Jamaica Social Investment Fund Rural Enterprise Development Initiative – Tourism Sector
July 14, 2009
Jamaica Social Investment Fund Rural Enterprise Development Initiative – Tourism Sector Rural Enterprise Development Initiative – Tourism Sector
July 14, 2009
© PA Knowledge Limited 2009
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Version: 1.0
Jamaica Social Investment Fund 7/14/09
FOREWORD
This report is the compilation of deliverables under the Jamaica Social Investment Fund (JSIF) contract with PA Consulting Group (PA) to provide input in the design of the tourism sector elements of the Second National Community Development Project (NCDP2).
Rural poverty is a major challenge for Jamaica, with the rural poverty rate twice the level of the urban areas. There is large potential for rural development, especially through closer linkages with the large and expanding tourism sector which offers numerous opportunities that are yet to be tapped. Improvements in productivity and competitiveness are key to realizing the potential synergies between tourism and small farmer agriculture.
The objective of the proposed NCDP2 is to increase income and jobs in poor communities in targeted rural areas. Because of the focus on productive, income generating initiatives, the NCDP 2 project was named Rural Enterprise Development Initiative (REDI). The project l builds on the success of the community-based development approach utilized under NCDP1.
The focus of income generation interventions will be supported by rural-based tourism development, agricultural technology improvements in small and medium farms, and the linkages between agriculture and tourism. The main performance indicators will include increases in income and the number of jobs created in the targeted areas
PA, working under the supervision of the NCDP 2 Project Management Unit, and working in close collaboration with JSIF, the World Bank and identified stakeholders in the tourism sector:
1. Conducted a field audit of community based tourism enterprises in nine (9) Parishes (Kingston, Manchester, St. Elizabeth, Westmoreland, Hanover, St. James, St. Ann, Portland and Trelawny);
2. Facilitated a workshop to obtaining stakeholders inputs to the support needed to develop market-driven rural tourism products and services;
3. Prepared case studies of successful rural tourism enterprises representing different ownership models and varying levels of involvement from the host community(ies);
4. Identified, through a needs assessment, areas of interventions in the tourism sector; and
5. Drafted sections of the REDI Operations Manual
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TABLE OF CONTENTS
Foreword
1. Introduction 1.1 Heritage Tourism 1.2 Community-Based Tourism 1.3 Rural Tourism Enterprises in Jamaica
2. Needs Assessment 2.1 Community Based Tourism Enterprises in Jamaica 2.2 Key Findings and Recommendations 2.3 Recommended Interventions 2.4 Profile of Selected CBTEs 2.5 CBTE Survey Results Tables 2.6 Financial Support for CBTEs
3. Case Studies of Successful Rural Tourism Enterprises 3.2 Ambassabeth Cabins and Nature Trails 3.3 Rastafarian Indigenous Village 3.4 YS Falls 3.5 Conclusions 3.6 Key Lessons Learned
4. REDI Operations Manual for Tourism Sector 4.1 Introduction and Definition of Terms 4.2 Institutional Framework for REDI Implementation 4.3 REDI Project Management and Staffing 4.4 Type 1 Project Cycle 4.5 Type 2 Subproject Process 4.6 Component 2 Subprojects 4.7 Monitoring and Evaluation System 4.8 REDI Application 4.9 REDI Evaluation Criteria 4.10 REDI Selection Criteria
5. Stakeholder Workshop Summary 5.1 Workshop Objectives and Overview 5.2 Workshop Proceedings 5.3 Summary of challenges facing rural tourism in Jamaica 5.4 Breakout sessions 5.5 Workshop Summary of Findings and Recommendations 5.6 Workshop Participants 5.7 Workshop Photos
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Appendices
APPENDIX A: TPDCO Licensing Requirements
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1. INTRODUCTION
Tourism is arguably Jamaica’s largest segment of the economy. Tourism-related expenditures are close to US$1.5 billion. Direct employment in the sector is estimated to be 75,000 persons, while indirect employment generated by tourism in Jamaica is estimated to exceed 200,000 persons.
The traditional tourism product in Jamaica is very well developed and has been marketed successfully for many years. It centers around the accommodation sector for stay-over visitors, and day excursions for cruise visitors. Most of the economic impact of tourism in Jamaica is concentrated in the established coastal resort areas: Kingston, South Coast, Port Antonio, Ocho Rios, Montego Bay, and Negril, which are primarily marketed for beach leisure activities.
The influence of tourism on host communities is significant. Most obviously, tourists bring revenue. However, how this revenue is generated and the numbers of people who reap the benefits vary greatly. So does the way the money is spent and how it is reinvested. At one extreme, large scale, all-inclusive resorts that are owned and operated by corporations may have little or no economic influence on a community. Tourists may be flown in, bused to the site, kept “secure” behind patrolled fences, and in some cases given neither the encouragement nor opportunity to spend time or money beyond the borders of the resort. 1
People from the community may be offered only low-skilled minimum-wage jobs. In these extreme cases, tourism becomes a highly sanitized, in-resort experience. The influence of this type of resort on the community is minimal. In effect, there are tourists, but no tourism industry.
At the other end of the continuum, various individuals and groups, small business owners, entrepreneurs, local associations, and government officials are developing local tourism in rural communities in innovative ways. The community tourism segment of the industry is, quite simply, the collection of businesses that creates and sells a variety of goods and services to visitors. The development of these industries is a growing phenomenon as communities respond to the opportunities, and in some cases, the threats of tourism.
1.1 HERITAGE TOURISM
According to the Caribbean Tourism Organization, “the heritage tourism segment represents one of the highest yield tourism groups, ahead of both traditional mass markets and other niche tourism audiences such as arts. Heritage tourists spend 38% more per day, and stay 34% longer than traditional tourists and spend 20% more and stay 22% longer
1 It should be noted that some all-inclusive resort groups, such as Sandals Resorts International, have demonstrated their corporate social responsibility by investing in nearby communities as well as creating opportunities for guests to purchase crafts and other locally produced goods.
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than arts oriented tourists.” 2 The demographic profile for heritage tourists suggests that they are aging baby-boomers interested in the kind of travel that captures identity experiences. This is an expanding market segment with significant purchasing power.
A survey of heritage tourism sites in the Caribbean has classified the attractions into four areas: 3
1. Natural Attractions: Refers to sites that showcase natural phenomena, forest and other nature reserves, caves, botanic gardens, marine parks, waterfalls, volcanoes, and exotic, endemic and endangered species, etc.
2. Cultural/Heritage Attractions: Refers to displays of the cultural norms of a destination for example local festivals, art exhibitions, drama etc. and/or attractions which relate to the history of the country, e.g. monuments, colonial buildings, indigenous sites/villages, archaeological sites.
3. Manmade Attractions: Refers to physical structures such as monuments, colonial buildings, theme parks, sporting facilities, gaming facilities, etc.
4. Events: Refers to arranged and coordinated activities over a limited period of time. Examples include sporting events such as cricket tournaments and marathons, as well as cultural events such as national carnivals.
1.2 COMMUNITY-BASED TOURISM
Community-based tourism is an alternative tourism product that has been and is being developed in Jamaica and to some extent, in the Caribbean region, to meet the varying needs of the local and overseas vacationer seeking a “natural” experience. Traditional tourists in search of sun, sand and sea still remain the largest segment of the tourism market. There is, however, a growing market for an alternative tourism product that is heritage-, cultural- or nature-based in a rural setting. This presents an opportunity for Jamaica to position itself to offer a wide array of tourism products.
Community tourism is not a brand of tourism, but rather a type of ownership and management arrangement. One set of alternative tourism products focuses on Jamaica’s history, culture and nature-based attractions in rural communities outside the main resort areas. Community- based tourism is one or a combination of tourism products offered at a community level to domestic or international visitors. In the Jamaican context, community-based tourism usually refers to visitor interaction with local people in rural areas.
Community-based tourism can offer a unique development opportunity for Jamaica. The process of community-based tourism development, if managed effectively, has the potential to help alleviate poverty and illiteracy. Community-based tourism also has the potential to develop the natural creative energy of Jamaicans by transforming average citizens into
2 Caribbean Tourism Organization, 2008. Development of a Strategic Business Management Model for the Sustainable Development of Heritage Tourism Products in the Caribbean . 3 Ibid.
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entrepreneurs. It can be used to develop strong partnerships by twinning existing traditional tourism entrepreneurs with aspiring non-traditional tourism entrepreneurs. It can be combined with existing tourism product offerings to create a uniquely Jamaica experience. Community- based tourism can be a stand-alone venture or a partnership of the traditional and the non- traditional products blended with Jamaica’s natural features, culture and heritage to create a truly Jamaican experience.
1.3 RURAL TOURISM ENTERPRISES IN JAMAICA
While a number of entrepreneurs from rural communities have entered the market sector to offer unique tourism products and services, few if any have made the transition to being a commercial enterprise. On the other end of the spectrum are community-based organizations that have developed an idea or concept for a tourism offering, but have not commercialized it to an extent that it provides a meaningful source of livelihood.
Rural tourism enterprises fall into one or more of the following categories: • Accommodations – ecolodges, rustic cabins • Amusement/theme parks • Festivals – Yam festivals, Maroon festivals, home-coming etc. • Food – Jamaican foods including Boston Jerk Pork, Busso Soup, Curried Goat, Jerked Chicken, Jerked Fish, Ackee and Salt Fish, Fried Fish, Bammy, etc. • Health and wellness – bush baths, balms, herbs, spices, alternate medicine etc. • Historical sites – Burial sites of pirates, cemeteries of national heroes such as Bob Marley • Historical/heritage sites such as architecture, great houses from the period of slavery and the arrival of Columbus, etc. • Local culture – world-class performances and local events in sports, music, cuisine, drink, dances, events, etc. • Nature-based attractions – waterfalls, mineral springs, caves, etc. • Performing arts • Tours– specially adapted biodiversity found no where else in the world, as in the Cockpit Country; Blue Mountain tours to see the world famous coffee ecology, etc. • Visual arts/craft – paintings, straw goods, wicker craft, knitted products, etc. • Water-based recreation.
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2. NEEDS ASSESSMENT
2.1 COMMUNITY BASED TOURISM ENTERPRISES IN JAMAICA
This Chapter presents key findings on the current situation of CBTEs in Jamaica, including needs and gaps. It also recommends interventions that JSIF can incorporate into NCDP II. The information presented is based on the results of the survey, secondary research, and the direct experience of PA in implementing a program in Jamaica that was similar to NCDP II. It should be noted that in some cases, definite conclusions could not be drawn from the survey results given the size of the sample and the fact that many CBTEs simply do not collect information of the type we requested.
2.1.1 Community Based Tourism Enterprise Survey
PA consulted with JSIF and its Advisory Committee – the Tourism Product Development Company (TPDCo), the Ministry of Tourism, the Jamaica Business Development Corporation (JBDC) and the Social Development Commission (SDC) – in identifying and selecting the community-based tourism enterprises (CBTEs) to include in the survey. In an effort to increase the number of CBTEs surveyed, the sample was expanded to include a number of CBTEs that turned out to be little more than a proposed project of a community-based organization.
There were a total of 38 CBTEs in 11 different parishes as listed below. Thirty six of the 38 contacted agreed to participate in the survey while the other two, Arts Jamaica and Bluefields Ecotourism project, did not respond to our attempts to contact them. PA staf traveled to each CBTE to conduct a detailed survey of their current situation and development needs.
CBTEs by Parish
Kingston/St. Andrew 1. Port Royal 2. Mavis Bank Information and Craft Center 3. Caribbean Herbal Business Association 4. Dallas Castle Community Group
St. Thomas 5. St. Thomas Historical Restoration Site 6. Roselle Water Falls 7. St. Thomas Emancipation & Cultural Foundation 8. Arts Jamaica (respondent could not be contacted)
Portland 9. Ambassabeth Eco Tourism 10. Moore Town Maroon Community 11. Charles Town Maroon Project 12. Natures Handmade
St. Mary 13. Breadfruit Festival 14. Jamaica Hardanga Heritage Trust Women’s Group
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15. Port Maria Historic 16. Oxford Women in Progress
St. Ann 17. Hudo Great House Restoration 18. Lime Tree Garden Peanut Processors 19. Walkers Wood Jerk Tour
Trelawney 20. Bunkers Hill 21. Cockpit Country Adventure Tours 22. Progressive Craft Group 23. Yam Festival
St. James 24. Rastafari Indigenous Village 25. Catadupa Community Development Heritage Trust 26. Flagstaff
Hanover 27. Dolphin Head Trail 28. AXE and ADZE Community Eco Project
Westmoreland 29. Seaford Town 30. Bluefields Ecotourism Project 4
St. Elizabeth 31. Accompong Maroon Community 32. Treasure Beach Women’s Group 33. YS Falls
Manchester 34. Alligator Coast Byway 35. Mile Gully Heritage Loop 36. Ghoury Cave 37. C-Cam Tours 38. Mocho Mystic
Generally, PA found it difficult to both contact the CBTEs and obtain the required information. Their rural locations, limited access to direct communication and the fact that for many of the CBTE representatives, the CBTE was not their primary source of employment, made coordination for conducting the survey very challenging. In addition many of the CBTEs did not track the requested information and lacked records. In other instances, they were simply reluctant to share information because it demonstrated their limited operations and the implications for funding under the new JSIF program.
4 Respondent could not be contacted, project concept only.
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2.1.2 Objectives of Needs Assessment
The main objectives of this study were to: 1) profile CBTEs in Jamaica – their varying types, structures, current status, relationship to communities, current plans and problems; 2) examine their human, financial and organizational resources and needs; 3) examine the communities within which the project operates and identify constraints, environmental and developmental issues; 4) measure the effectiveness of CBTEs’ marketing and management strategies; and 5) make appropriate and implementable recommendations.
2.2 KEY FINDINGS AND RECOMMENDATIONS
Generally, CBTEs in Jamaica operate with a high level of informality and a lack of commercial orientation, which serves as a major limitation for both success and growth. To get to the next level as an enterprise, many CBTEs need to focus on tightening their operations, supported by rigorous business planning and operations. Thus, the interventions that the JSIF needs to undertake will center on systemizing the CBTEs and moving them from informal to formal, from a community group with a tourism-related project (or project idea) to a commercial tourism enterprise. Not all will be able to make this transition and in its beneficiary selection process, JSIF needs to play the role of an “investor” by targeting its funding in “marketable” products and services, and conducting due diligence on grant applicants so that its investments can achieve a high probability of success.
The following sections examine the findings of the needs of the CBTEs, followed by suggested areas of JSIF interventions.
2.2.1 Business Maturity
In general, the “operating” CBTEs surveyed do not have a commercial orientation. Many of them are not registered as a legal entity, most are not licensed by JTB and TPDCo,5 and few have a business plan guiding their operation. Financial information is generally lacking, with most not being able to report their revenue and expenditures. This is further compounded by their difficulty in attracting trained staff and a high staff attrition rate. Ownership. The ownership structures of the CBTEs surveyed fall into three broad categories: privately owned, community owned such as a friendly society or cooperative, and non-government organization (NGO). Approximately 50% of the enterprises surveyed are reportedly community owned, while NGOs account for 27% of the enterprises and the remainder are privately owned. In many cases, even when the sponsor is a registered entity, the tourism-related activity is not in full operation, does not have a proper management structure in place, and needs financing for development (and is thus classified as a “project under development.” Licensing. Over 61% of the CBTEs surveyed are not licensed by JTB and TPDCo, which means they are not recognized by the Government as tourism entities. Consequently, they do not benefit from government assistance in marketing, training, tax holidays and duty reductions. Without a license, the Jamaica Tourist Board will not promote a CBTE,
5 See Appendix 1 for copies of the JTB-TPDCO application forms.
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and tour operators typically will not take their clients to the sites. The fact that the CBTE is not licensed has as much to do with not knowing the requirements and still being able to operate without a license, as it does to making a conscious decision to not comply with the applicable standards. Business studies. Forty six percent of the enterprises have not done any formal studies of their business operations such as feasibility studies, competitor analyses, market research or business plans. Many indicated that they have not seen the need for these studies or they have found them unaffordable. Below is a summary of formal studies completed by CBTEs. Exhibit 1-1 Summary of CBTE Completion of Business and other Special Studies
Project Name Feasibility Study Feasibility Competitor Analysis Research/ Market Analysis Plan Business Financial Proposal (for funding) Environmental Impact Assessment Accompong Community Development No No No No No No Ambassabeth Eco Tourism Project No No No No Yes 2002 Yes 2002 AXE & ADZE Eco-Tourism Development Project No No No No No Yes 2008 Buff Bay Valley/IICA Project Yes 2008 No No No Yes 2002 No Bunkers Hill Ecotourism Sites & Services Yes 2005 No No No No No 2009 for Caribbean Coastal Area Boat Management Foundation On-Going No No Tour on-going planned Caribbean Herbal Business Assn No No No Yes 2006 No No Catadupa Community Development Heritage Trust No No No No No No
Yes '03 & Charles Town Maroon Council Yes 1999 No Yes 1999 Yes 2008 "05 No
Cockpit Country Adventure Yes 2004 Tours No No No & 2007 No No Dolphin Head Trail Yes1998 No No No No Yes 2004 Flagstaff Heritage Tour & Trail Project Part of carrying capacity report done by USAID PARE Project 2008 Ghoury Recreation Park Yes 1999 No No Yes 1999 Yes 1999 Yes 1999 Good Hope Partners in Enterprise Development No No No No No No Hills Craft Center No No No No No No Hills United Development Organization (HUDO) Yes No No Yes Yes No Ja Hardanga Heritage Trust No No No No No No Ja. National Heritage Trust/Port Royal No No Yes Yes No No
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Project Name Feasibility Study Feasibility Competitor Analysis Research/ Market Analysis Plan Business Financial Proposal (for funding) Environmental Impact Assessment Jeffery Town Farmers Association No No No No No No Lime Tree Garden Peanut Industry No No No No No No Maroon Town Maroon Community No No No No No No Mavis Bank Information & Craft Center Yes No Yes No No Yes Mile Gully Heritage Loop Yes No Yes No No No Mystic Mocho Experience No No No No No No Natures Handmade Paper Product No No No No No No Oxford Women in Progress Yes No Yes Yes Yes No Port Maria Historical Dist. No No No No No No Portland Bight Tourism No No No No No No Progressive Craft Group No No No No No No Rastafarian Indigenous Village Yes Yes Yes Yes Yes Yes Rosella Water Falls No No No No No No Seaford Town Heritage Tour Yes No Yes Yes No No St. Helena's Women's Group No No No Yes Yes Yes St. Thomas Emancipation & Cultural Foundation No No No No No No St. Thomas Historical Restoration Site No No No No No No
Trelawny Yam Festival No No on-going Yes No No Walkers Wood Jerk Tour Yes Yes Yes Yes Yes Yes Ys Falls Project Yes No Yes Yes No Yes
Income reporting. Thirty one percent of the CBTEs surveyed did not report any income, either because they did not track that information or did not want to disclose it. It is interesting to note that those reporting over J$1,000,000 in sales are legally registered entities. Staff. A recurring problem faced by CBTEs is the difficulty in recruiting suitably trained and qualified staff to work in their establishments given the rural-urban drift phenomenon. The staff tend to be young, and the organizations’ management experience is varied: the average experience o managers is about 9.1 years. Their experience as managers in their present capacity averages 6.2 years and only 6.1% have business training.
Identified Needs in Business Operations Assistance in registering CBTEs as a legal entity
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Guidance on the best management structure for the CBTE Training on how to develop business plans and operations manuals Training of CBTE staff on customer service Management training that focuses on financial and human resources Assistance in meeting applicable standards and obtaining JTB/TPDCo licenses.
2.2.2 Financing
Financing options for CBTEs include loans, grants, and private investment.6 Grants are the principal source of financing among the surveyed CBTEs, with 60% having received one or more grants. The grants come from foundations, international donor projects, private and public sector programs, and special environmental funds.
Many of the enterprises are unable to access loans for working capital because of their lack of a business structure and the absence of basic financial records. Although no data were available regarding lending to CBTEs, commercial banks with loan programs for small and medium sized enterprises (SMEs) have not found them to be attractive investments, citing the CBTEs’ lack a meaningful business plan, operating on a cash flow basis, high level of delinquency, and lack collateral. Consequently, CBTEs rely heavily on grant funding, especially since in many cases, enterprises have been able to receive multiple grants without being a registered entity and without demonstrating improvements.
At the same time, CBTEs cite a lack of financing as one of the main reasons they have not been able to achieve a sustainable level of operations. Grant funds are typically limited to capital costs such as equipment and facilities, and are not available for operations. Of those surveyed, 55% cited the difficulty of obtaining working capital as the major constraint.
Identified Needs in Financing
Parallel investments in business management and capital improvement
Linking access to grant financing to business registration and licensing
Provide training on how to track revenues and costs
Continued dialogue with commercial financing institutions as to how best to prepare CBTEs for loan financing.
2.2.3 Product and Sector Development
Many CBTEs do not have a clearly defined product that is “market ready.” They tend to lack focus to bring a single product or service to a state of profitability before considering other related products and services. Of those surveyed, 42% of enterprises plan to expand their businesses by adding new products and/or services. The lack of focus is illustrated in the CBTEs’ response to the classification of their product or service. By believing they cater to a
6 See Chapter 5 for a discussion of options for financial support for community-based tourism products.
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wide range of visitor interests, they fail to focus on a target market. The CBTEs that are better defined, like YS Falls and Walkers Wood Jerk Tour, are easier to market.
Forty eight percent of the CBTE businesses surveyed have been in operation for 11 or more years, although many of them report that their tourism activities are in development or planned. This indicates that many of the community groups that run the CBTEs do not see the tourism activity as a distinct enterprise, but rather a project that can obtain funding from one or more grant facilities. This further contributes to the lack of a defined market-ready product.
Identified Needs in Product and Sector Development
Work with Ministry of Tourism and TPDCO to develop an internationally recognized classification of CBTEs based on internationally recognized typologies to aid visitors in identifying desired attractions and activities.
Ensure that each CBTE product or service meets minimum product quality standards before embarking on new products and services.
2.2.4 Marketing
There is a direct link between the visibility of rural tourism products and services in the marketplace and their income levels. Tourism businesses utilize both formal and informal marketing channels to attract visitors. Many CBTEs in Jamaica have a “build it and they will come” mentality, whereby the mere fact that they exist and Jamaica is a well-known tourism destination implies that they will necessarily benefit with visitors to their community.
Approximately 30% of the CBTEs surveyed indicate a low visitor count as a major issue affecting their success. Over 40% of the visitors to CBTEs are Jamaicans as compared to 26% international visitors. In fact, 51% arrive by private vehicle indicating an overwhelming reliance on the Jamaican market given the lack of directional signage in remote rural communities where CBTEs are located. Sixty percent of the overall visitors learned of the enterprise by “word of mouth” and 48% were recommended by a hotel, tour operator or cruise ship operator.
There is very little focus on advertising, with 57.6% of the respondents indicating they do no advertising. This can be attributed to lack of sophistication regarding Internet marketing (the least-costly form of raising visibility to attract international visitors and lack of funds to spend on more traditional channels such as agents, promotions, and media advertising.
Identified Needs in Marketing
Combine two or more similar enterprises in a geographic area to create a tourism circuit that adds value to the CBTE offering, maximizes the potential for extending visitor stays, and broadens market appeal.
Develop marketing plans for CBTE that rely on the Internet and free publicity
Establish intermediaries who have an incentive to market and promote CBTEs through commissions
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Integrate licensed CBTEs into existing national tourism marketing programs.
2.2.5 Community Infrastructure
Most rural communities in Jamaica can be characterized as having poor and/or limited infrastructure, including no directional signage. Poor community infrastructure also poses challenges to the business of CBTEs, including their ability to meet applicable standards for a JTB/TPDCo license. Many suffer from inadequate disposal of garbage; lack of public toilet facilities, a reliable water or power supply, and poor roads. There are also environmental issues around flooding and landslides that affect the CBTEs. For example, Hurricane Dean washed out the bridge on the only access road to Ambassabeth Cabins. The government took nearly 9 months to repair the bridge. During this time, Ambassabeth received no visitors.
The lack of the infrastructure, coupled with the environmental issues, may impact visitor access, the quality of the product and the visitor perceptions. The table below summarizes infrastructure needs for selected CBTEs.
Exhibit 1-2 Summary of Infrastructure in CBTE Communities
Project Name Water supplyWater toilet closet/ Water roads Access hiking trails Foot paths/ center Visitor/ ticket Office Accommodations kitchen Restaurant/ Workshop signage Directional Accompong Community Development No No Yes No No No Yes Yes Yes Yes Ambassabeth Eco Tourism Project No No Yes Yes Yes No Yes No No Yes AXE & ADZE Eco-Tourism Dev Project Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Road Under Under Under Under Under Under need constru constru construct constru constru constr Buff Bay Valley/IICA Project Yes Yes repairs Yes ction ction ion ction ction uction Bunkers Hill Ecotourism Sites & Services Yes Yes Yes No Yes Yes No Yes Yes Yes Catadupa Community Development Heritage Trust Yes Yes Yes Yes Yes Yes Yes No No Yes Charles Town Maroon Council No No No Yes yes Yes Yes Yes Yes Yes Dolphin Head Trail Yes Yes Yes No No Yes Yes No Yes Yes Ghoury Recreation Park Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Ja Hardanga Heritage Trust Yes Yes No No No Yes No Yes Yes Yes Lime Tree Garden Peanut Industry No No Yes No No Yes No No Yes Yes Maroon Town Maroon Community Yes No Yes Yes Yes Yes Yes Yes Yes Yes
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Project Name Water supplyWater toilet closet/ Water roads Access hiking trails Foot paths/ center Visitor/ ticket Office Accommodations kitchen Restaurant/ Workshop signage Directional Natures Handmade Paper Product No No No No No No No Yes No Yes Rastafarian Indigenous Village Yes Yes Yes No Yes Yes Yes Yes Yes Yes Ys Falls Project Yes Yes Yes Yes Yes Yes No Yes No Yes
Identified Needs in Community Infrastructure
• Include infrastructure investments in upgrading CBTEs, particularly those based within a specific community (as opposed to tours that visit multiple sites).
• Subsidize infrastructure in rural communities that benefit both the CBTE and people living in the community. This would include water supply and sanitation, meeting facilities, and visitor centers.
• Provide training for CBTEs on environmental management, particularly solid waste management.
• Improve directional signage to assist visitors in finding CBTEs.
• Improve footpaths, hiking trails, foot bridges and other light infrastructure that currently poses safety concerns for visitors.
2.3 RECOMMENDED INTERVENTIONS
As noted in Chapter 1, there is an increased focus on providing a diversity of “authentic” experiences as part of Jamaica’s tourism product. At the same time the Government of Jamaica has encouraged communities to participate in the tourism sector and to create businesses so that they can benefit from one of Jamaica’s biggest industries. Hence, the alternative tourism product of community-based tourism is being developed with its associated Community-Based Tourism Enterprises (CBTEs), which tend to operate in rural communities outside the main resort areas and focus on nature, heritage and/or culture.
Many of the CBTEs surveyed were not fully operational at the time of the survey. There were operating in an ad hoc fashion, with no confirmed schedules with many citing financing as a major barrier to moving forward. In fact, only five of the forty (12.5%) surveyed had a license issued by JTB and TPDCo and could therefore be classified as a legal tourism business.
Generally, the findings indicated that most of CBTEs tend to have the following characteristics:
Not registered as legal entities
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Not licensed by TPDCo and JTB as a tourism entity Frequent starts and stops in operating Are principally activities or a project of a community group Have poor business operations Have no formal studies such as business plans, feasibility studies, and market research to guide development Have no documented information on revenue, no financial statements, and no visitor statistics Operate on an ad hoc basis instead of according to a fixed schedule Operate on a cash flow basis Rely on grant financing Rely on word of mouth for advertising Do not integrate into the tourism supply chain through participation in associations or establishing tour operator relationships Lack of trained professional staff.
Despite the availability of technical assistance and historical incremental grant financing, the CBTEs have not been able to make the transition from a project of a community group to being a viable operation that can access commercial financing and government assistance in product development and marketing from TPDCo and JTB, respectively.
The critical question for JSIF is how to help CBTEs become a formal part of the tourism sector in Jamaica instead of operating informally on the margins. This marginal existence does not take advantage of the potential of rural tourism opportunities and does not provide real benefits to the communities in which they operate.
To overcome this situation, PA recommends that REDI support:
Improving business operations to turn these entities into businesses capable of financial sustainability. Assistance should focus on ensuring that the CBTEs become registered as legal entities, and have a management structure, a business plan guiding development, and financial system.
Improving product quality to enable the CBTEs to be more attractive as an alternative tourism product. Working through TPDCo, JSIF can identify gaps in the product compared against industry standards to determine specific areas for improvement and can organize for the CBTEs to access TPDCo’s 30 tourism-related skills training programs.
Facilitating licensing so that the CBTEs can join the existing tourism associations for marketing support and advocacy, can become a part of Jamaica’s tourism supply chain, and can access commercial financial and other sector support. Assistance can include organizing workshops facilitated by TPDCo that explain the licensing process and providing technical assistance to collect and facilitate the necessary documentation required as part of the JTB/TPDCo licensing process.
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JSIF interventions should address the needs at three distinct levels:
1. Enterprise level : At the most fundamental level, the CBTEs must become viable businesses in their own right. JSIF should conduct appraisals of the enterprise that identify specific needs and determine whether to fund them based on the feasibility of the tourism offering. Central to assistance at that level is insistence on having the enterprise legally registered and applying for JTB/TPDCo tourism licenses.
2. Cluster level : Often, a larger intervention is needed that will benefit two or more CBTEs. Because it does not by itself generate income, there is a reluctance to make the investment. PA recommends that JSIF support multi-client marketing and distribution channels and small-scale community infrastructure that benefit multiple rural tourism businesses operating in the community as well as community residents. This can include assistance such as signage for a particular location, websites for a group of CBTEs, and common public infrastructure such as toilets.
3. Sector level : At the highest level, JSIF should work with the Ministry of Tourism and other national organizations to formalize the CBTE subsector. Working with both government and private sector organizations, JSIF can provide critical support in areas such as standards and licensing, marketing and promotion, typology and CBTE classification systems, among others.
2.4 PROFILE OF SELECTED CBTES
Accompong Community Development Description Location Status Maroon community promoting its history St. Elizabeth Only annual festival is (museum, cemetery), cultural heritage (drum operating making), and soft-adventure (hiking trails). No JTB license Major attraction is annual festival. Ownership Employment Year in Operation Community-based organization Males: 51/ 3-6 years Females: 27
Ambassabeth Eco Tourism Project Description Location Status Ambassabeth is in the buffer zone of the Blue Portland Operating and John Crow Mountain National Park, with Not registered or JTB one of its trails passing through the park. It is licensed managed by the Bowden Pen Farmers Association. Ambassabeth Cabins and Nature Trails includes accommodations (4 cabins, 7 sleeping rooms), traditional food and beverage service (in outdoor kitchen), meeting areas, tour guiding at Cunha Cunha Pass, Corn Puss
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Gap, Quaco Falls, and White River; natural (biodiversity) and cultural (Maroon) heritage education and awareness. Ownership Employment Year in Operation Community-based organization Males: 8/Females: 5 More than 11 years
AXE & ADZE Eco-Tourism Dev Project Description Location Status This project will include a guided tour through Hanover Planned an underground cave, and a tour of a coconut and coffee plantation. It is reported that the community got its name from the property on which it is now situated, where the then-owner was able to purchase the property with money he earned from using an axe and an adze to trim wood, which he sold to the Jamaica Railway Corporation for the construction of their railway. It is proposed that the tour will also have a historical component focusing on the Axe and Adze history . Ownership Employment Year in Operation Community project Volunteers N/A
Buff Bay Valley/IICA Project Description Location Status Located in the foothills of the Blue Mountains, Portland Under development with the Buff Bay Valley offers the visitor a range of assistance from Inter- vistas from low-lying river valleys to lush American Institute for mountain vegetation with the Blue Mountains Cooperation in nestled in the background. The Buff Bay Valley Agriculture Citizens Association, in collaboration with IICA, are now planning an eco-tourism project focusing both on tourism and agriculture which, when completed, will include a visitors information lodge, hiking trails to a number of old ruins in the area, and a joint community farm tour which includes a bee farming project. At present, The Buff Bay Valley Citizens Association and IICA are working with the Institute of Jamaica – African and Caribbean Institute, to document the history and culture of the area, which will play an integral role in the presentation of the project. Ownership Employment Year in Operation Community Project N/A 0
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Bunkers Hill Ecotourism Sites & Services Description Location Status This nature-based attraction will feature a river Trelawny Under development with park, picnic area, limestone caves and assistance from USAID caverns, and other planned facilities. Protected Area and Rural Enterprises Project. Ownership Employment Year in Operation Community project Males: 2 0 / Females: 5
Caribbean Coastal Area Management Foundation Description Location Status This nature-based attraction was planned by Clarendon Planned C-CAM; it will feature a wetlands tour in the protected areas of Southern Clarendon. Salt River is a fair way off the south coast toll road, and the roads to get there are not very good in places.
Ownership Employment Year in Operation Non-governmental organization N/A 0
Caribbean Herbal Business Association Description Location Status
The Caribbean Herbal Business Association Clarendon Operating (CHBA) was created to co-ordinate, administer Not registered and manage the capacity building and developmental activities for the Caribbean herbal industry. Ownership Employment Year in Operation Privately owned N/A 3-6 years
Catadupa Community Development Heritage Trust Description Location Status Planned heritage attraction around St. James Planned abandoned railway station. Ownership Employment Year in Operation Community project Male: 1 Community group has been in existence for more than 11 years.
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Charles Town Maroon Council Description Location Status Charles Town is one of four remaining Portland Under development, Maroon communities in Jamaica. It is located unofficial tours given in Buff Bay, Portland, alongside the Spanish Not registered or JTB River. Main attractions are a museum, licensed performing arts center, river park and picnic area. They also sell homemade wines and jerk barbeque.
Ownership Employment Year in Operation Community project Males:14/ 0 Females: 10
Cockpit Country Adventure Tours Description Location Status Nature-based tours beginning in Albert Town. Trelawny Operating with JTB Several tours feature hiking trails with visits to license caves and rivers. Ownership Employment Year in Operation Non-governmental organization Males: 24/ Less than 3 years Females: 18
Dolphin Head Trail Description Location Status
Nature attraction operated by Dolphin Head Hanover Under development Trust featuring a natural walk-through herbal museum in the Dolphin Head Forest Reserve. Buildings are being constructed, but the herbs are found in an open area. A bamboo furniture factory is another visitor attraction.
Ownership Employment Year in Operation Non-governmental organization N/A 0
Flagstaff Heritage Tour & Trail Project Description Location Status
The project is built around the history of the St. James Under development with former Maroon town of Trelawny Town, now assistance from the known as Flagstaff. The attraction will feature USAID Protected Area a number of trails that take visitors past and Rural Enterprises historical sites, such as a cemetery and Gun Project
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Hill (a battle site) – as well as the biodiversity of the Cockpit Country.
Ownership Employment Year in Operation Community project N/A 0
Ghoury Recreation Park Description Location Status The principal attraction is the Ghoury Caves Clarendon Planned found in the hills of northern Manchester, a few miles outside of Christiana. The caves are located in a forest reserve. There are also cabins and a large picnic and recreation area.
Ownership Employment Year in Operation Non-government organization operated on Males:19/ 0 Forestry Department lands. Females: 3
Good Hope Partners in Enterprise Development Description Location Status This is a historical/cultural project planned for St. Andrew Operating the Good Hope district in St. Andrew. The Not registered as plan calls for the development of a historical business trail, the development of a historical great house, visiting ruins dating back to the days of slavery and the water wheel. The plan also calls for the development of a community/ information center and restaurant. Ownership Employment Year in Operation Community project Males: 1/Females: 2 Less than 3 years
Hills Craft Center Description Location Status Outlet featuring traditional handicrafts made Manchester Operating from natural products. Proposed as part of a No business registration planned multi-site visitor circuit in Southern Manchester known as Alligator Coast Byway. Ownership Employment Year in Operation Private Male: 1/Female: 1 3-6 years
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Hills United Development Organization (HUDO) Great House Description Location Status The Hudo Great House is found in the hills of St. Ann Under development St. Ann, near the community of Pimento Walk. In addition to the Great House and surrounding ruins, there is a longer trail that takes you across the property. There are also a number of small streams, rivers and lake areas.
Ownership Employment Year in Operation Community project Males: 31/ 0 Female: 20
Jamaica Hardanga Heritage Trust Description Location Status This is a craft project that involves the women St. Mary Operating of the Richmond Community in St. Mary. The Not a registered business project specializes mainly in linen-type items such as table cloths, bed linens, bathroom sets, placemats and other household linen items. The group targets the main North Coast resort markets, but is planning to establish a craft center as a tourist attraction. Ownership Employment Year in Operation Community project Females: 23 Community group in existence for more than 11 years
Jamaica National Heritage Trust/Port Royal Description Location Status This is a national project to completely restore Port Royal Operating Fort Charles and all the historical buildings Not registered located in Port Royal. At present there is a museum already operating as a tourism attraction; however, the overall long-term development of Port Royal is ongoing. Ownership Employment Year in Operation Government organization Males: 13/ N/A Females: 8
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Jeffery Town Farmers Association Ja Hardanga Heritage Trust Description Location Status This is a proposed Breadfruit Festival to be St. Ann Partially operating held annually by the Citizens Association. It is being proposed that the Festival will be an opportunity for the community to demonstrate the various uses of the breadfruit, which would then lead into the development of cottage industries within the community. In addition, they plan to use the breadfruit wood for the creation of craft items. Ownership Employment Year in Operation Community project, Friendly Society N/A Under 3 year
Lime Tree Garden Peanut Industry Description Location Status This is a community agro project whose main St. Ann Operating focus is the roasting of peanuts and the Not registered as creation of other products made from the business peanut (peanut drops, peanut butter and peanut porridge). This project is now operating; however, the community group is presently looking at plans to expand production and increase their market share. They are looking at the hotel industry as a possible market for their product. Ownership Employment Year in Operation Community project Males: 2/ 3-4 years Females: 6
Moore Town Maroon Community Description Location Status Moore Town is one of four remaining Maroon Portland Under development with communities in Jamaica, home to the assistance from descendants of the group of Maroons that UNESCO were once led by Nanny. The attractions include historical, cultural and nature: Bump Grave, where Nanny is said to have been buried; a mini-museum and an herbal garden (under development); artifacts and the culture of the Maroons; and Nanny Falls.
Ownership Employment Year in Operation Community project N/A 0
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Mavis Bank Information & Craft Center Description Location Status Nature-based attraction near the head of the St. Andrew Under development Blue Mountain Peak Trail. Plans include a visitors’ center. Ownership Employment Year in Operation Community project Males: 2/Females: 1 0
Mile Gully Heritage Loop Description Location Status It is proposed that the 11 communities Manchester Planned compromising the Mile Gully Development Area form the attraction Mile Gully Heritage Loop featuring a transition era of history and a traditional agrarian culture. Ownership Employment Year in Operation Private limited liability company Males: 12/ 0 Females: 10
Mystic Mocho Experience Description Location Status This is a planned nature trail and cultural Clarendon Operating attraction to highlight the food and dance of the traditional groups within the area. The attractions will include the display of handicrafts, food festivals and the demonstration of traditional dances performed in that area at special events. The first phase of the project, which focuses on craft development, is operating on a small scale. Ownership Employment Year in Operation Community project Males: 8/ Under 3 years Females: 5
Natures Handmade Paper Products Description Location Status Small enterprise manufacturing paper from Portland Operating banana and other fibers for use in cards, Not registered as a boxes, notepads and stationary. business.
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Ownership Employment Year in Operation Private Males: 2/ N/A Females: 9
Oxford Women in Progress Description Location Status The Oxford Women in Progress is a small St. Mary Operating community group in Oxford, St. Mary which is engaged in a number of activities – primarily the production of craft items. They are housed in an annex to the Oxford Baptist Church. Ownership Employment Year in Operation Community project Males: 5/ N/A Females: 10
Port Maria Historical District Description Location Status
Port Maria Historic is a planned tour that will St. Mary Under development incorporate visits to the Claude Stuart Park, the [Church], the Civic Center and to the historic Fort Haldane on the hill overlooking Port Maria.
Ownership Employment Year in Operation Private and community-owned N/A 0
Portland Bight Tourism Description Location Status This project is located on Jamaica’s South Clarendon Under development Coast and its development is being planned in three phases. The short-term plan includes the development of an interpretation center at the site of the wetlands which would serve as the starting point for the non-motorized boat tours of the wetlands to observe both animal and plant life. The second phase of the project will focus on the development of walking trails and a crafts center; phase three will focus on the development of bed & breakfast operation serving that area. Ownership Employment Year in Operation Non-governmental organization Males: 2/Females: 5 0
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Progressive Craft Group Description Location Status Hand carvings from wood. Trelawny Operating Not a licensed business Ownership Employment Year in Operation Partnership N/A
Rastafarian Indigenous Village Description Location Status Nature and cultural attraction featuring the St. James Under development Rastafarian culture, cuisine and history. Ownership Employment Year in Operation Private Males: 2/Females: 3 0
Roselle Water Falls Description Location Status Water-based recreation featuring a waterfall. St. Thomas Operating Most amenities are planned or under Not registered as a development. business Ownership Employment Year in Operation Community project Males: 2 N/A
Seaford Town Heritage Tour Description Location Status Seaford Town was formed in 1835 by St. James Under development, German immigrants. One of the main partially operating attractions is the museum, which houses a Not registered as a number of artifacts, and the site of the Roman business Catholic Church.
Ownership Employment Year in Operation Non-governmental and community project Males: 13/ Over 10 Females: 18
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St. Helena's Women's Group Description Location Status Craft production principally from weaving St. Elizabeth Operating natural fibers. Not registered as a business Ownership Employment Year in Operation Women’s group N/A N/A
St. Thomas Emancipation & Cultural Foundation Description Location Status The STEC has a number of projects including St. Thomas Operating the Bath mineral spa, a hill tour, the Plantation Garden River, various arranged cultural performances, and a canal tour. These projects are collaborations with different stakeholders in the Foundation. Ownership Employment Year in Operation Non-governmental organization Males: 3/Females: 7 9 years
St. Thomas Historical Restoration Site Description Location Status
This project is focusing on the restoration of St. Thomas Planned the historical Morant Bay Court House, the Paul Bogle statue and the development of a museum to highlight the history of the Morant Bay Rebellion.
Ownership Employment Year in Operation Non-governmental organization Males: 2/Females: 2 0
Trelawny Yam Festival Description Location Status This festival is organized by the South Trelawny Operating Trelawny Environmental Association celebrating yam, an important food to the livelihoods of the people of south Trelawny. Ownership Employment Year in Operation Non-governmental organization Males:18:/ 12 years Females: 28
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Walkers Wood Jerk Tour Description Location Status This project is an organized one-hour tour St. Ann Operating at the home of the world-famous Walkers Wood Jerk Seasoning. The tour includes product tasting. The factory is 10 mi/16 km outside Ocho Rios. A gift shop on the premises supplies local cookbooks. Ownership Employment Year in Operation Private Males: 2/Females:10 N/A
YS Falls Project Description Location Status YS Falls is a nature-based attraction of seven St. Elizabeth Operating waterfalls, several which cascade into natural pools. Additions to the attractions at YS Falls include canopy rides and river tubing. These adventures are accompanied by experienced guides. Ownership Employment Year in Operation Private Males: 29/| 19 years Females: 8
2.5 CBTE SURVEY RESULTS TABLES
Please note that the following tables summarize the results of the survey responses. The percentages shown are not mutually exclusive and therefore totals are not given.
Table 1: Main Economic Activities in CBTE Communities Economic Activity No. of Respondents Percent of Total Responses Fishing 6 18 Manufacturing 6 18 Farming 29 88 Commerce 19 58 Tourism 14 42 Restaurant 2 6 Mining 2 6 Transportation 1 3
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Table 2: Distribution of Communities by Disposal Methods of Garbage Disposal Methods Percent of Total Burn 24 Dump 32 Bury 7 Picked Up by Truck 65
Table 3: Percent Distribution of Communities by Source of Water Supply Source of Water Supply Percent of Total Piped into Dwelling 60.0 Piped into Yard 31.0 Public Standpipe 15.0 Catchments (tanks, drums, etc.) 37.0 Rivers and Streams 16.0 Other 5.0
Table 4: Percent Distribution of the Main Environmental Issues Environmental Issues Percent of All Projects Flooding 39 Earthquake 15 Land Degradation 49 Over-fishing 18 High Emission of Effluence from Industrial Waste 9 Fire 27 Landslides 30 Wind Damage 24 Poor Solid Waste Management 46
Table 5: Percent Distribution of CBTE by Length of Time Enterprises have Been Operating in Communities Time (Yrs) Percent of Enterprises Under 3 21.2 3 – 6 18.2 7 – 10 12.1 11 or more 48.5 Total 100.0
Table 6: Percent Distribution of CBTE by Type of Relationship with the Respective Communities Type of Relationship Percent of CBTE Input to Business Planning 45.5 Ownership of Land, Buildings, Other Assets 54.5 Purchase of Inputs/Products 45.5 Employment of Persons 57.6 Profit Sharing 18.2 Other 30.3
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Table 7: Percent Distribution of CBTEs with Supporting Studies, by Type of Study Type of Study Percent of CBTE Feasibility Study 39.4 Competitor Analysis 9.1 Market Research/Analysis 30.3 Business Plan 39.4 Financing Proposal 27.3 Environmental Impact Analysis 27.3 None 45.5 Other Studies 12.1
Table 8: Percent Distribution of CBTE’s by Current Plans Current Plans Percent of Enterprises Expand Business by Adding New Products/Services 42.4 Close Business and Start New One 6.1 Expand Business and Keep Same Products 18.2 No Plans 24.2 Other 9.1 Total 100.0
Table 9: Percent Distribution of CBTEs by Main Problems Main Problems Percent of Enterprises Low Visitor Count 36.4 High Interest Rates 12.1 Poor Access to Roads 30.3 High Cost of Rental 18.2 Tour Operators not Promoting Enterprises 9.1 Difficulty in Obtaining Working Capital 54.5 Difficulty in Obtaining Suitably Trained Staff 27.3 Difficulty in Getting Public Liability Insurance 9.1 Poor Marketing 9.1
Table 10: Percent Distribution of CBTEs by Advantages of Doing Business in Respective Communities Advantages Percent of Total CBTE Crime Free 12.1 Community Support 27.3 Employment Creation 42.4 Cultural Awareness 18.2 Community Development 30.3 Historical Significance 15.2 Other 81.8
Table 11: Percent Distribution of CBTEs by Disadvantages of Doing Business in Respective Communities Disadvantages Percent of Total CBTE High Rate of Illiteracy 12.1 High Attrition Rate of Staff 9.1
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Difficulty in Getting Trained Persons 9.1 Poor Water Supply 30.3 Financial Challenges 15.2 Other 100.0
Table 12: Percent Distribution of CBTEs by Suggestions for Improvement in Sales/Profits Suggestions Percent of Total CBTE Advertisement/Promotions 36.4 Marketing 15.2 Other 66.7
Table 13: Percent Distribution of Employees by Age Group and Gender Age Group Males Females All (yrs) (%) (%) (%) 18- < 25 33.0 22.7 28.0 25 - < 35 34.4 33.2 33.8 35 - < 45 13.7 19.1 16.3 45 - < 60 13.3 20.9 17.0 60 and over 5.6 4.1 4.9 Total 100.0 100.0 100.0
Table 14: Absolute and Relative Variations of Employees by Gender Gender Standard Coefficient of Variation (%) Deviation Male 13.04 38.75 Female 13.09 35.22 All 12.92 37.02
Table15: Percent Distribution of CBTE Managers, by Experience in Managing Similar Enterprises Experience (yrs) Percent of Managers Under 5 36.4 5 - < 10 15.1 10 or more 45.5 No Response 3.0 Total 100.0
Table16: Percent Distribution of CBTE Managers by Experience in Managing Business in Present Capacity Years of Experience Percent of Managers Under 2 21.2 2 - < 5 27.3 5 - < 10 24.2 10 or more 24.3 No Response 3.0 Total 100.0
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Table17: Percent Distribution of CBTE Managers, by Educational Attainment Educational Attainment Percent of Managers Formal 54.5 Trade/Technical 21.2 Business 6.1 Product Development 6.1 Service 12.1 Other 3.0 No Response 21.2
Table18: Gross Annual Sales/Revenues of CBTE in 2007 Annual Sales/Revenues (Jamaica dollars) Percent of CBTE Less than 200,000 30.3 200,000 – < 400,000 15.1 400,000 – < 600,000 6.1 600,000 – < 800,000 0.0 800,000 – < 1,000,000 3.0 1,000,000 - < 2,000,000 6.1 2,000,000 or more 9.1 Don’t Know 6.1 No Response 24.2 Total 100.0
Table19: Percent Distribution of CBTE by Type of Financial Assistance Type of Financial Assistance Percent of CBTE’s Loan (Capital Development) 3.0 Loan (Operations) 3.0 Grant 60.6 Investment 3.0 Other 9.1 Not Stated 24.3
Table 20: Percent Distribution of CBTE by Source of Assistance Source of Assistance Percent of CBTE’s Environmental Foundation of Jamaica 12.1 UNDP 6.1 USAID 6.1 Global Environment Fund 6.1 ALCOA Foundation 6.1 OXFAM 6.1 Canadian Urban Institute 6.1 UNESCO 6.1 TPDCo 12.1 Jamaica National 9.1 Private Sector Development Co 9.1 Other 54.5
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Table 21: Percent Distribution of CBTE by Amount of Financial Assistance Amount Received ($m) Percent of CBTE’s Less than 1 39.4 1 - < 2 3.0 2 - < 5 6.1 5 - < 10 6.1 10 - < 20 0.0 20 or more 12.1 DK/No Response 36.4
Table 22: Average Percent of Visitor Arrivals to CBTE’s by Nationality of Visitors Average Standard Deviation Coefficient of Nationality (%) (%) Variation (%) Local 41.4 36.7 88.6 USA 14.2 19.4 136.6 Canada 3.2 5.3 165.6 UK 3.0 5.4 180.0 Europe 6.8 16.1 236.8 Other 3.9 6.9 176.9
Table 23: Average Percent of Visitor Arrivals to CBTE’s by Local Address Average (%) Standard Coefficient of Local Address Deviation (%) Variation (%) Negril 3.2 9.9 309.4 South Coast 10.2 26.4 258.8 Montego Bay 13.7 23.0 167.9 Ocho Rios 11.6 22.9 197.4 Port Antonio 4.4 17.9 406.8 Kingston 10.2 21.7 212.7 Cruise Ship (Ocho Rios) 3.9 11.3 289.7 Cruise Ship (Montego Bay) 0.6 2.5 416.7
Table 24: Percent Distribution of CBTE’s by Methods of Arrival of Visitors Method of Arrival Percent of CBTE Reporting CBE Provided 9.1 Tour Company 36.4 Independent Taxi 33.3 Private Vehicle 51.5 Hotel Transportation 24.2 Other 3.0
Table 25: Percent Distribution of CBTEs by Source of Information about Selected Enterprises Source of Information Percent of CBTE Word of Mouth 60.6 Advertisement 18.2 Website 27.3 Recommended by Hotel 24.2
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Recommended by Tour Operator 18.2 Recommended by Cruise Ship 6.1 Travel Agent 3.0 Other 15.2
Table 26: Percent Distribution of CBTE’s by Source of Advertising Source of Advertising Percent of CBTE Television 3.0 Radio 9.1 Newspaper 6.1 Magazines 12.1 Visitors Catalogue/Publication/Brochure 42.4 Other 18.2 None 57.6
2.6 FINANCIAL SUPPORT FOR CBTES
2.6.1 Background
Many of the CBTEs are small and they tend to have the same structural characteristics – business is seasonal, and when compared with their larger counterparts, productivity, technology and capitalization are low. They also they lack creditworthiness and have challenges securing the funds needed for business. Furthermore, like most small companies tourism enterprises have only limited capital resources. This results in a reliance on banks and other financial institutions for their funds. Banks require sufficient collateral or a well- established surety for their debtors to secure a loan. The lack of such assets or appropriate surety makes it difficult for many CBTEs to obtain loans from the mainly traditional financial institutions. There are a number of financial institutions in Jamaica from which CBTEs access loan financing. The conditions, such as interest rates, vary.
The research has revealed that there are various funding sources available, both locally and internationally, and in the form of grants or loans. Grant funds are available for local CBTEs that can be accessed to enhance the development of these businesses. Over the years, a number of CBTEs have accessed grant funds through various programs, including hurricane relief and special programs available for small businesses. In 2005, the Environmental Audit for Sustainable Tourism (EAST) Project made available to ten tourism enterprises, a project proposal which they could use to access loans to repair and/or renovate their businesses post Hurricane Ivan. In 2006, the Rural Enterprise Agriculture and Community Tourism (REACT) project provided financial assistance in the form of grants to CBTEs towards establishing workshops, developing markets, purchasing equipment, training, and assistance with recordkeeping. CBTEs such as the St. Helena’s Women’s Group, Treasure Beach Women’s Group, Accompong Craft Group, Nature’s Handmade, and Oxford Women’s Group benefited and most of them have progressed.
This chapter reviews the availability of financial assistance to CBTEs under three categories of institutions: financial brokerages, lending institutions and grant programs.
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2.6.2 Financial Brokerages
The Corporate Finance Broker Unit (CFBU) of the European Union-funded Private Sector Development Programme (PSDP) is geared toward improving Jamaica’s overall competitiveness with particular emphasis on micro, small and medium enterprises (MSMEs). It aims to stimulate MSME growth by acting as a mediator between businesses and financial institutions for increased access to funding, and by providing a range of services to enhance the financial management of MSMEs. The CFBU offers assistance in
i. Financial planning ii. Financial management iii. Financial restructuring iv. Accounting assistance v. Identifying sources of finance and /or technical assistance vi. Interfacing with banks and other lending institutions on behalf of CFBU clients .
The CFBU’s objective is to encourage financial institutions and commercial banks to increase lending and facilitate improved loan terms, including: reduced collateral requirements, easier access to finance, business growth, and increased revenues and profits to the lending organization.
2.6.3 Grants Programs
The European Union is funding MSMEs through its Enterprise Rating and Upgrading (ERU) Programme under the PSDP. The ERU has two stages: assessment of the business with recommendations to upgrade, and an application for a grant of a maximum one million Jamaica dollars to fund capacity building, equipment, marketing and strategic planning. To access these grants, a MSME has to be a member of one of the ten clusters being funded by the PSDP. One of the clusters is a tourism cluster. However, this facility closed at the end of March 2009. There are also several government programs.
Jamaica Business Development Corporation (formerly Center). JBDC assists community-based organizations in the following areas:
Business planning Financial planning Marketing interfacing with financial institutions to access credits.
JBDC is also currently being reorganized so that small and micro businesses will be able to access loans from that institution.
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Tourism Enhancement Fund. The Tourism Enhancement Fund (TEF) was established in 2004 through an Act to create the Tourism Enhancement Act. This Act provides a legal basis for the Ministry of Tourism to establish a mechanism for the collection of a small fee from incoming airline and cruise passengers; the fees will be placed into a dedicated fund to be used for the sole purpose of implementing the recommendations emanating from the Master Plan for Sustainable Tourism Development (MPSTD), 2002.
One of the recommendations from the MPSTD is to strengthen the SME sector of the tourism industry. It aims at providing an environment that is conducive to micro and small enterprise development in order to assist in the growth and competitiveness of these firms, and employment and export opportunities. The TEF will provide training financing, technical assistance and business development services that are critical support measures.
2.6.4 Loan Funds
Various loans funds are available from several local financial institutions to finance micro and small businesses that are sourced from both the public and private sectors. The financial institutions are both public and private sector owned, with loans varying from 7.785% to as high as 52%. The lower interest rate loans are usually sourced from the Development Bank of Jamaica, Development Options Limited and MIDA. These organizations are wholesalers and the loans are retailed to approved financial institutions, which usually retail the loans to the final borrower. At present, there is only one government-owned micro and small business financial institution: the Self-Start Fund, but it would appear that at present funds to this organization are limited. There is a possibility that restructuring will take place before any meaningful amounts of the fund will be made available through this organization.
There are also several private financial institutions that have funds available to small and micro businesses, including:
Credit Organization for Pre-Micro Enterprises (COPE). COPE was established in the 1980s with financing from the Canadian International Development Agency (CIDA) to finance micro and small business. The funding has since ceased, but COPE is still trying to become self-sustaining. It currently gets funding from Development Options Ltd. (DOL) and the Jamaican Government through the National Insurance Fund (NIF) and various community development organizations to be on-lent to their members. The ceiling on loans is J$300,000 in the case of Development Option’s Fund and up to $4.00 million on NIF’s money. COPE is used to offer training, but it has discontinued this activity as clients were reluctant to pay and the cost was too high.
COPE currently offers loans to both secured and unsecured borrowers, and has an obligatory savings scheme for all borrowers called the Partner Scheme. ACCESS provides services similar services to those of COPE, but does not give training nor unsecured loans. Funds are accessed from DOL and NIF.
Jamaica National Small Business Loan. J N Small Business Loan is a subsidiary of Jamaica National Building Society and it initial funding was from CIDA and the IDB. Its loan ceiling is $100,000 with $50,000 for first-time borrowers. The interest rate is 1% per week and
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its collateral is usually household effects and equipment. This organization has branches all over Jamaica.
National Development Foundation of Jamaica (NDFJ). This institution was formed with financing from various private sector organizations to provide micro, small and medium sized business with funding. It also provides counseling in business development. Its challenge currently is that it is limited in its funding source and also gets wholesale funding from DO Ltd.
Scotia Bank’s SME Development Programme . The Programme, through the Scotiabank branch network, lends from a pool of J$400 million and assists SMEs with the following financing options: 1) ScotiaRunning Start – a loan designed for business start ups; 2) ScotiaBusiness Builder – a loan designed to help existing SME business to increase productivity; and 3) ScotiaMSME Alliance Fund - designed for members of the MSME Alliance Fund, this business loan will help expand business operations. Facilities granted for approved projects under this programme will attract fixed interest rates ranging from 8.625% to 12.125% per annum.
Credit Unions. Most of the funding for credit unions comes from their membership, but some currently access funds from the Development Bank of Jamaica (DBJ) and the National Insurance Fund. Credit unions encourage borrowers to save and the amount a borrower gets to borrow is dependent on the amount of shares in the institution. The credit unions offer all types of loans to micro and small businesses.
National People’s Cooperative Bank (NPCB). This institution was established over 100 years ago as the Farmer’s Bank. It has evolved over the years and now provides funding to all types of businesses. In order to access a loan from the PC Bank, a borrower must be a member and have some savings in the NPCB account. The NPCB’s funding comes from the Development Bank of Jamaica and from its own members’ savings. Its lending limit varies from under twelve months to up to six years and the interest rate varies from 7.875% to 24%, depending on the source of funding.
2.6.5 Requirements for Loans
In the case of the credit unions and NPCB, prospective borrowers:
Must have shares and a minimum amount of savings to access loans Must have a business plan Must possess collateral to the value of the loans in cash, real estate, equipment, or insurance policies If the business was operating before, there must be records showing previous financial performance Possession of a tax registration number and if the loan is above a certain amount, a Tax Compliance Certificate is required.
Collateral. It is usually more difficult for entities such as CBTEs to obtain loans because of the requirement for collateral. CBTEs usually have nothing to collateralize. Loans require collateral to include the following:
Cash Property and or equipment
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A guarantor An assignment of the proceeds of the receivables to the lending institution as in the case of the crop lien program. The loan is repaid by the proceeds of sales and the balance is given to the borrower/entrepreneur. Joint guarantee for the loan can occur with members of a group or association combining their collateral for the loan. This secures the loan as when one member demits from the group, the others will bear the brunt of the loan. It results in each member involved in the loan scrutinizing the others.
2.6.6 Challenges Facing Small Businesses to Access Loans
The challenges facing small businesses and CBTEs in accessing loans, as reported by the business and financial institutions, include:
Lack of a meaningful business plan Lack of planning in structuring their businesses Lack of training Lack of understanding of what the business entails. The owner/operator sometimes operates only on an ad hoc basis, without any strategic direction or distinct structure. Weak marketing strategy – products and services are provided without any market research and with an assumption that a market is readily available. Poor financial recordkeeping Inadequate equity Inadequate start-up capital Inadequate, or lack of, collateral. Some financial institutions also refuse to take equipment as collateral, claiming they are specialized Lack of in-kind or cash contribution for some grants High level of delinquency.
2.6.7 Financing the Community-based Tourism Organizations (CBTEs)
Over half of the CBTEs surveyed indicated that difficulty in obtaining working capital was the most pressing problem they faced. Information from the survey on certain individual CBTEs indicated that members would prefer a PC Bank to be located in their community to foster savings. Others indicated that funds from commercial banks were not affordable. In some cases, grants and or loans were obtained for sums in excess of their gross income, and these loans and or grants did not improve the income level of the businesses.
2.6.8 Reasons for Unsustainability of Financing CBTEs
CBTEs often start without any “seed funds” or any plans to indicate the start of the project. Small businesses such as the CBTEs operate without any financial planning including projecting future income and expenses and cash flow to predict the viability of the business. These projections are required when a grant funding agency or financial institution is approached. They indicates that the business went beyond the “ideas” stage.
Frequent stops and starts characterize many of these CBTEs. They are continuously applying for grants without any sustainability plan that would outline how to generate income to operate the business. Start-up costs for businesses are often under-estimated, while the cost
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of sales or the amount of receivables is unrealistic, both of which hamper operations and affect the availability of working capital. This situation can result in lower earnings, reduced output and frustration for the owners, workers and buyers of the product. In CBTEs, the cost of the members’ labor is often omitted in the calculated expenses as well as the cost of offering credit terms to the buyer in the case of loans.
2.6.9 CBTEs’ Challenges with Entrepreneurial Sustainability
The CBTEs sustainability is usually dictated by weak financial management and lack of entrepreneurship. Research has indicated that CBTEs fail because:
There is no formalization and no documented plans of the business. This would include business plans, feasibility studies and strategic plans. Many of the CBTEs remain at the ideas stage without moving to the documentation that could verify the business. The groups that operate the CBTEs are sometimes characterized by weak group dynamics, which will affect the business. Sometimes the roles of the members are not clearly defined. CBTEs are usually formed out of a “good idea,” but there is an inability to take it to a commercial level for a sustained business. Marketing plans are usually absent or not in use. Often there is a reliance on a few weak markets and sometimes high receivables result in the inability to continue the operation. Training in business management is absent.
2.6.10 Recommendations for Interventions for Successful CBTEs Financing
1. CBTEs need to be formalized through registration with the Companies Office of Jamaica.
2. Group dynamics training will assist in strengthening the groups and developing a governance structure.
3. A feasibility study, business plan and strategic plan are important towards designing successful projects to help the groups in improving their access to funds and utilizing them. Towards this end, the groups will have to : a. Build capacity by being trained in business systems. They also need to be committed to using the systems. b. A culture of recordkeeping is important. Records will be required when approaching a financial institution. c. Increase the awareness of the macroeconomic environment that will impact on the business. d. Write a business plan, as a group effort, based on reality and experience. The members need to be fully conversant with the business in order to write the most realistic plan. e. Look at the availability of resources in order to plan realistically.
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f. Identify and define the roles of individuals in the CBTEs. 4. Close examination and monitoring of the loan by the officers of the lending institution. This increases the costs of the lending institution, but should reduce the default rate. 5. More stringent auditing of CBTEs by the grant institutions to eliminate the unsustainable ones. Funds should be spent on the latter towards strengthening and preparing the groups for receiving grant aid and implementing successful projects. Programs such as the Enterprise Rating and Upgrading Programme at Jamaica Trade and Invest have been successful in assessing small businesses as part of a process before grant application and funding.
6. The CBTEs should avail themselves of the existing support and assistance programs to include that offered by the:
a. Companies Office of Jamaica
b. Export Centers and Business Improvement Programmes (ECBIP) at Jamaica Trade and Invest
c. Jamaica Business Development Corporation and its Jamaica Business Information Center (JAMBIC)
d. Small Business Association.
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3. CASE STUDIES OF SUCCESSFUL RURAL TOURISM ENTERPRISES
3.1.1 Introduction
This Chapter presents case studies of three Rural Tourism Enterprises that were selected based on the fact that they were market ready, have an established ownership and management structure with defined community participation, and are either licensed by the Jamaica Tourist Board (JTB) or in the final stages of being licensed. In the selection process we also tried to identify three different types of management/ownership structures to determine their influence on the success of the operation.
1. Ambassabeth Cabins and Nature Trails is a community group-owned, operated and managed enterprise. It is located on the private land of one of its members, but offers excursions to neighboring communities and guided hikes within a forest reserve.
2. Rastafarian Indigenous Village is a registered company whose shareholders manage and operate the enterprise project under a lease arrangement.
3. YS Falls is a privately family-owned and operated enterprise on the family’s land.
All three Rural Tourism Enterprises employ people from the surrounding communities. Additional Jamaican case studies can be found in the CTO Heritage Tourism study. 7 These include: The Bob Marley Museum, Rose Hall Great House, and Green Grotto Caves and Attractions. These enterprises, while providing insights into successful heritage tourism operations, are not included here because of their lack of community involvement.
3.2 AMBASSABETH CABINS AND NATURE TRAILS
3.2.1 Profile
Cabin at the Ambassabeth
7 Caribbean Tourism Organization, 2008. Development of a Strategic Business Management Model for the Sustainable Development of Heritage Tourism Products in the Caribbean
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Habitat International built Ambassabeth Cabins and Nature Trails shortly after the destructive Hurricane Gilbert of 1988 as a demonstration model for safe wooden buildings, Ambassabeth began operation in 1995 with one building. Managed by the Bowden Pen Farmers Association, Ambassabeth includes accommodations (7 cabins holding up to 20 people), traditional food and beverage service (outdoor kitchen), meeting areas, tour guiding at Cunha Cunha Pass, Corn Puss Gap, Quaco Falls, and White River, and natural (biodiversity) and cultural (Maroon) heritage education and awareness. Ambassabeth also hosts an annual Emancipation Festival where residents from communities throughout the Rio Grande Valley hike the historic Maroon trails to attend.
Ambassabeth Cabins and Nature Trails is located in picturesque Bowden Pen, St. Thomas Parish. Bowden Pen has featured significantly in the history of the Windward Maroons as a village developed by World War II veterans who had been granted land by the Crown as compensation for their war service.
Ambassabeth is situated on a gentle sloping hillside overlooking the Rio Grande River with scenic vistas of the Rio Grande Valley. It is also located in the buffer zone of the Blue and John Crow Mountain National Park and Forest Reserve. This area has long been regarded as one of the most beautiful on the island and possesses enormous biological diversity. Ambassabeth offers a view of the park and one of its trails passes through it.
The tourism product offered to visitors is diverse and gives them a unique opportunity to interact with nature accompanied by a team that is knowledgeable about the nature, history and culture of the area. Visitors can determine the package of their choice; from basic accommodation and meals to cultural presentations, community nights, visits to farms to observe traditional farming methods, river bathing, walking the trails and visiting historical sites, horseback riding and traditional food and drink. Additionally, the facilities have been used for weddings, parties and lectures . Ambassabeth Cabins and Nature Trails is in the process of being licensed by the Jamaica Tourist Board.
The development of Ambassabeth Cabins and Nature Trails has been demand-driven, increasing from one cabin sleeping two persons to seven cabins sleeping twenty persons. Cabins are named to represent a plant or animal native to the area and are constructed from local wood and bamboo. The cabins are advertised as “eco-friendly and cozy,” furnished with beds and large cushions that are used for both lounging and sleeping.
Ambassabeth employs a staff of 12 part-time workers (including facility staff and trail guides) who have been trained in hospitality management, food preparation, sanitation and hygiene, and other skills. Its cooks hold Food Handlers Permits.
3.2.2 Governance Structure
Ambassabeth Cabins and Nature Trails, also known as Ambassabeth Eco Lodge, is owned and operated by the Bowden Pen Farmers Association. The project is managed by a General Manager (Lynette Wilkes) and has 12 other members. The cabins and other facilities are located on land owned by Lynette Wilkes.
To achieve its mission, the Association is engaged in several broad areas of activities that impinge on other critical areas. The areas of focus are: tourism management, environmental management, land use planning and management, heritage protection, financial
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sustainability, education and training, networking, collaboration and development of partnerships among major stakeholders.
Association member manage these activities and monitor them through action plans. The activities are located on different sites, but are inter-related to provide visitors with a variety of experiences. The sites are located within the Blue and John Crowe Mountain National Park and Forest Reserve as well as the communities in the upper Rio Grande watershed. This region has long been regarded as one of the Caribbean’s most strikingly beautiful landscapes and is endowed with significant untapped historical and biological diversity resources.
3.2.3 Visitation
Guest enjoying the view from the grounds at Ambassabeth
Obtaining visitor data for Ambassabeth Cabins and Nature Trails was difficult as there is no structured system in place to track visitor arrivals and other relevant data to assist in marketing and promotional activities, as well as business management. However, PA was able to obtain the following statistics on visitor arrivals from the General Manager.
Exhibit 3-1 Nationality of Visitors to Ambassabeth Cabins and Nature Trails
Nationality Percent of Total USA 50% Canada 5% UK 5% Europe 5% Other Foreign 5% Jamaica 30% Total 100%
In 2007, the cabins attracted approximately 350 visitors annually. However, visit were greatly affected in 2008 due to damage from Hurricanes Gustav and Dean, which destroyed a bridge (the only vehicle access route to the site) that was not repaired for nearly 9 months. This made 2008 a non-performance year. The property recovered in 2009, when about 80 people visited. Plans to effectively market and promote the facilities project an increase in the number of visitors to 600 per year.
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Approximately half of Ambassabeth’s visitors are from the USA (which reflects Jamaica’s most dominant outbound market). However, there was no clear indication as to where in the United States these visitors reside. It is recommended that the operators collect data on the outbound market State visitors, and their age groups, occupations, and time of year they visit. This information will assist Ambassabeth in developing its marketing strategy to determine specific target groups and how to devise cost-effective methods for reaching them.
The data indicate that only 30% of visitors are from Jamaica. Ambassabeth has identified some niche markets within this group that need to be exploited further. These include student groups, cultural and scientific researchers, nature enthusiasts such as bird watchers and hikers, and weddings. For example, Ambassabeth could offer group rates that include transportation to/from the site.
The clientele have identified themselves as researchers, university students and lecturers, nature lovers and environmentalists.
3.2.4 Financing
Ambassabeth has been operating for over eleven years, but with limited financial success. The weaknesses of this CBTE need to be further analyzed, but clearly the lack of visitation has a strong influence on capital availability for product development, marketing, and improved business management systems. Ambassabeth has relied primarily on grants from international development agencies, and environmental and private foundations.
Since its genesis, Ambassabeth Cabins and Nature Trails has undertaken the following:
• feasibility study • competitor analysis • market research/analysis • business plan.
Implementing these studies and plans is essential if the project is to attract funding, especially for expansion and increased earnings and profitability. It is appreciated that the owners/operators may not wish to compete with traditional hotels and may want to remain small and offer a unique vacation in a strictly rural environment. If Ambassabeth is to make a significant impact on the community, however, the level of visitation and occupancy must increase commensurately. This requires an innovative marketing campaign to compel international and Jamaican visitors to travel the distance and navigate the poor roads.
Ambassabeth’s gross income in 2007 was approximately J$900,000. The average annual gross income per employee over the same period is estimated to be marginally above J$69,000. These figures are not very impressive for a project of this type. 8 The challenge is thus to devise strategies for increasing average net income without significantly increasing the price per night of the cabins.
8 Assuming a modest 40% occupancy rate and J$4,000 per night for a cabin, Ambassabeth could easily achieve an annual income of J$12 million per year.
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According to the General Manager, the following projects are being considered in order for Ambassabeth to increase its earnings:
• produce its own vegetables • rear broiler chickens and to a lesser extent, layers • rear a limited number of goats for meat production • produce fruits for general consumption such as tomatoes, plums, and mangoes • produce exotic tropical fruits for desserts, including exotic mangoes, avocado, naseberry, otaheti apple, custard apple, star apple, and star fruit • convert biodegradable waste into fertilizers • convert luceana leaves into methane for cooking (this technology is in use in Jamaica) • examine the feasibility of converting wind energy (which is reported to be a problem in the area) into electrical energy.
In 2002, the Ambassabeth CBTE received a grant from the Environmental Foundation of Jamaica (EFJ) in the amount of JA$3.8 million for the rehabilitation of the historic 5-mile Cunha Cunha Pass trail and in 2008 from the USAID-funded Rural Enterprise in Agriculture and Community Tourism (REACT) Project in the amount of J$1.5 million. Funds from the REACT Project were used to make structural upgrades in two cabins and the common areas, as well as a general refurbishing of the property.
The potential exists for Ambassabeth Cabins and Nature Trails to become a model for the community and the country as a whole. It is clear that this CBTE is a very unique attraction and has implemented some environmentally friendly best practices.
3.2.5 Marketing
Ambassabeth appears to have a good product and provide acceptable service within a niche market of “off the beaten path” visitors. It is clear, however, that Ambassabeth Cabins and Nature Trails can benefit from appropriate marketing, both locally and overseas. Effective marketing depends to a large extent on marketing information. At present, only a limited amount of data is available for the design of an effective and cost-efficient marketing plan.
Increasing Visitations
Visitors arrive at the Cabins via tour companies, independent taxi operators and private vehicles. The Cabins’ local marketing plan should undoubtedly include the tour companies so that Ambassabeth is among the tour packages they sell.
Visitors get much of their information about the Cabins via word of mouth. Although this is an important element in Ambassabeth’s marketing plan, much more needs to be done in order to increase awareness and visitor arrivals. For example, Ambassabeth has very favorable reviews from past customers on Trip Advisor and other travel websites; these could be used to the Cabins’ advantage.
The only reported point of sale is direct purchase by customers at the Ambassabeth location. Once it obtains its JTB license, Ambassabeth can make arrangements with some leading hotels and hotel groups, Port Antonio cruise ship operators, the JTB desk at the Kingston and Montego Bay international airports, and international tour operators who maintain desks at many hotels.
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The internet represents the most cost-effective form of marketing for projects like Ambassabeth. Foreign independent travelers use the internet as their primary source of information when planning their trip. While a web search for Ambassabeth will lead to a number of articles and visitor accounts, Ambassabeth Cabins and Nature Trails are embedded in the BFPA http://www.bowdenpenfarmers.com/ , but the Cabins need to be promoted independently or at least have their own page on the site that can serve as a distinct point of sale.
Stakeholder Relationship
The relationship between the Cabins and the community is fourfold:
1. the community provides input to the business planning of the cabins 2. the cabins provide employment to a relatively small number of residents 3. the cabins purchase inputs/products from the community 4. there is an informal profit sharing scheme in place.
There is thus a mutual dependence between the cabins and the community (as represented by the Bowden Penn Farmers Association). This type of relationship is unique to Jamaica and should be encouraged. When the community feels that they have a stake in the success of the enterprise, they will most likely be amenable to accommodating visitors and sharing their knowledge on the history, culture and nature in the area and consequently be an important part of its preservation.
3.3 RASTAFARIAN INDIGENOUS VILLAGE
3.3.1 Profile
Grounds of the Rasta Village
The Rastafarian Indigenous Village, which opened in December 2008, is designed to offer an insight into the aspects of the culture, philosophy and spirituality of Jamaica’s Rastas. The Village is situated on the lush Montego River Gardens property, in the community of Portabello, approximately 15 minutes by road from the tourist resort town of Montego Bay.
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The main economic activities of the community are tourism and small commerce. Major issues/concerns affecting the area (in order of priority) are financial, environmental, educational, organizational and political. Like most rural communities in Jamaica, rural underdevelopment is a major concern. This is correlated with rural poverty and relatively high levels of functional illiteracy, and low levels of academic achievement.
The Village, as a visitor destination, is compliant with all safety, security, health standards and meets the insurance requirements, and as a result, is in the process of being licensed by the Jamaica Tourist Board as a recommended tourist attraction.
"The village is defined as indigenous because this cultural form is home grown and native to Jamaica and has achieved international recognition because of the meanings and lifestyle defined by the followers in Jamaica," explained Edward Wray, one of three owners of the village. His partners, Arlene McKenzie and Mark Beckford, believe it is this interest that will allow the Village to offer visitors to the island an understanding of the Rasta culture.
The Rastafarian Indigenous Village (RIV) is supported by the IION Station Rastafari community group, which has a core of 12 men and women and a wider group of about 40. The group was formed over a period of 8 years and is well known around the urban center of Montego Bay as they wander the streets selling hand-made craft items, soap and incense. They can proudly say that they have rescued the down-and-out from the streets through their counseling, reasoning, and open door policy of listening to peoples’ stories. Their chants and poems are also well known as they in turn try to raise the awareness of the general populace and find a source of sustainable income for their families.
Edward Wray (Firstman) and Mark Beckford (Kanaka) approached the Tourism Product Development Company Ltd. (the agency appointed to give advice on tourism development) and there met with Arlene McKenzie, Standards Manager, who was responsible for the western region. Experienced locally and internationally in teaching, training and tourism attraction development, Ms. McKenzie helped the group develop their idea from an event- centered activity to a cultural heritage attraction project.
Today, the RIV is powered by these three individuals’ collective desire to strengthen and build on the unique and principled values and attitudes the Rastafari community, and to contribute overall to building a better nation. The Village is designed as a Rasta commune, which embodies the lifestyle and philosophy of the movement. It showcases the foods, herbs, spices, culture, music and other aspects of living in harmony with nature.
3.3.2 Governance structure
RIV is a Limited Liability Company, created, owned and managed by its three active directors: Arlene McKenzie, Edward Wray and Mark Beckford. Its primary goal is to establish a “village” to showcase the life of the Rastafari of Jamaica to visitors from home and abroad. The village concept refers to a small group of people – a community of like mind and background – living in a rural/natural or nature-based setting.
The “villagers” all operate within a model framework that changes and takes form as and when different needs arise. They are signatories to an initial Memorandum of Understanding that governs their “stake,” their behaviors and their profitability. They will not initially be domiciled together, but will be a daily working group.
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RIV is the parent company and provides the overall management for the collective initiatives of all persons associated with the Company. RIV is in the process of developing and establishing an artisans’ collective from among the “villagers.” They will produce crafts and other indigenous products for sale to people who visit the Village.
The business model of RIV will be a private sector company with directors who will enable the development of other micro enterprises that were also created to facilitate their own productivity, growth, development and profitability.
RIV intends to have partnerships with the following agencies to serve as a model and training center:
• Tourism Product Development Company TPDCO – Tourism training • Rural Agricultural Development Agency RADA- Agricultural training • The Jamaica Business Development Company JBDC – Entrepreneurship training • The Scientific Research Council SRC – Development of the herbal gardens • The Jamaica Intellectual Property Organization JIPO – To ensure that Village creativity and cultural products are protected. • Jamaica Trade and Invest, JTI – To develop our productivity and business opportunities internationally.
3.3.3 Visitation
Main entrance into the Rasta Village
The principal tourism product is a “Rastafari Experience” targeting the “educational, cultural, peaceful eco-tourist.” The RIV experience takes visitors on a journey to discover the natural mysticism of the Rastafari of Jamaica. Visitors are taken across a small natural stream, a tributary of the Montego River, through a lush. fruited, landscape, up unto a bluff in the hills of St. James, to hear Nyabinghi drums, view original designed handmade crafts, listen to the philosophy and teachings of the Rastafari elders, drink coconut water or cane juice, and be introduced to herbs, teas and associated medicinal remedies.
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Storyboards and the unique dialect of the Rastafari guide visitors to an understanding of the principles of this endemic group. Visitors are invited to stay for an hour or the day; they are invited to become immersed to make themselves at home among the villagers.
While RIV is currently open to visitors, it is still in its startup phase. Tours are offered through Budget Tours Jamaica.
Exhibit 3-2 Nationality of Visitors to Rastafarian Indigenous Village
Distribution of Visitors by Nationality Nationality Percent USA 40 Europe 30 Jamaica 25 Did not indicate 5 Total 100
Approximately 40% of visitors to the Rastafari Indigenous Village are from the United States of America. With the current economic recession, it is expected that significantly fewer visitors will arrive at the Village from the USA or Europe. A greater marketing effort is therefore being focused on the domestic Jamaican market during this period and a long-term marketing strategy targeting the local market is being planned.
Approximately 70% of visitors to the Village are from the resort town of Montego Bay. These visitors are primarily from the hotels and guesthouses in and around Montego Bay. The RVI has not yet fully tapped into the cruise ship market, but this is expected to change over the next twelve months. Almost all of the visitors to the Village arrive by way of a tour company.
3.3.4 Finances
The estimated cost of the RIV project from start to finish is J$15 million. This, however, does not include the purchase of land or lease agreements.
The gross annual sales/revenue in goods and/or services in 2008 was less than J$200,000. However, the project was not fully operational during this period. Still, it was a rather small intake for a project of that size. It is projected that the project will break even in about five years based on a Project Analysis that was undertaken.
In January 2009, the project received a capital development loan of J$3 million from the Tourism Enhancement Fund. Other financing came from private investment made by directors and friends and family. Additional funding was obtained from the Tourism Enhancement Fund, but unfortunately an application to the CHASR Fund was rejected. An application has been submitted to the Environmental Foundation of Jamaica for solar equipment and the construction of greenhouses, but is still awaiting a response.
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Infrastructural development at the RIV
Several studies were undertaken to guide the development of the indigenous village. They include:
• feasibility study • a competitor analysis • a market research analysis • a business plan • a financial proposal.
According to co-owner Mark Beckford, RIV overcame the obstacle of accessing financing that faces most CBTEs by presenting a clear, marketable concept using traditional financing terms such as debt, equity, return on investment, etc. Having a highly experienced management team helped identify and secure funding from a variety of sources at the outset.
3.3.5 Marketing
Marketing is one of the most important activities being undertaken by the management of the RIV and the team has implemented a very strong marketing campaign to ensure that they meet their annual revenue goals.
Information about the Village is disseminated in a variety of ways:
• word of mouth • advertisement • website • hotels • tour operators • cruise ships • travel agents.
The Rastafari Indigenous Village utilizes the following sources for advertising its product:
• Television
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• Radio • Newspaper • Magazines – primarily the Jamaica Tourist • Flyers/brochures • Visitor catalog.
The three main points of sale for the Rastafari Village are:
• Direct purchase by customers at the CBTE location • Group sales • Included in package (tour operator).
3.3.6 Stakeholder Relationships
The Directors of RIV recognized the need to create an enabling environment in order to enhance the skills, education awareness and experience of the stakeholders (“villagers”) who exist within the Village space; it evolved through the recognition of the need to build wealth within the community, encourage business development and sustainable livelihoods, and by extension, profitability for the creative industries within Jamaica.
The stakeholders are men, women and children who are “crafticians”: artisans, poets, chanters, musicians, students and organic farmers. The relationship between the project and the community is three fold:
• employment of persons from the community • profit sharing with members of the community • rental of space on the property to allow selected community members to display and sell craft items.
3.3.7 Key Lessons Learned
The Rastafarian Indigenous Village has developed a strong brand identity based on the Rastafarian culture, which is closely aligned with the Jamaican “brand.” It builds on the curiosity and growing visitor awareness and acceptance of this alternative lifestyle made famous by Bob Marley and reinforced in popular culture through strong destination branding. RIV has demonstrated that an intangible heritage can be packaged as a tourism experience, providing an effective combination of popular culture and heritage tourism.
The location identified for this project is one of the key drawing cards for the local tour operators and tourists alike, coupled with the uniqueness of the attraction. Its proximity to two of Jamaica’s most important resort centers – Montego Bay and Negril – make it an easy day trip for both stay-over and cruise visitors. RIV is one of the few CBTEs in Jamaica that markets itself as an “experience” rather than a combination of tourism products and services available to visitors.
The management team at this attraction is very marketing and standards oriented, which should help improve the tourism product and visitation levels of RIV . Unlike other CBTEs, RIV was well designed when it began, and generated strong local support through the prior work and active engagement of like-minded individuals in the Montego Bay community.
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This is a relatively new operation; however, the owners have strong management skills and the vision to make this into a very viable entity given the required financial resources. They possess a good blend of cultural knowledge, commercial promotion, government standards, and business management.
By setting themselves up as a Limited Liability Company from the outset, while establishing a formal mechanism for the wider involvement of people from a number of rural communities, the Village concept differs from other CBTEs. It is not an outgrowth of a single community, but rather creates a “new community” where all members have a stake in the success of the enterprise.
3.4 YS FALLS
3.4.1 Profile
YS Falls is a well established nature attraction on the Browne family property on the YS River in St. Elizabeth. The three-tierd waterfall is the centerpiece of a larger attraction that includes picnic areas, a rope swing, and a gift shop. At the falls, visitors can swim in the natural pools, take pictures, tour a working farm, enjoy scenic vistas, ride inner tubes, tour the canopy, or visit two gift shops, the restaurant, and bar. The site also has full restroom facilities, and can accommodate both individuals and tour groups.
Transportation to the falls is provided by a tractor pulled-jitney in a 10-minute journey from the visitor center through an active horse and cattle farm. The Jitney carries a maximum of 24 persons. Accompanying each Jitney is the tractor driver, a security guard and a sideman responsible for opening and closing the farm gates.
Located near Middle Quarters in the parish of St. Elizabeth, YS Falls comprise a steep staircase of seven waterfalls dropping from a height of 130 ft. Access to the site is well marked, so that travellers arriving by private car can find it easily.
The YS Falls attraction has been operated by Suncoast Investments Ltd. (a small family business) since the early 1990s. The attraction is operated under license from the Ministry of
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Tourism through the JTB [Tourist Board Act (1995) – nature Attraction License – Section 23B].
Management has also developed and enforced an environmental purchasing policy as well as a general Environmental Policy that seeks to achieve sound environmental practices across the entire operation. The company has both a Health and Safety Plan and an Emergency Response Plan. The contents of these are discussed at regular intervals with the staff. The Emergency Response Plan includes events surrounding floods, accidents, illness, social unrest, vehicular collisions and equipment failure. The TPDCo inspects the premises twice per year and the Public Health Inspector attached to the Ministry of Health inspects them once per week. A Health and Safety Officer also visits at regular intervals.
In 1995, 1997, YS Falls was the JHTA’s “Attraction of the Year.” Other awards included:
Exhibit 3-3 Awards Received by YS Falls
Year Award Institution
2002 Outstanding Environmental Stewardship in Ministry of Tourism Developing an Ecotourism Attraction
1996 Good Environmental Stewardship TPDCo
The main economic activities in the community are tourism (ecotourism) and farming. Holland Sugar estate is the major business enterprise in the area. There are no known social/civic organizations within the community.
3.4.2 Governance Structure
The YS Falls community project is a privately owned family-operated business that is registered as a Limited Liability Company, Suncoast Investments Ltd. YS Falls employs 35 people; all of them have been trained by TPDCo. The staff turnover rate is extremely low with 70% of staff members being employed since the inception of the YS Falls Attraction. Employees come from the neighboring communities; many of them worked on the land in other capacities before the opening of YS Falls.
YS Falls also provides facilities for local artisans to display and sell their craft items to visitors to the site. Community members are given the opportunity to be involved with the operation of the attraction.
The mission of Suncoast Investments Ltd is well understood by all members of staff and an Environmental Management Plan has been in force since inception. Activities implemented are based on recommendations from a 2002 Environmental Audit, which led to the YS Falls attraction being Green Globe certified. Some of the environmentally friendly practices employed include the installation of composting toilets, use of compost as manure for horticulture, and use of graywater for irrigation and pasture.
Outside speakers are invited to give annual “pep” talks to the staff. The company has also instituted a literacy program to assist the lifeguards in their personal development as well as in fulfilling TPDCo criteria to be licensed in lifesaving techniques and CPR. While no specific
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academic qualification is set for employees, they are expected to grow and learn, and growth is evident among staff members. The Managing Director, Assistant Manager and Gift Shop Clerks are proficient in the use of the computer. Management meets and speaks with staff members individually to help them keep focus on their goals and the job at hand. Members of staff have been allowed the opportunity to learn each others’ jobs and as a result, an occasional absence presents no problem for the attraction.
In the last staff audit done in 2003, most of the staff were able to give a basic description of their role and responsibilities, and were aware of the importance of their role in the running of the YS Falls Attraction. Most staff members communicated great understanding of the concept that their treatment of the visitors went a long way in their decision to return as well as to recommend it to their friends. All staff expressed delight in working at the attraction. Staff members made suggestions for an improved workplace, most of which have been implemented (e.g., regular meetings). Suggestions were also made for improvements at the attraction (e.g., placement of a rubbish bin along the way to and from the falls for visitors to put their garbage).
Other recommendations from the audit have been implemented to help boost the abilities of the “team” to give star performance.
Management has tried to keep the cost of experiencing the Falls affordable and competitive. However, heavy losses are incurred during the rainy and hurricane seasons, when floods dictate the closure of the facility until the water abates and runs clear.
3.4.3 Visitation
Most tour groups arrive on Tuesdays and Thursdays. Thursdays are usually the busiest days, with peak visitation between noon and 1:30 p.m. An arrangement is made with the tour companies; they are issued with vouchers which they present to the ticketing office in exchange for passes to the Falls. Tour companies are billed monthly. The average length of stay for tour groups is 1½ hours.
Local people purchase tickets on arrival. Large local groups are requested to make a booking in order to afford management the opportunity to schedule a date which has less tourist
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arrivals in an effort to observe the rules of “carrying capacity.” Additionally, groups are encouraged to have a limit of 30 members.
Exhibit 3-4 Visitor Arrivals to YS Falls over the period 2005 to Jan-Sept 2007
Year Total Stopover Visitors to YS Falls 2004 39,499 2005 48,127 2006 49,138 2007 (est.) 55,100 2008 (est.) 58,000
Visitors to the YS Falls are mainly European stop-over tourists. The increase in visitors to Jamaica in 2006 was not reflected in the percentage of stopover visitors visiting the YS Falls as its visitation numbers fell .4% below those of 2005. A few cruise ship passengers visited YS Falls during 2006, but this has not continued.
In 2008, year-end figures reflected an increase in visitors of about 5% over 2007, with about 58,000 visitors in 2008. The 2009 figures to date are on a 5% increase pattern; therefore, by all indications the 2009 visitor arrivals are projected at about the 62,000 mark.
The YS Falls Tour is also being sold as a package with other south coast attractions such as the Black River Safari.
3.4.4 Finances
The present financial situation of the YS Attraction is sound and its audited financial statements are current. Annual gains have been made since 2002. Prior to this there was a slump in the arrival of European tourists, who are the main visitors along with locals.
Very modest profits are being made and an increase in entrance cost would assist in defraying the cost of much-needed river training equipment and continued maintenance as well as for hiring supervisory staff to assist with management duties. The entrance cost increase is still under careful consideration.
Income is generated from the entrance fees and sale of special packages, e.g., tubing, canopy tour. From this income, salaries are paid, leasehold payments are made to the YS Estate, and maintenance and staff training are funded. The ravages of recent floods and the resulting closure of the Falls to visitors regularly during October and November 2007 no doubt significantly lessened 2007’s profit margins.
YS Falls’ gross annual sales/revenue in 2007 was over US$2 million. The actual figure may be considerably more. In the financial year 2006/2007, the project obtained a capital development loan of US$3 million from the Bank of Nova Scotia. No other financial assistance has been received in the recent past whether by way of grants, loans or investment capital .
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3.4.5 Marketing
The Marketing Plan (2008-9) utilizes four main strategies:
1. Make staff aware of “Brand YS” and their role as members of the YS Marketing Team 2. Create a slogan to go with a logo on brochures, etc. for brand identity 3. Complete review of the “Product Offer” package to visitors and implement refurbishing exercise 4. Develop and implement a more aggressive marketing and communication campaign.
The Managing Director is responsible for promotional and sales activities. Efforts are made to make YS Falls an internationally recognized attraction on all visitor’s “must see” list.
A new web site is presently being established to capitalize on the increasing use of the internet as a marketing tool. Advertisements are placed in the Negril Guide and the Destination Jamaica magazines. Brochures are distributed to tour companies locally and overseas. Material is also provided to the Ministry of Tourism for their “Travel Agent Familiarity Tours.” The YS Falls Tour is also being sold as a package with other south coast attractions like the nearby Black River Safari.
The Strategic Marketing and Communications Plan for the YS Falls is directly linked with its environmental policy, which places it in the unique position of not wanting to increase visitation more than 5%.
Efforts will continue to support the mission and goals of YS, with the purpose of:
• Maintaining current visitation levels and increasing them by only 5% • Motivating and encouraging visitors (stay-over visitors and cruise passengers) to visit YS Falls • Encourage all Jamaican residents to visit YS Falls.
The current YS Falls marketing team comprises one individual – the Managing Director. The establishment of partnerships with Chukka Tours, South Coast Safari, St. Elizabeth Safari, tour operators, information desks and hotels has boosted marketing efforts and resulted in a 5% increase in the number of visitors in 2008. The alliance with Chukka Tours helped restart the cruise ship market during 2008.
Exhibit 3-5 Nationality of Visitors to YS Falls Nationality Percent USA 20 Canada 15 Europe 50 Local 15 Total 100
With the present economic recession in the United States, the management of YS Falls has stated that it is unlikely that there will be an increase in the percentage of visitors from the US. Emphasis is thus being placed on marketing YS Falls more extensively in Europe, the Far East, South America and locally.
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The visitors to the YS Falls primarily come from the following resort areas:
Exhibit 3-6 Source of Visitors, by Resort Area Resort Destination Percent Negril 60 South Coast 10 Montego Bay 20 Ocho Rios 5 Kingston 5 Total 100
The data indicate that the Falls have not been able to fully exploit the cruise ship market. This is more likely due to the distance between Middle Quarters and the cruise ship piers of Montego Bay, Ocho Rios and Port Antonio. It is unlikely that YS Falls will attract a large number of visitors from these areas in the foreseeable future. Most visitors to the alls arrive from Negril in Westmoreland. The marketing effort is therefore concentrated in that area, and to a slightly lesser extent in the tourism capital of Montego Bay. Tour companies bring 70% of the Falls’ visitors, followed by private vehicles (15%) and privately operated mini buses (15%). The channels used to promote YS Falls are wide and varied, and include avenues such as: • Word of mouth, primarily from satisfied customers • Websites • Hotels • Tour operators • Travel agents • Advertisements in newspapers, magazines (Negril Guide, South Coast Guide, Destination Jamaica ), flyers/brochures, and visitors catalog.
Management has reported that the advertising strategies have worked very well and that they do an evaluation periodically with a view to effecting changes where appropriate and to improve efficiencies where necessary. The reported points of sale are: • Direct purchase by customers at YS Falls • Hotels • Inclusive in package tours by tour operators.
The main competition to YS Falls reportedly comes from:
• Mayfield Falls in Westmoreland • Chuka Adventure Tours in St. Ann • Dunn’s River Falls in St. Ann.
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3.4.6 Stakeholder relationships
No surveys have been conducted to determine the satisfaction of locals living near the YS Attraction. While it can be assumed that some are satisfied because the community benefits are obvious, there are those who are disgruntled because they are not allowed to “higgle” 9 on the property.
At the YS Fall Attraction, all staff members are from the immediate community. The restaurant/grill is operated by community members who pay a meagre J$1000 monthly to cover electricity costs. The bar is also operated by community members who pay J$2000 monthly to defray electricity charges. There is no rental charge.
The operators of the YS Falls Attraction donate food and equipment to a nearby basic school annually. They also donate to local football development through three Youth Clubs. A local primary school gets J$10,000 per term to augment its school feeding program. Additionally, training and learnt values are thought to filter into the community, i.e., no harassment of tourists; keep areas clean and beautiful. The direct financial benefits (salaries) also filter down to local shopkeepers and vendors.
The managers maintain the policy of continued support to the community. The local community is encouraged to visit the Falls. However, to help prevent trampling of the countryside, the Falls are closed on public holidays, when the local community seeks out fun activities in droves. Groups are also limited in numbers and are required to make bookings that assist the Managers in planning for tour groups.
The relationship between the project and the community is basically two-fold: a) Employer of labor – the complement of staff is 35 persons, 4 of whom are in management positions b) Purchaser of inputs/products – primarily craft items.
The project is therefore a provider of employment and income to the community .
3.4.7 Key Lessons Learned
YS Falls is a well managed organization with a first-rate tourism product and provides quality service to its visitors. Its main weakness relative to its competitors is its location. However, with superior service, an excellent product and a well managed marketing plan, YS Falls competes successfully with its competitors and is still one of the leading attractions on the island.
The management of YS Falls ensures that at all times the management team:
9 Higgler has survived in the West Indies, especially Jamaica, in the sense of a market trader, but has disappeared everywhere else. But only a century ago, most English market towns had their higglers. They were middlemen — they went round the farms of the local area, buying up produce such as poultry, rabbits, eggs and cheese to sell in the market. In return they supplied goods the household needed. Some of the trade was done by barter rather than by money changing hands, but all of it involved haggling — which is where the name came from.
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• Enforces current marketing and communication partnership arrangements • Provides training programs on strategic marketing and communication to the work team • Make the staff aware of YS as a “brand” • Develops and implements a comprehensive and integrated marketing and communication action plan • Monitors and evaluates the results/impacts of each marketing and communication activity against objectives.
Being an owner operated, managed and financed enterprise, development plans and operating decisions are made in a timely fashion, which contributes to a smooth operating process. The management team is highly educated and skilled, and maintains close affiliations with the relevant tourism agencies and organizations such as TPDCo, Jamaica Hotel and Tourist Association, and the Association of Jamaica Attractions Ltd. These key networking organizations assist in the promotion and marketing of the Jamaican tourism product.
3.5 CONCLUSIONS
The three case studies can be considered success stories in their own right, and examples for other CBTEs to follow. Below is a list of common elements to their relative success:
• Each offers a well defined, uniquely Jamaican experience that also provides essential visitor services and facilities such as food and beverage services, shelter, energy and water supply and toilet facilities.
• Each has effectively demonstrated the benefits of the enterprise to the local community and consequently enjoys community support. For the members of the community, the enterprise is the principal source of employment, buyer of agricultural and other local products, and provider of opportunities for related services (e.g., craft shops where local products can be sold directly by artisans).
• Each has focused on training in hospitality, customer service, and specialized training around their specific offerings (e.g., first aid, trail guiding, lifesaving). The CBTEs have worked with the TPDCo in terms of training, to ensure that their staff meets international standards of service.
• At the center of each of these organizations is one or more entrepreneurs/leaders who can articulate the vision of the organization to staff, authorities, customers, and partners in the tourism supply chain. This is particularly important for the workers, who have had little or no exposure to tourism, particularly international visitors. Bridging this gap between visitor expectations and “normal rural lifestyles” in host communities is a challenge that all three have overcome.
3.6 KEY LESSONS LEARNED
Ambassabeth Cabins and Nature Trails has been able to diversify and enhance its tourism product and income generation capacity by creating a unique experience. In addition to selling accommodations, Ambassabeth provides an outlet for locally produced craft items that rely heavily on the natural resources and traditional skills from the area. The guided hikes on
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the nature trails and visits to local heritage sites have raised the importance of preserving the environment as well as the area’s culture and history.
The management of Ambassabeth Cabins is enthusiastic about staff development and training. It has been able to forge new linkages with private and public organizations to secure technical and/or financial assistance (i.e., grants) and in-kind support for training members of its staff and the local community, and to strengthening its business.
The management of Ambassabeth Cabins attempts to review the business periodically to ensure compliance with operating guidelines, recognizing the value of guest feedback and monitoring trends to ensure that the business is sustained .
Marketing has been identified as one of the weak areas of Ambassabeth’s operations and a much more organized and targeted approach will have to be developed and implemented to ensure an increase in visitor arrivals and expenditures. The management team primarily consists of one person (the General Manager). Given the importance of effective marketing to Ambassabeth’s prosperity, it would be wise to hire someone with tourism marketing experience or work with partners to participate in group marketing initiatives that promote similar types of products and/or other attractions in the area.
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4. REDI OPERATIONS MANUAL FOR TOURISM SECTOR
4.1 INTRODUCTION AND DEFINITION OF TERMS
4.1.1 REDI Support to Rural Tourism
Target Beneficiaries
The Rural Economic Development Initiative (REDI) is ultimately intended to benefit people living in Jamaica’s rural communities. The Initiative’s support to rural tourism enterprises, intermediaries, and public and private institutions provides the mechanism for improving the competitiveness of individual income-generating activities; supply chains linked to tourism inputs, products and services; and the tourism sector as a whole. Improved competitiveness, in turn, will increase revenues flowing to rural communities, create employment opportunities, and, in some cases, even improve public infrastructure.
Desired Subproject Outcomes
Each rural tourism beneficiary is expected to demonstrate measurable improvements in its operations as a result of receiving REDI support. The Jamaica Social Investment Fund (JSIF), REDI’s implementing agency, intends that Type 1 subprojects become “commercial” tourism enterprises. For example, the beneficiaries would be fully registered and licensed, have a system of financial accounts, and ultimately qualify for financing from commercial banks. Type 2 subprojects are expected to add value to multiple rural tourism enterprises in the supply chain by focusing on critical links that are either missing or underperforming. In some cases, Type 2 subprojects will also create public infrastructure in communities that, in addition to the benefiting tourism enterprises, serve the wider community.
Desired REDI Program Outcomes
The desired REDI program outcome is to formalize the rural tourism sub-sector. Through partnership with, and support to, national public and private organizations in the tourism sector, Rural Tourism Enterprises will be a recognized part of the Jamaican tourism industry, and rural tourism attractions will be more widely promoted as part of the Jamaican tourism experience.
Performance Indicators
The performance indicators for REDI rural tourism will be measured at the community, enterprise, and sector levels.
Community level
• Number of persons living in rural communities directly or indirectly participating in rural tourism as a result of REDI support
• Number of persons living in rural communities with access to small-scale infrastructure and facilities funded by REDI
Enterprise level
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• Net increase in revenues of REDI-supported Rural Tourism Enterprises
• Number of wage-earning persons employed in REDI-supported Rural Tourism Enterprises
• Number of REDI-supported Rural Tourism Enterprises that can demonstrate improvements in their commercial operations (based on checklist)
Sector level
• Number of Rural Tourism Enterprises operating with Tourism Board licenses
• Level of support from Tourism Product Development Company (TPDCo) to Rural Tourism Enterprises
• Number of distribution channels selling Rural Tourism Enterprise products and services created or strengthened
• Number of Rural Tourism Enterprises that are members in industry associations and chambers of commerce
• Establishment of a national policy and strategy for developing and promoting viable Rural Tourism Enterprises.
4.1.2 Rural Tourism Components and Subprojects
Type 1 Subprojects
Type 1 rural tourism subprojects support the revenue generating activities of rural enterprises that provide tourism products and services. REDI assistance combines professional services with product development support that will help move the Rural Tourism Enterprise from a project to a commercial operation. A typical subproject in this category would be the development or enhancement of tourism products and services focused on history, culture and nature experiences that attract domestic (Jamaican) and international visitors. These subprojects will create new enterprises or enhance the competitiveness and viability of existing ones. Examples of such competitiveness enhancement include:
• Assistance with business planning and defining target markets, conducting research into existing and potential markets, and visitor opinion and satisfaction surveys
• Evaluating and overcoming market access constraints
• Identifying and helping secure relationships with key intermediaries and sales/distribution points, or other businesses within the supply chain to improve the marketability of its product or service
• Exhibiting in Jamaican and international travel trade shows
• Supporting improvements in product or service design and delivery in order to comply with the Tourist Board license
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• Providing Team Jamaica 10 training for guiding and other visitor services
• Basic business skills, including bookkeeping, operations management and marketing.
Provisionally selected rural enterprises will be required to register as cooperatives, benevolent societies, friendly societies or non-governmental organizations before the Selection Committee makes its final funding authorization. Alternatively, enterprises may collaborate with or be sponsored by a legally registered community organization, provided they are able to demonstrate how the subproject will benefit that community.
Type 2 Subprojects
Type 2 rural tourism subprojects are not designed to support revenue-generating activities directly, but rather to contribute to the improved competitiveness of a cluster of Rural Tourism Enterprises. Often the costs of such interventions are beyond the resources of any one Rural Tourism Enterprise and consequently are not included in their investment plans. To qualify for Type 2 subprojects, applicants will be required to demonstrate that the products or services to be supported or enhanced in their community are viable and marketable.
There are two categories of Type 2 rural tourism subprojects: 1) small-scale infrastructure and 2) marketing and promotion services.
Category 1: Small-Scale Infrastructure Subprojects. This category includes critical small- scale infrastructure that helps increase the marketability of a rural tourism effort by meeting the needs of visitors and tour operators interested in Jamaica’s heritage, culture and nature attractions. Examples include:
• The construction of public bathrooms
• Solid waste collection, transfer and disposal/recycling
• Construction of visitor/information center, museum, crafts and merchandise outlets
• Office equipment for a common booking service or distribution channel including satellite- based internet access
• Scenic overlooks and viewpoints
• Landscaping, picnic areas and walking trail development
• Directional and interpretive signage
• Rehabilitation of or safety enhancements to public attractions (e.g., hiking trails, waterfalls, caves, mineral baths).
10 Team Jamaica is the TPDCO-required training for all businesses (including taxicabs) that interface with international visitors.
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Category 2: Marketing and Promotional Services Subprojects. This category includes investment in marketing and promotion services to benefit a group of Rural Tourism Enterprises that utilize a common attraction (e.g., co-located businesses operating around a heritage site or nature attraction), form a tourism circuit (i.e., multiple stops in a visitor’s itinerary), or operate within a segment of the tourism market (e.g., agro-tourism). Applicants for these grants will be required to provide a detailed marketing strategies and plans for financial sustainability (potentially including fees, dues, commissions, and other methods for generating the revenues required to support ongoing operations), and demonstrate buy-in from project participants/beneficiaries. Examples of tourism marketing and promotion services include:
• Development of rural tourism “brands,” websites/web pages, marketing strategies, and online reservations systems (which could be also implemented on a regional basis, e.g., Blue Mountains, island wide)
• Press and tour operator familiarization tours to rural areas
• Establishment of marketing and sales kiosks in tourism hubs
• Production and distribution of brochures, DVDs and other collateral materials
• Participation at, or even organization of, a trade show (if organized for Jamaica’s rural tourism industry as a whole)
• Internet marketing
• Travel trade networking (sales calls, workshops, and performances and exhibitions in tourism hubs).
Partners in Type 2 Subprojects include parish councils, parish development committees, legally registered community organizations and industry associations, non-governmental organizations, and combinations thereof. For example, all of the rural tourism enterprises and town councils in the Blue Mountains region could form and register as a Blue Mountains Tourism Association and apply for a marketing grant, or a parish development committee could apply for assistance in promoting and marketing a rural tourism circuit within the Parish. Alternatively, an agro-processors association could also apply for a Type 2 investment for shared facilities (e.g., post-harvest processing, refrigeration).
Grant Amount. It is expected that the maximum grant for Type 2 subprojects will not exceed US $100,000. The financial contribution of the partners towards the total cost of the subproject would be a minimum of 20 percent (cash and/or in kind).
Legal Status of Type 2 Beneficiaries. Organizations that will implement small-scale projects will be required to register as cooperatives, benevolent societies, friendly societies or non- governmental organizations before the Selection Committee grants its final authorization of funding. However, for the larger more complex projects JSIF will implement, groups must be organized, although not necessarily registered. Alternatively, enterprises could collaborate with or be sponsored by a legally registered community organization, provided they are able to demonstrate how the subproject will benefit that community. In other words, the aim of the subproject selection process is not to promote a specific type of organizational structure; it is
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to identify and support those projects with the greatest potential to deliver broad-based economic benefits to rural communities.
National Rural Tourism Subsector Support
The main objective of this component is to work with national agencies and organizations to increase tourism’s contribution to rural economic and social development. This will involve support to sector policies, research studies, standards, licensing, incentives, financing, marketing and promotion.
REDI will also provide financial and technical assistance to build the capacity of national public and private organizations that deliver support services in rural tourism enterprises. This assistance is intended to allow these organizations to help new, expanding, and operating rural tourism enterprise and other project partners and ensure their sustainability.
JSIF will invite financing proposals from such organizations as Chambers of Commerce, local government, TPDCo, Parish Development Committees, and institutions linked to rural tourism such as industry associations and non-governmental organizations. JSIF will evaluate the proposals based on their potential contribution to the achievement of REDI project objectives and to the operation and sustainability of rural subprojects (type 1 and 2) financed under the project.
There is no maximum funding ceiling for Component 2 projects; additionally, no counterpart financing is required. However, institutions will be required to indicate how the assistance will support the subprojects implemented under Component 1. They must also monitor and evaluate the impact of the technical and capacity building assistance received.
Examples of technical assistance and capacity-building programs in the rural tourism sector that could be financed under this component include:
• Assistance to the Ministry of Tourism to develop a policy and strategy for rural tourism development, including hiring a consultant to lead the process, hosting consultations across the island to discuss challenges to and opportunities for rural tourism development, conducting baseline research, and hosting workshops to define needed policy reforms.
• Assisting the Ministry of Tourism and TPDCo in reviewing and recommending improvements to the standards and licensing of rural tourism products and services (including insurance requirements).
• Development of a marketing platform (e.g., rural tourism association development, branding, marketing) for rural tourism products.
• Training for TPDCo staff, focused on rural tourism and niche market tourism development, including culture and nature-oriented tourism product development.
• Trade shows, exhibitions, familiarization tours, press trips, advertising, webpage development, search engine optimization and online marketing, online reservations systems, publications, etc.
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• Development of rural tourism training aids (handbooks, newsletters, “how to” websites) to be used and distributed by TPDCo Officers to rural communities and enterprises.
• Cross-cutting studies to develop and enhance rural tourism opportunities, for example by investigating barriers to entry for rural tourism product providers.
Financing of Component 2. JSIF will finance the training and capacity building programs of national government agencies through institutional agreements. The grant recipient will implement the technical assistance and capacity building program. JSIF will finance the program costs, which are expected to include: consulting fees, training materials and other training costs such as trainer fees, travel, training room rentals, trainee room and board, etc. The project will finance services, training costs, and possibly minor amounts of goods and works. JSIF will not finance salaries or benefits for public sector staff, only incremental public sector costs.
For support to private and non-governmental organizations, such as industry associations, Chambers of Commerce, Parish Councils or Development Committees, and education institutions, JSIF will sign a grant agreement similar to Type 2 grant agreements.
4.1.3 Definition of Terms
• Applicant or applicant organization – The entity responsible for submitting a proposal for REDI funding
• Community-based organization (CBO) – An organization, whether formal or informal, made up of representatives of a community. Typically, CBOs are organized for a specific purpose and do not have a political or religious affiliation.
• Cultural tourism – A broad category of tourism products and services where the attraction and experience is based on the distinctive culture of a place. Cultural tourism is often associated with food or cuisine, music, dance or other performing arts, and distinctive lifestyles. Note that cultural heritage incorporate traditional cultural practices and is normally classified as “heritage tourism”.
• Heritage tourism – A broad category of tourism products and services where the attraction is based on a distinctive history or a place. This category is typically associated with built heritage (e.g., historic sites, public arts, monuments, museums, archaeological sites).
• Nature-based tourism – A broad category of tourism products and services focusing on nature attraction. It includes waterfalls and river recreation, hiking in natural areas, and animal, bird or plant viewing. It also includes underwater marine recreation such scuba diving and snorkeling, and fishing. Nature-based tourism typically would not include water sports such as waterskiing, surfing or windsurfing, motor boat or sail boat rides, beach or other outdoor recreation.
• Professional service provider – A company or individual providing established services to businesses. These include accounting and financial management, marketing and business planning, training and human resource development, management and staff training, and support in Information and Communication Technology (e.g., internet services, web-hosting, remote communication networks).
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• Proposed project – The proposed use of funds requested. For start-up businesses, the proposed project might be the same as the business activity. For an established business, the proposed project can be a specific expansion or improvement to the current business activity.
• Resort area – The established areas with a concentration of tourism establishments and officially recognized in government and industry marketing materials. These areas are typically supported by tourism infrastructure (e.g., airports), cater to a large percentage of visitors, and represent subsectors in tourism organizations (e.g., JHTA Chapters, TPDCo Resort Boards).
• Rural Tourism Enterprise - Refers to an entity engaged in an income-generating, productive activity focused on international and domestic visitors as customers. It is based in a rural community(ies), employs persons residing in rural communities, and provides economic benefit (increased rural household incomes).
• Subproject – JSIF terminology for a commitment of funding in response to an application (Type 1 and Type 2 projects), or to specific terms of reference (for Component 2 projects).
• Supply chain – The supply chain comprises the suppliers of all the goods and services that go into the delivery of tourism products to consumers. It typically includes advance hotel and travel bookings, transportation services, accommodations, and other tourism products and services (e.g., tours, attractions, restaurants).
• Tour operator – Businesses offering organized vacation or holiday packages to tourism consumers. Outbound tour operators service the source markets, while in-bound tour operators service the tourism consumer at the destination.
• Value chain – A value chain is a chain of activities. Products pass through all activities of the chain in order and at each activity the product gains some value. The chain of activities gives the products more added value than the sum of added values of all activities.
4.2 INSTITUTIONAL FRAMEWORK FOR REDI IMPLEMENTATION
Responsibility for the successful implementation of REDI tourism sector interventions spans various levels of government ministries and agencies, rural people, and other stakeholders. The role and function of each of these organizations is detailed in this section.
4.2.1 Jamaica SOcial Investment Fund
The Jamaica Social Investment Fund (JSIF) is the implementing agency on behalf of the Government of Jamaica (GOJ). It will manage and implement the Rural Economic Development Initiative (REDI) Project. In its capacity as project manager, JSIF will establish internally a central Project Management Team (PMT).
The REDI PMT will be responsible for the day-to-day management and monitoring of all project activities. The PMT, within the JSIF organisational framework, will be based in the Technical Services Department (TSD) and will be headed by a Project Manager with four staff: a project assistant, tourism specialist, agricultural specialist, and monitoring and
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evaluation officer. Additional project personnel will be hired on an as-needed basis through consultancy contracts.
The PMT will be responsible for implementing, coordinating, monitoring and reporting activities, essentially ensuring that the subproject cycle operates efficiently to meet project objectives. The PMT will report to and will be directed by the JSIF Management and Board of Directors, which are also a part of the subproject approval process (see Chapters 4 and 5).
4.2.2 The Ministry of Tourism
The Ministry of Tourism (MOT) is the principal partner for JSIF in the implementation of REDI activities. Tourism planning and development in Jamaica is guided by the Sustainable Tourism Master Plan which emphasizes the diversification of Jamaica’s tourism products and markets. These include culture, nature, and heritage tourism, as well as incorporating rural communities into the tourism supply chain.
The MOT’s role in the development process of community-based tourism enterprises (CBTE) is to provide:
• A defined policy on the development and operations of CBTE in Jamaica • Set guidelines and regulations for the operation of CBTE in Jamaica • Define operating standards for CBTE • Provide Incentives that will encourage the development of CBTE • Under their marketing and promotional arm (Jamaica Tourist Board), list all approved and licensed attractions.
The terms of the partnership between MOT and JSIF will be determined and defined in a Memorandum of Understanding (MOU). The MOT will be expected to participate in the effective and efficient implementation of the tourism component of REDI, and to apprise the JSIF of current or proposed plans and activities so as to leverage REDI investments, avoid duplication of efforts, and ensure the best use of the funds.
The MOU will allow JSIF to utilize the technical expertise of the MOT and its statutory authorities (Jamaica Tourist Board, Tourism Product Development Committee, Tourism Enhancement Fund).
Possible areas of REDI collaboration with MOT include:
• Rural tourism policy and strategy development • Licensing requirements and branding for cultural, nature and heritage tourism • Insurance and financing • Agro-tourism linkages.
4.2.3 Tourism Product Development Company
The Tourism Product Development Company (TPDCo) is the central agency mandated by the Government of Jamaica to facilitate the maintenance, development and enhancement of the tourism product. The mission of the TPDCo is to “facilitate the diversification, development and improvement of the tourism product…” TPDCo is designed to support government and quasi-government agencies in the development of the tourism industry, particularly by
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coordinating and facilitating prompt action between public and private sector interests. It is for this reason that the TPDCo will be the main partner on the ground for implementig the rural tourism component of REDI.
The TPDCo has established Resort Boards corresponding to each of the resort areas (Kingston/South Coasts, Port Antonio, Ocho Rios, Montego Bay, and Negril) to assist with the development, improvement and sustainability of the tourism product within the resort area. These boards are legally empowered to function within certain parameters and with TPDCo's authority. Resort Boards comprise national and parish governments, businesses, and community and non-governmental organizations. REDI tourism beneficiaries will be encouraged to attend Resort Board meetings in order to facilitate linkages with other tourism businesses and activities.
TPDCo administers the Jamaica Tourist Board License . In order to obtain a tourism license, the tourism enterprise must meet the applicable standards. Currently, the license is a “life-time” permit to operate the business. The MOT is currently reviewing the license with consideration to making it renewed periodically to ensure that licensed tourism enterprises meet the current standards.
TPDCo provides the following direct services to tourism enterprises and workers in the tourism industry: assisting in the process of obtaining a JTB License, providing skills training programmes (see below), Entrepreneurship Drive, c onsultancy, and its feature tourism customer service training: Team Jamaica.
Training has been identified as an integral component for the success of the Rural Tourism Enterprises. The following courses are offered through TPDCo:
• Bartending Skills • Child Care and Recreation • Cultural / Heritage Tourism • Customer/Guest Relations & Sales Techniques • Disaster Preparedness and Management • Entertainment/ Recreation Management • Environmental Awareness • First Aid and Cardio-Pulmonary Resuscitation • Food, Health and Safety • Foreign Language Programs • Front Office Procedure • Golf Caddie Development - Level 1 • Health Awareness in the Workplace • HIV/AIDS Awareness Programs • Housekeeping Skills • Industrial Relations Practices for the Tourism Sector • Kitchen Sanitation and Safety • Management Strategies to Improve Staff Performance • Management Development Programs • Organizational Development for Efficient Service • Professional Bell Service • Professional Villa Care
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• Security Management • Supervisory Management Skills • Tour Guiding • Tourism and Cultural Awareness • Tourism Resort Security • Tourism Security Management • Training Programs for Travel Halt Personnel • Visitor Relations and Customer Service.
TPDCo also offers free consulting services . Its specialists provide guidance on project development, from conceptualization to implementation, in addition to free consultancy. During the preparation of business plans, TPDCo offers technical expertise in achieving industry standards, quantity surveying, and environmental concerns. TPDCo acts as an information bank with valuable data and references to aid project development, and will also provide guidance on possible sources of funding. At the request of clients , TPDCo will conduct audits of existing operations and make recommendations to improve the quality of the product or service in accordance with industry standards.
TPDCo has developed an interactive network of partners in both the public and private sectors that enhances relationships and reduces bureaucracy in order to speed service delivery. In addition, TPDCo has developed an Attractions Development Guideline to assist people who are planning to develop a tourism attraction.
JSIF will partner with TPDCo and affiliated agencies to help with 1) the promotion of REDI within communities, 2) the assessment of rural tourism subproject requests, 3) technical assistance during implementation, 4) continued monitoring and support during and after a subproject is implemented.
Other possible areas of REDI collaboration with TPDCo include:
• Team Jamaica and other training • Inspection and product quality assessment services to REDI applicants and subprojects • “How to” guidelines for cultural, heritage and nature-based tourism products and services.
4.2.4 Jamaica Tourist Board
The Jamaica Tourist Board (JTB), an agency of the Ministry of Tourism, is charged with marketing the tourism product so that Jamaica remains the premier Caribbean tourism destination. The JTB thus maintains an international network of representatives/ offices in key markets. In Jamaica, it has offices in Kingston, Montego Bay and Port Antonio. The Board of Directors sets policies for the functioning of the JTB and the Director of Tourism is responsible for day-to-day administration. He is supported by two Deputy Directors- Marketing and Sales and their respective teams. JTB’s goal is for Jamaica to become the best tourism and travel destination as measured by the international marketplace.
Visit Jamaica is the JTB website promoting Jamaica’s tourism attractions, products and services. It is organized by geographic location (resort area) and has specific links for heritage and “off-the-beaten path” themes, accommodations, as well as general information on Jamaica’s history and culture. Only licensed tourism enterprises can be listed on the JTP Visit Jamaica website.
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The Tourism Information Publishing Site (TIPS) was established to serve as the main source of information on the marketing and development of Jamaica as the premier Caribbean tourist destination.
The JSIF will partner with the JTB to assist with 1) the marketing and promotion of REDI tourism beneficiaries, 2) branding of cultural, heritage and nature-based rural tourism, and 3) building the knowledge base on rural tourism.
Possible areas of REDI collaboration with JTB include:
• Inclusion of rural tourism enterprises in the Visit Jamaica website • Information dissemination on rural tourism attractions through JTB offices, promotional activities, and participation in international trade fairs • Packaging and branding of rural tourism products in geographic, theme and experience clusters.
4.2.5 Tourism Enhancement Fund
The Tourism Enhancement Fund (TEF) was established under the 2004 Tourism Enhancement Act. This Act provides a legal basis for the Ministry of Tourism to establish a mechanism for collecting a small fee from incoming airline and cruise passengers. The fees are placed in a dedicated fund to be used for the sole purpose of implementing the recommendations emanating from the Master Plan for Sustainable Tourism Development (MPSTD), 2002.
One of the MPSTD’s recommendations is to strengthen the tourism industry’s small and micro enterprise sector by providing an environment that is conducive to micro and small enterprise development, in order to help such enterprises grow and become more competitive, while creating employment and export opportunities. The TEF provides training financing, technical assistance and business development services toward this purpose. It is currently financing the development of comprehensive resort redevelopment plans for resort areas.
The JSIF will partner with the TEF to: 1) link REDI investments with resort redevelopment plans, 2) coordinate financing for shared small-scale infrastructure, and 3) provide cross- referral services for qualifying rural tourism enterprises.
Possible areas of REDI collaboration with TEF include:
• Identification of rural tourism product and services opportunities from comprehensive resort redevelopment plans
• Complementary and co-financing shared tourism infrastructure
• Exchange and vetting of proposals from rural tourism enterprises, organizations, industry associations, and Parish governments.
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4.2.6 Jamaica Business Development Company The Jamaica Business Development Corporation (JBDC) is a leading player in the provision of business support services for Jamaican businesses by:
• Providing business and technical support that range from guiding business start-ups to a wide variety of consultancy advice for established businesses.
• Vetting advisors and consultants experienced in real-life business management.
The JBDC initiative is a cooperative arrangement among government agencies and the private sector, associations, academic and research communities.
Over 2000 businesses have benefited from JBDC’s services over the years and many have returned to profit from JBDC’s expertise.
The JBDC provides, at minimum cost, one-to-one professional consulting for business owners and entrepreneurs. Its assistance includes: advice on operating challenges in existing businesses, preparation of business plans and strategies, guidance on starting new businesses, preparation of loan requests, financial analysis and budget development.
JBDC also operates Things Jamaica®, which serves as storefront for Jamaican made art, handicrafts, foodstuffs, and souvenirs. Things Jamaica operates out of the JBDC main office, Devon House (New Kingston), Kingston Manley International Airport, and Sangster International Airport (Montego Bay).
The JSIF will partner with JBDC to provide advice to REDI tourism subprojects on operating challenges in existing businesses, review of business plans and strategies, guidance in starting new businesses, preparation of loan requests, financial analysis and budget development.
4.2.7 Role of Other Stakeholders
REDI is a multi-sectoral project that requires the involvement of various partners to ensure not only the efficient implementation of the project but also the sustainability of the subprojects over time. As such it is expected that a number of stakeholders will be called upon. Exhibit 1 identifies some of these agencies and their role as it relates to rural tourism.
Exhibit 4-1 REDI Stakeholders
Organization Related Roles and Responsibilities HEART is financed through a compulsory 3% payroll deduction levied on qualified private sector firms, which is supplemented by assistance from international partners. Training is provided both in the workplace (enterprise-based), as well as through HEAR/NTS’ 28 HEART/NTA formal technical vocational and education training (TVET) institutions and over 120 TVET special programs (institution-based). A wide-range of hospitality and culinary training is available.
Jamaica Hotel and Tourist JHTA is the principal tourism industry organization representing the
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Organization Related Roles and Responsibilities Association interests of the private sector and providing services to its hotel and affiliate members. JHTA is the host of most voluntary industry programs in Jamaica, such as environmental certification, professional training certification, tourism employment job bank, etc. JHTA also organizes the annual JAPEX trade exhibition and annual general meeting.
This is an association of attraction owners, operators and tour Association of Jamaica operators. Its Attractions Jamaica website promotes a wide variety Attractions of rural tourism enterprises.
Issues Food Handlers Permit for any individual involved in the Ministry of Health preparation of food and food products (e.g., sauces).
Provides food safety testing and certification for products to be sold Jamaica Bureau of Standards in public markets.
The African Caribbean Institute of Jamaica supports the discovery and validation of traditions once little understood or not generally Institute of Jamaica recognized as having any importance to the socio-cultural psyche of the nation. This includes support for anthropological, historical and ethnological studies. The primary functions of the Jamaica National Heritage Trust are: 1) to promote the preservation of national monuments and anything designated as protected national heritage for the benefit of the Island; 2) to conduct such research as it thinks necessary or desirable for the purposes of performing its functions under the Jamaica National Heritage Act; 3) to carry out such development as Jamaica National Heritage Trust it considers necessary for the preservation of any national monuments or anything designated as protected national heritage; and 4) to record any precious objects or works of art to be preserved and to identify and record any species of botanical or animal life to be protected .
This Agency provides licenses and approvals for specific types of National Environment and buildings and activities in sensitive ecosystems (e.g., beaches, Planning Agency wetlands, rivers, protected areas).
4.3 REDI PROJECT MANAGEMENT AND STAFFING
JSIF will staff the rural tourism component through a combination of dedicated project employees, shared responsibility of project management staff, inputs from existing JSIF management and administrative staff, and outside contracted professionals.
4.3.1 REDI Project Staff
REDI will require one full-time Tourism Sector Specialist . This individual should have a Bachelors Degree and 10 years of relevant experience, or a Masters Degree and 5 years of relevant experience. His/her educational background should be in business, finance, marketing, hospitality or tourism administration, and their relevant experience should include work in tourism enterprise planning, tourism sector marketing and promotion, and tourism and
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hospitality education and training. Preference will be given to candidates who have direct experience in working with business, community and government representatives in successfully managing small and medium sized tourism enterprises.
A Monitoring and Evaluation Specialist will be responsible for both progress monitoring and annual results monitoring. Subproject progress monitoring involves monthly progress report submissions prepared by grantees (including copies of bank account statements if applicable), major milestones monitoring by JSIF (as identified in the Work Plan schedule as modified therein), and financial auditing by JSIF on subproject bank account and use of funds. Subproject progress monitoring is concluded with the close of the subproject, which is expected to be no more than 12 months from the signing of the Grant Agreement.
Subproject impact monitoring is conducted by JSIF as part of the annual results monitoring. Each grantee is visited and the following information is collected:
• Percent increase in turnover (sales) of rural tourism enterprises as compared to the same period the previous year.
• Evidence (records) of commercial operation, e.g., taking reservations or orders, serving customers, paying employees, valid permits and licenses.
• Number of beneficiaries (differentiated by local community or other) involved in the rural tourism enterprise as part of the enterprise’s operations (direct), as part of the supply chain (e.g., input suppliers, wholesalers), or through public access to a building, facility or form of infrastructure (e.g., community center, craft market, public toilet).
• Beneficiary response to survey/interview of improved capabilities as a result of REDI support.
Subproject impact monitoring results willl be compiled, analyzed and presented in a REDI annual report.
4.3.2 Professional Services
JSIF will contract with individual consultants for professional legal, business, marketing, finance and accounting services. JSIF will maintain a database of professional service providers who have registered their interest in working on the REDI Project. In order to register, an individual must submit a resume and at least two references for similar assignments (to be provided at the time of solicitation). Each professional service provider will quote their daily/hourly consulting rate, to be updated annually, for different types of services.
The REDI Tourism Sector Specialist will prepare terms of reference and schedules for short- term consulting assignments. JSIF will process these as purchase orders with an established vendor to minimize the time required to access professional services, which may be very time sensitive.
4.3.3 Rural Enterprises Evaluation Committee
The Rural Enterprises Evaluation Committee (REEC) is an internal, inter-sectoral team of external volunteers from the public, private, tourism, an agricultural sectors, and academia.
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The committee will be chaired by the REDI Project Manager and will comprise a minimum of five, an a maximum of seven, persons.
The REEC will be responsible or reviewing all subprojects that have been prepared under REDI, and will evaluate and recommend subprojects for approval by JSIF’s management and Board of Directors.
Recommended members of the REEC for tourism projects include:
• Ministry of Tourism • Tourism Product Development Committee • Jamaica Hotel and Tourist Association • Association of Jamaica Attractions Ltd. • Institute of Jamaica • Jamaica National Heritage Trust • National Environmental Planning Authority • Tourism Enhancement Fund.
4.4 TYPE 1 PROJECT CYCLE
4.4.1 Pre-Award Process
Exhibit 4-2 presents a flow diagram for the pre-award process for Type 1 subprojects.
Step 1 - Promotion
JSIF will organize a REDI project launch and awareness promotion campaign. The following describes this activity as it relates to the tourism sector. Note that this is a common activity for both Type 1 and Type 2 projects.
Tasks Prepare a 1-page flier on the REDI Rural Tourism program. Provide links to/from prominent websites to the JSIF REDI page. Conduct outreach meetings with key partners and stakeholders (e.g., Ministry of Tourism, TPDCo, Tourism Enhancement Fund, JHTA, AJAL, Institute of Jamaica, Jamaica National Heritage Trust). Provide them with copies of REDI information for redistribution. Organize a “road show” to the main tourism resort areas (i.e., Kingston, South Coast, Port Antonia, Ocho Rios, Montego Bay and Negril). Coordinate with Resort Boards, JHTA resort chapters, and TPDCo. Organize a formal signing of the Memorandum of Understanding between JSIF and the Ministry of Tourism (preferably at the project launch ceremony). Develop and update JSIF’s REDI webpage to include summaries of funded projects. Prepare articles for tourism periodicals and external websites.
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Step 2 - Call for Proposals
JSIF will prepare a call for proposals for tourism enterprises located in rural communities. Interested parties can obtain a copy of the REDI application form from JSIF, or download it from the JSIF website. Copies of the application forms will be distributed to TPDCO, JHTA and its area chapters, JBDC and AJAL.
The announcement will distinguish assistance between the two types of subprojects: Type 1 - small-scale revenue generating tourism activities in rural communities, and Type 2 - provision of critical small-scale infrastructure, marketing and management support that benefits multiple rural tourism enterprises.
Tasks Finalize application form for Type 1 subprojects Print copies of application and leave them with partners for re-distribution Provide an electronic copy and a link to the JSIF website to obtain copies.
Step 3 - Eligibility Screening
JSIF will make an initial determination based on the applicant’s location, proposed use of REDI funds, and level of community support in their application (if not submitted by a community-based organization). The applicant must demonstrate its capacity to implement the proposed subproject, as well as contribute 20% cash or in-kind.
Tasks
• REDI Tourism Specialist will review all proposals and make a determination as to whether the proposal qualifies for REDI funding. The Specialist will prepare a memo, attach it to the application, and forward it to the Project Manager for concurrence.
• For Type 1 applicants that DO QUALIFY , JSIF (accompanied by TPDCo) will organize a visit to the applicant’s place of business to obtain additional information that corresponds to the Evaluation Criteria (see Appendix C): 1) financial records (income, expenses, assets, liabilities, 2) employment records, 3) support from community representatives, 4) property title or lease agreement (if applicable), 5) organization/business registration and licensing, and 6) the nature and amount of cost-share input from the applicant.
• For Type 1 applications, JSIF will complete the Rapid Appraisal report with a recommendation for/against funding. JSIF will send it to TPDCo for concurrence before notifying the applicant of the decision.
• Together with the applicant representative, JSIF and TPDCo will conduct a rapid on-site appraisal of the tourism enterprise and complete a checklist with comments on the potential, current state or condition, and feasibility and investment requirements to become a fully operational and licensed rural tourism enterprise.
• JSIF and TPDCo will provide the applicant with a debriefing on their findings of the rapid on-site appraisal.
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• For those that DO NOT QUALIFY , JSIF will send a letter thanking them for their application and notifying them that their application was not accepted. It will provide a brief explanation as to the area of the application that did not meet the qualification criteria.
Step 4 - Subproject Preparation
This stage involves the preparation of the subproject for review and decision by the Rural Enterprise Evaluation Committee. The REDI Tourism Specialist will work with the applicant to present the application. This Specialist will also provide the REEC with a copy of his/her selection criteria score with any annotated notes.
Tasks
• JSIF will schedule a meeting of the Rural Enterprise Evaluation Committee and notify the pre-qualified applicant to attend an oral presentation.
• The applicant will describe the tourism enterprise or activity. JSIF will present the proposed REDI investment, as well as the results of the JSIF/TPDCo screening assessment. JSIF will also provide the Committee with copies of any endorsement of the applicant.
• The Chairman of the Rural Enterprise Evaluation Committee will thank the applicant for his/presentation, and invite the evaluation committee to provide feedback on the tourism enterprise or activity and/or REDI investment.
• Guided by the evaluation criteria, the Rural Enterprise Evaluation Committee members may also ask questions or seek clarification regarding any aspect of the tourism enterprise or activity, including suggesting some alternatives.
Step 5 - Subproject Approval
Following the oral presentation, JSIF will collect the comments and suggestions from the Rural Enterprise Evaluation Committee. Each evaluation form will have a “recommendation for award” section where the Committee members indicate one of the following: 1) recommended for award, 2) recommended for award with conditions, or 3) not recommended for award.
Tasks:
• The Project Manager will present the results of the REEC review and approval recommendations to the JSIF Board for funding approval
• Tourism Specialist will notifiy the applicant of the final decision.
• Applicants that are recommended for award, and approved by the JSIF Board, will be invited to a grant award/contract signing ceremony.
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Step 6 – Grant Award/Contract Signing
During this step, JSIF will prepare the Grant Agreement. The Grant Agreement includes background on the applicant, a description of the REDI investment, budget (including both REDI and applicant contributions), implementation schedule, and any conditions regarding procurement and reporting.
The Grant Agreement will be signed by an individual who is authorized to sign on behalf of the applicant, and verified by JSIF.
Tasks
• The Tourism Specialist will prepare a Type 1 grant agreement for review by the Project Manager. • The tourism Specialist will send the draft grant agreement to the applicant for review and concurrence • The Project Manager will invite the applicant to the JSIF public award signing ceremony.
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Exhibit 4-2 Pre-Award Process for REDI Tourism Type 1 Subprojects
Applicant REDI JSIF and other Partners
Step 1 REDI Promotion
Applicant Proposal Step 2 Call for Proposals
Step 3 Screening
Notification of Eligibility Ineligibility
Step 4 Project On-Site Subproject Information Appraisal Preparation
Step 5 Subproject Approval
Notification of Award Non-Award Decision
Step 6 Contract Signing
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4.4.2 Post-award Process
Exhibit 4-3 presents a flow diagram for the post-award process for Type 1 subprojects.
Step 7 – Subproject Work Plan
This step involves the preparation of a subproject work plan that will serve as the primary reference for the implementation of the subproject grant agreement.
Tasks
• The Tourism Specialist and grantee will meet and draft a work plan based on the Grant Agreement’s scope of work, schedule and budget.
• The Tourism Specialist will attach a completed checklist of funding “conditions” (e.g., set up a separate bank account). JSIF will initial items that are already satisfied, and insert a corresponding completion date. The applicant must initial each item.
• The checklist will remain with the subproject file/documentation, and be updated after the completion of each of the items until all are completed. JSIF must initial each update to the checklist.
• Some checklist items must be satisfied prior to JSIF fund disbursements. This also includes “criteria for commercialization” that correspond to business operations, registration, licensing, business plan, marketing and promotions program, etc.
Step 8 – Funding Plan
The Tourism Specialist will prepare a subproject Funding Plan. The Funding Plan indicates what financing and procurement mechanisms will be used: 1) grantee procurement, 2) payment to third party(ies), or 3) JSIF procurement
• Grantee procurement requires that the grantee establish a separate bank account and place in it any cash deposits corresponding to the Grant Agreement. JSIF will disburse the funds through three tranches corresponding to the authorized grantee’s purchase/expenditures.
• Payments to Third Party(ies) involves the payment to pre-qualified vendors (e.g., consultants, service providers and suppliers). Procurement specifications, scopes of work, pro forma invoices or vendor cost estimates must accompany all JSIF disbursements. Payments to third parties are credited against the grantee. JSIF, the grantee and vendor must all sign off on final payments for purchases of US $5,000 or more.
• JSIF Procurement follows established procurement procedures or services and works. All JSIF procurement of construction activities must comply with Environmental Impact Assessment requirements.
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Step 9 - Registration
The grantee must be registered as a cooperatives, Benevolent Society or Friendly Society, non-government organization, or other agreed upon form of business/organization. Note that the grantee must be registered before any authorized expenditures, contracting or JSIF disbursements can be made.
Tasks
• The Tourism Specialist will review the current status of the organization
• If not currently registered, applicant must complete the registration documents and file them with the relevant authority
• The Tourism Specialist must verify that the grantee has been registered.
Step 10 – Licensing
Tourism enterprises in Jamaica must have a Tourist Board license. It is expected that this will take some time for most grantees. Therefore, the requirement for Tourist Board licenses must be satisfied before subproject closeout (Step 14).
Tasks
• JSIF and TPDCo will prepare a list of licensing requirements, including a Food Handler’s Permit for food service. The licensing requirements are referenced in the Grant Agreement, and are a condition of funding.
• JSIF and TPDCo may prepare a licensing plan that outlines the criteria and dates by which those criteria will be met.
• The Tourism Specialist monitors the grantee’s progress toward licensing.
Step 11 – Professional Services
The Grant Agreement’s scope of work will typically include some professional services. Professional services include, but are not limited to, legal services, business planning, accounting, marketing and promotion, information, technology and communication (ITC) services, product development, training and human resource development.
Grantees are given a list of the pre-qualified professional service providers from which to select and enter into agreement for support to the grantee. The pre-qualified service provider will prepare a pro-forma invoice or cost estimate, along with the detailed scope of work and/or specifications in response to a request for quotation.
Tasks
• The Tourism Specialist will prepare a scope of work and schedule for subproject professional services
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• The Tourism Specialist will identify 3 or more pre-qualified vendors from the Professional Services Database.
• The Tourism Specialist will invite proposals from the pre-qualified vendors
• The Tourism Specialist will review the responses and select one
• The Tourism Specialist will prepares a purchase order with the selected service provider
• REDI Project Manager will approve the purchase, and sign a purchase order with the pre- qualified service provider laying out the payment schedule
• JSIF reserves the right to fund all, some or none of the costs based on the performance of the pre-qualified service provider and the quality of the outputs.
Step 12 – Procurement of Goods and Services
The Grant Agreement will also likely include the procurement of goods and non-professional (trade) services such as building renovation, electrical wiring, plumbing, signage, printing, trail construction, etc.
Depending on the cost, size and complexity of the procurement, JSIF will use its discretion in deciding whether to authorize: 1) a grantee procurement or 2) JSIF procurement.
Step 13 – Subproject Monitoring
Subproject monitoring will continue throughout the life of the REDI Project. Monitoring is divided into two categories: 1) subproject progress monitoring and 2) subproject impact monitoring.
Subproject progress monitoring involves monthly progress report submissions prepared by the grantee (including copies of bank account statements if applicable), major milestones monitoring by JSIF (as identified in the Work Plan schedule), and financial auditing by JSIF on subproject bank account and use of funds. Subproject progress monitoring is concluded with the close of the subproject, which is expected to be no more than 12 months from the signing of the Grant Agreement.
Subproject impact monitoring is conducted by JSIF as part of the annual results monitoring. Each grantee is visited and the following information is collected:
• % increase in turnover (sales) of the rural tourism enterprise as compared to the same period of the previous year
• Evidence (records) of commercial operation, e.g., taking reservations or orders, serving customers, paying employees, valid permits and licenses
• Number of beneficiaries (differentiated by local community or other) involved in the rural tourism enterprise as part of the enterprise’s operations (direct), as part of the supply chain (e.g., input suppliers, wholesalers), or through public access to a building, facility or form of infrastructure (e.g., community center, craft market, public toilet)
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• Beneficiary response to survey/interview of improved capabilities as a result of REDI support.
Subproject impact monitoring results will be compiled, analyzed and presented in the REDI Annual Report.
Step 14 – Subproject Closeout
The final step in the project cycle is the subproject closeout. The REDI Project Manager, with input from the Tourism Specialist, will review the final Subproject Progress Monitoring report to determine that all of the requirement of the grant agreement are met, and that all work is satisfactorily completed.
The REDI project team will also complete a site assessment to observe and inspect REDI- funded equipment and supplies. The team will also interview the grantee representatives and selected other stakeholders to assess the lessons learned that might apply to future Type 2 subprojects.
A final accounting is required whenever to:
• Determine whether all of the obligated funds in the grant agreement have been spent • Ensure that the funds were used for the authorized purposes • Calculate the “actual” grantee contribution (cash and in-kind) applied to the subproject
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Exhibit 4-3 Post Award Process for REDI Tourism Type 1 Subprojects
Applicant REDI JSIF and other Partners
Step 7 Subproject Work Planning
Funding Plan
Registration Documents Step 8 Filing with Registration Authorities
Licensing Project Step 9 Application Information Licensing
Contracts with Establish Step 10 Pre-Qualified Bank Professional Service Provider Account Services
Step 11 Grantee Procurement of JSIF procurements Goods and Procurement Services
Monthly Step 12 Annual Results Progress Subproject Monitoring Reports Monitoring
Step 13 Subproject Closeout
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4.5 TYPE 2 SUBPROJECT PROCESS
4.5.1 Pre-Award Process
Exhibit 4-4 presents a flow diagram for the pre-award process for Type 2 subprojects.
Step 1 - Promotion
JSIF will organize a REDI project launch and awareness promotion campaign. The following describes this activity as it relates to the tourism sector. Note that this is a common activity for both Type 1 and Type 2 projects.
Tasks Prepare a 1-page flier on the REDI Rural Tourism program Provide links to/from prominent websites to the JSIF REDI page Conduct outreach meetings with key partners and stakeholders (e.g., Ministry of Tourism, TPDCo, Tourism Enhancement Fund, JHTA, AJAL, Institute of Jamaica, Jamaica National Heritage Trust). Provide them with copies of REDI information for redistribution Organize a “road show” to the main tourism resort areas (i.e., Kingston, South Coast, Port Antonia, Ocho Rios, Montego Bay and Negril). Coordinate with Resort Boards, JHTA resort chapters, and TPDCo. Organize a formal signing of the Memorandum of Understanding between JSIF and the Ministry of Tourism (preferably at the project launch ceremony) Develop and update the JSIF REDI webpage to include summaries of funded projects Prepare articles for tourism periodicals and external websites.
Step 2 - Call for Proposals
JSIF will prepare a call for proposals for tourism enterprises located in rural communities. Interested parties can obtain a copy of the REDI application form from JSIF, or download it from the JSIF website. Copies of the application forms will be distributed to TPDCO, JHTA and its area chapters, JBDC and AJAL.
The announcement will distinguish assistance between the two types of subprojects: Type 1 - small-scale revenue generating tourism activities in rural communities, and Type 2 - provision of critical small-scale infrastructure, marketing and management support that benefits multiple rural tourism enterprises.
Tasks Finalize the application form for Type 2 subprojects Print copies of the application and leave them with partners for re-distribution Provide an electronic copy and link it to the JSIF website to obtain copies.
Step 3 - Eligibility Screening
JSIF will make an initial determination based on the applicant’s proposed activity (Category 1 or Category 2), its affiliation with and support from multiple rural tourism enterprises that will benefit from the activity, and the expected improvements in the marketability of rural tourism
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experiences to international and local visitors. The applicant must demonstrate its capacity to implement the proposed subproject, as well as contribute 20% cash or in-kind.
Tasks
• The REDI Tourism Specialist will review all proposals and make a determination on whether the proposal qualifies for REDI funding. This specialist will prepare a memo, attach it to the application, and forward it to the Project Manager for concurrence.
• In making the determination, the REDI Tourism Specialist will contact the references provided in the application to verify that the organization and any constituents are capable of implementing the proposed subproject.
• For those Type 1 applicants that DO QUALIFY , JSIF will move to the next step, Subproject Preparation.
• For those that DO NOT QUALIFY , JSIF will send a letter thanking them for their application and notifying them that their application was not accepted. It will provide a brief explanation on the area of the application that did not meet the qualification criteria.
Step 4 - Subproject Preparation
This stage involves the preparation of the subproject for review and decision by the Rural Enterprise Evaluation Committee. The REDI Tourism Specialist will work with the applicant to present the application. This Specialist will also provide the REEC with a copy of his/her selection criteria score with any annotated notes.
Tasks
• JSIF will schedule a meeting of the Rural Enterprise Evaluation Committee and notify the pre-qualified applicant to attend an oral presentation.
• The applicant will describe the proposed Category 1 or Category 2 activity. JSIF will present the activity as a REDI Type 2 subproject. It will also provide the Rural Enterprise Evaluation Committee with copies of any endorsement of the applicant.
• For Category 2, Type 2 subprojects that require construction or the installation of major equipment, the REDI Tourism Specialist will consult with the Project Manager and the assigned representative of the National Environment and Planning Authority to screen the application relative to Environmental Impact Assessment or other environmental approvals.
• The Chairman of the Rural Enterprise Evaluation Committee will thank the applicant for his/presentation, and invite the Evaluation Committee to provide feedback on the tourism enterprise or activity and/or REDI investment.
• Guided by the evaluation criteria, the Rural Enterprise Evaluation Committee members may also ask questions or seek clarifications regarding any aspect of the tourism enterprise or activity, including suggesting some alternatives.
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Step 5 - Subproject Approval
Following the oral presentation, JSIF will collect the comments and suggestions from the Rural Enterprise Evaluation Committee. Each evaluation form has a “recommendation for award” section, where the Committee members indicate one of the following: 1) Recommended for Award, 2) Recommended for Award with conditions, or 3) Not recommended for Award.
Tasks:
• The Project Manager will present the results of the REEC review and approval recommendations to the JSIF Board for funding approval
• The Tourism Specialist will notify the applicant of the final decision.
• Applicants that are recommended for award and approved by the JSIF Board will be invited to a grant award/contract signing ceremony.
Step 6 – Grant Award/Contract Signing
During this step, JSIF will prepare the Grant Agreement. The Grant Agreement includes background on the applicant, a description of the REDI investment, budget (including both REDI and applicant contributions), implementation schedule, and any conditions regarding procurement and reporting.
The Grant Agreement will be signed by an individual who is authorized to sign on behalf of the applicant, and verified by JSIF.
Tasks
• The Tourism Specialist will prepare a Type 2 grant agreement for review by the Project Manager.
• The Tourism Specialist will send the draft grant agreement to the applicant for review and concurrence
• The Project Manager will invites the applicant to the JSIF public award signing ceremony
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4.5.2 Post Award Process
Exhibit 4-5 presents a flow diagram for the post-award process for Type 2 subprojects.
Step 7 – Subproject Work Plan
This step involves the preparation of the subproject work plan, which will serve as the primary reference for the implementation of the subproject grant agreement.
Tasks
• The Tourism Specialist and the grantee will meet and draft a work plan based on the Grant Agreement scope of work, schedule and budget.
Step 8 - Funding Plan
The Tourism Specialist then prepares a subproject Funding Plan. The Funding Plan indicates what financing and procurement mechanisms will be used: 1) grantee procurement, 2) payment to third party(ies), or 3) JSIF procurement.
• Grantee procurement requires that the grantee establish a separate bank account and place in it any cash deposits corresponding to the Grant Agreement. JSIF will disburse the funds through three tranches corresponding to the authorized grantee’s purchase/expenditures:
• Payments to Third-Party(ies) involves the payment to pre-qualified vendors (e.g., consultants, service providers and suppliers). Procurement specifications, scopes of work, pro forma invoices or vendor cost estimates must accompany all JSIF disbursements. Payments to third parties will be credited against the grantee. JSIF, the grantee and vendor must all sign off on final payments for purchases of US $5,000 or more.
• JSIF Procurement follows established procedures for the procurement of services and works. All JSIF procurement of construction activities must comply with Environmental Impact Assessment requirements.
Step 9 – Environmental Assessment (Category 1 subprojects only)
For Category 1, Type 2 subprojects, the REDI Tourism Specialist will commissions an Environmental Assessment and/or Environmental Impact Assessment (see Chapter 8, “Environmental Management Framework” in the JSIF Operations Manual ).
The types of subprojects that will require an Environmental Assessment include: refurbishment of buildings, clearing of land in non-sensitive areas, repair of existing walkways or trails, and construction of directional signage.
The types of subprojects that will require an Environmental Impact Assessment include the clearing of land and/or construction in a beach area, near rivers or wetlands, or within designated protected areas.
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Tasks
• The REDI Tourism Specialist and Project Manager will visit the subproject site.
• The grantee provides documentation of permission to use land for an intended purpose (e.g., title, lease agreement).
• The REDI Project Manager will commission an Environmental Assessment or Environmental Impact Assessment (as applicable) using standard terms of reference provided by the National Environment and Planning Authority (NEPA).
• The REDI Project Manager will submit the Environmental Assessment or Environmental Impact Assessment to NEPA for review, comment and approval. The grantee must commit to any required environmental impact mitigation measures.
• The Tourism Specialist will verify that the grantee has been registered.
Step 10 – Professional Services
The Grant Agreement scope of work will typically include some professional services. Professional services include, but are not limited to, legal services, business planning, accounting, marketing and promotion, Information, Technology and Communication (ITC) services, product development, training and human resource development,
Grantees will be given a list of the pre-qualified professional service providers from which to select and enter into agreement for support to the grantee. The pre-qualified service provider will prepare a pro-forma invoice or cost estimate, along with the detailed scope of work and/or specifications in response to the request for quotation.
Tasks
• The Tourism Specialist will prepare a scope of work and schedule for subproject professional services
• The Tourism Specialist will identify 3 or more pre-qualified vendors from the Professional Services Database
• The Tourism Specialist will request proposals from the pre-qualified vendors
• The Tourism Specialist will review the responses and select one
• The Tourism Specialist will prepare a purchase order with the selected service provider
• The REDI Project Manager will approve the purchase, and sign a purchase order with the pre-qualified service provider laying out the payment schedule
• JSIF will reserve the right to fund all, some or none of the costs based on the performance of the pre-qualified service provider and the quality of the outputs.
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Step 11 – Procurement of Goods and Services
The Grant Agreement will also likely include the procurement of goods and non-professional (trade) services such as building renovation, electrical wiring, plumbing, signage, printing, trail construction, etc.
Depending on the cost, size and complexity of the procurement, JSIF will use its discretion in deciding whether to authorize: 1) grantee procurement or 2) JSIF procurement.
Step 12 – Subproject Monitoring
Subproject monitoring will continue throughout the life of the REDI Project. Monitoring is divided into two categories: 1) subproject progress monitoring and 2) subproject impact monitoring.
Subproject progress monitoring involves monthly progress report submissions prepared by the grantee (including copies of bank account statements if applicable), major milestones monitoring by JSIF (as identified in the Work Plan schedule), and financial auditing by JSIF on subproject bank account and use of funds. Subproject progress monitoring is concluded with the close of the subproject, which is expected to be no more than 12 months from the signing of the Grant Agreement.
Subproject impact monitoring is conducted by JSIF as part of the annual results monitoring. Each grantee is visited and the following information is collected:
• % increase in turnover (sales) of the rural tourism enterprise as compared to the same period of the previous year
• Evidence (records) of commercial operation, e.g., taking reservations or orders, serving customers, paying employees, valid permits and licenses
• Number of beneficiaries (differentiated by local community or other) involved in the rural tourism enterprise as part of the enterprise’s operations (direct), as part of the supply chain (e.g., input suppliers, wholesalers), or through public access to a building, facility or form of infrastructure (e.g., community center, craft market, public toilet).
• Beneficiary response to survey/interview of improved capabilities as a result of REDI support.
The subproject impact monitoring results will be compiled, analyzed and presented in an REDI Annual Report.
Step 13 – Subproject Closeout
The final step in the project cycle is the subproject closeout. The REDI Project Manager, with input from the Tourism Specialist, will review the final Subproject Progress Monitoring report to determine that all of the requirement of the grant agreement are met, and that all work is satisfactorily completed.
The REDI project team will also complete a site assessment to observe and inspect REDI- funded equipment and supplies. The team will also interview the grantee representatives and
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selected other stakeholders to assess the lessons learned that might apply to future Type 2 subprojects.
A final accounting is required whenever to:
• Determine whether all of the obligated funds in the grant agreement have been spent • Ensure that the funds were used for the authorized purposes • Calculate the “actual” grantee contribution (cash and in-kind) applied to the subproject
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Exhibit 4-5 Post Award Process for REDI Tourism Type 2 Subprojects
Applicant REDI JSIF and other Partners
Step 7 Subproject Work Planning
Step 8 Funding Plan
Category 2 Category 1 Grantee JSIF Procurement Procurement Type 2 Documents Documents Category
Step 9 NEPA Review Environmental Assessment
Target Contracts with Step 10 Market and Pre-Qualified Professional Expected Service Provider Services Results
Grantee Prepared Step 11 JSIF Prepared Specifications Procurement of Specifications Goods and Services
Monthly Step 12 Annual Results Progress Subproject Monitoring Reports Monitoring
Step 13 Subproject Closeout
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4.6 COMPONENT 2 SUBPROJECTS
Component 2 subprojects will go through a different solicitation, application, review and approval process than the Component 1 subprojects. It is expected that REDI support to national government agencies and national-level organizations will be guided by a Memorandum of Understanding between JSIF and the implementing partner.
JSIF and the implementing partner will agree on an overall scope of work, division of responsibilities for implementation, implementation schedule, estimated budget, and type(s) of expertise needed.
On an annual basis, JSIF and the Ministry of Tourism will agree on which Component 2 subprojects REDI will fund. The REDI Project Manager will send the World Bank a summary of the Component 2 subprojects for their concurrence.
JSIF and the implementing partner will reach agreement on the division of responsibilities between the two parties as they relate to preparing the terms of reference, inviting firms or individuals to submit proposals, evaluation of proposals, and award of contract. Where contracting is being done by the implementing partner, JSIF must concur on the selection of contractors prior to award.
4.7 MONITORING AND EVALUATION SYSTEM
Monitoring and evaluation can be divided into two types: progress monitoring and impact monitoring.
4.7.1 Progress Monitoring
All REDI tourism subprojects will have a corresponding monitoring and evaluation system. On a monthly basis, the grantee (or implementing partner for Category 2 subprojects) will submit a progress report containing:
• Progress against implementation schedule, identifying delays and needs for rescheduling of subsequent activities
• Progress toward major milestones and deliverables
• Draw-down on funds, expenses incurred, and payments to subcontractors and individual consultants. Type 1 subproject grantees must also include a copy of their monthly bank statement.
The REDI Tourism Specialist will review the monthly progress reports and evaluate the progress as follows: 1) on schedule, no intervention needed; 2) behind schedule, adjustments to work plan may be needed; or 3) serious challenges to satisfactory subproject completion.
In the case of “serious challenges to satisfactory subproject completion,” the REDI Tourism Specialist will prepare a memorandum to the Project Manager recommending that a more detailed evaluation of the subproject is needed before further disbursements of funds. In this
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case, all on-going work will be suspended (including the procurement of goods and services) by notifying the vendor and issuing a “stop work order.”
4.7.2 Impact Monitoring
On an annual basis, the Tourism Specialist and Monitoring and Evaluation Specialist will survey current and past grantees (Component 1 subprojects only) to determine their individual impact as well as the collective impact of all rural tourism subprojects. Because of the diverse nature of the subprojects, REDI will report on both quantitative indicators (e.g., wage earning employees) as well as qualitative indicators (e.g., visitor feedback on their experience). The performance indicators for REDI rural tourism subprojects will be measured at the community, enterprise, organization, and sector levels. The performance indicators include:
Community level
• Number of persons living in rural communities directly or indirectly participating in rural tourism as a result of REDI support
o Input suppliers
o Laborers
o Related businesses (e.g., food vendors near a nature attraction)
• Number of persons living in rural communities with access to small-scale infrastructure and facilities funded by REDI
o Persons previously without access to similar services
o Persons with improved access to services
Enterprise level
• Net increase in revenues of REDI-supported Rural Tourism Enterprises
o Total annual income as recorded in system of accounts or estimated through calculation of number of customers and average customer spending.
o Comparison with prior year’s total annual income. This is assumed to be zero for new rural tourism enterprises or those that have operated informally with no records or data from which to derive income estimates.
• Number of wage-earning persons employed in REDI-supported Rural Tourism Enterprises
o A list of the names of persons who have received payment for services in support of the Rural Tourism Enterprise (or enterprises for Type 2 subprojects)
o A breakdown of the age and gender of persons on the list.
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• Number of REDI-supported Rural Tourism Enterprises that can demonstrate improvements in their commercial operations (based on checklist)
Sector level
• Number of Rural Tourism Enterprises operating with Tourism Board licenses
o Data to be provided by TPDCo
• Level of support from TPDCo to Rural Tourism Enterprises
o Annual submission by TPDCo describing the services and the names of Rural Tourism Enterprises assisted
• Number of distribution channels selling Rural Tourism Enterprise products and services created or strengthened
o Based on Internet research, tour operator catalogues, and special promotional campaigns targeting Rural Tourism Enterprises
o Each distribution channel or point of sale is counted separately, even if selling the same products and services
• Number of Rural Tourism Enterprises that are members in industry associations and chambers of commerce
o Membership list from Jamaica Hotel and Tourist Association
o Membership list from Association of Jamaica Attractions Ltd.
• Establishment of a national policy and strategy for developing and promoting viable Rural Tourism Enterprises
o Presentation of a green paper
o Presentation of a white paper.
4.8 REDI APPLICATION
Items to include in application form and/or evaluation (emphasis on those related to tourism):
1. Applicant information
a. Name of organization
b. Organization type
i. Cooperative
ii. Friendly Society
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iii. Benevolent Society
iv. Non-governmental organization
v. Industry/business association
vi. Other (including limited liability company)
c. Name/title of authorized representative
d. Name/titles of officers in applicant’s organization
2. Productive activity/income earning enterprise information (Type 1 only)
a. Type of activity
i. Attraction (site-based)
ii. Tour (multi-site based)
iii. Visual arts and crafts
iv. Performing arts
v. Other ______
b. Typology of tourism offering
i. Cultural
ii. Heritage (historic)
iii. Nature
iv. Other ______
c. Description of current offering
d. Financials for current offering
i. Income/sales
ii. Expenses
e. Workforce for current offering
i. Male/female
ii. Full time/part time
f. Business registration (if different from applicant organization’s registration)
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g. Jamaica Tourist Board licensed
h. Supporting studies for current offering (and date completed)
i. Market research
ii. Business plan
iii. Competitor analysis
iv. Other
3. Proposed project information (Type 1 and Type 2 projects)
a. Challenges or obstacles that proposed project is intended to overcome (condition without proposed project)
b. Explanation of how proposed project will overcome stated challenges and obstacles (expected condition with proposed project)
c. Benefits of proposed project
i. To enterprise(s)/productive activities (e.g., increase level of production/income earning potential, add value through ability to increase sale price, reduce cost of production/operating costs, access new customers/markets)
ii. To community(ies) (e.g., employment, purchase of goods and services, shared infrastructure, creation of new related business opportunities)
iii. To the sector (e.g., complements current offerings in the geographic area, responds to visitor interests/demands, consistent with MOT and tourism industry sector development plans)
d. Expected impact of proposed project
i. Change in direct employment (persons hired)
ii. Change in payroll (total amount paid to employees)
iii. Change in procurement of local goods in services (type and amount)
iv. Change in broader community benefit through access to infrastructure and facilities
e. Budget
i. Total project budget
1. labor
2. materials
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3. contracted services (includes studies, construction, information products)
ii. Applicant cost share
1. Cash
2. In-kind
iii. JSIF-REDI financed share
1. Procurement services from third-party vendors
2. Small-scale infrastructure
3. Direct procurement of equipment and supplies
f. Time frame
i. Start date
ii. Completion date
iii. Commissioning date (for small-scale infrastructure only)
g. Required permits and approvals
i. Environmental impact assessment
ii. Land use/title/land lease
iii. Food handling
iv. Applicable TPDCo standards
v. Other ______
h. Applicant references
i. Organization officers
ii. Local community(ies) representatives
iii. Tourism industry partners
iv. Financing partners (current project, past projects)
4. Project feasibility
a. Management capability (training/experience of identified project manager
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b. Financial capability (assets)
c. Technical know-how (technical training/experience of project participants)
4.9 REDI EVALUATION CRITERIA
Items to include in determining the eligibility of a Component 1 application (emphasis on those related to tourism):
1. Applicant information
a. Must be one of the following:
i. Cooperative
i. Friendly Society
ii. Benevolent Society
iii. Non-governmental organization
iv. Industry/business association
b. If a limited liability company, applicant must:
v. Employ __ persons from a rural community(ies)
vi. Purchase from vendors located in rural community(ies)
vii. Have an established revenue or profit sharing arrangement with the local community
viii. Must be registered or in the process of being registered
2. Productive activity/income earning enterprise information (Type 1 only)
a. Status - for established or operating enterprises, must:
i. Be operating for at least one full year
ii. Have financials for current offering (i.e., Income/sales, expenses)
iii. Have records of part- and full-time employees
b. Status - for new enterprises, must:
i. Have completed at least one of the following:
1. Conceptual development plan
2. Business plan
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3. Market research
ii. Have a commitments from the following:
1. Key staff
2. Owners of land where new product or service is offered
3. Support from one or more community-based organizations in the areas where new product or service is offered
c. Business registration (if different from applicant organization’s registration) – Applicant must:
i. List all of the applicable licenses and permits
ii. Document existing licenses and permits
iii. Commit to obtaining all other applicable licenses and permits
3. Proposed project information (Type 1 and Type 2 projects)
a. Applicant must be able to demonstrate the following benefits of proposed project
i. To enterprise(s)/productive activities (e.g., increase level of production/income earning potential, add value through ability to increase sale price, reduce cost of production/operating costs, access new customers/markets)
ii. To community(ies) (e.g., employment, purchase of goods and services, shared infrastructure, creation of new related business opportunities)
iii. To the sector (e.g., complements current offerings in the geographic area, responds to visitor interests/demands, consistent with MOT and tourism industry sector development plans)
b. Applicant must set targets in each of the following impact areas:
i. Change in direct employment (persons hired)
ii. Change in payroll (total amount paid to employees)
iii. Change in procurement of local goods in services (type and amount)
iv. Change in broader community benefit through access to infrastructure and facilities
c. Budget
i. Project budget must have sufficient detail for REDI to be able to determine cost reasonableness for:
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1. labor
2. materials
3. contracted services (includes studies, construction, information products)
ii. Total requested amount from REDI cannot exceed:
1. US $50,000 for Type 1 projects
2. US $100,000 for Type 2 projects
iii. Applicant cost share must represent a minimum of 20% of the total project budget
1. Cash – must represent at least 3% of total project budget
2. In-kind – must represent at least 17% of total project budget
d. Applicant references – must be no objections from the following:
i. Organization officers
ii. Local community(ies) representatives
iii. Tourism industry partners
iv. Financing partners
4.10 REDI SELECTION CRITERIA
The following criteria should be awarded points in the selection decision:
1. Applicant’s status (highest to lowest points)
a. Operating and registered
b. Operating and in the process of registration
c. Operating not registered
d. Not operating
2. Consistency of the proposed project with the applicant organization’s focus (highest to lowest points)
a. Yes
b. Somewhat
c. No
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3. Productive activity/income earning enterprise information (Type 1 only)
a. Distance to the nearest resort area (highest to lowest):
i. Within 10 miles or 1 hour (by private car) from an established visitor market
ii. Within 2 hours (by private car)
iii. Greater than 2 hours (by private car)
b. Enterprise marketability (highest to lowest)
i. Offers a multi-site or multi-activity experience
ii. Offers a single activity that can be included in a visitor circuit (i.e., a stop in multi-stop tour in a given area)
iii. Offers a single activity sold independently
c. Business management – Has completed the following studies: business plan, market research, competitor analysis, independently audited accounts
i. All of the completed
ii. Two more completed
iii. Only one completed
iv. None completed
4. Community benefits
a. Employees from rural community(ies) - both full and part time (highest to lowest)
i. More than 10 persons
ii. 5-10 persons
iii. Less than 5 persons
b. Purchase of goods and services (highest to lowest)
i. Over 50% of all spending on goods and services done with vendors in rural community(ies)
ii. 25-50% of all spending on goods and services done with vendors in rural community(ies)
iii. Less than 25% all spending on goods and services done with vendors in rural community(ies)
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c. Shared infrastructure (highest to lowest)
i. Public has open access to buildings and facilities
ii. Public has limited access to buildings and facilities
iii. Public does not have access to building and facilities
d. Creation of new related business opportunities (highest to lowest)
i. 2 or more identified related business opportunities for community residents
ii. 1 identified related business opportunity for community residents
iii. No identified related business opportunities for community residents
5. Proposed project feasibility
a. Management capability (highest to lowest)
i. Project manager/applicant representative has successfully implemented similar project
ii. Project manager/applicant representative has other relevant experience
iii. Project manager/applicant representative does not have relevant experience
b. Financial capability (highest to lowest)
i. Applicant has assets equal to or in excess of the amount requested and has successfully managed grant or loan funds
ii. Applicant does not have assets equal to or in excess of the amount requested, but has successfully managed grant or loan funds
iii. Applicant has assets equal to or in excess of the amount requested, but has not successfully managed grant or loan funds
iv. Applicant does not have assets equal to or in excess of the amount requested and has not successfully managed grant or loan funds
c. Technical know-how (highest to lowest)
i. Personnel within the applicant organization (management, employees, members) have relevant training and experience to implement proposed project
ii. Applicant has included implementation partners with relevant training and experience to implement the proposed project
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iii. Applicant cannot demonstrate relevant training and experience
6. Environmental Impact (highest to lowest)
a. Proposed project either poses positive or no environmental impact
b. Proposed project poses environmental impact and the mitigation is included in the cost of the proposed project
c. Proposed project poses environmental impact and the mitigation is not included in the cost of the proposed project.
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5. STAKEHOLDER WORKSHOP SUMMARY
5.1 WORKSHOP OBJECTIVES AND OVERVIEW
The main objectives of the workshop were twofold. The first objective was to target the CBTEs that were surveyed (see Chapter 2) to identify and discuss the main challenges they faced in becoming viable enterprises and secondly to begin setting the framework for a national policy on Community Based Tourism Development.
There were seventy (70) participants registered at the workshop representing a wide cross section of the tourism sector including government agencies, private sector enterprises, NGO’s, local Tour Operators and the CBTE that were surveyed. (List of attendees is attached in Appendix 1).
The workshop was presented in three (3) stages. The first stage dealt with the formalities which led into two presentations (a) Preliminary Results of the CBTE Survey and (b) Summary of Challenges facing Rural Tourism in Jamaica. In the second stage the Workshop was divided into four (4) breakout sessions each being led by a facilitator, the breakout sessions were as follows:
• Standards and Product Quality • Marketing, Promotions and Sales Channels/Management and Business Operations • Capital Investment and Financing • Hospitality and Visitor Experience
A plenary session with reports from the facilitators was the third and final stage of the workshop.
In addition to the CBTE that were surveyed, the workshop also targeted community representatives, resource managers and development workers involved in community-based tourism initiatives throughout Jamaica. The workshop also targeted tourism development personnel from governments, non-governmental organisations and industry bodies involved in supporting community-based initiatives. The participants shared responsibilities for the operation of the workshop by helping to facilitate, record, monitor and evaluate the sessions. A list of participants is included at Appendix A.
Participants were invited to outline their motives and expectations for attending the workshop. These were summarised as:
• Gather information; • Exchange experiences; • Gain insights for planning community-based tourism; • Learn; • Hear of practical steps that support community-based tourism, especially with regard to economic sustainability; • Place tourism in natural resource management context; • Hear of planning techniques for participation; • Gain skills that would help develop community-based tourism products; • Develop a network for practitioners;
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• Learn how collaborative management can assist with the development of community based tourism.
The participants’ motives reflected the developing nature of this field. Their desire to interact, gather information, and learn pointed to a need among practitioners to acquire knowledge in an area that is rapidly developing and increasingly relevant. The desire to exchange experiences and network among people working in the area of community-based tourism pointed to a need for readily available expertise that could lend support to practitioners, who are sometimes isolated within their institutions.
The participants were also asked what they thought were the main benefits of Rural Tourism and its overall impact on tourism in general and they agreed that Rural Tourism had the potential to:
• Broaden the distribution of benefits from tourism; • Diversify a destination’s tourism product; • Contribute to broader socio-economic goals (e.g. poverty reduction, employment generation, lower crime rates); • Begin the process of transferring decision making to a community level; • A major contribution to the development of a regional tourism product for example the community’s history and culture • Empower the local communities; • Provide a sense of ownership at a community level • Add value and authenticate the visitor’s experience • Lead to improvements being made to the aesthetics of a site or attraction; • Hopefully will lead to the development and strengthening of institutions especially at a community level; • Strengthen community identity and sense of pride.
5.2 WORKSHOP PROCEEDINGS
5.2.1 Preliminary Results of the CBTE Survey/Financial Support for community based tourism projects
The CBTE Survey was conducted in nine parishes throughout Jamaica and targeted a wide cross section of CBTEs ranging from nature based attractions, historical/cultural attractions, accommodations, handicrafts, festivals and facilities providing a range of products from food service to accommodations. At the time of the workshop, the results of the CBTE Survey were not available.
PA presented the preliminary report on the Financial Support for Community Based Tourism Projects, a report on the Financial Institutions who had either assisted or were in the process of assisting CBTEs. The report in the outset stated that as with most small business developments, Community Based Tourism projects have always been challenged on sourcing adequate capital (both start-up and working) to have a sustainable and viable business . The report continued to point out that many of the CBTEs were small and that they tend to have the same structural characteristics – business is seasonal, and when compared with their larger counterparts productivity, technology and capitalization was low; and that they also lacked creditworthiness, and, as in most instances, had challenges securing funds needed for business.
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It furthermore stated that, tourism enterprises, like most small companies had only limited capital resources. This resulted in a reliance on bank and other financial institutions for their funds. Banks required sufficient collateral or a well-established surety for their debtors to secure a loan. The lack of such assets or appropriate surety therefore made it difficult for many CBTEs to obtain loans from the mainly traditional financial institutions.
The lack of such assets or appropriate surety made it difficult for many CBTEs to obtain loans from the mainly traditional financial institutions. However the report did indicate that there were a number of financial institutions in Jamaica from which CBTEs could access loan financing. The conditions, interest rates etc. however did vary. In concluding the report it was pointed out that the following were the major challenges facing
CBTE however with in depth marketing research and proper planning most of the challenges could be overcome.
• Lack of a meaningful business plan • Lack for planning in structuring their businesses • Lack of training • Lack of Understanding of what the business entails. The individual sometimes just operate on an ad hoc basis, allowing the business to roll along without any direction and distinct structure • Weak marketing strategy – Products are being manufactured without any idea where they will be marketed. The operator just assumes that a market is available • Poor financial record keeping • Inadequate Equity • Inadequate Start-Up Capital • Inadequate or lack of Collateral. Some financial institutions also refuse to take equipment as collateral, claiming they are specialized • High level of delinquency
5.3 SUMMARY OF CHALLENGES FACING RURAL TOURISM IN JAMAICA
This presentation was based partially on information drawn from a previous survey done by PA Consulting of visitors impressions of the Jamaican South Coast in addition to focusing on the relationship of rural tourism with the more traditional tourism segments, for example the inclusion of cultural, heritage and nature-based tourism within the framework of rural tourism (see Figure: 1 below), and, the types of challenges faced by rural tourism enterprises. The presentation spoke of the low demand for the rural tourism product and made the point that the Jamaican brand was still seen as a sun, sea and sand destination and had still not represented the inland rural tourism product. As a result the recommendation called for the need to link rural tourism with international visitor preference for activities and excursions.
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Exhibit 5-1 Diagram of Tourism Typologies
Relationship of rural tourism with more traditional tourism segments
Cultural tourism
Nature-based Heritage tourism tourism Rural tourism
© PA Knowledge Limited 2008. Presentation title here edit using View/Header and Footer/Slide Page 2
The presentation also highlighted the preferences of foreign visitors with water based activities being the most preferable.
Exhibit 5-2 Visitor Survey of Preferences Among Different Types of Activities
Figure 14 Q12 What Types of Activities and Excursions do you Prefer on Such Trips?
Other 50% Fishing 10% Walking or hiking 30% Sea turtle watch 13% Visits to towns and communities 27% Activities Visiting historical sites 42% Caving 12% Water-based 77%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Percentage
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It then focused on the actual inland excursions taken by international visitors with nature attractions being the most sought after in this instant.
Exhibit 5-3 Type and Frequency of Inland Excursions Taken by Visitors
Figure 25 Q 23 Types of Inland Excursions Taken by Visitors
Other 31%
Rafting 12% Hiking 9% Plantation visits 13%
Swamp tours 6%
Bird/wildlife watching 7%
Community trip 13% Quad rides 3%
Nature attractions 33% Historical sites 18% Climbing 10%
Photography 18%
Biking 4%
Horseback riding 16%
0% 5% 10% 15% 20% 25% 30% 35%
In looking at the overall challenges facing the CBTE located in rural areas it was noted that remote locations and the difficulty to coastal road access coupled with the fact that there was very poor signage and terrible road conditions, made it difficult for visitors to visit more rural tourism enterprises.
• The presentation concluded by outlining a number of factors hindering the viability of the CBTE, namely:
• Collective management structures (e.g., citizens group) are often too cumbersome to and complex to work effectively in business decision making.
• Community-based organizations and private entrepreneurs that own and operate rural tourism enterprises rarely have a business plan, accounting system, and other good management practices.
• Management and staff not trained in hospitality and customer service
• Tourism standards are difficult to comply with, resulting in unlicensed and un-marketed products
• Informal nature of rural tourism enterprises makes it difficult to qualify for commercial financing resulting in reliance on grants
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• Insufficient budget and lack of sophistication in marketing rural tourism products
• Rural tourism not sold through traditional tourism sales and distribution channels who may or may not facilitate sales of rural tourism
• Value of rural tourism experiences captured through tour operators and other intermediaries
• Limited direct sale of rural tourism excursions
5.4 BREAKOUT SESSIONS
After the main presentations the audience broke up into four (4) breakout groups each focusing on an area that was identified as key areas impacting on the development of the CBTE.
5.4.1 Marketing, Promotions and Sales Challenges/Management and Business Operations
Facilitator: Dr. Carolyn Hayle
Participants:
• Hugh Dixon, STEA, Eco-Tourism, B&B, Attractions • Jim Phillips, World Bank • Carolyn Hayle, Consultant, University of the West Indies, training standards, policy self development • Norma Nugent, Hardanga Heritage Trust • Sania Patricks, St. Helena’s Women’s Group • Barrett, Citizens Association St. Andrew • Oral, Morant Bay, COPE, Micro Finance Enterprise • Tina, Ministry of Tourism, Policy • Ingrid Parchment, C-Cam • Denyse Perkins, Walkerswood, Tour, Community Development • Horace, Mocho, Bauxite, opportunities for communities • Judith, the Nature Conservatory • Bobby Stephens, Jamaica Conservation and Development Trust • Richards, PIOJ, Rural Development • R. Shippy, Hanover CDC • Ivan, Portland, Moore Town Maroon Community, Access • J, Taylor, St. Thomas- Youth Club, Development Ideas • Dorman, Natures Handmade Paper Product, Portland, need help marketing
Main Findings:
This session focused on two key areas Marketing, Promotions and Sales and, Management and Business Operations as it was felt that both these topics were interrelated as their both relied very heavily on proper management capabilities and product knowledge. There was a wide cross section of participants who themselves were involved in management and
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marketing and as a result this group was able to focus on very key market and management issues relating to the viability of the CBTE.
One of the most important findings coming of this group was the fact that marketing was the key element in a successful CBTE and the success of the enterprise was not primarily based on the “feel-good” temperament of the entrepreneur, but was based on whether or not a visitor was in fact interested in experiencing that specific product. One of the main reasons for the failure of community-based tourism businesses was their inability to attract sufficient numbers of visitors . The group therefore concluded that prior to establishing a CBTE, the owner/operator needed to conduct some detailed market research which would indicate whether or not visitors were interested in the product, was the facility easily accessible and in close proximity to major tourism centres and were the key local tour operators willing and able to sell/promote the product.
In relation to management capabilities, the group also sited the fact that many of the CBTE lacked proper management skills and the lack of training in basic management skills, hospitality and customer service further hindered the success of the enterprise. Coupled with the fact that there was very little if any, marketing research done prior to opening, the enterprises were on a fast track for failure. It was pointed out that leadership was an important element in the successful management of the process of community-based tourism development and it was important, therefore, to identify people who could guide the process both within the community and within the agencies supporting the development of these CBTE. It was felt that the community should be allowed to identify its own leader(s) however taking into consideration, the qualifications required for taking a successful venture forward. It was noted that many projects had failed because the community did not choose its community leaders and therefore one of the main objectives was to build broad based equity and trust within the community.
The group also sited that CBTE required an understanding of the legal rights and responsibilities of the community over land, resources and development. These issues were particularly relevant when it involved matters such as land tenure and land use. These sorts of matters, the group sited, demand discussion in the context of the community‘s ability to access land, influence decisions affecting their welfare and earn income from tourism. The main challenges sited were as follows:
• Getting hotels operators and Government agencies to understand the community product. • Remote locations, difficulty of access • The lack of Government (agencies and ministries) capacity building to enhance understanding. • Special needs for community information to reach market -JTB • Government agencies appointed don’t always have capacity • The lack of complete buy-in from the communities themselves • Lack of community awareness (need to develop mind-set of people-training, show benefits, identity) • Solid waste and overall environmental awareness
Recommendations coming out of this group included the following:
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• The urgent need for the Jamaica Tourist Board to become more involved in the development, marketing and promoting of the CBTE and the introduction of E- Commerce for CBTE.
• The need to develop training opportunities of the owner/operators of the CBTE especially in the areas of management, accounting, marketing and customer service.
5.4.2 Capital Investment and Financing
Facilitator: Mr. William Meade
Participants:
The group included representatives of key stakeholders in financing rural tourism enterprises: tour operators (Rastafarian Village, Walkers Wood Tours), government (TPDCo, Tourism Enhancement Fund, Jamaica Business Development Corporation), non-governmental organizations (The Nature Conservancy), community-based organizations, and entrepreneurs). This group did not provide a list of the individual participants.
Main Findings:
The issue is not financing, it’s “financibility”. There seems to be an adequate amount of financing through various commercial, government, and donor agencies (e.g., EU, USAID). The bigger challenge is how to convince a funding source of the attractiveness of the project or enterprise. The proprietor(s) need to have a clear vision of what defines “success” and a well-understood plan of how to achieve it. Many communities feel they have an attractive tourism asset, but don’t fully appreciate whether it can be run as a business.
Rural tourism enterprise must operate like a business to attract commercial financing . Some rural tourism enterprises are run by community-based organizations, registered as Friendly Societies. Traditional grant funding targeting vulnerable vs. productive elements of communities. There needs to be more emphasis on the sustainability of the CBO which may mean bringing in private sector partners/operators for the business aspects with endowments, concession agreements, and/or development funds that provide income to the community.
New type of financing needed for rural tourism enterprises Financing for these organizations usually comes in the form of grants. Availability of grants has resulted in investments without consideration of commercial viability or return. Grant funding limited to capital investments, not operating capital. Grant funding tends to follow grant funding, with limited opportunity for new entrants. No certainty that if an applicant meets minimum requirements they will receive funds. Commercial lenders have high interest rates and require supporting information on the business (e.g., vision, business plan, marketing plan, development plan, etc.) and expressed in “business terminology”. At the other end of the spectrum is venture capital. There is no mechanism for venture capital investors who are looking for a compelling opportunity and reasonable returns on their investment.
Collateral and land title requirements make it difficult to access small business financing . Personal items such as home, vehicle are required as collateral for small business loans. Clear title to land represents a challenge for entrepreneurs who build and/or operate their business in rural communities.
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Social capital provided by members of the community needs to be valued in financing transactions . Skills provided by community members, e.g., construction, land clearing, security, transportation, etc. represent real cost-sharing that needs to be accounted for as equity in financing. Intellectual capital around cultural heritage and traditions must similarly be valued and protected by Intellectual Property Rights.
Recommendations coming out of this group were as follows:
• Provide business development services (BDS) such as business plans, marketing plans, etc. with specific expertise in tourism. The BDS services need to have a feedback mechanism with policy makers to indicate what is working/not working in terms of licensing. It (they) can serve as incubator for tourism enterprises.
• Explore different types of incorporation as “special purpose” organizations, e.g., Limited Liability Company, Company Limited by Shares with established agreements to community related to ownership, lease, operations, employment, endowments, profit-sharing, etc.
• Establish revolving fund with favorable repayment terms as alternative to grant facilities. A line of credit will allow businesses to grow over time with their market and based on success of current operations.
• Set up a standard land lease agreement for rural tourism enterprises operating on government land.
• Establish a scale to value in-kind contributions including intellectual capital.
5.4.3 Standards and Product Quality
Facilitator: Sherrill Lewis, TPDCo
Participants:
• Charles Town Young Farmers Association • Caribbean Herbal Business Association (Herb Festival 28-29 th March) • World Bank • TPDCo – Spruce up Jamaica • Manchester PDC, Alligator Coast Byway Tour, Mile Gully Heritage Route • Dolphin Head Trust, Trails, Museum Tour, Bamboo Furniture • Forestry Department, Flagstaff, Dolphin Head Hiking Trails, Camping Sites, Caving, • Gourieh Recreational Site • Morant Bay CDC, Health Care, Sanitation, Juice Company • Development Options Limited, Financial Institution • Jamaica Conservation & Development Trust, Hollywell, Blue mountain Peak Trail, Rio Grande Valley • Bowden Pen Farmers Association, Eco Tourism and Land Management • Ambassabeth Cabins, Cunna Cunna Pass • Accompong Maroons
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• STEC Foundation • Natures Handmade Paper Product Group
This group was made up of CBTE owners/operators, Government Agencies, and NGO’s.
They sited that their main purpose for attending the workshop was to network among other participants in order to seek funding, marketing opportunities and possible partnerships. In terms of funding they were seeking sources mainly for working capital however needed assistance in writing project proposals.
Main findings:
This group defined the main elements of a successful CBTE was understanding the market – who was being targeted and is the product offering meeting the requirements/desire of the consumer. In addition they identified the need for detailed feasibility studies to be completed prior to establishing an operation.
The group also identified product and project management key elements in the project’s success but also agreed that there was a lack of training opportunities for many of the entrepreneurs. It was also mentioned that in providing such services one had to take into consideration the educational level of some of the operators.
In terms of product development the group agreed unanimously that getting the relevant licenses and permits from the various agencies, including the required TPDCo license was a challenge and they felt that there was a need to relax some of the requirements. It was also felt that the relevant authorities should now look at the relevance of all the permits required and set a minimum standard for operating tourism projects.
The group sited the main challenges (with some commonality to the other groups) as follows:
• Access to sites for example bad road conditions • Signage • Information on how to access Government Owned Lands • Lack of capacity building opportunities for human resource development, improving level of education among stakeholders • The difficulty in becoming licensed with the Jamaica Tourist Board & obtaining permits • Funding for project development
They made the following recommendations:
• It was suggested that the Tourism agencies could negotiate with the National Works Agency to repair roads and have a proper maintenance schedule of roads leading to the project areas. • Have input from agencies such as the TPDCo, Ministry of Tourism to lobby for repairs of roads in these areas where community projects are located. • Projects should becoming more creative in mode of transportation particularly in areas where the roads pose a great challenge for example approach the sites via jitney tours, donkey carts, mules
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• There was a definite need for the increase in and Improvement in directional signs and the distances to the site noted • Look at the possibility of an incentive programme to involve the private sector in erecting signs (e.g. Lasco). • Provide information to easily access to and the availability of Government lands that may have potential for project development. • Agencies to work more closely in collaborative efforts for projects. • Develop brochure/information packages with guidelines for community tourism projects • Need for the provision of lower cost loans • Less stringent requirements to access loans. • Assistance to fill out forms as many of them too technical and wordy
5.4.4 Hospitality and Visitor Experience
Facilitator: Mrs. Althea Heron, Ministry of Tourism
Attendees: List was not submitted
This group was also made up of CBTE owners/operators, Government Agencies, and NGO’s.
They sited that their main purpose for attending the workshop was to understand more about setting up a Community Tourism Enterprise, what funding opportunities were available and to network among other participants and learn from their experiences. In terms of funding, they were seeking sources mainly for working capital. They also wanted to know about the TPDCo Standards requirements and the process to become a licensed CBTE.
Main Findings:
The group sited their main challenges as getting the Government to fully understand the community product and there was an urgent need for information on CBTE to reach the JTB and to have them promote that product. They also felt that they were not paid much attention by the JTB who needed to visit the enterprises and at least learn what is out there. They felt that the JTB focused too much on the traditional type attractions that were already established.
From the community standpoint they felt that there was not enough buy-in from the communities themselves and that the attitudes and mind-set of many of the residents in the communities had to change in order for the enterprises to be successful.
Major issues to be addressed included the following:
• Funding • Support • Networking • Conservation • Product Development • Marketing & Development • Training • Promotion of Economic Projects
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• Dialogue to facilitate community and cultural tourism • Strategizing for Rural Tourism – Specific values of concerns • Marketing & Financing • Knowledge/Learning • Entrepreneurial skills • Enhancement of Visitor experiences • Synergizing amongst stakeholders • Examination of community impacts • Sustainability
Their recommendations were:
• A need for closer collaboration with the JTB and that CBTE should develop a partnership programme with the JTB. • Developing a legal framework for ownership of the projects. • More training and educational opportunities needed for the ownwr/operators • Communities have to sensitized
5.5 WORKSHOP SUMMARY OF FINDINGS AND RECOMMENDATIONS
The final session of the workshop featured presentations from the various facilitators and a summary of each session highlighting the main challenges facing the CBTE and those persons wishing to develop CBTE, recommendations that they felt would assist the process of development and the need for a greater involvement between government agencies, private sector and NGO’s in the development and promotion of Rural Tourism.
The overall consensus of the participants was that the development and the viability of Rural/Community Tourism had five (5) major challenges and until those matters were addressed Rural Tourism would never become a major element within the Jamaican tourism sector. The major challenges sited were:
• Marketing and Marketability • Financing, • Management capabilities, • Training, • Accessibility to the sites by patrons.
In addition to the specific outcomes of the breakout sessions the following were some basic observations/recommendations made by the participants as it related to the overall development and viability of CBTE. They were as follows:
1. Bureaucracy and red tape – The process of setting up a business is too challenging for the small enterprise
2. Lack of supportive government policy toward rural tourism – there is the need to be informed by what is or is not working. Current policy supports "products", whereas rural tour operators are providing an "experience".
3. Infrastructure constraints limit access to remote rural enterprises
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4. There is a need for a change in the mindset to accompany the transition from entrepreneur to structured enterprise
5. Redefine "community" benefits without geographic boundary - recognition of the benefits of supporting rural enterprises in the supply chain, not necessarily from a single community
6. Rural tourism enterprises need to be formally represented in business/trade associations
7. Provide a forum for the exchange of successful rural tourism enterprises
8. Underlying structural problem - hotels located on the beach. All inclusive provide limited opportunity to promote rural Jamaican products/tours.
9. Markets need to be identified, researched and accessed with a thorough understanding and knowledge of the structure of the industry; the existing regulatory framework; potential products/services/options and small business development/project management capabilities.
10. Funding at an appropriate level especially for start-up costs, can help community-based entrepreneurs
11. Policies and a policy environment that enables community-based tourism.
12. Community vision and leadership are critical in mobilising local efforts in support of community-based tourism.
13. Institutions (e.g. environmental and cultural) at a community and national level are essential facilitating mechanisms.
14. Quality products need to be developed (e.g. through the use of minimum standards) capable of attracting the desired market segment.
15. Natural resource management skills and methods may be needed where development impacts on the environment.
16. Infrastructure can help to create access and improve the quality of a community-based tourism product.
5.6 WORKSHOP PARTICIPANTS
1. Renard Raymond, Mavis Bank Information and Craft Centre 2. Frank Lumsden, Charles Town Maroon Community 3. Norician Anderson, Development Options Limited 4. Shauna Brandon, Inter American Institute for Cooperation on Agriculture 5. Karleen Williams, Jamaica National Heritage Trust 6. Susan Otuokon, Jamaica Conservation and Development Trust 7. Althea Heron, Ministry of Tourism 8. Jennette Lynch, Seaford Town 9. Bill Meade, PA Consulting Group
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10. Sheryll Lewis, Tourism Product Development Company 11. Otmar Melhado, Tourism Product Development Company 12. Marlene Stephenson-Dalley, Tourism Product Development Company 13. Denyse Perkins, Walkerswood 14. Hugh Dixon, Southern Trelawny environmental Foundation 15. Ludian Hill, 16. Dianne Robertson, Caribbean Herbal Business 17. Oral Pusey, COPE Foundation 18. Norma Neugent, Jamaica Hardanga Heritage Trust Womens Group 19. Karyll Atchison, USAID PARE Project 20. Stephanie Hutchinson Ffrench, Jamaica Social Investment Fund 21. Robert Kerr, Inter American Institute for Cooperation in Agriculture 22. Terry Williams, The Nature Conservancy 23. Robert Stephens, Pragma Investment 24. Michael Barrett, Forrestry Department 25. Wallace Sterling, Moore Town Maroons 26. Osmond Smith, Moore Town Maroons 27. Ivan Denhs, Moore Town Maroons 28. Melesia Brown, Southern Trelawny Environmental Agency 29. Gladston Whyte, Half Moon Bay Fisherman’s Cooperative 30. Angella Edwards, Manchester Parish Development Committee 31. Horace Fisher, Mocho Mystic 32. Sandy Chung, Tourism Product Development Company 33. Cynthia Shippy, AXE & ADZE Citizens Association 34. Rupert Shippy, AXE & ADZE Citizens Association 35. Laverne Bartley, /Bloxburough Hiking Trail 36. Charles Brown, Dophin Head 37. Carolyn Hayle, University of the West Indies 38. Ingrid Parchment, Caribbean Coastal Area Management 39. Chiribo Haye, Natures Handmade Paper Product 40. Stephen McDonald, Bunkers Hill 41. Arlene McKenzie, Rastafari Indegenious Village 42. Maria Reid, St. Thomas Emancipation & Cultural Foundation 43. Michelle Brown, Tourism Enhancement Fund 44. Tina Williams, Ministry of Tourism 45. Racquel Jones, Jamaica Business Development Centre 46. Andrea Bennett, National Environment and Planning Agency 47. Robert Cawley, Accompong Maroon Community 48. Lydian Hall, Charles Town Maroon Farmers 49. Judith Blake, TNC 50. Ann Sutton, Caribbean Coastal Area Management 51. Gloria Dorman, Natures Handmade Paper Product 52. Eddie Wray, Rastafarian Indegenious Village 53. Clive Larmond, Morant Bay CDC 54. Deep Ford, UN Food and Agriculture 55. Sania Patrick, St. Helena’s Women’s Group 56. Steve Huggins, Accompang Maroon Community 57. Allison Richards, Planning Institute of Jamaica 58. Linette Wilks, Bowden Pen Farmers Association 59. Ellen Hamilton, World Bank 60. Karen Rowe, Jamaica Social Investment Fund
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61. Latoya Halstead, Jamaica Social Investment Fund 62. George Blake, Jamaica Social Investment Fund 63. Paul Thompson, Jamaica Social Investment Fund 64. Junior Brown, Jamaica Social Investment Fund 65. Hugh Cresser, PA Consulting Group 66. Jim Phillips, World Bank 67. Jessica Wurgrang, World Bank 68. Pittar Larreamendy, World Bank 69. Earl Patrick, Tourism Product Development Company 70. Beverley Smith, St. Thomas Emancipation & Cultural Foundation
5.7 WORKSHOP PHOTOS
Participants attending the JSIF National Community Development Project 2 Workshop (Tourism)
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From L-R: Bill Meade, PA Consulting Group; Stephannie Hutchinson-Ffrench, JSIF; XXXXX World Bank and
From L-R: Stephannie Hutchinson-Ffrench, JSIF; Sheryl Lewis, TPDCo; and Tina Williams, Ministry of Tourism in discussion
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Group in session being led by Dr. Carolyn Hayle of the University of the West Indies (Fourth from L)
Products from participants on display
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APPENDIX A: TPDCO LICENSING REQUIREMENTS
Requirements and Documentation for the JTB License for a Tourist Attraction
• Completed application form with required documentation submitted to the Manager, License Processing Department, TPDCO • Copy of public liability insurance • Copy of the tax registration number (TRN) • List of directors • Certificate of incorporation • Registration of business name (where applicable) • Food handler’s permit (where applicable) • Food establishment certificate (where applicable ) • List and description of events/activities offered at the attraction and printed brochure and rates • Description of property • Copy of the title/proof of ownership • Approval from the local planning authority • Written approval from NEPA • Certified lease or rental agreement (if applicable) • Surveyor’s ID of property • Management Plan on site re: maintenance, preservation, safety, disaster preparedness, and training of staff • Fire certification /Letter of approval • TPDCo Tour Guide Certification • TPDCo recommendation • Proper security arrangements (Registered Security) • Security approval from Police Tourism Liaison Section • Communication device(s) • Fitness certificates for motorized transportation used for touring property (where applicable) • List of employees (stating job titles).
If water-based activities are included, the following documents must be submitted:
• Maritime Authority license (where applicable) • Fisheries license (vessel(s) and employees where applicable) • Beach license (where applicable) • River rafting permit (Gazetted River) • Detailed list of equipment (inclusive of detailed specifications) • Work Permit (where applicable ) • Document for personnel involved in watersport activities (certificates/licenses) • First Aid Certificate • CPR Certificate • Lifeguard License (where applicable) • Swift Water Rescue License (where applicable) • Diving Certificate (where applicable) • Coxswain License (where applicable)
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Also, all government statutory requirements must be met and adhered to.
Requirements and Documentation for the JTB License for a Tourist Attraction: Water Based
Completed application form submitted to Manager, License Processing Department, TPDCO Certificate of Incorporation List of directors Tax registration Number (TRN) Registration of Business Name (where applicable) Public Liability Insurance (schedule from insurance company) Food Handler’s Permit (where applicable) Food Establishment Certificate (where applicable) Fire Certificate Security approval from Police Tourism Liaison Section List of activities offered at this attraction Printed brochure on rates, health, safety & environmental rules and regulations List of employees (with job titles) Certification of tour guides Work permit (where applicable) CPR, first aid for all employees (life saving skills) Coxswain license (where applicable) Diving Certificate (where applicable) Fisheries License (vessel(s) & employees, where applicable) Maritime Authority License for Vessels (where applicable) Swift Water Certification for all river guides Approval from local Planning Authority Certified lease or rental agreement (where applicable) Surveyors’ ID of property Fitness certificates for motorized transportation used four touring property (where applicable) Permission from River Rafting Authority to operate on a river Written permit from NEPA TPDCo. Recommendation Management plans regarding maintenance, disaster preparedness and safety measures in place First aid kit Lifesaving device – jacket per passenger, life ring, spinal board Schedule of river usage so as not to be caught with sudden changes in depth of river Safety precautions where applicable/waiver forms Safe environmental practices, preservation of river bank and surrounding areas Whistle per guide (indicated in inspection report) Bathroom facilities at either beginning or end of trip (indicated in inspection report)
February 9, 2009
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THE TOURIST BOARD ACT (1985)
APPLICATION FOR NATURE ATTRACTION LICENCE
To : THE JAMAICA TOURIST BOARD
1.……………………………………………………………………………………………………
The Owner/Operator/Manager of the Attraction/Campsite of the ……………………………...….
………………………………………………………………...…………(hereinafter referred to as
the Attraction/Campsite) which is located at ……………………….………………………….…..
………………………………..…………Mailing Address ……………………………………….
…………………………………………Tel. # ……………………..Fax # ….…………………...
Email Address………………………………………………………………………………………
In the Parish of …………………………………………………..….…...……being the keeper of
the Attraction/Campsite, hereby apply for the grant of a licence to keep the Attraction/Campsite in accordance with the provisions of Section 23 of the Tourist Board Act. I declare that – (indicate quantity where applicable):-
(a) the Campsite has ______rooms/cabins ______tent space ______male/female showers ______male/female sanitary conveniences
(b) the Attraction/Campsite is owned by…………………………………………..…………...
……………………….………………..………a Company incorporated under the laws of (strike out if owner is a private individual) ……………………………………………. on the……………………………………….. Date (c) the …..……………………………………………..……………….……………has been (Name of Attraction/Campsite)
operating since …………………………………………………………..…………………………
(d) the Attraction/Campsite is situated on ………………………………………acres of land
(e) the Attraction/Campsite offers the following activities……………………………………
………………………………………………………………………………………………
(f) the attached list shows the names and addresses of all the Directors of the operating company (if applicable)
(g) I am properly authorised to state the foregoing.
…………………………………… ………………………..……….. SIGNATURE OF APPLICANT DATE
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Documents to be submitted with the license
1. Copy of Public Liability Insurance 2. Food Handler’s Permit (where applicable) 3. Food Establishment certificate (where applicable) 4. Fire Certificate 5. Fitness Certificate for motorized transportation used for touring of property (where applicable) 6. Printed brochures on rates, health, safety and environmental rules and regulations 7. Copy of TPDCo certification of Tour Guides 8. Certified lease or rental arrangement (if applicable) 9. Surveyors ID 10. Copy of title / proof of ownership 11. List of directors 12. Copy of tax registration number (TRN) 13. Certificate of Incorporation 14. Registration of business name (where applicable) 15. Brief description of property. 16. Approval from local planning authority 17. NEPA Permit 18. Beach License (where applicable) 19. Management plan on site re maintenance, preservation and training of staff. 20. List of employees (stating job titles) 21. Proper security arrangements (certified personnel) 22. Security Approval from Police Tourism Liaison Section.
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THE TOURIST BOARD ACT (1985)
APPLICATION FOR WATERBASED ATTRACTION
To : THE JAMAICA TOURIST BOARD
1.…………………………………………………………………………………………………………………….………
The Owner/Operator/Manager of the Attraction …………………………………….………………………….……...….
………………………………………………………………………..… (hereinafter referred to as
the Attraction) which is located at …………………………………………………………….……………………….…..
………………………………..…………Mailing Address …………………………………….………………………….
………………………………………………Tel. # ……………..……………….…..Fax # .…………………..………...
Email Address: …………………………………………………………………………………………………..…………
In the Parish of ……………………………………………………….…...……being the keeper of
the Attraction, hereby apply for the grant of a licence to keep the Attraction in accordance with the provisions of Section 23 of the Tourist Board Act. I declare that – (indicate quantity where applicable) :-
(a) the Attraction is owned by…………………………………………………………………………………….....
………………………………………..………a Company incorporated under the laws of (strike out if owner is a private individual) ……………………………………………. on the……………….………………………………………….….. Date (c) the ……………………………………..…………………………….……………has been (Name of Attraction) operating since ……………………………………………………………………………
(d) the Attraction is situated on …………………………………………………………………….…...……acres of land
(e) the Attraction offers the following activities…………………………………………………………………….
……………………………………………………………………………………………………………………
(f) the attached list shows the names and addresses of all the Directors of the operating company (if applicable)
(g) I am properly authorised to state the foregoing.
……………………….. ……………………… .……………………... SIGNATURE OF APPLICANT DATE
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Documents to be submitted with application
1. Copy of Tax Registration Number (TRN) 2. Copy of Public Liability Insurance 3. List of Directors 4. Certificate of Incorporation 5. Registration of Business Name (where applicable) 6. Food Handler’s Permit (where applicable) 7. Food Establishment Certificate (where applicable) 8. Fire Certificate 9. Brief description of property 10. Approval from local planning authority 11. Surveyors ID 12. Certified Lease or Rental Agreement (where Applicable) 13. Written approval from NEPA 14. Permission from River Rafting Authority to Operate on River (where applicable) 15. Printed brochures on rates, health, safety and environmental rules and regulations 16. Management plan on site re maintenance, preservation and training of staff 17. Copy of Certification of Tour Guides 18. Fitness Certificate for motorized transportation used for the touring of property (where applicable) 19. List of employees 20. Proper Security Arrangements (Certified Personnel) 21. Security Approval From Police Tourism Liaison Section
If watersports activities are included, the following documents must be submitted:
• Maritime Authority License • Fisheries License (vessel(s) and employees) • Beach License (where applicable) • Work Permit (where applicable) • Document for Personnel involved in watersports activities (certificates/licenses) - First Aid and CPR Certificate - Diving Certificate - Lifeguard License - Coxswain License - Swift Water Certification for all river guides
Also, all Government Statutory Requirements must be med and adhered to.
February 9, 2009
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