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Pdf Files Are Available At ECLAC SUBREGIONAL HEADQUARTERS FOR THE CARIBBEAN S E R I 2 studies and perspectives Caribbean tourism and agriculture: linking to enhance development and competitiveness Helen Mc Bain Economic Development Unit Port of Spain, March 2007 This document was prepared by Helen Mc Bain, Economic Affairs Officer in the Economic Development Unit. Ms. Mc Bain has since retired from the Economic Commission for Latin America and the Caribbean (ECLAC) Subregional Headquarters for the Caribbean. The views expressed in this document, which has been reproduced without formal editing, are those of the author and do not necessarily reflect the views of the Organization. United Nations Publications ISSN printed version: 1727-9917 ISSN online version: 1728-5445 ISBN: 978-92-1-121628-8 LC/L.2687-P LC/CAR/L.76 Sales No.: E.07.II.G.38 Copyright © United Nations, March 2007. All rights reserved Printed in United Nations Applications for the right to reproduce this work are welcomed and should be sent to the Secretary of the Publications Board, United Nations Headquarters, New York, N.Y. 10017, U.S.A. Member States and their governmental institutions may reproduce this work without prior authorization, but are requested to mention the source and inform the United Nations of such reproduction. ECLAC – Studies and Perspectives series – The Caribbean – No. 2 Caribbean tourism and agriculture: linking to ... Contents Abstract ........................................................................................5 I. Introduction ........................................................................................7 II. Competitiveness issues ...........................................................................9 III. Structure and performance of tourism and agriculture...................15 A. Tourism 15 1. Performance...........................................................................15 2. Nature of the industry............................................................18 B. Agriculture.....................................................................................19 IV.Tourism – Agriculture linkage...............................................................25 A. Tourism leakage.............................................................................26 B. Agriculture supplies to tourism......................................................27 C. Food tourism.................................................................................29 D. The tourism linkage conundrum ....................................................29 E. Spreading the benefits of tourism ..................................................31 V. Development of tourism and agriculture ...........................................33 A. Development and competitiveness.................................................33 B. Clustering as a development tool...................................................37 VI. Conclusions ......................................................................................39 Bibliography ......................................................................................41 Studies and Perspectives Series, The Caribbean Issues published....................................................................................43 3 ECLAC – Studies and Perspectives series – The Caribbean – No. 2 Caribbean tourism and agriculture: linking to ... Tables Table 1 International tourism receipts per tourist arrival (US Dollars) ...................................... 11 Table 2 Competitiveness monitor indicators 2003 ..................................................................... 12 Table 3 Direct contribution of tourism to output and employment in Caribbean countries ....... 16 Table 4 Increase in tourist arrivals, 1993-2003 .......................................................................... 17 Table 5 Number of green globe certifications, 2005 .................................................................. 19 Table 6 Growth in tourist arrivals and earnings per tourist, 1990-2003..................................... 31 Diagrams Diagram 1 Competitiveness diamond.............................................................................................. 26 Diagram 2 Impact of tourism expenditure....................................................................................... 26 Diagram 3 Tourism cluster .............................................................................................................. 38 Figures Figure 1 Agriculture contribution to GDP in CARICOM countries ........................................... 20 Figure 2 Direct and indirect contribution of tourism to GDP of selected Caribbean countries ................................................................................... 20 Figure 3 CARICOM agricultural trade (excluding Haiti)............................................................ 21 Figure 4 CARICOM trade in food (SITC 0)................................................................................ 21 Figure 5 Crop production indices in service-based CARICOM countries................................... 22 Figure 6 Crop production indicies for resource-based CARICOM countries ............................. 22 Figure 7 Production of roots and tubers in selected CARICOM countries ................................. 23 Figure 8 Production of vegetables in selected CARICOM countries ......................................... 23 Figure 9 Production of citrus in selected CARICOM countries ................................................. 24 4 ECLAC – Studies and Perspectives series – The Caribbean – No. 2 Caribbean tourism and agriculture: linking to ... Abstract This study examines current trends in tourism and agriculture in Caribbean countries and the strategy for linking them in order to facilitate their future development. The tourism industry has, in the past, developed largely apart from other sectors such as agriculture. On the other hand, agriculture has developed mainly to satisfy export markets. Domestic agriculture has had limited development and has therefore been displaced to a considerable extent by food imports. The recent promotion of agriculture tourism linkages is an attempt to enhance the local value added of the tourism industry, while at the same time promoting the development of domestic agriculture. However, it is argued that agriculture-tourism linkage per se will not facilitate the development of either tourism or agriculture. The nature of the tourism product in each country has to be understood before effective strategies could be devised for improving competitiveness. A similar approach is also necessary in respect of the agriculture sector. Increased linkage between tourism and agriculture could be enhanced through the adoption of a cluster-based strategy for improving the competitiveness of the tourism sector and for improving the livelihoods of communities and rural areas. 5 ECLAC – Studies and Perspectives series – The Caribbean – No. 2 Caribbean tourism and agriculture: linking to ... I. Introduction The focus of this study, which looks at tourism and agriculture in the Caribbean, was determined largely by relatively recent initiatives to increase the linkage between the tourism and agricultural sectors. The objective of those initiatives has been to stimulate the development of the agriculture sector given the high level of food imports in the subregion especially by the tourism sector. Agriculture in some countries in the subregion has been facing decline on account of trade liberalisation, the erosion of trade preferences in protected developed country markets and a number of domestic problems, including natural disasters, such as hurricanes, flooding and drought. Tourism, on the other hand, has recovered since the downturn following the terrorist events in the United States in September 2001. However, the Caribbean has been increasing its dependence on the industry given the uncertainties facing the traditional export-oriented industries. But this increased dependence has brought increased concern about the leakage of earnings due to significant amount of imports to satisfy tourist demand for goods and services. Since most Caribbean countries have been promoting the development of their tourism industry, this has led to increased competition to attract tourists and increase tourism revenues. The purpose of the study is to examine whether and how agriculture can be linked to tourism to enhance the competitiveness of each and how increased benefits from tourism can redound to the poorer segments of the local population. The initial methodology favoured for this study was a survey of tourist accommodations and agricultural suppliers in the subregion. This was to be followed by case studies of selected tourist and agriculture areas. 7 ECLAC – Studies and Perspectives series – The Caribbean – No. 2 Caribbean tourism and agriculture: linking to ... A questionnaire survey of accommodations was carried out mainly through e-mail because of lack of resources to directly administer them. The intention was to elicit information on tourist establishments’ agricultural purchases from local suppliers, the adequacy of their physical and human resources, their sources of financing and their restructuring requirements. However, the response rate was poor except from the home base of the study, Trinidad and Tobago, which is not a tourism dependent country. The study has therefore not been able to explore first hand the relationship between tourism operators and agricultural
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