Challenges facing the Tourism

Industry
Ms. Crawford
Objective : At the end of the class students should be able to

 outline the challenges facing the tourism industry in the region;

 Challenges facing the tourism industry
 Security of funding
The commercial sector, which supplies tourism needs, significant investment in order
to develop products, create new facilities, and modernize and upgrade existing
facilities.
The public sector will play a large part in funding major infrastructure developments
and improvements.

 Marketing
Marketing extensively in established and potential markets is very important but it
requires high levels of spending- from governments, tourism organizations and
individual hotel operators do not have the necessary funds.
 Research
A vital part of this research is establishing the tourists needs, wants and tastes so that
products, facilities and services respond to any changes.

 Shortage of trained workforce and inadequate training

A successful tourism industry relies on a skilled and qualified workforce but there
are shortages of suitable personnel in certain sections. This might result in some
hotel owners having to recruit from overseas.
Lack of provision of hospitality training facilities can mean that students have to
train away from home. A shortage of suitable trainers means the trainers must be
brought in from abroad or students again have to travel to foreign institutions.
 Water supply and infrastructure
An adequate supply of potable water is a major issue for the tourism industry. The
large numbers of visitors who arrive each year outnumber the resident populations of
most countries in the Commonwealth Caribbean.
Providing sufficient quantities of water can be challenging and expensive and needs
to be balanced with the requirements of the natural environments.
The water supply need to be reliable and protected against problems arising from
natural disasters such as hurricanes. Countries need to invest in such things as
storage tanks and water purification systems.
Other elements of a country’s electricity, transport and health infrastructure also need
to meet the standards expected by tourists.
 Global terrorism
The existence of global terrorism deters some people from travelling because they
feel unsafe, while others may be put off by the delays caused by security checks.
Countries in the Caribbean rely very heavily on tourism due to its contribution to
their gross domestic product (GDP) and so any downturn in tourism numbers will
have a significant effect on existing businesses and on the possibilities for expansion.
 Lack of direct air access
Some Caribbean islands lack direct air access from their major tourist-generating
markets because there are no scheduled carriers servicing the route or the airports are
not large enough to accommodate large, international aircraft.

 Emerging destinations
Tourists are always able to consider a wide range of options for their travel. The
Caribbean faces challenges from emerging destinations that:
 Can offer similar experiences at competitive prices
 Are nearer the traditional markets of the Unites States and Europe
Tourists are looking at value for money and there are those who are conscious of the pressure to
reduce long-haul flights because of the alleged impact on climate change.
The Caribbean also has emerging destinations within the region, where islands other than those
with established histories of tourism are entering the market. The challenge here is to ensure
that these places are able to benefit from the overall tourism market without having a negative
impact on the economies of those countries already engaged in tourism.
 Cruise ship policies
Port taxes and fees are charged by governments and port authorities to cruise operators to cover
costs of docking and use of port facilities. Some governments also charge a head tax per
passenger, which is used to maintain and improve port services and infrastructure. All these
costs are passed on to the passengers. If one government’s charges are higher than another’s, a
cruise ship operator may shift their business to a cheaper destination. To avoid this,
governments need to agree on uniform taxes and fees.
 Key Points
1. Tourism relies on secure funding, through market research and effective marketing.
2. Tourism faces challenges due to:
 A lack of trained staff
 Difficulty in providing adequate supplies of potable water
 Undeveloped infrastructure
 Global terrorism
 Limited direct air access
 Competition from emerging destinations
3. Governments need to present a unified approach to fees and taxes regarding cruise ships.