Ministry of Tourism, St. Lucia October NATIONAL TOURISM POLICY (final draft)
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1 Ministry of Tourism, St. Lucia October 2003 NATIONAL TOURISM POLICY (final draft)
2 TABLE OF CONTENT Page 1.0 Background Analysis of Global Trends Analysis of the Domestic Situation Policy Framework The Vision Guiding Principles Overarching Objectives Policy Elements Conclusion 20 2
3 1.0 BACKGROUND Saint Lucia s Tourism industry is confronted by many serious challenges, as well as opportunities and threats. In particular, the broader institutional and policy framework within the sector has been found deficient in terms of vision, coverage, resource allocation, flexibility and internal consistency. The Ministry of Tourism, the Saint Lucia Tourist Board (SLTB) and the Saint Lucia Hotel and Tourism Association (SLHTA), with initial financial support from the Office of Private Sector Relations (OPSR), have in response embarked on an initiative geared towards formulation of a comprehensive policy to guide future growth and sustainable development of St. Lucia s tourism industry. The formulation of such a Policy has become an absolute imperative, in the light of rapidly changing circumstances within the global tourism industry and the global economy in general. Saint Lucia could not respond to the many current and future challenges confronting the industry without a clear assessment of its strengths and weaknesses and without a firm consensus among stakeholders, on the strategies that must be employed to create and deliver a competitive product. This Policy document was fashioned through a consultative and collaborative process that included a High Level Policy Forum involving the political directorate and the leadership of all key public and private sector agencies and non-governmental organisations, with a vested interest in the tourism industry. The Forum assisted in identifying the key issues that affect the tourism sector as well as recommendations on ways in which these issues could be addressed. These issues were later reviewed at a Strategic Planning Workshop attended by public and private sector representatives. The Workshop produced the elements of a Vision Statement as well as Strategic Objectives for the proposed National Tourism Policy. The Tourism Advisory Council and then the Cabinet Committee on Tourism reviewed the final draft policy. 1.1 Analysis of Global Trends Over the past decade, the global travel and tourism industry has consolidated its role as a key generator of income, employment and foreign exchange and as a significant component of local, regional and global economies. In 2001, international tourist arrivals amounted to 693 million, a reduction of 4 million (-0.6% over 2000). International tourism receipts reached US$462 billion (-2.6% compared to 2000) 1. These figures clearly indicate the significance of tourism at the level of the world economy. The 1 Figures supplied by the World Tourism Organisation - June
4 industry remains the world s largest and leading employer and the single biggest contributor to GDP at the global, regional and national levels respectively. At the regional economic level, the influence of the sector is even more striking. In 2001, arrivals to the Caribbean amounted to 16.9 million in 2001 (-3.0% over 2000), while receipts amounted to US$16.9 billion. In 2001, the Caribbean boasted a 3.7% share of the international market. In 2002, the sector is expected to account for 18.7% of employment in the Caribbean, or one in every six jobs. 1.2 Analyses of the Domestic Situation Tourism s growing and pivotal contribution to the economic and socio-cultural development of the island is reflected in the fact that in 2001, the industry accounted for nearly 60% of the total foreign exchange earnings, and directly generated 10% of Government s revenue. Further, the industry employs approximately 21% of the workforce and generates 12.7% of the island s Gross Domestic Product (GDP). While the rate of growth of the industry had exceeded global trends, visitor expenditure had declined by about EC$20 million, from its peak in Though relatively young, Saint Lucia s tourism product has exhibited steady growth and is becoming increasingly diversified, with a variety of offerings in sub-sectors such as accommodation (resorts, self catering apartments, luxury villas and guest houses), restaurants, cruise, yachting, diving, sites and attractions and recreational facilities (including golf courses and cricket facilities). Many of the accommodation establishments are small, with the majority of establishments consisting of less than 50 rooms. Many of the properties are generally characterized by a low level of innovation. This points to the need for adequate market intelligence to identify industry trends and the motivations and desires of existing and prospective customers, and the use of this information in designing an accommodation product that caters better to the needs of the marketplace. Consumer surveys conducted by the Tourist Board point to the country s natural and cultural base as one of its most important strengths and attractions. These features are complemented by a solid infrastructure base that includes modern roads, telecommunications, power, water, waste management and airport facilities and air links to major cities. In 2001, overall visitor arrivals increased by 3.2% over 2000, to 749,339, with the major growth impetus coming from cruise arrivals, which increased by 11.1% over There is also some degree of spread in the distribution of business from source markets, with Europeans, the British, Americans, French and CARICOM visitors, Canadians and Germans all comprising a significant share of arrivals. Diversity is also reflected in the purpose of visits, with holidays, honeymoon, business and boating being cited among the major reasons. 4
5 However, these strengths are counterbalanced by several concerns and weaknesses. These include the loss of market share in Canada and Germany to competitors such as Cuba, the Dominican Republic and Mexico. Research conducted by the Saint Lucia Tourist Board over the past five years points to a growing perception in the travel trade, of Saint Lucia as being primarily an all-inclusive destination. Approximately 60% of hotel rooms are in all-inclusive hotels. However, the evidence indicates that all-inclusive properties consistently outperform conventional hotels, in terms of all year occupancy levels. Still, there is continuing concern, especially among ancillary service providers that all-inclusives limit the opportunities for local participation in the benefits of tourism. 2.0 POLICY FRAMEWORK The Policy is intended to facilitate coordinated action by the public and private sectors within a framework for sustainable tourism planning and development. This is predicated on the establishment and nurturing of a permanent public/private partnership. The Policy is to be guided by the imperial forecasting and responsible management of the impact of the industry on other branches of the local economy, society, environment and culture. It is ultimately aimed at ensuring that the benefits generated by tourism are as widely distributed as possible throughout the nation and among local communities. The successful implementation of the Tourism Policy will require the sustained involvement of the Tourism Partners. Both the Government and the Private Sector have a role to play in the implementation of the policy elements outlined in this document. 2.1 The Vision Our Vision is that Saint Lucia be recognised internationally as having a unique, competitive and high quality product that meets the expectations of visitors, that will be sustained by a well-trained and customer-focused workforce and where the benefits generated by tourism are widely shared. 2.2 Guiding Principles In pursuing the vision, Saint Lucia s Tourism Partners agree to observe the following principles: 5
6 1) Saint Lucia will build on its existing strengths to develop and maintain a high-quality tourism product that meets the expectations of visitors, by promoting a clean, healthy and safe environment, complemented by friendly and efficient services. 2) Opportunities for linkages between tourism and in particular agriculture, manufacturing and other services must be fully exploited. 3) In the planning and development of Saint Lucia s tourism, the sustainability and the conservation of natural resources must be ensured. 4) Tourism has considerable potential to act as the main engine of Saint Lucia s social and economic development and should be treated as a strategic development priority. 5) While there is a continuing need for foreign investment, skills and technology transfer to expand and modernize tourism infrastructure, the industry must allow for the fullest participation in its planning and development by all segments of the Saint Lucian society, and its benefits must be distributed as widely as possible. 6) Tourism development will be private-sector driven with the role of Government concentrated on creating an attractive and profitable investment climate, and marketfriendly mechanisms to generate opportunities for local participation. Long-term sustainability will come from the development of a local entrepreneurial class. 7) The right of the populace to enjoyment of the scenic and other natural resources, including the island s beaches, must be preserved in the development of the sector. 2.3 Objectives Consistent with the guiding principles the broad objectives of this Policy are as follows: 1) To establish tourism as a strategic economic development priority; 2) To expand local participation directly or indirectly in the tourism sector; 3) To continuously improve the quality of the tourism experience and product; 4) To stimulate and facilitate additional investment in the upgrading, expansion and diversification of the tourism infrastructure and production base; 5) To strengthen the backward and forward linkages between tourism and Agriculture and other sectors of the economy; 6) To project a positive and unique identity of Saint Lucia in tourism generating markets 6
7 7) To improve the public s perception of and attitude towards tourism; 8) To participate actively in and take full advantage of regional and international initiatives. 3.0 POLICY ELEMENTS In pursuing the objectives of this policy, the overall strategy will be to develop Saint Lucia as a distinctive destination, fully capitalizing on its natural resources (environment, history, culture and people) and its favourable location, as well as regional initiatives to produce new, upgraded and diversified products, services and experiences that will exceed the expectations of the new and more discerning traveler. Objective 1: To establish tourism as a strategic economic development priority Saint Lucia s Tourism Partners agree that Tourism is the only industry in which the country enjoys significant competitive advantages. The industry s inherent ability of bringing the market to the product provides an expanded population base and market with increased spending power, which can positively impact on demand for goods and services throughout the entire economy. This makes tourism the logical sector of choice for driving overall economic growth and sustainable human development. In light of this, the Government commits to use its best endeavours to ensure that tourism receives priority consideration in decisions regarding the allocation of financial, physical and technical resources. While agreeing to adopt a Partnership approach to the development of tourism, the Partners accept that Government is best placed to assume the leadership role in making tourism a strategic priority. In accepting this role, the focus of Government s attention will be on the design and implementation of policies and programmes that facilitate the growth of tourism and the widest possible spread of its benefits. This will include action to eliminate barriers to the growth of tourism, especially those that deter local and foreign investment. Further, the Partners will create the establishment of an appropriate institutional framework with sustained public and private sector participation that: (1) has the flexibility to manage a dynamic and internationally-competitive industry; and (2) utilizes all available resources within a strategic management setting; Government will retain its Cabinet Committee on Tourism comprising Ministers with responsibility for Tourism, Agriculture, Planning, Communications, Works and Transport, Social Transformation and the Attorney General. Support for this Committee will be 7
8 provided through the establishment of an Inter-Ministerial Tourism Technical Committee chaired by the Ministry of Tourism and involving tourism-related departments and public enterprises. The responsibilities of this Technical Committee will include: a) Promoting awareness of the country s tourism policy amongst decision-makers and the general public through schools and the mass media; b) Instigating studies and activities to promote recognition of the contribution of tourism to the economy and the sustainable future development of the country; c) Improving the arrival experience for tourists at national borders, including better information and signage, longer operating hours and more friendly and efficient services (eg, visa requirements and issuing procedures and seaports; d) Provision of improved infrastructure for tourism services and development on the basis of integrated area plans, whilst minimizing negative and enhancing positive environmental impacts; e) Supporting and implementing the necessary legislation and actions for conservation, protection and sustainable use of the country s natural environmental assets; f) Taking action to limit the spread of crime; g) Facilitating donor support for tourism-related development programmes; h) Ensuring full government support for regional tourism initiatives Objective 2: To continuously improve the quality of the tourism experience The Tourism Partners commit to improve the quality of the product at all levels so as to attain higher levels of customer satisfaction. This will include actions to: (1) improve standards, procedures and processes; (2) strengthening the human resource base; (3) protect the health and safety of visitors and (d) protect the environment. Improving standards, procedures and processes This will be achieved through: a) Introducing and promoting total quality management systems in the industry; b) Working with the Bureau of Standards, the St. Lucia Hotel & Tourism Association and other stakeholders to introduce and monitor appropriate standards, guidelines and classification systems for the tourism sector to include accommodation, tourist transportation, tours and attractions, water-craft and vending activities; c) Reviewing the licensing and other regulations that impact the industry and making recommendations for improvements to both the requirement and the monitoring process; d) Upgrading the quality of the tourism infrastructure and related services, including services at hospitals, banks and ports; Draft Strengthening the human resource base 8
9 Further, the Partners commit to jointly implementing actions aimed at improving and sustaining the human resource base of the tourism industry, including: a) Undertaking training needs assessments to: (1) determine the numbers and types of workers in travel and tourism related industries that require training, taking into consideration the need to upgrade service levels throughout the sector to international standards; (2) assess the needs of existing institutions both in terms of equipment and manpower; (3) inform proposals for meeting the identified needs, including the need for in-service training, basic training for new entrants and courses for personnel such as police officers, customs, immigration and port security officers; b) Strengthening educational programmes for the teaching of foreign languages; c) Allocating increased resources in both the public and private sectors, towards continuous upgrading of the skills of persons employed in the tourism industry, with an emphasis on internationally - certified training programmes; d) The establishment of a Hospitality Training School with genuine guests, as in Bermuda and Barbados, to operate as the focal point for the delivery of the requisite training Programme; e) Streamline the work permit requirements, if any, by tying permits to positions rather than persons; f) Ensuring that existing and new labour legislation promote well-balanced employer/employee relations; g) Setting and pursuing realistic targets and undertaking appropriate career guidance and training programmes aimed at fully integrating St. Lucians into top management positions in the industry; Ensuring Visitor Safety The Tourism Partners are cognisant of the global trend towards stricter regulation of the tourism industry and fully accept the importance of maintaining an efficient and effective security management system as an integral part of Saint Lucia s tourism product. The Partners are mindful of the fact that the perception of crime could damage a destination just as profoundly as actual crime. Accordingly, the Partners commit to do everything possible to assure potential visitors, tour operators and travel agents that Saint Lucia is a safe place. The Tourism Sector will work closely with the Justice sector on programmes to ensure visitor safety. Protecting Visitor Health 9
10 The Tourism Partners pledge to continue to play their respective roles in protecting the health of visitors and workers in the industry. Particular attention will be given to the following: a) Ensuring that accommodation facilities, cruise ships and yachts are clean and safe and meet international industry standards; b) Establishing food safety standards that apply to all types of food outlets from the street vendor to luxury gourmet restaurant. c) Adoption and regular monitoring of drinking water quality standards; d) Adoption and monitoring of recreational water quality standards; e) Establishment of guidelines and protocols for disaster preparedness and managing mass casualty situations within the tourism industry f) Establishment of an epidemiological surveillance system, including networking of emergency units in hotels with national health facilities. Protecting the Integrity of the Environment The Tourism Partners realise that the sustainability of tourism is inextricably linked to the state of the environment. Accordingly, the Partners commit to play their respective roles in achieving and maintaining a clean and healthy environment and to promote the conservation and sustainable use of the island s natural resources. The partners will work with existing Government agencies in: a) Formulating and implementing policies, standards and laws that will ensure adequate protection of the physical environment and in particular the scenic resources that place Saint Lucia at a competitive advantage as a tourism destination; b) Identifying best practice in tourism development, with a view that can inform the formulation of guidelines and standards for appropriate tourism development as well as criteria for investment incentives; c) Undertaking research into the development and application of models of sustainable preservation, conservation and use of the environment in areas used for tourism; d) Designing and implementing a programme for the control of water pollution, marine pollution, noise pollution, sand mining, drainage and waste management; e) Undertaking research into the carrying capacity of specific sites and the country in general. Objective 3: To stimulate and facilitate new and additional investment in the tourism product. Saint Lucia s Tourism Partners recognise that the development and expansion of tourism will depend on the presence of an environment that actively encourages investment in the 10
11 sector. The Partners also acknowledge that it is important that investment be properly facilitated, because the higher the level of investment, the greater the potential for economic growth. Further, it was critical that a balance is maintained between domestic and foreign investment and between public and private sector investment. Government will continue to create the economic, physical and social conditions within which tourism will be encouraged to grow and fulfill its role as a major contributor to Saint Lucia s overall development. In so doing, Government will seek to achieve a balanced development of the industry in terms of its range, character, location and the categories of vacation product on offer. A variety of land and water-based tourism facilities will continue to be encouraged, including hotels, guest houses, cruise tourism, yacht marinas, high - class specialty restaurants, tourism-related recreational facilities, entertainment facilities including theme parks and gaming facilities, and sports facilities. Within the accommodation sector, the aim will be to establish an additional 2000 hotel rooms by 2008, with emphasis on an appropriate mix of accommodation types. Government will actively seek to increase the social and economic benefits that are derived from cruise tourism. As part of these efforts, Government will seek to establish an appropriate framework within which regular, high-level dialogue and/or negotiations can be held with the owners and operators of cruise lines. Government will continue to support the efforts of SLASPA to promote the establishment of a homeport for cruise ships. New and additional investments in the yachting sub-sector will also be pursued. In addition, the necessary legislative and administrative measures will be introduced to enhance the current product and to ensure the growth of the yachting sub-sector. As far as international trade laws permit, incentives will continue to be used to promote growth in the industry, as will legislative measures, including tax adjustments that impact operating costs, profitability and competitiveness. The NDC in cooperation with the relevant Government ministries and agencies will continue to be charged with spearheading initiatives to attract new domestic and foreign investment. The investment climate will be improved by increasing the transparency and predictability of policies and incentives and by developing a clear and focused investment strategy. Actions in this regard will include: a) Identifying and preserving areas with tourism investment potential; b) Identify potential investors that fit with the development philosophy of the country; c) Aggressively establishing and maintaining contact with these investors. The criteria for providing incentives for investment will include: 11
12 a) The location of investment with incentives for establishments in undeveloped areas possessing real potential for growth; b) The contribution that the investment makes to the tourism product, specifically its cultural, historical and environmental aspects; c) Those investments that provide widespread social, environmental and economic benefits. Government will review the laws and related procedures that impinge on tourism s development. The Tourism partners will work with the Ministry of Physical Development on the matter of land use policies for appropriate tourism development. Objective 4: To strengthen the backward and forward linkages between tourism and other sectors of the economy The Partners accept that tourism s success depends greatly on the quality and strength of the backward and forward linkages between tourism and other sectors of the economy, in particular, agriculture, manufacturing, construction and non-tourism services. The development of effective linkages in these areas offers multiple benefits, including strengthening the tourism sector and the economy in general while reducing the outflow of foreign exchange, and using the presence of the industry to market high-value added goods and services. Opportunities also exist for linkages with the social sector for example in the entertainment industry, sports and other recreational avenues and in health services. Linkages with Agriculture Government will accelerate the implementation of its policies and programmes aimed at diversifying the agriculture sector, so as to increase the quantity, quality and reliability of the primary and processed agricultural products demanded by the tourism industry. Linkages with the Manufacturing Sector Government will continue its programmes aimed at boosting the capacity and competitiveness of local manufacturers that supply the tourism industry. Government will continue to support the capacity-building efforts of the Saint Lucia Manufacturers Association and the Saint Lucia Industrial and Small Business Association, particularly in areas such as market research, product development or adaptation and forging links with producers and consumers within the tourism sector. For their part, the private sector partners, in particular hotel and restaurant managers and cruise line representatives commit to give priority to the use of local food and agriculture and manufactured products. 12
13 Linkages with non-tourism Services The Tourism Partners agree to adopt a systematic approach towards strengthening the base for the development of the services sector in order to achieve and sustain serviceexport quality and cost competitiveness, paying particular attention to St. Lucia s obligations under the GATS. Objective 5: To expand local participation directly or indirectly in the tourism sector The Tourism Partners agree that the sustainability of the tourism industry will not be achieved if Saint Lucians are not involved in a meaningful and sustained way in the planning and development of the industry; and if the economic benefits of tourism do not positively impact the communities to the greatest possible extent. Accordingly, attention will be given to attracting an increased level of local participation in the industry and with a view to expanding its domestic content and effecting a better distribution of its benefits. Local Community Involvement Government will work with local communities to ensure that they undertake responsibility for the management of tourism related community resources. Heritage Tourism Heritage Tourism should serve as a catalyst to ensure that the tourism sector encourages: a) Community participation b) Environmental sustainability c) Equity in social and economic development d) Authentic experiences for the visitor e) Expanding the marketing opportunities for St. Lucia Consequently, Government will provide support for heritage tourism via: a) Marketing support b) Standards development, implementation and maintenance c) Technical support for product development and enhancement d) Incentives for product development and improvement in keeping with relevant national standards 13
14 Tourism and Culture The Tourism partners will collaborate with the Ministry of Culture in the formulation and implementation of a Strategy to develop firm linkages between Culture and Tourism, including measures to maximize the positive impacts of tourism on culture. Objective 6: To project a positive and unique identity of Saint Lucia in tourism generating markets Saint Lucia s Tourism Partners recognise that fierce competition from other destinations is an integral and inevitable part of the tourism industry. They are also conscious of the fact that travel trends and preferences are constantly changing, making it imperative that vacation preferences of tourists from both traditional and non-traditional markets be closely monitored, in order to better anticipate future trends and take appropriate action to keep pace with changes. Accordingly, the Partners commit to promote Saint Lucia s competitiveness and uniqueness as a prime Caribbean holiday destination and to ensure that the country develops and maintains a reputation for good quality and value. More specifically, the aim is to: a) Develop a marketing strategy that moves beyond a tangible claim of beauty, to create an experience - based product; b) Promote Saint Lucia differently according to the requirements of the various markets; c) Develop strong product lines to meet customer needs; d) Take full advantage of regional opportunities and to fully integrate into the international tourism industry. In the interest of cost-effectiveness, the Partners agree to continue work within the framework of the SLHTA/SLTB Joint Marketing Committee to design and implement innovative and cost-effective marketing strategies that will create an image of Saint Lucia as a distinctive, safe and desirable country to visit, both as a destination in its own right and in combination with visits to neighbouring countries. The image will build on Saint Lucia s natural and cultural assets. In addition to diversifying the tourism plant, efforts will be made to improve Saint Lucia s performance in traditional markets such as North America, the United Kingdom and Germany, and to develop new source markets through independent as well as joint action with other Caribbean countries, especially in the development of multi -destination arrangements. The diversification effort will aim to build on the success of the Saint Lucia Jazz Festival in reducing and/or eliminating seasonal fluctuations in arrivals. Increased attention will be given to the exploitation of niche market opportunities in areas such as Sports Tourism, Adventure Tourism, Cultural Tourism and Heritage Tourism. 14
15 Mindful that there is an inherent link between marketing and promotion and reliable air access, the Partners agree to continue to work together to increase the availability of seats into Saint Lucia from the major gateways. In this regard, emphasis will be placed on securing long-term commitments from scheduled airlines to provide non-stop services from these gateways. Where adequate airlift have been secured, the use of charter services out of these gateways will not be financially supported. Government will, through SLASPA, continue to make the necessary improvements to the Sir George Charles Airport and Hewannorra Airport respectively to accommodate regional and international traffic. Every effort will be made to increase the number of weekday landings at Hewannorra Airport. Objective 7: To improve the public s perception of and attitude towards tourism The Tourism Partners are of the view that a successful tourism industry can only be achieved with the support of the entire community. This can only follow from a complete understanding of the industry s benefits and the opportunities that it offers, not only through job creation, but also through direct local investment in the range of spin-off enterprises generated by the industry. Accordingly, the Partners commit to work together to design and implement a nationwide, tourism education and awareness programme aimed at changing negative attitudes towards tourists and increasing the understanding and appreciation of the nature of tourism and of the potential opportunities and benefits that can be derived. This national tourism awareness campaign will be facilitated through the establishment of a Tourism Education Unit within the Ministry of Tourism. Objective 8: To participate actively in and take full advantage of regional and international initiatives The Tourism Partners are mindful of the many limitations arising from the lack of economies of scale in Saint Lucia and other countries in the region. The Partners fully embrace the principles and broad developmental objectives of ongoing efforts at establishing an OECS Economic Union and the CARICOM Single Market and Economy (CSME). Accordingly, the Partners agree to participate fully in the planning of these initiatives and to consciously plan to take full advantage of any benefits that emerge. In particular, the Partners will continue to participate in the work programmes of the OECS Directors of Tourism; the CTO and the Association of Caribbean States (ACS) in so far as these programmes add benefits to the national effort. 15
16 The Partners also agree to work within the relevant regional and international agencies with a mandate in air and sea transportation matters to ensure a joint approach to the following: a) The evaluation and modernisation of airports and seaports; b) Increased security in sea and air transport. c) The adoption of an open skies policy; d) Greater functional cooperation among regional airlines; e) The adoption of a common policy and regulatory framework governing cruise tourism; f) A joint approach to human resource development; g) The adoption of controls and protocols governing the movement of oil and toxic waste within the Caribbean Sea 4.0 CONCLUSION The policies outlined in this document are designed in accordance with the status of tourism as a lead economic sector. The Tourism Partners are of the view that the pursuit of these measures will place St. Lucia s tourism sector and the economy in general on a sounder footing and create the basis for sustained development of the industry. 16
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