Economic impacts of tourism on indigenous enterprises in namibia
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Economic impacts of tourism on indigenous enterprises in Namibia. Julia J änis 26.4.2011. Contents of the presentation. What do we mean by economic impacts of tourism ? Why does it matter with whom we co-operate in a destination ?

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Contents of the presentation
Contents of the presentation Namibia

  • Whatdowemeanbyeconomicimpacts of tourism?

  • Whydoesitmatterwithwhomweco-operate in a destination?

  • Examples of economicimpacts on indigenoustourismenterprises in Namibia

  • Where to findindigenousenterprises?

  • Howcanresponsiblechoices in the globalvaluechainbeused for marketing?


What do we mean by economic impacts of tourism
What Namibiadowemeanbyeconomicimpacts of tourism?

  • Impacts on national economy

    • Taxrevenue

    • Contribution to GDP

    • Share of tourism in allexportcommodities

    • Share of tourism in allemploymentopportunities

       Measuredbyquantitavivemethods (TSAs, SAMs etc.)


What do we mean by economic impacts of tourism cont
What Namibiadowemeanbyeconomicimpacts of tourismcont.

  • Impacts on local and regional economy

    • Tourism as a source of employment (youth women, disadvantaged groups)

    • Tourism and local supply chains

    • Tourism and regional development

    • Tourism and economic empowerment of the disadvantaged /marginalised population groups

    • Tourism and Local Economic Development (LED)

       Measured by quantitatvie and qualitative methods


Why does it matter with whom we co operate in a destination
Why Namibiadoesitmatterwithwhomweco-operate in a destination?

Choice of local partners (accommodation providers, tour operators, other service providers) may have a profound economic, ecological,

social, cultural and political

significance in the destination

  • What choices are required

    for responsible tourism?


Characteristics of foreign owned or privileged minority owned service providers
Characteristics Namibia of foreign-ownedorprivilegedminority-ownedserviceproviders

  • Owners and managers often foreign or elite, other staff local

  • Vertical integration and large chains

  • Possible leakage of revenue

  • Profit created by low wages

  • Tourism products reproduce stereotyped images

  • Better competitiveness than local SMEs


Possible alternative provided by indigenous service providers
Possible Namibiaalternativeprovidedbyindigenousserviceproviders

  • All staff local

  • Co-operation with other tourism SMEs

  • No leakage, revenue benefits large numbers of people through extended family support

  • Possibility to create new and innovative tourism products based on local cultural diversity

  • Possibility for more personal interaction between tourist and the hosts


Potential challenges of indigenous service providers
Potential Namibiachallenges of indigenousserviceproviders

  • Employmentbased on seasonaldemand

  • Lowwages(competition, salarylevels)

  • Lack of customersdue to poormarketing and lack of credibility

  • Employment and choice of

    attractionsbased on

    ethnicbackground

  • Inadequateskills in

    hospitality, financial

    management, productdevelopment etc.



E conomic impacts on indigenous tourism enterprises in namibia
E Namibiaconomicimpacts on indigenoustourismenterprises in Namibia

  • 94% of Namibian tourism enterprises owned by white or foreigners

  • Unemployment level 50%, in many areas 70-80% (especially youth and women)

  • 30% of Namibians live below poverty line

  • Poverty associated with gender and regional inequality, low education, youth unemployment


Economic impacts on of indigenous tourism enterprises in namibia cont
Economic Namibiaimpacts on/of indigenoustourismenterprises in Namibia cont.

  • All revenue invested in Namibia

  • SMEs offer home stays, visits to

    small entrepreneurs,

    communal conservancies,

    community-based tourism

    enterprises etc.

  • Pro-poor supply chains

  • Peer support and co-operation


Economic impacts on indigenous tourism enterprises in namibia cont
Economic Namibiaimpacts on indigenoustourismenterprises in Namibia cont.

  • Economic empowerment leads to social empowerment which is required to combat the apartheid legacy

    • Namibia has the highest income inequality in the world

    • Inferiority complex, lack of self esteem

    • Lack of appreciation for local cultural heritage (arts and crafts etc.)


Where to find indigenous enterprises
Where Namibia to findindigenousenterprises?

  • Marketing and advertising is a major challenge

     Lack of capital and skills

  • Internet, NGOs, sponsored participation in tourism and travel trade fairs

  • Travel guides

  • Brochures

  • Co-operating private

    partners


How can responsible choices in the global value chain be used for marketing
How Namibiacanresponsiblechoices in the globalvaluechainbeused for marketing?

The value chain describes the full range of activities that firms and workers do to bring a product from its conception to its end use and beyond. This includes activities such as design, production, marketing, distribution and support to the final consumer.


How can responsible choices in the global value chain be used for marketing1
How Namibiacanresponsiblechoices in the globalvaluechainbeused for marketing?

  • Responsible choices build up a positive image

  • Concrete benefits of responsible choices can be explained (e.g. employment of youth or disabled, pro-poor procurement, nature conservation)

  • Groups or individuals in the value chain can be included in the travel itineraries (e.g. visit to a women’s group that makes and sells local crafts)


Final remarks
Final remarks Namibia

  • The selection of local/foreign, black/white, large firm/SME is first and foremost a political choice

  • Other values can also determine the choice: ecological, economic, cultural etc.

  • Indigenous enterprises may not inherently be more responsible; they too can be requested for ethical and environmental principles

  • SMEs cannot take the entire market share in tourism


Final remarks cont
Final remarks cont. Namibia

  • Responsible tourism promotes:

    • Fair trade certified tourism enterprises

    • Indigenous tourism enterprises (incl. SMEs and CBTEs)

    • Tourism enterprises committed to ecological and/or pro-poor and/or sustainability principles

  • In other words:

    Tourism that strives to make a difference


THANK YOU! Namibia


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