An Example of Intentional Development

Direct cruise-initiated development activity in Vanuatu can be referred to as intentional development. This includes the example of the CSR-motivated P&O Pacific

Partnership's building of Kalo kindergarten from the previous section. Sections 1e and f of the MOU between Carnival and DFAT relate to intentional development objectives around handicrafts and address two challenges to improving local handicraft sales. 1e states that Carnival will "increase direct sourcing of art work, handicrafts and local produce" and section 1f states that Carnival and AusAID will support the Government of Vanuatu in "establishing an accreditation system for treatment of local products to meet Australian quarantine standards" (Appendix 1). The following section reports findings in relation to handicrafts, another 'hot topic' during field research.

8.2.1 Handicrafts, Markets and Biosecurity

The sale of handicrafts is assumed to be one of the multiplier effects of tourism, but in Vanuatu there are specific challenges to this being realised. Identified as problematic by Niatu in 2006, the lack of multiplier effect was reiterated by Scheyvens and Russell in 2013 and Australian Aid in 2014 (Australian Aid et al., 2014; Niatu, 2007; Scheyvens & Russell, 2013). There are 2 key challenges to the handicrafts issue, one is that

"expenditure flows out of the local economy because of the high proportion of imports sold directly to tourists and also as a component of locally made handicrafts"

There is enormous potential for Vanuatu to start producing appropriate, attractive, biosecure goods to sell to tourists:

I'd love to see P&O investing in economic empowerment programs that make some decent stuff for the tourists... I've lived here for 2-years and I still can't buy anything made in Vanuatu that I would have in my house!

And especially the expat community here, as well as the visiting expat community on the boat, you see them all go up and down this main street [in Port Vila], there is nothing to buy of any value.

You just think there is such opportunity for these women to be taught a skill that actually makes them some decent money, because we will part with our money for that! (Australian NGO Worker, Port Vila, July 2017).

All informants, cruise passengers, and casual acquaintances expressed concern around the importing of generic Chinese souvenirs, transforming Vanuatu's handicraft markets into "more of the same" boring offering you can see anywhere in the world. Vanuatu's unique cultural identity has been largely replaced with "homogenous plastic crap" (Cruise passenger, Luganville, June 2017) as one cruise passenger from New Zealand referred to it. If markets only offer "generic plastic tat" (Cruise passenger, Luganville, June 2017, as British passenger called it, then that is all visitors can buy.

Beyond the lack of authentic Vanuatu souvenirs available for tourists is the problem of profitability. An Australian Aid volunteer, working with markets on Santo, explained that the main problem is the tiny margin made by market mamas selling imported goods. On cruise day mamas can be observed regularly visiting the Chinese shops lining

Figure 19 - Photo of a wholesale 'Chinese Shop' on Luganville's main road. This image shows plastic hair accessories, fridge magnets and plastic beads. Luganville, Vanuatu, June 2017.

The image above shows the kind of products available in a wholesale shop in Luganville, with aisle after aisle of generic tourist souvenirs. Sarongs, shot glasses, fridge magnets, plastic wreaths of flowers, cheap swimming costumes, budget flip-flops, snorkelling equipment, t-shirts and plastic frangipani hair ornaments all lined up and ready for cruise ship day. Informants said mamas sometimes receive goods on consignment, or, buy what they can to sell at a mark-up. Perhaps the concept of globalised deterritorialization (Rankin & Collins, 2016) could be applied to the marketplace as 'local markets' around the world become indistinguishable from one another? In this case, the assumption that increased shore spend by cruise tourists will generate development requires scrutiny.

An alternative is increasing production of locally made handicrafts. This could promote interisland trade and prevent leakage of market profits overseas. The image below (Figure 20) was taken in a boutique store in Port Vila. This shop only sold locally sourced goods, and the owner had adapted local designs to the western aesthetic by adding cloth linings to baskets and additional decorative elements. These products sold for a much higher price than the baskets in their unaltered state. However, the baskets in their natural state are beautiful, well made and when sold to tourists the value of the labour is fully realised, these sales being far more profitable to Vanuatu.

Figure 20 - Examples of handcrafted Ni-Vanuatu bags and souvenirs. Port Vila, Vanuatu, July 2017.

One of the key issues impacting the local souvenir industry is biosecurity. A major motivation for passengers to buy plastic souvenirs is because they are confident they can bring them through customs in Australia or New Zealand. This problem is known to MFAT, DFAT, Carnival and TVET. Additionally, the Pacific Horticultural &

Agricultural Market Access Program, or PHAMA, has been involved, with Carnival reporting:

...we've done a lot of work with PHAMA with the local handicrafts, we've just got a video that’s been produced and released in the Solomon Islands that details the importable items and what you have to declare etc. Taking a bit of the alarmist feeling out of the current quarantine messaging.

...we have also got the glass cabinets on the ships that show examples of the products, so that people can see what it is [referring to biosecurity display]. First of all, it’s a marketing tool, to show what’s available on the shore, but it’s

secondly, what's importable and what's not.

...PHAMA have helped us conduct a demand study, for what the guests are looking to purchase ashore, so we did that in association with IFC as well. (Michael Mihajlov, Carnival Destination Director, Interview 09 August, 2017).

Although Carnival are taking this issue seriously, from time spent at the Sanma tourism information desk at Luganville and Champagne Beach it was clear that passenger understanding of biosecurity regulations remains very limited. This is an important challenge for Vanuatu, Carnival and development agencies.

Handicrafts offer huge potential for inter-island trade, women's economic empowerment and increased direct spend by tourists (Department of Foreign Affairs and Trade, 2017; Ministry of Foreign Affairs & Trade, n.d.; PHAMA, 2015; PIR Editor, 2017).

A study carried out by a local consultant indicated that Vanuatu’s handicraft sector is worth around Vt1.3 billion [US$12 million].

It further indicated that a reduction of 20% of imported handicraft/souvenir products substituted with an increase in local production would generate Vt100 to 200 million [US$930,000 to US$1.86 million] in revenue in the rural economy. Port Vila alone has over 500 market vendors.

Handicrafts should be a huge economic multiplier for Vanuatu but in this case intentional development initiatives are required. MFAT, DFAT and PHAMA are all supporting initiatives to increase Vanuatu's handicrafts sector. Carnival has a part to play, particularly in educating their passengers so that they can contribute to improving the sustainable economic benefit of locally produced handicraft sales in Vanuatu.