OPPORTUNITIES FOR TOURISM IN A GREEN ECONOMY

The recent economic crisis situation could potentially be utilized as an opportunity to introduce green investment in the economies. As governments devise a new international and national financial architecture to prevent future crises and find ways to jump start their economies, it is important to consider whether the post recession economies should still promote ‘brown’ economies with traditional  dependence on low energy efficiency, non sustainable energy resources, high material use, unsustainable use of ecological resources and a high degree of climate risk.

There is opportunity in the following trends and developments to provide a particularly promising space for greening tourism: 

(1) sizing and growth of the sector

(2) changing consumer patterns

(3) potential for addressing local development and poverty reduction.

2.2.1 Sizing and Growth of Sector

The tourism economy represents 5% of world GDP, while it contributes to about 8% of total employment, see table 8. International tourism ranks fourth (after fuels, chemicals and automotive products) in global exports, with an industry value of US$ 1 trillion a year, accounting for 30% of the world’s exports of commercial services or 7.9% of total exports (UNWTO 2010a; World Bank 2010). Domestic tourism represents on average 62% of total tourism consumption worldwide (UNWTO 2010c). With growing developing country participation, tourism has become a major contributor to their growth. In over 150 countries, tourism is one of five top export earners, and in 60 it is the number one export. It is the main source of foreign exchange for one third of developing countries and one half of LDCs (UNCTAD 2010).

2.2.2 Changing Consumer Patterns

Tourist choices are increasingly influenced by sustainability considerations. For instance, in 2007 TripAdvisor surveyed travellers worldwide and 38% said that environmentally friendly tourism is a consideration when travelling, 38% had stayed at an environmentally-friendly hotel and 9% specifically seek out such hotels, while 34% are willing to pay more to stay in environmentally friendly hotels (Pollock 2007). CEDS and TIES (2005) found that a majority of international tourists are interested in the social, cultural and environmental issues relevant to the destinations they visit and are interested in patronizing hotels that are committed to protecting the local environment, and increasingly view local environmental and social stewardship as a responsibility of the businesses they support. Choice experiments conducted in Uganda conclude that biodiversity attributes increase the willingness to visit tourism attractions, independently of other factors (Naidoo and Adamowickz 2005). Research also indicates that consumers are concerned about the local environments of their travel destinations and are willing to spend more on their holidays if they are assured that workers in the sector are guaranteed ethical labour conditions in the places they are visiting (ILO 2010b). On the other hand, Rheem (2009) argues that under a third of United States of America travellers indicate a willingness to pay some sort of premium for “green” travel with cost premium the most commonly identified barrier (67%).

2.2.3 Potential for Poverty Reduction and Social and Local Development

• Poverty reduction

Tourism’s ability to create jobs, stimulate economic growth, provide foreign exchange, improve infrastructure, and promote environmental conservation makes it an attractive vehicle for poverty alleviation and local development. Through its poverty reducing potential and ability to protect and strengthen environmental assets, the tourism sector has the potential to make a substantial contribution to the achievement of the United Nations’ Millennium Development Goals (UNWTO 2007a).

Tourism to poor countries is also growing faster now than it ever has before. Between 1990 and 2005, tourist arrivals to developing countries more than doubled to 326 million (UNWTO, 2006). Of the 924 million international travellers in 2008, 75% originated their holiday in the developed world, and 40% included a developing country in their itinerary.

Making tourism more sustainable can create stronger linkages with the local economy, increasing local development potential. Of particular and recognized importance (Hall and Coles 2008) are economic links with local communities, including purchasing directly from local businesses, recruiting and training local unskilled and semi-skilled staff, entering into neighbourhood partnerships to make thelocal social environment a better place to live, work and visit for all; as well as the ability to improve the local natural environment within its areas of direct and indirect influence (Ashley and others 2006).

The links between tourism and poverty alleviation are particularly relevant to Sub Saharan Africa, the poorest region in the world. The poverty rate in Sub Saharan Africa is just under 50% of the population, or 300 million people (with the threshold for extreme poverty is now US$ 1.25 a day) (UN 2008). 

The following examples illustrate the relationship between tourism and poverty alleviation in the Sub Saharan context:

• Cape Verde has transformed its economy from one of the world’s least developed countries to one of the top five best-managed economies in Africa. Tourism has been identified as a key driver of growth and poverty alleviation. Tourist arrivals have increased from 67,000 in 2000 to almost 285,000 in 2008 (Twining-Ward 2010). Despite its reliance on international hotels and imported food, most hotel employees are local and paid comparatively high average wages: € 289/month. The total non-management hotel worker income in Cape Verde is therefore about € 29.5 million – a significant and growing direct and indirect economic effect, as the money trickles down through the economy (Mitchell 2009).

• Rwanda, one of the poorest countries in the world, has also seen how tourism can be an agent of change. In 2008, gross domestic product per capita was US$ 464 in 2008 (IFAD 2010). Due to its large population of mountain gorillas, however, tourism is now contributing to improved incomes in Rwanda. In 2008, about 17,000 people visited the Volcanoes National Park (VNP) to see the gorillas, a large increase from the late 1980s and an impressive recovery from only 417 tourists in 1999 after the reopening of the park. In a gorilla naming ceremony called “Kwita Izina”, mountain gorilla babies born in the previous 12 months are named. The ceremony has been held each year since its launch in 2005 and attracts international celebrities and conservationists. Rwanda’s poor are beginning to feel the benefits of the increase in tourism. 5% of the park revenues are channelled into community projects such as education, water and sanitation, and food security in villages around the park. Employment opportunities are also offered to community members for guides, trackers, and anti-poachers. According to a recent World Bank study, nearly US$ 428,248 has been directly invested in community projects and used to empower communities. Key social benefits include the building of ten schools, 32 water tanks, ten community associations, and 3,000 households receiving bed night fees (Nielsen and Spenceley 2010).

• Kenya is home to over 359 different species of animals and 500 species of birds. Indigenous tribal groups also attract tourists from all over the world. Kenya also has a high level of urban and rural poverty. 50% of the population earn less than US$ 1.25 per day. Kenya’s tourism sector generated over KSh 56.2 billion (approximately US$ 760 million) in tourism receipts, and created over 498,000 formal and informal jobs in 2006 (Global Development Solutions, LLC 2008). Sun n Sand Beach Resort (SNSBR) is located in Kikambala, Kilifi District, one of the poorest districts in Kenya. Part of the mission statement of the resort is to look after the staff and the community of more than 20,000 people who live in the vicinity of the resort. SNSBR achieves this goal through tourist donations to the Sun n Sand Trust, resort donations, and by sourcing as much as possible from the local community. The resort built the Sun n Sand Community Center at its own cost. The community centre houses a subsidized primary health care centre, which sees 40,000 patients a year; a nursery school for 750 students; a place of worship; a free water facility supplying 5,000 l of clean water daily.

Further examples can be found in Jamaica. In 1996 the Farmers Programme began with ten farmers supplying two hotels. By 2004, there were 80 farmers supplying hotels across the island. Key elements are:

• Chefs and management teams visit farms and attend workshop days

• Farmers visit hotels to see how their products are used and why Sandals specifications are important

• A farmer extension officer assists farmers with production, as do other organizations such as the Rural Agricultural Development Authority