CHAPTER 1 INTRODUCTION1.0 Introduction

Tourism is seen as a final consumption by households for holidays through which the spending of domestic and foreign visitors creates turnover and added value for many companies and different sectors of the economy. This demand consists of a package of services either put together by the tourist himself or by the operator. The creation of such a package requires production in partnership and marketing by various suppliers. Mauritius is already a well established tourist-receiving country both in the Indian Ocean and on the highly competitive world market. The development of tourism facilities, more particularly the accommodation sector, has been stimulated by private local sector and overseas interests with a low level of government intervention. Although the tourism industry is dominated by the private sector, the Mauritian government has been involved in the provision of financial incentives to attract both local and foreign investment. The tourism development is therefore a complex process involving the development agents and key stakeholder groups with state policy, planning and regulations. Although the current form of tourism may have impacts on the destination, there may be potential broader development outcomes which benefit the destination.

1.1

Problem Statement

The size of Mauritius means that tourism cannot be allowed to expand indefinitely as tourism is bound to give rise to a large number of conflicts. Moreover, the development of tourism is assisted by the rapid growth of private sector businesses and their willingness to exploit new commercial objectives. Absence of a proper planning policy and development will have detrimental impacts on tourism on the society, economy and the environmental. This has been the case to Mauritiuss neighbour countries like Seychelles, Madagascar and Comoros who have failed to develop their tourism industry because of conflicts. (Conlin and Baum, 1995).

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Aims and Objectives of the studySince the government is aiming 2 million visitors by in Mauritius, the study of Telfer and Sharpley (2008) will be tested to find out its effectiveness for the destination, the fact that Mauritius relies largely on the tourism industry. y The fact that each development of tourism brings along negative impacts, we shall analyse whether the strategy plan on tourism takes into consideration the different impacts y Look at the actions taken to mitigate the negative impacts of tourism by different stakeholders y y Identify changes occurring in tourism planning in Mauritius Decisions need to be made as to what forms of tourism are best suited to a destination for the long term and for its sustainability.

1.4

Geographical Situation and Tourist Trends of Mauritius

Mauritius, an island covering 1,860 square kilometres (720 square miles), is situated some 2,000 kilometres (1242 miles) off the south East coast of Africa. More than 150 kilometres (93 miles) of white sandy beaches and transparent lagoon are protected from the open sea by the worlds third largest coral reef, which surrounds the island.

The population is estimated at 1,2 million. It forms a mosaic of different races, cultures and religions since Mauritians are descendants of immigrants from the Indian sub-continent, Africa, Europe and China. The cultural diversity and racial harmony of the island make of Mauritius a unique place. Most Mauritians are multilingual, being fluent in Creole, French and English. English is the official language. Bhojpuri, Hindi, Urdu, Tamil, Marathi, Telugu and Mandarin are also spoken.

Mauritius has a tropical maritime climate which is conditioned by south east trade winds. There are no extreme temperatures either in summer or in winter. In summer the temperature varies from 23c to 33c, while in winter the island registers temperatures ranging between 17c to 23c. ~2

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This is what makes the island an all-year round destination due to its tropical climate and in particular the sun which visitors enjoy the most. The island is predominantly a holiday destination for beach-resort tourists, where the coastline is fringed with white beaches and protected by coral reef almost around the island. The name Mauritius itself tends to conjure images of spectacular beaches and clear lagoons. Mauritius has emerged as the most important tourist destination in the Indian Ocean. From a base of 68000 foreign visitors in 1973, this had risen to nearly 871,356 total arrivals in 2009(CSO, 2009). Since 1988, the governments stated policy towards tourism in Mauritius has been to emphasize low-impact, high spending tourism so as to maintain the islands up market profile, as a luxury beach holiday destination. For the last 40 years, the Mauritian tourism product focused mainly on the traditional 3S characteristics and was considered as an exclusive beach holiday destination. And since last year (2009) Mauritius has a brand new slogan and identity, "Mauritius - Cest un Plaisir" (MauritiusIts a Pleasure). The Brand Mauritius comprises of five major key components of proposition, personality, positioning, values and supporting messages. More thought has been given to diversification of the tourism product. Private sectors have started to provide a number of additional services such that there is more synergy among the players of the industry to set tourism on the right track.

Tourist arrivals have been expanding consequently, thus rising from 102,510 in 1977 to 656,453 in 2000. About 67% of the tourist arrivals are of European origin, with France supplying nearly half. The nearby Reunion French Territory is the most important short haul source market accounting for about 13% of total tourist arrivals. Asian residents provided 6% of tourist arrivals, almost half of which originated from the Indian Sub-Continent. In 2000, total number of nights spent by tourist was estimated to about 6.5 million, representing an increase of 13% over 1999. The average length of stay works out to around 10 nights and average expenditure per tourist reached about Rs. 22,000.

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Based on the favourable growth registered in tourist arrivals, it is estimated that arrivals for the year 2001 would be around 700,000 (+10%) with total gross receipts of the order of 15,500 million rupees.

Figure 1. Trends in tourist arrivals and hotel rooms Mauritius is mainly a holiday destination for beach-resort tourists. It possesses a wide range of natural and man-made attractions, with a sub-tropical climate, clear warm sea waters, attractive beaches, tropical fauna and flora mixed by a multi-ethnic and cultural population that is friendly and welcoming. These tourism assets are, its main strength, especially since they are backed up by well-designed and run hotels, and reliable and operational services and infrastructures. The hosts are being seen product and the "hospitality atmosphere" has more and more as the nucleus of the tourism been receiving increasing attention.

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CHAPTER 2 LITERATURE REVIEW2.0 Tourism Planning

According to Hall (2000), tourism planning is a kind of decision-making and policy-making which deals with a set of interdependent and systematically related decisions. Planning is not a new concept and Friedman (1973) stated that the most important characteristics of planning is directed toward the future, where there is the necessity for continuing planning analysis assessment throughout the planning period with constant re-evaluation and adjustment of means to ends. Both authors therefore suggested that the tourism planning process is a continuous framework that should be adopted. Moreover, Hall and Jenkins (1995) argued that tourism is an integral part of machinery of many governments to decide various courses of actions. Demand for tourism planning and government intervention in the development of a tourist destination may lead to unwanted negative impacts or they can be minimized. However, according to Ritcher (1989), many tourism policies involve excesses and mistakes occasioned by national tourism development. This is viewed by some as unpopular measures, leading to conflict. Still, tourism policy is meant to guide subsequent actions in a way where the destination feels more comfortable. It is a framework where present and future tourism issues are analysed and decisions taken. The policy also points out the way stated in general terms the destination would like to see happening, what it is prepared to tolerate and what will not be acceptable (Godfrey and Clarke, 2000). Therefore, the tourism planning need to be integrated within wider planning processes to maximize tourism development through economic, social and environmental enhancement.

2.1

Tourism and Development

Tourism is, without doubt, one of the major social and economic phenomena of modern times. Since the early 1900s when, as a social activity, it was largely limited to a privileged minority, the opportunity to participate in tourism has become increasingly widespread. At the same time, distinctions between both tourism destinations and modes of travel as markers of status have become less defined; tourism, in short, has become increasingly democratised (Urry, 1990b: 16). ~5

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It now also accounts for the single largest peaceful movement of people across cultural boundaries in the history of the world (Lett, 1989: 277). However, tourism is not only a social phenomenon; it is also big business. Tourism has also developed into a powerful, world-wide economic force. Owing to its rapid and continuing growth and associated potential economic contribution, it is not surprising that tourism is widely regarded in practice and also in academic circles as an effective means of achieving development. That is, in both the industrialised and less developed countries of the world, tourism has become an important and integral element of their development strategies (Jenkins, 1991). Indeed, the raison dtre of tourism, for its promotion in any area or region within the less developed world, is its contribution to development. Tourism has been regarded as an engine for growth and poverty reduction. Both developed and developing countries design their policy to generate benefits from the tourism industry. Hall suggests Many governments around the world have shown themselves to be entrepreneurs in tourism development (Hall, 1994). Tourism deserves encouragement and support from the government (Jeffries, 2001). Although tourism is an activity sustained mainly by private initiative, governments have traditionally played a key role in its development. In many developing countries, the state usually plays a central role in formulating and planning tourism development policy (Jenkins, 1998). The public sector has a significant and effective role in managing the environment and image of tourism (Wong, 2003).

2.3

Politics and ideology

Tourism is viewed as another tool to raise the political image and legitimacy of a state. Nation states in Southeast Asia have been promoting the tourism industry not only to drive economic development but also to support ideologically driven definitions and symbols of national dentity and ethnicity (Sofield, 2000). In addition, states use tourism for their political interests as Richter has suggested: the commitment to develop tourism is a policy decision fraught with politics but almost always couched in economic and social rhetoric (Richter, 2001). In the Philippines, tourism was used as a political tool to sell martial law in September 1972 under the Marcos regime (Chheang, 2009). Many development projects and programs were implemented to promote the tourism industry in the Philippines as a policy to increase the good image of Marcos administration. (Ritchter, 1996; 2001). In Myanmar, Hall (1997) observed that ~6

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Any discussion of tourism in Burma cannot ignore the political issues that surround it. (Henderson, 2003). They all conclude that state exploits tourism for their political gain or objectives.

2.4

Tourism Development in Cambodia

Tourism has been strongly developed in Cambodia since the 1960s. However, civil war had seriously damaged tourism industry in the 1970s and 1980s. Tourism has become one of the most important industries contributing to economic development in Cambodia. Tourism is the third largest contributor to the Cambodian economy after agriculture and textile industry and second biggest income generation after the textile industry. In 2005, income from tourism accounted for 832 million US Dollars, or about 13 per cent of the Cambodian Gross Domestic Product (GDP), and it provided annually about 200,000 jobs for the Cambodian people. Besides the economic effects of tourism, the Cambodian government also views tourism as an effective tool to promote the cultural values and identity of Cambodia which had been lost due to the external intervention from neighboring countries (Thailand, and Vietnam), French colonialism and the prolonged civil war and upheavals. Tourism can also help to improve the image of the Cambodian state. It is argued that the Cambodian state considers tourism as the main contributor to socio-economic development, and to improvement of Cambodias image and identity (Chheang, 2008).

The government views tourism as one of the most effective tools in poverty reduction in Cambodia through employments, tax revenues, and other spillover effects in other sectors, particularly agriculture, handcrafts and souvenirs production, and construction. Tourism is one of the top five national development priorities of Cambodia. In addition, tourism play a vital role in realizing the Cambodian national development strategy called Rectangular Strategy focusing on promoting economic growth, employment, equity and efficiency in public sector. In order to reduce poverty effectively through tourism, the government pays special attention to employment and income creation for the local people. The government recognizes the leakage of tourist revenues through the importation of materials and agricultural products from the neighboring countries to supply the needs of hotels and restaurants. To deal with this issue, the ~7

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government encourages and supports local farmers and producers, particularly the farmers living in Siem Reap province, home of Angkor Watt, to produce these goods instead. Once village once product is considered as an effective tool in reducing leakages and promoting local community development.

2.4.1 Infrastructure and tourism facilities development Tourism infrastructure and facilities are the main priority in planning and development. The Cambodian government has tried to invest in building basic infrastructure such as highways, roads, electric power plants, water supplies, and international airports. With the support of the international financial institutions and donor countries, some basic physical infrastructure has been constructed but this is still at a very low level. Tourism development requires the development of infrastructure and other tourism-related facilities (Hun Sen, 2002).

2.4.2 Stakeholders collaboration: private, NGOs, and government

Collaboration between the public, private sectors and civil society is considered to be a factor propelling tourism development in Cambodia. The private sector plays an important role in providing tourism services while the non-governmental organizations (NGOs) support sustainable tourism and poverty reduction in Cambodia. The most crucial issue is to work in partnership with the private sector to implement all action plan related to tourism sector development (Hun Sen, 2002).

2.4.3 Cultural heritage preservation The Cambodian government considers cultural heritage preservation is the cornerstone of tourism development in the country. Cambodia is attractive to international tourists due to her unique culture and history. Culture has contributed and is contributing to the country's development through its promotion of cultural touristsThe conservation and promotion of advancement of the national cultural heritage and civilization is an absolute will and determination of the Royal Government (Hun Sen, 2002). Cambodia will seek to promote the sustainable management of our heritage and natural resources through specific policies and ~8

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measures, so that these contribute to continuing national growth while remaining intact as national patrimony (Hun Sen, 2002).

2.4.4 Environmental protection Environmental issues are quite new for Cambodia especially within the framework of tourism development. The incorporation of environmental protection and tourism development started from the end of the 1990s when the environmental issues came to the surface in Angkor Park and other tourist destinations. The main environmental concerns are the increasing problems of solid waste and river pollution. Attention should be given to developing measures to promote the protection of the environment and the cultural heritage according to the concept of "sustainable tourism development" (Hun Sen, 2002). Historical, cultural and natural tourist sites have been managed and reorganized with good protection of natural and cultural environment (Hun Sen 08 May 2003).

2.4.5 Human resources development Tourism education and trainings have been just introduced and developed in Cambodia since the early 2000s. Human resources in tourism planning and development are the big challenge for the country. Therefore, training and education in tourism is given special attention by the government. The important work is the training of human resources to a level of high knowledge and with sufficient capability in both national and international standards (Hun Sen, 2002). Tourism vocational training schools were established; technical staff and employees have been trained both at home and abroad (Hun Sen, 2003).

2.4.6 Tourism products marketing and promotion There are many tourism products in Cambodia but the problem is that marketing and promotion of the products is still very poor. Currently, most of the tourists come to visit Cambodia to see Angkor and not other places. It is necessary to promote other cultural and natural attractions for tourists in order to keep them to stay longer in Cambodia. The Royal Government is preparing a master plan for tourism development and diversifying tourist destinations into other cities such as Sihanoukville (Hun Sen, 2005).

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2.4.7 Legal measures (Visas) Cambodia was the first country in Southeast Asia to introduce an e-visa. This provides great convenience for the tourists. The visa procedure is very simple. The tourists could get visas at border checkpoints and at international airports. In addition, visa simplification goes to next step which facilitates travelling procedures and transportations for tourists within the regional framework. For instance, Cambodia has adopted the implementation of Single Visa between Cambodia and Thailand on 17 December 2007. This is the key in travel facilitation and a regional role model to facilitate tourists entry, without having to apply for visa at many locations, meaning that they can apply for their visa at a single place only in order to visit Cambodia and Thailand. Single Visa Agreement will also be applied to Cambodia-Vietnam, Cambodia-Malaysia, and Cambodia-Singapore in the future. To encourage tourists to spend more time and money in Cambodia, the Royal Government has implemented actions to ease travel and entry: streamlined issuance of visas, especially for ASEAN citizens (Hun Sen, 2003).

2.4.8 Regional cooperation Cambodia always considers regional integration as its top foreign policy. In terms of tourism development, Cambodia needs the support from the regional groupings such ASEAN and the Greater Mekong Subregion to create a joint policy to attract more tourists to come to the region. Bangkok and Hochiminh International Airports are the main gateways for tourists coming to visit Cambodia. Apart from making efforts to expand the domestic market for tourism products, the government is conscious of the great potentials of ASEAN and the Greater Mekong Subregion (Hun Sen, 2002).

2.5

The Role of Planning

Specific plans and actions can increase tourisms benefits or decrease the gravity of a negative impact. It is important for communities to understand the wide scope of impacts and endeavor to agree on what positive impacts to emphasize. It is wise to acknowledge and identify possible negative impacts so actions can be taken to minimize or prevent them. A clear statement of the community's vision of tourism should be an integral part of a communitys comprehensive plan. Active planning directs tourism toward the goals of the community, clarifying tourisms role and uniting multiple interests. Planning is not enough. Active implementation and management of ~ 10

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plans and prompt attention to emerging tourism issues will maximize positive and minimize negative impacts. Monitoring and addressing community attitudes should be an ongoing part of the management effort. Good monitoring efforts can identify trouble areas and give leaders an opportunity to defuse community reactions and make timely changes before a crisis occurs(Moen.S, 2001).

Tourism development in an efficient destination that can help to achieve the harmonious economic growth in connection with beneficial social recessions and helps ensure the protection and renovation of the natural and cultural assets. Planning of tourism includes drawing up the future that can be acceptable to the local inhabitants and visitors. Without planning and controlling mechanism the development of tourism may end by having social, cultural and economic distortions, which will be reflected in the relationship between tourists and local inhabitants (Reinholde. K and ara. A, 2000). As soon as the tourism grows and expands, it brings the social and economical changes in the respective region. These can be positive as well as negative.

The efficiency of tourism can be shown with: 1. Positive economical impacts: y y y y y tourism helps to diversify and stabilize economic of region; makes good basis for current business and provide circumstances for new businesses; demand for additional employees; increase of turnover creates increase of incomes; the turnover and additional incomes make increase of taxes in the budget.

2. Positive social impacts: y y y y y the pride of native place from local inhabitants increases; new social contacts appear; revenues from tourism help to support the cultural and historical objects; increases educational level of the inhabitants; tourism helps develop the trade and dont allow to disappear the particular culture and customs ; y development of the culture and crafts promotes. ~ 11

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3. Positive environmental impacts: y y y saves flora and fauna. maintain of the natural objects. care taking of the environment.

Inadequately planned and developed tourism can cause the problems. 1. Negative social aspects are: y y y y congestion; life style conflicts; criminal level; tension with the local inhabitants for the use of the tourism resources.

2. The negative factors influencing environment are: y y y y increase of the wastage; increase of pollution, noise ; the rear species could diminish; there could be the damages of the physical environment.

For prevention of negative aspects, careful tourism resources analyse and planning of the future actions, oriented on the sustainable tourism should be made. During the planning process destination like Latvia have tries to avoid the negative factors and increases the positive influence of the social, economical, and environmental factors, which are connected with tourism development. The tourism planners must to be sure, that tourism will give maximum positive impact for the municipality. The planning process is associated with the following points given by Gunn: 1. Developing of high-level tourism sector must not always be very expensive. 2. To encourage use the tourism either for cultural and economical exchange. 3. Distribute the economical gains from the tourism to the possible more local people. 4. To preserve the cultural and natural resources as the part of the tourism development. 5. To maximise the income of the foreign tourists for the stabilization of the payment balance. 6. To increase employment.

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7. To help the peripheral regions increase the employment and prevent the outflow of the local people. 8. To increase the number of the high income class tourists. (Gunn, 1994)

Understanding that tourism development may result in many impacts suggests that local government, the tourism industry, and community residents need to work cooperatively and carefully to plan for its growth and development (Lankford, S.V. and D.R. Howard. 1994). Planning can help create an industry that enhances a community with minimal costs and disruptions in other aspects of community life (Moen.S, 2001). Having broad community involvement and embracing different perspectives during planning helps identify and resolve concerns that would otherwise create problems later.

2.5.1 EconomicTourism increases employment opportunities. Additional jobs, ranging from low-wage entrylevel to high-paying professional positions in management and technical fields, generate income and raise standards of living. Particularly in rural areas, the diversification created by tourism helps communities that are possibly dependent on only one industry. As tourism grows, additional opportunities are created for investment, development, and infrastructure spending. Tourism often induces improvements in public utilities such as water, sewer, sidewalks, lighting, parking, public restrooms, litter control, and landscaping. Such improvements benefit tourists and residents alike. Likewise, tourism encourages improvements in transport infrastructure resulting in upgraded roads, airports, public transportation, and non-traditional transportation (e.g., trails). Tourism encourages new elements to join the retail mix, increasing opportunities for shopping and adding healthy competitiveness. It often increases a community's tax revenues. Lodging and sales taxes most notably increase but additional tax revenues include air travel and other transportation taxes, business taxes, and fuel taxes. New jobs generate more income tax revenues. When considering the economic impacts of tourism, it is essential to understand that tourism businesses often include a significant number of low-paying jobs, often at minimum wage or less. These jobs are often seasonal, causing under-employment or unemployment during offseasons. Labor may be imported, rather than hired locally, especially if particular skills or ~ 13

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expertise is required, or if local labor is unavailable. Some tourism-related businesses are volatile and high-risk ventures that are unsustainable. Greater demand for goods, services, land, and housing may increase prices that in turn will increase the cost of living. Tourism businesses may claim land that could have higher-value or other uses. Additionally, non-local owners and corporations may export profits out of the community. The community may have to generate funds (possibly through increased taxes) to maintain roads and transportation systems that have become more heavily used. Similarly, if additional infrastructure (water, sewer, power, fuel, medical, etc.) is required, additional taxes may also be needed to pay for them.

2.5.2 EnvironmentalAreas with high-value natural resources, like oceans, lakes, waterfalls, mountains, unique flora and fauna, and great scenic beauty attract tourists and new residents (in-migrants) who seek emotional and spiritual connections with nature. Because these people value nature, selected natural environments are preserved, protected, and kept from further ecological decline. Lands that could be developed can generate income by accommodating the recreational activities of visitors (Pirnar , I. 1993). Tourist income often makes it possible to preserve and restore historic buildings and monuments. Improvements in the areas appearance through cleanup or repairs and the addition of public art such as murals, water fountains, and monuments (part of making a community ready for tourism) benefit visitors and resident alike. Tourism is generally considered a "clean" industry, one that is based on hotels, restaurants, shops and attractions, instead of factories (Omurgonulsen, U. 1990). Tourism can also degrade an environment. Visitors generate waste and pollution (air, water, solid waste, noise, and visual). Natural resource attractions can be jeopardized through improper uses or overuse. Providing tourist services can alter the landscape's appearance. For instance, visual pollution may occur from billboard proliferation. As tourism develops, demand for land increases, especially for prime locations like beachfronts, special views, and mountains. Without forethought, natural landscape and open space can be lost. The destruction or loss of flora and fauna can happen when desirable plants and animals are collected for sale or the land is trampled (Obua, J. 1997). Tourists or the businesses that cater to them often remove plants, animals, rocks, fossils, coral, and cultural or historical artifacts from an area. Uncontrolled visitation or overuse by visitors can degrade landscapes, historic sites, and monuments. Where water is scarce, tourists ~ 14

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can overwhelm the available supply. Travelers can also inadvertently introduce non-indigenous species, as can increases in the trade of animals and plants.

2.5.3 Social and CulturalThe social and cultural ramifications of tourism warrant careful consideration, as impacts can either become assets or detriments to communities. Influxes of tourists bring diverse values to the community and influence behaviors and family life (Tekin, A. 1994). Individuals and the collective community might try to please tourists or adopt tourist behaviors. Interactions between residents and tourists can impact creative expression by providing new opportunities (positive) or by stifling individuality with new restrictions (negative). Increased tourism can push a community to adopt a different moral conduct such as improved understanding between sexes (positive) or increased illicit drug use (negative). Safety and health facilities and staffing tend to increase at the same time safety problems such as crime and accidents increase. Traditional ceremonies may be renewed and revived by tourist interest or lost in alternative activities. Community organizations can be invigorated by facing the opportunities of tourism or overwhelmed by its associated problems. Calamities such as natural disasters, energy shortages, terrorism, political upheaval, disease outbreak, a chemical spill, or even widespread negative publicity could shut down tourism abruptly but sometimes can attract curious visitors (Gurkan, M. I. 1996). Tourism can improve the quality of life in an area by increasing the number of attractions, recreational opportunities, and services. Tourism offers resident opportunities to meet interesting people, make friendships, learn about the world, and expose themselves to new perspectives. Experiencing different cultural practices enriches experiences, broadens horizons, and increases insight and appreciation for different approaches to living. Often, dwindling interest in host cultures is revived by reawakening cultural heritage as part of tourism development, which increases demand for historical and cultural exhibits (Ongyerth, G.T. 1991). This interest by tourists in local culture and history provide opportunities to support preservation of historical artifacts and architecture. By learning more about others, their differences become less threatening and more interesting. At the same time, tourism often promotes higher levels of psychological satisfaction from opportunities created by tourism development and through interactions with travelers (Bachleitner , R. and A.H. Zins. 1999). ~ 15

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Tourism can come to a community with a dark social and cultural side, too. Illegal activities tend to increase in the relaxed atmosphere of tourist areas. Increased underage drinking can become a problem especially in beach communities, areas with festivals involving alcohol, and ski villages. It is easier to be anonymous where strangers are taken for granted; bustling tourist traffic can increase the presence of smugglers and buyers of smuggled products. Lifestyle changes such as alterations in local travel patterns to avoid tourist congestion and the avoidance of downtown shopping can damage a community socially and culturally. Hotels, restaurants, and shops can push tourism development into residential areas, forcing changes in the physical structure of a community (Allen, L.R., P.T. Long, R.R. Perdue, and S. Dieselbach. 1988). Development of tourist facilities in prime locations may cause locals to be or feel excluded from those resources. As local ethnic culture alters to fit the needs of tourism, language and cultural practices may change. The "demonstration effect" of tourists (residents adopting tourist

behaviors) and the addition of tourist facilities may alter customs, such as dating habits, especially those of a more structured or traditional culture. The potential of meeting and marrying non-local mates may create family stress.

2.6

Roles of Stakeholder in Tourism Development

A stakeholder is identified as any group or individual who can affect or is affected by tourism development in an area (Feeeman 1984, p 46). The focus on more stakeholder participation emphasizes its ability to handles multiple perceived issues. Ioannides (1995) study of Akmas, Cyprus demonstrated the problems that can arise when stakeholders are not part of the planning process. It is suggests sustainable tourism development cannot be achieved if imposed without regarding the stakeholders interests. Other studies (Briassoulis 2002; Robson & Robson 1996) support Ioannides findings that for sustainable tourism development to be successful stakeholders must be involved in the entire process.

Stakeholder theory in policy development can be found in the early ideas of community participation and public involvement that are central in the basic democratic belief that citizens should decide for themselves how government and their community should operate (Fiorino 1990; Nanz & Steffek 2004). According to Crosby, Kelley and Schaefer (1986), stakeholder ~ 16

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participation is an effort to put a representative group of the public in dialogue with public officials so that the officials get the reactions of the public themselves on a particular subject. Stakeholder involvement should begin with identifying a diverse group of people in the community and informing them about the issues and topics (Carmin, Darnall & Mil-Homens 2003; Crosby, Kelly & Schaefer 1986). From the information that the stakeholders are given, they should be allowed to make the recommendations that they believe to be the most appropriate for their community (Crosby, Kelley & Schaefer 1986). Stakeholder participation can be facilitated or implemented in different forms, both informal and formal. Forms of participation include public hearings, advisory committees, surveys, focus groups, public deliberation, citizen review panels, collaboration, civic review boards, work groups, implementation studies and written comments (Beierle 1998; Carter & Darlow 1997; Fiorino 1990; Nanz & Steffek 2004). For participation to be empowering, stakeholders must be involved throughout the process and know that their participation has the potential to influence the decision (Ansari & Phillips 2001; Carmin, Darnall, & Mil- Homens 2003).

2.7

Enclave Tourism

Governments, particularly in developing countries encourage tourism investment because of the assumption that it will contribute to economic development of their countries (Hall, 1995). According to Farrell (1990), tourism must be integrated into the local economy and successfully serve to promote other local activities in order to meet development goals. (Miller 1985) stated that most tourism planners agree that in developing nations, linkages between tourism and other economic sectors, such as agriculture or manufacturing are weak and should be improved. (Mbaiwa, 2002) made a study of Okavango Delta, in Botswana and concluded that the growth of tourism has stimulated the development of a variety of allied infrastructure and facilities, such as hotels, lodges and camps, airport and airstrips, within and around the Okavango Delta. These tourism services have therefore led to a booming tourist economy built around what is perceived internationally as a new and exotic destination.

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Oppermann and Chon (1997) state that tourism is an industry used by the developed countries to perpetuate the dependency of the developing countries. In developing countries, tourism reinforces the socio-economic regional disparities thus the tourism development in developing countries becomes largely enclave in nature. Tourism in developing countries becomes dependent on demand processes in the developed countries. However, Britton (1982) was in contrast with Oppermann and Chon. According to him, the focus of the dependency paradigm on international tourism in some developing countries results in the neglect of domestic tourism and budget or drifter tourism. In addition the enclave tourism is associated with the lack of interaction between the foreign investors with the local people. This becomes a source of resentment and alienation between the local people and the tourism industry.

However, critics of the enclave tourism are that the main focus is on foreign ownership of tourism facilities, rather than the local ones. Since foreign companies dominate the tourism industry in the Okavango, equal access to and decisions about the use of resources now largely excludes local people. This situation is not in line with the ideals of sustainable development which emphasises equal access and participation in decision-making about the use of natural resources by all user groups and stakeholders. The NWDC (2003) explains the low citizen involvement in running tourism enterprises in the Okavango Delta as being the result of a variety of factors such as limited knowledge, experience and business skills, lack of training, difficulties in sourcing start-up capital, carrying capacity limitations and limited marketing skills and land which is not always readily available. It can therefore be argued that the low level of Botswanas economic development, a great deal of capital needed for tourism development and high levels of management in the tourism sector contributes to tourism in the Okavango Delta being under the control of foreign investors.

The development of tourism in the Dominican Republic, on the other hand, has been predominantly financed by domestic investors. A special Ministry of Tourism was created in 1967 to handle the industry's development. In 1971, a "tourist incentive law" was introduced which provided tax breaks and fee exemptions for private individuals investing in tourism. The implied goal of the industry was to provide a framework for raising the standard of living of the local population and increasing the nation's revenue. The profits from tourism would, in theory, ~ 18

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later be redirected towards further diversification of the economy (Wiarda and Kryzanek, 1982). The reasons why many private investors and government planners have favoured the development of enclave tourism is due to the maximization the benefits from limited finances.

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CHAPTER 3 METHODOLOGY3.1 Introduction

This chapter describes the methodology used for the purpose of this study which has sought to analyse the stages of the tourism development and planning process and its application in Mauritius as a tourism destination. It is basically concerned with the collection of primary and secondary research. For the purpose of this study, qualitative data collection techniques have been used from different stakeholders regarding tourism planning and development.

3.2

Research Objectives

The main objective of this study is to examine the policy; planning and politics used in the island and how far the policies used by the major stakeholders help to achieve the goals set by the Ministry of Tourism. This will therefore enable to better understand the types of tourism development and to which extent they are sustainable in minimizing tourism impacts.

3.3

Determining the data collection methods

3.3.1 Primary Research /Unstructured Interview

The first data collection process was based on a primary research which consisted of a survey where a questionnaire (Appendices) was designed to gather information directly from major stakeholders involved in the tourism policy from the tourism planner at the Ministry of Tourism, the tourism planner at the MTPA, the Research Executive at AHRIM and a Senior Tourism Enforcement Officer at the Tourism Authority in different hotels in Mauritius.

A face to face interview was carried out with the Tourism following people mentioned above. To undertake this interview, they were first of all contacted on phone for appointments. The ~ 20

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main purpose of the different interviews was to get a better notion about the values, ideology, goals, strategies and resources of tourism development. The unstructured interviews have been a very flexible way of gathering information as the different people could express their ideas and answer the questions they were asked. In other words, they were required to respond and provide their views. Through probing as well, some clarifications were asked to aid in

minimising misunderstandings.

The beginning of the interview started with an overall view of how they viewed tourism planning and development as part of their objectives. It was followed by the strategies used by their respective organisations in promoting sustainable tourism development. Finally they were asked about the strategies adopted, taking account of global trends and international challenges to attract two million visitors by 2015.

3.3.2 Secondary Research The second part of the data collection method came from the secondary research where certain data and information which had already been published were used in the study as a support to the primary research. That is qualitative information is the different techniques used to evaluate the Tourism Development Plan which presents a vision for the growing tourism industry and also ensuring that environmental and social issues are addressed to the benefit of the people of Mauritius. The major source of secondary of information for this study was obtained from the Strategy Plan on Tourism (2008-2015). The internet has also acted as important secondary research for the following agencies involved in tourism planning listed below: y y y y y y y y Ministry of Tourism, Leisure and External Communications Mauritius Ports Authority Airports of Mauritius Ministry of Environment and National Development Unit Beach Authority Board of Investment Air Mauritius Ministry of Renewable Energy and Public Utilities ~ 21

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y y y

Ministry of Education, Culture and human Resources Ministry of Health and Quality of Life Small and Medium Hotel Association

3.4

Limitations of Study

However, some difficulties were being found when the survey was being carried out and they were as follows: y Unwillingness of some stakeholders to provide full information about the tourism policy they adopt due to confidentiality of certain reports y Although appointments were taken with the key informants, the interview processes were interrupted by phone calls and staffs themselves which led to diversion. y Certain information provided on websites used as secondary research was not fully updated and was partial y It was difficult to obtain an appointment with other key informants involved in tourism policy and planning

The next chapter focuses on the results gathered from the collection of information by interviewing stakeholders and use of websites.

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CHAPTER 4 RESULTS4.0 Introduction

The results and discussions are based from the primary and secondary sources of data from the major stakeholders involved in the tourism planning development process.

4.1

Unstructured Interview

4.1.1 Ministry of Tourism At the Ministry of Tourism, through a list of questions asked (Appendix A), the tourism planner gave a brief idea about the strategies adopted by the government. Each tourism planner is responsible for a particular type of tourism development, after which they compile a strategic plan after examining the different and whole aspects of the tourism industry. One of the principal role is to set policy and legislative frameworks for tourism. The main reason why government formulates tourism development strategy is especially the negative externalities that the tourism industry has.

Most of the strategies included in the tourism are strictly adopted as very often the tourism planner go on site visits to see if the policies are adhered properly by tourism service providers and the aspects of tourism impacts are also monitored closely. Planning of tourism includes drawing up the future that can be acceptable to the local inhabitants and visitors. Without planning and controlling mechanism the development of tourism may end by having social, cultural and economic distortions, which will be reflected in the relationship between tourists and local inhabitants.

As soon as the tourism grows and expands, it brings the social and economical changes in the respective region. These can be positive as well as negative. There are choices to deal with them:

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1. To react on the changes after they happens 2. To forecast them and to develop method or plan to be able prevent and control in the best way

The major stakeholders in the tourism development process are: y y y y y y y y Mauritius Tourism Promotion Authority Ministry of Environment and National Development Unit Integrated Coastal Zone Management Association hotelier et Restaurants de Lile Maurice Mauritius Ports Authority Tourism Authority Ministry of Public Infrastructure, Land Transport and shipping Ministry of Finance and Economic Empowerment

4.1.2 AHRIM AHRIM, Association des Hteliers et Restaurateurs de l'le Maurice' was formed in 1973, with the primary objective of representing and promoting the interest of hotels and restaurants in Mauritius . Further to the interview held with the Research Executive (Appendix B), AHRIM is laying much emphasis on building a better future for tourism and its main goal is to promote tourism through the creation of a better environment and atmosphere for all those working directly or indirectly in the tourism sector in view of attracting 2 million tourists by 2015. The vision is to make the tourism industry a viable prospect for the prosperity of the economy, leading to a rise in the quality of living of all local citizens. Various strategies are used by AHRIM to achieve a sustainable and harmonious Tourism Development in Mauritius. The main ones are:y y y y

To promote the interests of the hotel, catering and tourism industry in Mauritius To provide for joint consultations with other organisations of the private sector To provide a forum to discuss the interests of the industry To initiate and encourage activities which would further the development and interests of the industry and the private sector in general ~ 24

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y y

To liaise with Government and other bodies on matters relating to the industry To make representations in relation to legislative or other matters affecting the industry and if necessary to secure the services of other persons to that end

y

To do all such things as may be necessary for the development of the Tourism industry in Mauritius

AHRIM has a strong consideration towards the environment. Very often it organises fund raising activity to help in the betterment and protection of the environment. Thereafter it

sponsors various associations by donated funds that work towards the protection of the environment, namely Mauritius Society for the Prevention of Cruelty to Animal and Paws which deal with the protection and control of domestic animals and the Reef Mauritius and the Marine Mauritius Conservation Society which are responsible for the protection of the lagoon and sea environment AHRIM has also encouraged various hotels around the island to join hands in vast cleaning campaigns by showing their determination and team spirit in protecting their establishments, tourists, the villages and also inhabitants in the vicinities. AHRIM wants to improve operational efficiency in the tourism sector and it has associated the aid if Enterprise Mauritius to carry out Energy Management Consultancy in small and medium hotels & restaurants. They will therefore be able to improve energy efficiency through management measures and also to introduce renewable energy.

4.2

Secondary Data Collection

Many other stakeholders are involved in the tourism planning and policy for Mauritius. The information was easily available from websites to analyse their major activities and participation.

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4.2.1 Mauritius Tourism Promotion Authority The Mauritius Tourism Promotion Authority (MTPA) has been established by the MTPA Act 1996 with a view to: y promote Mauritius abroad as a tourist destination by conducting advertising campaigns, participating in tourism fairs and organizing, in collaboration with the local tourism industry, promotional campaign and activities in Mauritius and abroad. y provide information to tourists on facilities, infrastructures and services available to them in Mauritius; y initiate such action as may be necessary to promote cooperation with other tourism agencies; y conduct research into market trends and market opportunities and disseminate such information and other relevant statistical data on Mauritius; and y advise the Minister on all matters relating to the promotion of tourism

4.2.2 Beach Authority The Beach Authority (BA), established under the Beach Authority Act No. 7 of 2002, is a body corporate operating under the aegis of the Ministry of Local Government. Its main objective is to ensure an integrated approach for the proper control and management of public beaches both in Mauritius and Rodrigues through the provision of appropriate infrastructure and facilities for the benefit of the public. It also aims at a better democratisation of access to public beaches and ensures that the general public takes maximum advantage of the facilities offered. The functions of the Authority are to implement projects relating to the conservation and protection of the environment of public beaches; their upliftment and landscaping; infrastructural development, including the provision of amenities and leisure facilities; the enhancement of the quality of sea water; and the day-to-day cleaning of public beaches. Since its coming into operation, the Authority has been undertaking certain activities in collaboration with the parent Ministry. It has, over the years, recruited its own staff and is now fully operational and has been entrusted with new responsibilities such as:-

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y

Enforcement and monitoring of all activities in terms of the Beach Authority (use of Public Beaches) Regulations

y

Control of all trading activities, including issue/renewal of Beach Traders Licences (exBeach Hawkers Licence) in accordance with Beach Authority (Beach Traders Licence) Regulations Management of new public beaches, as and when proclaimed (such as St. Felix and Bel Ombre)

y

y

Management of landscaping projects undertaken by other Ministries/Departments (e.g. Grand Gaube public beaches)

y y y

Demarcation of swimming zones and installation of floats and buoys Safety and security for public on public beaches Sensitisation campaign to protect and preserve the public beaches

4.2.3 Board of Investment

The Board of Investment (BOI) is the official Investment Promotion Agency of the Government of Mauritius. As Mauritius opens to the world, transforming itself into a competitive global business platform, the BOI has put at the disposal of the international business community a personalised range of services to attract international investments and talents to the country.

BOIs team of professionals, University graduates with strong industry expertise, is well equipped to provide precious guidance for successful business launches in Mauritius. Over the years, the BOI has developed a strong partnership with the private sector by improving the investment climate and encouraging innovation. With headquarters in Mauritius, the Board of Investment has international offices in Paris and Mumbai and strong links with our worldwide network of consulates.

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4.2.3.1 Integrated Resort Scheme Under the Integrated Resort Scheme (IRS), luxury villas and other residential properties can be sold freehold at a minimum price of 500,000 USD to foreigners who, de facto, receive a residence permit. The few IRS villas put on the market so far have proved very popular, with overnight reservations and sales. Investors from UK, France, Singapore, South Africa, UAE and other countries are injecting money into new luxurious villa and housing projects needing 25 percent cash to get involved. The investment period is short and projects get sold to new villa owners, mainly non-citizens, just before construction gets started (i.e off-plan). Investment under the IRS brings investors higher yields and is expected to grow for the next 10 years. The IRS targets the high-end segment of the international property market, i.e., high net-worth individuals with high purchasing power. The properties they are allowed to purchase are luxury residences such as villas, apartments, and penthouses located in specific areas, approved by the Board of Investment. The investor may sell the property with no minimum selling price restriction; rent the property, elect tax residency in Mauritius and is free to repatriate funds or revenue raised from the sale or renting of the IRS property. International property developers claim our IRS is a good and competitive investment. 4.2.3.2 Real Estate Scheme Under the Real Estate Scheme (RES), residential units are sold to non-citizens at no minimum price. However, acquisition of property worth at least 500, 000 USD entitles the purchaser a residence permit. This scheme is targeted mainly for those investors, retirees and professionals, who want to invest, work and live in Mauritius or to those people who want to have a second home or holiday retreat in Mauritius. The Real Estate Scheme offers a wealth of opportunity for businesses to invest and prosper in the development of residential property. The residential properties may be sold to non-citizens at no ~ 28

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minimum price. It is therefore expected that not only will we see high interest among international buyers seeking a second or leisure home with an appealing lifestyle, but that the demand will also grow from professionals and international players relocating their business in Mauritius so as to benefit from the low tax regime prevailing in Mauritius. The planned real estate development coupled with the intrinsic attributes of Mauritius in terms of political stability, booming luxury tourism market, sound infrastructure, make Mauritius a highly-sought real estate investment destination whether for ownership or for buy-to-let schemes. 4.2.3.3 Invest-Hotel Scheme The Invest-Hotel is a scheme designed to allow property developers to sell hotel rooms, villas, suites or any other part of a hotel to individual buyers during and post construction phases.

While this scheme paves the way to facilitate the overall financing of new hotel projects, it offers individual buyers all the facilities of an exquisitely-furnished new luxury resort hotel with amenities like F&B, full-service spas, health and fitness centres, resort-style pools, sophisticated business centres and maid service and the promise of rental income.

The above enhancing features are now available to a wider cross-section of the Mauritian population who previously could not avail of such opportunities. A hotel project under the Invest-Hotel Scheme must be approved by the Board of Investment. On approval of the project, an IHS certificate is issued to the company for the construction of a hotel where units (rooms, villas, apartments or suites) and other parts of the hotel can be sold.

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4.2.4 Mauritius Port Authority (MPA) MPA' s primary objective, as a corporate body, is to be the sole national ports authority to regulate and control the port sector and provide marine services. MPA' s functions and duties as a landlord port are to: y Implement government port policies and keep them under review, and advise government on all matters concerning the port sector, its facilities, services and related issues; y Regulate and control the development within ports in accordance with approved port master plans 4.2.5 Cruise Berth Facilities Port Louis Harbour is endeavouring its best to maintain its newly acquired home-port status for cruise tourism. During the last financial year, cruise experienced a 57.1 % increase with 22 passenger vessels calls whilst the number of passengers grew by 105 % reaching 12,874 in the same financial year. The MPA had embarked on the project for the construction of a dedicated cruise jetty at Les Salines, which will cater for larger cruise vessels, while at the same time enhancing passenger comfort, transfer and safety. The contract for the construction of the Jetty was entrusted to Messrs Afcons ( India) in November 2008. The landslide infrastructural works were completed in January 2010. The total project cost amounts to about Rs. 485 millions. The facility has been commissioned by mid January 2010 when all the works were completed and went into commercial operations since end January 2010. The facility was officially inaugurated on 15 February 2010. It is worth noting that a much larger cruise vessel, Costa Europa, with a maximum capacity of 1600 passengers has been deployed with its maiden call at Port Louis on 18 December 2008.

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4.2.6 Ministry of Environment and National Development Unit

The main concerns of the National Development Unit is the identification and implementation of projects aimed at improving basic amenities, provision of social and recreational activities in Mauritius, particularly in deprived localities and the co-ordination of development projects at national level. This is achieved through a Development programme known as the National Development which includes Construction of link and internal access roads; Construction of drains, Pipelaying for domestic water supply in remote areas, Lighting (placing of poles and street lamps), construction of social buildings such as Community Centres, Youth Centres, Women Centres and Health Centres, and Multipurpose buildings, Sports Complexes including Volleyball Pitches, Football grounds, Petanque courts, Minor Projects including Fixing of

handrails, Construction of Footsteps,Leisure and Parks.

Besides under the umbrella of the NDU operates a network of 35 Citizens Advice Bureaux across the island, having main functions of registration of complaints relating to infrastructure requirements and social services and ensuring follow up with relevant departments. It also exercises responsible influence on development of policies regarding socio-educational, cultural matters and participating in sensitisation campaigns. Moreover, provision of free and impartial information and advice on government services and matters of general interest to the public are also provided

4.2.7 Tourism Authority The Tourism Authority is a body corporate, established under the Tourism Act 2004 and has come into operation on the 12th of August 2004. Objectives and functions of the Authority The Objectives of the Authority shall be: y y to optimise the social, economic and environmental benefits to Mauritius from tourism; to promote a sustainable tourism industry in Mauritius. ~ 31

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The functions of the Authority shall be to (a) formulate such policy and nationally integrated planning for the tourism industry as it may consider necessary; (b) co-ordinate the activities of the various organisations concerned with the tourism industry, both in the private and public sectors; (c) issue guidelines for the development of the tourism industry; (d) supervise the overall operations of tourist enterprises; (e) establish a code of practice and standards for the carrying out or operation of tourist enterprises and monitor compliance with such code of practice and established standards; (f) advise the Minister on the structure of licence fees for the tourism industry; (g) advise the Minister on legislative provisions likely to affect the tourism industry;

4.3

Tourism Development Plan for Mauritius

Tourism in Mauritius is now a major business from which Mauritius benefits. For the future, the theme is to build upon what has already been achieved so that tourism continues to make its irreplaceable contribution (foreign exchange, employment, local incomes) to the Mauritian economy. The Tourism Development Plan presents a twenty year vision which sees the tourism industry growing but ensuring that environmental and social issues are addressed to the benefit of the people of Mauritius. It has been prepared after careful consultation with interested parties and after careful evaluation of the different economic and other factors involved. The market appraisals and the survey evidence indicate that Mauritius should push towards being an even higher value added destination but at the same time broadening its product portfolio in order to regularise and improve the current informal sector. Added to that Mauritius will need to develop an overall Mauritian identity as part of a broadening and diversifying of the tourist attractions and as part of a shift into new market segments. The unique: Mauritian image will overcome the threats from competitive substitutes and the price threat from commodity such as beach

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destinations. Mauritius has to remain special and remain the dream destination. Continuing with a scheduled service only policy is seen as essential to maintaining product standards.

Tourism should be seen as a mechanism for change in the economy of Mauritius and community as a whole. Increasingly, the quality of life is as important a factor in the decision of inward investors. Hence, the standards of leisure facilities, arts venues, retail outlets, eating out establishments and transport options all play their part in making the island an attractive and viable option for new investment. Moreover, the expenditure generated directly into these areas by visitors is vital to their continued survival and development.

4.3.1 Challenges facing the Tourism industry The tourism industry now faces major challenges of a scale that has not been experienced before. These encompass: y y y y y y Climate change, an unprecedented global challenge International financial turmoil Fluctuating oil prices Rationalization of the airline industry Crisis management An increase recognition of the merit of using tourism as a mechanism to directly benefit the poor, via empowerment programmes.

4.3.2 Climate Change If tourism continues to grow as currently, no other economic sector will have room to grow if the world is to remain within the safe limits of climate change. It is not yet clear as to how tourists themselves will respond to the challenge that climate change represents. Research undertaken in UK makes it clear that unless consumers do begin to alter the amount and type of tourism demanded, then more radical steps are likely to be implemented.

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Impacts

Implications for Tourism

Warmer temperatures

Altered seasonality, heat stress for tourists & infectious diseases range

Reduced precipitation & Increased evaporation

Risk for tourism facilities, increased insurance costs & business interruption cost

Sea rise level

coastal erosion, loss of beach area, higher costs to protect and maintain waterfronts

More frequent & Larger forest fires

loss of natural attractions, increase in flooding risk, damage to tourism infrastructure

4.3.3 International Financial Turmoil Given that Mauritius is a relatively high cost purchase from the majority of its originating markets, there could be a downturn as customers switch to lower costs products. The presence of Mauritius in distinctive markets such as honeymoons which are a distinctive purchase may protect the country to some degree. Given that word of mouth remains one the most important reasons why visitors choose a particular destination, it is doubly important for Mauritius to ensure that there are high levels of customer satisfaction.

4.3.4 Fluctuating Oil prices Currently, 80-95% of all transport requires oil products. 50-75% of all oil is used for transportation and tourism relies on transport. Mauritius is no exception. Estimations vary as to when the world will see the peak of oil production, but a growing consensus seems to be emerging that 2011 represents the point by which oil production will be exceeded by consumption and reserves will begin to decline rapidly. Technology is unlikely to be able to produce an alternative to oil in time to meet the gap between supply and demand so the most ~ 34

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likely outcome is that prices will rise in real terms and this represents a strong argument for a Mauritius seeking to retain relatively high yielding visitors.

4.3.5 Rising Food Prices The UN Food and Agriculture identifies food prices as having doubled between 2002 and 2008. These rises are against a backdrop of falling food prices over the previous 4 decades. For Mauritius, catering predominately for consumers with higher income levels, rising food prices are unlikely to have a significant impact on the ability to purchase holidays. Where rising food prices may be more relevant for tourism is in terms of providing the tourism product to visitors especially in relation to imported food. This argues strongly for enhancing linkages between agriculture and tourism in Mauritius and this approach can capitalize on the increasing interest in gastronomy, food governance and supporting local farmers in originating markets for Mauritius.

4.3.6 Rationalisation of the Airline Industry The international aviation industry faces unparallel challenges. This is indicated by the loss incurred by Air Mauritius of Euro11 million in September 2008 compared to a profit of Euro2 million in the same period of 2007. Internationally these challenges result from fluctuating aviation fuel prices combined with currency fluctuations, a weakening of demand and financing demands that face all businesses with heavy capital requirements. The picture is bringing about airline bankruptcies, reduction in service levels and the retirement of older aircraft and mergers of carriers. The cost savings that result place can increase the competitive pressures on airlines such as Air Mauritius. The extended code share arrangements between Air Mauritius and Air France are a response to these challenges. It remains possible that foreign carriers operating into Mauritius could withdraw their services in the way Singapore Airlines did.

4.3.7 Crisis Management The tourism industry has a long history of events that bring about disruption, Chikungunya being one example. Events that threaten tourism largely exist outside the control of the industry, making prevention difficult. However, what is within the control of the tourism industry is the extent of preparedness for a disaster if and when it occurs, and then the way in which the ~ 35

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destination rebuilds itself subsequently. Numbers of international tourists to New York took 4 years to recover to the level of tourism before the September 11th attacks in 2001. Key Requirements in dealing with a crisis are: y y y To establish the facts To tell the truth To get the message out as quickly as possible including use of a countrys representatives abroad

4.3.8 An increased recognition of the merit of using tourism as a mechanism to directly benefit the poor Tourism affects the livelihoods of many of the worlds poor, positively and negatively. The conventional approach to the development of tourism in developing countries has been to focus on employment, foreign exchange generation and tax revenues. Sound governance should mean that tax revenues benefit the poor via government activities such as the funding of education and health services. However, it is only in recent years that there has been explicit consideration of directly benefiting the poor. The main positive impact of tourism for the poor is frequently the creation of economic opportunities, often informal ones. Other positive impacts can include skills development,

enhancement of infrastructure and public health. Negative impacts can include lost access to and spoiling natural resources such as fishing grounds, conflict with other livelihood activities, exclusion from tourism planning and lack of self-determination, cultural intrusion and social disruption. Tourism has potential advantages as compared with other sectors in directly reducing poverty: y y y 4.4 The customer comes to the product giving opportunities to make direct sales Tourism is relatively labour intensive Tourism products can be built on natural and cultural resources.

The Challenges for tourism

There are three primary challenges in the development of tourism on the island : (i) Meeting customer needs (ii) Building confidence ~ 36

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(iii) Ensuring Sustainability

Tourism needs to be aware of and adapt to the changing needs of potential visitors. Studies show that the visitor of the future will be diverse and demanding and typified by the following :y y y y y y y y Increased numbers of older travellers- who will be healthier and richer Increased interest in holidays that promote good health and well being More holidays in which arts, culture and history play a prominent role Continued increase in the use of the internet for searching and booking More demand for destinations with high environmental excellence A continuing trend for shorter holidays because of time pressures Combining holidays with hobbies, interests and learning experiences Increasingly discerning customers who expect and demand quality and value

But, ultimately, the challenge is to Build Confidence o ...in the visitor that the island can meet their needs and expectations o ...in the Public Sector, so that tourism is seen as a credible and effective contributor to the economic, social and environmental well being of the island and to align expenditure accordingly. o ...in the indigenous private sector to regularly invest in their enterprises and human resources and have pride in being an island business o ...in the community that tourism can bring a much higher quality of life through improved facilities, services and opportunities. o ...in potential inward investors to consider the island as a welcoming, dynamic and viable opportunity

And, tourism development must be :Economically sustainable Through creating wealth and improved viability in business and providing better paid and higher skilled jobs. Key to this is reducing seasonality and increasing yield from tourism. Socially sustainable It should result in an overall better quality of life for island residents. ~ 37

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It can provide better retail, leisure, eating out and transport provision and should address where it could assist in resolving issues relating to public realm, congestion and housing problems. Environmentally sustainable It should ensure that the natural environment is conserved and enhanced and be proactive in the minimisation of pollution, energy use and green field development.

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4.5

Objectives for Tourism in Mauritius

Mauritius has a set target at 2 million tourists by 2015. In order to attain this number, a minimum annual growth rate of at least 10% will have to be achieved. A growth rate of 10% means an increase in market share as the world average growth rate was anticipated at only 4.1%, a growth rate likely to be reduced in the light of the international financial turmoil. This means that Mauritius either needs to increase the quality of their tourism product significantly with increased value for money or to lower the prices and focus on increasing volume with vigorous marketing.

Mauritius is not the only destination wanting to significantly increase visitor numbers, aiming for 2 million tourists by 2015. For example Abu Dhabi has set its tourism master plan to aim for 2.7 million visitors by 2012. Others, including Oman are also looking at doubling their visitor numbers. These destinations are all competing for the same visitors and in order for Mauritius to gain market share and reach its target. It is important that they are clearly set and that strategy and actions are put into place to make it happen. The challenge has become all the greater with the impact of the international financial turmoil, with the anticipated increase of 3 3.5% in 2008 against 2007s 15.3% growth in visitor numbers. The objective of achieving a doubling in visitor number is to at least to double the benefits of tourism, i.e. increased employment, foreign exchange, GNP, and a government revenue, and broaden the involvement of the industry. This outcome can be achieved by: y y y y Maintaining the high end thrust Building new resorts with hotels on the coast Invest more in HRD and Marketing Remove infrastructure blockages

The most important requirement is a high level of co-ordination with government and the private sector. This strategy focuses on selective and up-market tourism which will maintain Mauritius as an attractive and desirable tourist destination. It will at the same time minimize the impact on the environment and infrastructure services. Other outcomes can be achieved by: ~ 39

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y y y y

Go for volume Build range of new tourism product Vigorous effort on cruising Promote stop-overs

The most pressing strategy elements to accommodate the anticipated 2 million visitors include: y y y y Coherence of view and delivery Human Resource Development Marketing Infrastructure- desalination, waste disposal, renewable energy

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4.6

Strategic Planning

Achieving the objectives will have to be worked for. The competition is hungry for the business. Mauritius cannot rest on its success to reach the level of two million visitors or at least if it wants to generate new jobs in the industry. If there is a discord on the direction in which to go, if certain issues are not solved, and if little is spent on marketing, it is highly that competitors will take the business that could have come to Mauritius.

Many destinations produce plan after plan without the capability of implementing suggestions. Components of the 2002 National Tourism Development Plan include: 1. A focus on scheduled services 2. A higher value added, higher quality destination 3. Personal service excellence to be a competitive advantage 4. Establishment of a unique destination image 5. A broadening of Mauritiuss product portfolio, with the regularization of informal sector 6. Increased Mauritian involvement in tourism activities

The following detail proposed strategies to deliver each specific goal under the headings: Promotion & Marketing Product Development Human Resource Development Infrastructure Environment and Social Aspect Tourism Framework

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4.6.1 Promotion and Marketing Planning Goals: To ensure a strong Mauritius brand and deliver effective destination marketing to exploit new and existing markets Strategies 1. Develop and communicate the Mauritius tourism brand 2. Increase penetration of existing markets 3. Extend existing product into new geographic markets 4. Identify and develop niche sectors 5. Establish ICT as a critical element in tourism marketing and management 6. Improve gathering and utilization of market intelligence 7. Ensure most effective use of marketing resources 8. Strengthen public/private sector partnerships

To achieve the set objectives, it is vital that Mauritius seeks to achieve the highest levels of marketing excellence. This implies a strong tourism branding, based on an overall national brand. This brand identity needs to be shared across the public and private sectors and should be reflected in all forms of communication if it is to achieve maximum effectiveness. This in turn requires effective collaboration between the public and private sectors. As regards to MTPA, it needs to ensure that it has a three-years marketing strategy that is regularly updated on the basis of consultation with industry stakeholders. This marketing strategy needs to feed into an annual marketing plan based on a clear annual budget. At present MTPA applies for funds on a three monthly basis, but for their activities to be planned effectively a much longer term programme is necessary. There needs to be consideration of long term objectives rather than a focus on short to medium term objectives, enforced by the constraints of the budget. At present the MTPA is funded mainly by government grant. A considerable number of national tourism organizations elsewhere are funded wholly or partially by dedicated taxation. Such an arrangement gives the organization a closer relationship with its funding source and also direct incentives to perform as the more effective they are by and large the greater their income.

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It is highly desirable that the MTPAs budget is increased as well as being placed on a more certain annual basis. The MTPAs budget has been increased from Rs.300 million to Rs.30 million but it still fall short of the UNWTO recommended norm. A mechanism of raising the MTPAs income is to wholly or partially switch to a dedicated tax. A relatively simple way of doing this is to collect a fee from arriving passengers. As it is difficult to distinguish between tourists and residents, this would need to apply to all passengers, the great majority of whom are tourists. A 15 levy per passenger should generate at least 15 million level of income, a significant increase on recent level of MTPA funding, although still falling short of 3% of tourism receipts recommended by the UNWTO as the target for tourism marketing spend. However, in Mauritius, where the private sector is particularly vigorous in playing a role in tourism marketing and promotion, there is a very significant private sector contribution to the overall total. An increase in the MTPAs budget will facilitate greater vigor in the promotion of the Mauritius event programme, a programme that should be aimed at reducing seasonality. It will also facilitate promotion aimed achieving a greater share for Mauritius of the MICE market now that facilities enabling this market to be developed are in place. There should be an effort to further grow specialist markets with good potential. An increase in budget will enable a review to be undertaken of the most effective means of promoting the destination abroad. An aspect of broadening the market place is to facilitate the growth of independent travelers including via ensuing that Mauritius has an appropriate ICT base as well as by ensuring that their needs are met both via information and purchase of product prior to arrival as well as during their stay in Mauritius. This encompasses web marketing including via social networking sites and ensuring that the country has an up-to date web portal. Market Intelligence The Speed of change in external markets, now intensified by international financial turmoil, increases the importance of sound and accurate market intelligence. The Ministry of Tourism undertakes an outgoing survey every two years on visitors perceptions enabling speedy reactions to be made. ~ 43

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Accurate and up-to-date market intelligence of key foreign markets is also essential, intelligence that can be shared with the Mauritian industry. It is also desirable that perception surveys of Mauritius are undertaken to enable marketing programmes to be adjusted accordingly. It is logical that such research should be led by MTPA in conjunction along with the Ministry of Tourism and Civil Aviation and private sector.

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Policy Area

Strategy/Action Lead

Responsibility SupportIndustry stakeholders MTPA Industry Stakeholders Industry Stakeholders Industry Stakeholders Industry stakeholders External contractor Ministry of Tourism

MARKETING STRATEGY AND PLAN BUDGET

Develop a three year tourism marketing strategy and an annual marketing plan Plan for the introduction of a dedicated tourism levy to be the primary source of MTPA Develop and communicate the Mauritius tourism brand, linked into the overall national Increase penetration of existing markets Development of new geographical markets Identification and development of niche market sectors Introduction of product delivery accessed via MTPA web portal y y y Introduction of a continuing visitor perception survey on specific aspects of the tourism Establishment of a perception survey of potential tourist visitors in key originating market to be conducted every two years Circulation of external market intelligence to the tourism industry

MTPA

BRAND DEVELOPMENT MARKET PENETRATION MARKET EXPANSION NICHE SECTORS

Ministries of Tourism & Finance MTPA

MTPA

MTPA

MTPA

INTERNET

MTPA

MARKET INTELLIGENCE

MTPA

MTPA MTPA

Figure 2. Marketing Action Plan

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4.7

Product Development Planning

Goals: To further develop a tourism product that is responsive to the needs of the market and generates high visitor satisfaction Strategies 1. Continued emphasis on a high quality product offering high level of service 2. Diversification of the product offering 3. Retail development of resort centres including in IRS projects 4. Continued enhancement of the cultural heritage 5. Improved quality control with the introduction of an accommodation classification system 6. Customer care training 7. High level of web access

4.7.1 Quality Accommodation Crucial to the strategy is the continued development of quality accommodation and the continued upgrade and refurbishment of the existing room stock. It prove to be that, given the current financial turmoil, the growth in supply might fall below the rate achieved in recent years. It is certainly important that the growth in supply does not outstrip the growth in demand, leading to falling prices and a reduced ability to re-invest in maintaining and enhancing product quality. It is important that as far as possible there is a balance maintaining between demand and supply. With the IRS projects there is greater flexibility in this respect than with relatively large new hotel/resort projects. Small operators may need to be given technical advisory assistance in the improvement of their properties. The tourism Authority can play a role in this direction. Consideration can be given to the development of quality home-stay businesses as well as to near to existing villages, providing they recognize the carrying capacity of the site and are in harmony with the local environment. This village tourism development concept can specialize in providing traditional Mauritian hospitality. The village may also provide facilities and services such as local transportation, hiking, guide services, handicraft production and sales. In coastal areas, boating and fishing can

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be offered. This form of tourism is gaining strength, and given appropriate support can fit well within the overall tourism strategy. 4.7.2 Broadening the Product Diversification of the product offering can be within essential parameter of the current offer. An example is the Shanti Ananda spa resort, offering high quality accommodation but within a highly well being package. Diversification should extend into the natural environment via trail development and the enhancement of the cultural heritage. The Ministry of Tourism is currently working on the re-development of La Citadelle as a tourist attraction and on the development of coastal walkways along the coast of Grand Baie and TrouDEau Douce. The Theatre de Port Louis is being renovated. The Tourism Development Plan proposes a cultural heritage development programme embracing: y y y y Strengthening the marketing of individual sites Enhancing the perception of the heritage tourism product Providing motivation to visit the attraction Encouraging historical preservation and urban regeneration

Broadening of the product portfolio will mean that more tourists will want activities and services outside the hotels. Mauritius will have to be able to provide a better public territory. The retail experience in Port Louis has been improved by the extension of Caudan Waterfront and there have been individual enhancements elsewhere including Grand Baie. The retail offer needs to be enhanced further with as much local character as possible. This is particularly the case for new markets such as Russia and China. Retailing can be linked with other activities, including restaurants, in resort centres developed as part of IRS projects; lack of such resort centres is one of the gaps in the existing product portfolio. Other means of product improvement to be pursued are: y Improvement of entertainment through the provision of support for the local theatrical productions and initiatives; ~ 47

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Incentives to night clubs which conform to guidelines which guarantee safety and a quality experience for Patrons;

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Development of the technical competencies to engender the availability of local souvenir by: o Variety in the design of arts and crafts; o Improvements in the quality of the product; o Ready access to raw materials for craft producers and finished products for vendors, by the setting up of local community markets for the sale of such items like beads, shells, drift wood, carvings, etc., o Research on those products of most appeal to visitors

4.7.3 Quality Control The Tourism Authority is playing a significant role in working towards the enhancement of product quality and in embracing previously informal accommodation as part of the tourism sector. The Authority would benefit from technical assistance in the further development of quality standards. A major step which it is now appropriate for Mauritius to consider is the introduction of a quality assessment scheme that is aimed at the enhancement of physical product quality and also service standards. There are now a number of quality scheme world-wide that it would be appropriate for Mauritius to draw in devising its own scheme. One particular example is the New Zealand Qualmark Scheme. This is a quality assurance licensing system that caters for all forms of tourism business, and which incorporates both accommodation classification and a quality label within a single scheme. It is a government backed licensing system that caters for all tourism businesses in New Zealand. Accommodation is given a star grading and other tourism businesses are given a quality endorsement. The assessment incorporates measures of customer service, the standard of facilities, overall business operations, environmental and cultural considerations, general safety and welfare. A mystery shopper programme is an integral part of the scheme. While the implementation of a New Zealand style scheme can be a long term goal, it would be possible to introduce a quality grading scheme solely for the accommodation sector. This will take some time to plan and to become operational. Technical studies on implementation can be ~ 48

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carried out in 2009/10 with a goal for implementation to begin in 2012 following appropriate stakeholders consultation. 4.7.4 Customer Care While standards of customer care continue to be high in the upper end resorts, there are indications of