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White Paper on the Development of Tourism in Barbados

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White Paper on the Development of Tourism in Barbados Revised March 2012 ii | Strategic Solutions Inc. Table of Contents List of Abbreviations ii List of Tables iv List of Figures iv Executive Summary v Part I 1.0 The Need to Review the National Tourism Policy 1 2.0 The Policy Formulation Process 3 3.0 Key Trends Driving the Global Tourism Industry 6 4.0 Transforming the Barbados Tourism Industry: The Fierce Urgency of Now 29 5.0 Review of the Barbados Tourism Industry 41 6.0 SWOT Analysis of the Barbados Tourism Industry 55 Part II 7.0 Key Fundamentals to Transform the Barbados Tourism Industry 57 7.1 Achieving Competitiveness through Innovation 57 7.2 Creating an Enabling Environment for Investment 78 7.3 Changing the Mind-set of the People through Involvement 80 7.4 Involving the Youth to Secure the Future 86 7.5 Developing a Crisis Resilient Industry 88 7.6 Capitalizing on Emerging Trends 91 7.7 Structural Reform of the Ministry of Tourism and Barbados Tourism Authority 92 8.0 Eight Pillars of Tourism Development 95 8.1 Pillar 1: Sustainable and Responsible Tourism Development 95 8.2 Pillar 2: Product Development 109 8.3 Pillar 3: Marketing and Promotion 153 8.4 Pillar 4: Human Resources Development, Education and Awareness 171 8.5 Pillar 5: Developing a Comprehensive Research Framework 187 8.6 Pillar 6: Effective Participation and Collaboration 193 8.7 Pillar 7: Access 202 8.8 Pillar 8: Standards and Regulations 205 9.0 Role of Key Players 211 9.1 Role of the Ministry of Tourism 211 9.2 Role of the Private Sector 213 9.3 Role of the Non-Governmental Organizations 213 9.4 Role of Trade Unions 214 9.5 Role of the Employee 215 9.6 Role of the Youth 215 Part III 10.0 Policy Statements 216 i | Strategic Solutions Inc. List of Abbreviations APD Air Passenger Duty AA American Airlines ATV All Terrain Vehicles BCCHI Barbados Community College Hospitality Institute BHTA Barbados Hotel and Tourism Association BHS Barbados Horticulture Society BIMAP Barbados Institute of Management and Productivity BOP Balance of Payments BPA Barbados Port Authority BRIC Brazil, Russia, India & China BTA Barbados Tourism Authority BTII Barbados Tourism Investment Inc. BTMI Barbados Tourism Marketing Inc. BTPA Barbados Tourism Product Authority CAL Caribbean Airlines CARICOM Caribbean Community CBO Community-Based Organization CCCCC Caribbean Community Climate Change Centre CCTF Cruise Tourism Task Force CRM Customer Relations Management CRNM Caribbean Regional Negotiating Machinery CSF Critical Success Factors CHENACT Caribbean Hotel Energy Action CTDC Caribbean Tourism Development Company CTO Caribbean Tourism Organisation CZMU Coastal Zone Management Unit DINKS Double Income No Kids E/D Embarkation/Disembarkation Card ETC European Travel Commission EU European Union F2F Face to Face FCCA Florida-Caribbean Cruise Association FDI Foreign Direct Investment GAIA Grantley Adams International Airport GDHI Gross Disposable Household Income GDP Gross Domestic Product GOB Government of Barbados H1N1 Avian Influenza A HIV/AIDS Human Immunodeficiency Virus HRD Human Resource Development IADB Inter-American Development Bank ICT Information Communication Technology ICZM Integrated Coastal Zone Management IICA Inter-American Institute for Cooperation in Agriculture IMF International Monetary Fund LEED Leadership in Energy and Environmental Design LIAT Leeward Islands Air Transport LCC Low Cost Carrier ii | Strategic Solutions Inc. MICE Meetings, Incentives, Conferences and Exhibitions MOT Ministry of Tourism NGO Non-Governmental Organisation OAS Organisation of American States OECS Organisation of Eastern Caribbean States PPP Purchasing Power Parity PRTA Professional Road Tennis Association RBPF Royal Barbados Police Force READ Research and Economic Analysis Department SIT Special Interest Tourism SARS Severe Acute Respiratory Syndrome SMME Small Medium & Micro Enterprises SWOT Strengths, Weaknesses, Opportunities and Threats TALC Tourism Area Life Cycle model TDA Tourism Development Act TMP Tourism Master Plan TSA Tourism Satellite Account TVET Technical Vocational Education & Training UGC User Generated Content UN United Nations UNODC United Nations Office on Drugs and Crime UK United Kingdom UNESCO United Nations Educational Scientific and Cultural Organisation UNWTO United Nations World Tourism Organisation USA United States of America USVI United States Virgin Islands UWI University of the West Indies WCED World Commission on Environment and Development WEF World Economic Forum WTTC World Travel and Tourism Council iii | Strategic Solutions Inc. List of Tables Table 1: Generational Segmentation 25 Table 2: Visitor Arrivals by Source/Year 44 Table 3: Estimated Total Expenditure by Tourism Segment 47 Table 4: Estimated Total Expenditure by Country of Residence –Stay-Over 2006-2009 47 Table 5: International Tourism Expenditure Receipts from Top 10 Countries 48 List of Figures Figure 1: Visitor Arrivals 2005-2010 44 Figure 2: Tourist Arrivals by Major Source Market 45 Figure 3: Key Elements of Tourism Sustainability 98 Figure 4: Butler’s Tourism Area Life Cycle Model 110 Figure 5: The Product Development Process 119 Figure 6: Special Interest Niche Segments 152 Figure 7: Tourism Cluster 196 iv | Strategic Solutions Inc. Executive Summary In order to develop a comprehensive plan for the tourism industry to 2021, the Government of Barbados has developed this White Paper for Tourism Development, which will set the policy direction for the Tourism Master Plan 2012-2021 (TMP). The preparation of a TMP is one of the most important measures that any developing country can take, particularly one like Barbados, which depends so heavily on tourism for its economic survival. This Plan will be a mammoth undertaking that will implement the vision that the Government has for a more sustainable tourism industry by 2021. The White Paper will be the national guide for the sustained growth of the Barbados tourism sector over the next ten to twenty years, to ensure that the sector leads economic growth, social progress and environmental sustainability. Achieving the targets set out in this policy paper will be challenging. It will only be through a comprehensive and integrated effort, that Barbados will be able to realize the full potential of tourism as a bankable growth sector for the 21st century. To make this possible, the Government will continue to make the industry a priority in national policy decisions, foster the development of competitive and responsible business models and practices and increase cooperation between the public and private sectors. This document is therefore of special importance, not only for the tourism industry of Barbados and the many constituencies which the industry serves, but most especially, the people of Barbados. As a consequence, this White Paper was developed with input from hundreds of tourism public and private sector stakeholders, Labour, NGOs, CBOs and citizens. The priorities and ideas detailed herein are the result of in-depth tourism and socio-economic research and analyses, public meeting consultations, focus groups and interviews with leaders and individuals from all sectors of the community. As such, the policies in this Paper are a tangible expression of the hopes, dreams and aspirations of the Barbadian people. Yet, it is not only today’s citizens that the travel and tourism sector and this policy paper must ultimately serve, but their children, their grandchildren and generations beyond. This Paper seeks to provide a framework to achieve such a goal. It is a call to action for every Barbadian to rally behind this unifying direction to develop a world class, highly competitive, inclusive tourism product and to capitalize on every opportunity the industry offers for creating revolutionary short to medium term economic and social transformation. The tourism industry has evolved into a global phenomenon and is one of the most important economic sectors and social activities of modern time. Today, it contributes directly to 5% of the world’s GDP, one in twelve jobs globally and is a major export sector for many countries, both in the developing and developed world. Visitor expenditure on accommodation, food and drink, local transport, entertainment and shopping, is an important pillar of the economies of many destinations, creating much needed employment and opportunities for development. For more than 80 countries, receipts from international tourism were over US$1 billion in 2010. Globally, as an export category, tourism ranks fourth after fuels, chemicals and automotive products, According to the United Nations World Tourism Organisation (UNWTO), tourism is one of the main sources of foreign exchange income for many developing countries and the number one export category, creating much needed employment and opportunities for development. International tourism receipts are estimated to have reached US$919 billion (€693 billion) in 2010, up from US$851 billion (€610 billion) in the previous year, an increase in absolute terms, of US$68 billion (€83 billion). According to the Caribbean Tourism Organisation (CTO), the Caribbean is the most tourism-dependent region in the world, with few options to develop alternative economic sectors. The region is home to seven out of ten countries in the world which are most dependent on tourism. The Caribbean now has the v | Strategic Solutions Inc. thirteenth largest tourism industry globally in absolute size. It is first internationally in its relative contribution to the national economy; and is tenth globally in its contribution to long
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