Analysis of Caribbean Tourism - Case Study Example

Caribbean Tourism Introduction Tourism has emerged as a central feature of the economy of many nations. In fact, the United Nations World Tourism Organisation (UNWTO) has disclosed that tourism has been experiencing sustained growth and diversification over the past 60 years. As such, tourism has emerged as one of the largest and fastest growing sector of the global economy. In addition, the World Travel and Tourism Council (WTTC) had estimated that the contribution of tourism to the global GDP was around 9.2%, and that this would increase to 9.4% in a decade’s time. The number of destinations that had invested in tourism development had been experiencing a steady increase, as it had been realised that tourism was integral to promoting socio-economic progress[Dwy15]. Moreover, several nations have been witness to the fact that innovation constitutes a driver of their economic growth and prosperity. At the micro-level, innovation promotes a firm’s competitive advantage. Furthermore, innovation is central for enhancing the output of the service sector [Car142]. As such, the development of infrastructure that is devoted to tourism, has been driven by technological changes to a major extent. With the advent of the Internet, information and communications technology (ICT) has drastically altered the perception pertaining to tourism services and significantly improved their quality. Moreover, tourism companies have benefitted tremendously by utilising the Internet. One of the reasons for this is the enormous amount of information that can be gathered about the consumption habits and requirements of clients[Fir13]. In addition, improvements can be achieved by adopting the following measures. First, promotion of institutional capacity building, environment and culture, via awareness programmes aimed at the local community. Second, providing support for the employment of contemporary technologies and communications systems that improve the utilisation of regional, national, and global information relating to sustainable tourism development. Third, encouraging the development of regulatory frameworks that promote sustainable tourism. Fourth, having in place partnerships pertaining to sustainable tourism, in order to conserve and use limited resources. Such partnership should involve the private sector. Moreover, it should cater to the demands of the market and the consumer, and it should be founded upon community-based initiatives[Zap05]. Furthermore, it should extend support for destination marketing that encourages cultures, environment and people. Fifth, making a concerted effort to develop human resources at every level of tourism. This will prove to be of considerable advantage in generating institutional capacity, frameworks that support the development of small management enterprises, and enhance the ability to use modern technologies. Finally, making persistent efforts to improve the responsiveness of civil society, local communities, policy makers, private sector and government officials, vis-à-vis the function of tourism in promoting the local economy and mitigating poverty[Zap05]. Factors Influencing Tourism Change in Technology Technological breakthroughs, such as the proliferation of the personal computer and the Internet, unprecedented use of mobile communications, and the employment of robotics for tracking finished goods and components have transformed human life. These changes have made a tremendous impact upon tourism, banking, service sector and the manufacturing industry. In addition, the world has become a smaller place[Bro10]. In addition, several data analysis tools are available, which make it a simple task to analyse the information relating to clients. Such information is easily available on web servers. Subsequently, tourism companies can employ this analysis for providing products and services that match the expectations of their customers. Moreover, travel agencies have obtained a major advantage from technology, due to the introduction of computer reservation systems (CRSs). These systems provide real-time access to airlines and hotel accommodation offers, thereby mitigating the load on the reservation process to a substantial extent[Fir13]. However, with the introduction of the Internet, travel agencies and the tourism industry have been compelled to confront the challenges posed by the altered competitive environment and an integrated world. The tourism industry is essentially based upon a human-centred service industry, wherein Human Resource Management is critical[Cho121]. Some of the ancillary services of tourism are; first, customer information tourism intermediation, which includes reservations and rentals. Second, special character, such as congresses, fairs, exhibitions, hunting and festivals. Third, cultural and artistic activities. Fourth, sports; and finally, financial services. Information services emerge at the time of planning and employing tourist services. These services carry out an important function in the planning of the voyage. Such information should provide accurate and complete information regarding the journey and stay. It is the responsibility of tourism organisers to provide information services[Cut14]. The majority of the industries and sectors have undergone a major transformation, on account of the adoption of ICTs. In the contemporary epoch, industries face a major challenge, with respect to the manner in which technology-based innovations have to be adopted by them, in order to achieve quantifiable competitive advantage against their competitors. This applies with considerable emphasis to the travel industry[Seg14]. The present day tourism industry has been significantly influenced by ICTs. This has effected drastic change in the functioning of this industry. With the adoption of ICTs, the tourism industry has been transformed into a sector that is information and knowledge intensive. It is in this context that the Caribbean Tourism Administration has to acknowledge the potential of the ICTs to empower the local small and medium enterprises[Seg14]. At the time of formulating policies, the concerned authorities have to take into consideration the power and influence of ICTs. There is an urgent necessity to promote the modernisation and digitalisation of the small and medium industries, undertake the widespread use of e-commerce and to enhance their online presence and interaction with the digital tourist. Despite optimistic predictions and its positive status, the travel and tourism sector is subject to several challenges[Seg14]. The inexorable development of technology has provided a major impetus to the tourism industry. Demographic Changes The Demographic Change and Tourism report has forecast that the global population will be 8.3 billion, by the year 2030. The major demographic trends involved have been thoroughly analysed by this report, whose analysis provides insights into future tourism demand and travel behaviour. In addition, it furnishes several recommendations for optimal adaptation by companies and destinations, so that they can enhance their competitiveness. Moreover, this report cautions that visitor profiles and preferences will experience significant fragmentation[WTM10]. In addition, the competitiveness of a destination will be determined by its capacity to develop and market tourism products to a population that is aging and drawn from different ethnicities. The longevity of people is on the increase and this will pose a major challenge to the prevailing presumption regarding ageing for tourism. The younger tourists, who are engaged in full time employment, could consider a holiday at a tourist resort, whilst the older tourists could proceed upon a holiday to experience novel activities[WTM10]. As evident from the incidents of the past few years, geo-political factors have considerable significance in international tourism. For instance, the terror attacks of 11 September 2001 have brought about a re-organisation of the tourism industry. In this context, the Caribbean has successfully projected itself as a safe paradise and low risk tourism region. This can be chiefly attributed to its practice of gathering tourists in exclusive areas. The truth of the matter is that the Caribbean region has undergone several grave social tensions. In addition, there are several areas that are poverty stricken[Deh10]. Moreover, some areas are controlled by drug cartels, gangs and organised criminals. In addition, these anti-social elements have successfully forayed into some tourist resorts, including Negril and Acapulco. The menace posed by these entities is so great that several tourist cities, such as Havana and San Juan have erected high security perimeter fences around the heritage sites, so that tourists can engage in their activities without being disturbed. Such tourists are continuously observed by specialised police personnel, who have been imparted specialised training in this regard. Thus, the so called tourist bubbles have emerged from the process of securing and simplifying tourist sites. The very composition of these sites has been rendered uniform to a greater extent, due to the unprecedented development of mass tourism. This development has brought about standardisation in the manner of marketing tourism across the globe. As a consequence, locations have been deprived of their uniqueness, with respect to the tourism product[Deh10]. Thus, the Caribbean tourism authorities have to take cognisance of these factors, so as to develop safe tourism in the region. Economic Factors Global recession has produced a major impact upon the tourism sector, in the Caribbean. In this region, tourism constitutes a major source of foreign exchange and employment. For instance, the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) disclosed that three-fourths of tourists visiting the English-speaking Caribbean hailed from economies that were currently undergoing a recession. This resulted in a dramatic fall in the number of tourists to this region, with several harmful outcomes for employment, tax revenue and foreign-exchange earnings[Eco09]. In fact, there had been a reduction of 20% to 35% in the number of tourists to this region in the year 2009. In order to address this unwelcome development, several reduced rate tourist packages were introduced in this region, which further reduced profits. The great difficulty being experienced in attracting financing had adversely affected the construction industry. As a consequence, several of the large-scale projects had to be postponed or annulled. In addition, several of the ancillary businesses that had been dependent upon tourism, had to discontinue operations[Eco09]. Subsequently, the situation improved and the Caribbean Tourism Organization revealed that the Caribbean constituted a highly preferred tourist destination. This was reiterated by the Cruise Lines International, which stated that 43.5% of the international ship deployments were to the Caribbean. As of the year 2013, there were 21,884 million passengers to this region, and this was a 2.7% increase over the previous year. There was considerable variation regarding the number of tourists visiting a specific destination, and locations farthest from the US had a lesser number of tourists, thus, Grenada witnessed a 21.8% reduction in cruise passenger arrivals in 2013, in comparison to 2012. This was in contrast to the places located nearer to the US, such as Curacao, which experienced a 45.1% increase in 2013 over 2012[Dwy15]. Conclusion Tourism is relentlessly burgeoning as a major entity in the global economy. Thus, lifestyles are being transformed by the global economy, knowledge-based societies, cheaper transport, global demographics, and environmental and sustainability policies. Moreover, these factors have also brought about radical change in the operations of the tourism industry, the conduct of tourists and comprehension of this industry. In addition, the tourism industry has undergone several changes, on account of technological innovation. As such, the Internet has affected many industries in the present era. Due to the Internet and mobile devices, communications have improved considerably, which has exercised a major influence upon the tourism industry. The Caribbean tourism industry has to adopt innovative communication strategies, in order to cope up with the contemporary competition. Recommendations Digitalisation and modernisation in the small and medium industries of the Caribbean, has to be promoted, and e-commerce has to be embraced to a much greater extent by these industries. This is essential for improving their online presence and for enhancing their interaction with the digital tourist. Moreover, the issues generated by the global recession, have exacted a heavy toll upon tourism in the Caribbean. The authorities have to work diligently to establish partnerships with the private sector, so as to conserve and utilise the limited resources optimally. Furthermore, the Caribbean authorities have to adopt stringent measures to control and eventually eliminate the influence of criminals in tourist destinations. References Brooks, I., Weatherston, J. & Wilkinson, G., 2010. The Business Environment: Challenges and Changes. 2nd ed. Financal Times Management. Carvalho, L. M. C. & Sarkar, S., 2014. Market structures, strategy and innovation in tourism sector. 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