Commentary
A Candid View of Tourism and Our New'E-merging' Economy
Mr. William Connolly
Each of us have the responsibility to pocket a patriotic dutyto build at least a part of his/her life into the life of ourcountry to do our share in the making of the Cayman Islands accordingto the plan of our forefathers. We have come from a period ofpassive Citizenship and just perhaps the silent majority is finallywaking up.
We realise that Cayman is not made. It isin the making. Today it has to meet an impending situation asmenacing as any in our Islands' history. It does not sound a callof utter doom, but it is nonetheless a call to patriotism andto higher ideals in citizenship. A call for the preservation ofthe representative character of the country itself.
A call for us to create a vision that capitaliseson the endless possibilities of the emergence of what is now called"the new economy". The E-business economy that is beingdriven by globalisation, consolidation, convergence, technologyand communications. A vision that inspires and prepares us tomanage changes from the traditional concepts.
In tomorrow's world these concepts willrequire some fundamental adjustments to provide market "spaces"rather than places where the way in which we operate is subjectto rapid and constant changes.
With the emergence of e-businesses, we mustsecure a segment of this new commerce to ensure that Caymaniansare given an equal opportunity to become financially secured.If we are to remain the fifth largest financial centre in theworld, we must embrace the tumultuous opportunities of the Internetnow.
Include it in the school's curriculum, establishopportunities to encourage and support Caymanian entrepreneursto enter in this new industry, via soft loans from financial entitiessuch as CDB or AIDB. Also, restrict certain market categoriesto Caymanian entrepreneurs only.
There are some that would want you to believethat our "ship" will not make it to the new economicfrontier unless some of our old, some of our young and some ofour weak are left behind. However, I believe that a rising tidetakes all that is on it to a higher level.
To create a better future for the next generation,we must have leadership that molds the principles of a viableeconomy and a sustainable environment like a fixed beacon, givingus direction and purpose, but constantly innovating and adaptingto new realities. We anticipate this type of leadership in thenewly elected Government.
While we must embrace this new economy,let's not forget to focus on opportunities through managing changesin our two dominant economic contributors - the financial andtourism industries.
Today, we boast eloquently that our country'sgreatest tourism asset is our people - yet of the five major hotelsnot one is managed by a Caymanian or even a Caymanian that issecond in command. Today, we must first begin to affect a changein these ills, and immediately embrace the opportunities thatare upon us with the growing development of new hotels. It istime to dismiss the 'lip service' and provide some real results.
I believe that our new Government has thevision and long-term interest of the Caymanian people to finallyaffect this change. It also makes good business sense for companiesto invest in this type of long-range planning. You build a country'spride by first building the country for it's people. That pridebecomes a way of life and is gladly shared in the welcoming ofthose to our shores.
The new Minister of Tourism has been likea breath of fresh air to the industry. He has wasted very littletime in meeting the tourism industry partners in order to getfeedback for an aggressive marketing plan and a revised tourismmanagement policy. In his review of the Department, I believehe will identify a number of initiatives that can be adopted toreduce the Department of Tourism's (DOT) budget expenditure byapproximately US$3-million.
It is my view that we need to re-visit thestrategy that has produced the success we experience today. Recapturethe personalised service we are renowned for. We must continueat all costs to protect our reputation of safety while in pursuitof changing our image as "expensive". An image as suchis marketable only if it is perceived that there is value fromthe destination. We also need to revisit "where" and"how" DOT does business.
As globalisation of the world evolves throughtechnology, it is not necessary to have as many regional tourismoffices as we currently have. The old method of selling travelhas and continues to change as a result of the information super-highway.More focus should be placed on using the Internet technology ratherthan the old 'door to door' or cold calls sales technique.
While DOT may not be equipped and positionedfor this change as yet, I believe that the vision of the Ministerand the astuteness of the newly-appointed North America Director,(Ms. Pilar Bush) will recognise the cost-saving opportunity ofreducing the number of regional offices to five.
It is perceived that DOT's previous positionon the all-inclusive concept was somewhat misguided in its approachto this market product. All-inclusives do not necessarily relateto beach access denial. Segments of this market already mirrorthe clientele profile that we get as visitors. An assessment ofthe market dictates that the market is screaming for an all-inclusiveproduct in Cayman.
I believe that this area of the market canbe beneficial to the Cayman economy by defining strong parametersand negotiating criteria. For example, establish an agriculturalprogramme/loans to farmers to promote the breeding of livestock(chicken and beef). Create a dine-around programme.
Local companies like Jacques Scott, Fosters,and Kirk's Wholesale would also benefit from the resorts' purchasingrequirements, let alone the large amount of promotional dollarsthat the all-inclusive companies spend.
It is fair to note that within the parameters,it is equally important to consider and negotiate the social implicationslike education and housing that would be required for staffing.Or, the environmental implications like placement, physical infrastructure,water, energy and waste.
After satisfactory consideration of theabove parameters, I would strongly support an exploration intothe possibility of attracting this new market for the Cayman Islandsbecause it provides good product variety for our destination.
I believe that we should place a moratoriumon hotels along the Seven-Mile Beach and offer incentives to buildon the other side of island as well as the Sister islands.
Remove restrictions on airfare as dictatedby Cayman Airways.
Marketing
Create a more effective use of our travelpartners. We need to ensure that there is some local product permeatingall presentations and reflecting our cultural diversity.
Define our product more carefully - establisha rating system that quickly resolve a growing concern that weare perceived as a 5 star destination offering three-star service.
Cruise-ship Management
Better control is needed - limit the numberof cruise ships arrival in order to establish a greater demandfor land based tourism. Remove the restriction of Sunday trading.Also review the fee structure. Are cruise-ships paying their fairshare of tourism fees?
Fees are based on definition of ships as"seasonal" or "annual". What ships fall withinthese definitions? How much revenue has been collected in eachcategory? I recommend an increase fee per cruise ship passengerarrival. This revenue could be directed to the Environmental Impactfunds to support the preventative efforts of beach erosion onSeven-Mile Beach or destination marketing to support land basedtourism.
Build/purchase a local hotel to be usedas part of training school, for example, the Islander Hotel toprovide actual "on the job" experience. Revenue fromguest-stay could contribute to the financial feasibility of operatingthe school.
Encourage the building of a conference centre-negotiate an agreement with the United States (US) Governmentfor tax relief given to US companies that have conference meetingsin the Cayman Islands.
Improve Tourism Historical Data-collectionand use.
* Improve/Redesign immigration form
* Hoteliers reporting
* Airlines reporting
* Wholesalers reporting
Dive Product Improvement
There is a need for improved product offering,resting existing sites and creating new ones. This can be doneby increasing the number of dive sites to include more of whatthe destination has to offer while recognising the need to "rest"sites which have been over-used and respecting the needs of localfishermen and their traditions (eg, two to five per year)
Beach/Coastline Erosion Review
Planning and Development of Environmentshould be instrumental in this review - draft legislation thatis consistent with the planning regulations to preserve/preventbeaches from eroding. Also include the use of indigenous vegetation.
I strongly encourage and support environmental"Green Hotels". However this must be in concert withan effective Government recycling programme and trash/waste management.
Negotiate for any new hotels to providesupport for infrastructure (ie: roads, paved sidewalks, drainagesystem, sewage, schools, housing).
Transportation
Plan to minimise traffic loads and congestionon West Bay Road. Make Seven Mile Beach area roads more user-friendlyfor pedestrians and thereby more advantageous for retail stores.
We must insist on serious commitments to training/scholarships.We currently accept too much lip service about training and providingupward mobility for Caymanians. Create measuring tools to showresults.
Product Enhancement
* Beautification (eg: design an UrbanizeProcess in tourist areas)
* Infrastructure
* Technology (better utilization)
* Quality Assurance
* Culture / Heritage exchanges
Place a moratorium on restaurants alongSeven-Mile Beach, especially on fast food outlets. Encourage morelocal entrepreneurs to open local food establishments.
The pillars of our wonderful country restsolidly on the foundations that our forefathers built. A foundationthat supports the stability of our current economic prosperity.What we do collectively from henceforth will determine its strengthand longevity not just for some of the people but for all of thepeople.