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Rural Enterprise Development Initiative – Tourism Sector July 14, 2009

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Rural Enterprise Development Initiative – Tourism Sector July 14, 2009 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 PA Consulting Group 4601 N. Fairfax Drive Prepared by: Suite 600 Arlington, VA 22203 Tel: +1-571-227-9000 Fax: +1-571-227-9001 www.paconsulting.com 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 i Jamaica Social Investment Fund 7/14/09 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 ii Jamaica Social Investment Fund 7/14/09 TABLE OF CONTENTS… Appendices APPENDIX A: TPDCO Licensing Requirements iii Jamaica Social Investment Fund.7/14/09 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. 1-1 Jamaica Social Investment Fund 7/14/09 1. Introduction… 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
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