INDIGENOUS ENTREPRENEURSHIP IN THE ACCOMMODATION SECTOR: A CASE STUDY OF

by

Jackiyn C-Neblett

Graduate Program in Geography

Subrnitted in partial fulfrlhent of the requirements for the degree of Doctor of Philosophy

Faculty of Graduate Studies The University of Western Ontario London, Ontario Decernber, 1998

O Jackiyn C. Neblett 1998 National Libraiy Bithèque nationale du Canada Acquisitions and Acquisitians et Bibliographie Services services bibliographiques 395 Weilington Street 395. rUe WeWWiglorr ûRawaON K1AûN4 -OF1 K1AW Canada canada

The author has granted a non- L'auteur a accordé une licence non exclusive licence allowing the exclusive permettant à la National Lïb,rary of Canada to Biôliotheque nationale du Canada de reproduce, loan, distriibute or sell reproduire, prêter, distn'buer ou copies of this thesis m microform, vendre des copies de cette thèse sous paper or electronic formats. la forme de microfiche/nlm, de reproduction sur papier ou sur format électronique.

The author retains ownership of the L'auteur conserve la propriété du copyright in this thesis. Neither the droit d'auteur qui protège cette thèse. thesis nor substantial extracts fiom it Ni la thèse ni des extraits substantiels may be printed or othemîse de celle-ci ne doivent être imprimés reproduced without the author's ou autrement reproduits sans son permission. autorisation- Enuepreneurship is a significant variable in the process of economic development. Mass , particulariy within deveIoping peripheral regions, can provide opponunities for greater entrepreneurid involvement. The purpose of this research is to describe and mode1 the nature and scope of indigenous entrepreneurship in the accommodation sector on the of Barbados, in the Caribbean. More specificaiiy, this research delineates the spatial distribution of indigenous entrepreneurs in the sector. and creates a profile and a typology of this group.

The research questions are addressed using the triangulation approach: qualitative/quantitative and data/methodological triangulation. Multidimensional scaling is used in considering the hypothesis: indigenous entrepreneurship in the accommodation sector is peripheral in location and function,

A core-periphery theoretical foundation is used in describing the spatiai pattern of indigenous entrepreneurship in the accommodation sector vis ii vis the core tourist areas-

In addition. the nature and scope of indigenous entrepreneurid involvement are explored by identimng and classiQing the entrepreneurs and theù activities.

The research confirms the locational and functional peripherality of indigenous entrepreneurship in the accommodation sector in Barbados. It also reveals that the indigenous entrepreneurs in the accommodation sector are not a monolithic group.

Instead, they are a diverse grouping of individuals with varied demographic charactenstics. having distinctive attitudes and perceptions regarding the tounsm industry and business.

This research contributes to the understanding of the tounsm phenomenon, parcicularly in peripherai destinations. and adds to the generd knowledge on indigenous entrepreneurial activity in peripherai regions. It aiso provides for a paaicular understanding of indigenous entrepreneurial involvement that should assist tourism polic y maken in establishing environments that would facilitate indigenous entrepreneurship.

Keywords: Entrepreneurship. tourism, Barbados I thank Infinite Spirit for allowing the divine design of this research to manifest.

1would especially !ike to thank Dr. Milford Green for his guidance, encouragement. and overaii support whîch sustained me throughout the many phases of this research. Due to his critical input. much was accomplished in a relatively shoa space of time. 1am very appreciative of his invaluable assistance and attentive consideration.

I am gratehil to Dr. Ieffiey Hopkins for his encouragement and helpful comments.

Many thanks to Da. Richard Butler and Robert Cecil for their assistance during the early stages of this research-

Although writing. for the most part. is a solitary exercise. family and friends have provided an immeasurable amount of assistance in innumerable ways. i am eternally grateful to my family for their love and support. particularly dunng those tirnes of uncertainty and anxiety. Mom, your patience and faith have withstood the test of tirne.

Gisèle, thank you for encouraging me to penevere. Marlene. thank you for allowing me to find refuge in your home. locelyn. thank you for sharing. To my other friends. thank you for understanding and for dways king there.

A special note of appreciation is extended to my colleagues Don. Vince and Steve for spurring me on. Sibi, what can 1Say other than "thank you." Your unbridled assistance has been a Gocisead,

And finally, 1owe a of gratitude to the faculty and staff of the department, and a special note of thanks to my cornputer pals. lane, Peter. Alex. M. and Car1 for their tireless assistance- -. CERTlFICATE OF EXAMNATION ...... IL - - - ABSTRACT...... --...--.---....-.--...... ------.----.------...-- iii

ACKNOWLEDGMENTS .-..--.--.-.---..-c------.------v

TABLEOFCONTENTS ...... vii

LISTOFTABLES ...... xi --- LISTOFFIGURES ...... -...- xlii

Introduction --.----.--.--..-----.--...... ---.------.------..----8 The Regionai ...... -9 The Performance of the Economy ...... 11 The Performance of Tourism ...... 12 The Need for Tourism Policy ...... 18 Institutional Support for the Accommodation Sector ...... -2L Summary .....---...... ----.-.--...... -24

vii Chapter 3 LXERATURE REVIEW ...... -26

introduction ...... 26 DefinitionofTenns ...... 27 Development ...... O...... -..... 27 Entrepreneurship ...... -38 Indigenous Entrepreneur ...... -30 Tounsm ...... 32 The Geography of Development ...... -33 Developing Countries and Development ...... -37 The Relationship between TourÏsm and Development ...... JO Tourism Development Theones ...... 40 Core-penphery Concept ...... -42 The Tourist Space Concept ...... -45 The Relationship between Entrepreneurship andDevelopment ...... * Sorne Aspects of Entrepreneurship in the Caribbean ...... -50 Stnictural Adjustment Policies ...... -54 Indigenous Entrepreneurship and Tourism ...... ,...... 56 DiffUsionTheory ...... 61 EconomicDualism ...... 63 Typologies in the Tourism and Entrepreneurship Literature ...... 65 Summary ...... 68

Chapter 4 DESIGN OF RESEARCH ...... 71

Introduction ...... 71 ResearchQuestions ...... 71 Methodofhqujr ...... 73 UnitsofAnaIysis ...... 73 Samplingstrategy ...... 74 Research Subjects and Units ...... -76 Datacollection ...... 78 Questionnaire ...... 79 interviews and Observations ...... -80 Analysis Techniques ...... -83 Statistical Techniques ...... -84 Study Limitations ...... -85 Summary ...... 87 Chapter 5 THE ACCOMMODATION SECTOR IN BARBADOS ...... -89

htroduction ...... 89 The DeveIopment of the Early Hotels (Preemancipation) ...... 91 The Spatial Development of the Accommodation Sector (Post-emancipation) ...... 93 The Development of the Accommodation Sector (Post-world War l) ...... 95 The Growth of the Accommodation Sector ( l960-1994) ...... 97 The Tourkm Plant in Barbados. L 994 ...... 103 The Spatiai Structure of Tourism in Barbados ...... 106 SpatialHierarchy ...... 112 State of the Accommodation Sector ...... 1 14 Categorïes of Ownership in the Accommodation Sector ...... 117 Small HoteIs of Barbados ...... 119 Structure of Foreign Ownership ...... 122 Structure of hdigenous Ownership ...... 123 The Indigenously-owned Accommodation Sector ...... 124 Some Other Characteristics of hdigenous Ownership ...... 129 Perceived Sphere of Muence ...... 131 Peripheralilty within the Accommodation Sector ...... 137 Summary ...... 148

Chapter 6: INDIGENOUS ENTREPRENEURS IN THE ACCOMMODATION SECTOR ...... 152

Introduction ...... 152 Background of the Indigenous Entrepreneurs ...... 153 Socio-Demographic Chancteristics ...... 154 Familial Entrepreneuriai Background ...... 156

Education ...... 158 Additional Training ...... 161 Experience ...... 163 Attitudes Towards and Perceptions of the Tourism Industry and Business ...... 167 Reasons for Entering the uidustry ...... 168 Satisfaction with Business ...... 172 Future Changes and Development ... - ...... 174 Typology of Indigenous Entrepreneurs in the Accommodation Sector ...... 176 Classification of Indigenous Entrepreneurs ...... 177 Surnmary ...... 182

Chapter 7: STRUCTURAL SUPPORT ...... 185

Introduction ...... 185 Financing Hotel Enterprises ...... 186 SourceofFunds ...... 186 Programs And Opportunities for Entrepreneurs in the Accommodation Sector ...... 189 Desired Assistance from the Government ...... 190 Summary ...... 191

Chapter 8: SUMMARY DISCUSSION AND CONCLUSIONS ...... 193

Introduction ...... 193 Spatiality of the Accommodation Sector ...... 194 Perceived Tourist Space ...... 197 Peripherality of Indigenous Entrepreneuahip ...... 198 Indigenous Entrepreneurs in The Accommodation Sector ...... 199 Attitudes and Perceptions ...... -201 Summary ...... 203 Conclusions ......

APPENDIX L ...... 212

APPENDIX2 ...... 2 14

APPENDK3 ...... 3?6

APPENDK4 ...... 228

REFERENCES ...... 237

VXTA ...... 254 Stopover Amvais for Barbados. 19804994 ...... 15

Estimated Tourist Expenditure. 1980- 1994 ...... 16

Accommodation by Hotels and Bed Capacity. 1978-1994 ...... -99

Accommodation Units in Barbados. 1980-1994 ...... LOO

Accommodation in Barbados. 1994 ...... 106

Location of Accommodation in Barbados. 1994 ...... 108

Percentage Distribution of Hotel Rooms. 1994 ...... 113

Hotel Population in Barbados by Category ...... 126

Type of Ownership (Percentages) ...... 130

Length of Ownership (Percentages) ...... 131

Perceived Presence in Tounst Activity Space ...... 134

Adapted Classification of Hotels ...... 112

ANOVAResults ...... 145

Perïpheraüty of Location and Function ...... 116

Socio-Demographic Characteristics of Indigenous Entrepreneurs ...... 155

Familial Entrepreneurid Background (Percentages) ...... 156

Tourism Education and Experïence of [ndigenous Entrepreneurs ...... 161 6.4 Business Experience of Indigenous Entrepreneurs ...... 165

6.5 Reasons for Choosing Location of Accommodation (Reasons for Entering the Indusuy) ...... 171

6.6 Differences in Respondents' Attitudes Towards Satisfaction with the Progress of Business ...... 173

6.7 Typology of uidigenous Entrepreneurs in the Accommoda~onSector ...... 179

xii LIST OF FIGURES

1.1 Map of Barbados ...... 7

5.1 Growth in Accommodation Units. 1980-1994 ...... 101

5.2 Conceptualuation of Spatiaily Hiecarchical Tourkt Accommodation Zones in Barbados ...... 115

5.3 Ownership of Hotel Rooms in Barbados . 1994 (Percentages) ...... 127

5.4 Contribution to Tourist Expenditure ...... 139

5.5 Map of Peripherality ...... 147

xiii CHAPTER 1

INTRODUCTION

1.0 Problem Statement

Tourism is the largest service indüsüy k the world. Over 545 diion international tourists spent approxirnately US$346 billion in 1994 (WTO, l996:5).

According to the World Tourism Organization (WTO), by the year 20 10, the number of tourists travelling around the world will double to approxirnately one bilIion (Elder,

1995:6). A fraction of these tourists wiil visit the Caribbean, and more specifically, the island of Barbados. Iii 1994 the Carïbbean received 2,49%of the world share of international tourists (WTO, 19965).

Generally, diminishing export markets in developing peripheral regions of the world has caused many of the countries in these regions to focus on tounsm as an alternative economic activity. hdeed, tourism has developed as the leading economic sector of many developing penp heral regions as former plantation econornies are being transformed into tourist mzccas or encIaves by the metropole, The structure of Third

World international tourism tends to mirror the structure of Third World economies in that their organization is based on a core/perïphery dependency. The tourism industry in the Third World, sometimes referred to as a fonn of neo-co1oni;ilism (Ensrnan, 1983;

Husbands, 198 1; Britton, 1980b), or as "a new kind of " (Finney and Watson, 1975), 2

typically exhibits core-periphery interrelationships (Hills and Lundgren, 1977). B ri tton

(1982) noted that the suucture or organization of Third World tourism reinforces

dependency on, and vuinerability to, developed counuies due to the commercial power

held by foreign enterprises. In short, the organization of the industry tends to render it a

highiy ambiguous development strategy.

In a review of tourism research, Pearce ( 1989: 183) identified the impact of

tounsm as the most common theme and noted that "impact studies failed to consider adequately the type of tounsm concemed, and that impacts were often divorced €rom the

process w hich had caused them." Tourïsm occurs in varying physical. social/cultural. economic, and environmentai contexts and as such the impacts of tourism would be

necessarily different from place to place. He further noted that these studies were not

usually set in a broader context of development.

A significant variable in the process of economic development is entrepreneunhip (Schumpeter. 1936; Baumol. 1968; Nabi, 1988). According to

Schumpeter ( 1936). entrepreneurs are essential catalysts for growth as well as the linchpin of economic development. Nabi (1988: 12) noted that:

. . . it is not too great an exaggeration to Say that understanding development meam understanding how entrepreneurs make development happen by employinp both human and physical resources in increasingly valuable ways.

The impact mass tourism has had on indigenous entrepreneurid involvement in perïpheral destinations or elsewhere is not readily apparent. ln considering how, if at dl. tourism is succeeding in stimulating indigenous entrepreneurid involvement. some fundamental questions need to be addressed. Are indigens utilizing the opportunities that 3

tourism presents? Who is responduig to the apparent opportunities? What are the nature

and scope of their involvement? How are indigenous entrepreneurs king assisted andlor

encouraged by the govemment? These questions are pursued in the dissertation.

Research efforts which contribute to an understanding of the tourism phenornenon

in developing countries (penpheral destinations) are cntical for the survival and growth

of the industiy. Generaily, the research needs of developing countries are greater than

those of the industnalized countries (Shackleford, 1987: 150). Specific research needs for developing countries were identified in the Manila Declaration of World Tourism which

has been sanctioned by the vast majority of developing countries. One of the research

needs identified was that developing tourïsm research consider possibilities of tourism development which focused on srnail- and medium-sized. family-nin enterprises as a key activity (WTO, 1980. 1985). (in Shackleford, 1987:151). Aithough numerous studies have been conducted on the spatial patterns of tourism development (Britton, 1980a.

1982; Hills and Lundgren. 1977; Hinch, 199 1; Kermath and Thomas. 1992). tourism researchers have not closely examined indigenous tourism accommodations nor specifically considered the indigenous tourisrn entrepreneur in developing peripheral regions.

This research therefore addresses this gap in the tourism literature by adding to the general knowledge on indigenous and small-scale entrepreneurid activity in developing peripheral regions. By assuming the task of observing, analyzing. and explaining the activities of the indigenous tounsm entrepreneurs in peripheral developing regions, researchers could develop modeIs and toois which would be useful to tourism managers, 4 plannea, and policymakers in not oniy understanding the nature and scop of indigenous tounsm activity, but dso in establishing the structural environment to facilitate the development of the sector.

1.1 Purpose

The purpose of this research is to describe and mode1 the nature and scope of indigenous entrepreneurship in the accommodation sector on the island of Barbados. in the Caribbean (Fig. L. 1). More specifically, this research delineates the spatial distribution of indigenous entrepreneurs in the sector. and creates a profile and a typology of this group.

Objectives

The objectives of the research are as follows:

To identim and explain the distribution and spatial pattern of indigenous

entrepreneurship in the accommodation sector vis 6 vis the core tourïst areas in

B arbados;

To identiQ and create a typology of indigenous entrepreneurs in the

accommodation sector; and

To test the hypothesis: Indïgenous entrepreneurship in the accommodation sector

is peripheral in location and function.

In effect. satisfj4ng these objectives would make valid theoretical contributions by:

providing a broader understanding of the periphery as identified in international tourism structurai models;

addressing the paucity of research in the tourism Iiterature on small- and medium

sized enterprises;

adding to the general knowledge on indigenous entrepreneurid activity in

peripheral regions; and

increasing the understanding of the relationship be tween indigenous

entrepreneurid involvement and deveiopment-

1.3 Overview

A review of the literature on development, tourism and development, and entrepreneuahip and development which establishes the theoretical and conceptual foundations upon which the dissertation is stnictured are presented in chapter three. The methodological framework is presented in chapter four- It describes the research techniques utilized in collecting the data from the study area, as well the analytical techniques. The limitations of the research are also identified. Ln chapter £ive the historical development of the accommodation sector in Barbados is described and indigenous entrepreneurship is located with the sector so that it cmbe critically exarnined. The results of the analysis on the question, who is responding to the apprirent opportunities in the tourism industry, are presented in chapter six. In addition to elaborating on the socio-demographics of the entrepreneurs and their attitudes toward and perceptions of the tourism industry, a typology of the entrepreneurs is offered. In chapter seven the institutional structures which facilitate or irnpede indigenous entrepreneurid involvement in the industry are considered and a summary of the assistance the entrepreneurs desire from the govemment is presented. A summary discussion and conclusions are offered in chapter eight, The following chapter is a description of the study area. The regional geography of Barbados. the performance of the economy, particuiarly the economic activity of tourism, as weU as other pertinent tourism-related issues are descrïbed. Am- CHAPTER 2

THE STUDY AREA: THE ISLAND OF BARBADOS

2.0 Introduction

The Barbadian reputation for hospitality among the fnendy peoples of the Caribbean is legendary. Barbados, with an equable year round climate and pristine white beaches with surf and calm waters to suit every taste, has always been one of the holiday locations of choice of the cognoscenti of the industrial nations of the north, who gravitate to the warmth of its shores and its people (Goddard, 199 1:go).

Contributing 10-15 percent of GDP and about 50 percent of foreign exchange eamings (E.I.U., 1995:39), tourism is the major plank of the Barbadian economy. For

Barbados, tourism represents the most viable development option (BCCI, 1995:79).

Thus the has commined to "fostering quality tourism through the continuous enhancement of the tourïsm product" (GOB, 1993: 163).

The aim of this chapter is to descnbe aspects of the regional geography of

Barbados and the performance of economy, as well as sorne other pertinent tounsm- related issues. In particular, the role tourkm pIays in the economy and the government's approach to the tourisrn sector is considered. Tourism policies and strategies, especiaily those that relate to the accommodation sector andor local ownership, are also examined. 2.1 The Regionai Geography of Barbados

Barbados is the most easterly of the chain of Caribbean (Fig- I - 1)- It is

34km (2 1 miles) long and 22km (14 miles) wide with a total area of 432km or 166 square miles, of which 97km is coastline. Located at L3 " LON latitude and 5g035W longitude, it lies 435krn (270 miles) northeast of and 300km (200 miles) tu the northeast of

Trinidad and Tobago- It has a fairly stable climate with temperatures ranging between

23°C and 30°C. There are two distinct seasons, the wet season which mns from June to

November and an otherwise dry season.

Fringed by the on the West and the Atlantic Ocean on the east, the island of Barbados is generdy made up of soft marine deposits of corai limestone, with the exception of the eastern Scotland District where the terrain comprises clays and sandstones, particularly in the parishes of St. Joseph, St. John, and St. Andrew. The land is generdly flat, nsing however, in the east in a senes of terraces to a maximum of 340krn

(1 100 feet) at the highest point, Mt. Hilaby in St. Andrew. The island is divided into 1 L parishes with the capital, , located in the parish of St. Michael.

Seventy-seven percent of the land in Barbados is arable, with no permanent crops

(C.I.A., 1995)- Agncultural activities are generaiiy confined to sugarcane and subsistence foods. The natural resources include petroleum, fishing, and natural gas.

Barbados, referred to as 'The Little England of the Caribbean," was settled by the

English in 1624, and had been under its control until 1966 when it gained its independence from Britain. An independent sovereign state within the Commonwealth,

Barbados has a parliarnentary form of democracy based on the Westminster Model. it has LO a well-established two-party system; the Barbados Labour Party (BLP) was the fit politicai party formed in 1937, while the Democratic Labour Party @Le), a splinter group of the BLP, was formed in 1955.

While Barbados boasts of one of the highest adult literacy rates in the world at 99 percent, it dso has the dubious distinction of king one of the world's most densely populated countries (600 persons per sq. km.) with an estimated population of 256,395

(July 1995) and a growth rate of -3 percent (1994 estimate) (C-LA-,1995). The population of Bridgetown, the capital, as well as the rest of the parïsh of St. Michael is

108,000 pesons. Most of the population is between the ages of 15 and 64 (66%).of which 86,103 are female and 82,727 are rnaie. Twenty-four percent are between the ages of zero and 14 years of age (ibid.). Eighty percent of the population is of African descent and 4 percent is European, and 16 percent are of other ethnicities (ibid.).

The standard of living in Barbados is relatively high. In 199 1, in the UN

Development Programme's Human Quality of Life index, Barbados was ranked as the highest of al1 of the less developed countnes and 22ndin the world (S.A.C.A.C., 1995:96).

Ln 1993 the gross national product per capita was US$6,260 and US$6.5301 in 1994

(Worid Bank, 1996). The labour force in Barbados is 124,800 strong (1992). The majority of these jobs are in the services and government (41%) and manufacturing and construction (18%) sectors. Tourism was the third largest employer in the nation accounting for 8.1 percent of the work force in 1992 (E-LU., 1993). The unemployment

'A per capira income of US$9,200 (1994)is reported elsewhere (C.I.A., 1995). The GDP per capita () was BdsS10.570 for 1993 (WHOSIS,1998). rate in 1994 was estimated at a high of 20-5 percent (C-LA.,1995), with the highest

unemployment amongst the female population between the ages of 25 and 34 years

(Barbados Statistical Service, L995).

2.2 The Performance of the Economy

Historically, Barbados' economy has been based on sugar and its by-products: mm

and molassesc More recently however, diminishing export markets, arnong other things,

have necessitated a diversification in agriculture, as well as al1 other economic sectors,

Thus, the current is principdïy based on the three sectors of

tourism, light manufacturuig. and sugar (E-LU., 1993)'

After five successive years of expansion since the of 198 1-1982, the

Barbadian economy experienced a senous downtum, parilcularly between the periods of

1990- 1992, with negative growth ranging €rom 4.2 percent and 6.1 percent. The economy experienced such difficulty that in 199 1 a structural adjustrnent programme was implernented under the auspices of the International Monetary Fund (m.The IMF identified criticai trade imbalances arising from high demand for imported goods and food, poor export performance, as well as a persistent budget deficit due to a very large public sector as some reasons for Barbados' economic difficulty.

Barbados, having a relatively Iimited resource base, imports fxmore than it exports. h 1993 Barbados exported an estimated Bds$l6 l million in commodities such

'The offshore financial services is now the second largest earner of foreign exchan,ae after tourism (E.I.U., 1993). 12 as sugar and molasses, mm,other food and beverages, chemicai and electrïcd components. and clothing. In the same year the estimated import bill was Bds$703 with partnea such as, the US, the UK, . and for commodities such as, consumer foods, machinery, foodstuffs, constniction materiais, chemicals, fuel, and electricd components. Barbados' external debt sits at Bds$652 miilion (199 1 estimate)

(C.I.A., 1995). Nonetheless, by 1993, the econorny experienced limited growth of 1.5 percent and stronger growth of 4.1 percent in 1994. mainly due to increased tounsm and expansion in the construction sector (E.I.U., 1996; C.I.A., 1995).

h the Barbadian economy, tounsm is more heavily relied upon for foreign exchange earnings and employment as compared to other commodity exports. For instance, tourkm has ernerged as the leading growth sector as other major export activities, such as sugar and manufacturing, experience difficulties due to extemal market conditions. Tourism, being highly susceptible to the vagaries of economic conditions in the international market, as well as to internai physicai, socid and environmental causation, tends to show inconsistent performance.

2.2.1 The Performance of Tourism

In the early 1970s, due to increased charter tourkm and scheduled airlines expanding their inclusive tours, there were increased visitor arritals in Barbados.

However, by the mid 1970s (1971-1976), Barbados expenenced declines in visitor mivals due to the recession in the US economy. By the Iate 1970s. visitor arrivds again climbed an average of 18 percent between 1976-1979 due to the severe winters in Nonh 13

Amenca, increased popularity of low-cost charters, and the recovery in the US economy

(E.I.U., 1979).

Since 1980 there has been a steady decline in the average Iength of stay and hotel occupancy rates. Occupancy rates remained mostly below 50 percent for much of the

1980s. Despite the high target of 75 percent by the Government, occupancy rates remained well below the targeted rate. Aithough it climbed to 64.3 percent in 1989, it again dropped to 50.5 percent by 199 1. Some luxury establishments achieved overall occupancy rates well above the average. Average tengtlh of stay went up from 6-9 nights in 1993 to 7.2 nights in 1994 @.LU., 1995).

Between l98O- 1994 (Table 2-1 ), visitor arrivais see-sawed in two and three year intervals. Tounst expenditure, however, had ody two significant periods of decline in

198 1- 1983 and 1990-1992 (Indexed values) (Table 2.2)- For instance, during the period

1980-1982, arrivais dropped fiom 369,9 15 to 303,778 visitors, representing a 18 percent dedine, much of it resulting from a decline in visitors from the US and Canada, aithough visitors from the UK increased by 3 1 percent @.I.U., 198 1). In addition, there were a number of occurrences in the trave1 industry which adversely dfected Barbados, such as the collapse of Laker Airways, the dernise of the Canadian tour Company,

SkylarWSunflight, as weU as the cancellation of charter flights frOm Toronto and

Scandinavia (E.I.U., 1982)-

Tourist expenditure also dropped off during this period, particularly in 1982 when it fell 13 percent (indexed value), the largest percentage decline in the 14-year period.

However, the greatest decline in real dollars occurred in 199 1 when tounst expenditure 14

fell from Bds$987m- in 1990 to Bds$920m- in 199 1- Shorter lengths of stay, as well as

extensive hote1 discounts contributed to iower eamïngs.

Visitor arrïvals ctimbed again between 19834989, except in L985 when it feii 2.3

percent; the greatest increase of 14 percent occurred in 1987. Factors such as reduced

hotel rates (low-cost packages), and increased flights fiom Europe account for some of

the increase in visitor arrÎvals, especialiy fiom the British and European markets, Visitor

expenditure dso increased substantially- For instance, du~gthe same period, there was

a 67 percent increase over 1983 from Bds$474m- to Bds$629m- in 1989 (indexed values),

or a 109 percent increase in real dollars-

...tourism . - . has expanded faster than any other sector - . . Its growth is not only a reflection of the boom in the international tourism generaiiy and the naturd attractiveness of Barbados, but ais0 a resuit of intensified promotion, backed-up with the expansion and improvement of facilities to cater for al1 classes of visitors- mass. middle-income and up-market. In 1987, for example, a new poa facility for cruise ships opened in Bridgetown. There are now bettec road networks across the island and sports and cultural cdendars have been introduced to provide tourïsts with a variety of recreationd activities, in addition to the traditionai Sun, sand and sea (Oyowe, 1990: 13).

Between 1990-1992, visitor anivals declined as charter fiights decreased by 50 percent from the UK, as were direct services from the US. In 1991, for instance, the Gulf

War, coupled with severe economic conditions in North America and Western Europe, caused visitor amivals, and in tum tourïst expenditure, to plumet. Barbados had dso been faced with increased cornpetition in the American market from other Caribbean resorts; the newly-emerged and emerging , as weii as from new Table 2.1 Stopover Arrivals for Barbados, 1980-1994

Year Number of Percentage Percentage Arrivals Change over 1980 Change over Previous Year

Source: CTO,1993; WTO, Yearbook 1996 Table 2.2 Estimated Tourist Expenditure 1980-1994

Year Estirnated Percentage Estimated Percentage Tourist Change over Tourist Change over Expenditure Previous Year Expenditure Previous Year @ds$m.) (Bds$m.) (Indexed (Indexed Values) Values)

Source: Barbados Statisticai Service, 1995 17

products such as cmises, dl-inclusive resorts, eco-tourism, and other specid interest

activities (GOB, 1993: 16 1).

By 1993, stopover arrivais increased by 2.8 percent to 395,979 visitors and 7.5

percent in 1994 to 425,6ûû visitors (BSS,1995), due in part to a heavy advertising

campaign in the US and the recovery of the US economy- In 1994, tourist expenditure

reached E3ds$595 million, a 26 percent increased over 1980 (indexed value) or 152

percent in reai dollars- Cruise ship visitors have also been increasing steadily. Between

1988 and 1992, this group increased from 291,053 to 399,702 visitors- By 1994, it had

increased to 459,502 visiton (BSS, 1995)-However, cruise ship visitors contribute relatively litde to tourist expenditure and the economy due to the iittle time spent on shore.

Other explmations have been given for the inconsistent performance of the tounsrn sector in Barbados. In addition to the aforementioned extemd factors, a Litany of interna1 factors was also cited, such as excessive taxation, high utility rates, unredistic wages, uncornpetitive hotel rates, an aging accommodation plant, insufficient funds for promotion, poor marketing, abuse of tax-free holidays by rnultinationals, political patronage, unsatisfactory local attitudes toward visitors, problems of beach haasment, crime, dmgs, poor roads, garbage, pollution, deterioration of the marine environment, inadequate training and the Iack of a comprehensive tourism development plan (Dann and

Potter, l997:z 10-2 12)- Dann and Potter (1997) concurred with the that perhaps apportioning blame equally to both the externd and interna1 factors was c1osest to reality. f 8

Based on the limited resource base on the island, the high imports, and diminishing inditionai export markets, it is expected that Barbados will continue to reIy heavily on tounsm for increased foreign exchange eanings, as weil as empfoyment.

Thus, given the critical role tourisrn will continue to play in the Barbadian econorny, as well as the extemal and intemal factors that impinge on this economic activity, an effective tourism policy which would impose directionai impetus on the development of the industry is imperative.

2.2.1.1 The Ndfor Tourism Policy

,..the introduction and development of tourism shouId be reflected at the Ievel of government policy, in which tourkm is evafuated according to national needs and interests and where its various costs and benefits are adequately assessed (Peterson, 1990 in Dann and Potter, 1W7:2 13).

Tourkm policy has been defined as "the complex of tourism reiated decisions which, integrated harmoniously with the nationai policy for development, determines the orientation of the sector, and the action to be taken" (Acerenza 1985 in Wilkinson,

1997: 16). The three fundamentai elements which underiie ail tourism policy were defined as visitor satisfaction, environmental protection, and adequate rewards for developers and investors (ibid-).

Barbados has no explicit or formal tourisrn policy, as thus defined, Indeed, there is "no cIearly defined vision or direction based on [a] national consensus between the

Govemment and the social partners . + . to guide the development" of the tourism sector

(Caribbean Futures et al-, 1992:4). However, through its tourism iegislation and 19 development plans, Barbados has provided strategies and broad objectives for the industry. TOU~S~strategies and objectives, however, are not tourism policy- hstead, they are the means by which the elements of tourism policy might be observed-

Wilkinson (1997) anaiysed the Barbadian Govemment's tounsm legislation, development plans (Hotel Aids Act, 1956: Physical Development Plan, 1970; National

Development Plans, 1979, 1983; Joint Cornmittee Report, 1984; Hotel Aids Act, L984;

National Development Pian, 1988; and Physical Devetopment Plan, L988) as weil as major characteristics of the touïsm sector, and concluded that generdy, "the

Govemment seerns to have adopted a laissez-faire attitude, preferring to encourage such policies as fm growth, then quality control, and more recently market diversification, rather than becoming an active agent in planning for tourism development" ( 1997: 160- 1).

He further noted that "the Government is not reaiiy involved in tounsm development policy or planning, but rather only in tourhm land use and marketing planning" (ibid.).

Barbados, however, has pursued many of the stated tourkm objectives in its

National Developrnent Plans. Of particular interest to this work are those strategies and objectives which relate to the accommodation sector, paaicularly small hotels, local ownership, and education and training. Some exarnples include the foIlowing:

Small Hotels:

The Ministry of Tourism will undertake measures to enact and irnplement

appropriate legislative and other measures to improve the tourism product,

particularly of locally owned small hotels (GOB, 1979);

To develop a project to assist a selected number of small and medium sized hotels 20

with marketing, financial and organisationai management, and physicai uppding

of buildings (GOB,~988a)~.

Local Ownershi~:

To increase local ownership and management (GOB, 1979);

To reserve ancillary services in the industry for operation by Barbadians; a policy

which reflects Government's desire to increase the level of ownership and controi

by Barbadians (GOB, 1983).

Education and Training:

To upgrade and expand programmes of training for the industry by integrating the

Hotel School in the Barbados Comrnunity College for ail areas of hospitality

training up to and inciuding middle management, as well as to CO-ordinatethese

programmes with those of the University ofthe (GOB, 1979);

To provide new facilities for the Hospitality Studies Division of the Barbados

Comrnunity College to enable the College to offer a wider range of cuaes and an

irnproved range of facilities (GOB, 1993).

To varying degrees, these objectives/goals have been met. Within the Government development plans cmalso be found many of the seeds for creating institutional support that is provided for indigenous entrepreneurs.

'Srna11 Hotels Assistance and Recovery Project (SHARP) faikd to be ris successful as was rincicipated. Not only were sorne hotetiers dissatisfied with the rnanner in which hotels were selected, but those who were selected noted that they derived very Iittle benefit from the project other than minimal exposure in Iimited markets, as weI1 as having sorne brochures produced and distributed. No long-terrn benetïts were apparent (Personal communication with subjects of this study who were also participants in the SHARP. 1994). 21

2.3 Institutional Support for the Accommodation Sector

As early as the 1950s, the Govemment of Barbados has developed programmes and established institutions in support of srnail businesses and the indigenous entrepreneur, For instance, in 1956, the Hotel Aids Act provided for, arnong other things, the duty-free importation of materïals. Howard (1989:69) contends, however, that this early fiscal incentive legislation was designed to encourage foreign investment in tourïsrn as there was a "bias in the legislation which encouraged the building of Large hotels, thereby foreclosing many local Barbadians from hotel ownership-" In 1973. the Act was amended so that Barbadian nationals were given concessions to build hotels with iess than 25 rooms and apartments with less than 50 units (ibid.). In 1957, the Barbados

Development Board was charged with the task of "stïmulating, facilitating and undertaking industrial. hotel, and agncultural operations or projects not already well established in the country" (Downes, 198858).

Sorne other forms of institutional suppoa are available through more recent legislation (Hotel Aids Act, 1984), financial institutions (Barbados Development Bank:

Barbados uivestment Fund), and training and education institutions (Barbados Institute of

Management and Productivity; Hotel School, Barbados Community College; and the

University of the West Indies).

The Hotel Aids Act was basically created to encourage the development of hotels in Barbados It provides incentives such as (1) duty-free importation of material

Legislation, other than the Barbados Hotels Aids Act, inchde the Barbados Tounsm Authority Act( 1993). which established the Barbados Tourism Authority (forrnerly the Barbados Tourkt Board), and the Tounsm Advisory Council- A copy of the Hotel Aids Act (1967) is in Appendix L - required for construction and expansion of hotel plant and related infrastructure? and (2) the cost of consuuction of quali@ing hotels to be deducted from or set-off against the profits or gains (corporate tax relief). However, it wouid appear that few hoteis record sufficient profit from which they could deduct construction and expansion costs (OAS,

1987:C-46). Another shortcoming of the Hotel Aids Act pertained to the definition or type of hotel w hich qualified for the benefit from the Act as some condominium apartments were deemed not to be hotels (ibid.).

Financial institutions which provide support for the indigenous entrepreneur in the accommodation sector ïnclude the Barbados Development Bank (BDB), and more recently, the Barbados hvestment Fund @IF). One of the reasons for the estabiishment of the BDB in 1963 was to encourage the development of an indigenous entrepreneurid class. In 1994 the BDB had a loan portfolio of Bds$87 million. Approximately Bds$30 million was in the hotel sector- One-third of these Ioans or Bds$lO million was in default in interest and indebtedness, the majority in smdhotels under 30 rooms (Beckies,

1994y

The Barbados Investrnent Fund (BIF) was established in 1992 between the Central

Bank of Barbados and the Caribbean Financial Services Corporation to assist in the development of smaii and medium sized enterprises by making equity investment. The guidelines under which BIF operates appear to be partïcularly suitable for the

'In 1984, the HoteI Aids Act was extended to include duty-free concessions on material required for the refurbishment of hotel facilities.

'Postscnpt: in Iuly 1998, parliament repealed the BDB Act closing the BDB which had ceascd operations in December 1995- The BDB had an accumulaced deficit of Bds$76rn, and outstanding loans of BdsS8.6m-, mostly due to the tourkt industry (ELCI., 1998:Sl)- accommodation sector and the indigenous entrepreneur.

. . . any BIF investment .. .must be held by Barbadian shareholders .. . The investrnents must aiso have the potentiai to contribute sigdicâ[it value added to the Barbadian economy by increasing foreign exchange eaniings andor ernployment with the prospects of providing the fund with capital appreciation @BU, 1994: 16).

Equity financing is a reasonable option for hoteliers as it "reduces the burden for lookng for loan repayment and interest cost" and does not cavmany monthiy or annuai interest costs, unlike loan financing (ibid-)- The utility of the BEmay be limited in the case of many small hotels, however, since they tend to have an unattractive debt-to-equity ratio and therefore would not be considered-

Financing for smaü and medium sized businesses is also available through commercial banks which are subsidiaries of North Amencan and European banks, the indigenous bank (Barbados National Bank), and other agencies (National Development

Fund(NDF), and Women in Development (WID), as well as the credit union.

Barbados has two hospitaiity training facilities and two institutions which offer business management programmes. The Division of Hospitality Studies at the Barbados

Community College has full-time prognmmes oîTering an associate degree in Hotel

Catering and Institutional Operations. and Tourism Reception and Sales, as well as other certificate prognmmes. Part-time programmes are in Food and Beverage Management,

Professional Cookery, and Marketing of Hospitality Services. One course, Small

Business Venture, and independent study, specificaliy addresses entrepreneunal training-

The recently established Barbados Hospitality institute (BHI), operated by the

Barbados Community College, is a fuil-service hospitality training facility which 24 comprises both educational and accommodation components. This 20-room training

facility, the fxst of its kind in Barbados and in the Eastern Caribbean, offers certïficate, diplorna, and associate training prognmmes in ail aspects of the hospitdity industry

(BHI, 1998).

Management programmes are available at the Barbados Institute of Management

Productivity (BIMAP) to assist with the development of the manageriai and supervisory skilis of persons in generai business. Although the programmes are not directed at the hotel sector, there is much applicability BMAP aiso provides assistance to smaii businesses in the preparation of proposais for development and commercial bank financing. TheUniversityoftheWestIndies,CaveH11lCampus,offersa3-year degree management programme with a specicilisation in hotel management.

Serninars and workshops on the hotel industry are aIso offered by organisations and agencies such as the Caribbean Tourism Organisation (CTO), the Organisation of

American States (OAS), and the Barbados Tourism Authority (BTA) -

2.4 Surnmary

Barbados satisfies many of the requirements of an idyllic sun-sand-sea resort destination- These qualities done, however, are not suffrcient to secure tourisrn's major role in the economy. External and intemal factors continue to impact on and threaten the impressive performance of tourism. These factors suggest the need for formal tourism policy which directs the development of tourisrn. Barbados has no formal tourism policy, however, through tounsm legisiation and development plans it has provided objectives 25 and strategies to develop the industry and ensure, among other things, visitor satisfaction, quaiity tourïsm, and greater Local participation. Indeed, the Government of Barbados. in providing Iegislation (Hotel Aids Act), and by establishing institutions (Barbados

Development Bank), and training and education facilities (B W,BCC-Hospitali ty

Studies Division, BHI) have created fonns of institutional support for the development of the hotel industry, and more genedy, the developrnent of entrepreneurship in the sector.

Tourism has oniy recently been accorded a status as a significant econornic activity in Barbados. Its importance in the provision of opportunities for indigenous entrepreneurid development is appropriately considered within a developmental context.

The fo11owing chapter is a review of the literature and the theoretical foundations which underpin development, tourisrn and development, and entrepreneurid developrnent. CHAPTER 3

LITERATURE REVLEW

3.0 Introduction

Wodd tourism histoncally has been touted as providing benefits, such as the accumulation of foreign exchange earnings, employment. and backward Linkages for domestic and regional diversikation to the perïpheral destination. However, this generally has not ken the case in the Caribbean and elsewhere. Not only has the industry been plagued by negative socio-cultural and environmental impacts, but the econornic benefits have not been as widespread as had been pcoclaimed. Nonetheless, in the

Caribbean in particular, tourism's potential Iinkage effects rendes the tourism industry a viable alternative economic development strategy (CTRC. 1988). Entrepreneurid participation in the tourism industry has the potential for providing greater benefits CO the local population. indeed, local entrepreneurid involvement in the tourism industry, both in the formal and infornial sectors. is pertinent to developrnent as defined by the promotion of human welfare. as well as the attainment of economic well-being.

The airn of this chapter is to review the literature to establish the theoretical foundation upon which the research is suuctured. At the outset, the literature on the spatial and temporal nature of development is reviewed. Tourism. a relatively recent field 27 of study, as yet has no strong conceptuai or theoretical base on development. However, general theories from the deveiopment Iiterature have ken applied to tourism. As such, the literature on tourism and development is also reviewed. Finaiiy, the literature on entrepreneurship and development is considered-

3.1 DefuiitionofTerms

This research considen fundamental concepts and terms whose definitions generally required modification within specific contexts. Thus. the following terms are defined and their application in this researçh context noted: development, entrepreneurship, indigenous entrepreneur, and tourism.

3.11 Development

Historicaiiy, the concept of development has been expressed with a primariiy economic focus (Schumpter. 1936; Myrdal, 1957; Hirschman, 1958; Brookfield. 1973). and more recentiy acknowledging social considentions (Todaro, 198 l), and environmental concems (WCED. 1987). The concept of developrnent includes al1 those factors that coalesce to ensure the overall well-being and bettement of the individual-

Porter and de Souza (in Britton, 1978:vii) embraced the holistic nature of development when they noted nine objectives for development: a healthy, baianced diet dl year; adequate lifelong medicai care. especially for children; a sanitary environment and disease control; vxied labour opportunities to match diverse individual talents; a chance to acquire skills and develop the mind; a sense of inner security and safety. 18

including religious belief; adequate housing; econoniic production systems that are in balance with the environment; and equality in social and poiiticd settings, where differentiation by class, sex, colour, wealth, and religion is absent, or at least not degrading (in Britton, 1978:viii). Within these objectives of development the provision for "varied labour opportunities to match diverse individual talents" and "a chance to acquire skills and develop the minci" are of particular pertinence to this research,

Todam (198 1). however. captured the spirit of development when he suggested that the inner meaning of development is best understood in terms of core values such as life-sustenance, self-esteem. and freedorn. He further suggested that development:

. . . must represent the entire gamut of change by which an entire social system, tuned to the diverse basic needs and desires of individuais and social groups within that system, moves away from a condition of life widely perceived as unsatisfactory and toward a situation or condition of li fe regarded as materially and spiritually "better"(Todaro, 198 1:'iO).

hpiied within Todaro's definition is the notion of quality or baianced growth. Within ri tourisrn context, development or quality growth is achieved when there is balance arnong economic, sociaVcu1tural and environmental elements (Mark, 1975).

In this research, the concept of developrnent is defined as balanced or quality growth for the local population that cornes about as a result of greater economic wealth, as well as greater self-reliance, self-confidence, and an increased sense of well-being

3.1.2 Entrepreneurship

Entrepreneurship, not uniike development, has proved to be a difficult term to define. Hailey (1992:6) concluded that attempts to define entrepreneurship tend to take 29 on the academic bias of the author- For instance, economists emphasize the entrepreneurs' ability to act as agents of change through innovation and risk-taking, while psyc hologis ts consider the "motivation and be havioural attitudes of po tential entrepreneurs" (ibid.).

Schumpeter (1936). whose work on economic development is widely referred to. and who is best known for linking innovation and the entrepreneur, stated that entrepreneurs carry out new economic combinations by introducing new products and new production functions, opening new markets. and by reorganizing an industry.

According to Nafüger (L990), Schumpeter's concept of the entrepreneur is somewhat limited in a context. He suggested that the majority of the

Schurnpetenan entrepreneurs in developing counuies can be charactensed by an ability to open new markets rather than by the development of entirely new combinations due to the high technical transfers which tend to limitlnegate such entrepreneurial activity.

Chowdhuq's definition explicitly identifies the entrepreneur irrespective of hisher cultural environment. For Chowdhury (1989~3).

An entrepreneur, as applied to business. is he/she who cm create a new venture, exist profitably, excel (Le.. can make profit with maximum possible customer satisfaction) and grow honzontally or vertically- for which helshe may have to take certain amount of risk and may have to undertake any or al1 of the innovative activities as mentioned by Schumpeter.

Bull, et al. (19952) suggest that there is an obsession amongst scholars to define the word "entrepreneur." Indeed, the preoccupation with establishing a definition of entrepreneurship, as wefl as the "lack of precision in the definition of an entrepreneur 30 may contribute to the lack of robust entrepreneurship models" (ibid.). Such efforts, they argue, have "misdirected research efforts away from a useful theory of entrepreneurship"

(ibid.:4). For Buil et ai. (1995), the Schumpterian definition is acceptably precise, adequately descriptive and discriminating. They argued that researchers and research would be well-served by adopting Schumpterian-based concepts. Redefuiitions. they suggested, "merely rephrase the Schumpeterian definition" (ibid.).

Ownership is not entrepreneurship Ho wever, within the context of this research, the concept of entrepreneurship was considered synonymous with ownership when initially identifjring the entrepreneurs in the accomxnodation sector, as opposed to just hotel managers.' The rationaie being that hote1 owners rnay be separated from hotel managers by virtue of the greater risks involved in ownership. However, a loose interpretation of the Schumpterian definition of an entrepreneur is applied throughout the research. That is, the entrepreneur differs from the ownedmanger of a business since hislher function is to carry out new combinations by effectively combining resources and opportunities, as well as assuming the associated risks. with the intent that the business will grow and prosper.

3.13 Indigenous Entrepreneur

Typicaily. some definitions of an entrepreneur are ethnocentrk and tend not to necessarily refiect the qualities of entrepreneurs in developing and underdeveloped

' Bygave ( 199 1: 13) suggests that "in the absence ofa universally accepted scientific definition of an entrepreneur. it is the responsibility of every tesearcher to state clearly what is meant when the term is use<. countries. According to Hailty ( 1992). an appropriate definition for entcepreneuahip in developing countries should not be rooted in the values and attitudes of developed, industrialized societies which often tend to be incompatible with the social fabric of many indigenous societies. h recognizing the peculiarities of developing counuies. Hailey

( 1992:7) suggested that an indigenous entrepreneur is:

. . . an indigen person who shows practical creativity and managerid ability in effectiveIy combining resources and opponunitien in an efirt to provide produce. goods and services appropriate to the needs of the local community. and at the same time generating sufficient income to help both themselves. their family and the community in general.

This definition necessarily includes the entrepreneurïal activities of the informal sector and the largely micro-scale nature of entrepreneurship in developing countries.

The participation of the local population in the tourism industcy contributes to the balanced development of both the industry and the nation. Typically, however. the accommodation sector in most Third World destinations has been beset by foreipn representation. both multinational and independent. Some others have also assurned local status to avail themselves of perceived business opportunities. Within a post-colonial environment. as is the case in Barbados, the population ir likely to consist of indigenous peoples, citizens by naturalization. residents by application. as well as expatriates.

Therefore. in considering how, if at dl. tourism provides opportunities for indigenous entrepreneurid participation, and by extension. local development, a distinction needs to be made between those who purposefully locate themselves in the country to take advantage of recognized opportunities. and those who have been cultivated from within the country. 32

For this research the term indigenous entrepreneur refen to the Schumpterian entrepreneur who is a native (by birth and not by naturalization or residency) of the country in question and who directly or indirectly pmvides facilities or services primarily consumed by tourists, as appiïed to the accommodation sector.

3- 1.4 Tourism

TOU~S~is the world's largest industry. in 1994, for instance, world tourist arrivals were over 545 million with international tourism receipts of around US346 billion

(WTO, 1996). There is, however, no one definition of tourism that sufficiently captures the scope, breath and myriad of elements of the phenomenon. Smith (1988: 180) suggested that a single, comprehensive, and widely accepted definition of tourkm is beyond hope of realization. He further noted that "Practitionea must leam to accept the myriad of definitions and to understand and respect the reasons for those differences."

Definitions of tourism, while being quite varïed. have tended toward emphasizing essential characteristics of the phenomenon. such as its geographical dimension

(international vs. domestic); time away from home; mode of transportation; purpose of trip; and miles travelled (Gartner. L996:6). Generally, definitions of tourism are tailored toward a specific purpose or end use, such as technical definitions for tourism statistical data collection, or conceptual definitions for purposes of study (Burichart and Medlik.

L990:4 1). Leiper (1979). in reviewing many of the definitions of tourism, suggested that the content of most of them were either economic, technical or holistic.

Leipefs (1979:403) definition of tourism is specificdy pertinent in regards to the identification of the elements of the system of tourism-

. . .the system involving the discretionary travel and temporary stay of penons away fiom their usual place of residence for one or more nights. excepting tours made for the primary purpose of earning remuneration from points en route. The elements of the system are tourïsts. generating regions, transit routes. destination regions. and a tourist industry These five elements are arranged in spatial and functional connections. Having the characteristics of an open system, the organization of five elements operates within broader environments: physicai, cultural, social. econornic. political. technologicai with which it interacts.

For this research. the term mass tourism is considered and implied since it conveys the intensive nature of visitation to the Caribbean, as well as the scope and magnitude of supply-side elements, for example. accommodation. The term was best defined by Matthews (L978:3) as "the movement of large numbers of travellea from one country to another by means of mass transport. and this involves mass hotel accommodation, and above ail. mass selling." The terni international tourism ais0 connotes the movement of people from their country of residence to other countries, but not necessarily en masse.

Having defined the contextuai use of some of the key terms (development, entrepreneurship, indigenous entrepreneur. and tourism) in the research. the following sections go further and Locate these concepts within geographical and tourism contexts through a review of the relevant Literature on development and tourism-

3.2 The Geography of Development

Geography's contribution to the early literature on economic development had been confined to articles on the relationship between the physical environment and 34 economic development. the classification of areas using indexes of economic development. and the description of unique characteristics of an individual area (Keeble,

1967). Early geographical analyses of economic development were largely idiographical. therefore, unlike some other disciplines. such as economics, they faiied to establish generai similarities for the construction of geographical models of economic development-

Many of the early interpretations and models of economic growth were non- spatial (Keeble. 1967). Early economists were more generaiiy concemed with the temporal variations in economic growth and oniy later partidly considered spatial variation in development. However. an emphasis on the spatiality of development was evident in the work of Schumpeter, who though not necessdy concemed with variation over geographical space. expressed a time dimension in space in his writings. Perroux. on the other hand. argued that there was indeed abstract space in economic reasoning. He defined the three abstract economic space of the fias "plan space". "space defined as a field of forces", and "space as a homogenous aggregate" (in Bro~~eld.1975). Perroux. in a 1955 writing, also argued that growth. rather than appearing everywhere at the same time. is evident in points or "poles" of growth (Brookfield. 197591). Similarly, Myrdal

(1957) and Hinchman (1958) considered conceptual models of the development of spatial variation in economic prosperity and differential regional growth ( in Keeble.

1967). Myrdal cited "cumulative causation" and spatial interaction between the growing and stagnating regions. and in particular the "backwash effect*' experienced in slow growth regions. as explanations for differential regional growth. For Hirschman. growth 35 is necessarily geographicaiiy unbaianced since development primariiy occurs through

"master industries" (in Brookfield 1975:98). Huschman. for instance, developed the idea of "inter-industry linkages" and Merentiated between backward linkage effects and forward Wageeffects- the multiplier effect. However, unlike Myrdal's mode1 which assumes government non-intervention in economic development except for Iimited aid through governent policies directed toward encouraging growth in backward regions

(Keebie. 1967:259), Hirschman believed that regional development would require the intervention and influence of the State (in Brookfield, 1975:99), particularly in guiding resource allocation (Hunt, 1989:60).

In the 1970s radical geographers, using the model of development and underdevelopment popularized by Andre Gunder Frank in the 1960~~articulated the spatial variations of economic deveiopment. Dos Santos, like Frank. argued that underdevelopment in the peripherai countries was the result of such countries' subordinate involvement in the world capitalist systern- hanuelWallerstein, following

Frank. later offered a model of surplus transfer and a theory of unequal exchange which emphasized a geographical structure of an exploitative economic systern that develops the rnetropolitan core and underdevelops the periphery (ibid.). For Wallerstein, there existed a socio-spatial dialectical relationship between social (class) and spatial (core/perïp hery ) structures whereby "the spatial structure is subordinated to the social and viewed Iargely as a manipulation of space which does not affect class hierarchies" (Soja. 1980:222). In short, development geography oaly found full expression under the influence of Marxian social theory through some of the central debates in deveiopment studies such as the 36 constitution of the world econorny. the Third World. and the scaie and significance of industrïalization in the periphery (Corbridge, 1989:224).

In piace of studies which traced the diffusion of technologies down the centrai place hierarchy, geographers now concerneci themselves with a process of spatial disarticulation w hich tinked the production of regional imbalances in the Third Worid to the production of spatial divisions of labour in the metropoiitan core (Corbridge, 1989:225).

More recently, development geography has ken presccupied with issues such as global structures of exploitation and inequality, the spatial organization of peripheral social formations, and the state in developing counuies. However, explanations offered by classical Manüsm, as well as neo-Marxism- the articulation and analysis of the process of underdevelopment typically considenng social and economic action in the context of time and spaçe- were found to be wanting. Thus, some schotars opted to engage in post-Mdst discourse to address issues such as causality, determination. and conditions of existence. For instance, Corbridge (1989:238) notes that a focus on a post-

Mancian concept of causality is criticai to development geography, particularly in considering the recursive nature of social and spatial life in capitaiist and non-capitalist relations of productions. Post-Marxisrn therefore offers the development geographer the oppoaunity to consider concepts of development without the constrictions of models and theories. According to Corbridge (1989:247), the production of a post-Marxist development geography requires that the scholar:

1. understand the constitution and dynamics of a changing world system and pay close attention to its varied modes of accumulation and crisis formation in tirne and space; 2. examine the spatiality of the development process; to hold together the complex interplay of the local and the superlocal and to see in the joint production of place a continuing redefinition of the other; attend to the varied conditions of existence of capital accumulation; to take seriously the constitutive roles of class. gender. ethnicity, the discourse of geopolitics, and the envuonment, and to examine the bases of their transformation/reconstitution; describe those patterns of political and cultural mobilization through w hich societies in the periphery seek to understand and contest "the onset of modemity"; understand the rob of the state in the periphery; to examine its constitution and powen, and to investigate its capacity to mobilize and transfer resources; investigate the territorial. economic. and political possibilities and contradictions of socialist developrnent suategies; connect an anaiysis of welfm provision in the periphery with theories of justice and spatial equity; and hold together production and empiricai work in creative tension.

Since the mid-1980s some development geognphers have used the post-Marxian approach: "the new deveiopment geography". Soja's ( l98O:Z 1) observation that there is as of ye t no comprehensive analysis of geographically uneven development is also relevant today.

3.2.1 Developing Countries and Development

Dissatisfaction with the Eurocentric view of development precipitated the replacement of popular development paradigms. In the classical development paradigm. the development of capitalisrn failed to account for the underdeveloped state of countries.

The neotlassical paradigm espoused the spreading of benefits of development emanating from cornpetitive free trade activity which hinged on the specialization and division of labour. It was generally argued that al1 underdeveiopment is the result of iimited entrepreneurid spirit. However, Hirschman argued:

. . . that previous attempts to identiw dominant causes of underdevelopment in terms of the lack of a key factor. be it swings, entrepreneuahip. or skilled labour. had alî been disproved. each of these factors had been shown by experience to be latent in underdeveloped econornics (in Hunt, 1989:6O).

Latin American social scientists (Dos Santos. 1969, Sunkel, 1971; Frank, 1976) in recognizing that westem development thinking was the result of western experience and perception. argued that the application of such theories negated the historicd component of the Latin Amecican reality. Rather than punuing a specific theory of development such as that which saw the underdeveloped countries following the pattern of the industrialized developed countries (modemization theory). they considered the underlying causes of underdevelopment through a fwus on the iqerialistic domination of periphenl countries.

. . . to dependency theorists. the structures of colonialist and imperialist domination in the perïphery represent the points of departure for understanding the present picture of backwardness. Those structures, both historical and conternporary. include such things as slavery and the pattern of race relations that emerge. the monocrop plantation econorny with its emphasis on the wholescale export of raw and semi-finished products, foreign multinational corporations and branch-plant industries that drain the wealth and resources of the peripheral countries back to the rnetropole. and political arrangements that favour the (class) interests of those who are in control of such corporations (Allahar, 1989:86).

Similarly, the uniqueness of the Caribbean region was considered by West Indian economists who specificalIy addressed issues of econornic development as they related to geographical size (Demas, 1965). self-reliance and self-sustained growth (Thomas. 1973), and structurai and historical processes (Beckford, 1972).

Dependency theorists generally argued that dependence precipitated 39 underdevelopment and that extemal factors were the cause of underdevelopment as the overail structure of the world capitabst system either faciiitztted development or caused underdevelopment. For Sunkel(1973). it was more useful to consider the basic structural elernents resulting from an international capitalist system which created the state of underdevelopment (in Blomstrom et ai.. 198435). Frank and Hirschman generally agreed that, unlike earlier thinking, "underdevelopment was now seen as a continuous process rather than an original state. and capitalist penetration was singled out as the principal cause of underdevelopmentTT(Blomstrom et al.. 1984:40). Dos Santos ( L969). for example, argued that the economies of groups of countries become dependent as a resuit of the expansion and development of other economies.

Dependency theory has ken nndered less useful as a result of the stnicturd change in the global system and the increased inter-relatedness of economic systems globally. According to Frank (in Blomstrom et al.. 1984). a theory of interdependence and the precipitous f'lof depndency theory. was at no time more evident than during the oil crisis of the 1970s. In effect. the globalization of dependency theory captures the essence of the new economic order wherein countries no longer exist autonomously and as such,. are to varying degrees dependent on each other. Dependency theory has been applied to the analysis of international tourism. The following section on the relationship between tourism and development specifically considen how some development theories and concepts are applied in the tounsm literature. 40

3.3 The Relationship behveen Tourism and Development

Standard c1a.h~ regarchg the potential benefits of touism in developing regions are the accumulation of foreign exchange eamings. employment, and bac kward linkages for domestic and regionai diversification, However, tourïsm has kencited as "an ambiguous development strategy" due to its negative economic, socio-cultural, and environmenta1 impacts (Butler, 1974: Doxey, 1975; ErÏsman, 1983; Murphy, 1985:

Nettleford, 1976; Smith, 1977; van de Berghe et al. 1984; White, 1974). Furthexmore. it has been suggested that the high level of foreign owneahip and resultant repatriation of profits, as weU as the tremendous leakages due to importation tend to render tounsm an ineffective tool for economic deveIoprnent(Adams, 1977; Britton, 1980; Bryden, 1973;

HilIer, 1975; Matthews, 1978; Middleton, 1977; Perez, 1980).

The capital intensive nature of mass tourism requires input of fonign capital.

However, such inputs are not without the concomitant ills. Multinational corporations. through superior entrepreneurid skills. established networks and advanced technological facilities, dominate and controI much of the Third World tounsm industry. This dominance has also been identified as a strong factor which undermines the developmen t potential of peripheral developing tourism regions (Ascher, 1985; Britton. 1982; Ienkins and Henry, 1982; Matthews, 1978).

3.3.1 Tourism Development Theories

Essentiaily, three general theories from the development literature have been applied to tourism: development stage. diffusion. and dependency (Oppermann, 1993). 5 1

Development stage theory. pattemed der Rostow's (1959) five stages of economic development, is represented in the tounsm literature by evolutionary models (Butler,

1980; Miossec, 1977). Butier (~980)~~for instance. identified exploration, involvement. development, consolidation, stagnation. rejuvenation\decline as the six stages of the resort life cycle.

Difisionist theorists such as Hirschman ( 1958)- Myrdal ( 19591, and Friedmann

( 1966) advocated economic growth through the establishment of growth poies which would eventually cause further development as a result of "filtering" or "spread effect" sectoraliy and regionally. The concept of a "multiplier effect" also has been applied to tourism, sometimes with disastrous results. The Zinder Report (1969), for instance, seriously over-estimated the multiplier effect of . Bryden ( 1973). noted that projected multiplier rates are rarely achieved.

Dependency theory grew out of a dissatisfaction with the earlier theories of developrnent. Dependency is identified as "a situation in which the economy of certain countries is conditioned by the development and expansion of another country to which the former is subjecteci" (Erisman. 1983:341). The organization of international tourism in developing countries is such that the peripheral destinations are largely dependent on the metropolitm core.

Appropnating the core-periphery theory, tourism researchers have considered the relationship between the metropole and peripheral destinations. The use of the core-

'ButIer's six-staged reson life cycle is aIso akin to the product life cycle in the business mana,oernent Li terature. 42 periphery concept in the tourism literature. particularly as it applies to developrnent, is reviewed in the folIowing section-

3.3.1.1 The Coreperiphery Concept

The core-periphery theoiy simply States that centres of metropoles exploit perïpheries or satellites through the mechanism of unequal exchange. thus transfemng value [economic benefits] from the relatively underdeveloped to the relatively developed regions (Harrison. 1992:9). in the development Iiterature core-periphery concepts were examined by authors such as Myrdal (1969) and Friedmann ( L972). In tourism, one of the earliest papa which examined tourism using the core-periphery concept considered the spatial pattern of tourism movement from the urban areas (centre) to the countryside

(hinterland or periphery) (Christaller. 1964). Core-periphery theory has also ken used in the assessrnent of international tourism in relation to its socio-cultural, economic. and environmental impacts (Culpan, 1987; Hills and Lundgren. 1977; Hoivik and Heiberg,

1980; Husbands, 198 1; Keller, 1984).

Tourisrn in the Third World is seen as a new form of core-perïphery dependency

(Britton, 1982; Erisman 1983: Finney and Watson. 1975) which reinforces dependency or causes underdevelopment (O'Grady. 198 1: Perez. 1980). According to Bntton

Dependency cm be conceptualized as a pmcess of historical conditioning which alters the intemal functioning of economic and social subsysterns within an underdeveloped country. This conditioning causes the simultaneous disintegration of an indigenous economy and its reorientation to serve the needs of exigenous [exogenous] markets- 43

For Erisman (1983), a country fds into a position of comprehensive dependency when its three major subsystems- econornic, political, and cultural- are dominated by a foreign metropole. Economic dependency king the most saiient feature of this core-periphery reIationship.

Within an international tourism context, there is a singe global periphery which generaily stretches through , the Caribbean, East Afnca. India. Southeast Asia. and the Pacific Islands3. Core nations such as Canada, the , parts of Europe,

Japan. and Austraiia have iravel and invesünent interests within these peripheral regions

(Turner and Ash, 1975). On the domestic or national level, the core-periphery concept is characterised by one or more economicaily dynarnic, growing core regions within a country, and a slower growing. or stagnating periphery outside of these core regions. For example. core regions include urban centres as compared to rural areas, as weii as an economicaliy dominant island within a group of islands which make up a nation.

The tourism literature, using a core-periphery paradigm. indicates that the organization of international tourism creates a dominant and dependent relationship between the metropolitan economy and the penphery economy (Britton, 1982; Erisman.

198 3; Culpan. 1987). The extent to whic h indigenous entrepreneurid activity is considered within the dependency paradigm tends to be limited to a shopping List of business activities at the destination. Culpan (1987) produced an international tourism mode1 for developing economies in which he identified the peripheral sector as being

' Turner and Ash (1975) included Florida as part of the single global periphery. However. it cm be argued that Florida does not fit into this classification since it is within the core region (rnetropole) of the United States, 44 involved in food and drink, souvenirs, services, etc- Britten (L982) also considered the international tourism economy and discussed the differences in the range of entrepreneurial sophistication between core and perïpheral tourism areas intemationally and nationaily. He noted that the organization of mass toucism favours high initiai investment cos& and thus a dependency of foreign capital, thereby rendering local entrepreneurial involvement largely penp heral in hnction. In delineating the entrepreneurial activities within the periphery [sic] economy Britton referred to the local and economic elites (the formal and dominant sector) as king able to coordinate. construct, operate, and profit from the industry. The infodsector, on the other hand. is marginal to, and dependent on the dominant sector. Although both Culpan (1987) and

Bntton (1982) acknowledged the presence of indigenous entrepreneurial activity at the destination and the role of such activity in international tourism, the nature, scope and pattern of this activity were given very linle attention.

As aforementioned. the core-periphery concept is a common thread in many of the structural international tourism models of Third World tourism. The core-periphecy concept is also usehl in this research, at the national level. as it allows for an analysis of the spatiality and functionality of indigenous tourism entrepreneunhip in the accommodation sector. Indeed, geographen. king principally interested in space. have utilized core-periphery theory in considering tourïst space. 3.3.1.2 The Tourist Space Concept

The geographical study of tounsm is pcimariiy concerned with the spatial conditions as they relate to the movement of people in and between the tounst Iandscape,

Thus. the geography of tourïsm is largely concerned with the spatial relationship between tourist demand and supply; as well as the impact of tourism on the landscape/environment, society. culture, and the economy at the Iocal, regional, national and international levels. Perhaps Pearce stated it best when he noted that tounsm geography is largely concemed with the spatial expression of the relationships and phenornena arising out of the joumeys and tempocary stays of people travelling primarily for leisure or recreational purposes (Pearce (1979) in Mitchell. 1987: 192).

According to Mitchell (1987). geographen. in considering tounsm in a space and place context, use two models to examine the tourism landscape. One mode1 largely considen concepts of demand. supply and linkages. Demand studies in tourism for instance, have generally considered the bbcomplexinterrelations hips between personality . cultural values and socioeconomic class of an individual or individuals" in relation to their travel motivation (1987: 193). The second mode1 considers "the spatial and aspatial aspects of purpose, structure and Location to provide valuable insights into tounsm"

(ibid.).

Tourist space is defined in the tourism literarure in terms of "actual space".

"functional space", and "prceived space" (Mansfeld, 1990). According to Mansfeld

(1990:373), actual space refers to "the area which accommodates tourist activities and has very clear geographical boundaries": functional space is largely concemed with 46 generating and attracting areas, and the physical, cultural, social, economic, political, and technologicai environments prevailing in them; perceived space "deals with tourist space on a behavioural basis." Perceived space is each individual's (tourist or local) own perceived image of that space, "the level and quality of which are determined very much by ... socio- economic and cultural statutes." Ali three types of tourist space invariably impact on indigenous entrepreneurship and are critically examined in this research-

Mansfeld (1990:375) suggested that the 'Timction space" approach to defining tourist space should be adopted for practicaI assessments as "this approach forrns a ciear geographical framework" as it comprises both generating and attracting areas.

Models reiating to the spatial structure of tounsm have ernerged: tourist- travel; ongin-destination; structural; and evolutionary (Pearce, 19875). However, despite the considerable research emphasis on tourism and regional economic development, tourism offen no models for development (Mitchell and Murphy, 199 1:62). There are "structural" models which consider the impacts of international tounsm in developing countries by emphasizing the structural reiationships between origins and peripherai destinations

(Bntton, 1982; Culpan, 1987; Erisman. 1983; Hills and Lundgren, 1977). For instance, a structural model of Third Wodd tourism (Britten, 1982) identifies three levels in the organization of international tounsm: the rnetropolitan core, the dominant tourist sector and the smaiL-scale tourism sector within the periphed destination. The model reflects the dominant relationships between the metropolitan economy and the periphery economy, as well as the dominant sector and the small-scde tourism sector in the periphery economy. 47

An international model of tounst space considering regular concentnc zones and travel motives was proposed by Miossec (1977). This model was influenced by the geographic work of von Thunen. as weli as Yokeno (1968 in Pearce, 198 1). Basic geographical concepts such as distance-decay, centrai places. and multiple centres are featured in Miossec's model, thus embodying the concept of spatial hierarchy?

Essentially, this model consists of a core that is surrounded by four zones. Each zone represents the propensity for or level of spatial tounsm activiîy from the core given a number of variables. such as the individuai's mentai map of the tourist space. There may also be deformations of the hypotheticaliy concentnc zones due to factors such as tounsm price levels and major transport lînks (Pearce. 1987:9). Miossec (1976; 1977) also considered the spatial and temporal evolution of tourist development (in Pearce, 198 I), highLighting the development of the tourist region. According to Pearce ( 198 1:3), the participation of the local population in regards to the provision of supplies and the development of infrastructure withia the Miossec mode1 is implied .

The Literature on the spatial distribution of tourism activity is largely represented by research conducted on peripheral tourism regions such as the Caribbean and the

Pacific (Britton. 1980a. 1980b. L982; Hills and Lundgren, 1977). Britton (L980b). in analyzing the spatial distribution of tounsm activities for Pacific islands. found that the location of the tourist plant was directiy related to the colonial space-economy. Therefore factors which influenced the location of tourism activities were: the distribution of road,

'Pearce (1995) reviewed a variety of rnodeis in the tourism litentuce which considered aspects of the structure of tourist space. for example. the distribution of tourist supply, and found the cenml notion of these models to be spatial hierarchy- harbour and airport infrastructure; the restricted availability of freehold land; the distribution of urban centres with their higher order functions; and location priorities inherent in the tourist product. The latter factor not king directiy related to the colonial space-economy (Britten, 1980b:49)-

More generally, the spatial pattern of tourism on islands is influenced by the conditions of smaliness and insularity (Oglethrope. 1985; Pearce. 1987; Sathiendrakumar and Tisdell, 1989). Evidence of the spatial pattern is typically in the form of resort enclaves or a concentration of tourist accommodation in a small number of coastal localities or adjacent to the major urban centre and close to the international airport

(Pearce, 1987). Generally, "large scale foreign or metropolitan involvement in the provision of tourist plant is in part a function of the smaii size of island economies"

(Pearce, 1987: 157).

Pearce (1995) reviewed and evaluated a range of factors and approaches in the tourism literature and found that facton relating to accommodation. attractions. econo mic impact, and tourisu were used to define and describe spatial variations in tourism. The distribution of accommodations was often used. particularly to identiw types of tourist activity, primarily because of the researcher's ability to physically count the number of accommodation units. However, one major drawback to this approach is that the distribution of accommodation does not necessarily indicate actual demand, since day- tripping and visits to friends or private homes would not be measured (Pearce, 1995:83).

This research considers accommodations as a measurement of indigenous tourism activity. Other facton typically used in the measurement of spatial variation are rejected due to the unavailability and unreliability of information, as well as their inappropnateness for the purpose of the study. The foiiowing section examines enuepreneurship within a developrnent context. including indigenous entrepreneurial tourism activity.

3.4 The Relationship behreen Enîrepreneurship and Development

The role of entrepreneurship in development is covered exhaustively in the developrnent literature (Schumpeter. 1936: McClelland. 196 L ;Baumol, 1968;

Leibenstein, 1968; Ronen, 1982; Nafkiger. 1990). Entrepreneuahip, a dominant forrn of economic activity in developing counuies. is a significant variable in the developmen t process. Entrepreneurship in developing countries, both in the formal and informal sectors, is fundamentai to creating employment. increasing production and raising standards of living (Hailey, 1992; Kilby. 1988). Other contributions entrepreneurs make to the development process in the Third World include restructuring and diversiQing the economy; reducing the concentration of economic power through a wider dispersai of industry ownership; reducing market inefficiencies by rnaking the marketplace more dynamic and cornpetitive; improving the social welfare of a country by harnessing dormant. previously overlooked talent; and creating new markets (Ray, 1988 in Echtner,

1995: 123).

Entrepreneuahip is not benign business management or even the supply of funds for a business venture; rather, the entrepreneurial function lies in directing resources

(financial and physical) in new ways for the generation of profit (Elliot. 1983). Not unlike 50

Elliot, Chowdhury (1989) argues that the function of an entrepreneur lies not in risk- bearing (as in supplying funds) but rather in directing the uses of funds.

Entrepreneurship has not been a prominent main tourisrn research. Some case- specific work on indigenous participations has been done on the South Pacific areas such as Solomon Islands and Fiji (Bani, 1989; Kuve, 1989; Swaiiu. 1989), and in the

Caribbean (Lundgren, 1973, 1975).

Within the Caribbean context, entrepreneurship cm be better understood when placed in economic, political. and social contexts. Gaining an understanding of entrepreneurs and their activities has important implications for policymaking sectorally and nationaily. particularly as entrepreneurs continue to aid the development process by employing both human and physicai resources in increasingly valuable ways.

3.4.1 Some Aspects of Entrepreneurship in the Caribbean

Generally, within the Caribbean. a history of slavery, coloniaiism and metropole domination has created structural dynamics within the societies which mould the economic, social, and politicai reality of the region. Stewart observed that:

The Caribbean is the oldest and most intensely penetrated part of the periphery and in its history one can discem and map the maturity of the capitalist historicai system: from the crude and violent stage when the indigenous peoples were exterminated and wealth stolen and transferred to Europe; to the more organized control of the colonial systern and the development of an international division of Labour, accompanied by the explicit hegernony of European culture: and now to the more subtle forms of control in the post-colonial period. executed by the elites of post-

' The tem "indigenous participation", "IocaI involvement" and "small-scale development" are often used to refer to locai or indigenous entrepreneurid activities- colonid societies who have internaiized the dominating ideoiogy and culture of the metropole (Stewart, 1994:4).

The present entrepreneurid environment in Barbados rnirrors a hegemony of

planter class domination as a legacy of economic domination by foreign and local whites

continues within many sectoa in the economy. such as manufacturing, commercial,

agribusiness. and others. Unhice most of the eady planters in the Caribbean who desired

to return to Europe. Barbadian planten remained on the island and dominated the economic and political environment. Barrow and Greene (1979: 18) wrote the following of the planter class of that earlier period:

They became a well-rooted. cohesive group with an insuIar pride, conscious of and anxious to keep their inherited status. By means of various strategies, political. economic and social, this eliie separated itself from the lower ranks and maintained its power, property and prestige.

The dominance of the white economic elite group persists. Hilary Beckles (1989: 19) wrote:

The ownership pattern and the control mechanism of major businesses in Barbados are no guarded secrets. It is immediately obvious that the commanding heights of the corporate economy are controlled and rnanipulated by merchants and executives drawn from a white community that comprises less than five percent of the total population.

Issues OC race and class are central to understanding the patterns and structure of ownenhip and economic dominance in the ~aribbean? Danns (1994:44) noted that:

" Greene (1993: 14) wrote that class, race and gender constitute the structuring axes of the Caribbean society's reaiity- These issues. by extension. are also an integral part of the business environment which are addressed throughout the Iiterature on business and entrepreneurship in the Carïbbean (Barrow and Greene, 1979; Beckies, 1529; Ryan, 1992. 1994: Barcfay, 1992: Chadenon. 1993: Danns. 1994: Stewart. 1994) - In a region characterised by a colour class stratification order. access to resources was dehited by whiteness or nearness to whiteness- The great majority of the region's population is non-white. As a consequence. they were largely discouraged for centuries from becoming involved in entrepreneurid activity beyond a smaii scale?

In Barbados. for instance, the ptesence of what has been referred to by George

Lamming as a "geriatric white economic elite". continues to control the economy and effectively block the emergence of a vibrant biack entrepreneurid class. in spite of the presence of black political leadership. George Lamming wrote that in Barbados black politicians have ken unable or unwiiling to remove the proverbial "road block" as represented by the white economic elites.

Either they creep around it or beg permission to climb over it. but it has never been on theu agenda to knock it down. And they can't. They can't for the simple reason that they are hostages to its financiai patronage. Adult suffrage and the black composition of the political directorate have not succeeded in disturbing a profound conviction among black Barbadians that the white economic elite are the natural and most reliable custodians of that islanbs destiny. The Govemment govems but it does not de. This distortion of values is to be found in varying degrees throughout the Caribbean. But in Barbados you see this disease in its most acute fom (in Ryan, 1992:72)-

Historically, the white economic elite in Bacbados tended toward undermining the efforts of blacks in business by engaging in activities such as passing legislation to restrict small-scde informal economic activity (Downes. 19885 1) and fixing prÏces and over charging for goods, "thus driving many black businesses out of operation" (ibid.55). In many Caribbean nations. current exclusionary practices which undermine black

Throughout the Caribùean a local entrepreneurid class ernerged which was largely non-bIack and consisted of white. Chinese. Syrian-Lebanese, and East indian. entrepreneunhip appear to be primanly in regards to gaining access to capital for business start-up and expansion, Chaderton (1993) exarnined the reasons for the failure of

Barbadian business in the 1980s and reviewed the lending habits of lending institutions on the island of Barbados. She noted that "the banks have been attributed with an unduly high proportion of bIame by the businesses that were liquidated" (1993:9). Chaderton further noted that commercial banks, many of them foreign-owned, had banking philosophies and credit policies which were rigid and unsympathetic to the social needs of the local society, uniïke the indigenous banks whicti were a "iittie more responsibleV-

Similady, in Trinidad. Ryan (1992) considered reasons for the failure of the new black business group to sustain their initiai success and noted the foiiowing in regards to black businessmen's experiences with the banking system:

Many black businessmen complained that the old "inherent prejudices" continued to face them since it was assumed that they could not do business. Credit oficers and senior bank officiais, most of whom were white and foreign, regarded them as "poor risks" and treated them as such, often demanding more collaterai than was required of businessrnen belonging to other ethnic communities, especialiy those who were white. They thus experienced great dificulties obtaining start up capital or overdraft facilities frorn the established foreign-controlled banks. Much of what was loaned was short and for fixed investments rather than for working capital (Ryan, 1992:73).

Generdly, governments of the Caribbean have recognized that policies and prograrns are necessary to encourage entrepreneunhip in the wider population. 3.4.1.1 Structural Adjustment Policies

Entrepreneuahip is an important variable in development. hdeed, the need to develop local entrepreneurial talent in developing regions is weU-documented (OAS,

1984; Nabi, 1988; Poon, 1990). In fact, this is one of the policy recommendations of studies for government (OAS. 1984: LO, 1987; UN. 1990; Eigen. 1992). An early example of a Caribbean government's attempt to develop Iocai entrepreneurship may be found in Trinidad and Tobago. Tn the eariy 1970s. policies and structures were put in place to increase entrepreneurship. particularf y amongst Afro-Trinidadians, by the then mling potitical party, the People's National Movement (PNM). Prior to this time. foreign cornpanies, descendants of the white planters, the merchant classes. as weII as Indians.

Chinese. and Syrians controiled most of the econornic trade in Trinidad and Tobago.

People of African descent dominated the public sector (Ryan and Barclay, L992:xii). In effect. the PNM set out to shift the focus from a salaried state or private sector employment to owneahip of business. ostensibly by supportîng a people's sector and a national private sector. Thus, some of the structures established to provide financial. managerial and other services to the nascent black entrepreneurial class included. two banks (Workers' Bank and the National Commercial Bank), the Industrial Development

Corporation. the Development Finance Corporation. the Management Development

Centre, and the Agncultural Development Bank (Ryan, 199256).

According to Ryan (L992), there was a measure of success in the seventies as quite a few blacks made significant breakthroughs in areas such as the merchandise retail sector, in the service sector, in the professions, janitorial services. vduation. and small supermarkets. However, not uniike many other fim. "onlya few companies belonging to

the new black entrepreneur group survived the drastic downturn in economic activity that

charactensed the mid-nineteen eighties" (ibid.56).

In 1985, the Heads of Goverment in the Caribbean, in an effort to create a

developed and largely self-reliant region, agreed that the encouragement of

entrepreneurship in the agricultural, manufactunng, and service sectors was critical. The

strengthening of local and regional management skills. technology and entrepreneurship

in aii the sectors was identified as an important part of the strategy for economic

revitalisation. In recognizing the govemment's role in developing higher leveis of

entrepreneurship at small. medium. and large-scale levels. there was general consensus

that govemment must. among other things,

provide adequate infrastructure and other suppoaing services; undertake programs (rnost of hem involving heavy govemment expenditure in areas such as Education and Training)' to improve the quality of human capital. . . ; and ensure the adequate mobilisation and availability of venture capital, especidly equity capital (CARICOM Secretarïat, 1985).

However. a number of queries have been raised in regards to policies which would encourage and develop entrepreneurs and entrepreneurship. Nabi ( 1988). for

instance, questioned whether government can indeed use policy to actively encourage the development of entrepreneurs or whether entrepreneurship should simply be encouraged through policies that avoid placing excessive restrictions on thern.

'Education and training are often seen as imponant components in the developrnent of entrepreneurship- However, Leibenstein (1968) warned that while it may be possible to train individuals how to assess economic opponunities it rnay be dificuit to train them to spot such opportunities- 56

The extent to which suppoa structures have enabled black entrepreneurship in the

Caribbean, in the long term, is unclear. It would appear, however, that the mere presence of institutional support does not guarantee success in developing entrepreneurship.

Barclay ( 1992) noted that the results of a survey conducted through the Industriai

Development Corporation (IDC) in Trinidad on black micro-entrepreneurs showed that few utilised the services of development institutions. Stewart (1994: 1-2) also observed that in Tnnidad:

Attempts by the State in the past to promote self-reliance by putting in place institutional support to facilitate smail business operations have largely failed. Minority ethnic groups in the society, (for example. the Chinese, the Syrian-Lebanese, the Portuguese) have however excelied as entrepreneurs and continue to prosper without accessing State assistance.

Notwithstanding the larger Caribbean expenence, structural adjustment policies directed specifically at the tourism industry may aid in the development and encouragement of indigenous entrepreneurship.

3.4.2 Indigenous Entrepreneurship and Tourism

For Hailey (1992:7), indigenous entrepreneurship is an integral part of balanced development, not only because such participation is fundamental for promoting economic growth. but also because indigenous entrepreneurs help generate confidence in indigenous activities and a clirnate of greater self-reliance. The relationship between tourism, development, and indigenous entrepreneurship has been (peripheraily) addressed in the tourism literature, and to a lesser extent in tourism development theories.

Poon ( 1993). using the Schumpeterian approach. considered the Caribbean tourist industry, particularly aii-inclusive properties. and found that superior performance in the industry was rdated to the quality and imovativeness of managerial personnel rather than ownership or foreign presence. hdeed, she suggested/recommended that flexible specialization. a strategy of permanent innovation associated with synergies. systems gains and scope economies. be applied to Caribbean tourism (ibid.). Given the nature and realities of indigenous tourisrn entrepreneurs in the Caribbean. Poon's (1993) concept of fi exible specialization may only have immediate application in the fomal sector where simiiar types of arrangements akady exist However. access to capital and adequacy of training, preconditions for flexible specialization. seem to be immediate challenges for indigenous tourism entrepreneunhip in the peripheral sector. Furthemore, Poon has failed to consider the class structure of the Caribbean society and how such socio- economic and class Iegacies are mirrored in the tourism landscape and are indeed evident in the disparities in entrepreneurial acumen and competency? Mandle (1982) suggested that the class structure of the society, in addition to the historical experiences of the people. influence the society's ability and desire to be innovative. He noted that

. . . the capability and motivation to intmduce new methods of production are influenced by the class structure of society. The mere presence of a group of profit-seekers is not sufficient to ensure extensive technological advance. Whether profit-seekers engage in technological innovation or not depends upon the extent to which both the ability and incentive to do so is sufficientiy present ( l982:37).

"Barrow and Greene (1979) have discussed the nature of small business in Barbados as represented by a well-rooted, cohesive and insular group of Whites and historically dispossessed and landless Blacks. They wrote, "Given the Iack of generation of experience and family cooperation in business that chmcten'ze the East Indians and the white Barbadians, it is understandable why businessmen of black and mixed ethnic groups required the services of the SBDP [Small Business Deveioprnent Project]) mos t". 58

Aithough much of the tourism literature is devoid of expiïcit analyses of indigenous entrepreneurs, the entrepreneurial function is implied in some of the tourism development models (Butler, 1980). as well as in some of the work that has been done on developing regions (Lundgren, 1973, 1975: Bntton. 1980; CuQan, 1987). partïcularly on the informai sector (Wahnschafft. 1982; Crick, 1992; Kennath and Thomas, 1992;

Oppermann, 1993; Sofield, 1993)-

Tourkm development theories that have implicitiy addressed the local entrepreneurid function in Third World tourism may be categorized as development stage t heory (Butler. 1980). diffusion theory (Bryden, 1973). and dependency theoiy (Britton.

1980a. 1980b. L982). Butler (1980). in considering the stages of development of the tourist destination suggested that Locals tend to have entrepreneunal involvement in the tounst industry at the exploration. involvement. and decline stages of the tourkm area cycle. The general pattern of local involvement is characterised by a small number of local individuais being involved in the provision of Limited services to visitors which were initially provided for locals during the exploration stage. Local entrepreneurhl activity increases during the involvement stage when new facilities are provided or existing facilities converted. And finally. local involvernent tends to peak again in the decline stage when foreign investment exits-

Generally, routes to entrepreneurship are to a large extent influenced by access to capital and occupational adoreducational expeciences (Williams. Shaw, and

Greenwood, 1989)- Williams et al- (1989) considered the social routes to tourism entrepreneuahip in Comwail, England and found that the various routes to 59 entrepreneunhip were also dependent on the structure of the local tourism economy.

They mersuggested that the following specific factors would be influentid in tounsm entrepreneuahip: a) the existing enterprise structure of the local tourist industry, b) the provision of entrepreneurs from other branches of the local economy as a source of entrepreneurs. and c) the larger national economy, especialiy for intemgionai relationships (ibid). The routes to entrepreneuahip appear to be standard intemationaily. paaicularly for formai sector entrepreneurid activity. Hailey ( 1992) concun that indigenous entrepreneurship is influenced by access to finance. skiils. as weli as exposure to business generally. He also suggests that as in the Fijian case. the impact of past history and present politics may dso play a significant role in indigenous entrepreneuahip in the developing world. Entrepreneurs also frequently corne from

"groups which have fairly extended families who are often engaged in trade" 'O or are indeed "disproportionately recniited from elements of the population that in some sense or other are looked upon as 'outsiders"' (Leibenstein, L968:8 1). Leibens tein explained that "outsiders" are generally restrïcted from econornic opportunities, therefore for them the opportunity costs as entrepreneurs are lower than chat of "insiders" (ibid.).

The extent, level, and pattern of indigenous tourism entrepreneurid involvement in destination areas have ken infiuenced by historicai, developmental, and social factors.

For instance, a destination having a legacy of colonialism may exhibit an indigenous entrepreneurid pattern unlike that of other Third World destinations. Sofield (1993:729),

"' Poon (1990) used examples of the Benetton family in and the Issa family in lamaica- The Issas* family involvement in tourism. for example, goes back to the 1940s. John Issa now runs the Superclub hotel chah 60

in considenng indigenous tourkm development in South Pacific countrïes no ted that:

. . . the legacy [of colonialism], may .. . place a senes of formidable obstacles in the path of indigenous communities and individuals attempting to participate in various forms of development, despite post- independence policies and schemes designed for just such participation.

The legacy of coloniaiism has influenced the nature of entrepreneurid

involvement in some Carïbbean tourism destinations". For example, in Barbados and

Antigua (Butler, 1992), a non-indigenous, but local people, onginally from the planter

class and who have since become involved in commercial ventures, are typically the

individuals who become entrepreneuridy involved in the tourist industry in the euly

stages (involvement) of the cycle. This political and economic elite group rnay represent

Iocd involvement in the industry, but their role in the process of development is unlike

that of the indigenous entrepreneur since they tend to have a non-local focus as is

witnessed by their off-shore banking practices. This group is represented in this study.

Another exception to the nature and pattern of local entrepreneurship as descnbed in the tourism development cycle mode1 rnay be found in the (Weaver,

1990). In the Cayman IsIands local involvement did not conform to the mode1 as described, instead there was very Little local participation in the early phases of the involvement stage and increased participation during the development stage. The Iack of

Local capital and entrepreneurs at the early stages of tourism development in the Caymans was attributed to the absence of a plantation agriculture systern as well as a dependency

" It has been suggested that other factors such as politicai status. language, population, general economic levet of development and location influence the nature and pattern of tourism development (Butler, 1992). status (Butler, 1992)-

Within the development stage tourkm paradigm, local involvement within developing destinations would appear to be confined to the activities of the formai sector.

Given the nature of the developing country economy, a traditional First World appraisal of development which ostensibly considers enclavic structures seems shortsighted and

Eurocenuic. Informal sector activities are part of the real wortd of less developed countries and s hould be seen more as a centrai part of their overall economies and crucial to their functioning (Abel-Fadii. 1992).

Indigenous entrepreneurship is evident in the ancillary services that support the tourism industry. For instance. Sobers (1997), Director of Research and Statistics at the

Caribbean Tourism Organization (CTO). noted that 'Tourism in Barbados is being led by the ancillary sector which is more vibrant." Other authon have observed the important role of ancillary services in the development of indipnous tourism entrepreneurship

(Holder, 1993; Poon 1988, 1990. 1993a). Indeed, Holder (L993:WQ noted that "These are the services that provide the easiest entry into the tourkm industry for indigenous entrepreneurs." The following section considers how the benefits of tounsm are diffused.

3.4.2.1 Diffusion Theory

The core concept of diffusion theory in tourkm is that growth and development will multiply and "spread" frorn most developed to less developed areas (Opperman.

1993). sectorally and regionally. This concept, referred to as the "multiplier effect" within the tourkm literature. irnplicitly addresses the concept of tocd\indigenous entrepreneurship in developing countries, aibeit such activity is largely in the formal

sector. The npple effect outward of the tourist dollar is iimited due to the structure and

organization of the industry (Bryden, 1973; Britton, 1982) which does not facilitate

widespread development. In considering tourism on lamaicars Nonh Coast, George

( l987:î 1) noted that:

,,.the tourïst space needs to be eniarged. Tourists must be encouraged, and enabled, to go off the beaten track to the mountahs, the inland historÏca1 site, the agricultud village, and other under-utiiized tourkt sites and locations- There must be a deliberate and imaginative campaign that focuses on the unorthodox if the tourist dollar is to have greater impact on the local rural economy-

Increasing inter-industry linkages within such sectors as agriculture and manufacturing are seen as diffused benefits of tourisd2. The benefits are usually couched in terrns of increased employment (labour), and increased production; however, entrepreneurid activity in the formal and informai sectors, as well as within other production sectors such as craft production, is also a legitimate spin off from tourism.

in one of the earliest works on local entrepreneurid response to the tourist industry. Lundgren (1 973) considered tourism entrepreneurship in the Caribbean and found that hotel-generated demands were met by various econornic secton, particulÿrly the food-supplying sector. He noted that while the potentid for entrepreneurial interaction

(demandlsupply linkages) would most Iikely be greater at an early stage in the development of the supply sector, the possibiiities for such linkages with locai

" Holder (1993) noted that the Caribbean has failed in supplying the tounsm sector with goods and services produced in the Criribbean. 63 entrepreneurs are reduced by their ability io meet supply demands l~cally.'~Two years later Lundgren (1975) noted that there was considerable entrepreneurid interaction in lamaica's North Coast as a result of multiplier generated backward and forward Iinkages at work in that tourist ind~stry.'~He identified two groups of panicipating entrepreneurs involved in inter-sectorai transactions as the hotel industry entrepreneur, and the supplier entrepreneur which include the supplier producer and the production-higgler. Lundgren's

( 1975) work stands out in the tourism fiterature because it is one the earliest pieces of work that emphasized the informai sub-economies as well as informal activities."

Economic Dualism

indigenous entrepreneurship and economic dualism have rarely been the focus of tourkm research. Crick (1992), for instance, considered the role of the informal tourisrn sector in a Sri hkanvillage and concluded that although international tourisrn creates many essentially demeaning roles, particularly for the poor, the sporadic income received is critical for their survival.

Kennath and Thomas (1992) in their examination of the spatial dynamics of

'' Gomes (1993) exarnined the integration between tourism and agricuitural deveioprnent in the Crirïbbean and noted that while the probtem and its solutions have been debated for at least three decades no viabIe approac h has emerged which addresses demandkupply cons traints- Indeed. there continues CC, be a lack of confidence in the quality, reliability, and pnce competitiveness of local products (Holder, 1993)-

'" Research on the North Coast was conducted between 1969-7 1 when there was high optimism regarding the strong multiplier effect of tounsm, particularly in the Caribbean, as was evident in the in famous Zinder Report, Other studies have found there to be poor linkages with other economic sectors (Lewis, 1979). Therefore. the extent to which these findings reflected temporal and spatial components is unclear-

Is The distinction between informal sub-economies and "focmal" and "informal" types of activities is made by Abel-Fadil(1992). 64

formai and informai sector development within the resort of Sousa, Dominican Republic, found that the expansion of the tourism-related formai sector resuited in the subsequent contraction of the tourism-reiated informai sector- Moreover, the dispiaced group was not absorbed by the expanding formal sector.

Some other authors have indirectly considered the activities of the infomal sector in developing peripheral regions, pacticularly by examining the colonial context within which tourism exists (Britton, 1982; CuIpan, 1987). Britton (1982), in examining the

South Pacific region, concluded that petty artisans in the periphery economy wiil receive far less of the profits from the system due to the dynamics and hierarchical structure of international tourism.

The greatest commercial gains . . . go to foreign and local elite interests. The majority of locals can oniy participate in tourism through wage labour employment or srnail. petty retail and artisan enterprises (Britton, 1982:355).

Economic developers generaiiy regard informal sector activity as the training ground for small- and medium-scale entrepreneurs. According to an OAS report (1984). not only do the small businesses in the tourism sector provide indirect employment but they also serve a very useful development role in helping to direct and promote the entrepreneurial drives of the local population, thus fostenng the growth of a management and entrepreneurial class. It is noteworthy. however, that an UN document (1990) indicated that most informal activities do not graduate into formal businesses because of

Iack of management skilis. technical support and the necessacy financiai resources.

Tourism in developing peripheral countries can potentidly create economic 65 opportunities for the growth of effective inàigenous entrepreneurial activity. An understanding of the present entrepreneurs and their activities. facilitated by a classification or typology of them. may indicate how tourism cm bring about greater local bene fits and development,

3.5 Typologies in the Tourism and Entrepreneuahip Literature

Typologies or classifications of demand and supply are an integral part of geographic tourism research. Early examples of demand classification were done by

Wolfe (195 1) who in considenng the Toronto vacation-recreation hinterland identified two classes of visitors to Wasaga Beach as cottagers and transients, Cohen (1972) classified tounsts as "institutionalized" or "non-institutionalized" and further as drifters, exploren, individual mass tounsts, and organized mass tourists. Plog (1974) classified travellers as allocenuic. midcentric. and psychocentnc.

Gunn (1972) classified the place of supply by dividing tourkt regions spatially and functionaily into five basic elements: (L) a transport system linking a region or complex with its market; (2) an entrance point or points where information and directions are dispensed; (3) and urban settlement that provides goods, services, facilities. and recreation attractions; (4) sites and facilities providing a wide variety of recreation opportunities; and (5) a transit network connecting the gateway, community, and recreation clusters-

Much of the classification in the tourkm literature is spatial. descriptive or functional (Mitchell, 1987: 196). Pearce (1992: 19) considered the types or processes of 66 tourism development in the tourism literature and found that most typologies are in regard

As in other fields of tourism, the typology literature is fragmented. lacks cohesion, and is without much sense of common purpose and central direction, A major reason for this is the mdtifaceted nature of tourÏsm which makes any comprehensive analysis or cIassEcation very diff~cult.. . . (Pearce. l992a:2 1).

A wide range of variables has been used in the classification of tourism: facilities. location. developerdow ners hip, development process. markets and marketing, and impacts (Pearce. 1992:21). However, it would appear that no extensive typology has been done on the entrepreneur. Some classification, however. has kendone on ownership of tourist development with a focus on type and characteristic of accommodation. Haider ( 1985), for example, classified hotels in Tobago by owners hip. with respect to the nature and scale of the development, and showed that Iocals ownedmanaged the smaller properties such as the "economy class hotels" and the smaller guest houses (in Pearce, 1992a:gO). Rodenburg ( 1989) considered local and foreign ownenhip in Bali, by scale of the enterprise, and noted that the nurnber of entrepreneurs varies inversely with scale. and local ownership was far greater in smail "'craft" enterprises.

Attempts to classify the entrepreneur are prevalent in the Iiterature on entrepreneurship. Variables such as personal characteristics and behaviour traits have been used. Meredith (1982), for example, suggested a working profile for entrepreneurs 67 or potential entrepreneurs based on the following characteristics: self-confidence; task- result onented; risk-taker. leadership; originality; and future-oriented. He further categorized the "risk-takers" as "practical" entrepreneurs who take reasonable rïsks that are generally within the confines of their persona1 control. Entrepreneurs who are

"highl y-mo tivated" are considered moderately high ris k-takers w ho are highly creative and innovative.

McCleliand (1966) considered the characteristics of entrepreneurs as reIated to their need for achievement and found the following three characteristics: (1) a desire to accept responsibility for soiving problerns, setting goals and reaching those goals through their own effort; (2) a willingness to accept rnoderate risks. not as a function of chance. but of skill; and (3) a desire to know the outcornes of their own desire (in Bull et al..

Low and MacMillan (1988). in reviewing the Iiterature on entrepreneunhip, concluded that by virtue of the nature of the entrepreneur. there could be no adequate and consistent categorization, They noted that:

...being innovators and idiosyncratic. entrepreneurs tend to de@ aggregation. They tend to reside at the tails of population distributions. and though they may be expected to dser from the mean. the nature of these differences are not predictable. It seems that any attempt to profile the typicai entrepreneur is inherentiy futile (Low and MacMillan. 1988: 148).

RumbaIl(L989: 129-135) contended that contrary to conventional wisdom, there are patterns in entrepreneurs' broad approach to business and proposed the following seven types of entrepreneurs:

1. Start-up artists (start a lot of enterprises) 2, Deal-makers (love to make deals) 3 . Maestros (experts in their field) 4. Niche players (pick a niche and mine it effectively for the long haul) 5. Super managers (buy companies using a lot of debt) 6. Conglomerateua (quintessentiai business people) 7. Visionaries (set themselves extraordinary ambitious goals).

In considering entrepreneurs in the Caribbean, Dams (1994:43) created distinctive entrepreneurid types in the anglophone Caribbean: the expatriate entrepreneur. the commercial entrepreneur; the state entrepreneur; the farnily entrepreneur; and the guerilla entrepreneur. His categorizations. to a large extent, reflect the historical uniqueness of the region. panicuiarly the key roie the colonial state played

"in inhibiting the emergence of indigenous entrepreneunhip" (ibid.).

The study of entrepreneurship is in its embryonic stage (Bygrave. L989). The paucity of research on the subject in the tourism literature is therefoce not surprising.

Furthemore, the absence of a dassification of indigenous tourism entrepreneurs in the general entrepreneurship literature or tourism literature is expected.

3.6 Summary

This chapter established the theoreticai foundation upon which the research is stnictured. At the outset of this research. it was noted that entrepreneurship is a significant variable in the process of economic development- Development however. is not just about material bettement. Other objectives of developrnent include the provision of opportunities for individuals to acquire skills and to develop their mind. Development, whether in regards to econornic or social factors. is temporaiiy and spatially discernible.

Economists, rather than geographers, first contributed to the discourse on development 69 by emphasising the temporal variations in economic growth and the spatiality of development. Radical geographecs. using the mode1 of development and underdevelopment. later (1970s) artïculated the spatial variations of economic development using Marxian social theory. More recently (L 980s). development geography, considering post-Mamian concepts such as causality, has set aside development rnodels and theories in addressing development

Within a developing country context. Eurocenvic development paradigms were abandoned for explanations which considered the historical cornponent of developing countries. Rather, dependency theorïsts considered the underlying causes of underdevelopment by focussing on impenalistic domination of peripheral counuies.

The notion of domination of the periphery (dependency theory), as well as genenl theories from the development literature (development stage, and diffusion), have been applied to tourism. However, it is the core-periphery dependency concept that many authors have used in considering the structure of international tounsm in peripheral regions/destinations. Other applications of the concept are evident in models which emphasize tourkt space and spatial hierarchy. In structurai international tounsrn models where the core-periphery concept is utilized. greater ernphasis is typically placed on the core or universal elements of the phenornenon being investigated. That is. the dominant core structures and mechanisms of international tourkm are given criticai consideration.

The nature of the peripheral elements. such as the nature of locai entrepreneurid activity, is often overlooked or given bnef treatment.

Entrepreneurship in the Cacïbbean is best undentood when placed in a historïcal 70 context. In Barbados, for instance, the enirepreneurid environment reflects historical planter class domination in many sectoa of the economy. In many Caribbean countrïes. for varying reasons, there has kena sluggish emergence of a local black entrepreneurid class. Caribbean governments have provided structurai support to encourage a local/indigenous entrepreneurial class. However, the extent to which structural support has enabled entrepreneurship is uncertain. fhus. further investigation into the nature and scope on indigenous enuepreneurial activity is suggested-

The peripheraiïty of indigenous entrepreneurship is mostly suggesred in the development and tourism literature and therefore the confirmation of peripherality is pertinent and valid. This research, therefore. pays particular attention to the peripheral elements in the application of the core-penphery concept to indigenous entrepreneunhip.

In this sense, a contribution is made to knowledge. The folIowing chapter outlines how the investigation into indigenous entrepreneurial activity in the accommodation sector was conducted. C&APTER 4

DESIGN OF RESEARCH

4.0 INTRODUCTION

The aim of this chapter is to descnbe the research process and to identity the techniques used in analysis. The method of inquiry is outtined, the units of analysis are described, the approach to data collection is reviewed, and the analysis techniques are discussed,

4.1 Itesearch Questions

In considering how. if at dl. tourism is stimulating indigenous entrepreneurid involvement in the accommodation sector, some of the questions that are being addressed are:

Are indigens utilizing the opportunities that tourism presents? Who is responding to the apparent opportunities? What are the nature and scope of their involvement? How are indigenous entrepreneurs king assisted andor encouraged?

It is hypothesized that indigenous entrepreneurship in the accommodation sector is peripheral in location and function. 72

4.2 Method of Inquiry

The research questions and hypothesis are considered using the triangulation approach: qualitative/quantitative and datahethodological triangulation- Triangulation is the use of a combination of methodologies in a single study. It is described as "a powerful solution to the problern of relying too much on any single data source or method and thereby undermining the vaiidity and credibiiity of findings because of the weakness of any single method" (Patton, l987:6 1)- However. some authors caution that triangulation does not necessarily increase validity but adds "breath and depth" to analysis (Fielding and Fielding (1986) in Berg, 1995246) and "reveals dinerent aspects of what is king scudied" (Patton 1980:33 1).

Both qualitative and quantitative strategies are applied in this research. The qualitative approach provides for exploration, discovery and inductive logic, while the quantitative approach allows for the quantification of the empirical facts. Berg ( 1995:7) wrote:

Qualitative procedures provide a means of accessing unquantifiable facts about the actual people researchers observe and taik to . . . As a result, qualitative techniques dow researchen to share in the understandings and perceptions of others and to explore how people structure and give meaning to their lives.

In essence, both qualitative and quantitative strategies provide for a holistic picture of the eiements in the study.

The data collection strategies employed are "data triangulation" and

"methodological triangulation". Denzin (1989:237)explained both forms of 73 trïangulation: data triangulation is used when the researcher explicitiy searches for as many different data sources as possible that kar upon the events under analysis; methodologicai uiangulation is the use of multiple methods (interviews, observations, questionnaires, and documents) to study a single problem. In short, methodobgical triangulation ''permits the evaluator to combine strengths and correct some deficiencies of any one source of data*' (Patton, 1987:60)-

The qualitative data coilection techniques included person-to-person standardized interviews using a smcrured, multiplechoice questionnaire, unstmctured interviews, as weil as on-site observations of accommodations. Quantitative data and other tourism statistics were secured from govemment and tourism agencies and organizations. The quantitative technique, multidimensional scaling, was used to analyse the data.

4.3 Units of Analysis

During the initial phase of the study the researcher set out CO assess the appropriate units of analysis by carrying out preliminary observations and data collection in the field. The specific purpose of the preliminary fieldwork was to ascertain the generril location, distribution, type. and quantity of indigenous tounsm entrepreneurid activity.

This explored the logistical feasibility of conducting research on al1 indigenous tourism enterprises and services. It also allowed the establishment of the extent, complexity, and spatial pattern of indigenous entrepreneurid tourism activity in the study area. A large formal sector population would have suggested confining the research to the formal sector. 74

4.3.1 Sampling S trategy

Pnor to arrïving in the field (June, 1994). a iist of 477 narnes and addresses of tounsm facilities and services, such as accommodations, restaurants. nightclubs, craft shops, water sports enterprises, and car rental agencies, was secured from the Barbados

Tourism Directory' of the Barbados Board of Tourism (BBT). It was intended to have tou~srnofficiais from the Barbados Tounsm Authocïty (BTA)identiQ the indigenously- owned tourism facilities and services from the list of names and to deliver questionnaires to those Locations. Completed questionnaires were to be picked up a week after delivery.

It was also planned to pre-test the questionnaire to ferret out ambiguous questions and to ascertain whether the type of information king sought would be obtained.

Upon arriva1 in the field the Barbados T~urismAuthority (BTA) was visited.

Rather than using the Barbados Tourism Directory to identiS, the indigenously-owned facilities and services, the tounsm oficial promised a revised listing of hotels, water sports and beach vendors. A general discussion with the tourism officiai reveaied that the entire population of indigenously-owned enterprises and services could not be researched given the lirnited research time and budget. Additionally, the lack of private transportation meant a reliance on the public transit system which diminished the ability to visit large numbers of subjects in different Locations. As a result. it became necessary to lirnit the sample size.

The accommodation sector was chosen as the area of research since

'The Barbados Tourkm Directory was undated: however. it was the most reccnt publication. Note: The Barbados Board of Tourism has been renarned the Barbados Tourism Authority- 75

'~ccornmodation**is the most widely used rneasure in researching of spatial variations in the tounst industry. Accommodations are also more easily identifed and located (Pearce,

1995:83). In addition, statistics are generally available on the accommodation sector as accommodation is "one of the more visible and tangible manifestations of tourisrn".

Moreover, "as a measure of impact. it is dso ceasonable. given that expenditure on accommodation usuaiiy accounts for one-third to a half of a tourist's budget and that provision of accommodation plant contributes a similar or greater proportion of tounsm investment in most casesW(ibid.)-

While awaiting the revised list of tourism facilities and services, the questionnaire was pre-tested on two non-indigenous hoteliers and one indigenous owner of a beach snack outlet. The outcome of the pre-test was significant in regards to time management.

The length of time allocated for each interview would have to be extended as the entrepreneurs appeared to be fuUy prepared to discuss their situation at length. Also. in the interim. an officid of the Caribbean Tourisrn Organization ((310)perused the

Barbados Tourkm Directory and identified the indigenously-owned accommodations.

The revised (1994) list of hotels and other tounsm-related facilities and services, in which the indigenously-owned accommodations were identified by the BTA tounsm official. was reconciled with those indigenously-owned accommodations identified by the

CTO officid. Some of the hotels. both foreign-owned and indigenously-owned. were absent from both Listings due to closures. extended renovations. new ownership or new hotel openings. A further identification of indigenously-owned accommodations was made from the revised listing by an official at the Barbados Development Bank who is responsible for loans in the accommodation sector.

4.3.2 Research Subjects and Units

The subjects and uni& king researched are the indigenous entrepreneurs (owners)

and their place of business-in the accommodation sector in Barbados. However, the

ownenhip pattern of the entire accommodation sector (corporation. foreign. local and

indigenous) is implicitly considered as it provides the contextual environment for

examining the study group.

The indigenous owners are differentiated from indigenous managers in t hat

managers do not conform to the exclusionary definition of entrepreneurship. Elliot

(1983) wrote that entrepreneurship is not benign business management or even the supply of funds for a business venture; rather. the entrepreneurid function lies in directing resources (financial and physical) in new ways for the generation of profit. Sirnilarly, ownenhip is not entrepreneurship. Chowdhury (1989) argued that the function of an entrepreneur lies not in risk-bearing (as in supplying funds) but rather in directing the use of funds. However, within the context of the field research, the concepts entrepreneurship (entrepreneur) and ownership (owner) were considered synonymous because an owner could have been objectively identified whereas the identification of an entrepreneur at once begged a subjective evduation. Both terms have been clearly differentiated from simple hotet management The rationaie for this is that hotel owners/entrepreneua may be reasonably diflerentiated from hotel managers by vinue of the greater risks involved in ownership. The Schumpeterian understanding of entrepreneurship will be applied to the other portions of the research. That is. the entrepreneur whose hinction is to reform or revolutionize the pattern of production- introducing new combinations from some old combinations.

The subjects of the research were €Tt contacted by telephone. The researcher was identified as a Ph.D. student from the University of Western Ontario, Canada, conducting research on indigenous tourisrn entrepreneurship in the accommodation sector- The researcher then confirmed the subjects' indigenity and asked for an appointment to interview the subject. The subject was assured of the confidentiality of the research and the final report (Appendix 2). To insure this confidentiality the names of the hotels and the narnes of the owners have been excluded from the dissertation?

Sixty-four units of accommodation were identified as indigenously-owned. The units of accommodation include hotels. apartment hotels, apartments, and guesthouses.'

The categorïzation of accommodation followed the hotel groupings used by the Barbados

Statistical Service (Appendix 3). Generally. hotels offer a full complement of services and facilities such as eating and drinking facilities and laundry. Hoteis offering simiiar services, but with fewer than ten rooms. are grouped as guesthouses. Apartment hotels have self-contained units and provide some of the services and facilities of hotels (e.g. communal dining facilities). Apartments also have self-contained units. but provide no

'~nformationobtained from pubiished or public documents have ken included in the dissertation-

'Other fomis of indigenously-owned accommodation exist in the form of villas. pnvate residences and other accommodation usai by both tourists and raidents Private unrecognized accommodations. which account for approximtety 17% of courist expenditure (Barbados Statistical Service. 1995) rnay represent a sizeable portion of tourist accommodation that is indigenously-owned. In effect. a shadow economy exists which undermines the ability to accurately assess the extent to which mass tourisrn is stimulating enuepreneurial involvernent in the accommodation sector. 78 dining facilities on the prernises.

There are sixty-one owners for the sixty-four indigenously-owned properties.

Three indigenous owners each owned two units of accommodation. One indigenously- owned accommodation was in escrow. Forty (66 percent) of the indigenous entrepreneurs and 41 indigenously-owned accommodation units (64%). representing 1273 hotel rooms

(57%),were used in the study, The remaining twenty-one indigenous entrepreneurs were unavailable or declined to be interviewed. Guesthouses, dong with the associated entrepreneurs were not included in the study because: 1) the researcher chose to intenriew this grouping only if time permitted. and 2) the grouping had only two entrepreneurs and ten rooms and was deemed to be irrelevant.'

4.4 Data Collection

In this study the following research methods were used: a structured. multiple- choice questionnaire was used in person-to-person standardized interviews. on-site observations of accommodations, and government, tounsrn, and other documents. Due CO the new sample size, the researcher revised the data collection strategy.

htton (1990: 184) nored that in qualitative inguiry there are no niles on sample size. "Simple size depends on what you want to know, the purpose of the inquiry. what's at stake, what will be useful, what will have credibility. and what can be done with available time and resources." There is a need for geographers to consider research at various scaIes Qualitative research which considers a smali but representative sample of indigenous tourism entrepreneurs is important and relevant as it contributes to knowledge within the discipline and has utility and value for the tourism industry. 4.4.1 Questionnaire

A structured. multiple-choice questionnaire was used (Appendix 4). The questions were subdivided into four groupings so as to address the four research questions (Section

4.1) which are generaiiy concemed with the identification of the indigenous entrepreneur and the nature and scope of his/her involvement in the tourism industry, as weil as sorne aspects of structural support through govemrnent assistance.

Demographics and ownership- to identiw the subject and the accommodation: Training, education. and experience- to establish the entrepreneur's educationai and entrepreneuriaümanageriaibackground; Investment- to establish the source of initial capital. loan procedures, and planned growth for the accommodation; Government assistance in enuepreneurial development- to establish awareness and use of programs. opportunities, and govenment assistance.

Two other subdivisions, "source of supplieslgoods" and "producrr- manufacturer/supplier" are attached to the questionnaire. The questions were to be used if the population of indigenous tourism entrepreneurs was used as subjects.

A stmctured. multiple-choice questionnaire was used as it is an effective method in directing/guiding the interview. Furthemore. by offering the interviewee multiple responses helshe is subtly encouraged to give further consideration to hisher response.

However, the shortcoming of this approach is that the identified choices may unduly influence the interviewee's responses. For instance, an interviewee rnay find it easier to select one of the identified choices rather than to articulate hisher particular situation. 4.4.2 Interviews and Ob~e~ation~

Data were obtained on the subjects and theu businesses largely through

standardized interviews and on-site observations. Standardized interviews "are designed

to elicit information using a set of predetermined questions that are expected to elicit the

subjects*thoughts. opinions, and attitudes about study-related issues" (Berg, L 995:32).

Interviews and observations are complementary data collection techniques, Described as

"mutually reinforcing qualitative techniques" (Patton, 1987: 13). these techniques allow

the researcher to giean both verbal and non-verbal information about the subject in a

penon-to-person interview. Keen observation af5ords the researcher an opportunity to

rnake social interpretations of non-verbal messages (as given through facial and hand gestures, and body language) given by the subjects. Such non-verbal channels of communication, together with more obvious verbal channels. make up the conversational

interaction situation or ful channel communication (Berg, 199550). For instance, a cautious respondent could hesitate to frankly articulate dissatisfaction with govemment programs, particularly those related to financial assistance, and may instead make dismissive hand gestures. Yet others, unable to precisely articulate their fmstrations. rnay simply project contorted facial expressions. The researcher' s close familiarity with the cultural nuances of the society aiiowed for a fairly accurate interpretation. and when appropriate, follow-up of non-verbal responses.

Person-to-person interviews were conducted using a standard approach. That is, a

letter of introduction was provided to the subject (Appendix 2) and the nature of the study

was explained with a reassurance of confidentiality. The format the interview would take 8 1 was explained to the subject, The questions on the questionnaire were asked in sequential order and responses recorded directly on the questionnaire. Although the questionnaire was worded so as to ensure that the subject understood clearly what they were being asked. the researcher gave clarification of questions when requested. as well as asked for clarification on responses that were deemed unclear or incomplete.

At the end of the formal questionnaire phase, which took approximately 45 minutes. the subject was infodlyasked questions regarding such issues as the generai state of the tourism industry and on the plight of the indigenous/smail-scale/localhotelier.

The average length of the interview was two hours. These responses were recorded privately on the questionnaire, separate from earlier responses. after the interview. At the end of the interview, the subject was asked if they desired a copy of the final report. The researcher left a business card with the subject in the event the subject needed to contact the researcher while in Barbados or in Canada,

Forty entrepreneurs representing forty-one units of accommodation were studied.

Thirty-nine interviews were conducted. thirty-four in person and six over the telephone,

One subject completed the questionnaire unaided by the researcher. The researcher reviewed the completed questionnaire with the subject over the telephone. Al1 person-to- person standardized interviews were conducted in the associated accommodation. with the exception of one which was held at the subject's place of full-time employment.

Person-to-person interviews that were conducted in the hotel also afforded the researcher an opportunity to observe the following, among other things:

the professionai deportment of the entrepreneur the entrepreneur's interaction with staff and guests the statekondition of the hotel and environs tourist activity in the hotel

General observations were also conducted in sorne foreign-owned hotefs. General

observations were useful in the formation of the researcher's perceptions of the state of the industry and the accommodation sector. particularly those perceptions related to

indigenous ownership and entrepreneuahip.

Planned and impromptu. unstructured interviews regarding the state of the

industry. the accommodation sector. and indigenous tourism entrepreneurs were conducted with tourism and govemment offciah. and other experts in the following organizations: Barbados Tourïsm Authority- Barbados and Toronto ofices; Caribbean

Tourism Organization, Barbados; Ministry of Tourkm, Barbados; Barbados Development

Bank; University of the West Indies. Cave Hi11 Campus, Barbados. Information gleaned from these interviews were recorded on paper during the interviews.

Other data included documentation (hotel Listing. historïc hotel rate sheets. tourism studies. documents and statistics, Caribbean joumals) from the above-mentioned solirces. as well as local newspaper sources (The Advocate. The Bajan, The Broad Street

Journal, The Daily Nation), a Local radio program (Voice of Barbados). and calenders and reports from educational institutions (Barbados; Bacbados Community College; Samuel

Prescod Polytechnical hstitute. Barbados; Barbados hdustrial Management Programme.

Barbados). 83

4.5 Analysis Techniques

Prior to andysing the data, the responses on the 41 questionnaires (representing

40 indigenous entrepreneurs) were coded on the questionnaire, ostensibly using the each multiple-choice response for each question as an independent code. Once a separate variable was created for each question, (including separate variables for each section of rnultipie-part questions) the coded information was recorded under the appropriate variabIe on a spreadsheet of a statisticai package (SPSS). Generai information or comments which were generated during the less structured portion of the interview, and recorded on the questionnaire, was surnmarized under a separate variaHe labeiled

"comments",

The number of subjects researched and the overail quality of the responses to a large extent dictated the type of data analysis that would prevail. Berg (1995: 10) wrote that research having fewer than forty cases precludes most quantitative investigations. while proves to be ample for a number of qualitative strategies. He further noted that "a common rnistake by many inexperienced or uninformed researchers is to reduce qualitative data to symbolic numeric representations and quantitatively computer analyse them" (ibid.).

Generally, the qualitative analysis process has three steps. Patton ( 1980268) described each step:

analysis- the process of bringing order to the data, and organizing what is there into patterns, categones, and basic descriptive units; interpretation- attaching meaning and significance to the analysis, explaining descriptive patterns, and looking for relationships and linkages among descriptive dimensions; evaiuation- making judgments about and assigning value to what has been analysed and interpreted,

The following sub-section (4.5- 1) brïefly outlines how the data was analysed, interpreted, and evaluated.

4.5.1 S tatis tical Techniques

Generaiiy, fiequencies and descriptives were used to maice sense of the data and to draw out patterns and relationships, as well as to answer many of the research questions.

Multidimensionai scaiing was used to consider the hypothesis: indigenous tounsm entrepreneurship in the accommodation sector is perïpheral in Location and function.

Multidimensional scaiing is a class of techniques that uses proxirnities arnong objects to indicate how sirnilar or dissimilx the two objects are. or are perceived to be

(Kruskai and Wish, 1978:7). The output is a spatial representation or configuration of points (a map) which reflect "hidden structure" in the data (ibid.). Larger dissirnilarities or smaller similarïties are reflected in a larger distance between peints or objects.

The researcher used multidimensional scaiing to establish groupings among dlof the hotels in Barbados based on two variables: winter rack rates (room rate) and beach location- The variable "room rate" was used because it best refiected the inherent quaiities of the accommodation, given the nature of the market which generdiy exercises self-regulating pricing. The second variable, beach location, is related to room rates as this quality or ieature is necessady reflected or implicit in room rates. Thus room rates and proximity to the beach (beach location) were considered reasonable criteria for 85 establishing peripherality of location. In-depth expianations regarding the analysis and interpretation of the data are presented in chapters five and six.

Peripherality of function was established by considering the average "tounst expenditure" in each hotel grouping over a five-year period- Not considered, but deemed important to an assessrnent on peripherality of function are variables "occupancy rate" and "revenue". Little effort was made to coilect this information in the field- The researcher was cognîzant of the unsuitability of attempting to glean information on revenue fiom the subjects and therefore avoided the issue so as not to antagonize the interviewee and thereby jeopardize the quai@ of the entire interview. Additionaiiy, srnall property owners, many of whom are inexpenenced in management, would not Iikely keep records, or more important, accurate records on occupancy.

Greater detail on the employment of the aforementioned statistical techniques is provided in the resuits chapters (chapters five and six).

4.6 Shidy Limitations

The study was confined to indigenous entrepreneurs in the accommodation sector-

Some limitations of the study relate to the units of analysis- For instance, the term

"indigenous" may have been defined less ngidly to include CARICOM nationals. The

CARICOM region is considered a periphery and as such indigens from this Iarger periphery who take advantage of the opportunities tourkm presents in Barbados are indeed recipients of the benefits of mas tounsm. 86

Similarly. informal sector activities were excluded from the study. Informa1 sector ac tivities and anciUary services, however. are perhaps a more representative re flection of indigenous entrepreneurid involvement largely because of easy entry in these areas, Iow initiai capital costs, and the relatively Iimited educational and expenential background that is generally required.

Finaiiy, the study considered indigenous entrepreneurship in a specific year. A longitudinal study conducted over an extended period could produce varying results as entry into and exit from the industry appears to be contingent on the vitality of the particular economy, among other things. For instance, Haider (1985) considered srnall accommodation development in the Caribbean and found that national owneahip was impac ted b y the availability of domestic capital and govemment assistance and incent ives

(in Pearce, 1989:89).

Some shortcomings existed in the collection and interpretation of the data. For instance, there were discrepancies relative to the number of accommodation mirs in

Barbados due to factors such as the temporary and extended closures of some hotels, as weil as variations in the number of uni& reported in different publications, inciuding governent documents (see Section 5.2). In addition, a larger number of respondents may have ken available if the field research had ken conducted at a different time.

While the summer (low tourïst season) was deemed an appropriate time to conduct field research, in fact. it was not as hoteliers tended to use this slow period to take trips

(business or otherwise).

Qualitative research requires much subjective interpretation of the data which. at 87 tirnes, creates particular shortcomings in the research- For instance, in this research the entrepreneurs were asked about the fiiture development of their business, some non- committal responses could have been emneously interpreted as the entrepreneur's lack of interest in making plans and projections for the hotel-

4.7 Summary

The research methodology is described in this chapter. The triangulation approach

(qualitativelquantitative, datalmethodology. and anaiytical) is used in addressing the research questions, as weU as the hypothesis: indigenous entrepreneurship in the accommodation sector is peripheral in location and function. Qualitative and quantitative strategies are used in the research as the combination of methods provides for a holistic view of the phenornenon, paaicularly through the employment of multiple methods of data collection (questionnaire, interviews, observations, and documents).

A structured, mu1tiplec hoice questionnaire considering the areas of demograp hics and ownenhip. training, education and experience, investrnent, and govemment assistance in entrepreneuriai development was used. The questionnaire was administered to 40 indigenous entrepreneurs (66% of indigenous entrepreneurs), representing 4 1 indigenously-owned accommodation units (64%) and 1273 (57%) hotel rooms. Other data collection were in the form of interviews with government and tourism officiais, and other experts, thereby insuring the breath and depth of the research. Relevant documentation was also secured from govemment and tounsm organizations and agencies, as weil as educational institutions, 88

Multidimensional scaling is used to consider the hypothesis. An explmation of the analysis of the data and the interpretation of the results is preseated in the results chapters (five and six) which foliow- Chapter 5

THE ACCOMMODATION SECTOR IN BARBADOS

5.0 Introduction

As a mature destination (OAS, 19871, Barbados has progressed through the first five stages of Butler's (1980) resort cycle development model of exploration, involvement, development. consolidation. and stagnation. Barbados. therefore, is currently at a juncture whereby it is confionted with the alternatives of decline or rejuvenation (Dam and Potter, 1997). According to the resort cycle model, local entrepreneurid involvement in the tourism industry would have increased during the involvement stage and declined during the development stage.

Each stage (in the tourist malife-cycle concept) is also accompanied by changes in the nature and extent of facilities provided and in the IocaUnon- local provision of these. No specific facilities for tounsts exist in the first stage, those in the involvement stage are provided pcimarily by Locals then local involvement and control declines rapidly in the development phase as larger. more modem and elaborate facility are provided by extemal developen .. . Local involvement only increases again in the decline stage . . .(Pearce, 1995: 12).

Some authors, however, have questioned the broad applicability of the model. particularly in regard to the stages at which local involvement increases and declines.

Weaver (in Butler, 1992), for instance, after conducting empirical investigation on some 90

Caribbean countries, found that in the non-plantation economy of Grand Caymans, the

Iocal participation in tounsm at the management and owneship level actually increased in the development stage. indicaiing that perhaps "the dechne of local influence is noc necessarily associated with the progress of the resort cycle on smdl island destinations."

He also argued that a mowed resort cycle mode1 which recognized the peculiarities of

Third World "plantation" economies would be more appropnate for some Caribbean islands as "an important characteristic of the plantation model is the absence of any significant degree of local decision-making power or participation. given the control exercised by external forces and circumstances" (Weaver. 1990:10). He further concluded that in general "tourism does not appear to contribute meaningfully to the . . . economic well-king of most residents of small islands which have experienced the plantation legacyP*(ibid.).

The ahof this chapter is not to test Butler's evolutionary model, rather it is to describe the historical development of the accommodation sector and to locate indigenous entrepreneurship in the sector so that it cm be criticaily considered and examined. This aim is achieved by considering the qualitative. spatial. and quantitative growth and development of the accommodation sector from the pre-emancipation period through to the present, as well as describing some of the characteristics of the indigenously-owned accommodation sector. In addition. the following research questions are addressed: Are indigens utilizing the opportunities that tourism presents? What are the nature and scope of their involvement? 91

5.1 The Developrnent of the Early Hotels (Pre-emancipation)

A form of tourism was evident in Barbados as eariy as the mid-seventeenth century. The hospitality that early planters (colonists) lavished on visitors from foreign countries, paaiculariy England, in effect mirroa much of what is considered "up-scaie" tourism today. Husbands (1983) suggested that this "attitude" of welcome encapsulated by what was cdled the "welcoming society" predisposed the Caribbean area to the development of a tourkm sector.

Initially. the hospitable weicome to visitors was given by the white planters. This welcome generally "served to further the social. econornic, and political alLiance of govemment and planten" (Husbands, 1983: 1 12). Husbands firther argued that the welcoming society formed the genesis of the tourist industry in Barbados and that

Barbados' well-known reputation for tourism was an almost inevitable outcome of the welcoming society (1983: 109).

Typically, foreign visitors, pacticuiarly diplomats to the isiand, were accomrnodated on the estates of the planters. However. notwithstanding the common

"welcoming society" practice, the island's fint hotei was erected in 1780 on St. George

Street in Bridgetown. Owned and managed by Rachel Pringle Polgreen. a free woman of color, the hotel represented the first of a number of eariy hotels that dotted the major town, port, and capital, Bridgetown. The early hotels of Barbados were, in fact, taverns or inns that offered accommodation (bed and an attendant, if requested, and meals) and were cornmoniy known by the names of the persons who kept them. For example. some of the nmes of the inns were (Mary) Bella Green's. Sabina Brade's establishment. Betsy Lemon's, and Nancy Clark's. The literature indicates the presence of at least six hotels in

Bridgetown during the period of L 780- 1833 (Alleyne, 1978; ConneIl, 1970; The Bajan, l978a, l978b). It is unclear how many hotels were in operation in any specific year.

During the pre-emancipation period (before 1938) Bridgetown hosted visitors in hotels which were owned and managed by black and rnulatto women- fiee women of color. AU of these women also had thriving side businesses seiiing jeliies and preserves

(Alieyne, lW8:6). Referred to as "the great mulatto houses of Bridgetown," these accommodations, though unsophisticated and homely, were the only commercial establishments which catered to the visitor. Women of color exclusively offered formal accommodations through the post-emancipation period to MO.in some of the first general accounts of the hotels in Bridgetown these women are described in some detail.

The hostess of the tavem is, usually, a black. or mulatto woman. who has been the favoured enamorata [sic] of some backra man; from whom she has obtained her freedom. and perhaps two or three slaves to assist her in carrying on the business of the house; where she now indulges in indolence. and the good things of life. grows fat. and feels herself of importance in society (Connell. 1970: 162). in yet another account of hotels in the British West Indies, the author noted:

There is a mystery about hotels in the British West Ihdies. They are always kept by fat. middie aged coloured ladies. who have no husbands . . . These ladies are generally caiied Miss So-and-So; Miss Jenny This or Miss Jessy That; but they invariably seemed to have a knowledge of the world. especially of the male hotel f~quentingworld. hardly compatible with a retinng maiden state of life. I only mention this, 1cannot solve the rïddIe . . . But it did strike me as singular that the profession should always be in the hands of these ladies', and that they should never get husbands (Connell, 1970: 164)

' This author's emphasis. The rnid-nineteenth century marked the end of the perîod of domination of women in the accommodation sector- the "ladies of Bndgetown" era. By 1850 the nature of the accommodation sector had dso changed, due in part to increased travel to the Caribbees by businessmen. and other traveilen and visitors who required more "respectable" accommodation. Concomitantly, hotels were no longer called by the name of the owner, male proprietors were more evident; the services offered were expanded; and the Iayout and capacity of the hotels became more expansive. The end of one era and the beginning of another was punctuated by the introduction/arrival of the Ice House. Founded by an

American. D.P. Cotton, the Ice House derived its name from the abundance of ice and iced bevenges that were offered. It was also a spacious hotel of 20 rooms. Bridgetown, the island's capital and port. however. continued to be the only location for hotels up until the Iate 1800's.

5.1.1 The Spatial Development of the Accommodation Sector (Post-emancipation)

By 188 1 another landmark in the accommodation sector was established. George

Whitfield, a Barbadian. built the largest hotel in the West uidies. The Marine Hotel. situated in Hastings, housed 300 guests and boasted fine fitted and fudshed rooms. as well as an optimum location facing the uade-wind. looking over the sea (Connell.

1970: 177).

The establishment of the Marine Hotel rnarked a change in the size. type. and general Iocation of hotels in Barbados. With the introduction of the Marine Hotel came the movement of hotels away from the town of Bndgetown. St. Michael. The Hastings- Worthing- St. Lawrence area (later referred to as the south coast) in the parish of Christ

Church, witnessed the fmt concentration of hotels and guesthouses outside of

Bridgetown, and dong the coast of the island (The Bajan, 1978b:8). As in many

European and North Amencan resorts, the names of the hotels, such as the Sea View and the Ocean View, ceremoniously advertised their coastal advantage. The hotels situated along the coast were often advertised as health and winter resorts or their dose proximity to sea was specificaiiy promoted.

Prior to 1900, two hotels were also already estabiished in the outiying areas of

Bathsheba, in St. Joseph (The Beachmount Hotel) and in St. Philip (The Crane). By 19 13 the fmt hotel was estabiished on the West coast. Some hotels were also multi-purposed in function. For example. the Ebenezer Hotel, situated in Speighstown, St. Peter, was both a hotel and grocery store- To facilitate access to their properties, many of these outlying hotels kept a livery stable in Bridgetown (Connell, 1970: 182).

By 19 13 the island boasted an ample supply of adequate to excellent hotels and the Barbados Iniprovement Association (BU)had been created. The BIA promoted the island as a hedth and winter reson in cities such as London, Montreal and New York

The traveller or invalid visiting Barbados is sure of an equable climate, but for his complete enjoyment it is also necessary that he should secure good accommodation during his sojoum, and in Barbados he will find plenty of excellent hotels and boarding houses from which to make his choice (The Barbados hprovement Association, 19 13: 19).

ironically, the proliferation of excellent hotels along the coast to some extent contributed to the relegation of many of the smaüer, somewhat older. and less

sophisticated hotels in Bridgetown to "little more than boarding houses" (Connell,

1970: 175). These hotels typically offered combinations of services such as bar and board;

board and lodging; bar, billiards and restaurant, as well as fumished and unfurnished

rooms-

1 The Development of Accommodation Sector (Post-World War I)

The development of the accommodation sector continued steadily dong the South

Coast for many years. The Hastings-Worthing-St. Lawrence area was fmt chosen by

residents as the preferred location for their seaside or holiday houses, then as their

residences, and then as family-run guesthouses or hotels (The Bajan, 1978b:S). Although

hotel development continued on the West and to a far lesser extent on the east coasts. it by

no means rivalled the concentration of hotels that then existed on the south coast- There

was lirnited hotel activity on the West coast until the mid-1940s to the early 1950s,

following the Second WorId War. The West coast was "discovered" by a few wealthy

English, American and Canadian citizens who thought the area was ideal for their winter

homes. rnvch unlike the south coast which was first popularized by residents (The Bajan.

l978b:8). Some of these private homes were converted into hotels, such as the Colony

Club which was the fitluxury hotel on the West Coast. It was converted irom a private

home and stabIes (The Bajan, 1978b:8).

Residential clubs represented a separate wave of accommodation devetopment.

The spatial distribution of residential clubs was notably outside of the city of Bridgetown 96

and the Hastings-Worthing- St Lawrence areas. With the exception of the Barbados

Aquatic Club and Paradise Beach Club. which were located in the parish of St. Michael,

residential clubs were primarily on the West coast in the parïshes of Si. James and St.

Peter. Unlike regular hotels, residential clubs were an early version of resort hotels. They offered the visitor a number of organized and unorganized social and physical/spon activities, as weii as eating facilities, in addition to a room. In 1957. the Barbados Tourist

Board's hotel rate sheet Listed residential clubs such as, Coral Reef Club, Accra Beach

Club, Barbados Aquatic Club. and the Barbados Country Club2. By 1959, residential clubs were reclassified as hotets on the rate sheet, many of them dropping the "club" designation from their name. such as Coral Reef, Accra Beach. and Four Winds. They were further highiighted as resort hotels on the Barbados Tourist Board's accommodation rate sheet.

By 1960 there were thirty-five hotels on Barbados. nine were on the West coast, eight of which were resort hotels (as listed by the Barbados Tourist Board (BTB.1960).

Sixty-six percent of al1 hotels were on the south coast (BTB,1960). The introduction of the Sandy Lane hotel in 1961, with its attached golf course, helped the West coast to become fully established as an "up-scale" resort area Then, as now, the Sandy Lane

Hotel commanded the highest room rate on the island, with its only close nvals at that tirne being Eastry House in St. Peter and the Colony Club in St. James- both located on the West coast-

'Barbados Tourist Board: Hotels. Residential Clubs. Guest Houses; Rate Sheet for November 1957- April 1958. 97

In 1966, the first international hotel chah entered the island- Wton Hotel, located just one-and-a-half miles from Bridgetown, was then the largest hotel with one hundred and fifty-eight rooms, displacing the Marine hotel. which had held that distinction since 188 1. The Holiday Inn international hotel chain also entered the island in the late 1960s.

5.1.3 Growth of the Tourist Plant Capacity (1960- 1994)

In the 1960s the rate of growth in the accommodation sector was extremely npid.

Between the pend 196% 1970 the tourist plant capacity rose from 2,250 to 6.08 1 hotel beds, a 170 percent increw (Barbados Statistical Service, 1995). The greatest growth took place in apartments and aparûnent hotels which increased by 480 percent followed by a 3 17 percent increase in "luxury" hotels (ibid.)? indeed it was also during the late

1960s that the apment hotel became a popular type of tourism accommodation. largely spurred by the success of Sunset Crest Apartment developments.

Between the period 1970 -1979 total bed capacity increased by 95 percent, from

6.08 1 to 1 1,843 hotel beds, a growth rate that was just over half of the earlier period

(Barbados Statistical Service, 1995). While the rate of growth of bed capacity in luxury hotels slowed down tremendously (30 percent increase between 19704979) as compared to the earlier period, bed capacity in apartments and apartment hotels continued to increase at the high rate of 306 percent between 1970 and 1979. In short, the increase in

'Tourist plant capacity is typicalfy rneasured by the number of accommodation uni& andor roorns. andor number of beds. However. due CO the availability of data. only bed capacity will be considered for the periods 1963-1979, 98

bed capacity between 1963 and 1979 is greatiy attributed to the growth of apamnents and

apment hotels. So aggressive was the growth of apartments and apartment hotels that

"big hotels were even begïnning to cornplain that this son of accommodation was taking

away much of their business" (The Bajan, 1978a:2).

During the five-year period from 1978- L 983 overall capacity increased from

1l,l3 L to 14,3 14 beds. In fact, in a 1984 report on the problems facing the tounsm

indusuy, the increase in the number of beds was highlighted and a proposal made to

impose a moratorium to halt further increases in the tourïst plant. In addition. a

moratorium for two years on incentives and support for the addition of new hote1 rooms

was suggested (Joint Cornmittee. L984:35).

Dunng the late 1980s and early 1990s bed capacities steadily dropped. so that in

1994 there were 11,495 hotel beds, below the 1979 capacity of 1 1,843 beds (Table 5.1)-

In effect, between 1980 and 1994 the overall number of accommodation units decreased

from 180 to 156, with the greatest reduction of approximately 27 units occuning in the

hotel category, especially in group iiI hotels (Table 5.2) and(Fig.5.1). Generally, the

reduction in the supply of accommodation, particularly in the early 1990s. was a result of

"closure of certain properties and other properties leaving the accommodation sub-sector altogethes" (GOB.1993: 163). Table 5.1 Accomnioastion by Hotels and Bed Capacity 1W8-1994

Percentage Increase Percentage Increase Year Number Number - , of Hot& ~viow 1980 of Beds Previous 1980 Year Year andex) 1980 180 2-2 100 13360 12-8 100 1 1981 188 4-4 4-4 14147 5-9 105-9 J 1982 182 -3.1 1-1 14141 -0.4 105.5 1983 175 -3.8 -2.7 143 14 1.2 106.6 J 1984 176 0.6 -2.2 14134 -1.3 105.8 1985 17 1 -2.8 -5 14016 -0.8 104.9 1986 167 -2.3 -7.2 1398 1 -0.2 104.4 1987 16s 4.2 -8.3 13847 -1 103.5 1988 158 -4.2 - 12.2 137 19 -0.9 102.6 1989 157 -0.6 - 12.7 13726 O- 1 102.6 1990 16 1 2.5 -10-5 13767 0.3 102-9 7 1991 153 -4-9 -15 1 1674 -15.2 -85.6 1992 150 -1.9 - 16-6 1 1803 1.1 -86.9 1993 149 -0.6 - 17.2 1 1554 -2.1 -84-3 1994 156 4.6 - 13.3 11495 -0.5 -83.8

Source: Barbados Statistical Service, 1995

Figure 5.1 Growth in Accommodation Units in Barbados, 1980-1994

Year

Source: Prduced from Tabie 5.2

In addition to a reduced supply of accommodation, the existing accommodation was typicaiiy aged and in need of refurbishment. A 1992 report noted that:

Many of the hotel structures appear worn and rundown. The sector has not maintained the quality of the physical hotel plant to keep pace with a more quality conscious visitor. No significant new investmerit in hotels have taken place in the last ten years. This reflects declining attractiveness in terms of profitability in the industry (Caribbean Futures, et al., 19925).

Severai factors can and have impacted the supply of accommodation in Barbados.

Such factors include poor occupancy rates and institutionai policies.

( 1) Poor occupancy rates- forecasted poor occupancy rates or continuously low occupancy rates impact negatively on the supply of accommodation, For example, in

1982 fourteen hotek closed for the summer as a result of forecasted occupancy rates of 20-25% below nomd (E-LU. 1983:29).

(2) Institutionai Policies- (Bank and Government)

Bank policy- In the early 1980s the Barbados Deveiopment Bank reduced the Ioans committed to tounsm by approximately BdsSZ million as compared to the previous year and had as a policy the restriction of loaas for hotel construction or expansion on the island's West and south coasts (E-ILL,1983:30).

Govemment policy- Throughout the early 1980s the Government of Barbados gave considenble assistance to the hotel industry for the upgrading of accommodation as well as to operations having cash flow problems (E.I.U., 1987:29). Such efforts caused many

Bedgling hotel operations to remain open. Even government poiicy regarding ownership in the accommodation sector impacts on the accommodation supply. ln 198 1 the govrrnment-owned hotel complex. Heywoods. created ostensibly to provide opportunities for local ownership and participation, added 308 guest roorns to the accommodation supply. The offer or denial of govemment incentives and support also impacts on the accommodation stock. And finally, government may restrict or discourage building through building regulations. For instance, new hotel development has been discouraged on the already heavily developed south and West coasts whiie future hotel development is encouraged on the southeastern and northwestern coasts (OAS, 1987:C48).

This historïcal review of the developrnent of the accommodation sector in

Barbados traced the qualitative, spatial and quantitative growth of the sector. The last thirty years of development capture the direction and intensity of growth activity in the sector. It is within this historical zontext ofoptimistic growth followed by a steady 1 O3

decline in the quantity and quality of the accommodation sector of Barbados that the

nature and scope of indigenous entrepreneurïal involvement in the sector are considered

and examined,

5.2 The Tourism Plant in Barbados, 1994

Published accommodation statistics shouId not be used uncriticdy and note must be taken of the definitions employed and the rnanner in which they are cornpiled. Conflicting figures from different sources are not uncornmon (Pearce, 1995:83).

An eclectic approach was taken in assessing the quantitative nature of the tourism

plant. Statistics were secured from a number of sources (Barbados Statistical Service,

Caribbean Tourism Organization, Economic Intelligence Unit, Organisation of Arnerican

S tates. World Tourism Organization). although the primary source was the Barbados

S tatistical Service. What is noteworthy. is that significant discrepancies exist in the

literature, as well as within the Barbados Statistical Service (BSS) on the size and make-

up of the accommodation sector in Barbados. particularly in regard to the number of accommodation units. tourist accommodation by type, as well as hotel ownenhip. For

instance. an OAS study (1987) on the optimum size and nature of new hotel development in the Caribbean noted that in L987 there were 9 1 hotels in Barbados and

4720 hotel rooms, when in fact the Barbados Statistical Service shows Barbados as

having 165 units of accommodation and 6672 hotel rooms.

Moreover. the Barbados Statistical Service itself has published statistics that are clearly suspicious. For instance. in a publication entitled "Survey of Accommodation Io4

Establishment 1984 and 1985", and elsewhere. the ESS showed Barbados as having a

total of 4808 hotei rooms in 1985. It further indicated that in 1985 sixty percent of dl

tourism establishments were locally-owned and forty percent were foreign-owned

(CARICOM nationals and others). In fact. in other BSS publications, the tord capacity in

Barbados in 1985 is recorded at 6852 hotel rooms, clearly a more accurate assessrnent. It

is therefore not unreasonable to assume that the composition of ownership in

accommodation as presented in this study may also be suspect,

The following analysis of the accommodation stock of Barbados was achieved by

using the following sources:

( 1) Accommodation statistics from the Barbados Statistical Service (2) A revised BTA List of Hotels, Apanments and Guesthouses (June 1994) (3) BTA WintedSummer rate sheets ( 1993- 1994). and (4) BSS hotel grouping system (Appendix 1).

Hotels in Barbados are classified under the island's Registration and Classification

regulations of 1982. There are four hotel groups: 1(Luxury), II (Class A), iii (Class B). IV

Apartrnent Hotels. Aparunent Cottages. and ~uesthouses.' Ongoing concerns arnongsr

some hoteiiers as to how properties are classified. particularly with respect to hotels and

apartments hotels. suggest the need to revisit the system. The Barbados Tourism

Authoriy (BTA) has ken attempting a new classification scheme to 1) assist the uavel

trade and visitors in identifjhg the range of available facilities; 2) to assist it in its

marketing effo~;and 3) to ensure the maintenance of standards and services; and (4) to

" The BSS hotel grouping system (Appendix I ) Ïs more detailed that this classification-. The Govemment of Barbados, in collaboration with the Barbados Hotel and Tourism Association intends co imp lement a system for grading of hotels and other categones of accornniodation- encourage hoteliers to improve the quality and range of their services and arnenities

(TheDaily Nation, August 17,1994: 17A).

A Caribbean-wide classification system has been considered by the Caribbean

Tounsm Association (CTA) which would ostensibly ensure that inappropriate use of destination-specific classifications or establishment-generated classification is minimised-

The Barbados Hotel and Tounsm Association (BEITA) supports the use of a Caribbean- wide scherne rather than one generated by the BTA (The Daïiy Nation, August

17,1994: 17A)-

Barbados has 140 Listed units of accommodation and 5554 listed guest rooms

(Table5.3)'. Twenty-one percent (n=29) were hotels, focty-five percent (n=63) were apartment hotels, twenty-seven percent (n=38) were apartments, and seven percent (n= 10) were guesthouses. The majorïty of rooms on the island are in apartment hotels (54%)and hotels (35%). While Barbados has a mixed-sized accommodation supply, forty-six percent of the hotels have 20 rooms or less. Only seventeen percent of the hotels have 75 rooms or more, the buik of the accommodation (65 percent) has less than 35 roorns.

Generally. apartment hotels and apartments are small-sized, with over 50 percent having

20 rooms or less. Thirty-four percent of the apartments have 10 rooms or less.

These amounts are based on the revised BTA Iist of accommodation (1994). The BSS hotel grouping system was used to establish hotel categories. However. the BSS (1995) published 156 units of accommodation and 1 1,495 beds for 1994, The precise number of availabie units of accommodation is difficult to ascertain. Temporary and long-term closures due to renovations, as well as unceremonious new openings hinder the accurate collection of informatioddata. For instance, in the summer of 1994 massive construction efforts were underway and a few accommodation units were closed. particuhrly in the "hotel" critegory of accommodation thus partiaily accounting for the discrepancy, Moreover, there is a tendency for sorne hotetiers to understate the actuaI number of roorns/beds in their accommodation according to the perceived intended use of the information, In addition. there is a significant number of prïvately-owned apartments and viltas, Indeed, unrecognized accommodation accounts for approximately 17 percent of total tourist expenditure. Table 5.3 Accommodation in Barbados, 1994

Category Al1 accommodation Indigenously-owneà accommodation No- of Units 1 No. oCRoorns

Apartment Hotels

Guesthouses 1 10 1 53 Total 1 140 1 5554 ( ) Percentages Source: Compiied by author, 1994

5.2.1 The Spatial Structure of Tourism in Barbados

According to Pearce ( 1995: 1 18), there are three basic patterns of spatial structure of island tourism:

( 1) Tourist accommodation is concentrated in a small number of coastd locdities in or close to the major urban centres; (2) Clusters of hotels are located adjacent to or outside the major urban centres; and (3) Hotels are shared in varying degrees between the major urban centre and coastal resort clusters.

He further noted that size, insularity. and land ownership are cornpelling factors which influence the spatial pattern of accommodation on islands.

In the case of Barbados, historically. there exist dichotomous spatial and I O7 qualitative variations in the accommodation sector as two distinct elements are evident-

The sector is spatiaiiy distinctive as concentrations of accommodation exist in two separate areas, the south coast (in the parish of Christ Church), and the West coast (in the parishes of St. James and St. Peter). Very few accommodation units are located in the parishes of St. Michaei, St. Phiiip, and St. Joseph. Accommodation, as weIi as other tourist amenities and facilities, are concentrated dong the western side of the island where the major coastal road provides easy access to the airport and to the major urban centre, Bridgetown, the capital. Accommodations are mostiy located on the western side of the coastal road which affords easy and ready access to the beach.

The smail size and insularïty of the island with its limited resource base have directly influenced the spatial concentration of accommodation on the western side of the island. The east coast, or Atlantic side of the island, though scenic, is largely unsuitable for tourist development due to its topography and inhospitable kaches6, in addition to being removed from urban centres and the international airport. In essence, the east coast first lacked the naturai amenities for tourist development and therefore little infrastructure has been provided, Tounst development is therefore concentrated on the western side of the island. Moreover, the governrnent, as part of its Developrnent Plan, 1978-83. outlined the use of specific areas.

. . .the Plan wilI seek to maintain the West Coast for luxury accommodation. the urban sector for the business segment, the South Coast for the lower cost segment, the South East Coast for a mix, and preserve the East Coast as far as possible for its scenic and open qualities

hThe topography on the eastern side of the island. particularly in the parish of St, Andrew. is hiHy and the sea on the eut coast is extremely rough- Indeed, swirnming is discouraged in many areas- Land ownership has aiso influenced the spatial structure of the accommodation sector, particularly as it relates to indigenous entrepreneurship (see Section 6.3-1).

The accommodation sector is also functionally and spatially distinctive. An "up- scale" market is served by luxurious hotels and viilas on the West Coast, while a "mass- market" clientele is Iargely served by economy-class hoteIs, and apartment hotels on the

South Coast. Twenty-four percent of ail units of accommodation and thirty-three percent of ail hotel rooms are on the West coast (Table 5.4). Whiie the west coast or "Platinum

Coast" is located in the parishes of St. James and St. Peter, luxury accommodations are rnainly in the parish of St. lames.

Table 5.4 Location of Accommodation in Barbados, 1994 (Percentages) Location Units Rooms West Coast 24 33 South Coast 65 54 Other 11 13 Source: Compiled by author, 1994

There are approximately eleven luxury properties in Barbados (Almond Beach

Village, Club Rockley Barbados. Cobbler's Cove, Coconut Creek, Colony Club. Coral i O9

Reef, Glitter Bay, Royal PaviIion, Sandy Lane. Sandpiper. and Tamarùid Cove)? These properties account for 973 rooms or twenty-two percent of dl hotel accommodation. and eighteen percent of ali accommodations, including guesthouses. Luxury properties range in size from a fairly small property such as Cobbler's Cove with 39 rooms to the Largest.

Almond Beach with 151 rooms. h fact, six of the properties have les than 30 roorns. Of dl L 1 luxury propenies, the Sandy Lane Hotel is the most expensive and commands by far the highest room rate on the is1and-d

A number of other hotels which are not considered top luxury resort hotels, but which serve an "up-market" clientele are also located on the West coast- King's Beach

Hotel, Mango Bay Club. and Discovery Bay- Also. on the West coast is the Largest apartment hotel complex on the island. Suaset Crest bungalow complex. which was built with local capital. iacludes Golden Dream. Golden Palm Beach (70 units), Homar Rentals

( 105 units), Sun Rentais (54 units), Traveilers Paim (16 units) and Tropic (5 units).

Holiday villas are a significant part of the "up-market" accommodation sector.'

Rental luxury villas are a smail percentage of accommodation on the istand. but contribute significantly more per visitor in tounsm expendîture than luxury hotels. This segment of the accommodation sector emerged in the 1970s as an important source of

' For the purpose of this study luxury propenies are those having room rates of over US250 as outlined in the rate sheet, Winter 1993-1994, Otherwise. the rate sheet classification is observed, Some luxury properties are currentiy being refurbished andhexpanded and as such the number of rooms would increase the following season,

* A superior single room at the Sandy bneHotel commands US$72û-$1600. MAP. Cobbler's Cove has the next most costly rate for a similx room at US$3ûû-$500 (BTA Rate Sheet, Winter 1993-1994) (BTA. 1993a).

"In 1997. there were approximately 120 vilIas in Barbados (Personal communication with Robert McChlery. assis tan^ Sales Manager. Barbados Tourism Authority. Toronto). 1 IO employment and revenue within the tounsrn sector (Altman, 1995:7B).

Villas are located throughout the island. particularly on the West coast. where the seafront properties are the most expensive. They range from one-bedroom condominiums such as in Sunset Crest to grand villas such as the prestigious Great House on Turtle Beach in St. Peter- Villas also tend to be located close to luxury or class "A" hotel properties such as the Sandy Lane Hotel, Crane Hotel. Sam Lord's Castie. and

Rockley Reson. A large project on the West coast, the Royal Westmoreland Golf Course. developed on 480 acres. with a 27-hole world-ciass golf course, also has two and three bedroom Luxuiy villado

Most of the ail-inclusive resorts are located on the West Coast, The dl-inclusive resort concept has been growing in the Eastern Caribbean and has slowly caught on in

Barbados.'' The first dl-inclusive resort, Almond Beach Club. was established in 199 1 by a Barbadian public Company. Barbados Shipping and Trading (BS&T). in 1994 BS&T bought Heywoods Resort in St Peter. with the intent of transforming it into their second dl-inclusive property- the Nmond Beach Village. Yet another dl-inclusive resort is being established on the West coast by the Sandals Horel chah The Cunard Pandise

Beach Club will be refurbished and transforrned into the new 300 luxury room Sandals

Barbados Resort. The Sandals hotel chain operates exçlusively in the Cziribbean Basin and since its inauguration in 198 1 has established six such hotels in Jamaica, two in St.

Lucia and one in Antigua (The Barbados Advocate. Iune 9, 1994: 19). The only other dl-

"%mesharingproperties are also an integral part of the accommodation sector.

" The region's originator of the ail-inclusive concept. John Issa of Jamaica, has SuperCIubs dl-inclusive properties throughout the Caribbean- inclusive resorts on the island are the Mango Bay hotel (formerly Palm Beach

Apartments) and Club Rockiey Barbados (on the south coast). which became dl-inclusive

Sixty-five percent of dlunits of accommodation and fifiy-four percent of al1 hotel rooms are on the south coast (Table 5-4)- A limited number of the island's "up- rnarket"'cliente1e is served on the south coast by Sam Lord's Cade, Crane Beach. and

Divi Southwinds. The south coast has the greatest concentration of apartmeot hotels and apartments which primarily cater for a low-budget. mass market clientele. Generally. apartment hotels are smail-sized, the greatest portion (758) having less than 20 units. forty-two percent having 10 uni& or less (see Table 5.5).

Due to the smdsize. as weli as the nature of ownership and management, srnaIl properties tend to provide a distinctive tounsm experience for the visitor.

Altogether the small hotels. apartment blocks and other forms of accommodation offer the visitor to Barbados some of the best value for money. They can usually entertain their guests better than the large places. simply because of the personai touch- Guests cm be taken on personal tours and sometimes are introduced into the circle of family and friends of the proprietor (The Bajan, June 1984:7).

"As of the surnmer of 1998. Barbados has nine ail-inclusive accommodation units. CN*: Exchding glldmm8 ( ) Nimikr of acxmmdation imita S-: S-: BTA rate dmt. 1993-1994

5.2.1.1 Spatial Hitrarchy

As indic8ted in section 5.2.1, ikeatc spahi, ~tidand qyaiitative MNticms in thc

(fCÇOII1IflOdBtims8ctor in Biirbadoe. Gmrally,upsde, luxury hotels and rend Iwiiry villas which serve an up&t dentele srr 10catd on th weat corrt (Platinum Coast)- Low-budget

~ti~~~~thenvss~~aithsouthcmrt.~o~ver,~~sps~ hidd(ourist8ccommodLItimarrurwithin~tairistrpwwhi&aremtsutnci~ elahteci upon by a gmsspnU .oatysis.

Spatial hierarchy is the term used to descnbe the ordering of space based on identifiable

and measurable factors. Within the context of this study, spatial hierarchy describes the

order accommodation in Barbados exhibit based on beach locations and, to a lesser extent, location relative to the coastal road. In addition, spatially hierarchical toun*a accommodation areas (Fig. 5.2) in Barbados is a selective approximation of spatial ordering of accommodation based on quality. hplied in the model is the geographic concept of distance decay. That is, the overall quaiity of the accommodation decreases with distance away eorn the core ara Each distance decay curve represents a locationally and qualitatively distinct area

The conceptual model (Fig- 5-21 has five hierarchical tourist accommodacion areas: wes t coast (beach location). west coast (off the beach), south coast (beach

Location), south coast (off the beach). and elsewhere. The core (ma A) represents the

West coast, specificaIIy on the western side of the coastal road, and on the beach.

Accommodation hem is typicalIy of high quaiity and command high price levels. Some up-scale accommodation on the West coast are not Iocated on the beach. Such accommodation may be placed within the second highest area (area B). where high quality adhigh prices are also important factors.

There are accommodation of up-scale quality on the south coast that are located on the beach. However, they tend not to command as high rates as some of the hoteis on the West coastcSuch hoceis fail into accommodation area C- Also on the south coast rire hotels which are located off of the beach, as weil as on the northern side of the coastal road. These are typically budget hotels. Such hotels are located in tourism accommodation area O. Al1 other accommodation located outside of the West and south coasts fit loosely into the "elsewhere" tourist accommodation area E-

Although the diagram depicts perfectly formed distance decay curvcs Il1

(accommodation areas), in actuality there are deformations of the areas due to factors such as pnce levels and accessibility to the beach. For example. in St. Philip (area E) is an accommodation of supenor quality that is situated on the beach which is more suitably located in area A,

indigenous entrepreneurs in the accommodation sector are mostly peripherally located (area D) outside the core tourist areas. either by choice (e.g., location of land) or by design (e.g.. prohibitive cost of land on the West coast)(see Section 6.3.L).

The small size of the island. as well as the spatial configuration of tourist space

(coastal), necessarily impact on the ease and extent to which standard geographic rnodeling can be implemented.

5.2.2 State of the Accommodation Sector

Until 1994 there had been limited new construction in the industry for many years. largely due to low productivity. According to the BHTA, there had been no major construction in the accommodation sector since the completion of King's Beach Hotel in

St. Peter, in 1989 (Daily Nation, May LO, 1994: L8), so that by the end of the winter season in 1994 Barbados' aging tourist plant was in a critical state of deterioration. Small hotels lagged more significantly in their upkeep. In addition. the general state of deterioration of the small hotel sector was further exacerbated by initial deficiencies in plant design and decor. Fig. 5.2 Conceptudization of Spatially Hierarchical Toucist Accommodation Areas in Barbados

A- West corst (beach idon) B- West coast (off the bcach) C-South usst (kPch location) D- South coast (off the bh) E- Elsewhere

Source: Constructed by author, 1994

Sub-standard facilities in the smail hotel sector are the result of various reasons, of which inadequate capital investment is only one . . .more recent accommodation developments with sub-standard facilities are often the result of an enthusiastic entrepreneur lacking experience and acting without professional guidance in project planning and hotel design (CTO. 1994:4-5).

Two factors in particular prompted swift action by many hotelien to refurbish and expand their properties: 1) a good winter season (1993-4) when long stay visitor arrivals were up by 14.8% over 1993, with a 70% occupancy rate during the season; and 2) [ 16 competition from newer destinations such as Cuba and other Eastern Caribbean countries meant that Barbados needed an improved product and a new plant (Blenman. 1994a: 18).

Thus. there was major activity in the construction sector in the forrn of extensive hotel refurbishment and expansion. Much of the construction and upgrading has been camed out on hoteïs on the West coast. The BKTA noted that many associated businesses have also upgraded their plant. For example. rental car agencies and tour companies have invested over BdsS2 million in 1994. and restaurant upgrading cost in excess of BdsS 1 million (BHTA News. September 1994). Sorne hotefiers. aithough heavily indebtcd, had little choice but to upgrade their properties. Kinch. President of BHTA. noted that "there are some hoteliers who are only refurbishing because they can't afford to let the plant run down and not because they are making money-" (Blenman, 1994a: 18).

A total of 14 properties. four on the south coast and 10 in the West coast,were scheduled to be remodelled. refurbished and/or expanded in 1994. Three properties on the

West coast were being remodelled into dl-inclusive resorts- Heywoods (changed to

Alrnond Beach Village), Paradise (Sandals Barbados Resort), and Mango Bay. South coast properties were expected to spend BdsS4 million in renovations and general refurbishment. while those on the West coast were to spend BdsS 1 11.75 million, for a total of BdsS 115.75 million in total refurbishment costs. resulting an increase of 3 15 rooms (BHTA News. September. 1994:8).

According to the Central Bank Annual Report for 1994.302 additionai rooms were added to the tourism plant in that year. 280 of which were "luxury class" and 22 were in "A" class. Seventy-fîve percent (75%)of these new rooms are self-catering in 1 I7 categories comprising apartment hotels, apartments. and villas (Hoyos, 19959). in addition. new niche markets were also king created that are centred on golf (Royal

Wes tmoreland, St. Peter), marinas (Port Charles, Speighstown), hentage (re-developrnent of Speighstown as a 18th centuiy merchant town), and country inns (re-development of

ViIla Nova, former home of Sir Anthony Eden) (Altman. 1995:7B),

By 1995, the tot.uist plant, panicuiarly on the West coast, was better poised to compete intemationaiiy. as its Iuxury hotels and villas rïvalled any wodd wide- However. mmy of the indigenously-owned properties. especially the apartment hotels on the south coast, remained in a relative state of disrepaîr and continued to be plagued by reduced occupancy rates, reduced revenue, reduced profits, and increasing debt.

5.2.3 Categories of Ownership in the Accommodation Sector

No island should depend on one type of tourisrn, especially where local participation might be excfuded on the grounds of cost ... Total reliance upon an expensive tourist product is not conducive to market diversification and to national interests if local people cannot participate in the development of their island (Wing, 1995: 100).

Many of the early hotels were locally owned. as noted earlier in Section 5.1.

However, some Foreign ownenhip was evident on the island as early as L89 1 when the first expatriate, an American named Mr. Pomperoy. bought the Marine Hotel from a local businessman. The Spanish (Grand Hotel Amazonas) and the Portuguese (The Bath Hotel) also owned hotels in Barbados pnor to 19 15. Foreign owners were typically former visitors to the island who returned and invested in a hotel property, and as such took up permanent residence on the island. More recently, foreign owners are first and foremost t 18 financial investors who acquire residency.

The pattern of foreign ownership did not become enuenched in Barbados until the

19505 when the Paradise Beach Hotel changed hands to a Canadian owner. and then to the Cunard Company. Similady, the Sandy Lane Hotel was built by an English/Canadian group and was later sold to Trust House Forte of the . In the sixties.

Hi1ton and HoIiday hn, international hotel chains, entered the isIand (The Bajan.

L978b: 17). By 1976 expatriates owned fifty percent of the total number of beds. although only twenty-seven percent of al1 other accommodation (ibid.). In 1985, a sunrey of the accommodation establishment showed that forty percent of al1 rooms in the tourist plant were owned by non-Barbadians Nationais. and fifty percent of al1 ho tel rooms

(Barbadian Statisticai Service. 1986: 13).13

In 1994. fifty-four percent of ail accommodation units and sixty percent of ail roorns are owned b y non-indigens. Within the "hotel" category. non-indigens own 76 percent of hotels and 68 percent of the hotel rooms (Table 5.6). Non-indigens are also well-represented in the "apartment hotel" category. While indigens own 52 percent of dl such accornrnodations units. non-indigens own 56 percent of the rooms in this category. It is therefore within the "hotel" and Ppartment hotel" category that non-indipns have the greatest representation. hdigenous owneahip is greatest in the "apartment" category as they own 58 percent of these accommodation units and 53 percent of the hotel rooms.

Generaily, indigens own the greatest number of small hotels (less than 20 rooms) while

I3 As noted earlier. published statistics are not fully reliable. For instance. this survey also noted accommodation capacity for 1985 as 4804 hotel rooms- 119

non-indigens typically own most of the larger hotels (more than 55 rooms) (Table 5.5).

Eighty percent of guesthouses are also owned by non-indigens (BTA Rate Sheet. Winter

1993-94) (Table 5.6). [*

5.2.3.1 Small Hotels of Barbados

Small hotels have kena tradition in Barbados. Typicdy these hotels were of a high quality, providing full service. and of an exclusive nature. During the 1970s and

1980s as tourkm arrivals increased, so did the number of accommodation units- Much of the increase occurred in apactment hotels and apartments. However. many of these accommodation units were of a small size. While they added variety to the accommodation stock, and served the mass "low-end" market, they have since proven to be problematic for the sector in regards to their general sub-standard qualiw, as well as to the owners who tend to be in debt-

Several years of inadequate occupancies and room rates. as well as a failure to set aside cash reserves for replacement (OAS. 1987:I-7). in addition îo ongoing indebtedness. have hindered many small hotel owners from upgrading and improving their facilities.

Not al1 sub-standard srnail hoteis are aged. More cecent small hotel development is also beleaguered by poor design and layout due to a lack of technical assistance.

A 1987 report conducted on small hotel establishments in Barbados cited the foIlowing areas of weakness that exist wirh their ovedoperation:

( 1 ) Plant design, decor, and landscaping,

'" BTA list not necessarily complete. (2) Marketing, (3) Financial control and record keeping, and (4) Management and organizational skilis (Hotel Management Services, et al.. 1987: 1)-

According to the report, many of the small, fledgling properties appear to be locally owned, having 10-30 rooms, and mostly financed by the Government through the

Barbados Development Bank (ibid). Such smdhotels, referred to as the "srnail hotels sub-sector". tend not to be economically viable as they do not benefit Crom econornies of scale. In addition. because of their small site, and generally lower standard, they are not of great interest to tour operators and wholesaien upon whom the Barbadian hoteliers appear to have become dependent for filling their rooms. particulariy dunng the low seasons (The Barbados Advocate, 1994b:g).

The Government (The Barbados Tourism Authority) in recognizing the dilemma of small hotels, noted the following in its marketing plan L993- 1996:

In view of the bias of the formal distribution network of wholesalers, tour operators and retail agents. towards the larger properties, they are not easily convinced to stock and promote the smdi hotel product. Consequentiy, it is necessary to promote the small hotel directly to the consumers, which the smdl hotels have difficulty in delivering at the levels required, because of small marketing budgets. (BTA, 1993b:80).

Small hotels, however, are an integral part of the accommodation sector in

Barbados. The ownership structure of these hotels is distinctive in regards to the type of management. Generally, an accommodation sector may have several owners hiplmanagement types of structure. An OAS study ( 1987:I-3) identified the following ownership/management structures in the accommodation sector in the

Caribbean: Owner-Operated Hotels- lodging establishments without payroii where ail guest services are provided by the owner and hiskr imrnediate family; Owner-Managed Hotels- the owner personaily pecforms ail the management functions of the business. supported by paid employees consisting of supervisory and other staff; Independent Professionally Managed Hotels- a professionally trained hotel General Manager is put in charge of the operation by the owner(s) of the hotel: Chain-Affüiated Hotels- a system of management under which a group of hotels is operated with the same vade name or corponte identity and offea certain common features; Chain-Managed Hotels- headquarters personnel of the chain constitute a parailel management structure which exercises direct operationai and management control on the hotet's managerial and supervisory staff through a centralized management group-

Al1 five types of ownenhip/management structures exist within the Barbadian accommodation sector.

The accommodation sector in Barbados may also be divided into distinct elements of foreign and indigenous ownenhip. Foreign ownership consists of I) the international foreign corporations, 2) foreign individuals. and 3) long-term residenrs. hdigenous ownership consists of 1) govemment, 2) indipnous corporations (publidprivate). and 3) sole proprieton or family-owned businesses. Primarily, owner-opented, owner-manaed. and independent professionally managed ownership/management structures are evident in indigenously-owned accommodation. Chain-alfiliated and chain-rnanaged ow ners hiphnanagement structures are peculiar to foreign-owned accammodation. in addition to other types of ownership/management structures- 5.2.3.2 Structure of Foreign Ownership

Large-scale foreign or metroplitan involvement in the provision of the tourist plant is in part a function of the srnail size of island economies. A Iack of experience in cate~gfor a domestic tourist market has also meant a more difficult entry by local entrepreneurs into the international tourïst industry, particularty in the face of competition €rom large, well- established foreign metropditan developers (Pearce, 1995: 122).

Hotels owned by Foreign corporations are rnainiy located on the "Platinum Coast".

Five large foreign corporations are from the United Kingdom. with othea from the

United Stated and famaica. Trust House Forte (UK) is perhaps the most well-known of the international groups as the owners of the prestigious Sandy Lane Hotel? Pemberton

Hotels. also from the United Kingdom. have a total of 155 rooms in the Glitter Bay and

Royal Pavilion Hotefs.

The St. James Beach Hotels have been more acquisitive and own five hotels for a total of 356 rooms, ail of which are luxury or "up-market" properties: Coconut Creek.

Colony Club, Cqstai Cove. TarnarÏnd Cove. and newly acquired (1995) Buccaneer Bay.

The Marriott Corporation. owners of Sam Lord's Castie, which has been on the island since the 1970s. has recently divided itself into a real estate and hotel management

Company (The Broad Street Journal, 1995: 1).

The second group of foreign owners in the accommodation sector is represented by a growing group of individuais who purchase luxury villas for rentd or as vacation homes. Barbados' historically stable economy and developed tourism industry has

"Postscript: The Sandy Lane Hotel is under new ownership and is being renovated, It is expected to be re-opened in September 1999. 123

attracted many independent entrepreneurs to its shores. The third group of foreign owners

is categorized as long-term residentdownea and is typically fiom Europe (e-g., the UK

and ), the United States, Canada, and the Caribbean (e.g., Trinidad and Tobago.

Guyana, and ). GeneraUy. long-term residents €rom Europe and North Arnerica are owners of hoteIs, whereas CARICOM nationals tend to be owners of apartment hotek

5.2.3.2 Structure of lndigenous Ownership

The Barbadian govemment fiat became involved in the accommodation sector in the late 1960s with the partial acquisition of the Barbados Hilton and the leasing of the land to Holiday lnn htemationai. tn the early eighties. the govemment, in an attempt to promote local owneahip, proposed the establishment of Heywoods in St. Peter. which was to be a cluster of smail hotels. However, due to soaring constniction costs, the govemment was not able to lease or to rent each unit profitably. The scheme was then rr- assessed and changed into one large hotel cornplex. in L994. Heywoods. the island's largest hotel (288 rooms). was sold to the Barbados Shipping and Trading Co.. a public corporation. for Bds$34 million (Blenman. 1994b:U). It has been refurbished and re- developed into an ail-inclusive resort, Almond Beach Village.

Barbadians historically have invested in the accommodation sector, but to a large extent these investments nave been lirnited to apartment hotels or other small developments. and primarily by individuals or family-owned companies. Large local corporations were reluctant to invest in the tourist plant since they tended to have greater 124 interest in other industries such as sugar (The Bajan, February, 1978b:20). manufacturing. and other industries in the service sector- Some eariy entries into the sector by Locai corporations included Goddard Enterprises (Marine House. Crane Hotel. and Windsor

Hotel). and Barbados Shipping and Trading Company (Cacibbee Hotel) (The Bajan.

February. 1978b:20).

Local individuais and families. despite their relatively Limitted relevant tourism- related experience and/or education. have aiso entered into the industry. This group of entrepreneurs is the focus of the next section-

5.3 The Indigenously-Owned Accommodation Sector

in considenng the nature and scope of indigenous entrepreneurial involvement in the accommodation sector in Barbados. two fundamental questions were posed: (1) How are indigens utilizing the entrepreneurial oppoaunities that tourism presents? (2) What are the nature and scope of the involvement of the imiigens? Thus, the aim of this section is to consider the quantitative, qualitative, and spatial nature of the indigenous entrepreneurs involvement in the accommodation sector. This aim is achieved by first indicating the locational and ownership characteristics of the indigenously-owned accommodation stock. Second, by presenting a general description of the accommodation stock. Third, by considering the peripheral nature of indigenous entrepreneurship in the sector by testing the hypothesis: The indigenously-owned accommodation sector is peripheral in location and function.

[ndigens participate, to varying degrees. in the tounsm industry through both 125 forma1 and informal activities. However. it is their involvement in the accommodation sector that has brought greater recognition to the significance of indigenous tourism entrepreneurship. Forty-six percent of the accommodation units and forty percent of the hotel rooms in Barbados are indigenously-owned (Table 5.6) (Fig. 5.3). Of the 29 accommodation units in the "hotei" category, a mere seven (6 19 rooms) are indigenously- owned, of which two are Iocated on the West coast. While there is Limited representation in this categosr, ninety percent of these hotels rooms are in Group L More than haif of the apartment hotels (52%) and apartments (58%) are indigenously-owned. Of the thirty- three indigenousiy-owned apartment hotels. twenty-eight are on the south coast. Eighty- three percent of al1 indigenously-owned accommodation units are on the south coast. seventy-seven percent in the parish of Christ Church. Although indigens own a greater nurnber of accommodation units in the "apartment" category as compared to "hotels", they O wn twice as many rooms in "ho tels" as oppose to "apartrnents" (Table 5.6)-

On the West Coast, indigenous entrepreneurs own approximately one-third of the rooms in the "hotel" category, one-tenth of the rooms in the "apartment hotels" category and one-haif of the apartments. However, on the south coast. indigenous entrepreneurs own twenty percent of the rooms in the "hotel" category and more than halfof the hotei rooms in "apartment hotels" and "apartments". fifty-four percent and fifty-eight percent. respectively. TaMe 5.6 Eotel Population in Barbados -by category (Percentages)

Hotel Category Indigenous Foreign Ill No. of No. of No. of No. of Units Rooms Units Rooms 1

Group 1 4 559 18 1273 4 Group II 2 39 1 20 1 Group ilI 1 21 (3 da)* 24 1 Total 7(24) 6 19(32) . 22(76) 13 17(68)

" Group 1 7 337 10 876

Total 33(52) 13 18(44) 30(48) 169 l(56)

Group I 9 134 10 204 Group II 13 162 6 56 Total 22(58) 296(53) 16(42) 260(47) 3 Guesthouses 2(SO) 1 3(25) 8(80) 40(75) Total (Ail w46) 2246(40) 76(54) 3 308(60) 1 accommodation) ( 1 II 1 1 Note: * Hotel categorization not known for 3 hotels

( ) Total percentage in category of accommodation

Source: BTA: Rate sheds, WintedSummer, 1993a; BSS, 1995 Fig. 5.3 Omeahip of Hotet Rooms in Barbados, 1994

Hotel Category

Source: Producecl by author, 1998

Within the population of indigenously-owned accommodation units there is far iess representation in the Group 1hotels. For example. despite their significant representation in ownership of apartment hotels, indigenous entrepreneurs had three tirnes as many accommodation units in Group II than in Group 1. Similarly, 59 percent of the indigenously-owned apartments were in Group and 41 percent in Group 1. 128

Indigenously-owned accommodation units are typically srnall-sizedL6.Almost 50 percent of them have less than 20 rmms (Table 5.5). As early as 1983. the Govemment noted that it "recognizes that small twenty to twenty-five room accommodation estabiishments have become marginal economic operations" and intended to investigate possibilities of mergers between these marginal units as an effective means of achieving cost savings. greater operational efficiency and improved economic viability.17 Eighty- two percent have less than 55 rooms. In contrat. 33 percent of the foreign-owned accommodation units have more than 55 rooms as oppose to 13 percent of those that are indigenously-owned.

The beachfront is considered a prime location for an accommodation unit in an island resort. An OAS(1987) study on the Carïbbean found that one of the factors that the most successful hotel hotels had in cornmon was that they were alf Iocated directly on the beach. In Barbados, the hospitable beachfront areas are largely on the western side of the western coastai road where much of the tounsm development is found.

Sixty-three percent of foreign-owned hotels are on the beach. hdigenously- owned accommodation units are typically Located away from the beachfront. Of the population of indigenously-owned accommodation units(n=64). forty-eight percent have beachfront locations. Within an island resort, this locational deficiency impacts negatively on the marketability of the hotel. As one entrepreneur noted, "A hotel off the beach has to work harder for visitors."

16 Refer to Section 5.3-3.1 on the genenl state of the small hotels in Barbados.

" Some smail hotels. referred to as "boutique hotels". are up-scale, exclusive properties and are not considered as marginal econornic operations. r 29

5.3.1 Some Other Characteristics of Indigenous Ownership

Some of the characteristics of ïndigenous owneahip being considered are type of ownership and management. and length of owneahip. Of the forty-one accommodation units considered. thirty-four percent (n=14) were sole proprietorships (Table 5.7). Those accommodation units that were owned by the fdy(49%) generaliy had two types of business arrangements. Twenty percent (n=8) of them were operated as separate legai entities with members of the family as business partners. Twenty-nine percent (n=L2) were otherwise owned by fadymernbers. without benefit of a formai arrangement-

Seventeen percent (n=7) of the accommodation units were operated as lirnited liability companies or as a private corporation.

The ownenhip/management structure of the indigenously-owned accommodation is mostly owner-operated, owner-managed. and independent professionally managed. The type of ownership/management structure of the accommodation units is a function of the size of the unit and not necessarily contingent on type of ownership. For instance. srnall properties that are operated as sole proprietonhips and have a srnail number of rooms. typically less than 10 rooms, tend to be owner-operated- without paid ernployees.

However, larger accommodation units, aithough operated as sole proprietorships are owner-managed or independent professionally managed. That is, the owner, in the case of the owner-managed hotel. or the G-M, performs al1 the management functions supported by paid employees, including supervisory staff.

Embodied within the various types of ownership/management structures is the element of employees. in the 41 cases studied. all of the accommodation units had employees. Ten percent had one employee. twenty percent had two employees, more than one-third had five employees or less. Fifty-four percent had family members as employees. Far fewer accommodation uni& (18 %) had 30 employees or more. to a maximum of 120 employees.

Table 5.7 Type of Ownership (Percentages)

Category Number of Entrepreneurs (n=41) 1 Sole Proprietorship 1 34 1 Family Enterprise 29 incorporated Family Enterprise 20

- - Source: Constructed €rom data, 1994

The length of ownenhip of the accommodation units varied arnongst the indigenous entrepreneurs, from the shortest period of 6 months to the longest period of 30 yem. The average Iength of ownership was 14 yezs. Twenty-five percent of the indigenous entrepreneurs owned their accommodation unit for 5 yem or iess (Table 5.8).

However, 65 percent owned the accommodation for ten yean or Longer. Sorne of the entrepreneurs were prior owners of accommodation units.

In the following section owneship/management structures are considered in regards to their perceived influencelsignificance within global. hernispheric and regional tounst activity spaces.

Table 5.8 Length of Ownership (Percentages)

Source: Compiied by author, 1994

5.3.2 Perceived Sphere of Influence

The various ownershiplmanagement structures are considered in relation to their perceived influence or significance within global. hemispheric. and regionai tourist activity spaces. especially from a marketing and visibility/recognition perspective. In essence, the concept of perceived tounst space is implicitly applied in the assessment.

For instance. tour operators' perceived image of the attracting areas, as weli as the entrepreneurs' (via ownership/management structures) perceived image of the generating areas impact on their behaviour in the paaicular tourist activity space. To a large extent. the perceived sphere of influence of the owneahip/management structures is an implicit assessment of theu peripheraiïty within the aforernentioned tourist activity spaces, as welt as the localhational tourist activity space. The extent to which the 132 ownershipfmanagement structure is perceived by the researcher as a significant factor in the partïcular tounst activity space is rated on a scale ranging from strong to insignificant.

A strong rating suggests that the type of structure has either 90-LW% pmicipation/recognition w ithin the specific tounst ac tivity space and is perceived as significantfimportant within the tourist industry: a rnoderate rating- 50-602; a weak rating- 3040%; and an insignificant rating- 0- 15 percent (Table 5.9).

As a region. the Carïbbean accounts for approximateiy 2 percent of the worid's tourist receipts mivals. Thus. on the whole, the region lacks much significance in a global tounsm context. Caribbean destinations are participants in the global tourkm marketplace as a result of aggressive marketing and promotion. as well as their involvement in distribution networks and systems. Europe is becoming more important to the region. The UK and France represent the most active of European countries with

Less than 5 percent of visitor arrivais to the Caribbean. , Itaiy, and the

Netherlands each contribute less than 1 percent of visitor arrivals. yet are growing markets. Similarly, and . which are even smailer markets. are npidly emerging. Those European markets where international tourism wholesalen are active and are offenng a wide selection of Caribbean packages to the consumer appear to be the most promising (USTïA, L993:3 1). The following is a description of the researcher's perception of the sphere of influence of the following ownership/management structures: owner-operated. owner-managed. independent professionally managed. chain-affiliated, and chain-managed. The perception is IargeIy based on the researcher's observations. experience, and judgement, as well as from a review of the relevant tounsm literature. 133

Owner-operated hotels are typically extremely srndi. Since the owner is responsible for al1 management functions. the extent to which he markets the hotel is largely dependent on persona1 abilities and financial wherewithal. More often than not. such hotels rely on word-of-mouth marketing and retum guests. These types of hotels tend not to be given much consideration by tour operators and wholesalers, Owner- managed hotels are generally larger than owner-operated hotels. The owner performs al1 management functions of the hotel. Not unlike the owner-opented hotel. word-of-mouth marketing and return guests represent the extent of their marketing.

Both owner-operated and owner-rnanaged hotels operated at a vast disadvantage in view of the state-of- the-art technologies and marketing innovations that are used in the industry. The foliowing has been observed about independently owned and operated hotel businesses:

These propertïes are separate and relatively isolated from the global tourism cornplex. Most take room reservations directly by telephone. rather than through an airline reservation system or hotet representative. and do not panicipate in international tour wholesaler programs (USSTA. 1993: 19).

Thus. globally. both ownership/rnanagement structures remain insignificant.

Although independent professionaily-managed hotels are professionally managed. they do not have an affiliation with a chain, and therefore do not benefit frorn cooperative or collective marketing and advenising programs. instead. they must perform their marketing function independently without benefit of economies of scale. Unfortunately. the marketing and promotion efforts of non-chain hotels in the Caribbean are typically too small (OAS. 198759). Wing ( 1995:95) noted that "small and unfocused promotional budgets cannot make any significant impact in the highly cornpetitive international tourism market-"

Table 5.9 Perceived Piesence in Tourism Activity Space

Tourism Type of Ownership/Management Structure Activity Space Chain- Chain- Affdiated Managed

Regionai strong 1 svong weak 1 weak 1 moderate strong 1 strong Global insignificant 1 insignificant 1 weak strong 1 strong

Perceived Presence: S trong- 90- 10%; Moderate- 50-60% Weak- 20-40%; Insignificant- 0- 15% Source: Constmcted by author, 1994

Globally. independent professionally-managed hotels have a weak presence or influence. However. tour operators and wholesalers are more inclined to use such hotels for charter tours simply because they tend to be better managed than owner-operated and owner-rnanaged hotels and are relatively larger and therefore cmaccommodate block reservations and bookings.

Chain-affiliated and chain-managed hotels. the former operating under a cornmon name or corporate identity, the latter managed through a centralized management group. enjoy central resenration service. as well as regional and national advertising and public relations. They therefore have a relatively strong presence globaily.

The Carïbbean region's proximity to the US. Canada. and Latin America causes it to have much significance in a hemispherk context. GeneralIy, the US acccunts for the largest share (approximately 80%) of foreign visitor arrivals to the Cacïbbean. Canada. the second highest contributor. represents 7.5 percent of foreign visitor arrivais. The

Latin Amencan market is currently being wooed by some Caribbean destinations, including Barbados,

Within a hemispheric context. owner-operated and owner-managed hotels have a weak presence, much of this presence king attributed to the fdout from national marketing efforts. independent professionally-managed hotels have a moderate presence. largely because they provide f'lysuuctured environments as well a personaiized service. both marketable attributes for tour operators. The Barbados Tourism Authority has committed to assisting these hotels through direct marketing strategies which would promote the groups products directly to the consumer. Some activities include:

Vigorous promotion of the products to select consumer groups: Improved packaging of the most attractive products or items of the small accommodation group for promotion; The developrnent of and placing the emphasis on unique and exclusive value items; Continuation of the advertising pmgrarn emphasising inclusiveness and prÏce; and Maintenance of a reservation facility (BTA. 1993b:8 1) .

Chain-affiliated and chah-managed accommodations have a strong presence in hemispheric tounsm activity space, particularly those that are based in the US. due to their distribution networkd8

hm-regional (intra-Caribbean) tourism is fairly small and insignificant, accounting for less than ten percent (l989)of foreign visitor mivals. The slow and somewhat limited growth of this market is largely a function of size. Although intra- regional travel is expected to grow in importance. some constraints to it include:

small population size and low standards of living; poor intra-Caribbean transportation: and government-imposed travel ailowance restrictions (USTTA. 1993 :33 ).

Owner-operated and owner-managed hotels do better in regional tourkm activity space.

Word-of-mouth marketing within the spatially limited Carïbbean region is effective. In addition. owners with limited marketing budgets also tend to limit the scope of their marketing efforts to domestic markets. They typically do not have the financial resources to do their marketing in main-tourist-generating countries.

The small size of the domestic market precludes independent professionally rnanaged hotels. and especially chain-affiliated and chah-managed hotels. from concentrating their marketing efforts in this area. Thus. independent professionally- managed hotels have a weak presence in this tounsm activity space. Nonetheless. chain- affiliated and chain-managed hotels. in many instances. have a strong presence because of produc t recognition.

Given some of the characceristics of the indigenously-owned accommodation sector. it is hypothesized that indigenous tourism entrepreneurship in the sector is peripheral, both in location and function.

I X Such Caribbean hotels are represented by US based agents and reservation services and are aftiIiared with US airiine and reservation systems (USTTA,1993:20) 137

5.3.3 Peripherality Within the Accommodation Sector

The purpose of this section is to pcesent the results of the tested hypothesis:

Indigenous entrepreneurship in the accommodation sector is peripheral in location and function. The concepts peripherality of location and peripherality of function as they pertain to the accommodation sector and the tourisrn industry imply that within these contexts there are core and fiindamental elements that are evident and identifiable- The former concept manifesting physical evidence as the peripherai Iocation in this case is evidenced in distance from the beach. That is, given the importance of die beach in an island re~ort'~,those accommodation units that are not on the beach are considered locationdly peripheral. While peripheral tourist locations may typically be identified as those areas outside the core tourist zone. this method of identification is perhaps Less helpful in the case of Barbados due to the smdsize and physical layout of tourist development (see Section 5.2.1).

Peripherality of function may be defined as elements within a system, although serving a function, do not represent the Life force of that system. indeed, such elements are rendered peripheral due to the limited contribution that is made to the overail health of the system. Unlike peripherality of location. peripherality of function is not readily identifiable through physica! evidence. While it is possible to identiQ individual properties that are LikeLy to be peripheral, based on the state of the accommodation and the quality of management, such an approach is unlikely to yield dependable results in the aggregate. An aggregate approach is more likely to capture the generai nature of

"For instance. an OAS study (1987) indicated that one of the factors chat the most successful hotels had in common was that they were a11 located directly on a beach. 138 indigenous tourkm entrepreneunhip in the accommodation sector. and by extension. the contribution of the indigenous element to the sector and to the industry. Therefore. the peripheraiity of the accommodation is established in regards to its type, and contribution to tourist expenditure. The major contributors to tourist expenditure were: Hotels- Group

[; Apartment Hotels- Group 1; and to a Iesser extent, Apartments- Group 1(~ig.5.4)'~.

Multidimensional scaling was used in considering peripherality. Two key variables were used: room rate and beach location, The variable room rate was used because it best reflected the inherent qualities of the accommodation, given the nature of the market which generdly exercises self-regulating pncing, The second variable, beach location, is related to room rates as the location of the hote1 (on or off of the beach) is necessarily reflected or impiicit in room rates.

One hundred and thirty-five accommodation units were considered. The BTA rate sheet ( 1993- 1994) and the BTATs revised List of accommodation units was used-

Nonetheless, this does not necessarily represent a cornpiete listing of accommodation in

Barbados (see Section 5.2). Room rates (rack rates) and beach location were established from the aforementioned publication. Room rates for 5 accommodation units were not available. Accommodation units were categorized as hotels, apartment hotels, apartments, and guesthouses by type of accommodation and group membenhip based on the hotel proups used by the BSS for the purpose of statisticai analysis (Appendix 1). In

"The majorlkey tourist expenditure contributors were established by calculating the average percentage of the tourïst expenditure each hotel groiip and category of accommodation contributed to the total tourist expenditure over five consecutive years (1987-199 1 ). The percentage contribution of each hotel group and category of accommodation was consistent over the five-year period. within 1-3 percentage points- I39 the case of hotels. aparunent hotels, and guesthouses. the rack rates or published rates, for the winter season For a standard or singie room was used. The rack rates for the winter season for a one bedroom were used for apartrnents-

Fig. 5.4 Contribution to Tourist Expenditure

40% 85% Group I 15% Group II, III

Apartment Hotels 76% Group 1

1 Group II, III

Apartments 68% 18% 1 Group I - 32% Group il * Guesthouses excluded as contribution is extremely negligible Source: Constructed by author, 1994

A one-dimensional MDS procedure. using the two variables room rates and beach location. produced conclusive results on both the perïpherality of location and function of 1 JO indigenous entrepreneurship. AU of the hotels were located on a continuum generaiiy ranging from guesthouses to high-priced up-scale properties (Table 5.10). ui effect. the accommodation units were thus Located that seven distinct groupings were readily identified: Low Budget, Budget, Mïddle-of-the-Road. Low-end Up-market. High-end Up- market. Luxury, and Super Luxury. Low budget. budget, and middle-of-the-road accommodations, dl having negative values, were clustered at the lower end of the continuum. Luxury and super luxury accommodation were Located some distance away. al1 had values which, at the exueme. went as high as 6.30 and as Low as one, Values for low-end up-market and highend up-market accommodation ranged €rom -07to -95- The groupings were established by the researcher based on what appeared to be breaks in the listing of coodinate values. Using the coordinates generated from the one-dimensional

MDS. as well as the variables beach Iocation and key tourist expenditure contributor, an

ANOVA showed that the groupings were vaiid (Table 5.1 1).

Ratios on type of ownership, beach Location. and key tourist expenditure contributor were generated on each category of accommodation. Low budget accommodation, mostly consisting of guesthouses. apartments (Group m). and apctrtment hotels (Group II) and hotels (Group II, III). had 56 percent indigenous ownership. When guesthouses were removed from the analysis. there was 75 percent indigenous ownenhip.

Twenty-one percent of the 34 low budget accommodations were located on the beach. A rnere 6 percent of this category of accommodation is in the key tourist expenditure contributors category.

Twenty-oneaccommodation units belong to the "budget" group. Generally. this Lf 1 group consists of apartments (Group 9,apment hotels (Group II. m) and hotels (Group

. Fifty-seven percent are indigenously-owned with 38 percent having a beach location.

Twenty-four percent of the properties belonged to the key tourist expenditure contributors category of accommodation.

Fo rty-three percent of the middle-Of-the-road accommodation is indigenously- owned with 68 percent having a beach location. This category of accommodation consists of apartments (Group I) and apartment hotels (Group I, II). Thirty-eight percent belong to the key tounst expenditure contributors category.

Low-end up-market accommodation is 57 percent indigenously-owned with a much larger number of properties (86%) located on the beach. There are only apartment hoteis (Group 1, II) in this grouping. Seventy-one percent of these accommodations belong to the key tourist expenditure contributors category.

High-end up-market accommodation is 44 percent indigenously-owned with 78 percent of them located on the beach. This grouping consists of apartment hotels (Group

I) and hoteis (Group I). AU of them belong to the key tourist expenditure contributors category.

Luxury and super luxury accommodation are completeiy foreign-owned. Unlike super luxury accommodations which have LOO percent beach location. eighty-three percent of luxury accommodation is Located on the beach. Luxury accommodation consists of apartment hoteis (Group i) and hotels (Group 0. Super luxury accommodation consists of only Group 1 hotels. Al1 of the hotels in both groupings belong to the key tourist expenditure contributor category. Table 5.10 Adapted Classification OP Hoteis

Sandy Lane 6.26 Su~erLumirv Accommodation Sertlers Beach 4.0 L 0% indigenous ownership Royal Pavilion 3-45 100% beach Iocation 100% key tourist expenditure contributor

Glicter Bay Luxuw Accommodation Treasure Beach 0% indigenous ownership Cobblers Cove 83% beach location Almond Beach 100% key tounst expendinire contributor Sandpiper Inn Tamarînd Cove Colony Club Coconut Creek Discovery Bay Club (Rockley) Bar- New Haven Mansion Coral Reef 1 -00

King's Beach 0-95 Hinh-end un-market Accommodation Buccaneer Bay U%indigenous ownership Mango Bay 78% beach location Marriott's Sam Lord's LOO% key tourist expenditure contributor Barbados Hilton Divi Southwinds Sandy Beach Heywoods Island Inn Barbados Beach ViIlage Seaview 0.54

Casuarina Beach Club 0.44 Low-end urbmarket Accommodation Ginger Bay 57% indigenous Sand Acres 86% beach location Crane Beach 7 1% key tourist expenditure contributor Southern Surf Beachcomber Grand Barbados Inn on the Beach Smugglers Cove Sunset Sands Silver Sands Mirabelle Golden Palm Beach Apts. Middle-of-the- road Accommodation Asta 43% indigenous ownership B resmay 68% beach location Welcome Inn 38% key tourist expenditure contnbutor Chateau Blanc Sea Foam Haciendas Oasis Magic Isle Pintes Inn Maresol Mon teray Woodville Kingsiey Cfub Blue Horizon Sea Breeze St, Lawrence East & West Paradise Villas Dover Beach Golden Sands Cacrabank Accra Half Moon Yellow Bird Na Diesie Cari b bee Edgewater Long Beach Club Sandridge Sun haven Worthing Coun Carib Blue Little Bay Rainbow Reef Silver Rock S ugar Cane Club Homar Rentais Sandnft Shangri-La Coconut Coun

Ocean View Budget Accommodation Sierra 57% indigenous ownership Southern Surf 38% beach location Sun Rentals 24% key tourist expenditure contributor Nautilus Golden Beach The Noo k Riviera San Remo Budeet Accommodation cont'd Angler Meridan Inn Salt Ash White Sands Regency Cove Round Rock Standel Sunshine Beach TravelIers PaIm Walmer Lodge Gibbes Garden

Benston Windsurfing CIub Low-Budget Accommodation Robin's Nest 56% indigenous ownership Coral Sands (75% without Guesthouses) Kingsway 2L 5% beach location Tower 6% key tourist expenditure contributor Dover Woods Andrea On Sea The Club Dorisville Myosatis Roman Tropic Chrizel's Four Aces Berni ta Melrose Miami Beach Abbeville Atlantis Adulo Fred la Rose Bonanza Shonlan Inn Airport Vacation Leeton On Sea Fairholme Crysral Waters Bona Vista Rio Rydal Waters Shells Summer Place on Sea Sandy Cove Kingsland Palace Pegwell Inn

Source: Produced by author, 1994 Table 5.11 ANOVA Resulîs r - Sum of df Mean F Sig. Squares Square Between 7-923 L 7.923 8 -294 0.005 Groups Within 127-047 133 0.955 Groups Totd 134-969 134

Results of the analysis located indigenous entrepreneurship at the lower end of the continuum with ownership percentages as high as 57 percent and foreign ownership at the

upper end of the continuum with absolutely no indigenous ownership. Up-scale. foreign-

O w ned acco mrnodations invariabiy were located on the beach whiIe lower-end indigenously-owned accommodation had diminishing representation on the beach when rnoving up the continuum. So that. as the standard of accommodation improved so to did the representative percentages in beach location. The results of the one-dimensional

MDS conclusively confirmed that indigenous entrepreneurship is peripheral in location.

Similariy, the peripherality of function regarding indigenous entrepreneurship is borne out by the ratio of accommodation units at the top end of the continuum that belong to the key tourist expenditure contributor category (100%) as oppose to 6 percent at the lowest end where there is the greatest representation of indigenous entrepreneurs hi p.

Using the beach location and key tourist expenditure contributor percentages/values as "x" and "y" coordinates. respectively, the categories of accommodation were positioned on a map of peripheraiity (Table 5.12; Fig. 5.5). The map captures the dichotomous nature of indigenously-owned and foreign-owned accommodation. Lower-end, predominantiy indigenously-owned acçommodation, are peripheral in location and function while upper-end, exclusively foreign-owned accommodation, are centrai in location and function,

Table 5.12 Peripherality of Location and Function (by adapted classification of accommodation)

Classification of Indigenous Peripherality of Peripherality of Accommodation Ownership Location Function (Adapted) (Percentage) (Percentage (Percentage total beach location) tourist expenditure contribution) 1 Super ~uxury LOO I

1 Middle-of-the- Road 1 Budget 1 Low Budget Source: Constructed by author, 1994 Fig. 5.5 Map of Perïpheraüty

Central in Function

HUALA StA a a a

LUA CI

MRA 40 i O

30 i BA a 20 a

104 L8A O 0 -1 O 1 1 1 1 1 1 I w I b -IO O 10 20 30 40 50 60 70 80 90 100 170

Peripheral in Function

Classification of Accommodatioq SLA- Super Luxury MRA- Middle-oGthe-Road LA-Luxury BA-Budget HUA-High-end Up-market LA-Low Budget LUA-Lowend Up-market

Source: Constructed by author, 1994 5.4 Suummary

The aim of this chapter was to describe the histoncal development of the accommodation sector and to locate the activities of indigenous tourism entrepreneurship so that they could be critically considered and exiimined. This Cm was achieved b y descnbing the qualitative, spatial. and quantitative growth and development of the accommodation sector from the pre-emancipation period through to the present ( 1994-S), as well by descnbing some of the characteristics of the indigenously-owned accommodation sector.

Throughout the 1960s and the 1970s al1 categories of accommodation steadily increase. with the exception of guesthouses. which dropped by 17 percent between 1970 and 1979. In the 1980s there was a steady decline of accommodation units in dl categories of accommodation. with the exception of apartment and apartment hotels which climbed by 30 percent during the period of 1980-1989. in the early 1990s. as visitor arrivals continued to plummet. al1 categories of accommodation units dso decreased. By 1994. the hotel bed capacity was 1 1.485. lower than the 1979 capacity of

1 1,843 hotel beds,

In 1994. Barbados had 140 listed units of accommodation and 5554 listed guest rooms. Twenty-one percent were hotels. forty-five percent were apartment hotels. twenty-seven percent were apartrnents. and seven percent were guesthouses. The bulk of the accommodation (65%)has less than 35 rooms. Generally apartment hotels and apartments are srnail-shed. with over 50 percent having less than 20 rooms.

There are dichotomous spatial and qualitative variations in the accommodation 1-49

sector in Barbados, Concentrations of accommodation exist on the south coast (Christ

Church) and on the West coast (S t. James and St- Peter). Typicaiiy, the south coast serves

the "low-end" market. On the-west coast (Platinum Coast), where the luxury hotels are

situated. the "up-scale" market is served. Sixty percent of al1 accommodation uni& and

fifty-four percent of al1 rooms are on the south coast, while thirty-three percent of al1

rooms are on the West coast. Conceptually, there are essentially five spatially hierarchical

tourist accommodation zones in Barbados- Generally. the overall quality of the

accommodation decreases with distance away €rom the core tourist zone.

With some exceptions. the tourist plant in Barbados is in need of refurbishing and

upgrading. In 1994. much of the construction and upgrading was carried out on the West

coast. So that the West coast is poised to compte intemationaily while many of the

properties on the south coast (many of them apartment hotels which are indigenously-

owned) rernain in a state of disrepair.

in L994. fifty-four percent of di accommodation units and sixty percent of al1

hotel rooms were owned by non-indigens, the greatest representation in hotels and apartment hotels. Generally, indigens owned the greatest number of smaU hotels (less

than 20 rooms) while non-indigens owned most of the relatively larger hotels (more than

55 rooms). hdigenously-owned accommodation units tend to be located away from the beachfront (52%)whiie far more foreign-owned accommodation units (63%) are on the beach.

Ostensibly, there are five ownership/management structures in the

accommodation sector in Barbados: owner-operated. owner-rnanaged, independent professionaily managed, chain-affiliated, and chain-managed- The various

ownership/management structures were considered in relation to their perceived influence

or significance within global, hemispherïc. and regional tourist activity spaces.

particularly from a marketing and visibilitykecognition perspective.

Owner-operated and owner-managed ownership/management structures were

generally perceived as insignificant and isolated from the global tourkm cornplex, with a

moderately stronger presence regiondy- Independent professionaily-managed structures

had little clout globally, with a moderate presence hemispherically- The small size of the regional

market precludes independent professionaily managed structures hmconcentrating their efforts in this area. Chain-aff%ated and chain-managed hotels have a strong presence globally, hemispherically. and regionaiiy due in part to their name recognition and their extensive marketing ane distribution networks.

Tt was hypothesised that indigenous entrepreneurship was peripheral in location and function. Accommodation units that were not on the beach were considered locationally peripheral while perïpherdity of function was established in regards to the type of accommodation and its contribution to tourist expenditure. Using variables of room rate and beach location, a one-dimensional mu1tidimensional scaling procedure produced conclusive results on the peripherality of location and function of indigenous entrepreneurship. Al1 of the accommodation units were Iocated on a continuum ranging from guesthouses to high-priced. up-scale properties. fonning seven distinct groupings of hotels: low-budget. budget, middle-of-the-road, low-end up-market. high-end up-market, rsr luxury, and super luxury. The Low-budget (excluding guesthouses). budget, and middle- of-the-road hotefs were located away from the beach. They Iargeiy consisting of Group II and Group iiI apartment hotels and apartments and tended not to belong to the key tourïst expenditure contributors category- These hoteis had an extremely high percentage of indigenous ownership. Converscly, low-end up-market and high-end up-market, Luxury, and super luxury hotels were located mostly on the beach, mosdy belonging to the key tourist expenditure contributors category, and had very litde to no indigenous ownership-

This chapter considered how indigenous entrepreneurs have become entrepreneurially involved in the accommodzttion sector. The following chapter considers the nature of the indigenous entrepreneur in the accommodation sector in response to the research question regarding who is responding to the apparent opportunities. CHAPTER 6

INDIGENOUS ENTREPRENEURS IN THE ACCOMMODAI'ION SECTOR

Entrepreneurid development is of the highest importance whether much reliance is king piaced on the private sector or the public sector for future economic growth (CARICOM Secretariat, 198S:2).

6.0 Introduction

In this chapter, the results of the analysis regarding the research question "who is responding to the apparent opportunities in the tourism industry" are presented. The indigenous entrepreneurs in the accommodation sector are not a monolithic entity.

Rather. the entrepreneurs are diverse in their background. education and training, attitudes and perceptions. These factors impact on the kvel of involvement of the entrepreneurs in the sector and their willingness and ability regarding the appropriation of structural support. Tt is therefore incumbent upon poiicymakers and planners to undentand the composition of the indigenous entrepreneurs for the creation of effective policies. Policies which address the advancement of indigenous entrepreneunal development/involvement. promote the appropriate development of the tourkm industry. as well as enshnne qudity development for the population.

The aim of this chapter is to elucidate the nature of the indigenous entrepreneur in the accommodation sector in Barbados- This aim is achieved by first eiaborating on the 153

socio-demographics of the entrepreneurs and the entrepreneurid background of their

families. Second, the education. training. and experience of the entrepreneurs. particularly

those that are tounsm-related. are considered nird. the attitudes and perceptions of the

entrepreneurs toward the tourism industry are examined- And finaiiy. a srpology of the

indigenous entrepreneurs in the accommodation sector is presented.

6.1 Background of the Indigenous Entrepreneurs

In L987, Cooper and Dunkelberg conducted a comprehensive study examining

the demographic characteristics of entrepreneurs. compared their findings to earlier

research, and confied that entrepreneurs:

tended to be better educated [than non-entrepreneurs], corne from farniiies where the parents owned a business. started firms related to their previous work. and Iocated where they [were] already living or working (in Low and McMiiian. 1988: 148).

Similar demographic characteristics are used in establishing the nature of the indigenous tounsm entrepreneurs. In the following section, the socio-demographic characteristics. as weli as the familial entrepreneunal background of the indigenous entrepreneurs are considered. In subsequent sections their education (section 6.2.1). experience (section

6.2.2), and their reasons for entering the indusuyhation of enterprise (section 6.3.1) are explored. 154

6.1.1 Socio-Dernographie Characteristics

The socio-demographic characteristics of the indigenous entrepreneurs (age, sex, ethnicity, and level ofeducation) were established by the questionnaire. Of the forty indigenous entrepreneurs studied (Table 6.l), forty percent were over 60 yeôrs of age: a large number of them are retirees. Seventy-three percent were over 50 years of age.

Thirty-three percent were between the ages of 50-59 years, with twenty-two percent falling between the ages of 4049 years. Only nvo of the entrepreneurs (5 percent) were less than 39 years of age. The actuai age of the entrepreneurs was not sought; however. sorne respondents offered this information- It would appear that the oldest entrepreneur was 88 yean of age, while the youngest was 37 years of age.

The sex of the entrepreneur was consideied important so as to establish whether there was a greater propensity for males or females to become entrepreneurs in the accommodation sector, in an earlier study on predicting success in Barbados' tourist industry, Lerch and Levy (1990) found that gender was a significant factor in management and ownership of locdly-owned accommodation and that female managers/owners were quite common, Sixty-eight percent (n=27) identified themselves as the key individual (decision-maker) in the business. However, this ownership division based on gender may be rnisleading as a later question on the ownership of business revealed that few (32 percent) are sole proprietorship businesses. in fact. in many instances (5 1 percent), a husband-wife team owned andor managed the hotel. Typically. the wife was responsible for the operational aspects of the business while the husband managed the financial/administrative concerns. in addition to having full-tirne employment otherwise. Additionally, many of the businesses tended to have family

involvement in various capacities,

Of the entrepreneurs interviewed sùtiy percent were of Afncan descent and thirty- eight percent were non-Afiican. The ethnicity of one entrepreneur was not ascertained.

Table 6.1 Socio-Demographic Characteristics of Indigenous Entrepreneurs

Percentage I

30-39 2 5 4049 9 22 50-59 13 33 over 60 16 40

Male 27 68 Female 13 32 1 Level of Education 1 Primary (Gr. 6) 6 LS Secondary (Gr. 13) 11 28 I Tertiasy 23 57 (CollegeNniversity) Source: Table constmcted using data, 1994 156

6.1.2 Familial Entrepreneurid Background

The indigenous entrepreneurs in the accommodation sector, for the most part,

have a family history of entrepreneunal involvement, Largely in the senrice industry.

When asked whether their family had a background in businessL.eighty-three percent

(n=32) (Table 6.2) of the entrepreneurs indicated that there was some degree of familial entrepreneurid involvement ranging from the hawking of vegetables to shoe manufacturing. Thirteen percent (n=5) had familial history of entrepreneunal involvement in the tourkm industry. Currently. thirteen percent (n=5) have family rnembers entrepreneurially involved in the tourkm industry.

Table 6.2 Familiai Entrepreneurial Background (Percentages)

Familial Farni Iiai Family currently Response entrepreneurid entrepreneurid entrepreneuriaily background background in involved in n=39 tourism industry tourism industry n=39 n=39 t Yes 83 13 13 No 17 87 87 Source: Table constmcted using data, 1994

Typically. the family memben who had a background in business were parents. jrandparents, and to a iesser extent aunts. uncies, and siblings. Fifty-six percent (n=2?)

I One entrepreneur chose not ta respond to the question- L57

of the entrepreneurs had parents who had entrepreneurhl experience. typicaiiy in

wholesalelretail as grocen or shopkeepers. Only two entrepreneurs had parents who were

involved in the tourism industry as hoteliers, as weii as a travei agency owner. To a rnuch

lesser degree. the grandparents of the entrepreneurs were entrepreneurially involved.

Twelve of the entrepreneurs (3 1 percent) had grandparents who had businesses. again

mostly as grocerds hop keepers. One grandmo ther O perated a guesthouse. Five

entrepreneurs (13 percent) noted that they had aunts andor uncles who were entrepreneurialiy involved. Of these, two had auntsluncles who operated hotels. in

regards to the siblings of the entrepreneua. eighteen percent (n=7) had brothers and/or

sisten who owned a business enterprise. Only one sibling had a tourism-related business-

a travel agency. In addition. the entrepreneurs were asked if there were any offspring who were entrepreneurially involved in the tounsm industry. Ten percent (n=4) of the entrepreneurs had children who were entrepreneurially involved in a diverse cross-section of tourism-related enterprises. such as restaurants. villa management. car rental. and

tours. As well. some hoteliers (33 percent) had their children. or some other close relative. involved in various areas of their operation. This tendency was particularly evident amongst the aging hoteliers.

6.2 Education, Training, and Experience

We recognized . . .that an important part of the strategy for econornic revitalisation centred around building up and strengthening of Local and regionai management skills. technology and entrepreneurship in al1 of the sectors of our mixed econorny. Such skills and such entrepreneurship are the ultimate foundation for the achievement of structurai transformation and high levels of productive employment (The Barbados Consensus. 19852)-

The education, training and experientiai characteristics of the indigenous entrepreneurs, both generai and tourism-specific, are indicated in thÏs section- The indigenous entrepreneurs were asked to indicate the highest level of formal education completed, as well as (1) the training and/or experience they ha& and (2) whether the present business is the first business managedlowned and the types of businesses they have previously managed/owned. Furthemore. they were asked to indicate the courses that they believed woutd be useful to them in their business, as weli as the corresponding institutions where these courses would be taken-

A comprehensive and in-depth understanding of the indigenous entrepreneur was obtained by grouping them according to their educationai level. The four groupings are

"prirnary". "secondary". "college". and "univeaity". Using education to group the entrepreneurs is appropriate since education is one of the key demographic characteristics of entrepreneurship. In addition. it is general knowledge that the level of education impacts on the quality of decision-making abilities. The following sections are a surnmary of the responses of the entrepreneurs.

6.2.1 Education

Appropriate education. training and experience are prerequisites for success in tourism entrepreneurship. In this section the education and training of the indigenous entrepreneurs are examined. Education is differentiated from training in that education 159 deliver principles and allows for the interpretation and evaiuation of knowledge. Training on the other hand, is concerned with the specific application and development of skills-

The education level of the indigenous entrepreneurs ranged from school leaving

(grade 6) to universit., with the majority of the entrepreneurs (57 percent) having a tertiary education (Table 6.1). Overail. ftve of the entrepreneurs (12 percent) had previous formal tounsm education (Table 63)- Those entrepreneurs with oniy a pnmq education (n-6) were generally over 50 years of age. many having retired from their former full-time employrnent. With the exception of one entrepreneur who had taken an extra course on the management of small business, none had received forma1 instruction on business. Similarly, those entrepreneurs who had a secondary level education (n=ll) were either retired or close to retirement, the exception king the youngest entrepreneur in the group of respondents. Two of the entrepreneurs in this group ( 18 percent) had taken extra courses offered by the OAS~CWsuch as management. marketing, and front office management. This group comprises the iargest proportion (64 percent) of fernale entrepreneurs.

Eighty percent of the indigenous entrepreneurs with a college education were generally close to retirement age or had retired. Their formal education was in a myriad of fields such as nuning. refrigeration and air-conditioning, and electronics. Forry percent of this group had been schooled in hoteihospitality or business management/adrninisuation. hnplicit in many hotel/hospitality programs is an elernent of training or internship. as is the case with one such entrepreneur who received in-house

OASICHA represena the Organisation of Amencan States and the Caribbean Hotel Association. 160

training at a chah hotel while another worked on a cruise Liner. Half of the entrepreneurs

in the "college" group took extra courses and seminars/training in institutions such as

Corne11 University. the Barbados Lnstitute for Management and Productivity (BIMAP),

and the Barbados Tourism Authority ( BTA), They represent the largesr group of

indigenous entrepreneurs (60 percent) who pursued extra coursesfworkshopslserninars

beyond t heir initial formal tertiary education.

Thirty percent of the indigenous entrepreneurs are university educated (n=i3)-

Seventy percent have bachelor degrees (one incomplete) and twenty-three percent have

mastefs degrees (2 MBA's). Fifty-four percent of this group had formal training in

business management. one entrepreneur having and education in hospitality management.

Two indigenous entrepreneurs acquired additional skills/kno wledge through extra courses.

Generaiiy, the groupings of entrepreneua were somewhat evenly divided by educational Level. with the exception of those having a pcïmary level education. %y far, those entrepreneurs having a college education had more hotel management (tourism- specific) forma1 education. and had taken extra hotel management courses. or some equivalent. While many of the indigenous entrepreneurs did not have a focmal education in hotel/hospitality management. even fewer had pnor tourism experience. The following section explores how, if at dl. the indigenous entrepreneurs sought courses, programs, workshops or seminars to buttress their largely Limited knowledge of the industry andior

management- Table 63 Tourism Education and Experience of Indigenous Entrepreneurs (Percentages)

Response Previous Formal Tourism Previous Tourïsm n=40 Education Experience I Yes 12 28

Source: Table constnictd using data, 1994

6.2.1.1 Additional Training

The indigenous entrepreneurs were asked if there are any courses being offered at an institution which may be useful to them in th& business. They were also asked to indicate what has prevented them from taking courses thus far (Question #20). The purpose of the question was threefold.

( 1) To present an opportunity for the entrepreneurs to acknowledgefreveal their need for possible additional instruction and upgrading; (2) To ascertain the areas where they rnay need assistance and to establish their awareness of where they rnay find that assistance; (3) To observe/establish their attitude toward the importance of knowing more about the industry, the sector. and management.

Thirteen percent (n=5) of the entrepreneun indicated that there were specific courses that they were interested in taking. Other entrepreneurs were more generd or even non-specific in indicating the type of course. Two entrepreneurs were interested in managementhotel management and cornputers. All of the entrepreneurs who expressed an interest in taking extra courses have a tertiary level education, predominantly at the university level.

Generally. those few entrepreneurs who were interested in upgrading their skills knew where the courses were offered- Only those entrepreneurs who indicated an interest in cornputen (13%) did not know where the course was offered The institutions and organizations most mentioned were OASKHA. BIMAP. the University of the West

Indies (m.The Barbados Tourkm Authority (BTA) and the Barbados Hotel and

Tourism Association (BHTA), and the Barbados Comrnunity Coiiege (BCC).

Those entrepreneurs who gave iess-than-dTïrxnative responses (85 percent) fell into two generai categones: (a) Entrepreneurs who had some awareness that perhaps they needed a course- "just a course at BIMAP." and ". .. not sure. something at the

Barbados Comrnunity College." and (b) those who felt they did not need a course. Sorne of their comments were:

"What's there to know . . . the property does not need high management"; 'The apartment-hotel concept runs itseif '; "...just want to pay (my) and maintain the property"; "...I cm teach"; "...already have formal trair?ing . . .expenence"; "...courses are dumb and boring": "...want my children to take over*'; "...no time. I prefer to spend my time in the business. . . .can't leave the business"; "too 016 . . . want someone to take over. . . . forgethilness, . . . (ill) heaith; "-..no funding."

in effect, a large proportion of the entrepreneurs had no or very little interest in upgrading their skills. So that, not only did many of them not have the formai tourism education and training. they also lacked interest and enthusiasm in improving their present skills or attaïning new skills. These facts considered. it then begs the question as 163

to why many of them chose to enter this specific sector of the tounsm industry. The

folowing section considers the indigenous entrepreneurs' attitudes toward and perception

of the tourism industry.

6.2.2 Experience

Indigenous entrepreneurs were asked to indicate their experience in the tounsrn

industry prior to becoming the owner of the presenc accommodation. Twenty-eight

percent of the entrepreneurs had some experience in the tounsm industry (Table 6.3). The

typicai type of experience suggests significant responsibility in manageriai cûpacities or

ownenhip. Not unlike the results on education which indicated that the university group

had more hotel management (tourism-specific) formai education. the bulk of the entrepreneurs having prior experience in the industry was also in the "univeaity" group.

Within the primary group. one entrepreneur (17 percent) had prior tourism expenence. first as a barman and later as the owner of the bar in the hotel he now owns.

This entrepreneur also has further industry-related experience as the owner of a restaurant. Two entrepreneurs (18 percent) from the "secondary" group had a Iengthy expenence in the industry, both starting in non-managerial capacities and moving into positions of management and /or ownership of a hotel property. The "college" group. in keeping with their general tendency toward having a formai educationai background in the industry. aiso had significant formal training (30 percent). In particular. the three entrepreneurs who had formal hoteihospitality education had prior experience in the industry in positions such as Rooms Division Manager (Canada). Assistant Manager, Restaurant Manager, Front Desk Manager, Food and Beverage Manager, and General

Manager. Thirty-eight percent of the "university" group had prïor tourism experience-

This group therefore had the Iargest representation in regards to tourism experience. aibeit

somewhat less formal experience than the college group. The prior tourkm expenence of

the entrepreneurs in this group included working in the family business, managing

restaurants, as well as the management of a hotel in a multinational chain of hotels.

Although the indigenous entrepreneurs pnerdly had lirnited experience in the tourkm industry, they were not devoid of some form of business and /or professional experience, At least twenty-eight percent of the entrepreneurs are employed elsewhere in paid positions'. Within every educational group the entrepreneurs have developed skills through their formal education and/or full-time past or present employment/profession which lends a measure of expertise in the many diverse areas of hotel management. For instance, in the prïmary group, some entrepreneurs had experience in areas such as developer/builder/reai estate agent. repaiman. and mm-rnaking/import-export. In other groups entrepreneurs had work experience in areas such as accounting, management services (human resources). restaurant management. carpentry, engineering/constniction/contractor.refrigeration and air-conditioning, electricaYplumbing, and sales. Each of these skills bears some relevance to the construction, operationai management, and/or maintenance of the hotel.

3 On several occasions ir: was intirnated to the researcher chat some of the hotel owners use funds gained from full-time employrnent to subsidize tledgling hotel businesses- Although this daim is somewhat difficult CO substantiate. the researcher indeed observed in a number of hote1 properties the absence of hotel _euesu- 165

in an effort to further establish the skills the entrepreneurs brought to bear on their present entrepreneurid endeavor. as well as in establishing the extent of their entrepreneurid involvement otherwise. they were asked to identi fy former andior present business ownership and/or management involvement4.

Table 6.4 Business Experience of Indigenous Tourism Entrepreneurs (Percentages)

Response First Business First Business Other n=40 Managed Owned Businesses Presently Owned . Yes 30 40 50 No 70 60 50 Source: Table constructed using data, 1994

Hal€ of the entrepreneurs currently own one, two or more businesses, in addition to the hotel (Table 6.4). Twenty percent of these businesses are part of the tounsm industry. Such businesses include a travel agency and tour Company. vacation condominiums, beach house/villas, ice cream parlor, car rentai, tourist schooner, and another hotelS. Eighty percent of these businesses are non-tourism-specific, although

4 Ahhough, to the reader. the first part of the questions (Questions #I8 and #19- Appendix 2) may appear ambiguous in requiring a "yes" or "no" response. the second part of the question illuminates and darifies the gist of the question. In any event, question #1. part 6. which ask the entrepreneur to Iist the name and location of their other businesses, as well as question #15 related to past experience, provide a cross-check on the responses on questions CC1 8 and # 19.

' It is interesthg to noie that sorne entrepreneurs may indeed have classes of accommodation chnt may be statisticalty grouped under "recognized" and "unrecognized" accommodation. 166 some, such as rental apartments. supennarkets. transportation (private-public), and contracting may repnsent ancillary tourkm services.

Venicai and horizontal integated business practice is evident in the indigenous ownership patterns. For instance, some entrepreneurs have horizontally integrated businesses in that in addition to owning a hotel, they also own other forms of accommodation, such as a set of vacation condominiums or beach houses, Similarly. some entrepreneurs have vertically integrated businesses as they are involved in services other than that of accommodation, such as various forms of transportation (minibus

(pnvate-public transportation). car rental). and food (restaurant. ice-cream parior).

Indeed, for some of the entrepreneurs, the integration occurred when they became involved in the accommodation sector as they previously ownedloperated related businesses.

Although forty percent of the entrepreneurs were first-time business owners. seventy percent had management experience prior to becoming involved in the present enterprise (Table 6.4). These management experiences inciuded informal activities such as selling oranges (wholesale), business ownership (trucking, construction, impodexport). office management (Co-op Development. Director of Agncuitural

Project), line management (Rooms Division Manager. Bar Management. Restaurant

Management). and upper management (Assistant Director. Vice President. and General

manager). in effect. entrepreneurs tended to gain management experience through small- scde business ownership as well as through some large-scaie management, training and employment. Not established however, but deemed important in assessing credibility in regards to the entrepreneurs management skills are concerns in regards to former management experience such as, the length of the management tem, management responsibility. and the overall quaiity of management Nonetheless. the entrepreneurs may be described as having exposure to business and business management.

Generally, the indigenous entrepreneurs have varying levels and types of education and a wide range of experiences in manageriai and/or owneahip capacities.

Relatively fewer. however. have tourism education andlor experience. specifically as they relate to the accommodation sector- The following section elaborates why the indigenous entrepreneurs entered the tourism industry and establishes their attitudes and perceptions in regards to the indusvy and business/entrepreneurshipP

6.3 Attitudes Toward and Perceptions of the Tourism Industry and Business

Increasingly, our education and training systems (formai and informai) must equip our school-leavers and young people with skills needed both for employment by others and for self employment and must encourage the development of attitudes and motivation conducive to the dispIay of initiative and resourcelulness (CARICOM Secretariat, 1985:3).

The attitudes and perceptions of the indigenous entrepreneurs as they relate to the tourism industxy and their business enterprise are examined in this section. While penonality characteristics and demographics are typically used to describe the entrepreneur, increasingly it is recognized that attitude is aiso an important element in undentanding the entrepreneur (Robinson et al.. 199 1). Robinson et ai. ( 199 1: 17) defined attitude as "the predisposition to respond in a generally favorable or unfavorable rnanner with respect to the object of the attitude-" They further noted that attitude has three components: cognitive, affective. and behavioral.

( 1) The cognitive component consists of the beliefs and thoughts an individual has about an attitude object; (2) The afféctive component consists of positive or negative feelings toward the object; and (3) The behavioral component consists of behavioral intention and predisposition toward the object (ibid.).

The following questions were asked of the entrepreneurs to ascertain their attitudes and perceptions (Appendix 4)-

( L) Why did you enter into the specific aredservice within the tourisrn industry (Question #9)? (2) Are you satisfied with the progress of the business (Question #23)? (3) Do you intend to operate at the same level of business in the future (Question #24)? and (4) Are there any potential obstacles to the expansionldevelopment of the business (Question #25).6

6.3.1 Reasons for Entering the Industry

The indigenous entrepreneurs entered the tourisrn industry, and more specifically the accommodation sector, for varying reasons. While there is a clear dichotomy betwcen the "primary" group and the "college'Tbuniversity" groups in regard to their reasons for entering the indusüy, and the actuai enuance process. the earlier procedure of examining the entrepreneurs by educational grouping will oniy be Loosely followed as it proves to be less useful. In fact. having the appropriate education, training or even experience was not

The response options for these questions have been withheld. See entire parts of the questions in Appendix 2. 169 the primary motivation given by many of the entrepreneurs for entenng the industry or the accommodation sector-

The respondents' reasons for entering the industry and the sector are categorized as follows: Iand ownership. training and experience. whidaccidental. and investment Of course. irnplicit in a9 of theses reasons is the motivation of profit. Some entrepreneurs used a cornbination of reasons for entering the industry and sector.

Previous land ownership, or some variation of thereof. was the primary motivation behind many of the entrepreneurs (63 percent) entering the industry and the sector. Generally, "previous Iand ownership" cmbe divided into the following two categories: ( 1) inhentance. and (2) previous purchase. The category "inheritance" represents situations where either the land or landmotel was inherited by the entrepreneur or where the entrepreneur has assumed ownership from an aging parent. The "previous purchase" category represents those situations where the entrepreneur had unoccupied parcels of land on hand or land with some type of structure on it. For instance, sorne entrepreneurs had a personal dwelling or residential rentd unit on the property before converting it into a hotel. or they simply made an addition ont0 the existing persona1 dwelling and are using it as a tounst accommodation as well (Table 6.5).

~Manyof the entrepreneurs who had a primary education and who were Iargely without tourism experience appeared to have no other compelling stated reasons for becoming involved in the industry other that "previous land ownenhip". In fact. some of these entrepreneurs simply "just chose the indusüy". One entrepreneur, for instance. reasoned chat it was too problematic dealing with tenants so the structure was converted 170 into a tourist accommodation. This element of flexibility in converting dwellings into courist accommodations or vice versa appears to provide a measure of security (buffer) to the entrepreneurd

Five entrepreneurs (13 percent) "inhenteû" their situation by either a formai inheritance as a result of the death of a family member or by assuming the responsibility of the hotel from an aging parent By far. the most fiequent reason given by the entrepreneurs related to "previous purchase"- These entrepreneurs simply chose to constmct a hotel on their previously purchased property instead of, or in addition to, a personal or residential dweiiing. Entrepreneurs felt is was a good option for land use.

Training and experience was the second most frequently given reason given for choosing the tourïsm industry. Indeed, those entrepreneurs who gave this reason (22 percent) had both tertiary level education as well as formai education and training, and experience in the tourism industry. This group of entrepreneurs did not give "land ownership" as a reason for entering into the industry. In fact, unlike the other entrepreneurs who typicdly hûd the accommodation built. each entrepreneur in this group purchased the accommodation, if not as a going concem, then with much of the physicd structure intact. Some of these entrepreneurs were employees or managers in the hotel prior to purchasing it.

7 However. in accordance to the Hotel Aids Act. Cabinet approval is needed to use a horet (as defined by the Act) for any other purpose other than that of an hotel. within ten years of date of publication notice (Hotel Aids Act. 1967-25, Section 18: 1). Table 6.5 Reasons for Choosing Location of Accommodation (Reason for Entering Industry)

Number of Percentage Accommodations (n=41) Previous Land Ownership Aireadyownedland 1 7 1 17 Akeady lived on land 3 7 Parents owned land 4 10 Purchased land 7 17 specifically to construct accommodation Inherï tance/gift 3 7 Other Hotel for sale 1 7 1 17 Previousiy employed in hotel

------Proximity to home 3 7 Good location 1 10

Source: Constmcted €rom data by author, 1994

Another reason frequentiy given by the entrepreneurs for entering the tourism

industry and the sector was that of "a whim" or "by accident". Eighteen percent of the entrepreneurs gave such whimsical reasons as: "-. . a relative has one (hotel)"; ". . . influenced by a fnend and grew to like the industry"; "1 always entertained abroad and thought it appropriate to do something in the industry." Yet others appear to have 172

stumbled into the industry: "1 was interested in real estate. I wasn't looking for a hotel per

se": and "Tt happened by accident: 1had some money."

Fewer entrepreneurs (13 percent) gave "investment" as the reason for entering the

industry and sector. Many of them chose to build an accommodation so as to pnerate an

income rather than a persona1 dwelling.

6.3.2 Satisfaction with Business

The following section examines the extent to which the entrepreneurs were

satisfied with the progress of their business. To further establish the entrepreneurs'

attitudes toward the tourkm industry and their perceptions of business. as well as the

accommodation sector, they were asked whether they were satisfied with the progress of

their business. Their responses fell into three categories: very satisfied, satisfied, and

dissatisfied (Table 6.6). Comrnents indicating satisfaction with the progress of the

business were grouped based on the degree of satisfaction: very satisfied (no

qualifications). satisfied (qualifications), and dissatisfied.

Thirty-eight of the entrepreneurs responded to this question. Of these. focty-seven

percent (n=L8) were very satisfied with the progress of their business, twenty-nine percent

(n= ï 1) were marginally satisfied, while twenty-four percent (n=9) were dissatisfied-qn short, seventy-six percent of the indigenous entrepreneurs were. to varying degrees. satisfied with the progress of their business. Entrepreneurs from dl education levels were

Thox entrepreneurs who expressed dissatisfaction with the pmgress of their business are Iargely the owners of those hotel propenies in which the resesircher observed an absence of hotel guests- represented in each category. However. those entrepreneurs with forma1 uaining and experience were typicaiiy satisfied with the progress of their business.

Table 6.6 Dimerences in Respondents' Attitudes Toward Satisfaction with the Progress of Business

Very Satisfied occupancy able to stay out of the property too small to good and red make a big profit consistent satisfied with growth, property too small to met targec of not income be viable spreadiag able to pay debts business too slow occupancy wouid prefer better business too over seasons financial footing, but spasmodic occupancy satisfied with staff last four years in the always high training doldrums at 90 percent very Low to no business occupancy better than want better occupancy projections rate business has dissatisfied with paid for itself attitude of ernployees- business has not giving 100 percent held its own unsupportive staff increased profits merely cover business expenses since just meeting financial installation of cornmitments satellite dish marketing not as it introduction shouid be of cornputers governrnent needs to to business do more marketing

Source: Table constnicted using questionnaire data, 1994 174

Some of the more frequently given reasons by the entrepreneurs for their

satisfaction were their ability to meet financiai commitments and being able to stay out of

debt. as weU as good occupancy rates. For instance. one entrepreneur noted that he was

very satisfied, "not that the business was necessarily making a lot of money. however.

financial commitments are being met." Another commented that he was satisfied with

the progress of the business because it had paid for itself. Yet another noted satisfaction

because the business had held its own. Examples of cornments of satisfaction based on occupancy rates were. ". . .met target in terms of spreading out occupancy over the seasons"; ". . .occupancy good and consistent": and ". . .occupancy always high at about

90% of the rooms."

Areas of dissatisfaction were more extensive. Entrepreneurs were dissatisfied

with the slowness of business/low occupancy. staff, size of property. income, and marketing. Examples of some of their comments are: ". .. want to unload property . . .

funding absent. . .staff unsupportive." Another noted that ". . .property too srna11 to be viable . . . need to increase the number of units."

6.3.3 Future Changes and Development

One of the distinctive c haracteristics of entrepreneurship is a preoccupation wit h planning for the future development of the enterprise. In establishing how the indigenous entrepreneurs viewed the future development of their business. they were asked if they

intended to operate at the same level of business in the future. and if not. how did they plan to change the business and over what time period (Question # 24)?Question #27 175

asked whether there were any potentiai obstacles to the expansion/deveIopment of the

entrepreneur's business. This question is a 'cdouble-blind" question which folIowed up

on the second part of question #24.

Thirty-eight of the entrepreneurs responded to question R4, Forty-five percent

(n=17) of them pianned to make changes in their business. Over forty percent of these entrepreneurs indicated however, that there were obstacles to rnaking these changes: govemment bureaucracy, social/politicai instability, and Iand zoning. Generally, the changes indicated were in reference to improving the physicai property. Changes included minor purchases such as addîng air-conditioning units to the fairly extensive ones such as changing room size, adding rooms, adding conference room, improving kitchens, changing/expanding, and general refurbishing. Only two entrepreneurs referred to a nonphysical change: finding a market niche.

Fifty-five percent of the entrepreneurs (n=2 1) indicated that they would not be making changes. There were five recumng reasons: no room/land, desire to leave the business, contentment, intentions of the family, and lack of funds. Almost thirty-four percent who did not intend to make changes indicated the lack of space/ land for expansion. Another twenty-four percent indicated their desire or intention to leave the business due to age, tiredness andfor because of the great demands of the business. Some of the entrepreneurs comrnented that: ". . . (they are) looking at toning down . . . not prepared to get into debt at this age"; ". . . wanting to leave the business at this a&'; "- .. prepared to sel1 if a buyer is found . . .tired . . .business too demanding."

Twenty percent were contented with their present level of business activity while fourteen 176

percent of this group gave 'no funds" as their reason for not making changes. Some

entrepreneurs (14 percent) were reluctant to make changes as they preferred to have other

family mernbers (children) make those decisions since chey were generally wanting to

reduce their involvement in the business,

The indigenous entrepreneurs' attitudes and perceptions toward the industry, the

sector. and their involvement in their business enterprise Vary. The following section

classifies these entrepreneurs based on t heir attitudes and perceptions.

6.4 Typology of Indfgenous Entrepreneurs in the Accommodation Sector

The aim of this section is to produce a typoiogy of the indigenous entrepreneur in

the accommodation sector based on the results of the research. Pearce (1992a26) noted

that the challenge with classifiCaMn is to have it comprehensive "without succumbing to

unwieldy complexity" which perhaps cm be accomplished by reducing "the range of

variables used and to timït the number of examples included."

The purpose of this typology is to describe the types of indigenous entrepreneurs by "uncovering patterns. themes. and categories." Patton (1980:3 13) suggests that this is a "creative process that requires making carefully considered judgements about what is redy significant and meaningful in the data. Thus, an inductive analytical approach is taken whereby the categories for the entrepreneurs are derived from the data rather than being imposed on them. Using the responses frorn the following questions, the entrepreneurs' comments were used to formulate appropriate categories:

( 1) Are there any courses being offered at an institution which may be useful to you in your business (Question #20)? (2) Are you satisfied with the progress of the business (Question #23)? (3) Do you intend to operate at the same level of business in the future (Question #24)? and (4) Are there any potential obstacles to the expansion/development of the business (Question #25)?

In addition. generid comments made by the entrepreneur. the observations of the researcher, as well as the researcher's experience and judgement are used in creating the typology. The categorization is based on the following variables:

Attitude toward development of business and to the tourism industry; Attitudes toward taking extra courses (education and training); and Perceived level /type of visitor activity.

The age/age group of the entrepreneur also proved to be a significant factor in differentiating and confirming the groups of entrepreneurs. A cross-tabulation/lambda test using the variables age group and type of entrepreneur produced a significance level of

.O 12 and a "t" value of 2.499, and a lambda vdue of -333, which showed that the type of entrepreneur is differentiated by age.

6.4.1 Classification of Indigenous Entrepreneurs

The indigenous entrepreneurs have been classified into four groups: ready, raring. resigned, and receding (Table 6.7). These groupings of entrepreneurs emerged as there was recumng regularity in responses and comments? While most of the entrepreneurs

This classification of indigenous entrepreneurs in the accommodation sector is particulas to Barbados. However. it may be applied outside of the Barbadian context, particularIy within the Carïbberin. given the universality of the variables used in constnicting the typology. In addition. the similarity of hisroiical. social and cultural factors amongst the island nations. as well as the common extemal forces which impact on che Region's tourist industry. lends greater significance to the nppiicability of the typoIogy L78 * were located squarely within one of the groups. a few of them. particularly in the "raring" group, having "near ready" status. were borderline examples due to their questionable perceived IeveVtype of visitor activity- However. their formal tourisrn education and/or high profüe in the industry suggest inclusion in the "ready" group.

The "ready" entrepreneurs are notably prepared mentally with adequate and appropriate training/skiils and education for successful ennepreneurship. One of their key management activities is planning for the future development of their enterprise. That is. they make longrange projections and actively create the conditions for the reaiizarion of their goals. The obstacles they foresee are largely extemal factors such as. "political and social instability", "'economic ciimate". and "government bureaucracy". Physical limitations. such as lack of space. do not preclude them from making nonphysicai changes such as "finding a market niche". The "ready" entrepreneurs tend to have formal tounsm education andor significant tourkm experience at the management level. The

"ready" group represents twenty-four percent (n=LO) of the respondents. Unlike the 0th groups. they buttress and upgrade their already substantid ski11 level. In particular, they have expressed their desire to gain a working knowledge of cornputen. The level of guest activity in this group is relatively high: "occupancy good and consistent. . . expanded market base," and b'occupancy aiways high."

within the Caribbean- Moreover. a loose appiicability of the typoIogy rnay aiso be made beyond the accomrndation sector. TABLE 6.7 TYPOLOGY OF ïNDIGENOUS ENTREPRENEURS IN THE ACCOMMODATION SECTOR

Type of Characteristics Attitudes toward Attitudes toward Perceived Entrepreneur development of extra courses leveutype of business (Education and visitor activity Training) -. Ready notably prepared perceive no interested in relatively high mentally with obstacles for butuessing skills occupancy adequate and development/expans (consistent) appropriate training ion or rnostiy and skiIls external factors; nonphysical changes sought w here p hysical (n=10) limitations exist

Raring strongly motivated obstacIes to not interested in normally very to "mke a go" of development/expans upgrading skilis, low occupancy. business. but ion largely spact feels it is nooccupancy iacking appropriate limitation and lack unnecessary for some skills and training of funds: "ne= periods as well as holistic ready" foresee no knowledge of obstacles (n=13) indusuy Resigned accepting of current no interest in not interested in moderate circurnstances and developrnent/expans upgrading skills. occupancy with has deliberately ion; satisfied with precluded by age high given into them present level of factor dependency on (n=9) business returning pests Receding adamant in desire to no interest in not interested in Iow occupancy withdraw from developrnent/expans upgrading skills. with high business or to ion: intent on toning precluded by age dependency on signi ficant [y down or leaving tjctor returning guests decrease level of business (n=S) involvement Source: Table constructed using questionnaire data, 1994

Those entrepreneurs who appear to be enthusiastic about their involvement in the industry and appear to be strongly motivated to "make a go " of their business are categorized as "mring". What differentiates these entrepreneurs from the "ready" category 180 is that many of them lack a holistic understanding of the industry and the accommodation sector as have been evidenced by comrnents such as, "an apartment hotel runs itseif," ". ,

. thought 1 wouid open the dwrs and visiton would arrive," and ". .. nothing to leam about tourism that is so important-" Their attitudes toward the development/expansion of their business belie the ïnnovativeness of an entrepreneur. Obstacles such as space limitation and lack of fun& sufficiently impeded their desire for development/expansion.

However, the "near ready" group. not unlike the "ready" group. foresees no obstacles which prevent them from development/expansion. While many of the "raring" entrepreneurs tend to have a tertiary leveL education, in business or to a Iesser extent. in hotel management, they are not interested in taking extra courses to butuess their skills.

They comment that they do not need training or that courses are 'durnb and boring."

Nonetheless, it is within this group of properties that there is very low, to non-existent guest activity, for sustained periods. This group represents thirty-three percent (a= 13) of the respondents.

The "resigned" entrepreneurs have accepted their situation as inevitable and have deliberately given into their circurnstances. In effect. they have resigned themselves to their current level of business activity and present ski11 levet. They commonly use phrases such as, "just interested in meeting financial commitments." "want to stay out of the red, pay debts. and maintain the property," and "satisfied with level of business."

The "resigned" entrepreneurs have no interest in the deveiopment/expansion of their business because they are satisfied with the present level of business. These entrepreneurs represent twenty-three percent (n=9) of the respondents. Generally. the rSr

"resigned" entrepreneurs are not interested in taking courses because of their age. The

level of guest activity is generaily moderate due to the high level of repeat business.

Those entrepreneurs who were categonzed as "receding" were adamant in their

desire to withdraw from their business or to significantly decrease their involvement.

They used language such as "toning dom", "prepared to sell", and "want to unload the

property". Some dso indicated their wish to have "sorneone". usuaily a family member,

take over the business. As such, they have no interest in the developmentLexpansion of

their business. This group of entrepreneurs represents twenty percent (n=S) of the

respondents. Not unlike the "resigned" entrepreneun. the "receding" entrepreneurs are

not interested in taking extra courses to improve their skills due to the stated reason of age- In most instances their level of guest activity in the hotel is low and there tends to be a high dependency on retum guests.

The "ready" entrepreneurs tended to be in the 50-60 age range and the "raring" entrepreneurs were generally younger between 40-49 years of age. The receding and resigned entrepreneurs were generaily between 6 1-70 years of age and over 70 years of age, respec tively.

There is potential for movernent between categones. The greatest potential for cultivating a dynamic indigenous entrepreneurial class in the accommodation sector may rest in the potentiai for movement of the "raring" group into the "ready" category. These entrepreneurs cmpotentially shift into the "ready" category given the appropriate circumstances, such as appropriate tourkm education and entrepreneurial training, and 152

incentives, in addition to pesonal attitudinai changest0.Conversely. they may shift into a

"resigned" category if suffcient disincentives. such as the rernoval of duty-free concessions or stringent debt repayrnent poiicies. are present. The "resigned" group can potentially move into the "raring" group or "ready" group, though highly unlikely. based on their self-imposed age limitation. A more likely shift for the "resigned" group is therefore into the "receding" category. Most Iikely the "ready*' group will eventually shift into the "receding" category-

6.5 Summary

The airn of this chapter was to elucidate the nature of the indigenous entrepreneur in the accommodation sector in Barbados by eiaborating on their socio-demographics. the entrepreneurid background of their family. t heir education. training and experience. and by examining their attitudes. The indigenous entrepreneur in the accommodation sector is pneraily over 50 years (73 percent) of age, many cf them over retirement age. The gender of the entrepreneur was sornewhat difficult to conclusively establish as there tended to be many instances of dual ownership/management. The familial entrepreneurid background of the entrepreneurs was fairly extensive. Many of them tended to have a family history of enuepreneunhip. typically parents. although their entrepreneunal involvement in the tourisrn industry was extremely lirnited. Some of the children of the entrepreneurs have become entrepreneurially involved in the industry in a wider variety of

'O Robinson et ai. ( 199 1:24) notcd that 'Yb)ecause attitudes are open to change. entrepreneurhl attitudes rnay be influenced by educritors and practitioners" by "influencing thoughts, feelings. and behavionl intentions with regard to entrepreneurship and related attitudes such as innovation. achievernent, self-esteern. and personal conirol". 183 tounsm enterprises. The majority of the entrepreneun (57 percent) had a tertïary education. niose entrepreneurs with a pnmary education were generally over 50 years of age, and many retked from their former full-thne employment. Only five percent of the entrepreneurs had formal tourïsm education. Generally. there was very littie interest in upgrading their skills through extra courses, with the exception of the entrepreneurs who had a university education. The entrepreneurs had a wide range of experiences in managerial andlor ownenhip capacities. past andlor current. However. few of them had tourkm expenence. particularly in the accommodation sector. The indigenous entrepreneurs' attitudes toward and perceptions of the tourism industry. the sector. and their involvement in their business enterprise varied widely. For example, their reasons for entering the tourkm industry and the sector included land ownership. training and experience. whidaccidental, and investment. Previous land ownership was the most frequently given reason for entenng the industry and the sector. Most of the entrepreneurs were satisfied, to varying degrees. with the progress of their business. The reasons for their satisfaction ranged from being able to meet financial commitments to having consistentiy high occupancy rates. The entrepreneun' attitudes to ward the future development/expansion of their business and the obstacles that may hinder that development were considered and it was found that rather than lack of funds, the Iack of space and age were more compelling reasons for not wanting to further develop the business. The indigenous entrepreneun were classified into four groups- ready. raring. resigned, and receding- based on their attitudes and perceptions of the tounsm industry and their business. Each group is mutually exclusive although there is potential for 184 movement between the categones. The foiiowing chapter examines the entrepreneurs' awareness and use of estabhshed structural support, STRUCTURAL SUPPORT FOR INDIGENOUS ENTREPRENEURS IN THE ACCOMMODATION SECTOR

7.0 Introduction

Governrnents in the Carïbbean are acutely aware of the critical need to provide structurai suppon to encourage entrepreneurid development- lh 1984, Heads of

Govemment of Member States in the (CARICOM) agreed that:

. . . each Government wiil formulate and implement at the national level a comprehensive programme of suppon. and provide incentives for the emergence of broadly-based local enuepreneurship. Such programmes will inciude management training, assistance with identifying sources of technology and venture capital. as well as access to the range of commercial and financial services essential for business development (Nassau Understanding, L984:3).

As discussed in Chapter 2. the Govenunent of Barbados has instituted a number of programmes to assist the local entrepreneur. with specific programs directed at the accommodation sector. The aim of this chapter is to elaborate on the indigenous entrepreneurs' awareness and use of the established structural suppon. as wel1 as to indicate the type of assistance the indigenous entrepreneurs in the accommodation sector would like to have the govemment provide. This aim is achieved by considering the entrepreneurs' responses to the following questions: (1) How did you get the initial capital for your business (Question #21)? (2) Have you itpplied to any institution for lodcredit for this business (Question #22)? (3) Are you aware of any programs/opportunities which have ken established by the govemment to assist you in your business (Question #26)? (4) Have you used any of those program (Question #27)? (5) What type of assistance can the government provide to meet your specific business needs (Question #28)?

7.1 Financing Hotel Enterprises

The Iack of venture capitai is a pnmary constraint for potential indigenous

entrepreneurs (OAS, 1984; Downes. 1988)- Downes (1988:66) considered the

development of small business in Barbados and noted that for potential entrants ". . . the

financial problem centres on the inability to obtain "start-up" or working capital because

of Iack of collateraI or a pst track record in business." [n this section, the indigenous entrepreneurs' sources of initial capital and other funds are considered.

7-1.1 Source of Funds

To encourage the devefopment of an entrepreneunal class, the Bank (BDB) has made every effort to provide loan capital to small businesses (Downes. L 988:B)-

The sources of initial capital used by the indigenous entrepreneurs included personal savings, loan or gift from family members (ange1 capital), bank loan, inheritance or a combination of these sources. However, their primary sources of initial capital were persona1 savings and bank loans. Almost half of the entrepreneurs (43 percent) indicated

that their source of initial capital for their business was a combination of personal savings 187 and a bank loan. Twenty percent of the entrepreneurs secured theu initiai capital solely from the bank, whiie another seventeen percent used a combination of personai savings, bank loan, and a loan €rom the family. Some entrepreneurs who were unable to secure the Ml amount of initial capital built their accommodation in phases by adding apartments. or other physical fe~tures.as more funds became available.

Eighty-eight percent of the entrepreneurs applied to an institution for a loan.

Sixty-three percent of these entrepreneurs were successful in securing loans from the commercial banks, while only thirty-seven percent received loans €rom the Barbados

Development Bank (BDB), the govemment institution ostensibly mandated to providing financial assistance to srnall businesses (see Section 2.3)- For varying reasons the entrepreneurs were successful in receiving a loao fiom the commercial bank and unsuccessful at the BDB. or vice versa. For instance, some entrepreneurs indicated that due to their previous transactions with the commercial bank they were able to easily secure a loan: "1 had no dificuky . . .but had great credit," Others who were unsuccessful in securïng a Loan from the BDB received a loan from the commercial bank:

". . . BDB refused to gram me a loan although the officers were pleased .. . I had no problem with the commercial bank because 1 had previous dealings with them"; ". . . rejected by the Bank of Nova Scotia and the BDB because they were concerned about my lack of experience in the industry .. .(however i) was successful at the CIBC because I already had an account with them." On the other hand. some entrepreneurs had rapid success with the BDB while encountenng difficulty with the commercial bank: ". . . tried the commercial bank . - .loan denied due to lack of experience and coIlateral . . . but B DE3 L88 boranted the loan." It would appear that those entrepreneurs who had some experience in the industry, collateral. and previous business dealings with the commercial bank readily secured a loan at that institution-

Nonetheless, some entrepreneurs who were granted loans by BDB were dissatisfied with the temsof the agreement or the detivery of the funds: "1 had to build fourteen more rooms to meet pending BDBMotel Aids Act requirement; however. the requirement was not changed and now 1 am saddled with a high debt"; "BDBwas unable to disburse promised fun& on time. therefore 1 was unable to meet gther financial cornmitrnents which ended up costing me." Those entrepreneurs who resisted borrowing funds from any institutions (13 percent) simply did not want to be indebted or felt that

"banks want to tell you how to mn your business."

Of the entrepreneurs who received loans from the BDB. almost 70 percent were fernale. While it is not clear whether these fernale entrepreneurs applied to comrnerciaI banks as weli, it would nonetheless appear that they were more likely to have negotiated a loan with the BDB. The male entrepreneurs tended to negotiate with the commercial banks, many of them influenced by former successful business negotiations with that bank.

In addition to the provision of financial assistance. government programs and other assistantship are directed to the local entrepreneurs in the accommodation sector- 7.2 Programs and Opportunities for Entrepreneurs in the Accommodation Sector

The entrepreneurs' awareness of government programs as weii as other opportunities that have ken specificdy created to assist them in their business precedes their use of such programs and opportunities- The entrepreneur's failure to fully utilize the programs couId have implications regarding the programs, the entrepreneurs themselves, or both- This section elaborates on the entrepreneurs responses to question

#26- Are you aware of programslopportunities which have ken established by [he government to assist you in your business? And question #27- Have you used any of those programs?

Of the 38 entrepreneurs who responded, eighty-two percent of them were awxe of programs/opportunities which have been established by the govemment to assist them in their business. Most of the entrepreneurs (66 percent) were aware of the duty-free concessions and had taken advantage of this benefit of the Hotel Aids Act by purchasing a variety of items such as linen, cutlery. air-conditioners. refngerators. and refurbishing material. The entrepreneurs are generaily less aware of other benefits of the Hotel Aids

Act. Less that 1 1 percent mentioned land/property tax relief.

Eighteen percent of the respondents were not aware of any programs/opportunities offered by the govemment. Two percent of the respondents noted that although they were aware of the Hotel Aids Ac& they could not take advantage of it because their "property was too smail" or "due to the lateness of a license". Other programs/opportunities mentioned included training opponunities for themselves and their staff.

7.3 Desired Assistance from the Government

The indigenous entrepreneurs were asked to indicate the type of assistance the

government might provide to meet their specfic business needs. Respondents were given

the following optional responses: easier access to credit; assistance with loan application:

provision of training for owner andlor employees; and change idintroduction of

regulations regarding your specific type of business.

Seventeen percent of the thirty-six respondents were adamant that they wanted

nothing €rom the govemment. Their reasons varied: ". .. tend to corne with strings"; ". . . don't think that the govemment should be giving hand-outs"; ". . . don't believe that government should help people." in conuast. some entrepreneurs wanted much from the government. For instance. one entrepreneur wanted the govemment to ". . .lower taxes and insurances cost. as well as electricity and water rates. improve the telephone system.

regulate employees' wages and benefits. and increase marketing."

Eighty-three percent of the respondents indicated that they would Like assistance

from the govemment in areas such taxation. utilities. marketing. training. and legislation.

Greater access to financial assistance was not a major consideration. The three areas.

however. that were identified most frequently by the entrepreneurs were ( 1) the reduction of taxes and utility rates. (2) marketing, and (3) training. Overwhelmlngly. the entrepreneurs indicated that the land taxes. utility rates (water and electricity) and

insurance rates needed to be lowered and that special consideration is given in this regard- l9 1

For instance, one entrepreneur commented that the government ought "to write-off the debts on aii taxes." while another noted that there ought to be "greater consideration regarding late payment of taxes and national insurance-"

The entrepreneurs frequently mentioned dissatisfaction in marketing. Not oniy do they believe that the "government needs to promote Barbados better." but that the government needs to "include smdl hotels in the national marketing plan." interest was also expressed in the government providing more training programs, not for them. but for their employees. Some entrepreneurs would also like to have the government -'paying the salaries of the employees while they are king trained," or provide "more in-house training" for their employees.

hterestingly, many of the entrepreneurs who wanted the government to subsidize many of their operational costs such as water and elecuicity costs. as weii as provide funher reduction on other taxes belonged to the "ready" group. The "raring". "resigned'. and "receding" groups of entrepreneurs wanted either no assistance or stressed government assistance in marketing and training for their employees.

7.4 Summary

This chapter elaborated on the indigenous entrepreneurs' awareness and uses of the structural support that is available. as weli as indicated the types of assistance the indigenous entrepreneurs in the accommodation sector would like to have the government provide. One fundamental form of structural support that indigenous entrepreneurs typically need is easy access to capital. The indigenous entrepreneurs* foremost source of 192

initial capital was a combination of personai savings and a bank ioan- Eighty-eight

percent of the entrepreneurs applied for a loan either through the BDB or commercial

banks- Sixty-three percent of these entrepreneurs received loans irom a commercial

institution. Those entrepreneurs who had experience in the industry and who had

previous business transactions with the commercial banks had little difficulty in securing

Ioans from that institution, Female indigenous entrepreneurs were more likely to apply

for a loan through the BDB,which is mandated to provide financial assistance to small bus inesses.

The indigenous entrepreneurs were largely aware of the Hotel Aids Act, aithough they had lirnited knowledge of the various benefits of the Act, except for the duty-free concessions. While some entrepreneurs decidedly opposed assistance from the government, eighry-three percent felt they required some assistance. pcimarily the reducuon of taxes and utility rates, marketing for al1 hotels. and training for their empioyees. Interestingly, the "ready" group of entrepreneurs strongly favoured the subsidisation of operational costs through the reduction of taxes and utility rates.

This chapter elaborated on the indigenous entrepreneurs' awareness and uses of the structural support provided by the government. as well as the type of assistance they wouid Iike the government to provide. in the iollowing chapter is a summacy discussion and conclusions where the results of the research are surnmarized and discussed relative to the research questions. And finaily, overali conclusions are drawn and the directions of future research are suggested. CHAPTER 8

SUMMARY DISCUSSION AND CONCLUSIONS

8.0 Introduction

The purpose of this research was to describe the nature and scope of indigenous entrepreneurship in the accommodation sector in Barbados. This was achieved by:

Identifjing and explaining the distribution and spatial pattern of indigenous

entrepreneurship in the accommodation sector vis-&vis the core and perïpheral

tourist areas in Barbados; and

IdentiQing and creating a typology of the indigenous entrepreneurs in the

accommodation sector.

Both qualitative and quantitative suategies were used to provide for a holistic picture of the elements in the study. Data were collected from a variety of sources- methodological triangulation- (interviews. observations. questionnaires. and documents) to ensure sufEcient coverage. This was largely a qualitativeldescriptive study.

Frequencies and descriptives were used. as well as multidimensional scaiing in considering the hypothesis. The following discussion represents a summary of the results of the study. as well as a discussion of their implications. 194

8.1 Spatiality of the Accommodation Sector

As early as the 18" century there were hotels in Barbados. Situated in the capital.

Bridgetown, these early hotels were owned primarily by indigenous women of color. By the late 1900s. not only had there been changes in the type and ownership of hotels. but hotels were then king situated away from Bridgetown. dong the south coast (Hastings-

Worthing- StLawrence) in the parish of Christ Church, By the early 1950s the west coast

[St- James and St. Peter) was beginning to develop-

However. rapid growth in accommodation did not occur until the 1960s. The greatest growth occurred in apmments and apartment hotels. predominantly on the south coast (with the exception of the massive Sunset Crest Apartment Development on the

West coast), followed by luxury hotels on the West coast. While there was growth in the sector in the 1970s. it was not as vigorous as the earlier period. Nonetheless. there was a tremendous increase in bed capacity, again much of it occurring in apartments and apartment hotels. generaily on the south coast. By the mid-1980s through to the rnid-

1990s. bed capaciv dropped significantly (1JO 16 to 11495 beds). In 1994. there were

140 listed units of accommodation and 5554 listed guest rooms. Twenty-four percent of al1 units of accommodation and thirty-three percent of al1 hotel rooms are on the west coast.

In essence, the spatial pattern of tourist accommodation in Barbados is coastal.

Accommodation units are rnostly situated on the south coast in the parish of Christ

Church. and on the West coast in the parishes of Sr. James and St. Peter. Historically. there exist dichotomous spatial and qualitative variations in the accommodation secror. 195

Most accommodations, as weli as other tourist amenities and facilities, are concentrated

dong the western side of the island where the major coastai road provides easy access to

the airport and the major urban center. Bridgetown. the capital.

The small size and insularity of the island with its lirnited resource base have

directly infiuenced the spatial concentration of accommodation on the western side of the

island; most of them located on the western side of the coastal road and typically on the

beach. The east coast has very Iittie tourism development due to its topography and

inhospitable beaches.

The accomiriodation sector is spatidly distinctive. not just in location, but also in

regard to quality and function. That is. an "up-scale" market is served by luxurious hotels

and villas on the West coast (Platinurn Coast). while a low-end market is served by

economy-class hotels, and apartrnent hotels, and apartments on the south coast. The core

tourist areas are on the West and south coasts. specifically on the western side of the

western coastal road and irnmediately off of the beach. Actual tourist space is therefore spatially hierarchical. Conceptually. there are essentially five hierarchicai tounst accommodation zones: West coast (beach location), West coast (off the beach), south corist

(beach location), south coast (off the beach), and eisewhere.

The distribution and spatial pattern of indigenously-owned accommodation are similar to the general pattern of accommodation on the island in that they are ostensibly si tuated on the West and south coasts. Eighty-three percent of al1 indigenously-owned accommodation units are on the south coast: 77 percent of these are in the parish of Christ

Church. However. only 48 percent of al1 indigenously-owned accommodation units have L96 beac hfront locations.

The explanations for the limited representation of indigenous entrepreneurs on the

West Coast (and on the kachEront) undoubtedly include the higher cost and Iirnited availability of land. However. other expianations may be found in the entrepreneurs' responses regarding their reasons for choosing the location of their businesses. as well as their reasons for entenng the industry. In Barbados. indigenous entrepreneurs tended to

Iocate their accommodation on land that was previously owned. That is. the land was already in their possession when they decided that the best Land use was to construct a tourist accommodation. Generaily, the land would have been owned by the entrepreneur or the extended family. typically by their parents. in some cases, the land was already lived on when the entrepreneur decided to incorporate or convert the persona1 dwelling into a tourist accommodation unit-

Indigenous entrepreneurs were more inclined to locate their accommodation unit where they already owned land because the initiai outlay (capital costs) for establishing the enterprise would be minimized. Unquestionably, securing initial capital for business is. at the very least. challenging. Therefore. efforts to reduce the initial costs of starting a business are imperative. It is questionable. however. the degree to which the indigenous entrepreneurs' decisions to use previously-owned land was based on business acumen or how much of it represented a timid entry into business. and more specifically. into the accommodation sector.

Comrnonly referred to locational factors which influence tourist development on islands. parficularly those in a colonial space-economy. include among other things. the 197

distribution of roads, airport infrastructure. and the location priorities inherent in the

tourist product (Bcitton. 1980b). The locationai decisions of the indigenous entrepreneurs

in the accommodation sector in Barbados were highly influenced by personal factors

which engendered security and familiarity.

Notwithstanding that due to the smaii size of the island. and the readily identifiable core

tourist areas, there is Iess need for eiaborate locational decision-making.

8.1.1 Perceived Tourist Space

Tounsm geography generally considers the spatial expression of the relationships related to dl aspects of the tounsm phenornena Toucist space- actual. functional, and perceived- was examined in regards to the perceived sphere of influence of the following ownership/management structures in Barbados: owner-operated. owner-managed.

independent professionally rnanaged. chain-affiliated. and chin rnanaged.

Using the concept of perceived space. an analysis was conducted on how various ownership/management structures behave and are perceived in globalL.hemispherïcal. and regional tounst spaces. particularly from a marketing and visibilityfrecognition perspective. Actual space (the area accornrnodating tourist activities) and functionai space (the generating and attracting areas) are spaces in which tounsm entrepreneurship occurs and as such were implicitly considered.

Owner-operated and owner-managed hotels have an insignificant to modente

1 The Caribbean region on a whole Iacks much significance in a global tourism context and is hierarchical ty perïpheral in international tourist space. 198

presence in global, hemispheric. and regionai tounst spaces. In essence. they are

perceived as peripherd and not having much influence or significance intemationally.

Independent professionaliy-managed hotels have a weak to moderate presence in global,

hernispheric. and regional tourist spaces. ALthough peripheral in the spatial hierarchy of

international tounst space. they are closer to the core than owner-operated and owner-

managed hotels. Chain-&liated and chah-managed hotels. co a Large extent. have a

suong presence and are significant in global. hernispheric. and regional tourist space due

to their network and distribution systerns. These ownershiplmanagement structures are

closest to the core in the spatial hierarchy of international space. ïndigenously-owned

hotels operate under the owner-operated. owner-managed. and independent professionai

managed ownership/managernent structures which are largely peripherd in mos t tourist

spaces.

8.2 Peripherality of Indigenous Entrepreneurship

indigenous entrepreneunhip is peripheral in location and function. Using a one-

dimensional rnultidimensional scaling procedure. and considering the variables of room

rate, beach location, size of business, and type of ownenhip, seven distinct groups of

accommodation units were identified: low budget. budget. rniddle-of-the-road, low-end

up-market. high-end up-market. luxury, and super luxury Ratios were generated for each

group of accommodation based on type of ownership. beach location. and key tourist expenditure contribution. It was established that indigenously-owned accommodation

units were mostly located away from the beach (locationally peripheral) and tended to L 99 have very limited representation in the key tourist expenditure category ( functionally peripheral). Conversely, foreign-owned accommodation units were central in location and function.

Given that many indigenous entrepreneurs tend to build their accommodation on previously-owned land, and given that they a mostly smail-sized and largely unprofessionally designed, owner-operated and owner-managed, and more often than not are peripheral in Location, suggest that these entrepreneurs are in nidimentary ways making efforts to utilize the opportunifies presented by tourism. However. they are woefully uninformed about the viability of accommodation units and perhaps disrnissivelapprehensive about professionai advice. indeed. one of the reasons given for failure of Barbadian businesses was that many businessmen had a penchant "to "fly blind" rather than utilize the professional services of persons in a position to provide ir."

(Ryan. 1994:45 1) Any analysis of indigenous entrepreneurship in the accommodation sector necessitates thorough consideration of who is responding to the apparent opportunities in the tourism industry.

8.3 Indigenous Entrepreneurs in the Accommodation Sector

The indigenous entrepreneurs in the accommodation sector are not a monolithic entity. Rather, they are diverse in their background. education and training, attitudes. and perceptions. Policies that are directed at the small hotels and to indigenous entrepreneurs ought to reflect this divenity Some of the socio-demographic characteristics of the indigenous entrepreneurs that were considered are age. sex. ethici$, and level of education. Age and level of education were found to be more influentid in the entrepreneun' attitudes and perceptions regarding theû entrepreneurial activities. and by extension. their entrepreneurid performance as was evident by the observed state of their properties,

Although the actuai age of the entrepreneurs was not sought, it wouId appear that the oldest of the respondents was 88 years of age. while the youngest was 37 years of age.

Of the 40 indigenous entrepreneurs studied. 40 percent were over 60 years of ye, many of them retirees. Seventy-three percent of the respondents were over 50 years of age.

Most of the respondents (57%) had some fomof tertîary education- college or univenity.

Still. a high proportion (43%) had only achieved a secondary education or less. Those entrepreneurs having a coliege education had more formal education in hotel management

(tourism-specific) formal education and were more inclined to punue extra hotel management courses. or some equivalent.

Very few (13%) of the indigenous entrepreneurs indicated that they were interested in additional training (specifc courses). Interestingly, al1 of the entrepreneurs who were intent on taking extra courses have a tertiq level education. mostly at the university level. Moreover. while they had a wide range of experiences in managerial andor ownership capacities, relatively few had experience in the tourism industry,

'The literature on entrepreneunhip in the Caribbean is repiete with examples of entrepreneurs whose entrepreneurial performance and developrnent have been hindered by issues of race and ethnicity. Barbados being no exception, However. in this research where 6û percent of the respondents were of African descent. very Little reference was made to this issue. particularly the accommodation sector-

In short, many of the indigenous entrepreneurs did not have a formal education in hotel/hospitaiity management, and even fewer had industry-related experience prïor to becorning a hotelier. Furthemore. they generaiiy have very little interest and enthusiasm

in upgrading their present skilIs or attaining new skills. hdeed. it is well undentood that:

The higher the level of formal education. and the greater the depth of entrepreneunhip and managerial experience. the greater is the likelihood of enhanced enterprise performance. (Henry in Ryan, L994:450)

Given some of the socio-demographic charactenstics of the indigenous entrepreneurs in the accommodation sector. it may be that new and innovative ways are needed to assist and encourage this group- However. their attitudes toward and perceptions of the tourkm industry and business would first need to be taken into consideration.

8.3.1 Attitudes and Perceptions

Attitude is increasingly recognized as another important element in describing the entrepreneur, in addition to personality characteristics and demographics. The attitudes and perceptions of the indigenous entrepreneur in regards to the tourkm industry and business, in large measure, are related to the level and type of education and training.

Yet, having the appropriate education. training andior expenence was not the primary motivation given by the entrepreneurs for entering the indusuy, or the accommodation sector. While some entrepreneurs gave a combination of reasons, their responses were 202 related to land ownenhip. training and experience. whim/accidental. and investment; profit of course. king the implicit motive. Not unlike the reasons given by entrepreneurs for choosing the location of theu accommodation unit. previous land ownership, or some variation thereof. was their primary motivation for entering the industry and the sector.

To further establis h the entrepreneurs' attitudes toward the tourism industry. and rheir perceptions of business. as weli as the accommodation sector. they were asked about their future plans for the business. Planning for the future development of the enterprise is an integral part of management. Forty-fve percent planned to make changes in their business, generally in regards to irnproving the physical plant. although a few entrepreneurs were interested in finding new market niches. Fifty-five percent of the entrepreneurs were not planning to make changes for various. It was found that rather than lack of funds. the lack of space. as well as the entrepreneufs advanced age. were more compelling reasons for not wanting to further develop the business.

Based on the attitudes of the entrepreneurs toward (L) the development of their business and the tourism indusüy. (2)taking extra courses (education and training), as well as the perceived 1eveUtype of visitor activity, the indigenous entrepreneurs were classified into four groups: ready. rarïng, resigned. and receding. "Ready" entrepreneurs are notably prepared mentaily with adequate and appropriate traininglskills and education for successful entrepreneurship. "Rarïng" entrepreneurs differ from "ready" entrepreneurs in that while they are strongly motivated to succeed. they lack a holisric understanding of the industry and the accommodation sector. 203

The groups are not necessarily static as there is potential for movement between categories. The greatest potential for cultivating a dynamic indigenous entrepreneurid class in the accommodation sector may rest in the potential for movement of the "raring" group into the "ready" category. These entrepreneurs can potentidy shift into the "ready" category given the appropriate circumstances, such as appropriate tourism education and entrepreneurid training. and incentives, in addition to personal attitudinal changes3.

8.4 Summary

Given the role tounsm plays in the Barbadian economy. any discussion on development in Barbados must necessarily include the economic activity of tourism- The nature of tourism in Barbados, as in many peripherai regions. is that there are a tremendous number of external factors and conditions which impact of the industry. This issue of extemal conditions impacting on economic activity is not new. particularly in post-colonial societies such as Barbados. For exarnple. the sugar industry has substantially diminished due to external market conditions. inter dia. The largely external orientation of tourism in Barbados is not sufficient condition to disregard the inherent opportunities tourism provides for developing the human capital of the nation.

indeed, in Barbados. core-penphery dependency is evident at other Levels in the tourism industry. Spatially and functionally. peripheral tourist areas/accommodation

Robinson et al. (199 1 :24) noted thar "(b)ecause attitudes are open to change* entrcpreneunal attitudes may be infiuenced by educators and pnctitioners" by "influencing thoughts. feelings, and behavioral intentions with regard to entrepreneurship and related attitudes such as innovation, achievement. self-esteem. and personal control". 204 depend on core tourist areas. Spatially penpheral areas are largely dependent on core tourïs t areas for attracting visitors to the destination. Decidedly. the elements of the core tourist areas are ostensibly used in creating an image of the destination. Peripheral areas. to a large extent, are typicdiy de-emphasized or excluded from national marketing campaigns. Similady, spatially and functionally penpheral accommodations depend on the core tounst areas to provide amenities. faciiities. and attractions for their guests, since

the nature of the penpheral accommodation (small-size. limited amenities and facilities.

limited budgets) precludes them fiom offenng extensive services.

k has been established that entrepreneurship is a critical component in the development process and is one valid approach to developing human capital. encouraging self-reliance. and creating a sense of weli-being in the indigenous population. Researchers have ken seeking explanations as to why some people become entrepreneurs. Typical explanations include: ( L) geneûc inheritance, (2) religious values.

(3) penonaiity needs. (4) geographical climate. (5) status of grovp in community. and (6) family structure (Ryan. 1992:xiii). Such explanations. however. do not sufficiently address the peculiarities of colonial and post-colonial environments which invarîably

irnpacted on the propensity for some groups to develop enuepreneunally.

Tourism can facilitate the development of an entrepreneurid class in Barbados.

Indeed, the future of the tourisrn industry in the Caribbean may depend on the development of a vibrant and innovative group of indigenous entrepreneurs who will be

able to effectively respond to the opportunities and challenges of the industry. Perhaps

Poon (1990: 1 L9) stated it best when she suggested that the future emphasis of Caribbean tourism "must be placed upon cultivating a cadre of Caribbeans who senously control their own destiny." However, the necessary conditions must be present-

Bull et ai, (1995:7), following the Schumpeterian definition. proposed that entrepreneunhip wilI occur when the following conditions an present:

task-related motivation (some vision or sense of social value embedded in the basic task itself that motivates the initiator to act): expertise (present know-how plus confidence to be able to obtaÏn know-how needed in the future); expectation of gain for self (economic andior psychic benefits); and a supportive environment (conditions that either provide cornfort and support to the new endeavour. or that reduce discornfort €rom a previous endeavour.

In the Caribbean, govemments have attempted to develop local and regional entrepreneurship through programs and policies which generally provide education and training, as well as easier access to venture capital. Such programs have had varying success due to factors such as the indigenous entrepreneur's somewhat limited education and training, limiting attitudes and perceptions. as well as the govemment's questionable ability to implernent and administer some programs.

Despite the Government's efforts to support indigenous entrepreneurship in the accommodation sector, it is clear that these entrepreneurs, with some exceptions, particularly those with small-size accommodation units. are in trouble. Many are heavily indebted to the government and appear to be in jeopardy regarding their control over their circumstances. For instance, their properties are Iargely in a state of disrepair and because their revenues just cover their expenses there are no fun& for repairs. Tennyson Beckles

( 1994), Chairman of the Barbados Development Bank (BDB), noted that the BDB has 206

exhausted the conventional ways of rescheduling the debt of many smaii hotels and yet

the hotets are not viable- The BDB therefore has considered the reorganizing and re- engineering of these businesses.

The indigenous entrepreneurs in the accommodation sector are not a monolithic entity. Rather. they are diverse in their background. education and training, attitudes and perceptions. These factors impact on the IeveL of involvement of the entrepreneurs in the sector and their wiilingness and abiiity regarding the appropriation of structural support-

It is therefore incumbent upon policymakers and plannen to undentand the composition of the indigenous entrepreneurs for the creation of effective policies. Policies which would address the advancemeni of indigenous entrepreneurial development/involvement. promote the appropriate development of the tourhm industry, as well as enshrine quality development for the population.

If indigenous entrepreneurship is to assist development, then it must be a vibrant activity whereby new combinations are being achieved, and where new markets are explored, not just benign ownership/managernent that is overly dependent on the govemment. As we have seen from the research. not dl of the indigenous entrepreneurs in the accommodation sector exemplify the necessary attitudes and behavior that allow for entrepreneurial excellence. For instance, white some entrepreneurs were decidedly opposed to government assistance. eighty-five percent of them felt they needed sorne assistance, primarily the subsidization of operationai costs through the reduction of taxes and utility rates, marketing for ail hotels. and training for their empioyees.

Most of the indigenous entrepreneurs in the accommodation sector are first generation formal sector entrepreneurs and are genediy older individuals. some

contemplating exiting the industry:' There is a need, and now an opportunity, for prudent

augmentation of indigenous entrepceneuahip in the accommodation sector. Due to the

current tourkm densi# in this very limited geographical axa (166 sq. miles), it is unwise

to greatly increase the accommodation capacity. certainly in terms of accommodation

units. It therefore makes development sense (economic. social/culturai. environmentd) ro

consider the current tourist plant with the intent of encouraging new arrangements with

current ownen. Additiondly. smdl propenies which typically experience diseconomies of scaie, will require new and innovative management and marketing approaches to compensate for. or perhaps to take advantage of, their srna11 size.

One solution may rest with the younger generation of Barbadians6. Some have exhibited entrepreneurid quaiities in various endeavors in the formai and informal sectors. while others have latent abilities that, given the nght envuonment. wiil corne to the fore. However. as this research has shown. not everyone who expresses a passing

interest in entrepreneurship is an entrepreneur or has the qualities to become an entrepreneur. Moreover. appropriate tourism education and training are necessary prerequisites.

4 Some entrepreneurs have indicated that their children were not interested in taking over the management of the accommodation as they have witnessed the entrepreneur "working hard with nothing to show for it".

* In 1994. there were 426.000 stopovcr arrivais as compared to a population of 37.000.

6 One of the dnwbacks in targeting the young entrepreneur is that they are typically without equity. Tennyson Beckles, Chairman of the BDB. suggested that such entrepreneurs must make it their business to build up their equity (Beckles, 1994) Echtner ( 1995) considered entrepreneurid training in developing countries and advocated a three-pronged approach to tourism education which would cultivate professional. vocational. and entrepreneurid skills. So. who should be trained? Cleariy persons who are not nsk averse and who are innovative (Echtner. 1995) are good candidates.

The government must also play a leading role by incorporating the concept of entrepreneurid development into its national tourkm policy. It would also be prudent to promote and support entrepreneurid development through tailored long-term prognms. hdeed, the efficacy of such assistance prognms is largely reliant on. among other things,

the potential user's awareness of the programmes; easy and equitable access to that assistance; an efficient and impartial evaluation process post-assessmentlevaluation of al1 facets of the programme; and the implementation of required adjustments.

It is therefore incumbent on the government to create "a forma1 tourism policy that would coive direction and support for a more long-term view of the role of tourkm in the econorny" (Wilkinson 1997: 162). Perhaps for Barbados, Baumol's (L968:69)suggestion is appropriate.

The first order of business in an economy which exhibits very little business drive is presumably to induce the appearance of increased supplies of entrepreneurid skills which would then be let loose upon the area's industry. 8.5 Conclusions

This geographic research considered aspects of the spatial structure of tourism

space. using a core-perïphery theoretical foundatioa In addition, the research considered

the spatial development of accommodation in the context of time and space. Moreover.

from a development geography perspective, the relationship between indigenous entrepreneurid involvement and development was considered. Such geographic research contributes to the understanding of the tourism phenornenon. particularly in peripherai destinations. This study makes other contributions in that it:

adds to the literature of tourism development that focuses on small- and medium- sized enterprises by elaborating on the spatiaiity of the indigenously-owned accommodation sector in a peripherai destination, specifically in regards to concepts such as. spatial pattern, spatial hierarchy, and tourist space;

adds to the general knowledge on indigenous entrepreneurid activity in peripherai regions by examining the nature and scope of that activity in the accommodation sector. Elaboration of indigenous entrepreneuriai activity in the periphery is significant as the core is typically emphasized in international structural tourism models; and

increases the understanding of the indigenous entrepreneur so as to assist tounsm managers and policymakers in establishing environments that wouid facilitate indigenous entrepreneurship. A greater understanding of the indigenous entrepreneur is facilitated by the elabontion of their perceptions of and attitudes toward the tourism industry and business. as is established through a typology of thern-

The study of entrepreneurship is in its embtyonic stage (Bygrave. 1989). The

paucity of research on the subject in the tourism Iiterature is therefore not surprising.

This primarily empirical study should add to the growing body of literature on entrepreneurship in general. and on indigenous entrepreneurs in the tourism industry. in At the outset of this dissertation four fundamental questions were asked in order to assess the impact mass tourism has had on indigenous entrepreneurid involvement in peripheral destinations: ( 1) Are indigens utilizing the opportunities that tourism presents?

(2) Who is responding to the apparent oppoaunities? (3) What are the nature and scope of their involvement? (4) How are indigenous entrepreneurs assisted and/or encouraged? mis dissertation. in considering the formal accommodation sector in Barbados. addressed these questions within a very narrow focus. To better address these questions, extensive research that is locationally and sectorally diverse is required. Research should be conducted in different locationsldestinations (peripheral regions) as tounsm will necessarily be different in each place given their specific economic, social/cultural. his torical, poiitical. and environmental contexts. Similarly, indigenous entrepreneurs hip is evident in a nurnber of sectors in the industry. such as attractions. as well as in ancillary services. Furthemore. informal indigenous entrepreneurid involvement is f.more widespread and varied than formal sector involvement.

Tourism has not stimulated vibrant indigenous entrepreneurid activity in the accommodation sector in Barbados. Tourism is a dynamic phenomenon in that it is constantly evolving and re-inventing itself. Caribbean tourisrn, and indigenous tourisrn entrepreneurs, must keep pace. As early as the L980's, Poon (1988:213) observed that ". .

- the future of Caribbean tourism will increasingly depend upon its innovativeness- its indigenous capacity to engineer "new Schumpeterian tourhm combinations" and to respond creatively to changes taking place in the international tourism marketplace. Innovation cmlead to meindigenous development."

Within global, hemispheric. regional, and national contexts, indigenous entrepreneurship in the tourism industry will likely remain peripheral. and grossly overshadowed by transnational tourism corporations (TNCs), barring new combinations are introduced which specifically account for dl of the germane elements of indipnous entrepreneunhip. Given the nature and scope of indigenous entrepreneurship in many peripheral destinations. as well as the particular needs of developing counuies, it is doubtful that the mimicry or blind application of modesfmodels of production and distribution used by TNC's would yield developmentally useful (economïc, social/culturai, environmental) results. Hotel groupings used by the Barbados Statistical Service for statistical anaiysis. In Barbados accommodation establishments, for the purpose of statistical andysis are divided into three categories: Hotels. Aparünent Hotels and Apartments.

Hotefs comprise the traditional type of accommodation where the guest rents the room and other services. such as eating and drinking facilities, laundry. etc., which are available on the premises.

A Guest House is a hotel with fewer than ten bedrooms

A~artmentHoteis are those establishments where each unit is self- contained (Le. contains a fndge and stove and eating facilities). Apartmenc hotels pcovide some or al1 the facilities offered by hotels and in particular the provision of communal dining faciliues.

A~artments-Each unit is self-contained. Generally. services are limited to provision of maid services. There is no provision of communal dining facilities on the premises.

Each category has been sub-divided into a number of groups on the basis of the average 198 1 Winter Rates. Ail rates are quoted in M.A.P. (Bed. breakfast and dinner).

Group I over $70.00 US- Group II $45.00- $70-00U.S. Group ïïï less than $45-OO US

Group 1 over $65.00 US Group II $40.00 - $65.00 U.S. Group III less that $40-00 U.S.

Group 1 $40.00 CiS. and over Group II less than $40.00 US

Source: Barbados Statistical Service, 1995

COPY OF ORIGINAL DOCUMENT

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II. mm; celary, .&ln L1 plmtd Ulrri. u e*1. gnœwam. APPENDrX 3

LE'ITER OF INTRODUCTION This Ietter is to introducc Ms- Jacklyn Neblett. who is undettaking r#earch on the nature and extent of local involvcment in the tourkm indusuy in Barbados. Iat research is an academic study being undertaken by Dr- Richard Butler of ïhe Univenity of Western Ontario. in London. Canada The study is king assisted in Barbados by Dr. Graham Dam of the Depanment O€ Sociology of the University of the West Indics, who O bascâ at the Cave Hill Campus in Bridgetown, Barbadoa. If you have any questions about the stuây, please facl free to contact either Dr. Dann, telephone 425-1310. or Dr- Butler. telephone 519661418. or wcite to Dr. Butler at the addrcss above.

Ihe study M* Neblett h conductuig is an academic study and L aot part of any govemment sucvey. The rtsponses to intcmiews will be kept strictly conndential and wiil not be passed on to any othet agcncy or body. Any reports writtea on thstudy dloaly use aggregatcd data and identification of any individuai response 41not be possible. If puagre to k intemiewed for the study, your participation ir entirely voluntary and you are fne to terminate the interview or Leave at any tirne. and to choose not to aarw« any questions you wish. A summay of the scudy will be available upon completion of the research. and if you would likc a copy. please contact Dr. Butler, or indicate to W. Neblett. and a copy will k sent to pu.

Thank you for your coasideratioa.

Richard Butler (Dr.)

Social Science Cenm London. Ontario * Canirir N6A X2 'ifei&o=: (519) 661-3423 FE (519) 661-3750 APPENDIX 4

QUESTIONN~

The latter sections of the questionnaire. "source of supplies/goods" and "producer- manufacturer/suppüer" were to be used if the population of indigenous tounsm entrepreneurs were used as subjects. Indieenous- Tourism Entre~reneur

(Questionnaire strictiy confidentid)

Please fil1 in the blank spaces or check ( ) the appropriate category as it applies to you and your business. It may be necessary to check more than one category for some quations.

(If you own more than one business in the tourism industry. please complete a separate questionnaire for each business)

Nmeof business and\or owner Do you own more than one business in the tounsm industry? - yes - no

If yes. please List the name and location of your other business(es)

2. Location of business

3. Sex: -Male - Femaie

4, Age: -under 20 -20-29 -30-39 -10-49 -50-59 pver60

5. Length of residence in Barbados (years) -entire life -less than 5 -6- 10 - over 20

6. Ownenhip of Business - one maniwoman - family - CO-operative - other Type of business - hotel - guesthouse - restaurant - sports - above water - under water - boutique - craft - tours - car rental - moped rental - other

8. How long have you owned this business? Yrs, Mrhs,

9. Why did you enter into the specific areabervice within the tourkm indusuy? - had appropriate trainingkducation - had appropriate experience - business owned by i'lymember - other

10. What were your reasons for choosing this location for business? - close to other tourisrn businesses - close to naturd menity frequented by tourists - close to targeted market - aiready owned propertyuand - other

1 1. What is the size of your opention\business? (1) #of rooms (2) seating capacity (3) square footage (4) turnover (5) other

12. How many employees do you have7 - Number of Barbadians -

13. Are any of your employees family memben? - Yes - No if yes, how ma.y? - Indicate the highest level of formal education you have completed - university - college - high school - school leaving (standard seven)

Which of the foflowing training andor experience have you had? - formai institutional training course, name and Location of institution

- apprenticeship - experience on the job - other

Does your farnily have a background in business? - Yes - No

- fatheri mother - grandfatheri grandmother - other

Does anyone in your fdyhave a background in the tourism business? - Yes -No

Ts this the first business you have managed? - Yes -No

If no. what type of business(es) have you managed?

1s this the first business you have owned? - Yes -No If yes, what did you do before?

-- . --

If no, what type of business(es) have you owned? 20. Are there any courses king offered at an institution which may be useful to you in your business? - Yes - No

If yes. indicate typejname of coune(s). and the name of the institution

Have you taken any? If yes, indicate which one(s)

If no. what has prevented you from taking course(s) thus far?

2 1. How did you get initial capital for your business? - saved it yourself - load gift frorn Camily\ friend - from bank of some other institution- Narne of institution - inheritance - other

22. Have you applied to any institutions for loankredit for this business?

If yes, indicate institution - Barbados Development Bank - Industrial Development Corporation - A Commercial Bank - other

What was the result?

If no, why? - have not needed to - application process seemed cornplicated - believed loankredit would not be granted - other Are you satisfied with the progress of the business? - very satisfied - expected the business to grow at a faster rate - dissatisfred with the rate of growth of business - other

Do you intend to operate at the same level of business in the future? - Yes - No

Eno. indicate briefly how you plan to change the business and over what time period

Are there any potential obstacles to the expansion\ deveiopment of the business? - limited access to capital - insufficient collateral - limîted land ownership - lack of appropriate trainingkxpenence - other

GOVERNMENT ASSISTANCE IN ENTREPRENEURIAL DEVELOPMENT

26. Are you aware of programs \opportunities which have been estab 1i s hed b y the government to assist you in your business? - Yes - No

If yes, please indicate those programs \opportunities

27. Have you used any of those programs \opportunities?

If yes. what was the outcorne?

If no, what were you reasons? What type of assistance can the government provide CO meet your specific business needs? -easier access to credit - assistance wîth loan applications - provision of training programs for - proprietor in -overail business management - accounting - marketing - employees - change in\ introduction of regulations regarding your specific business. for example

SOURCE OF SUPPLIES\ GOODS

29. What percent of your products do you import? - 91-100% - 75- 90% - 50- 75% - less than 50% - none

If products are imported. indicate origin of the bulk of impons

30. Who are the local suppliers of the products used in your business?

Item(categ0ry) Supplier Address Are you satisfied with the quantities in which goodsGtems are supplied - Yes -No If no, please elaborate

Are you satisfied with the quality of the goodsliterns which are produced locaily? - Yes -No If no, please eiaborate

Thank you for your cooperation. PRODUCER-MANUFACTURER\SUPPLIERS (ONLY)

1. What goods\items do you produce?

2. What raw mâteriais used in the production of your items are found Locaily?

What percent of your raw matends do you import (outside of Barbados)? - 9 1-100% - 75- 90% - 50- 75% - less than 50% - none

If products are irnported. indicate ongin of the bulk of impoas

What types of businesses do you supply with your products? - hotels - boutiques - craft shops - other

What are the general locations of your customers?

Customer Location

Thank you for your cooperation. REFERENCES

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