.0 nights

NOTE: The demand can be generated subject to the industry expanding, in terms of infrastructure, the accommodation sector and ancillary services.

Tourism Expenditure Account Average Stay-over Visitor Expenditure in Constant Terms

1988 US$ 585.000

1990 US$ 650.000

1995 US$ 715.000 2000 US$ 715.000

2005 US$ 715.000

2010 US$ 715.000

NOTE: The only variance provided for lies in the average length of stay, not in the average daily expenditure. Tourism Balance of Payment Account In Constant US$ Mio.

Gross For Foreign Net Foreign Exchange Exchange Exchange Receipts Input Earnings

1988 36.27 18.14 18.13 50.0% 1990 52.00 26.00 26.00 50.0% 1995 82.23 30.84 51.39 62.5% 2000 107.25 26.81 80.44 75.0% 2005 125.13 31.28 93.85 75.0% 2010 135.85 33.96 101.17 75.0% NOTE: This estimate provides under input for operating expenditures, product maintenance and replacements interest, and but no debt servicing in terms of foreign capital repatriation nor public/private sector terms inputs in of capital expenditures. This scenario will materialize only provided "all tourism foreign exchange earnings are accounted for and the tourism sector is linked to other subsectors.

Government Direct Revenue Account From Tourism In US$ Current Terms

Hotel Park Airport Total Direct Tax Licenses Fees Tax Income

1988 890.000 1,600 2,300 620,000 1.513.900 1990 1,280.000 2,700 3,000 800.000 2.085.700 1995 2.020.000 3.900 4.300 1.150.000 3.178.000 2000 2.630.000 5.100 5.600 1.500.000 4.140.700 2005 3.070.000 6.000 6.600 1.750.000 4.832.600 2010 3.330.000 6.600 7.200 1.900.000 5.243.000 NOTE: In this an efficient hotel tax collection system has been assumed. No additional hotel tax income has been provided for, possibly arising from the 1985 hotel revision tax which has not been implemented (but an amendment of. accommodation tax assessment is required).

61 Tourism Direct and Indirect Employment Account

Accormnodation Other Sectors Total Direct Sector Direct Indirect And Indirect

Mio Mio Mio Man Employees Man Employees Man Employees Days Days Days

1988 1.395 3.820 2.790 7.640 4.185 11.460 1990 1.905 5.220 3.810 10.440 5.715 15.660 1995 2.811 7.700 5.622 15.400 8.433 23.100 2000 3.000 8.220 6.000 16.440 9.000 24.660 2005 3,500 9.590 7.000 19.180 10.500 28.770 2010 3.800 10.410 7.600 20.820 11.400 31.230 Quite apart from infrastructural and public service facility expansions, ancillary commercial sector services and in particular, the accommodation sector, has to expand widely in a balanced dispersed manner.

Required Bed Capacity Expansions

Natural Beach/ Archaeology History Town Aquatic Oriented Oriented Oriented Oriented Total 1988 - - 372 338 910 1989/90 220 120 200 480 1020 1991/95 410 260 240 1060 1970 1996/2000 360 320 260 680 1620 2001/05 220 260 180 500 1160 2006/10 - 180 510 690 1210 960 1432 3768 7370 APPRNDIX C

CAEAOL DEVELONT EFFECTS DEVELOPMENTAL IMPACT OF THE EXCAVATION AND CONSOLIDATION OF CARACOL

USAID is in the process of funding a major portion of the excavation and consolidation work currently in progress at the significant Mayan site of Caracol in the Mountain rine Ridge area of Belize. This is a departure from the type of project USAID generally supports, but it falls well within USAID guidelines for development assistance due to the project's estimated impact on the further development of tourism in Belize. Caracol is of primary interest among the sites of Belize because of its immense size and its history, including a successful war waged against the population of the well-known Guatemalan site of Tikal. Its location within a well-endowed natural tropical and wildlife area also serves to enhance Caracol's appeal. The site meets all the necessary criteria for a premier tourist destination--large pyramids, tombs, causeways, carved stone stelae with Maya portraits and hieroglyphs, diverse and beautiful artifacts, and abundant wildlife. The archaeological excavation and consolidation of Caracol will result in stabilized buildings and other features at the site, suitable for viewing by tourists interested in the Mayan way of life. With continued stabilization of the ruins and improvement of the access road into the site, Caracol will have a potential to draw tourists on a scale equal or greater than that seen at other major Mayan centers such as Tikal in Guatemala, Copan in Honduras, or Palenque and Chichen Itza in Mexico. Importantly, the site is large enough that the motivated tourist will not be able to see everything of interest in one day, but rather will want to undertake repeated or multiple day visits to the site (in contrast, all other archaeological sites in Belize can currently be viewed during the span of a few short hours.) Thus, Caracol can help draw tourists inland for more than just a brief day trip, and should be a significant factor in keeping tourists in the country for longer periods of time. It is projected that a wide sector of the Belizean public will benefit from the transportation, food, housing, and craft industries that can be supported by tourists wanting to visit a successfully stabilized Caracol. Consolidation of the site of Caracol also has other more immediate economic benefits for Belize. The archaeological team employs large numbers of Belizean excavators and assistants to do a variety of tasks at the site, and purchases food and other supplies in the country of Belize; U.S. staff members also spend additional funds of their own on travel and craft purchases in the country. Thus, the excavation and consolidation at Caracol will have immediate spill-over into the economic sector due to funds expended during the course of the work. During the 1989 season, approximately 80 Belizeans will be employed as part of the excavation and consolidation work at Caracol. Each of these individuals will be putting their salaries, totaling over $73,000 U.S., back into the economy in their villages. Individuals employed as part of the Caracol Project come from both northern Belize (the Corozal District) and West-Central Belize (the Cayo District),.so these funds will be returned to the Belize economy on more than just a local level. Supplying team members with food for the duration of the project also contributes to the local economy. It is expected that approximately $50,000 U.S. will be expended, purchasing subsistence items from diverse enterprises in* Belize during the 1989 work. Supplies necessary in the. stabilization of buildings are also purchased in Belize. It is expected that over $10,000 U.S. will be expended on vehicle maintenance and on items such as lime and cement during 1989; the lime purchases alone will keep one independent lime manufacturer operating on a successful basis. In total, it is expected that over $135,000 will be expended in Belize during 1989 alone on salaries, subsistence items, and assorted supplies. In a country the size of Belize, these expenditures will have a measurable impact. APPENDIX D

LA RUTA MAYA

(EXCERPT FROM: TOURISM - A VITAL FORCE FOR PEACE,

VANCOUVER, CANADA - OCTOBER 23-27, 1988) Brief Description of the Ruta Maya Project

Preliminary work is just beginning on the establishment of a multi-national eco-cultural tourism circuit in the Maya region. Initial support is being given by IUCN-U.S., The Wild Wings and Underhill Foundations, National Geographic, and the Mexican Secretariat of Tourism. In order to be carried out in its entirety, this project, due to its complexity, interdisciplinary nature, and mu: -i-national chcracteristics, should have a duration of at least four years, concluding in late 1992, the year of the Quincentennial Anniversary of Columbus' discovery of America. The four main phases of this project are outlined below: Phase I: Preliminary Studies (duration: lst year, estimated cost: US $90,000) A. Obtaining and processing of relevant information 1. identification and classification oZ the inventory of eco-cultural tourism attractions of La Ruta Maya. 2. Survey and analysis of the present supply of tourism services. 3. Survey and analysis of the cultural demand for eco­ tourism services (national and international)> 4. Survey and analysis of the supply of eco­ cultural tourism services in selected tropical countries where there degree has been some of development in this type of tourism. 5. Information on local legislation, participation, government and promotion, involvement of NGO's and local populations in conservation and tourism issues. 6. Definition of itineraries and interpretive programs, stressing the relevance conservation of aspects of the natural and cultural heritage. 7. Information on international development agencies and conservatiot organizations. B. Development of a physical master plan 1. Zoning and integration of protected areas in regional land-use programs. 2. Ecological guidelines. 3. Identification of different tourism routes. 4. Communications and transportation. 5. Localization of main eco-cultural tourism attractions. 6. Localization of existing tourism facilities. 7. Site plans and design guidelines for physical facilities required by eco-cultural tourism activities. C. Setting up of a manag ment plan for La Ruta Maya (international, national, and local levels) 1. Guidelines for agreements, mechanisms and actions (inter-sectorial and international). 2. Development of a master management plan and local management plans. D. Design of national and international promotion campaign 1. Design of diffusion campaign at the national level of the four countries involved (Mexico, Guatemala, Belize, Honduras). 2. Design of international promotion campaign. Phase II: Establishment of national and multi-national agreements and strategies in preparation infrastructural of and operational phases (duration: 2nd year, estimated cost: US $100,00) A. Discuss.on and approval of Phase Master I document (including Plan) by official authorities of the four countries involved. B. Signed agreement between the four heads of the countries involved, state of government in which the participation of agencies is clearly defined (Ministeries of Tourism, Environment, Public Education, Works and Communications, Agriculture, etc.), as well as the international cooperation mechanisms of agreement. C. International cooperation agreements with international development agencies and NGO's (IDB, MAB-UNESCO, UNEP, World Bank, OAS, EEC, US-AID, WWF, IUCN, etc.), in order to initiate the iollowing 2 phases. D. Establishment of contacts with the following groups to private involve them in the project: travel and tourism agencies, hotel entrepreneurs, architectural designers, building contractors, local communities, universities, national and local NGO's in the fields of natural and cultural heritage conservation, etc. E. Formulation of marketing, publicity, and advertising strategies, to be discussed and approved at national and international levels (Doth public and private spheres), complying with ecological and cultural conservation guidelines.

F. Short list of immediate management plans in protected areas.

Phase III: Initiation of operational acitivities (duration: 4th year, estimated cost: US $80,000)

A. Marketing, publicity, and advertising campaigns (both public and private, national and international). B. Active involvement of all participating parties in operational activities: government agencies, travel agencies, hotel and restaurant operators, local communities, conservation agencies, local communities, NGO's, etc. C. Inauguraticn and operation of initial facilities: communications, transportation, hotels, restaurants, etc.

D. Preliminary evaluation of these operational activities (at end of this Phase). APPENDIX E (Strategies for Women In Tourism) Strategies for Women In Tourism

Belizean tourism is somewhat of an anomaly in that women not only play a strong role in the industry, they actually dominate both operations and employment. In almost every area of tourism, including hotels, restaurants, gift shoes, tour operations and handicrafts, women play the leading role. Only in the ownership of large hotels and transportation facilities are women not well represented, and that is due largely to a lack of access to credit rather than lack of predisposition.

The Belize Tourism Industry Association is made up primarily of women owners and operators, and the current President and past President are women, as are a majority of its Board. Given the difficult nature of small business tourism in general and Belize in particular, the women owners and operators tend to be tough, hard-working and outspoken. As a group, they are competent and forward looking, but frustrated with the constraints imposed on them and the industry by lack of credit,. experienge and training. The successful development of tourism in Belize will depend, in large measure, on the ability of women entrepreneurs to advance beyond the operation of small guest house type hotels and restaurants, and to maximize the efficiency and profitability of those businesses. This advancement will only come about through the availability of training and access to information on modern business management techniques. Skills development coupled with readily accessible sources of funding for new and expanding businesses will be absolutely essential if Belizean women are to maintain the role they have built for themselves in the tourism industry.

Outside the accommodation and food service sector, the major area for woman in tourism is in the production and sale of handicrafts and souvenirs. With the current high levels of tourist arrivals projected to increase in the coming years, the demand for locally-produced items, particailarly those with a Mayan motif, will be greatly increased. (Training and encouragement should be offered immediately on a local and regional basis to women seeking to enter the field or to expand their existing enterprises. These businesses will naturally be small or even micro-enterprises and will need strong technical and moral support, even more than access to finance. To enter the market for Mayan motif products, for instance, will require very little start-up capital for tooling and raw materials, but considerable assistance and advice with style, appearance, quality, pricing and marketing. Foreign and domestic trainers and advisors can do much to assist women entering the handicraft and souvenir sector, but local support groups, perhaps sponsored by BTIA or BIM, will be required to provide the day-to-day backup fledgling entrepreneurs typically need. In terms of simple employment, jobs in the accommodation_sector of tourism are projected to more than double by 1995. The bulk of these new jobs will be in the positions traditionally held by women, such as front desk, housekeeping, food service and retail sales. In particular, the two newly proposed hotels in Belize City will be hiring numbers of staff sufficient to more than double the number of staff currently employed by the exiting major hotels. As the new hotels are purportedly to be of first-class stature, they will undoubtedly require and provide a high level of training and expertise. Regardless of whether they raid existing establishment or hire new workers, there will be an immediate increase in opportunities for women in hotel positions. One area in which women are under-represented, but in which they could excel, is that of tour guiding. Belize is currently short of tour guides and has only recently held a serious training course for local citizens wishing to enter the field. The course itself was well-received, but was taken primarily by men. Given the lack of qualified guides and the projected increase in nature­ oriented tourists, women should have access to training in areas such as Cird watching, Mayan history, photography, nature walks, etc. USAID can play an effective role in the promotion and development of women in tourism through support for training programs and the enhancement of the effectiveness of existing organizations and associations such as BTIA, BIM and BEIPU. With the strong predisposition towards careers in tourism already in place, and the presence of successful role models throughout the country, women in Belize are primed to play an even greater and more effective part in the development of the tourism industry. The uniformily perceived success of the tour guide training program means Belizeans will be highly, receptive to opportunities for more and better training in every aspect of tourism. USAID should begin to increase its efforts in this area by conferring with the appropriate government and private sector organizations to determine the types and modes of training to be offered, am well as the mechanisms for its delivery. While such training need not be gender specific, it will very likely tend to be moat heavily utilized by women, au current Belizean business and employment patterns in the industry are not likely to change in the foreseeable future.