Report On The Third Annual Caribbean Policy...

REPORT

ON

THE THIRD ANNUAL CARIBBEAN POLICY FORUM "MANAGING THE TOURISM SECTOR: The Public -

Private Interface"

by

Caribbean Centre for Development Administration (CARICAD)

and Caribbean Management Development Association

(CaMDA)

in collaboration with

the Saint Lucia National Trust and

the Saint Lucia Heritage Tourism Programme

February 1999

Table of Contents Page 1. Background 1 2. Opening Ceremony 1 3. Ownership and Policy Issues for a transformation of Caribbean 2 Tourism into the 21st Century 4. Effective Marketing and Promotion strategies 5 5. Intersectoral linkages for transformation of the Tourism Sector 7 6. Enhancing the investment potential of the Tourism Sector 13 7. Workshop Reports 17

7.1 Tourism and the Environment 17 7.2 Collaborative Management for Sustainable Tourism Development 18 7.3 Human Resource Development for Tommorrow's Tourism 20

8. Policy and Management Recommendations 21 9. Closing Ceremony 23 Appendices A. Feature Address: Hon Simone de Comarmond, Minister of Touruism and Civil Aviation of the Republic of Seychelles B. Address: Hon. Philip J. Pierre, Minister of Tourism, Civil Aviation and Offshore Financial Services C. Remarks: Dr. P. I. Gomes, Executive Director, CARICAD D. Programme E. List of Participants

A CARIBBEAN POLICY FORUM

"MANAGING THE TOURISM SECTOR: THE PUBLIC AND PRIVATE INTERFACE"

1.0 Background

The Third Caribbean Policy Forum was held in St. Lucia at the Caribees Hotel, Castries on February 8th and 9th, 1999. Principal organisers were the Centre for Development Administration (CARICAD) and the Caribbean Management for Development Association (CaMDA). Collaborating agencies in St. Lucia were the Saint Lucia Heritage Tourism Programme (SLHTP), a project of the Government of St. Lucia, Ministry of Tourism, Civil Aviation & International Financial Services, and the Saint Lucia National Trust (SLNT). Participants were drawn from Public and Private Sectors as well as non-Governmental Organisations in Caribbean countries.

2.0 Opening Ceremony

The Opening Ceremony was attended by a large number of invited guests from the Public Service as well as the Tourism Industry in St. Lucia. The ceremony, chaired by Mr. Percival McDonald, Permanent Secretary in the Ministry of Tourism, Civil Aviation and International Financial Services, included a lively presentation by the Morne Dudon Primary School choir, and the entire ceremony was covered by several media houses. Remarks were made by the Chairman of the St. Lucia National Trust, Mr. Cletus Springer, who expressed the satisfaction of St. Lucia and his organisation for the opportunity to co-host the Forum. He referred to the timeliness of the theme and its importance to countries like St. Lucia. Mr. Wendell H. Kellman, President of CaMDA, brought greetings from the members of his organisation and expressions of appreciation to the Government of St. Lucia and the two local hosting agencies for their hospitality and courtesies. He referred to the Tourism Industry as the Caribbean region's "biggest money earner" and the need for ensuring that further development of the industry was sustainable.

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Dr. P. I. Gomes, Executive Director of CARICAD, in addition to expressions of appreciation and welcome, referred to the strong belief at CARICAD in the idea of forging, building and deepening partnerships across the Public and Private sectors with tangible involvement of all kinds of organs of Civil Society. He claimed it was not only opportune to deal with the complex issues of development, it was an imperative which CARICAD and CaMDA had recognised and, therefore, have held to date three annual activities of which this Policy Forum was the third. (See Appendix C). The Feature Address was delivered by Special Guest Hon. Simone de Comarmond, Minister of Tourism and Civil Aviation, Government of the Seychelles. The title of her address, which is presented in full as Appendix A, was "Towards Sustainable Tourism Development. A perspective from the Indian Ocean". The opportunity to learn of experiences in a similar island situation half a world away was not lost on the audience, who were most receptive and appreciative of the Hon. Minister's most comprehensive address. The Policy Forum was officially opened by the Hon. Philip J. Pierre, Minister of Tourism, Civil Aviation and International Financial Services, Government of St. Lucia. The complete text of the Hon. Minister's address is cited as Appendix B. A Vote of Thanks was delivered by Mr. Felix Finisterre, Coordinator of the St. Lucia Heritage Tourism Programme.

3.0 Ownership and Policy Issues for Transformation of Caribbean Tourism into the 21st Century.

Mr. Luther Miller of the Caribbean Tourism Organsiation (CTO) Barbados, served as chairperson of the discussion. The two panelists were Mr. Rodinald Soomer, Executive Vice President, St. Lucia Hotel and Tourism Association and Mr. Stanley Beard, member, Tobago House of Assembly, and Secretary, for Tourism, Planning and Information.

3.1 Mr. Soomer’s presentation dealt with “growth with re-distribution”; transforming

foreign dominated investment patterns into local ownership in a variety of ways; marketing the Caribbean as a region; and policy on the cruise stayover issues. He concluded his presentation as follows:

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“ The many challenges that face Caribbean tourism in the 21st century are by definition bigger than each of the islands individually, bigger than their

Governments, bigger than their private sectors. Moreover, the physical and economic smallness of these Caribbean islands provides another compelling basis for public-private sector interface.

What might all of this mean in practical terms? The public and private sectors must research and analyse the tourism sector together, and by extension they must formulate tourism economic policy together. Collaboration between the two sides must be systematic, structured and institutionalised if necessary. One key objective of this structured cooperation must be to get the economic equation right for the sector. We must not assume that we have it right already. That equation will embrace factors such as growth, employment, foreign exchange, income distribution, investment, the incentive framework, taxation, marketing, and major items of operating costs, particularly utility costs. As put in the Caribbean Travel and Tourism Millennium Vision, the objective is to ‘make travel and tourism a strategic economic development and employment priority.’ In fact, I would also commend to you the other three objectives of that Millennium Vision, which are to:

• Move towards open and competitive markets • Pursue sustainable development • Eliminate barriers to growth"

(full text available on request) 3.2 Mr. Stanley Beard addressed the topic with a vibrant address drawing on the

Tobago experiences. He opened with a cry for a Regional Tourism Policy, a common vision held by all politicians in Caribbean countries and subsequently shared with the general public. Only with such a shared vision could be seen an end to the current position of investors with great ideas for transforming critical areas of our Caribbean environment, such as wetlands, into low paying jobs for locals whose fishing industry has been destroyed.

The involvement of Caribbean people, through community tourism activities was an

issue he reported as having been successfully undertaken in Tobago through the Tobago Heritage Festival, where cultural activities were performed, not in the hotels, but in the communities themselves. Through legislation, there are now controls placed on “what” can be done “where”, and the population is no longer “cut-off” from the exclusive hotel visitor.

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Mr. Beard pointed out that “Tobago should blossom through tourism but not at the expense of social and cultural heritage. Do not be dazzled by the dollar: Columbus and glass beads long gone!”

Partnerships, the transportation industry (3 hours required to make the 35 minute

hop from Tobago to St. Lucia), and the “turn around tourists alumni concept” were other issues explored in his address. In conclusion, Mr. Beard turned again to the decentralization of tourism as has been done by policy in Tobago and to the need for Tourism practitioners to behave as a region and thus impact on politicians.

3.3 The Discussion

The Chairman, Mr. Miller opened the discussion by disagreeing with some of Mr.

Beard’s positions, namely, that emoluments from tourism are generally good, not low paying; that governments should facilitate rather than participate in the industry; and asking whether we, as a people are prepared to pay the price for point to point air transportation.

From the floor, a number of contributions were made centering on the following

issues:

Limits to Growth - observation made from the Seychelles experience that government policy there regulates the number of visitors allowed. The question was raised, “should the Caribbean begin to establish limits on visitations based on carrying capacity?” Another speaker claimed that the Caribbean countries do not have the capacity to manage unrestricted growth; that re-distribution of the benefits of tourism is also essential as they are too concentrated, at present, and there is not social acceptability of tourism as a result.

It was agreed that the Seychelles limit of 2000 rooms is instructive for the Caribbean, which has the appearance of being a large region but in reality within the world context is small, even minute.

Investment/Financing/Ownership - Local owners of tourism facilities frequently

find themselves competing with outside investors for funds held by local banks and usually are the losers. Governments which prohibit outside investors from access to local funds are to be lauded.

There are models of local ownership within the Caribbean of large and small

dimensions; these models need to be studied and resources put into determining what the key factors are for success.

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The public/private sector partnership concept has been ‘talked’ about for years, yet has not appeared to work within the region, though it has been successful extra-regionally. A study should be done on “how to” and understanding why others have succeeded.

Domestic Market - Mr. Beard commented that the Caribbean has blinkers in

respect of marketing and ignores the domestic Caribbean market which knows no season and has an ever increasing capacity for regional travel. Quality at Bed and Breakfast and Small Inns can be top class and should not be ignored.

Planning/Future Vision - Several speakers expressed frustration with the

“quality of planning”; the absence of communication about the real prospects for involvement/investment; and the defense of the status quo, which is based an incremental reaction. A new paradigm, a clearly enunciated vision of the future of tourism in the region and in individual countries, is overdue.

4.0 Effective Marketing and Promotion Strategies Mr. Hilary Modeste, Director of Tourism, St. Lucia Tourist Board, served as

chairperson for this session. In his brief opening remarks, Mr. Modeste noted that the biggest challenge in marketing was the complexity of the industry and the fragmentation of the market, which had implications for Product Development and Marketing. He expressed the hope that the Caribbean as a destination and as a “Branded Product” would be the theme of the discussion as there was a competitive advantage in working together.

He introduced the three panelists, who were: * Ms. Jane Belfon, Management Consultant, Grenada Tourism Master Plan; *Ms. Coletta Dc Dermott, Executive Director Tourism Association of Guyana; and

* Dr. Carla Noel, Tourism and Industrial Development Company (TIDCO), Trinidad and Tobago

4.1 Ms. Jane Belfon opened her remarks with the request to redefine the total market

as both travellers and tourists. She noted that Marketing and Promotion were the principal management influences on the industry and that marketing was the link between supply and demand. The three components of the “total market” were international visitors, regional visitors and residents of the host country, and that all must be considered visitors or users of the tourism products.

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She postulated that there were 4”P’s of great importance in marketing; Price; Promotion; Place and Positioning.

4.2 Ms. Collette McDermott of Guyana, used that country’s current experience as a

lesson in “potential - unrealised”. She felt that a healthy tourism industry in Guyana could deal with a number of the country’s economic problems, but tourism was not yet a priority with the government.

As a nation, Guyana has unequaled assets for tourism, among them: rain forests;

exotic flora and fauna not known in other Caribbean nations; world recognised waterfalls; six races and thirteen languages; and a heritage and history of many facets. However, the single most significant obstacle to marketing was the lack of an “image.” The current marketing thrust to the small, niche market, nature or eco-tourism based, was collapsing on itself because standards were not set or maintained.

She felt that the lesson here, a full understanding of the targeted market, was

essential prior to accessing it. The absence of a government appointed Tourist Board was perhaps the single major deficiency in Guyana’s marketing strategy.

4.3 Dr. Carla Noel of Trinidad began her presentation with the observation that the

topic of Tourism Policy could not be discussed enough as it was a major regional industry. She noted that, tourism was the world’s largest industry accounting for 11% of employment and GDP.

She posited that “rest and relaxation” is a renewing resource and expressed

concern that the University of the West Indies neglected the industry and yet is the only appropriately placed regional institution to adequately study the relevant issues. One of these issues she felt was that of the domestic market and the necessity of ensuring a sense of “nationhood” before a “destination” Having observed the Jamaican experience where to a certain extent national pride is versus “smile for the tourist”, Trinidad is shortly to embark on a major local marketing strategy as a first step.

Dr. Noel also questioned the message sent of “sun, sand and sea” and whether it was

the appropriate message for the Caribbean, or whether “Education, excitement and eco-tourism” might be more feasible. She noted the Cayman Islands approach to a specific niche market of “sea and dive” with “relax Cayman Islands style” is suited to a US market but not a European market. She credited the cruise industry with outstanding marketing strategies and first class training of staff, which could be emulated by the Caribbean as a region.

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4.4 Discussion from the Floor

Marketing - Cooperation in sending the message about the Caribbean is essential.

The OECS needs to get its act together as far as tourism

marketing goes;

CUBA looms as a challenge to the rest of the Caribbean as it re-emerges on the tourism scene;

Generally, marketing is dull and boring, needs creativity, with the uniqueness of each island contributing to a whole.

Dissent - there were expressions of disagreement with Dr. Noel’s position

on rest and relaxation, which she replied was only the “supply” side of tourism as “R & R” is renewing experience which can and does occur during Caribbean vacations.

- Questions emerged about the Forum’s process, specifically, how

would the concerns and issues be carried forward to agencies such as UWI?

- Dr. P. I Gomes responded that the Forum does not have the

authority to legislate, however, wide distribution of the report and dissemination of the ideas via participants can and does eventually impact on policy makers. He also indicated that after the fifth Policy Forum, the modality of the Forum would be examined and its impact assessed.

- Participants stressed the need for clear positions and

recommendations to politicians particularly on the issues of taking first steps towards regional approaches.

5.0 Intersectoral Linkages for Transformation of the Tourism Sector Dr. Basil Springer, Consultant with the Caribbean Development Bank, facilitated

the final session of the first day which took the form of concurrent round table discussions. Having provided the small groups with broad directives and background, as well as specific forms to complete after their discussions, Dr.

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Springer encouraged the groups to complete the exercise, which was based on developing “Smart Partnerships.”

The group reports are presented here in summary 5.1 Group 1 Linkage Sector - Eco-tourism encompassing all language areas of

the Caribbean as well as traditional eco-tourism. Goal:

• Expand convention potential of Caribbean • Development virtual convention village - maximise existing structures etc. • Bring convention to Caribbean ➙ business activity ➙ promote business other

Caribbean island: Gda Spice/Jam Reggae/Sunsplace/Trini Carnival etc • Develop own convention activities ➙playing steelband ➙ cruise ➙ rum.

Critical Success Factors:

• Regional marketing strategy ➙ Single market economy • Regional Tourism curriculum ➙ Re-orientation and expansion of programme

➙ UWI • Public/private sector/social partners cooperation • Uniform legislation • Standard setting ➙ "Car 10,000" (a new Caribbean standard would be

introduced) • change stereotyped “political will” ➙ new paradigm • Intense community based involvement • Reduction of crime rates

Resources: • People ➙ skilled and well trained • Infrastructure • Technological Development ➙ keeping pace

Benefits:

• More equitable distribution • Reclaiming of Caribbean products - re-establishment of ownership • Employment generation • Reduction of economic dependency • Changing Caribbean mind set - enhancing Caribbean identity • Reasonable control systems

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Group 2 Linkage Sector - Eco Tourism - Spice for life Goal:

• Demand for herbs and spices, and Caribbean cuisine • Import substitution, export revenues • Community development, community tourism, heritage tourism, cultural

tourism/preservation. Critical Success Factors:

• Scientific information on what can be grown • Market Information

• local market (domestic) • Tourists • Export markets • Facilitation by government • Land tenure, crop insurance

Resources: • Research Lab • Marketing expertise • Market intelligence • Agricultural credit • Government facilitation Benefits: World wide recognition, improved standard of living in the community, revenue generation, and foreign exchange support for other agricultural products.

Group 3 (a) Linkage Sector - Health Tourism Goal: Development of a niche market in Health Tourism which caters to diabetics, vegetarians and includes organically grown food. Critical Success Factors:

• Research • Publication of results of research and implementation of support structures

eg. growing of crop/training of staff.

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• Revival of areas of non-traditional produce. Packaging of products with natural/indigenous material banana leaves, straw etc. no more plastics, wooden boxes and crates.

Resources:

• Mostly land utilization building on traditional ways of farming • Adequate Human resources • Information technology related to wellness • Available and appropriate technology for organic agriculture

Benefits:

• Wellness of people • Income generation and employment • Diversification within the Agricultural Sector • Improved nutrition and heightened awareness of proper dietary practices • Preservation of the environment due to a reduction in the use of chemical

fertilizers • Use of local materials for packaging

Group 3 (b) Linkage Sector: Youth/Scouting Tourism Goal: Eco scouting program to include other youth groups with a penchant

for the outdoors (22 million scouts world wide) Critical Success Factors:

• Revenue for Scout Association • Development and sustainability of the Scout Fraternity • Promotion of brotherhood • Appreciation for the environment • Among the youth, induction to the tourism industry

Resources:

• Land - conducive to exotic camp sites • Buildings - Mess halls and bathroom facilities • Vibrant Scouting Associations already exist in several territories

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Benefits: • Sustainability of the Scouting Association and Outreach Programme • Job opportunities as tour guides • re-enforcing the value systems among youths in the captive audience of

campers • Development of a pool of talent - those who manage the camp as well as

development of cultural talent, singers, musicians etc. • Marketing of the country to the youth • Cultural exchange among Scouts from various countries

Group 4 (a) Linkage Sector: Heritage Tourism/EcoTourism Goal: To provide greater choice of things to do at the destination and to maximise visitor spending on good quality sites and attractions, at the same

time bringing visitors in greater contact with host population (culture). Critical Success Factors

• We must have high quality products/services which provide memorable experiences • Must be financially viable • Must be professionally packaged and professionally marketed • Must provide for local involvement

Resources:

• To identify a range of theme parks, eco-parks, eco sites, historical sites, and cultural sites.

• Entrepreneurs who are prepared to participate in such a project. Benefits

• Preservation and restoration of historical/cultural sites • Foreign exchange earnings • Provide range of opportunities in terms of choice to the visitors • Opportunities for development of small and micro businesses

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Group 4 (b) Linkage Sector: Computer Tourism Goal: Opportunity to market and sell Caribbean Tourism and other products to

the world via the internet mail. This will afford the matching of buyers of a wide range of products and services including tourism services.

Critical Success Factors:

• Need to have consistent, high quality goods and services • To identify potential niche market sectors for range of products and

services • An attractive, easily accessible web-site through various search engines,

possibly hyper-linked to other high quality sites offering quality products and services.

Resources:

• Need to identify and sign-on to project, a number of tourism suppliers (rooms, diving services, taxi services)

• Reliable supply of high quality products/services • Need a domain provider and web-site manager.

Benefits:

• Will enhance the image and visibility of the region to the consumer of regional products which might not otherwise have been available to them.

• Increase foreign exchange earnings through e-commerce • Affording the region access to state of the art technology and e-commerce • Could stimulate the development of micro and small business.

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Day Two 6.0 Enhacncing the Investment Potential of the Tourism Sector Day two began under the leadership of Mr. Marius St. Rose, Special Advisor, St.

Lucia National Commercial Bank. Mr. St. Roses’ substantive position is Vice President (Operations) of the Caribbean Development Bank. He introduced the topic by noting that Tourism requires high capital costs; is a business fraught with risk; and demands long time frames and equity financing. He reported that 1998 saw an 11% decline in flows of investment to developing countries. This leads to a greater demand on domestic sources of finance and the question,” how to mobilise domestic funds?” He also posited the question, "How do our countries improve the tourism product to maximise returns to the 30% - 35% level expected by foreign investors?”

Mr. St. Rose introduced the three panelists, who he hoped would address some of

these issues. The panelists were, Mr. Luther Miller, Caribbean Tourism Organisation, Dr. Barrington Brown, Management Consultant, St. Kitts & Nevis, and Mr. Cecil Miller, Caribbean Development Bank.

6.1 Mr. Luther Miller began his presentation by looking closely at the local investor,

who required technical assistance as well as money, but may not be aware of or admit that need. The local investor requires a cost that makes him/her competitive and traditionally, Caribbean Governments have used a tax base to run their countries, thus frequently placing the local investor in a punitive and uncompetitive position. He recommended that tax regimes across the region be reviewed.

When turning to the foreign investor, he recommended exclusion from local capital

markets and the usual tax free periods, however, he noted that lower interest rates overseas place the foreign investor at an advantage over the local. He cited several potential sources of domestic capital, including pension funds, NIS, Insurance Companies, Banks, Mutual Funds. In developed countries, where Governments have balanced budgets, there is no need for government to also tap into these capital resources as occurs in the Caribbean. The Government actually competes with the local investor for scarce capital.

The investment climate created in any given country by the government may vary,

but in general, Caribbean Governments often appear to have a jaundiced view of the Private Sector and this impacts on policy and the general investment climate. Where governments invest directly in the tourism sector, distrust arises as Government becomes a competitor with alleged advantages.

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6.2 Dr. Barrington Brown used his St. Kitts experience as the basis for his presentation. As background, he postulated that policies, legislation, trained personnel, infrastructure, investment funds, and the “will and skill” of management, must all be in place for a successful tourism venture. Too often the mix is out of sync or not in existence.

He considered St. Kitts “a work in progress”. There has been major infrastructural

work to airport and seaport, staff training, fund raising and world wide journalistic junkets. St.Kitts stayover visitation was growing annually at 5% and recently there was a 50% leap in cruise ship visits. St. Kitts had determined that the one third south eastern section of the island was for tourism development and a $50mUS investment was made. After eight years, the investment is still sitting there and has not attracted the necessary outside investment.

Natural disasters, such as the hurricane which wiped out the seaport, dampened

both foreign and local tourism investment. Government will be forced to jump start the process with no clear assurance of success.

Aside from this main issue, he also touched on the handicraft sector, which needed to move from Home Craft to factory craft, and further noted that Cuba was already cornering this market. He felt the overriding task before the Regional Tourism Industry was to “caribbeanize” the product. By way of example, he cited the Four Seasons Hotel in Nevis, which was restricted in height to below coconut tree level, and incorporated a Caribbean style in its layout and architecture. Visitors and locals love it.

In conclusion, he recommended making the project fit the format; acquire a new mind set by thinking inside as well as outside.

6.3 Mr. Cecil Miller’s presentation contained a number of observations on the trends

within the Caribbean and focused on Profitability, Equity and Obstacles or hindrances including prevailing attitudes and perceptions.

Profitability, according to Mr. Miller, will affect availability more than anything else, therefore, it is impractical to conceive of any entity which cries out for subsidies and is entirely dependent. The Caribbean has the highest investment costs in the world and the lowest returns, therefore, few international investors are knocking on the Caribbean's door, The hotel sector, small hotels in particular, are the primary concern in this scenario.

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Equity, Mr. Miller claimed, is the most misunderstood concept of financing in the Caribbean, and reflects a basic lack of knowledge. In general, there is no shortage of loan funds in the Caribbean, but there is a lack of Equity to mobilize those loan funds. Caribbean entrepreneurs have an excessively strong need to control their ownership of assets and money, and as a result are unwilling to share to the extent that they will favor holding on to a hotel that is failing rather than sharing in one that is successful.

Sharing within an equity arrangement demands a level of reporting and financial diligence not always practiced by such owners. Caribbean tourism entrepreneurs must change their practices and attitudes towards records, reporting and financial diligence if they are to reach the pinnacles of financial success. A paradigm shift is required. If the debt of a loan is 70% of expenditure, too much revenue is devoted to debt servicing. A 50/50 debt/equity ratio is required for success and equity should enter the equation as early as possible as preference shares to ease the debt burden up front. These shares can be purchased back at a later date to give the principal owner a greater sense of ownership. Of note is the single known employee owned Hotel in the region, Heywoods in Barbados, where $15m in shares were sold within one week. The foundation for sound equity does exist in the Caribbean.

Some of the obstacles mentioned by Mr. Miller were:

The absence of freedom of capital movement regionally; Aliens Land holding Licensing Legislation which even affects shares as assets; the absence of more Caribbean Brands, such as Sandals and Superclubs, which is

tantamount to BRAND EQUITY; the absence or unwillingness of small hotels, who need to drive the industry, to

cooperate with one another to achieve the cost- efficiencies of the large hotels. In Mr. Miller’s opinion, cooperation at any level was as rare in the Caribbean as it was in prerequisite for success.

6.4 Some of the issues, concerns and observations realised during the discussion period

were as follows:

- The policies which should obtain on interest rates and spread to ensure a competitive atmosphere;

- Management skills as a major constraint and the need for a cadre of well trained

management personnel;

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- The Singapore experience of Government placing experienced personnel on Boards and later privatising these operations;

- The need for a Venture Capital Policy and facility in the region;

- Vision is required, funds are not as limited as perception would have it;

- The cost of financing - greater cost efficiency within the banking sector;

- Should small hoteliers be able to benefit from subsidized loans as do small

farmers?; - Governments should have Investment and Employment Policies in place, which

include all conditions of investment eg. Building Codes for hotels such as, not being higher than coconut trees.

- 21st century should see a new approach and new attitude on the part of

government ministers, based on training and orientation to the issues surrounding tourism;

- A model of profitability for 30 - 60 bed facilities should be promulagated to

offset the trend that "Bigger is Better"; - Attractions and non-hotel facilities such as luxury villas must be scrutinized and

local investment rather than foreign encouraged; - Craft is a multi-million dollar industry in other parts of the world, yet is treated

in the Caribbean as if it is only for those who "can do no better". This perception must be changed;

- There are entreprenial opportunities within the Industry to fill the gaps such as

maintenance, landscaping, laundary and financing; - Case studies are needed to inform practitioners.

Chairperson, Mr. St. Rose concluded the discussions with the observations that commercial banks are selling a service at a cost; that the public sector must be a catalyst, but know when to step out and hand over fully to the Private Sector; and finally, he noted that if a country does not display interest in the Industry, investors will not come in.

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7.0 Concurrent Workshops

Three concurrent workshops led by separate teams of facilitators/resource persons on three separate topics occupied the balance of the final morning. The reports of these workshops were presented to plenary after lunch, both verbally and on flip charts. The reports are summarised here.

7.1. Tourism and the Environment

Tourism and the Environment - facilitated by the Natural Resources Management

Unit (NRMU) of the OECS Frame of Reference

No clear policy framework in the OECS states on conservation based tourism. 1997 study highlighted key issues to be addressed * Integrated Planning * Legislation, Regulations, Standards and Accreditation * Sustainable Tourism Management and Development * Impact Monitoring and Enforcement * Capacity Building and Awareness for Environmental Issues

Focus of Discussions

1) Project proposal by Sandals to de-silt/cleanup Choc Bay and La Toc Bay. 2) Offer to provide funds and other resources towards project. 3) Interest, position displayed by Government Agencies not translated into action. 4) Private sector support should be encouraged.

Output and recommend

- Need for community education, community involvement. - Need for new, radical, frame-breaking approaches in addressing issues. - Notion of the impact of the human element on the environment - greed, use of

state lands for private gain, sub-marine tours.

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- More stringent audits on existing businesses, given that environmental impact assessments and social impact assessments are required for new projects.

- Need to institutionalize the helpful mechanisms that serve as success factors including involvement of persons who can influence the process through personal networking.

- Need for demonstrated commitment by the political directorate to facilitate achievement of desirable goods.

- revised tax regime to allow private sector to retain funds to be directed to projects related to Tourism and the Environment.

- stakeholders meetings to be organised. - Need for greater sensitivity to the importance of ISO 14,000 / WTO standards - Need to recognize that strategies must be influenced by an understanding that

we are in a process

7.2 Collaborative Management for Sustainable Tourism Development

Facilitated by Felix Finisterre of the St. Lucia Heritage Tourism Programme & Giles Romulus, St. Lucia National Trust.

Agreed that there is no one formula for collaborative management. - It is an emerging process and experiment.

Agreed on the following basic activities. - Identification of niche market - Work in smart - partnership - Productivity - greater competitiveness - Sustainability - issues of labour process/technologies/communication/management/tactical

planning/energy usage.

At the Micro Level 1) Need for mechanism to facilitate collaboration

- act as a go - between - minimise conflict and continuously address conflicts as they emerge

a win-win situation for all. (Soufriere project St. Lucia) - Minimise possibility for conflict

2) Building capacity at community level

- help core groups to develop projects. - access donor funding (Oistins Project - Barbados)

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3) A driving force is needed to carry forward a project - leadership - vision - management (Future Centre Trust Barbados)

4) Integrated planning

- tactical management - strategic intervention

Need for Governments to be proactive with respect to community based tourism products. (Gros Islet, St. Lucia)

At the Macro Level

5) Establish / strengthen social partnership agreement

- national consultation / collaboration. 6) Government to provide tourism extension services

- technical assistance (banana assistance vs tourism) 7) Incentives for community tourism development.

- especially ancillary services. 8) Need to develop standards to monitor quality

Micro/Macro Levels 9) documentation of success stories

- exchange and sharing of ideas of approaches in capacity building. - dissemination of information

10) The sourcing of expertise should not be restricted by cultural, national or

other barriers that exist in the Caribbean. At the same time, must train locals to succeed.

11) Develop smart-partnerships between communities and tourism officials

(adopt the farmer programme St. Lucia)

12) Community groups need to be strengthened and empowered to take their rightful place as co-manager.

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7.3. Human Resource Development for Tomorrow's Tourism

Facilitated by Mrs. Agnes Francis, Management Consultant, St. Lucia and Mr. Roosevelt Finlayson, President, MDR Quality Systems, Bahamas

* Bahamas Centre for training of persons 16-30 years - 6 months course -

Ministry of Youth and Culture. - Includes basic training in craft sector. BAIC - helps them to set up businesses. - Government gets them access to markets. BAIC - holds seminars / Workshops to upgrade the skills.

* Bahamas - Centre for entrepreneural skills - local Association developing and

implementing their own courses. * Credit unions - should get into development of training programmes.

* Grenada - vendors - oldest group of entrepreneurs - designed a comprehensive programme - including customer relations - ongoing process - outside agencies and Tourist Board - finding vendors organising their own training.

Recommendations 1) How do we deal with making tourism a viable career choice? - including tourism into the school curriculum - the need to change the cultural values and orientation to tourism, service vs

servitude (perception) community education. - HR Dept. in Government's must liaise with industry

- policy for persons to under-study those in managerial positions or succession planning.

- preparing nationals to assume top management positions. - need to establish HRD policies and implement them at the investment stage. - the need for career guidance and resource materials. Tourism organisations

should become more proactive and go into schools to give talks. OECS Education reform strategy (question raised about whether it is involving or dealing with tourism issues as part of education reform.)

- separate conference should be organised for discussion on HRD issues - the need for the findings of the CTO Needs Assessment to be circulated.

- closer collaboration between the tourism and hospitality industry regionally to facilitate transfer of skills across countries.

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2) Entrepreneurial skills development for the informal sector

3) Top management - How do we get top management to recognise need for training?

- do not call it training call it "retreat" to increase the bottom line. - success stories and case studies should be used in training management. - must be related to business issues. - need to get peers, people they respect recommend that they go. - must be in a top quality facility. - conducting of a power survey or audit of HR available in the island.

Barbados' approaches to learning - the three C's

Collaboration : cross sectoral training Competitiveness :

Creativity : 8.0 Policy and Management Recommendations

The final session was chaired by Mr. Cletus Springer, Chairman, St. Lucia National Trust. There were many contributions from participants and the chair which are presented here under the thematic title: The Way Forward, and grouped under sub-titles of

- The Process - Strategic Allies - Governments - Research Studies and, - General

8.1 The Process

• Concerns expressed about the inadequacy of the time spent together to complete the Process, were redressed by acceptance of the fact that the Process was not yet closed, and that the use of the Report and individual actions alone will complete the Process.

21

• Dialogue was seen as an important format for furthering the causes expressed during the Forum. Dialogue continues the Process.

• Everyone present at the Forum has a duty to use the information and directives

and disseminate them throughout their own workshops and contacts via whatever means appropriate eg. Newsletters.

8.2 Strategic Allies

A number of Strategic Allies were identified as critical to “The Way Forward.”

CTO - particular reference made to identifying how EU funds may be spent CHA (Caribbean Hotel Association) OECS Directors of Tourism - More regular meetings recommended to achieve

unity of policies. Ministers of Tourism should establish a Standing Committee The Media to be seen as a “Smart Partner;” relationship to be developed CARICAD - recommended to conduct a Literature Survey on areas on which it

holds a mandate e.g. policy and HRD. OAS, Particularly on projects involving small hotels Multiple Sources for Human Resource Development of Industry workers and

Management. Intersectional Linkages, eg Agriculture, Health, and Education were critical for

the success of the Industry. 8.3 Governments

Several specific areas were recommended for the attention of regional

governments

Education Reform Strategy should be approached regarding the input from the Tourism Sector. Caricom, through Ministers of Tourism should be more proactive in reaching a

new regional paradigm in Tourism Policy. The development of a Model Sustainable Tourism Development Policy was strongly recommended. The enabling environment for appropriate tourism development is dictated by

politicians, therefore, politicians must be fully aware of and sensitive to what technocrats are trying to do.

22

Encouragement of Intersectional Linkages, particularly between Agriculture and Tourism was seen as essential. These critical pillars of Caribbean economies cannot be seen as in competition with one another, but rather, complimentary.

8.4 Research

Case Studies and general research were needed in the following areas:

Equity/Loan ratios - what is the most successful ratio? Analysis of key essentials and criteria for viable small or mini hotel operations; Demonstrations instead of presentations at future gatherings to share both

successes and failures for greater learning; The ISER (Institute of Social and Economic Research) representative

acknowledged that although recent studies had looked at small and micro enterprises, the tourism sector had not benefited from any major study in recent years. It was noted that the Forum provided ISER with the key factors which should form part of such a study.

8.5 General

ISO 14000 Standards - the Chairman noted with pleasure the project designed

to assist small islands to achieve compliance. Participants were urged to avoid sending the Report to policy makers, but

rather to seek an audience and make a presentation of the Report. Participants should each ask themselves “what can I do at my level to change or

affect the way Forward?” 9.0 Closing Ceremony

Dr. PI Gomes chaired the Closing Ceremony and reiterated the expressions of gratitude to the various supporters and to the participants. He welcomed the Hon. Menissa Rambally, Parliamentary Secretary in the St. Lucia Governments’ Ministry of Tourism, Civil Aviation and International Financial Services, who had witnessed the prior summary recommendations session. Miss Rambally was invited to make the Closing Remarks. Hon. Rambally expressed her pleasure at being able to attend the Closing and observed in her brief time listening to the conclusions, it was clear that the two days had been successful. She reported that the Ministry in St. Lucia was pleased

23

to have been associated with the Forum and wished to provide further support and encouragement to initiatives such as the Policy Forum.

She felt it was very critical for decision - makers and technocrats to come together and forge stronger linkages between such Forums and Cabinets of Government. The implementation of the ideas promulagated during the Forum would, in the long run, determine the Forum’s success.

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APPENDIX A

PUBLIC/PRIVATE SECTOR POLICY FORUM:

MANAGING THE TOURISM SECTOR

CARIBBEES HOTEL - ST. LUCIA

(8th February 1999)

Keynote Address by Mrs. Simone de Comarmond

Minister of Tourism and Civil Aviation of the

Republic of Seychelles

Honorable Ministers Invited Guests Ladies and Gentlemen

1.0 It is indeed a great pleasure and honor for me to deliver the keynote address on the occasion of this important Public/Private Sector Policy Forum - Managing the Tourism Sector.

2.0 On the outset, it is most befitting therefore, for me to express my sincere

thanks and appreciation to CMDA (Caribbean Management Development Association) and CARICAD for this gracious invitation. Furthermore, I wish to also thank St. Lucia for the warm welcome and hospitality extended to me and my delegation since our arrival here.

3.0 Ladies and Gentlemen,

Prior to coming here, I have had the rare opportunity of experiencing Jamaica and Barbados, whereby I have been able to acquire first hand information on their respective tourism and related industries, their prevailing setbacks, and their plans for the future.

4.0 Today, I can vouch that it has so far been a most rewarding and fruitful

experience indeed. As such I can assure you that in our continuous quest to develop our tourism industry on a sustainable basis, valuable lessons will continue to be drawn by Seychelles from the Caribbean experience.


In his address before the 42nd regular session of The United Nations General Assembly, the Honorable Dr. Kenny D. Anthony, Prime Minister, Minister for Finance, Planning, Information and Public Service of St. Lucia said and I quote:

"Our historical moment is a defining one whereby change has brought us to the stage at which we can either transform or be transformed. As such all of us large as well as small nations, individuals as well as governments, are challenged to make a decisive break with the old ways of moving and seeing things," end of quote....

6.0 Yes, it is indeed an accepted fact that all of us present here today are facing challenges and opportunities that are a world apart from those tackled yesterday by our predecessors. And yes our intention as small island developing states with similar specificities and vulnerabilities, should not and must not be merely to lay bare goals, but more so to offer broad insights into how business of all sizes and stripes might tweak, reposition, repackage or reinvent themselves to remain successful in this toughest, and yet most lucrative era in business history.

7.0 Consequently, today I wish to take the opportunity of this forum to give you a

brief insight as to how we in Seychelles are addressing these many challenges, and yes, opportunities.

8.0 Ladies and Gentlemen

As you are all well aware, the Seychelles is made up of a group of 115 islands, lying 41 South of the Equator and lying between the Indian Sub-continent and mainland Africa in the middle of the Indian Ocean. Out of its 454 sq.km. of land it has devoted 50% of that to strict conservation,

9.0 Like in many Caribbean islands, our success story lies to a large extent in finding

the right balance between dependence and reliance on tourism for its economic and social development and a concerted effort to protect its rich environment and fragile ecosystems,

10.0 Today, Tourism represents 70% of our foreign exchange earnings; 18% of both

employment and Gross Domestic Product. We are blessed with the natural beauty of our environment and the vast expanse of sea as our resources. Seychelles is spread over 1.4 million sq. km. of territorial waters, which forms its EEZ.

1 1.0 Ladies and Gentlemen,

Tourism development in Seychelles has taken place in the absence of abundant natural resources. The constraints stemming from remoteness and particularly high transport costs have been alleviated by the policy of marketing Seychelles as an exclusive holiday destination.

Today the industry has not only led to economic development through its own thrust, but has in addition 4 acted as an initiator and a catalyst in the growth of the other sectors of the Seychelles economy.

1 2.0 The additional demand generated by the growing number of visiting tourists has expanded the limited domestic market with a positive impact on agriculture, fisheries and industrial development. With regard to agriculture, it has provided markets for agricultural products.

1 3.0 Still more the industry has widened the scope for import substitution industries

and has permitted the existence of a number of enterprises including dairy production, meat processing, beer and soft drinks manufacturing, mineral water bottling, furniture production etc. It has also generated a growing artisan craft industry.


Selling the tourism product in Seychelles is tantamount to selling the environment and the crystal clear waters and rich marine life which include a wide variety of fish, crustaceans, shells, corals and algae. The Seychelles authorities have at the outset been avant-garde with respect to limiting the adverse effects of some tourists' behaviour, for example strictly banning spear fishing, lobster fishing and declaring a number of marine national parks around the coastal areas within which no exploitation of living resources is allowed. In addition, the authorities have sensibly placed a ceiling on the number of visitors. Seychelles can only welcome 5,000 visitors at any one time.

15.0 This would represent an annual average of approximately 1 50,000 visitors.

Moreover, small hotel developments of 24 rooms or less are reserved specifically for the local Seychellois entrepreneurs.

1 6.0 In order to market itself as an eco-tourism destination, instead of depending on

the traditional sun, sea and sand image, the Seychelles has also placed conservation issues high on its political and economic agenda.

Consequently, reserve sanctuaries have been created for rare species of fauna and fora in addition to the marine national parks earlier mentioned. No less than 10 protected areas have been declared in Seychelles.

17.0 In endeavouring to safeguard the delicate balance between development and the

love and care of the environment, strict planning regulations have to be adhered to; also all tourism projects are carefully appraised viz. their financial, economic, environment and social impacts. Often, promoters are expected to undertake Environment Impact Assessment studies before their project can be considered by Government for approval.

It is also worth noting that the Government has been able to capltalise on revenue earned from Tourism and be directly and effectively involved in undertaking various social programmes.


A country not recognising the importance of sharing its wealth earned from tourism, is bound to lead to a situation where the local population resents any tourism development and in possibly creating antagonism against visitors. Thus through a series of well-developed social programmes, the population is provided with free primary health care, free basic education and a comprehensive social security system for the sick, the aged and the disabled'.

1 9.0 As such in its program of nation building, the Government has long realised that

being small is indeed our biggest strength. A crucial factor therefore was to build a nation where people live and work together in a spirit of tolerance. I am also proud to say that the Seychelles of today with a population of 70,000 people is a unique melting pot of many races, cultures and religion where

people live and work in peace and harmony.

In short, the success story of Seychelles is the recognition and contribution that the endemic population, its custom, lifestyles make to the tourism experience and accepting that the population must have an equitable share in the economic benefit.

20.0 But our mammoth task is far from over for we have to continue working closely

with other governments, NGOS, environmentalists, the local community to ensure that what has blossomed continues to bear fruit and ensure that we reap the rewards for the benefit of the visitors and local residents. As you have no doubt appreciated Seychelles is Indeed an eco-tourism destination and she intends building on that reputation in the environmentally friendly world of tomorrow, Hence the country has already unfolded the Gold Card concept, which is the lynchpin in a millennium strategy, Since the Gold Card will be Seychelles trademark in the third millennium please spare me a few minutes as I delve on this new and innovative concept.


As outlined before, this new Millennium presents us with an opportunity to retrace some of our steps, correct mistakes where we have made them, and build upon our success in becoming the most unspoiled group of islands in the world hence the Gold Card concept - a new millennium strategy.

22.0 The rational behind the gold card is of course the growing demand to 'protect and

enhance" the global environment coupled with the Seychelles Government's strong commitment to keep the islands in a pristine state at the expense of random developments.

Its objectives therefore are:

(a) To provide the necessary funds to protect and enhance the pristine'

environment for all the Seychelles islands which remain the Last Sanctuary.

(b) To act as a vehicle to sensitise all visitors about the merits of conserving nature for future generations.

(c) To be a role model to all nations on earth that are serious in preserving their

unique natural features.

(d) To attract up-market nature lovers (visitors) to Seychelles by developing consumer brand loyalty through a circle of "Friends of Seychelles".


Like some Islands in the Caribbean, Seychelles is labelled as a six star destination. As such the Seychelles Government wants to develop the products and services to match its natural beauty by introducing more luxury and exclusive hotels, and has called upon stakeholders to seriously upgrade most of the larger hotels that were built during the 1970s on the island of Mahe.

24.0 In introducing the Gold Card as a mechanism to repositioning it as a niche market

eco-tourism destination, our quest is to show to the world that preservation of the environment and the socio economic advancement of a country are compatible, indeed mutually beneficial.

Consequently a selective environment-conscious tourism is indeed in Seychelles' interest. As the President of the Republic of Seychelles, His Excellency France Albert René said in September last year; "We owe it to the Seychellois people and to our children to take every step necessary to tell the world that we intend to maintain this last paradise, even if it means that in doing so, we may stand out from the crowd..."

25.0 In short it Could safely be argued to state that our determination to develop a

high yield, selective and quality tourism in Seychelles is not only critical, but above all necessary and vital, if we are to progress and succeed in this highly competitive global arena.

26.0 Ladies and Gentlemen, In concluding his most comprehensive Association Report entitled "Changes and Opportunities", published in Issue Number 4 of the World Travel and Tourism

Development, Mr. Jean Holder, the Secretary General of the Caribbean Tourism Organisation said and I quote:

"The ability of this collection of small states to survive the next millennium depends largely on our ability to achieve effective levels of regional cooperation to give us the critical mass and varied resources needed to compete in the New World order." end of quote...

27.0 Today of course we are here witnessing what could be considered as the

enhancement of a somewhat different but equally important type of co-operation. Simply said it is one, the aim of which is to transcend the perimeters of the Caribbean region, "as a means of promoting collaborative relations with small island States of Africa."

28.0 Of course through our already well established strong partnership is the major

international fora, such as the United Nations, the World Bank, the Commonwealth and La Francophonie .. just to name a few - we the small island developing states of the world have already managed to acquire deserving attention and due recognition with regard to our unique specificities and Vulnerabilities.

Most importantly thus far and something imperative and necessary for our sustainable development, we have the 1994 Barbados Declaration and Programme of Action firmly established.

29.0 On a regional level our commitment for the further enhancement of such noble principles have and continue to be many, both in size and scope, For example, in July 1 998, the Ministers of the African Small Islands Developing States (SIDS) met in Seychelles and adopted what is now known as the "Mahe Programme of Action,' through it, we will of course be participating fully in the upcoming meeting of prospective donors and representatives of SIDS, since it was recognized that we do need to play a.key role in mobilizing necessary financial resources, for the implementation of the plan.


I am sure you will all agree with me that all of the above mentioned achievements with regards to SIDS would not have been possible without the vision, the expertise and the valuable assistance of the Commonwealth, an Organisation to which most it not all of us present here today belong and one which has been with us from the very beginning.

31.0 Consequently, the idea that a Forum or Caucus of Commonwealth Ministers of

Tourism might be an extremely useful mechanism to promote exchange of experiences and expertise particularly in terms of policy and environmental matters" is one, which deserves our due attention and consideration.

As such, I am very happy to announce that the feedback received thus far, is most encouraging indeed and I have no doubt that the unconditional support of all of us present here today, will be forthcoming, sooner than later!


In conclusion, let me state that the need for us the African SIDS and the Caribbean SIDS, and Members of the Commonwealth to further develop a higher level of synergy, for the accomplishment of a common goal, is both imperative and necessary.

33.0 Today therefore, I wish to take this opportunity, to assure our Caribbean Tourism

Colleagues that Seychelles and the SIDS of Africa, look forward to the further enhancement of our co-operative endeavours in the tourism and the many other fields.

34.0 It is said that the greatest dream in the world is not so much where we are but in which direction we are moving for the future of the dream is riot in the dream itself but in the dreamer. Today I feel most privileged and honoured to state that we are indeed moving in the right direction,

Thank you very much for your attention.

APPENDIX B

ADDRESS BY HON. PHILIP J. PIERRE TO THE CARICAD/CAMADA POLICY FORUM

CARIBBEES HOTEL'FEBRUARY 8, 1999 MANAGING THE TOURISM INDUSTRY -

THE PUBLIC PRIVATE INTERFACE Hon. Simone de Cormarmond - Minister of Tourism and Civil Aviation of the Republic of Seychelles; Your Excellency Marcel Marengo - Ambassador of the Seychelles to the Americas; Dr. P. 1. Gomes - Executive Director Caricad; Ms. Susan Branker - Director Caribbean Management Development Association; Hon. Menissa Rambally - Parliamentary Secretary in the Ministry of Tourism, Civil Aviation & International Financial Services Let me first welcome our esteemed visitors to St. Lucia to this timely regional policy forum of the tourism industry. A special welcome to the Minister from the Republic of Seychelles and the visiting delegations from our sister Caribbean islands. To our talented and dedicated regional technocrat Dr. P. 1. Gomes welcome to St. Lucia. The presence of the Honourable Minister from the Seychelles is significant since our two countries have a great deal in oommon. We both speak creole and share similar French-creole ancestry. We also share common international interest as members of the African Pacific and Caribbean States (A.C.P.) and membership of S.I.D.S. (Small Island Developing States). This policy forum sponsored by CARICAD and CaMDA is another illustration of the fulfilment of the mandate of upgrading the capabilities and capacity build.ing of regional states for the implementation of public policy. The government of St. Lucia endorses the increased participation of the social partners and N.G.0's in the management of our scarce resources and recognise and accept the notion of collaborative or co-management.

To my mind this conference is timely since it will deal with an emotional and sensitive topic of tourism. Tourism is an economic and strategic export based activity dealing with people. The question is how do policy makers influence the direction of the industry in a balanced and sustainable way to accrue economic benefits to all stakeholders. The Government of St. Lucia is of the view that the tourism industry must be organised in a manner that will cause all involved including the small rural communities to share in the economic benefits that are obvious when we examine the following statistical information. Tourism is assuming the leading economic role in St. Lucia. It grew by 5% in 1997 and accounted for 72% of total exports of goods and services. It contributed 12.9% of Gross Domestic Product and is the leading foreign exchange earner in the economy. In 1997 occupancy levels were the highest since 1992. These were reflected in practical terms by 600,000 visitors comprising 240,000 stayovers and 360,000 cruise passengers. These numbers on their own do not measure sustainability. Increased visitor arrivals, although beneficial do not always achieve the targets of local value-added equitable distribution and sustainable use of natural resources. Michael P. Wells in a World Bank paper on Economic Perspectives on Nature Tourism, Conservation and Development notes that "most of the economic.benefits linked to tourist expenditures have so far been captured by commercial tourism operators in the richest countries (where most tourists originate) and in the larger cities of the host countries". The question is: must public policy be slanted so as to achieve the desirable objectives but altering the specific direction that the free enterprise system dictates? The answer lies in the formulation of public policy that will allow the free enterprise system with its watchwords of competence, dedication, opportunity and access to resources to flourish but at the same time ensuring the local rural communities realise benefits from tourism. Nature tourism is an area where public policy can be used to support social and economic development in rural communities where these natural sites are located. To ensure that these natural resources are used in a sustainable and economically beneficial manner the St. Lucia Government initiated in 1998 with assistance from the European Union a Nature Heritage Tourism Programme which is a community based tourism strategy aimed at achieving the following:-

* participation in and ownership of the industry;

* Enforcement of St. Lucia's image in the market place as a if green" destination with a unique blend of attractions and type of accommodations;

* Development of the island's tourism product thus enriching the visitor experience through the provision of unique, authentic and natural/cultural visitor activities;

* Contributing to the sustainable management of the island's natural and cultural resources.

Establish nature/heritage tourism as a viable and sustainable component of St. Lucia's tourism product by facilitating a process of education, capacity building, product development, marketing, credit access and the promotion of environmental and cultural protection for the benefit of host communities and St. Lucians. The Programme's comprehensive range of services include:- * Public education about the positive linkages between nature/heritage tourism and

environmental conservation; * Training to develop capacities of community groups/individuals for participation in the

nature/heritage tourism sector; * Technical assistance to institutions to strengthen their ability to manage the natural

and cultural resources within their communities; * Provision of technical assistance and provision of grant funding at the community level

for nature/heritage tourism projects. * Research and study aimed at developing policy guidelines to ensure environmental and

product sustainability and provision of marketing support for suitable nature heritage sites especially through the use of new emerging and user friendly technology e.g. Internet Sales.

This intervention by government is a calculated and deliberate policy to achieve economic gains for a particular sector in the economy i.e. rural communities. It is also an attempt by government to solve the problem of vertical integration in the industry by a small group of operators creating several linkages at the expense of rural communities and other sectors and resulting in heightened tensions and negative perceptions that the lucrative economic gains of tourism do not benefit the "small man The Nature Heritage Tourism Programme is not intended to conflict with national tourism promoters but augment and compliment existing policy and programmes. In this regard a Memorandum of Understanding (M.O.U.) is being implemented with the St. Lucia Tourist Board to provide niche marketing support for the programme. That partnership though in an embryonic stage will increase St. Lucia's product reach and help promote St. Lucia to the potentially large number of eco-tourists.

The tourism industry is relatively new in the economic history of the region and has been, in the past, mainly private sector driven. This means that laws and regulations are archaic, irrelevant or nonexistent. The absence of clear governmental legislation is the cause of conflicts among the many stakeholders seeking economic benefits. In the marine sector for example, all the laws and regulations pertaining to yachting, day boats, diving etc. are derived from the Fisheries Act and other such pieces of legislation. Similar examples are the ground transportation sector where existing laws and policies are drafted principally for the purpose of regulation of commuter traffic. They do not take into consideration the special peculiar needs of the modern service industry catering to sophisticated international travellers. Another vexing issue is the provision of services e.g. tours and day trips to visitors. In St. Lucia there is growing disenchantment with the provision of these services. Small local operators demand as a matter of right a share of that market and the level of remuneration for work done. This view is shared by many people including media practitioners and talk show hosts who leave no stone unturned in sighting examples of what they deem unfair practices. The question for policy makers is how in a free enterprise system public policy makers influence that direction especially without an adequate regulatory framework or undue interference in the private sector. The Ministry of Tourism recognises the.important role of the private sector and advocates a fair return on investment. We intend to adopt the appropriate policy through consultation with all involved. In this regard the process of consultation has begun. All relevant stakeholders i.e. service suppliers, taxi sector, day boat charters, entertainers, tours, site and attraction operators on the one hand and cruise agents, ground handlers and hoteliers will be contacted so that an appropriate policy and regulatory framework could be adopted. The results so far have been encouraging and the local music industry is already responding. The use of public financial resources for the funding directly or indirectly of tourism projects sometimes raises issues that have direct impact on the managing of the tourism industry. The question of airlift for example and the American Airlines issue in particular raises the fundamental question of whether support should be given to an international airline so that the tourism industry may benefit. In that instance public policy decided not to provide the support but instead seek alternatives. These issues will continue to arise over time and the public policy makers hope that organisations like CARICAD can provide the necessary support by conducting the required

research to assist decision making. That support, free from direct political interference will allow policy makers a range of preferences enabling them to make informed choices. This policy forum also demonstrates what can be achieved by true collaboration and partnership. I understand the Commonwealth Secretariat is supporting this meeting. This is beneficial considering the several issues facing the A.C.P. in the post LOME era. New modes of technical co-operation need to be examined in relation to such areas as sustainable tourism development and the islands of the Seychelles can serve as useful partners in that movement. I support and endorse your mission Madame Minister to explore the idea of establishing a Forum or Caucus of Commonwealth Ministers of Tourism. St. Lucia will be following these developments with interest. St. Lucia is honoured and pleased to host this policy forum. We as a small developing island are grappling with the problem of balanced sustainable development of the tourism industry. As we seek to forge a path in this highly competitive industry we jealously guard our patrimony and environmental sustainability but will embrace any opportunity to ensure that the tourism industry provides economic liberation and benefits for as many people as possible. We thank CARICAD for choosing our island and hope that these deliberations will provide useful, practical and workable solutions to our problems. I am sure that based on the experts slated to deliver papers your discussions will be fruitful. I have confidence in our regional institutions and the work of our technocrats. I wish you well and it is with a spirit of hope and expectation that I formally declare this forum open.

I thank you.

APPENDIX C

Remarks on behalf of CARICAD By P I Gomes

May I, Mr. Chairman, begin by thanking the Minister of Tourism, Civil Aviation and International Financial Services for so readily responding with enthusiasm, energy and efficiency to joining with us, CaMDA & CARICAD in hosting this Policy Forum. As much as Minister Pierre is in “Master Control” of Tourism, as we were told on Saturday night by Hon. Menissa Rambally, it is the admirable team work in the Ministry and its strategic allies, such as the finest of organisers in the irreplaceably Mr. Felix Finisterre of the St.Lucia Heritage Programme, and the National Trust executives that have made it possible for the event to be now a reality! We often hear it said – "Nothing more powerful than an idea whose time has come". We strongly believe that the idea of forging, building and deepening partnerships across the public and private sector, with tangible involvement of all kinds of organs of civil society, is not only opportune and necessary to deal with the complex issues of development – it is an imperative! Hence the idea of Policy Forum, at least as an annual activity between CARICAD and CaMDA in partnership with others on a theme of vital interest to the future of our societies, the quality of life of all our citizens, in an equitable and sustainable manner. Certainly, tourism as a topic is highly commendable. The range of experience and expertise on which we have been able to draw, will certainly ensure a significant contribution over the next two days. As indicated in the programme – the topics to be addressed will invite honest and open discussion without lamenting and complaining about faults and failings – which can be done so easily – but often to little avail. We are concerned to focus on finding solutions, finding the basis for joint action and providing insights and awareness on which to overcome the structural problems. Too much is at stake to be involved in sterile debate but much needs to be done to build on and deepen more creative innovative measures – on policy, management, collaboration between social partners – an enhanced interface of government, business and organs of civil society – for the benefits of tourism to be equitable and sustainable. The issues to be addressed must be seen in the larger context of sustainable development for small island states – hence a very special feature of this Forum is the person of a most powerful witness and distinguished advocate of many causes facing in particular African SIDS!

APPENDIX D

CARIBBEAN CENTRE FOR DEVELOPMENT ADMINISTRATION (CARICAD)

CARIBBEAN MANAGEMENT DEVELOPMENT ASSOCIATION

(CaMDA)

in association with

THE ST. LUCIA NATIONAL TRUST And

SAINT LUCIA HERITAGE TOURISM PROGRAMME

Present

Third Annual Caribbean Policy Forum Castries, St. Lucia

February 8th - 9th, 1999

Theme: Managing The Tourism Sector: The Public/Private Interface

------------------------------------------------------------------------------------------------------ Day One Monday, February 8 8:30 - 9:00 am Registration 9:00 - 10:00am Opening Ceremony 10:00 - 10:30 COFFEE 10:30 - 12:00 noon Panel Discussion: Ownership and Policy Issues for

Transformation of Caribbean Tourism into the 21st Century

Chairperson Mr. Luther Miller, Caribbean Tourism

Association, Barbados

Discussants Mr. Rodinald Soomer, Executive Vice President, St. Lucia Hotel and Tourism Association

Mr. Stanley Baird, Tobago House of Assembly 12.:30 - 1:30 pm LUNCH 1:30 - 3:00 pm Panel Discussion Effective Marketing and Promotion Strategies Chairperson: Mr. Hilary Modeste, General Manager, St. Lucia

Tourist Board Discussants: Ms. Jane Belfon, Management Consultant,

Grenada Tourism Master Plan Ms. Collette McDermot, Executive Director,

Tourism Association of Guyana Dr. Carla Noel, Tourism and Industrial

Development Corporation (TIDCO), Trinidad and Tobago

3:00 - 3:30 pm COFFEE 3:30 - 3:50 pm Concurrent Roundtable Discussions: Intersectoral Linkages for Transformation of the Tourism Sector Facilitator: Dr. Basil Springer, Consultant, Caribbean

Development Bank Day Two Tuesday, February 9 9:00 - 10:00 am Panel Discussion Enhancing the Investment Potential of the

Tourism Sector Chairperson: Mr. Marius St. Rose, Special Advisor, National

Commercial Bank, St. Lucia

Discussants: Mr. Luther Miller, Caribbean Tourism Organisation, Barbados

Dr. Barrington Brown, Management Consultant,

St. Kitts and Nevis Mr. Cecil Miller, Caribbean Development Bank 10:00 - 10:30 am COFFEE 10:30 - 12:00 noon Concurrent Workshops:

(i) Tourism and the Environment Facilitators: Natural Resources Management Unit of the OECS

(ii) Collaborative Management for Sustainable Tourism Development

Facilitators: St. Lucia National Trust and the St. Lucia

Heritage Tourism Programme (iii) Human Resource Development for Tomorrow's Tourism

Facilitators: Ms. Agnes Francis, Management Consultant, St.

Lucia

Mr. Roosevelt Finlayson, President, MDR Quality Systems, Bahamas

12:00 - 1:30 pm LUNCH

1:30 - 3:00pm Reports from Workshops: Policy and Management Recommendations Chairpersons: Mr. Cletus Springer, St. Lucia National Trust Ms. Susan Branker, Director, CaMDA

Closing Remarks Hon Menissa Rambally, Parliamentary Secretary - Ministry of Tourism, Civil Aviation and International Financial Services

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