TOURISM IN DOMINICA – SOME ESSENTIALS FOR SUCCESS

Background

For over fifty years, agricultural production of bananas and coconuts has been the mainstay of the Dominican economy. Agricultural crops accounted for close to 20% of GDP at factor cost in current prices in 1991 while estimates show the hotel and restaurant sector accounting for barely 2% of GDP that same year. Data from 1986 – 1993 show agricultural crop production as the single largest contributor to GDP. From 1993 – 1997 Government Services registered a higher percentage contribution than agricultural crops. Over the ten year period 1988 – 1998, banana production declined from a high of 76,872 tons to 28,602 tons, resulting in a serious decline in the volume of exports, loss of income to a large part of the population and a decline in foreign exchange revenue to the country. Export revenue from bananas amounted to EC$37.6m in 1998. In 1993 there were 5,779 active farmers in the industry but uncertainty surrounding the future of the banana industry had caused the number of active farmers to decline to 2,993 in 1998.

By contrast, tourist arrivals have grown from around 30,000 per annum in the mid 80’s to 73,506 in 1999. The cruise sector has shown more phenomenal growth from about 6,777 passengers in 1990 to 244,603 passengers in 1998, dipping to 202,003 passengers in 1999 (see accompanying figure). It is estimated that tourist expenditure amounted to EC$122.5 m. in 1997 and EC$131.7 m. in 1999. Government revenue from tourism is estimated at about 27% of total tourist expenditure, i.e. EC$ 35 m. in 1999. Tourism’s contribution to GDP is now estimated to be in the region of 10 – 12% taking into consideration the tourist industry that is more than just hotels and restaurants.

It is clear that as the fortunes of the banana industry have waned over the years, those of the tourist industry have been on the rise. Notwithstanding this, it is important to look more critically at the structure and performance of the tourist industry over the past few years to determine if this trend can hold and under what circumstances. Otherwise, Dominica can find itself faced with double trouble in a short space of time.

The Tourism Sector

Dominica has become known as the Nature Island of the Caribbean. It does not have the beaches that other Caribbean islands are known for, therefore it was a late entrant to the highly developed Caribbean tourism business. The sharp growth of nature tourism and eco tourism worldwide over the past decade helped to establish Dominica in the tourism business. Dominica’s tourist attractions are largely nature based and consist of towering mountains, majestic scenery, waterfalls, the largest boiling lake in the world, bird watching, hiking trails, national parks one of which is a World Heritage site, spectacular diving, (rated by Skin Diver magazine as one of the top ten places for diving world wide and one of the top five in the Caribbean for the quality of its reefs), whale watching and the increasingly popular event attraction of the World Creole Music Festival. The island is also home to the descendants of the original Caribs who gave the Caribbean its name.

Tourist infrastructure consists of two airports, the larger of which can accommodate aircraft of a limited size (65 passenger seat capacity). Neither airport has night landing facilities. Dominica’s rugged terrain, part of its unique charm and natural attraction has made airport construction extremely costly and difficult. The island has three deepwater berths, two specifically for cruise ships and the other for containerized cargo.

Tourist accommodation consists of 560 rooms in 19 hotels, 213 rooms in 24 guesthouses and 91 rooms in 21 apartments/cottages. Approximately half of these rooms are regarded as being below international standard. There are a few restaurants of international standard outside of hotels, limited duty free and other shopping and a number of ground tour operators, taxis and car rental companies.

Public sector management of tourism is effected through the Ministry of Tourism and the Division of Tourism of the National Development Corporation. The private sector is somewhat more organized than it was two years ago, but a high level of cohesiveness among the different elements of the industry is not yet observed.

Tourism Performance

It is important to look beneath the surface to get an understanding of the dynamics of the tourist industry in Dominica. If our only indicators of the performance of the tourist industry were the numbers of tourist arrivals and cruise passenger arrivals referred to earlier, we would get the wrong picture. Over the last few years, the number of cruise passengers leaving the ship to visit Dominica has declined from about 90% to about 70%. About 45% of these now go on organized tours. While some passengers walk about the city on their own (without the benefit of an organized tour) lack of a comfortable pedestrian environment together with insufficient up to standard restaurants and shopping opportunities severely limit the experience of Dominica open to these passengers. Lack of a more organized and attractive environment for vending of craft items and tours that are not pre-sold have led to some harassment of visitors and a less than satisfactory first impression of the destination. The effect of this is a weakening of the base of potential repeat visitors.

Preliminary data for January – June 2000 indicates that Dominica received 33,801 tourists (stay over visitors) compared to 33,725 for the corresponding period in the previous year. In 1999, Dominica’s largest growth by market was from the Caribbean. This market showed a 16.5% growth over 1998. The Caribbean market (42,641 tourists in 1999) accounted for over 50% of tourist arrivals into Dominica, a situation that is different from most other Caribbean destinations. This has been the case from as far back as 1990. Just under half of the Caribbean market comes from the French West Indies. Figure 2 shows tourist arrivals into Dominica by main markets for 1998 and 1999.

Between 1995 and 1999 the number of tourists using hotels and other paid accommodation has steadily declined from under 50% of arrivals in 1995 to under 40% in 1999. At the same time, the number using private accommodation has risen to 55% of all arrivals. Hotels alone segregated from other paid accommodation have seen a decline from 25% of tourist arrivals using their facilities in 1995 to 17% in 1999. Annual average hotel occupancy is below 50% with the figure dropping as low as 20% for some properties. Only 16% of the Caribbean market stayed in hotels in 1999 with another 11% staying in Guest Houses and as stated earlier this has been the single largest market for Dominica for some time now. Figure 3 shows tourist arrivals by place of stay for the years 1995-1999.

There clearly is a correlation between the pattern of use of tourist accommodation and the type of tourist visiting Dominica. The correlation can also be extended to the marketing philosophy the country has had over the past five years and the various images that it is trying to project. So while the overall numbers may be up, the hotel industry is not necessarily doing well. A recent survey (Sept. 2000) of the tourist industry private sector here indicated that 86% of respondents regarded the current year as mediocre to bad for business (41% mediocre and 45% bad) while 77% regarded the last two years as mediocre to bad for business (54% mediocre, 23% bad). The survey covered a wider cross section of the industry than hotels.

The above gives us a truer picture of the health of the tourist industry than we can get from a look at total tourist arrivals and cruise passenger arrivals. In view of the severe problems facing the banana industry and the increasing expectations held for tourism sector performance, the true picture is highly relevant. While many persons in the tourist industry are self-employed, e.g. taxi drivers, there can be no doubt about the potential of the hotel and restaurant sector to generate employment and create income both directly and indirectly. While the hotel industry may be able to ride out two years that are bad for business, it cannot withstand much more and its success or failure will have very serious reverberations in the economy.

It is clear that a number of properties in the accommodation sector have been built without appropriate physical development plans and without the benefit of market research and/or a truly marketable concept. The question is does it matter now whose fault it was, whether it was Government’s or the entrepreneur’s? Both will eventually feel the effects of inadequate and inappropriate planning and what is at stake is more than the traditional public/private sector debate. The tourist industry is neither public sector nor private sector exclusively and each is highly dependent on the other for successful performance.

Essentials for Success

The time for critical analysis and remedial action in Dominica’s tourism sector is now. Let us examine some aspects that are essential if the tourism sector is to have a firm foundation for success. These can be divided into public sector initiatives and private sector initiatives.

Public Sector Initiatives

1. Review the destination’s image. The Public Sector should review Dominica’s image and competitive position as a tourist destination in all its markets. The image that is being portrayed may or may not be well received in the market place. It is not enough for Government to put into place what Government thinks ought to be done. In this business it is critical to get feedback from the market place, and to act on findings. Are there conflicts in the different messages that accompany the image being projected? Is the image clear and appealing to identifiable groups or is it confused and non-descript with no powerful appeal? It is important to know the answers to these questions.
2. Know your Competitors. It is essential to know who your competitors are, what they are doing and, most important, are they doing it better than you? Learn from competing destinations, tailor what has been learnt to Dominica’s situation and put what has been learnt into effect. Know when you have a competitive advantage and guard it.
3. Become more familiar with the market place. Get to know people who can help. This business is done in the marketplace and it is essential to have the right contacts. The right contacts can help to shorten time consuming processes, can offer useful advice and by so doing perhaps reduce the price of doing business.
4. Become more business oriented. In today’s fast paced world, business people have no time or respect for government’s unnecessary bureaucracy! The international tourist industry does not look kindly on any display of arrogance or ignorance by any public sector official. Public sector officials from any sector (not necessarily tourism only) should be aware of opportunities to advance the image of the destination and oftentimes, the priceless value of such opportunities. They should all be prepared to respond appropriately and sensibly on behalf of Dominica’s tourist industry. There should be agreement regarding government’s objectives for the tourism sector. Government should guard against other sectoral initiatives being advanced for short- term gain if they will do long term damage to the tourism sector. Where this happens, the tourism sector is set back too far in a climate of strong international competition and it is very difficult to make up for lost momentum.
5. Work with the private sector. The public sector in tourism cannot afford to ignore the private sector. The tourist product is a combination of what both own, operate and are responsible for. The attitude that the private sector is subordinate to the public sector is misplaced and only serves to undermine achievements that could otherwise be realized.
6. Learn the essentials of successful marketing. It is important to know the differences between marketing to the cruise ship industry and marketing to attract stay over visitors. Learn the subtleties and differences between major markets and their specific requirements. Tailor the product and the message for specific markets. Determine where you put your energies and scarce resources. Ask yourself a few questions. Are Nature/Eco tourists interested in carnival? How important is this in the decision making of the potential tourist matched to the dominant image of the destination? How much time, energy and financial resources are spent on the marketing of event attractions compared to the dominant year round attractions of nature based activities, diving etc.?
7. Be responsible and proactive. Work diligently to carry out responsibilities, e.g. education of the general public on tourism matters and policy, monitor the performance of public sector employees in tourism, e.g. port, immigration, customs and others such as taxi drivers, tour guides, vendors occupying public spaces etc., since they can impact directly on tourist satisfaction with the destination experience.
8. Customer Satisfaction and Safety. The Public Sector should monitor the level of customer satisfaction with the destination and take action before bad situations become intractable. Inaction in the face of negative situations does not only present a negative image of Dominica and its tourist industry, but the opportunity lost for building the destination’s positive image is incalculable.
9. Planning. Ensure that careless and improper developments do not become the norm in the tourist industry. Review the system of fiscal incentives in the tourist industry to determine whether they have had the desired effect and if not, what changes are necessary.

Private Sector Initiatives.

Operators of tourism facilities and services may consider the following initiatives:

1. Do a complete review of your business in order to determine areas for improvement. If necessary, get someone to help you conduct an honest and objective appraisal and be prepared to take advice. Too often, advice is sought and then rejected because it is perceived to be critical rather than what the owner wants to hear. Make at least some improvements if it is not possible to make all.
2. Get to know the market better. Try to fine tune or zero in on where you can draw your customers.
3. Match your product to market more closely. Prepare a marketing plan. Build in flexibility. If one objective cannot be realized because an avenue is blocked, make sure that you have another avenue open to you to achieve your objective.
4. Become technology friendly. This is important because modern technology can help you to do business in a new way. Maintain truth in advertising on the web. It is essential as your own reputation and that of the destination are at stake.
5. Work together as an industry. If you are all in the same boat and the sea is rough, why fight with each other? Work together for the survival and prosperity of the industry and all will benefit.
6. Ask yourself in what way is your property special or unique, what will the guest or customer think of it? How does it compare with similar level properties in other islands? Do you care what the customer thinks? If you don’t, you will have to if you want to stay in this business and become or remain successful.
7. Pay attention to detail, to finishing touches that may be inexpensive but can add a new look of quality, beauty, comfort and style to your property. It is always best to seek professional advice on how to add that look of quality and beauty to your property otherwise you may be in danger of adding layers of confusion resulting in lack of charm and lack of appeal. Landscaping adds beauty and presence to a property but often it is not professionally done. Landscaping does not mean planting any shrub anywhere!
8. Pay attention to customer service. Go all out to ensure that your guests are comfortable and fully satisfied. It is your job to help your foreign guests understand and enjoy what is special about Dominica
9. Learn what the market wants and deliver. There is no excuse for doing things that are obviously contrary to what people expect and pretending it doesn’t matter. It does matter. Some very basic mistakes are made in Dominica’s hotels and restaurants probably due to inadequate supervision and training of those who actually come into contact with visitors. Owners, operators and managers of tourist businesses should ensure that their employees are aware of market expectations and requirements in the international tourist industry. The private sector should show that it has standards and takes pride in ensuring that standards are met.
10. Get creative with local cuisine. The international tourist market does not expect food to be produced and served in a dull, any old how, every day manner. Eating and dining are important parts of the tourism experience of a different destination and a different culture. Those in the food service business should be creative, consistent with quality, scrupulous with cleanliness, efficient and pleasant with service. They should pay attention to their ambience and décor and they should bring everything they do together to create an excellent and lasting impression.

Conclusion

The difficulty facing the banana industry in Dominica has shifted the spotlight on to the tourist industry. There are expectations for the industry to play a much greater role in economic development. If these hopes are to be realized, concerted action must be taken now to build a structurally sound industry that can gain a reputation internationally for an outstanding product with unparalleled service. These are the ultimate goals to be achieved. They must be kept in mind constantly, because this is an industry in which competition is so keen that we can be easily overtaken in the race. While we remain indecisive and unprepared to take actions that we know should be taken, others are moving ahead with the right strategies. Government should as soon as possible carry out a review of the total tourist industry identifying areas for urgent attention. Remedial or preventive action should be taken by a specific time rather than just noted somewhere!

The private sector in Dominica’s tourism has often proudly stated that it is homegrown and that the level of foreign investment seen in other Caribbean islands does not obtain here. That may be fine, but the reality is that being homegrown will not cut it on the international market and it will not by itself sell the product. What is essential to this equation is the addition of impeccable standards and service with a unique flair and style. More creativity and effort have to be put into private sector operations. Dialog, discussion among private sector entities and a willingness to work together with Government on all fronts for the improvement of every aspect of the industry will be essential.

The initiatives advanced in this paper do not necessarily involve huge financial outlays for an already overburdened and under-financed tourism sector. Yet they are all essential in the context of the tourist industry today, and they will continue to be essential if the tourism sector is to contribute meaningfully to Dominica’s development.

URL http://www.uwichill.edu.bb/bnccde/dominica/conference/papers/Bellot.html