{"id":249949,"date":"2020-05-24T13:11:28","date_gmt":"2020-05-24T17:11:28","guid":{"rendered":"https:\/\/dominicanewsonline.com\/news\/?p=249949"},"modified":"2021-03-14T16:49:35","modified_gmt":"2021-03-14T20:49:35","slug":"resetting-dominicas-tourism-industry-in-light-of-covid-19-dominica-freedom-party","status":"publish","type":"post","link":"https:\/\/dominicanewsonline.com\/news\/homepage\/homepage-carousel\/resetting-dominicas-tourism-industry-in-light-of-covid-19-dominica-freedom-party\/","title":{"rendered":"Resetting Dominica’s tourism industry in light of COVID-19 – Dominica Freedom Party"},"content":{"rendered":"
\"\"
Kent Vital is the political leader of the DFP<\/figcaption><\/figure>\n

In the last of our first three statements on the new Coronavirus in Dominica, we started discussing the desirability for there to be prepared a meaningful rapid relief package and an economic stimulus package to respectively address the immediate social impact of the COVID-19 Pandemic on the people and awaken the economy. With regards to a stimulus package, our suggestion is not per se about a package towards resuscitating the economy in the aftermath of the adverse impact of the COVID-19 pandemic as, the truth be told, there is not much to resuscitate. But certainly, the occasion of the COVID-19 pandemic provides a compelling action point to reset the economy, as the little life that was remaining in the economy of Dominica is being snuffed out by the COVID\u201319 pandemic and there are potentially new trends, realities and opportunities that need to be incorporated into our economic planning. \u00a0In our last statement, we discussed the need for a rapid relief package and discussed considerations for resetting the agriculture industry. We now turn our attention to the tourism industry.<\/p>\n

The tourism industry in Dominica is small and has not been internationally competitive.\u00a0 This is disappointing given the tremendous potential there has been for making the industry a top performer in the Caribbean by offering a world-class but special and different tourism product.\u00a0 However, the COVID-19 pandemic and the resulting global recession that is unfolding has the potential to diminish the little that we have achieved in the industry.\u00a0 Efforts must be made to minimize the fall-out in the industry, but more importantly, the occasion of the crisis can be used to prepare the industry to be more competitive than it was leading up to the incidence of the pandemic.\u00a0 The rise of the country towards its true tourism potential has evaded the country under an incapable and corrupt government over the last twenty years.<\/p>\n

Let us recognize that the global recession that is unfolding as a result of the COVID-19 pandemic is expected to be very severe, perhaps not unlike the great depression of the 1930s.\u00a0 Certainly, business has dried up for our tourism establishments and this will remain that way as long as our borders and those of our visitor source-market countries remain closed to normal business.\u00a0 But beyond that, given the expected severity of the global recession, Caribbean tourism is not likely to fully recover for at least another year.\u00a0 During that time, many tourism establishments may fail. If the government of Dominica had set aside reserves during the recent few years when revenue from the Citizen by Investment (CBI) programme were significant, then the Dominica Freedom Party would have suggested to the current government to use some of these funds to help tourism businesses wait-out this long barren business period. But this is not an advice we can give as it appears that the much of the CBI funds were misappropriated or mismanaged.<\/p>\n

However, the government may consider using loan resources from the IMF and other multilateral agencies to provide some of that support.\u00a0 Loan resources from the IMF alone will be far from sufficient to allow the government to cushion the blow from the global crisis.\u00a0 Financing from other sources must be attracted as we have discussed before, but even these will be significantly short of the ideal amount required. But to increase the chances for accommodation and other tourism business to survive the period, a major consideration has to be the restructuring of business debt where this is necessary.\u00a0 Beyond that, however, the crisis period can be used as an occasion for renewal and for preparing the tourism industry to be more competitive.\u00a0 This could involve renovation and upgrade of property and staff training among other activities.\u00a0 Private business owners could be facilitated to do so through grants with strategic conditions attached.\u00a0 As much as possible, consideration should be given to retaining employees in undertaking upgrade activities. But we advise private owners to be creative and think through how this could be done as much as possible on their own, as they can\u2019t count on a corrupt government.\u00a0 Additionally, the government should use the crisis period to upgrade the public space so that the natural beauty of the country can be complemented by the built environment.\u00a0 Making the industry internationally competitive also requires upgrading infrastructure to include public road and airports. Investment in public infrastructure will have the additional advantage of filling the void in business activity as a result of a decline in visitor arrivals during the crisis and recovery period. Resources for support to the private sector and for upgrading infrastructure and other public elements of our tourism product should be included in a stimulus package.<\/p>\n

But the upgrading of Dominica\u2019s tourism industry should be pursued and incentivized in the context of a rethinking of the tourism strategy given the industry\u2019s current lack of competitiveness and in the face of new trends or hindrances that may arise post the COVID-19 pandemic.\u00a0 These should also set the stage for the expansion of the industry.<\/p>\n

In reviewing the country\u2019s tourism strategy, several questions should be considered. What makes or can make Dominica\u2019s tourism special and different? How can that difference be packaged to appeal to potential investors in the industry and potential visitors? What target markets would bring the greatest return to the industry?\u00a0 What new opportunities or realities arising from the COVID-19 pandemic should be reflected in our tourism strategy? \u00a0What infrastructure upgrades would be necessary to allow the industry to unleash its full potential?\u00a0\u00a0\u00a0 The \u201cbig idea\u201d of being the nature island of the world could serve as the foundation for differentiating our tourism product.\u00a0 There is a need for clarity on what that encompasses so that the country\u2019s product development and promotion efforts can be aligned to the big idea. For instance, being the nature island of the world should mean a commitment to conserving the natural beauty of the island, preserving or restoring the health of the natural environment including the degree of purity of our coastal waters and that of our rivers, the use of sustainable and organic farming practices, and ensuring that human activity and the built environment do not diminish the enjoyability of the natural environment.\u00a0 There should also be a commitment to the adequate maintenance of trails\/paths (including the Waitukubuli trail) to allow residents and visitors to enjoy the island\u2019s natural assets.<\/p>\n

Clearly, Dominica could be more competitive in the tourism segments of nature tourism, agriculture tourism and health and wellness tourism. Potentially, post the COVID-19 pandemic, interest in these segments may grow faster than that in the mass-tourism segment which is popular in many other Caribbean destinations. This is due to the tendency for these segments to cater to smaller groups that are not clustered closely together \u2013 for instance on a beach or in the hotel\u2019s restaurant, as would more typically occur with mass-tourism.\u00a0 In the wake of the COVID-19 pandemic, tourist may be more health-conscious and may more readily opt for the safer holiday option.<\/p>\n

In these safer segments in which Dominica should position itself to be an industry leader, there is need for more guidance on the characteristics of visitor accommodation facilities that would best aesthetically complement and technically align to the differentiated tourism product we wish to achieve.\u00a0 This could lead to preparing a \u201cdesign code\u201d that could reflect on the use of building material, waste disposal and the use of renewable energy among other areas.\u00a0 It would also be important to encourage the minimizing of the carbon footprint of businesses, encourage the sustainable use of local materials, and encourage the engagement of local people and communities.\u00a0 Such considerations could serve to tailor the type of upgrades that are supported and encouraged during the period of low visitor arrivals during the crisis and the unfolding global recession.<\/p>\n

Similar consideration must go into the undertaking of upgrades to public spaces and the design of physical infrastructure. These must complement and enhance the differentiated tourism product we wish to encourage.\u00a0 Moreover, difficulty in accessing the island by air from international origins has been a long-standing hindrance to attracting visitors and investments in tourism.\u00a0 Seeking funding to address this matter along with the need to upgrade roads, would serve as an important stimulus to the economy during the crisis period while contributing to improving the competitiveness of the tourism product.\u00a0 Such funding would have been more readily available had the government not misappropriated or mismanaged the CBI funds.<\/p>\n

It is recognized that investment in the tourism sector will decline given that the current major source is the CBI Programme which was already at risk for reasons we previously explained.\u00a0 Efforts ought to be made with respect to how investments in projects that were already under construction or planned under the CBI programme could be continued.\u00a0 The construction activity under these projects could help cushion the fall in other areas of economic activity affected by the coronavirus crisis while allowing more rooms to become available that would strengthen the islands\u2019 competitive position.<\/p>\n

Notwithstanding there must be a new approach with the CBI programme going forward if at all it is to be salvaged. In that respect, there must be an honest and deliberate commitment to carrying out the necessary due diligence and there must be proper accounting and reporting systems and parliamentary oversight.<\/p>\n

However, it is recognized that foreign private investor interest in the tourism industry will be depressed globally over the next year or two, due to the state of the global tourism industry and the unfolding global recession. \u00a0That notwithstanding, there may be opportunity to interest Dominicans living overseas to invest in the tourism industry given that they may understand well the potential of the country and due to their cultural connections.\u00a0 However, Dominicans living overseas who may have the capacity to invest, may not have confidence in the current government.<\/p>\n

Furthermore, the global disruption of the tourism industry, present an occasion for Dominica\u2019s tourism product to be repositioned to compete for market share provided that the country can use the crisis period to become more competitive.\u00a0 Therefore, a resetting of the industry must be accompanied by an appropriate promotion and marketing strategy.<\/p>\n

 <\/p>\n

Kent Vital<\/p>\n

Political Leader<\/p>\n

Dominica Freedom Party<\/p>\n","protected":false},"excerpt":{"rendered":"In the last of our first three statements on the new Coronavirus in Dominica, we started discussing the desirability for there to be prepared a meaningful rapid relief package and an economic stimulus package to respectively address the immediate social…","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_cbd_carousel_blocks":"[]","footnotes":""},"categories":[265,282,36,11,235,9,20],"tags":[],"class_list":["post-249949","post","type-post","status-publish","format-standard","hentry","category-covid-19","category-covid-19-news","category-economy-development","category-general","category-homepage-carousel","category-news","category-tourism-publicity"],"acf":[],"yoast_head":"\nResetting Dominica's tourism industry in light of COVID-19 - Dominica Freedom Party - Dominica News Online<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dominicanewsonline.com\/news\/homepage\/homepage-carousel\/resetting-dominicas-tourism-industry-in-light-of-covid-19-dominica-freedom-party\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Resetting Dominica's tourism industry in light of COVID-19 - 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