Tourism is Going Places

The travel and tourism industry is the world’s fastest growing industry and the world’s largest employer. In the Caribbean, it is one of the largest and most dynamic industries. Given its economic importance, tourism has become a primary focus of economic and social development policy and has been more fully integrated in the strategic planning of Caribbean countries, rather than remaining primarily externally driven.

In Trinidad and Tobago, tourism is one of the larger growing service sectors. Tourism has been identified by the government as a sector that will play a critical role in the nation’s drive toward economic diversification – a goal intrinsically tied to the national vision of “developed nation status by the year 2020.” The question that begs to be asked however is what is it about the tourism sector that can counteract the nation’s heavy economic reliance on the energy sector, or simply put, why tourism? Essentially, the answer rests in one word – sustainability. Tourism is sustainable. Sustainable tourism has become the professional and personal credo for most, if not all, modern tourism professionals, policy-makers and practitioners but to understand sustainable tourism, a basic understanding of tourism is fundamental. As defined by the UN World Tourism Organization (UNWTO), “tourism comprises the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to an exercise of an activity remunerated from within the place visited.” Sustainable tourism, in its purest sense, is an industry which attempts to make a low impact on the environment and local culture, while helping to generate income, employment, and the conservation of local ecosystems. It is responsible tourism which is both ecologically and culturally sensitive. From a development perspective, Trinidad and Tobago’s industry has the potential to offer significant revenue and employment generating, long-term opportunities to the economy. A study was recently conducted by the World Travel and Tourism Council (WTTC), in collaboration with Oxford Economic Forecasting (OEF) on the economic impact of Trinidad and Tobago’s tourism industry. The conclusive report stated that “over the past ten years, Travel and Tourism employment in Trinidad and Tobago has steadily increased – by nearly 30,000 jobs.” Assuming that growth in the economy and visitor exports remains positive over the next few years, there is strong potential over the next decade to create 3,500 new jobs every year. The total jobs in Travel and Tourism is expected to increase by just over 3.2 per cent per annum between 2006 and 2015”. These growth projections are not hard to fathom given the fact that the tourism industry can be linked to several other industries such as agriculture, information technology, manufacturing and construction, thereby creating both direct and indirect employment opportunities.

WTTC used an identical timeframe to make projections for GDP growth. By 2015, Travel & Tourism Economy GDP is estimated to rise to 16.5% share of total GDP, translated into TT$24.5 billion (US$3.6 billion). Also, within this timeframe, tourism’s contribution to Tobago’s GDP is expected to grow to $1.6 billion (US$239.3 million). It was estimated that by 2015, tourism would contribute to nearly one half of Tobago’s economy.

In terms of revenue generation, tourism will no doubt continue to grow if left to its own natural devices, but to guarantee a sustainable industry with maximum returns for the country, the focus from government and private sector must be on ensuring a high-quality, well-marketed product with a view toward maintaining and increasing visitor arrivals in specific niche markets. The Tourism Development Company Limited (TDC), in its marketing strategy, has diverged from mass tourism, which can exploit and exhaust natural resources, and has taken a more strategic approach through niche marketing.

Business tourism is one of these key target markets and the TDC has embarked upon an international, promotional campaign to position Trinidad and Tobago as a viable and dynamic business tourism destination. The nation’s booming energy, manufacturing and financial services sectors have resulted in steady growth in business arrivals. In 2005, business arrivals accounted for 17.7% of all tourism arrivals, which translates into 81,514 visitors out of a total of 460,195 arrivals for 2005. If all arrivals for 2005 were categorized according to purpose of visit, business travelers rank as the third largest market segment for Trinidad and Tobago, preceded only by the leisure travelers (32%) and those visiting friends and relatives (VFRs) (29.6%).

Unlike the VFR market, which usually consists of visitors from the diaspora who are more inclined to stay with friends and family members, business travelers spend on accommodation, meals, transportation, entertainment and recreation - such as a round of golf or shopping - and are likely to extend their stay to incorporate vacation - such as a post-conference retreat to Tobago. A generic profile of this type of visitor also reveals that the business traveler usually has a higher disposable income and on average, can spend anywhere between US$300 – US$500 per day.

Recent landmark developments in the sector have certainly enhanced the marketability of Trinidad and Tobago as a business tourism destination. One such development is the construction of the 428-room Hyatt Regency Hotel, as part of the International Waterfront Project. Set to open in late 2007, the hotel will be a welcome addition to Trinidad for business travelers and convention goers. Located 30 minutes from Piarco International Airport, Hyatt Regency Trinidad will be one of the few local venues to offer expansive state-of-the-art meeting facilities. With 43,000 square-feet of flexible meeting space, the hotel will accommodate both large and small gatherings. Included in the function space are a 16,000 square-foot Grand Ballroom and a 10,000 square-foot multipurpose facility.

Two full service restaurants, a lobby bar and lounge, and a rooftop bar and grill will offer guests a variety of food and beverage options. Hyatt's award winning chefs will also cater to banquets and other large occasions to be held at Hyatt Regency Trinidad. Guests of the hotel will be able to find relaxation and invigoration, without leaving the premises, at the 9,000 square foot spa and fitness center. The hotel's serene rooftop pool and terrace will similarly provide an escape for business travelers after long workdays.

Other on-stream developments for the local tourism sector also include the refurbishment of the Hilton Trinidad and Conference Centre and the construction of Cara Suites Hotel, Piarco; the Holiday Inn Express, Piarco and the Carlton Savannah Hotel, St. Ann’s as well as developments in airlift to the island, such as Delta’s recently-launched direct service from Atlanta to Port of Spain. Added to Trinidad and Tobago’s track record for hosting large events, such as the annual Trade and Investment Convention, hosted by the Trinidad and Tobago Manufacturers Association and the Euro money Latin Finance Investment Forum, hosted for two consecutive years by the Ministry of Trade and Industry, this niche is already proving to realize its true potential.

While the potential for the industry is tremendous, there is still a need to improve the quality of the product and make a concerted effort to guarantee the sustainability of the sector. For this reason, the sector is also focused on aggressively promoting the destination as an ideal location for tourism investment. Adequate infrastructure remains one of the sore points of the local tourism industry. In comparison to our regional competitors, Trinidad and Tobago’s room stock, with – rooms, is simply not meeting the mark however the TDC’s Investment Promotion Unit is dedicated to changing this current status. One of the primary functions of this unit is to advise investors about the concessions and tax breaks available under the provisions of the Tourism Act to encourage investment in the sector.

Apart from attracting foreign investment, the sector is also focused on investing in human resource development – another primary advantage of sustainable tourism. In her article published in the previous issue of Contact Magazine (Vol.6 No.3, 2006), Mrs. Patricia Butcher, President of the Trinidad and Tobago Hospitality and Tourism Institute stated that Trinidad and Tobago’s hospitality and tourism industry has recognized the need to focus on the development of quality people if it is to maximize the industry’s potential…The TTHTI has become the premier hospitality and tourism training institution with a population of nearly 600 full-time and part-time students pursuing Associate Degrees, Diplomas and Certificate Courses in a variety of areas including hospitality management, tourism management and culinary arts.” The University of the West Indies and the Centre for Hospitality and Tourism in the Bahamas provide additional tertiary education in the discipline. The TDC also facilitates training for many tourism stakeholders such as tour guides, tour operators, community associations and the newly-installed Visitor Guides, employed by the TDC to provide tourist information to visitors of downtown Port of Spain, particularly cruise passengers.

For tourism to succeed, economically, as one of Trinidad and Tobago’s non-energy sector alternatives, it is imperative that the tourism private sector work very closely with government to develop policies and projects that foster the sustainable development of tourism. All stakeholders must work together toward a common vision and while the TDC, the THA and the Ministry of Tourism add impetus to sector development, efforts would be futile without the support of the entire industry. With a united front, the looming global and local threats, such as terrorism, perceptions of crime and erratic weather patterns, cannot succeed in hindering the growth of the industry, and by extension the nation. Collaborations and partnerships forged with non-government and government agencies including the Trinidad Hotels, Restaurants and Tourism Association and the Ministry of National Security are the bonds which will solidify the sector on the road to “developed nation status”.