The Effects of tourism on a third world country: A Case Study - Guyana

Rochester Institute of Technology

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1997

The Effects of tourism on a third world country: A

Case Study - Guyana

Monetta Edwards

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THE EFFECTS OF TOURISM ON ATHIRD WORLD COUNTRY

A CASE STUDY- GUYANA

by

Monetta CeronneEdwards

Aproject submittedto the

Facultyofthe Schoolof_Food,HotelandTravelManagement at

Rochester Instituteof_Technology

inpartial fulfillmentoftherequirements

forthedegree

of

MasterofScience

ROCHESTER INSTITUTE OF TECHNOLOGY School of Food, Hotel and Travel Management

Department or Graduate Studies

M.S. Hospitality-Tourism Management Presentation of ThesislProject Findin2s

Name: Monetta Edwards Date:6/l5/99SS#: _

(Chairperson) Title of Research: The Effects of Tourism on a Third World- Country

A Case Study -- Guyana

Specific Recommendations: (Use other side ifnecessary.)

Thesis Committee: .(1) Dr. Richard Marecki

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OR (3) _

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cc: Departmental Student Record File - Original Student

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TABLE OF CONTENTS

CHAPTER 1 PROJECT PROPOSAL

Introduction 1

ProblemStatement 2

Background 2

Purpose 3

Significance 3

Methodology 3

Hypothesis 3

Assumptions 4

ScopeandLimitations 4

Procedures 4

LongRange Consequences 5

DefinitionofTerms 6

CHAPTER2 LITERATURE REVIEW

The StatusandFutureofTourism 7

The EvolutionofEcotourism 8

The Resources Neededto_DevelopTourism 9

The EffectsofTourism 12

CHAPTER 3 THE TOURISM INDUSTRY

TheStatusandFutureofTourism 15

TourismintheCaribbeanandSouth America 16

Socialismto_Democracy 17

Tourismin Guyana 19

The EvolvementofEcotourism 23

The Resourcesfor_DevelopingTourism 25

3.01 Investment 26

3.02 _Training 37

3.03 Travel_AgencyConnection 40

MarketingtheTourism Product 42

The EconomicEffectsofTourism 44

TheSocio CulturalEffectsofTourism ₅₄

TheEnvironmental EffectsofTourism ₅₉

CHAPTER 4 RECOMMENDATIONS AND CONCLUSION 65

INTRODUCTION

The land_ofmanywaters. The land_ofsixpeoples. Thisland is_Guyana,theoften

forgotten_countrylocatedontheNortheastcoast ofSouthAmerica. Guyanais bordered

bysuchworldrenownedcountries asVenezuelaonthewestandBrazilonthesouth and

southwest.

Thenatural_beautyfoundthroughout thecountry's 83,000 square mile areais

lavishedand appreciated_byboth its inhabitantsandthosewhohave hadthegood fortune

tovisitthisbeautiful land.

However,the_beautyofthislandremains a_mysterytomost people aroundthe

world. Guyanafor_manyyears,since_{gaining independence}fromtheBritishin_1966,has

beenstigmatized_byitssocialist policies. Thegovernment'sfirmcontrol of allthe

industries droveout anddiscouraged_manydomesticandforeign investors. Thecountry's

economywas crippled. Foreign investment becamealmost non existent andimports far

exceeded exports. _{Guyana steadily became}one oftheworld's poorest_countries, with a

dim future.

Yetthereremained some optimisticindividualswho sawthepotentialforthe

country's revitalization. AfterthedeathofthesocialistPresidentin _1985,thenewleaders

havesince abandonedthesocialistpolicies andin itsplacehaveadopted seriousfree

marketones.

Tourismisa vital resourcefor_manycountriesin South Americaandislands

throughouttheCaribbean. Destinations _{includingBrazil, Argentina,}Jamaicaand

Barbadoscanaccountformillionsofoverseas visitors year after year. Thesedestinations

boast_{sandy beaches,}bluewater and a_varietyofcultural and ethnic activities arranged

and availabletoentertaintheholidayers. _Bighotelchains have investedand manage

marketedtheirlandandhaveasaresultprofited_greatlyfrom it.

Why shouldGuyanabe leftout ofthisprofitable venture? Guyanaboasts_many

ofthosesame attractive attributesandthensome. Guyana hasthepotentialtobeone of theworld'smost wanteddestinationspots.

Problem Statement

Guyana, once adestination_unknown,is intheprocess of_revitalizingitstourist

sector. What implicationswouldthisrevitalizationhaveonthecountry's fragile but

strengtheningeconomy?

Background

Guyana, a small_{English speaking country located}inSouth_America,is home to

approximatelyeighthundredthousandpeople. Guyanaenjoys an equatorial climate. Humidityis tempered_bythe_steady seabreezefromtheAtlantic Oceanwhichbordersthe

countryonthenorth. Positionedbelowsealevel, Guyanaremains one ofthe_only

countries notaffected_{byhurricanes,}tornadoesor_earthquakes, which are naturaldisasters

prevalentin its surroundingneighbors.

The country boasts beautifulsights, includingKaiteur Falls

-theworld'shighest

single_{drop waterfall, lakes,}and_manyother memorablelandmarks. HoweverGuyana

remains one ofthe_onlycountries intheSouth American- Caribbean

regionwhoseland

isnot marketed or_adequatelyequippedto entice overseas visitorsto its land.

However,afteryears of_havinga crippled_{economy, there} has beenarecent

resurgenceinthetourist_economyinGuyana. Thoughthevolumeisnotas significant as thatinthe surroundingcountries/_islands,the slightincrease intouristvisitstoGuyana

Purpose

Thepurposeofthis_studyisto evaluatetheimpactoftourismrevitalization on a

developingcountry's_(Guyana) economy. Theresults ofthisevaluation willthenbe

presentedto the_Ministryof TradeandTourisminGuyana. This informationwouldbe

useful forthe_Ministrytodeterminewhat needstobedoneto_developthe tourismsector

inthecountry.

Significance

A 1995 studyconducted_bythe World TravelandTourismCouncilforAmerican Expressfoundthat_bytheyear2005 the tourism_industrywill providejobsforalmost350

million people world-wide. As this_industryexpandsit becomes criticaltoexamineboth theshort and_longtermeffectsitwouldhave onindividual

countries'

economies.

Countriesthat_currentlyprofitfromthisphenomenon_{already have} anindication

astohowthisexpansion affectsthem. Howeverthereare some economiesthatdonot

currently profitfrom_tourism, andit is only fairthat_theytooshould shareinthis

profitable venture. But_theyshouldbeaware ofhowthis_{profitability}would affecttheir localeconomies. This studywillfocuson oneofthesecountriesand will examinethe

effectsthattourismwouldhaveonthecountry.

Methodology

This studywill usedescriptiveresearchinthepresentperspectivetoexaminethe

impactoftourismon athird worldcountry'seconomy.

Hypothesis

This studywill uncovertheeffectsthat tourismwouldhaveon_Guyana, athird

expectedthat this_studywill provethat tourismwillhavea positiveimpactonthe

economyinthelongrun.

Assumptions

Ideological: Itisassumedthat thisstudywilldeterminethatincreasedtourismin

Guyanawill providejobsboth_directlyand_indirectlyto_individuals, improvethestandard

of_livingof_individuals, increasethewealth ofthe_economyasaresultofincreased foreignanddomestic investment.

Procedural: This_studywillgatherinformation from_secondarydatawhich will reflect

trendsinvacation visitstoGuyanaandits_surroundingneighborsover athree tofiveyear

period.

Itisassumedthat thisinformationwillbetrueand accurate since itwas collected

and compiled_byreliablesources. Thedata isexpectedtobe freeof_{any biases.}

Scope and Limitations

This studywill concentrate onthe_{economic, socio-cultural,} and environmental

effectsthat tourism_{may have}onGuyana. Emphasiswillbeplaced on _invitingforeign anddomestic _investment,employee_training,and_maintainingtieswiththe travel_agency

community,as a means of_determiningtheseeffects.

This studywillbelimitedtohard dataprovided_bytheTouristBoardsofthe

individualcountries andislands.

Procedures

Thepopulationofthis_studywillbeallthose individualsandcompanies who

either visitedGuyanafrom foreigncountries, liveor operatebusinesses in_Guyana,or

The independentvariablesinthis_study arethosefactors_{(infrastructure,}foreign

anddomestic_investment,employee_training,andtravel_{agency connections)}neededto developthe tourist_economy inGuyana.

Thedependentvariableistheeffect_{(economic, socio-cultural,} and

environmental)thosefactorswouldhaveonthe tourism_industryin Guyana.

Consequentlythe_interveningvariable wouldbethe_abilitythe_Ministryof Tradeand TourisminGuyana hasto_objectivelyusethefindingstofurther_developthe tourist

economyincountry.

Whenallthedatais_compiled,ananalysis_of,thestatedhypothesiswillbe_done,

anditisexpectedthat thefindingswillbe inaccordance withthathypothesis.

Long

Ifthefindingsofthis_studyareinaccordance withthe_hypothesis,then the

MinistryofTradeand_{Tourism may}utilizethesefindingstoimplementplansfor improvingthetourist_{economy in Guyana.}

Howeverit ispossiblethat theeffects of_developingtourism_{in Guyana may be}

negative,andthe_{Government may be}reluctantto spendthe_{necessary money}to

revitalizethe_{economy in}thisarea. Shouldthisbethe case, theGovernmentofGuyana should re-evaluatethisoption and recognizethat the tourism_industryisthewave ofthe future,andthoseeffects_mayresultinpositiveones inthe_longrun.

Definition ofTerms

GUYANA (gee-yah_'-null) An Amerindian(American_Indian) word_{meaning "land}of

many

waters,"

becauseofthe_manyrivers and creeks whichcriss-crossthe land.

THE LANDOFSIX PEOPLES- A

multi-racial population.

ECOTOURISM-_{Tourismgearedtowards theadventurous. Highlights}ofthesights are

basedonthenatural environment.

THIRD WORLDCOUNTRY-_{Anundeveloped}

countryoftheworld.

MINISTRY OF TRADE AND TOURISM- A

CHAPTER II

LITERATURE REVIEW

Thisprojecttraces tourismandits development in_Guyana,anunderdeveloped

nationinSouth America. _Identifyingtheeffectsthatthis_industrywillhaveonthe

country's_economyisthe_underlyingpurposeofthisproject.

Themajor sectionsofthisprojectincludethestatus andfutureoftourisminthe

CaribbeanandSouth_America;theevolutionof_{eco-tourism; the}resources neededto

developtourism;and_finallythevariouseffectsthat tourismhason a country. _Following isadescriptionof thesourcesforeachsection. Eachsection will_identifyspecific works

usedfor_{this project,} and willalsodemonstratehowtheseworks setthestageforthefinal

analysis.

TheStatus andFuture of Tourism

Itis importanttohavesomeideaasto thestatus andfutureoftourism. With

tourism_beinga new ventureforGuyanahowcoulditbecertainthatit isa right areafor

the_countrytomoveinto. Since Guyanais intheCaribbean- South American

regionit

was applicableto_studythe status andfutureoftourism _specificallyto thisregion. The intentofthisprojectisto showthat tourismwouldbealucrativeand profitable venture

for Guyana'seconomy, itwasthus_necessarytoexplorethestatus andfutureoftourismin

ordertomakethisproposalfeasible.

Theworks usedtoresearchthisarea gave a_varietyof opinionson where we are

inthe tourism_industry and wherewe areheaded. The TourismAssociationofGuyana

(TAG), inconjunction with_TonyThornepresenteda paper "Tourism

-MakingIt Work

thoseareas wherefurtherimprovementisneeded.

The World Travel &TourismCouncil ₍₁₉₉₅₎generatedstatistics onthenumber

of people_travelingto specific_countries,andbasedontrendswere ableto give

projections onthenumbers for futuretravelpatterns. Statisticsonthenumber and

descriptionoftourists toGuyana fortheyears 1992to thefirsthalfof1995was provided

bythe_MinistryofTradeandTourisminGuyana. Statistics abouttouriststo_surrounding Caribbeanislands was provided_byTheCaribbean_Community (CARICOM).

Therewasalso a review of some work written abouta_countrynot unlike

Guyana. Thisworkshowedsomeparallelsbetweenthe twonations. FrancoiseL. Simon

(Spring 1995)wrote an article fortheColumbiaJournalofWorld Business. "Tourism Development in Transition Economies- theCuba

Case,"whichtracedsporadic

movementsintheCubaneconomy. Thearticleillustrated howthisnationis embracing

tourismandtheimpact it is_havingonthedomesticeconomy.

The Evolution ofEco-tourism

Asa resultof_changingconsumers'

tastes,therehas beenan emergence of a new

typeoftourism. Ecotourismcatersto thenature_lover, who enjoys andappreciatesthe

diversityof cultures andthenatural environment.

Basedontheecological_makeupofGuyana it isevidentthat this type oftourism

ismore suited. Itisthus _necessarytoexplorethisphenomena called ecotourism. With

thisresearchin handthenatural progression wastoexamineGuyana's attributes

attractions, whichare suitedforthis typeoftourismtosee whethertheimplementationof ecotourism wouldbe feasible.

Donald Sinclair (June ₁₉₉₅₎presented a paperto theAmazon Co-operation

legitimizesthe_necessityfor Guyanatobecome involvedwiththis trend. Thepaper

highlights Guyana's facilitiesand .

TheResources Neededto

_Develop

Manyelements areinvolved beforeatourismproduct couldbe deemedsuccessful

in_anyeconomy. Whetherthedrawtoatouristspotisabeachwithbluewater and white

sand, or anAfrican_safari,manyresourceshavetobe inplacebeforethisproductis ready

forsale.

Withtourism_beinga_relativelynew_industryforGuyana itmustbemade certain

that theresources neededto_developtheproductareinplace. _{Investment, Training}and Travel_Agency Connectionsareidentifiedasthemajor resources neededto_develop

tourismin Guyana.

Followingis adescriptionofthesourcesthatidentifiedareas whereinvestmentis

necessaryandthose thataddressed various proposals which weredevisedtoattract investmentto thecountry.

Hotelsare_takingadvantage ofthe trend Ecotourism. In_{the article, "Off}the Beaten Path:An Independent Resort OperatorandHilton InternationalGo

'Undercover'

toAttracttheAdventurousTourist,"

(Hotel & Motel_Management,

September_{6th, 1993)}wediscoverthatHilton is _investinginthis_direction,and_profiting

greatlyfromit.

Ina paper preparedfortheHeadsofGovernment SummitonTourismand_Trade,

concern was generatedforthe_declininghotelprofitability. Thispaper, _"Restoring HotelProfitability,"

(Caribbean Tourism Organisation _{[CTO] #2, 1995)} identifiedareas

which would_helprevitalizehotel_{profitability, including} incentivestoinvestandhuman

Tofurthersubstantiate_{this concern, the}CaribbeanHotelAssociationdevelopeda

proposalwhichwas alsosubmittedattheHeadsofGovernmentSummit. Thisproposal,

"FromCrisisto_{Competiveness,}"proposedthatthehotelsectorbe designatedaStrategic

Export_Industry,whosecompetitiveness and growth shouldbe deemeda national

economic priority. Thisconcern materialized afterthehotelsintheregionstartedto

experience significant competitionfromthecruise _shipcarriersthatdockedonthe

Caribbeanshores. Inan efforttooffsetthis_issue,theproposalhighlightedbenefitsto

hotelierstoinvestand/or continuetoinvest intheregion.

Adraftwas preparedfora_treatybetweentheUnited StatesandGuyana

/Governments. Inthisdraft, a_strategy wasdevisedtoconvinceinvestorsthatGuyana is

an attractiveinvestment location. Various incentivemeasures were suggestedtomake

thisfeatpossible.

SimilarlyDr. Ivor_Mitchell,theDirectorofGO-INVEST(a Guyanese interest

groupset_uptoencourage_investment)wrote anarticle, "Guyana Office forInvestment,"

fortheInternationalCorporate Bankingmagazine. Thisarticleidentifies investorsthat

have already invested intheGuyanese_economy, and emphasizesthebenefitsthat these

investorsenjoy.

Inanotherarticle, "TradeandInvestment Opportunities in Guyana-Analysis

and_Prospects,"writtenfor The_SundayMirror. Dr. Mitchelloffers more reasonsto

investintheGuyaneseeconomy. Healsocoverstheeconomic changesthathave

occurredinthe_economyandthenewtradeandinvestmentpolicies_necessaryas a result

ofthesechanges.

There are several alternativesthat_investors,whether prospectiveor_current,could

consider. Jointventures and_marketingalliancesare a couple ofthese alternatives

reviewedin "Monterey Cities Forge AlliancetoPromote Tourismon _Peninsula,"

writtenfortheApril8th, 1995issue ofThe Economist.

Previously,theincentivestrategiestoinvest inGuyanawere written_bylocalsin Guyanawho_mayhavehadpredisposed biases. _Thus,itwas_necessaryto solicit

information frommore objective sources. The CHL_{Consulting Group} of_Dublin,Ireland

prepared an "Investors' Guide"and a "Prospectusfor DonorAgencies,"asa case _study

fortheGovernmentofGuyana. Thepurposeoftheseworks wastogive an objective

overview ofthestatus of_{Guyana's economy}and_identifythecosts andbenefitstobe had should one wanttoinvest inthecountry.

InformationaboutGuyana'spresent economic_{status, including}moniesborrowed frominternational banks was gatheredfromseveralsources_includingthe 1994 Annual ReportfromtheInter-_{American Development Bank. The 1994 ReportontheEconomic}

andSocial Progressin Latin Americaalso served as a sourceforthisinformation.

Followingisadescriptionofthesource used forthesection ontraining. The CHL_{Consulting Group} insinuatedthat the_qualityof servicesinGuyanawasindireneed

ofimprovement. Inadetailed_proposal, "Manpower _{TrainingProgramme,}"the_group identifies waysinwhichthis_{improvement in quality}servicecanbeaccomplished.

Inreferenceto thesection ontravel_agencyconnections, J C Holloway'sandR V

Plant's_MarketingFor Tourismisuseful. Thisbook discussedthevariousoptionson howtoencourage and maintaintravel_agencyconnections. The Caribbean Tourism

Organisation_(CTO)prepareda paperforthe 1995 CaribbeanHeads ofGovernment SummitonTourismand_Trade, "Overview oftheMajor Tourism _Trends,Issuesand

The Effects _{of Tourism}

Whatdoestourismdoforacountry'seconomy? Noonedoes_anythingwithout

reason. The bottomline isthatwe wanttourism tobea successful venturein_Guyana,

butwhateffectswouldit haveontheeconomy? After reviewingdozensof works onthe

topic thegeneralconsensusisthat therearethreemajoreffects oftourismon_any

economy. Eachoftheseeffectshad its benefitsandeachhad itscosts. _Economic,

Socio-cultural,andEnvironmentalarethemain effectsoftourismwhich willbediscussedin

thisproject.

Ina 1995_document, "Caribbean Travel & Tourism-_{ANew Economic}

Perspective"

prepared_bytheWorld TravelandTourismCouncil_(WTTC),theeconomic

impacttourismwouldhaveontheCaribbeanregionis_brieflydescribed. _Similarly,inthe

July25th, 1994issue ofHotel & MotelManagement,anarticle, "Leaders Link South

Africa's_Prosperityto Tourism;"intheJune6th_issue, "Tobago Expects Tourismto

SpurEconomy;"

andtheNovember _1st, 1993 _issue, "World'sNo. I Employer:_Study

Shows Economic Impact of Traveland_Tourism,"allthreearticles make referenceto

theeconomic impactthe_industrywouldhaveon_{the economy,individually}and

collectively.

Thepaper presentedto the 1995HeadsofGovernment_{Summit, "Overview of}the

Major Tourism _Trends,Issuesand _{Recommendations,}"detailedeconomic and

environmentalimpacts oftourism. Italso evaluatedthefutureofthe tourism_industry,

andhow itwould affecttheCaribbeanregion.

Enid E. Bissemberwrotean_{interestingpaper, "Assessing}Tourism'sCostand

Benefits- A Regional Perspective. "

Thispaperwas presented attheNational

ConferenceonTourism in Guyanain 1993. TheauthorlookedattheCaribbeanas_being

domesticincome, an assessmentwasthenmadeonthecost andbenefitsthistransition

wouldhaveonlocaleconomies.

AtthesameconferenceDr. DerykBernardpresented asimilar_paper,butwitha

geographicalfocus. His_paper, "Regional_{PolicyAspects of TourismPolicy}in

Guyana,"examinedtheappropriateregional_policyconceptsand relatedthem to the

explicitandimplicitspatial aspects oftourismdevelopmentin Guyana. Dr. Bernard

premisedthat tourismdevelopmentresultsinspatialinequalities.

Inthebookstheauthors eachhadtheirownpersonaltakeontheeffectstourism

wouldhaveon a_developingnation. Thoughthematerial was_verysimilar,each work

had somethingvitaltocontributeto thisproject.

In Alister Mafhieson'sand_GeoffreyWall's Tourism:economic,physical and

social_impacts, reference was made_{to the economic,}physical and social costs oftourism.

ItwasfromthisworkthatIusedtodescribethenegative socio-cultural effectsof

tourism.

In Global Tourism: Thenext_decade, edited_byWilliam _Theobald,therewas

strongreferenceto thesocio-cultural effects oftourism. Therewas anentire section on

theeffectsthat tourismwouldhaveonthehostnatives. Thisarea was_very important to

thisprojectsinceGuyanahasanindigenousrace whichisattherisk of_{becomingextinct,}

andit ishopedthat tourismwould preventthisfromoccurring.

IntheDecember 1993 issueofMeetings&Conventionthe article, "Cultural

Tourism Comes ofAge in the_Outback,"explorestheAboriginaltribesin_Australia,and

thecontribution_theycould maketothe tourismindustry. Thisarticle willbeused

synomenouslywiththeAmerindiantribesin Guyanaandthecontribution_they could

maketo Guyana'stourismindustry.

Inhispaper, "GuyanaasaHealth TourismDestination- Infrastructure and

Economic_Costs,"_{Dr. Rudolph O. Cummings}

withinGuyana'stourismproductwhichwouldleadto theimprovementofthe_qualityof

lifeof everyone_livingand_visitingGuyana.

Inadditiontoeconomic_{profitability}and socio-cultural_{effects, there}are other

effectsoftourism. Inhispaper "Environmental Effects ofEcotourism,"Dr. I. Ramdass

explored severalsocietiesthatcaterto theecotourist. Dr. Ramdassidentifiedseveral

negativeimpactsthatresultfromactivities_involvingecotourism.

Policies for_MaximizingNature Tourism 's EcologicalandEconomic Benefits

by Kreg Lindbergdiscussed_primarilytheenvironmental effects oftourism.

Tourismisa cruciallinktoworld wide prosperity. Developedcountriesrepresent

onlypart ofthechain while_developingcountries completesit. Guyanaisneededto

contributeto thisintendedprosperity, thusevery angle mustbeanalyzedtomakeita

reality. In Part_III,themajor sections described_{above, including}several smaller subsets

willbeanalyzed ingreatdetail. Itistheintentthatattheend ofthisproject people would

beencouragedtoinvestand visitGuyana. Furthermoreitisof utmostimportancethat the

GovernmentofGuyana_fullyunderstandsall aspects of_{the tourism product,including}the

resourcesneededto_developtheproduct and_especiallytheeffects: _economic,

socio-cultural,and_{environmental, that the}developmentoftourismwouldhaveonthecountry.

Attheend ofthisprojectit is goingtobeevidentthatGuyana has attractive

attributesthatwill supporta_topnotchtourismproduct. Sotheefforts ofthisprojectto

entice visitorsand_investors,and generate an awarenessto theGuyana Governmentabout

CHAPTER III

THE STATUS AND FUTURE OF TOURISM

Tourism is:

"A study ofman_awayfrom hisusualhabitat_ofthe_industrywhich respondsto his

needs, and_oftheimpactsthatboth heandthe _industryhave onthehostsocio-cultural,

economic, and physicalenvironment."

(Jafari, 1991)

Manhastraveledsincethe_beginningoftime. Inthepast quarter of_century, as

theconcept oftravelevolvedtowhat weknowitas_today,this_industry(traveland

tourism)has beenabletoovercomethreatsfromrecession, stagflation and even internationalunresttobecometheworld'slargestindustry.

Theexplosivegrowthin internationaltourist travelismeasured at 160million

peoplein 1970to500millionin 1994. Itisexpectedthat thisfigurewill reach937 million_by2010. The increased demand fortravel is_partiallya result of people_resisting

governmental constraintstotraveland_{seeing it(travel)} as arightand not a privilege (World Travel & Tourism Council _[WTTC], 1995).

Amoreapparent reasonfor increased_travelingcanbeattributedto thechanges in

thedemographicstructuresand social patterns ofthepopulations ofboththedeveloped

andlesserdevelopedcountries. The agingof_{the populations;} increases inthenumber of

workingwomenandthe two income_households;the trend towards latermarriages and families;increasedpaidvacationsand moreflexible_{workinghours,}are afewofthose

changeswhich afford peoplethe_time,inclinationandincometo travel(Caribbean

Tourism Organisation _[CTO]# _1, 1995).

The impactoftourismoneconomies world-wideis_phenomenal,andthis _industry

Tourism in the Caribbean and South America

Historically,theCaribbean islands and countriesinSouth Americahave been

knowntoattract millions oftouristsfromaroundtheworldeachyear. Thenumberof

peoplewho visittheselands is _staggering,buttheeconomic effects_(moneywise)have proventobeeven moreimpressive.

Forthepurpose of_{this study,} datawillbegatheredfortheyears 1990through

1994. Sincethe _industryisa_relativelynew oneforGuyana,_limitingthe _studyto trends inrecent yearsseemstobea goodbarometer.

Following aredatacompiled_byvarioustourismboards_tracingthe tourism industryinselectedislandsand countriesintheCaribbeanandSouth America

respectively.

TOURIST ARRIVALS IN SELECTED CARIBBEAN DESTINATIONS

(in_thousands)

1988 1993 1994

ARUBA 278.0 562.0 582.1

BAHAMAS 1475.0 1488.7 1516.0

BARBADOS 451.5 396.0 425.6

CAYMAN ISLANDS 218.7 287.3 341.5

CURACAO 155.2 214.1 226.1

JAMAICA 648.9 978.7 976.6

PUERTO RICO 2280.5 2856.6 3042.4

ST MAARTEN 479.7 520.2 585.7

SURINAME 21.1 30.0 NA

TRINIDAD

& TOBAGO 187.7 248.2 265.6

TURKS & CAICOS

ISLANDS 47.1 66.8 70.9

US VIRGIN ISLANDS 555.5 561.2 683.0

Socialism To

_Democracy

FormerlyBritish_Guiana,Guyanabecameindependent fromtheBritishon_May

26th, 1966. Lynden ForbesSampsonBurnham becamethefirstPrime Minister (later Executive_President) ofthenation and served astheleaderuntilhisdeathin 1985.

Throughouthis_leadership,Comrade Burnhamgovernedthe_countryasaSocialist Republic. Thecountry'sname was_officiallychangedto theCo-operative Republicof

Guyanaon_{February23rd,} 1970.

AsaSocialist_Republic,all ofthecountry's publicutilities_{(telephone,electricity,}

water, etc.), schools,specialinterestorganizations_{(healthcare,tourism,etc.)}were

managedundergovernment'srule. Exceptfortradeunions whichprotectemployees' rights,alldecisionsand policies were made andinstituted_bytheGovernment_(Ishmael, Dr. _Odeen, 1995 #2).

Upon Cde. Burnham'sdeath his successorPresident Hugh Desmond Hoyte started

todispelthesocialist policies and replacethemwith moredemocratic free-marketones

(Ishmael, Dr. _Odeen, 1995#1). Throughouttheworld similar moves were_beingmade. For_{example,Germany}andRussiadispelledtraditional communist policiestoadopt more

freemarketones. Thistrendmadethesenations,includingGuyana,economies with futures.

Duringtheyearsofhisleadership,President Hoyteinvited investorstoinvestin

thenation's economy. Theprivatization of several_{industries, including}

telecommunications, signaledthe_beginningof a new era_(Ishmael, 1995#2). The

economicturnaroundwas_underway, butthechangeswereslow. Thepeoplegrew despondent,and in 1992_they elected a new_President, Cheddi_Jagan,aknown

communist. However,duringhiscampaign,Mr. Jaganpromisedtoupholdthefree market policiesinstitutedbyPresidentHoyte(Ishmael, 1995#1). Truetohisword

investors,both foreignand_domestic,havemaintainedtheirinvestmentsupportinthe

country.

Investment inthecountry'straditional'export'industries _{(rice, sugar, gold,}

diamonds and_bauxite)has beensignificant.

Inrecent_{years, the}country'sleaders have becomeinterested in makingtourism a

major exportindustry. Thoughtourismhas been identifiedas anexport_industryinthe

past,its impactonGuyana's economyhasbeenminor.

Awareofthemajorimpactthe_industryhas hadonits_surroundingneighbors, the

country's leaders feltthat this_industry couldbea vital_resource,worth_investing in,for

thecountry's _growingeconomy.

Inthe past,Guyana has dependedonagriculture, forestry,fisheriesand minerals

tosustainthecountry's economy. Theseindustries,withsugar,rice, bauxite, and gold

beingthemain_exports,provided wealthforthe_countryandisthe country's major

generator offoreignexchange.

However,thewealthgenerated_bytheseindustries hasnotbeensufficienttoget

the_countryout ofits_heavyexternaldebt. Atmid _1995,thedebtstoodat$2.2_billion, an

exorbitant amountforsuch a small_{country (Cooper Kauffman Ltd. [CKL],} 1995).

Asa_result,Guyana has hadto turn tonon-traditionalsectorsto_helpgetthe

countryoutits_{mounting debt. Theindustry}whichholdsgreat promise of_{accomplishing}

thisand would generatethemuch neededforeignexchangeistourism.

In Guyana's surroundingneighbors, tourismisan_already established_industry,but

forunknown reasonsthis_industrywasleftunexploredin_{Guyana, leaving}thesecrets of

thisbeautiful land biddenfromtheeyes ofthewouldbetourists.

Recently,thegovernmentofGuyana decidedto_tapintothisunexplored_market,

andhassince startedtodevelopthissector.

butthegovernmentisoptimisticthat thisventurewill_somedayachievethatgreatheight.

However, forthis_industrytobecomea milliondollar_success,it isimportantto

examinewhatGuyana hastooffer. Inthe_followingsectionanin depth descriptionof

Guyana'sphysicalattributeswillbeundertaken.

Tourism in Guyana

Guyana isa_countrywhere_hospitalityis infectious. Thecountry's_attributes, from

itsarchitectureto the_diversityofits inhabitantsprovideforthetouristan unforgettable

experience.

Discovered_byChristopher Columbus_duringhis 1492voyage, theGuianalands

wereinhabited_bynativeIndians(Amerindians). The_historyoftheselandsinthe_early

yearsis_unclear,anditdidnotbecomerecorded until 1580 whentheDutchgained

control ofthelands fromtheSpanish. The Dutchset_up a_tradingpostin_{the region,}and

theland becamea_boomingmetropolis ofitstime. Even Sir Walter Raleighvisitedthe

landinpursuit ofthefabled Lost_CityofGold (El_Dorado)in 1595 (Guyana Public

Communications_{Agency [GPCA],} 1990).

Atthe_time,the_Dutch,theFrenchandtheBritishweretheworld_powers, and

therewas_ongoingconflict amongstthesenationstoconquerlands aroundtheworld.

This conflictdidnot excludetheGuiana_lands, andin 1814thepart ofthelandthatis

nowGuyanawas conquered_bytheBritish_(GPCA, 1990).

The countryhasendured atorrid_historyfromtheimportationofslavesfrom

Africa,indenturedservantsfrom_India, Madeiraand_China,to thedeclineofSocialism.

Itis withthemiscegenationofthevariouscultures and political conflictsthattheunique

culture ofGuyanais founded.

Georgetownisthecapital ofGuyanaandis nicknamed "The Garden_Cityofthe

reminiscent oftheDutch_influence,and itsscenic_beautyisenhancedwithits exoticflora.

Thereare several publicgardenslocatedin Georgetown. Thesebeautifulgardens

arefavorite destinationsofboththelocalsandtourists. The Promenade_Gardens,withits layoutsimilartoaVictorianstyle_garden,sports a profusion offlowers,andisalsohome toa statue erectedinthe_memoryofMahatmaGhandi,an admired and respectedheroto theGuyanesepeople. TheBotanic Gardenswhichisalso a recreation parkisanother

gardenfoundinthe city. Thisgardenboastsa_varietyoftropicalflowers and afine

collection ofpalms. The_beautyofthesegardens captured onfilm_bythecamera_happy

touristwill givethempleasurefor_manyyears aftertheexperience.

The cityis furtherenhanced_bythe"chequerboard"

layout, anothertrait

representative ofitsDutchheritage. Ofarchitecturalinterestarethenoblebuildings

constructed centuries ago_bytheDutch_includingthehandsomewooden_dwellinghouses

oftheinhabitants. There isalso evidence oftheBritishinfluence inthearchitecture. A

visittoGeorgetown isnot complete without a visittotheSt. George's_Cathedral,one of the tallestwoodenbuildings intheworld. Thischurchboastsuniqueand_interesting

artifactsin its interior.

Thetouristwould alsohavethe_opportunitytoviewthe_charmingtraditional

housesset on stilts which are scatteredthroughoutthe_country . Inadditiontheywill see

a_varietyof oldMuslimmosques andHindutemples in itsmidst.

Anotherunique architectural structure istheUmana_Yana,a conicalAmerindian benabmadeof palmleavesand wood. The benab stands at55 feettalland was

constructedbythe Wai Waitribein 1972. ThenameUmana Yanameans _"meetingplace

ofthepeople,"

and servesasa recreational spot and a placeto _display localarts and crafts (GPCA, 1990).

Avisitto theNationalZoois anotherfavoriteoftourists. Hereoneisableto

National MuseumandtheCultural_Centre, wheretouristscanattendan on-stage

performancesuchas adancepresentationor a_playare also_interestingand_entertaining

placestovisit.

Avisittotheoutdoor markets isalso a_{must,especially}the StabroekMarket

whichis housed bothonlandand water. Oncedescribedas a"BizarreBazaar,"the touristwill_enjoythehustleandbustleofthevendors _{selling anything}from_jewelryto

produce.

AvisittoGuyanamustincludea_tripto theseawall whichoverlookstheAtlantic

Ocean. Astructuredesignedtoprotectthe_cityfromthe sea, sincethecoastlineisseven

feet belowsea_level,theseawallisa_meetingplace forthe_youngand old alike. Tourists

will_enjoythesoundsofthesteelband ontheweekends asitprovides sweet melodiesfor

everyoneto'jam'to.

Sports like tennis,squash,football(soccer),and golf areavailableto thesports

lovingtourist. _Cricket,anEnglishsportfascinatesanyonethatis_viewingit forthefirst

time. Atthevarious cricketclubs, arrangementscould bemadefor instruction in playing

thesport.

Carand motorcycle_{racing(providing}thetouristhasa validInternational_license)

are alsotwonovice_sportingeventsthat the touristcan enjoy.

Goat racing is another unique sportfound in Guyana. Similarto the_dogracing

foundinNorth_America,goat_racingprovidesthe tourist an unforgettable experience.

Everytouristhastosamplethefestivities ofthenightlifein Guyana. Tourists

havetheoption of_fetingunderthestars atthevarious street_parties,where_theycould

danceto calypso and reggae_music; orgoto _anyofthenumerous nightclubsthat_play

bothlocal andAmerican_top40music.

Forthetouristwho wants aslowerpacefornightimeactivity, thereare a_bevy of

Thetouristwho is fortunatetovisitGuyanain_Februarywillparticipateinthe

Mashramani festivities. Mashramanicommemoratesthecountry's _anniversaryas aCo

operativeRepublic. Georgetown comesalive withthereggaeand calypso_bands, soca

partiesand_concerts,and costumed street parades. Thisfestival issimilarto thecarnival

inRiodeJaneiroandtheMardiGrascelebrationinLouisiana.

Thecelebration ofdifferentreligions can also beenjoyed. In_March,theHindus

observe _Phagwa,incelebration oftheirNew_Year,withthe_throwingof water and red

dye_(abeer)on eachother(Hughes & Thorne_PublishingHouse Ltd. _[H&T], 1995). Itis

ajoyousoccasion andit isheart-_warmingtoheartheshrieks ofthechildrenas_they are

soaked with cold water. Thisfestival iscelebrated_byeveryone,infactnofestivalin

Guyanaiscelebrated_byjustone group.

The_dayafterEaster(Easter_Monday),people_flykiteswhich symbolizesthe

resurrection ofChrist. The sky invarious parts ofthe_country is filledwithkitesof all

shapes, sizes,and colors. Onthis_day,there are_manyhousepartiesto which an

invitation isnot necessary. Toaddto the_{festivities,young}adults goto theseawallto

participateinthefestivitiesof music anddancing.

InNovemberand_December,the_countryobservestwofestivalsoflights.

NovembercelebratestheHinduversion,Deepvali,aHindutraditionof_lightingthe

housesand streets withdiyastocelebrate good overevil_(H&T, 1995). Decemberis

Christmas. _Duringthesemonths the_{country is}ablaze with_lights,andistransformedinto

afairyland.

Throughouttheyearthe touristwould_enjoythefairs heldontheweekends. At

thesefairs one wouldbeableto_buycrafts,and viewfashionand cultural shows. Fairs

also givethetouristthe_opportunityto minglewiththelocalpeople.

Thesites and activities discussedabove arenotallthatGuyana hasto offer. Most

otherregionsthatwouldbeofinterestto thetourist.

Withtheevolvementand successofecotourism,it is important forGuyanato

followthisavenue oftourism. Inthe_followingsection,ecotourism anditsevolutionin

Guyanawillbe discussed ingreatdetail.

The Evolvement ofEcotourism

Purposefultravel tonaturalhabitatstocreate an

understanding ofthecultural and natural_history

pertainingto that environment, emphasizingcare nottoalterthe_{integrityofthe ecosystem,} while

producingeconomicbenefitsthatencouragethe

preservation_oftheinherentresources_oftheenvironment

Dr. Richard_Ryel,1995

Withthepreferencefor destinations_cateringtoecotourismon_{the rise, there}

presents an_opportunitythatGuyanacan capitalize on. The country boastsa wide

plethoraof_charmingsites which would serve_{the country}and_industrywellin securing the_countryas afirstclassecotourismdestination.

Guyana'sattributes rangefromthe_cowboyranchesintheRupununi Savannahsto

the_manyspectacularwaterfalls scatteredthroughout thecountry. For manyyears

tourismhasbeenassociated withthecountry's _surroundingneighbors sincethese lands

boastwhite, sandy beacheswithbluewaters. Itwas_understood,or_{assumed, that}people

visitedthese_{lands purely}forthose attributes. Itwas neverthecase where_rainforests,

waterfalls,floraandfaunawouldbeconsidered attributesthatwould support atourism

industry.

However,as ecotourism _evolved,theGovernmentofGuyanadecidedtoutilize

theseresourcestocreateatourismproduct. ItistheGovernment's intentto_developthese

resources ina sustainablemanner, soasto safeguardthe_integrity,cultural and_otherwise,

(Sinclair, Donald, 1995).

ThoughGuyanadoesnothaveanabundanceofbeacheswithbluewatersand

white_{sand, the tourist that}desiresthisattractionwouldhavean_opportunitytovisit

severalspotsinthe_countrythathasthisfeature. Howeverit is believedthatthe

attractionforthesebeaches is_waning,andwiththeevolvement of ecotourismthe

Governmenthasmade a conscious efforttodifferentiatethe_{country from}itsneighbors

and showcasetheother naturalattributes ofthe_countrynotinherent inmost oftheother

neighboringcountries.

In Guyanaonehasan_opportunitytovisit_anyofthefourmountain_{ranges, the}

twohundredand_seventysix_{waterfalls, the}eighteen_lakes,orthedenseareas oftropical rainforest. Scatteredthroughout thejunglethenaturetouristwouldbeabletoview a wide assortment offloraandfaunawhichinitspristine state makesthejunglea natural museum, one ofthebestintheworld.

Forthe_birdwatcher,Guyana hasover sevenhundredand_twentyspecies ofbirds

includingthe_HarpyEagle,thelargestand one oftherarest eaglesintheworld_(H&T,

1995).

Atraveler toGuyanamust visit atleastone oftheseveral ranches located inthe

Savannahregion. Theseranches offertheglamourof yesterday'sWild Westto tourists.

The cowboyrodeo competition_duringEasterprovidesthe touristnot_onlya_displayof friendlyrambunctious,and oftendangerous_skills,butademonstrationofthe

Amerindians'

everyday activities. _Manyof_{the artifacts,} fromthehandcraftedleather -embossed_saddles,plaited whipsto theintricate buckle

-studded reins and_girths,arejust

afewofthecraftsthatthesepeoplemake on a_dailybasis. In_{addition, the}foods served duringthiseventarestaplestraditional to thearea.

The countryalso possessesa_varietyofruinedfortsand otherhistorical_sites,

Avisitto themagnificentKaiteur_Falls,oneofthe_manyspectacular waterfalls

foundin_Guyana,isa must. Witha_dropof741 feet,Kaiteurisfivetimestheheightof

Niagara, andtwice theheightofAfrica's Victoria Falls_(H&T,1995). The_beautyofthis

naturalwonderoftheworldisaspectaclethatno one shouldevermiss. _Furthermore,the

wildernessthatsurrounds thisnatural wonder providesthenaturalisttravelera

combinationof various_flora,fauna,andbirdspecies for his_travelingpleasure. One_day

isnot enoughto_fullyexperience and appreciateKaiteur'slistof natural_wonders, sothe

vacationer should planto_{stay in}theareaforatleasttwodays.

Itis important forcountries aroundtheworldtobeaware oftherapidgrowth of

ecotourism. Consumertasteshavechanged. Consumerswant_somethingnewand_novel,

thus thedemand forthe traditionalCaribbeanvacation ofsea and sunhas declined.

Visitors haveadopted a"seeandenjoy,but donot

destroy"

attitude withtheirincreased

interestintheenvironment and culture ofthehostcountries. Consumer changingtastes

must notbeunderestimated since a country's_abilityto meet and_satisfytheirneeds will

determinethefuturesuccess oftourismintherespective countries.

The Resources for

_Developing

Intheprevioussections wehave discussedthe_potentialityoftourism

developmentinGuyana. Theprospectsonthesurfaceappeartobegood andthe

unassuming individualwould_saythat the_countryshould proceedwithplansto_develop

theindustry. However duetolackof_resources, Guyanaisunabletoproceed

precipitously withthisproject.

Financiallythe country has limited fundstofunction_{economicallytoday,}yet

alonehave enoughtospend on_developingan_industry fortomorrow. Itis recognized

that thetourism_industryisalucrative_one,onethatwouldbenefitthe_{Guyanese economy}

importantthatGuyanadoesnotletthisopportunitypassthem_bysincetherewards would

be_simplypositive.

However,to_developthislucrative_industryGuyanawill need certain resourcesin

placebefore developmentcouldbegin. These areasinclude:

1) Investment

2) Training

3) Travel_AgencyConnection

Investment

Themost significantfactorthatwould assistthe_{country in achieving}itsgoalis

investment. Muchinvestment isneeded. _{The country}will needtoattractboth foreign

anddomestic investment ifitsgoalistoberealized. Inthepastinvestment hasbeen

limitedduetotheeconomic_decayofthe_{country resulting from}thewidespread

nationalizationofindustries.

Thissection willdiscusstheareasinwhichinvestment isnecessary. Itmustbe

understoodthatinvestmentwill notjustbenefitthe tourism_industry,butwillalsobenefit

thenation as a whole. Thissection will also coverinvestmentpoliciesinplace_currently

in_Guyana,and prospects fornew ones which are expectedtoentice newinvestment.

Howeverinordertounderstandthereasonforthecountry's intenseneedfor_investment,

it isimportanttodiscussthecurrentstatusof_{Guyana's economy}andthemeasures the

countryistakingto improveit.

Theeconomicperformance ofGuyana inrecentyearshas beenoutstanding.

Followed_byyears of economicdeclinethe_{ruling Government}in 1989made aconscious

efforttorevitalizethe_{Guyanese economy}withtheimplementationofthe Economic

predominantlystate-controlledsocialist_economytowardsa more_open, freemarket

system. Thisprogramaimed at_restoring economicgrowth and_reducingtheexternaldebt

wasdesignedwiththe assistance oftheInternational_MonetaryFundandWorldBank

officials,andissupported_{by Canada,}theUnited KingdomandtheUnited States.

Sincetheprogram's_inception,theGovernment has invited foreigninvestmentand

hasprivatized_manystate-ownedenterprises. Privatizationofindustries such asthe

telecommunicationsnetwork whichisnow 80percentowned_bytheU.S. Virgin Islands

firmAtlantic_{Tele-Network,}createda newattitudetowardsforeign investment (CHL

Consulting Group[CHL]#2, 1989). _Manyformerforeign investorsreturnedtoGuyana

and new ones entered as well.

Accordingto the1994 Reporton theEconomicandSocial Progress inLatin

America,during 1994,thereal Gross Domestic Productgrew_by8percent, thehighest

recordedgrowth performanceintheCaribbeanregion. Thismarkedthefifthconsecutive

yearthat thecountry's_economyachieved growthinexcess of6percent. Asa result

unemploymentrates dropped below 12percent.

Thepoliticalclimatein Guyana isstable. Therehas beenregular consultation

betweenthedifferentpolitical_parties,andfreedomofthepresshas been readily

enforced.

Withthesetestimonials itisobviousthatGuyana isa_sound, stable_economy

worth_investingin. In 1994,theGuyana Office for Investment_(GOINVEST)was

establishedas an_{agency designed}topromoteinvestmentandtoassistinvestors in

acquiringinformationaboutinvestmentopportunitiesin Guyana. Thisprogramhas been

quite successful and significantinvestmenthas beenmade inareas of_forestryand gold

mining. However investment in industriessuch astourismhas been limited.

Inordertopromotethetourismproduct, theGovernmentmustcreateconditions

investment in Guyana'stourism_industrya worthwhileone. The Governmentmust create

afavorableclimatefor investmentandprovideincentiveswhendeemednecessary.

Thereare severaloptionsinwhichinvestorscould choosetoinvest ina country.

Aforeign investorcould choosetoinvestalone orin_partnershipwith otherforeign

investors. Thelatter isreferredtoas a_MarketingAlliance.

Investors in_{Monterey County}inCaliforniachosethisoption wherethreelocal

hotelscametogetherandformedthe_{Monterey Meeting}Connection_{(Marsh, Gary,} 1994).

Togetherthese threehotelsdevelopeda conference center which wasdesignedto serve

theentire_{MontereyCountycommunity}since onehotelcould not affordtodo it_byitself.

In Guyanaa similar alliance couldbeachieved whereforexample severalhotelchains

can cometogetherandbuildaresortinsomeremotepart ofthe_countryandshareinthe

profits.

TheGovernmenthasrealizedtheneedforlocal investorsas wellandhas

approvedjointventure partnershipsbetween localandforeign investors. The

Governmentis_verykeenonthis typeof partnership. Theadvantage ofthejointventure

approachisthe _sharingbythepartners ofthecost or contribution of resources. The

Governmentoffersto investorsinterested inthisapproach attractive employee wage rates

and managementsalaries,lowermaterialinputexpenses andknowledgeofthecultural

environmentofGuyanaas hostenvironment. InreturntheGovernmentexpectsthe

investortoprovidecapital,state-of-the-art_{technologies,management,}and_marketing

skills.

Investorsalsohavetheoptionto managepropertiesratherthanbuildasisthe case

inBrazilwhereInternationalgroupssuch as _{Ramada, Westin,} Sheraton ITTandBest

Western haveoptedtodo so. _AccordingtoIramar Veirissimo Pinto oftheBest-

Western-Colonial HotelinFortalezainaninterviewtoThe Economist_(1995),'It'sa_wayto test

thewater without_{gettingtotally} wet.'

thisroutein_Guyana,andthe_{country is}anxiousforother chainswho wouldbeinterested

in_consideringthispossibility.

Banksareworthwhileinvestors. BanksgiveloanstoGovernmenttofinance

projectsdesigned forthebettermentoftheircountries. In_Brazil,The Economist₍₁₉₉₅₎ reportedthat thecountry'stourism_industryis_benefitingfromthe$3 billion loan it

receivedfromtheNational EconomicandSocialDevelopment,andbacked_by

Inter-AmericaDevelopment Bank_(IDB)toboosttheregion'sdevelopment. Thisloan included

provisionsforsubsidized_financingfor hotel development. Inadditionthemagazine reportedthat the_countryreceived$800milliontoimprove its infrastructure_{ranging from}

airportto sewerfacilities.

Internationalbanksare also_recognizingthe_potentialityfor lowriskinGuyana.

In _1991,theIDBapproved aloanto the_countryfor$4 million towards _spendingon

trainingforcustoms officers and_staff,and onthecomputerizationand set_upof control procedures of

customs'

systems (IDB 1994 Annual Report).

Inthesection which_follows,theincentivesthattheGovernmentofGuyana has

presentedtopotentialinvestors inan efforttoencouragethem toinvest inthe_country

willbe highlighted.

In attractinginvestment,governmentshavetoofferincentivestopotential

investors. Fiscal incentives haveprovedtobe_byfarthemostinfluential. Thesetypes of

incentivesare_widelyofferedina number ofCaribbeanislandsandSouth American

countries. Governments granttaxexemptionsto investors. Thegeneraltaxstructureis modified_accordingtothenature oftheinvestment. Forexample, the Governmentof

Guyanahas an agreement withCanadawhichprovidesforreliefondoubletaxationon

incomeearnedin GuyanabyCanadianinvestors (CHL#2, 1989).

Otherexemptstrategies_mayincludetaxrelieftohotelowners who invest in

#2, 1995).

Thegovernmentcan also maketheprospects oftourisminvestmentattractiveby

offering special_dutyfreeconcessionsdesignedtoincreasethe_{profitability}oftheproject

that theinvestor is involvedwith.

Theinvestorcan alsobenefit from_easyand unrestricted accesstoforeign

exchange,remittances of_earnings,and repatriation of capital.(Bilateral Investment

Treaty)

Like many sectors, tourismsuffers_greatlyfrominadequateeconomic

infrastructure dueto the_inabilitytomaintainand underinvestment. InGuyana,this

situationisno_different,butthelackof suchfacilities hasa more significant effect onthe

countrythanmost.

Guyananeeds investment inalmost_everyarea relatedtoinfrastructure. These

areasinclude_{telecommunications,airports,}air_service, road and river_transport,basic

utilities_{including electricity}and_water,andhotel accommodations.

As previouslydiscussed,Guyanahasa natural unspoiled_beautyinwhichlittleor

nodevelopmentoftouristattractionsisnecessary. _However,thefacilitiestosupportthis

product areindireneedofrevamping.

Hotel Accommodations

Hotel accommodations are an example of such a need. Presently Guyana has

sixteen motels andhotels ranging insizefrom 6to 132rooms at rates ofUS $15.00

-240.00. Howevermost ofthesehotels lackthestandard of_qualitytowhichthe

experiencedtravelerisaccustomed. Thesehotels lack_manyamenitiesthat travelers take

forgranted,includingair conditionedunits, telephone systems, television sets,weight

rooms,and_swimmingpools. Peoplewhoare accustomedto_travelingand_{staying inbig}

hotelchainstend to dislike suchinconveniences and eitheraredissuaded from_visiting

Withexception_{to the single,}BritishownedFortepic._{establishment,}Guyana lacks_bignamehotels. _Bighotelchains can operateinthecountry's_surrounding

neighbors,butnone,otherthanFortepic. venturedintothecountry. Itisnottheintention

thatGuyanaeliminatesthesimple establishment sinceintheremote geographic areas suchestablishmentsarebest_suited,but forthe travelerwho expects_citytypefirstclass

qualityahotelortwo synonymouswith a_bigname chainisnecessary.

Furthermore,hotels intheCaribbeanislandsare_experiencing severe competition

fromcruiselinecarriers. _Manypeople are_electingto takecruises where_theyare ableto

visit morethanoneisland_during a short period oftimeratherthan_visitingoneisland for thesameduration. Asa_result,hotelsare_loosingasignificant amount of money. It

wouldbethusadvantageousto thehotelchainsif_theywouldopen operationsinareas wherethere islittleor nothreatof competitionfromcruiselinecarriers. Guyana isa prime example of such alocation. _{So, byopening}a_{property in}the _countryprovides an added plusforwise investment.

Thelackof a well-knownhotel isalsoblamedforthelackofforeign_investment, asisthecasein_Tobago,thesmaller part oftheTrinidadandTobago Republic_(Henry

-Kunzel, Ginger, 1994).

In_addition, inanEconomic Analysisconducted _bytheOAS inwhichCruise_Ship

Passengersaccountedfor 38 percent oftouristarrivals against53percentforstopover

visitors,itwasfoundthatmorethan25percentofCruise Passenger spendingwasfor

dutyfree _{goods,spending}whichcontributedlittleto the_economy (CaribbeanHotel Association _{[CHA] #1,} 1995).

Fromthediscussionintheprevious sections it isevidentthatGuyanaboastsan

attractive touristproduct. Thereis nodoubtthat the_countrywouldattracttourists. With the_growingtrendinecotourism,it isobviousthatGuyanahasthe_capabilityof_beinga

trendandthe_opportunitythatexistsinGuyana. Itmightbeprudentthatthecountry's

officialsmakeavaliant efforttoapproachthechainsand convincethemtoinvestinthis

venture.

Italso shouldbenotedthatsomehotelchainsarenotblindto thissort of

opportunity. InfactHilton Internationalhasa_facilityin KenyacalledtheHilton Safari

Lodgewhichhas been inoperation sincethe 1980sandhassincethelate _1980s, achieved

90percent year round_occupancywithitscombinedbeachandsafariactivities. With

results ofthissuccessHiltonis intheprocessof_openinga50acreresort_property

(BatangAi Longhouse_Resort)in_Malaysia,which willalso caterto theeco-tourist

(Antolik,Cristine, 1993).

Thesuccess ofthischain's venture should not go unnoticed. Ithastappedintoa

growingmarket,so inan effort nottosufferfromamyopic_backlash, otherhotelchains

should viewthis_opportunityas alucrativeone and pursueit. Guyanaisa primelocation

forsucha venture sohotelchains mustbeencouragedto investinthisopportunity.

Transportation

Road: _Manytravelersexpecttohave a rental car availabletothemupon arrival

to their_{destination. In many}developedtouristeconomiesthisserviceisavailableforthe

traveler'sconvenience. _However,in Guyanathisserviceis_practicallynon existent. To

makethe touristproduct moreattractiveto the_tourist,it is importantthat thisadded

servicebemade available. ItshouldbetheintentionoftheGuyanesetourism_planning

officialstocontactinternationalcar rental agencies like HertzandAvistoset_{up divisions}

inthecountry. _However,beforesuch contact is_{made, the}government wouldhaveto

rebuildtheroadswhich areinmajordisrepairsothat theseforeignowned car rental

agencies would not make unfit roads anissue_duringnegotiations. _However,itwould

provetobemorecost effectiveif Guyanawould establishitsown car rental agency. The

remaininthecountry. Rentalagencieslike HertzandAvishavetogivea portion of_any

moneyearnedto theirprospectiveforeignparentcompany.

Forthe touristwhodoesnot_necessarilyrequirearental_car,severaltaxi services

are available. Howeverwiththeexception ofthefleetsowned_byafew_companies,most

ofthe taxis areold andinpoorcondition. Inan efforttoimprovetheconditionsofthe

hire_{cars, the}Governmentis_examiningthe_possibilityof_cuttingtaxesontheimportof

new vehicles (CHL#2, 1989).

Mostpublictransportationisprovided_byprivatelyowned minibuses. Regular andfrequent busserviceslinkGeorgetownwith other majorcitiesinthecountry.

However,withtheexpectedincreaseintourist_activitytherewillbea needformore

publictransport. _DuringtheSocialistera,economybuseswerethe onlymeans of public transport. Howeverasthe_{economydeclined,}thebusservice was one ofthe_many

industriesaffected and alsodeclinedintheprocess. _Eventually, thesebusesceasedto

exist. Thistypeofbus serviceprovides_{transport to the masses,}and would_{be necessary}

withtheinfluxof expectedtourists. _{Tourism planning}officialsin Guyanashould

therefore_trytore-establishties withthepriorbus _companytoregeneratetheirinterest in

setting upoperations againin_{the country;} or encourage newbuscompaniestogetthem

interested in_doingso.

Withthedevelopmentof_{tourism, funds}willbeneededtorepair_existingroads.

Thesefundswill alsobeusedto buildnewroadsandbridgestoaccommodatetravel

aroundthe_{country,especially in}remote areas.

River: Withthedeliberate developmentof ecotourismin_Guyana,rivertransport

willbea_necessaryfactor. _CurrentlyGuyana'stwomain ports are navigable _byocean goingvessels_uptoabout68 milesfromthe_estuary oftheDemeraraRiver. The Berbice

A_dailymotorlaunchserviceisavailablebetweencertainareas. Launchand

pontoon_services,aswell as _ferryservices arealso available_dailybetweencertain points.

However,tosupport_{the tourism product,}moreaccesswillbenecessary,especially since

theecotourismproductwillbe locatedinremote areas ofthecountry.

TheGovernment has_alreadyapproachedinvestorswiththisproject andhas

succeededin_solicitingthe_helpoftheEuropean_Community,whohasagreedtofundthe

routingservice of acertainarea. Thesefundswillbeusedtoconstruct a new road and

piertogetherwiththerefurbishment of aferry. ItiscrucialfortheGovernmentto

approach otherbodiesor organizationstoencouragethem toinvest insuch ventures.

Air: Mostvisitors arrivein Guyana_byair. The Timehri International Airport

isthe_gatewayto thecountry. Itsmain_runwayis7,430_feet,too shorttoaccommodate

either aB747or aDC 10. Asa result_{many international}flights havetolandinother

countriessothatpassengers en routetoGuyanacantransfer tosubsonic commercial

aircrafts which couldbeaccommodated atTimehri. Butwiththeexpected increase in

tourist visits, taxiways and_turningareas would needtobeextended and reinforcedto

accommodatelargeraircrafts(CHL_#2, 1989).

The Governmenthas_alreadyappointed_B.A.S.L.,a_subsidiaryofBritish Airports

Authority,tomanagetheairport. _However,theGovernmentshould also approach

investorstocontribute funds fortherefurbishment oftheairport_facilities,withtheintent

toimprovethe_qualityofserviceintheprocess.

Access tosome remote areas inthe_countryrequiresairtravel. Thereareover

twentyairstripsthroughoutGuyanacapable of_handling nolargerthancommuter size

aircrafts. _However,thereisneedto upgradethe_existingfacilities inorderto

accommodateincreased tourist travel.

Scheduled internationalflights inand out ofTimehriare operated_by several

ALM, Cubana,BritishWest Indian Airways _(BWIA),andCruzeirodel Sol. _Everyday

therearedirectortransferconnectionstomajorinternationalcities_{includingLondon,}

Miami,New YorkandToronto.

However, becauseof operational problems with equipment causedbyspareparts

shortages, thelocal airline_(GAC)hasnotbeenabletoalways_{satisfy demand. In}some

instancestheairlinehas been forcedtocancelor postponeflightsand sometravelershave

hadto_{stay in}the_countryforextended periodsoftime. The GovernmentofGuyanais

anxioustoresolvethisproblem and ensure adequatecapacity, soit is_exploringthe

possibilities of_{merging GAC}with anotherCaribbeancarrier(CHL_#2, 1989). The

Governmentalso planstoencourageforeigncarrierstoincreasethescale oftour

operationsand also attract new airlines.

Telecommunications

Thetelecommunications _industrywas anotherone affected_bythe economic

decayofthecountry. The Guyana TelecommunicationCorporation,thegovernment

regulated_agencywhich providedtelecommunication servicesto the_country, experienced

manyproblems which affectedthe_countryas a whole. For_example,manyprivate

consumersforperiods at atimehadtolivewithinterruptedtelephoneservice. Private

consumerswere notthe_onlyones_affected,businesseswere also.

Theseproblems werelinkedtothecountry's oldfashionedtelecommunication

system. Asaresult, whentelephone linesbroke downtheparts neededto repairthem

were not_easilyavailable and some ofthemwere even obsolete.

Duetolostbusiness andtheobvious_necessitytohavea_working

telecommunicationservice, theGovernmentrecognizedtheneed fora more modern

system. The Government inconjunction withNorthernTelecomofCanadamadeplans

tomodernizethesystem. Thiscollaboration _amongotherthingsdoubledthenumber of

internationalcircuits- 120toNorth America_and20 toEurope (CHL

The European_Communityhas alsocontributedbyfundinga microwavelink

betweenSurinameandGuyana. Amoderndigitalexchange wasinstalledinGeorgetown

toexpandlocal serviceandenableuse_byalllocalusers. Of immediateconcernhowever,

isthe_availabilityof atelecommunicationnetworkinremoteareas. Itis important for

hotels intheseareastohavea systemwhich would cater_{to the traveler's needs,}whether

it'stheneedfortelephonecallsorfaxandtelex transmissions. Thoughsome ofthese

areas_{already haveaccess,}somedo_not,fundingwillberequiredtoundertakethis

telecommunicationsexpansion.

Utilities

Electricity: _{Public electricity}serviceinGuyanais irregularand unreliabledue

to _{insufficient capacity}requiredtomeetcurrentdemand. _Manybusinessesthroughout

the_country,not_{excluding hotels}and_restaurants, have hadtoinstalltheirowngenerators

tocounterthisproblem.

Thepotentialforlarge scale generation ofhydropower exists intheinteriorareas

ofthecountry. _{However,money}isnot availabletofundthisproject. Thisproject poses

no environmentalharmto the_country, soinvestorsshouldbeencouragedto_helpfundit.

Water: Disruptionsinwater serviceinGeorgetown_frequentlyoccurdueto

breakdowns inthe_electricitysupply. _Furthermore, the_purityofthewater cannot always

beassured. Investmentfortheimprovementofthewater_{supply is}a_priorityforthe

Government's Economic_RecoveryProgramme.

Inremoteareas_however, water is readilyavailablefromrivers and wells.

However dueto thelack of_plumbingfacilities in_{these areas,money}will beneededto