Stephen G. Britton
Thesis submitted for the Degree of Doctor of Philosophy in the Australian National University
the author's original research.
A B S T R A C T
This thesis has two central aims: to test, at the empirical level, certain aspects of underdevelopment theory; and to demonstrate the utility of using an holistic approach for the investigation of 'geographic problems'. In particu lar, an attempt is made to investigate the processes and manifestations of linkages that render peripheral economies subordinated to, and dependent upon, metropolitan countries. The spatial manifestations of this form of development are
investigated by inquiring into the nature of the processes themselves. This is achieved through the use of a case study of one industry, tourism, as it occurs in one, small, Pacific Island state - Fiji. The study centres on the
TABLE OF CONTENTS
Page
List of Tables viii
List of Figures xiv
Acknowledgements xv
INTRODUCTION 1
CHAPTER
1 TOURISM IN PERIPHERAL ECONOMIES 9
TOURISM AND DEVELOPMENT: A REVIEW 11 1. Foreign Exchange Generation 13
2. Foreign Investment 16
3. Impact on Domestic Product 17
4. Employment Generation 22
5. Government Revenues 27
6. Economic Externalities 30
7. Environmental Externalities 32
8. Social Externalities 33
THE STRUCTURE AND ORGANISATION OF
INTERNATIONAL TOURISM 39
1. The Primary Tourism Sectors 40
(a) Travel Agents 41
(b) Tour Companies 44
(c) Hotel Companies 46
(d) Transport Companies 47
2. Metropolitan Periphery Tourism
Industry Linkages 49
(a) The Spatial Organisation of
International Tourism 53
(b) Package Tours and Third World
Tourist Products 56
CONCLUSION 62
2 A MODEL OF TOURISM IN A PERIPHERAL
CAPITALIST ECONOMY 69
THE CHARACTERISTICS OF A PERIPHERAL
CAPITALIST ECONOMY 69
1. Factors Determining
Metropolitan-Periphery Linkages 70
2. The Nature of Metropolitan-Periphery
Integration 7 3
3. Internal Linkages within Peripheral
Economies 7 5
THE CHARACTERISTICS OF TOURISM IN A
CHAPTER Page 3 THE COLONIAL LEGACY AND THE INTEGRATION
OF TOURISM INTO THE FIJI ECONOMY 88 THE DEVELOPMENT OF THE COLONIAL ECONOMY:
1800-1970 88
1. Initial European Penetration 88
2. Colonial Policy 95
3. The Merchantile and Industrial Economy 99 4. The Sugar Economy and the Indian Sector 101 5. The Integration and Marginalisation of
the Fijian Sector 108
DEVELOPMENT IMPERATIVES OF THE NEO-COLONIAL
ECONOMY AND THE ROLE OF TOURISM 118 1. Development Constraints of Sugar
Monoculture 118
(a) Under-utilisation of National Resources 118 (b) Dependence on Vulnerable Export Markets 119 (c) The Sugar Economy and Racial Politics 122 2. Development Constraints of a Restricted
Industrial Base 123
3. Political Development Constraints 126 4. Natural Development Constraints 129 THE DEVELOPMENT OF FIJI'S TOURISM INDUSTRY 132
CONCLUSION 141
4 METROPOLITAN LINKAGES DETERMINING
TOURIST FLOWS INTO FIJI 145
TOURIST FLOW TRENDS 145
FACTORS DETERMINING MARKET DEMAND AND
TOURIST FLOWS 152
1. Tourist Motivations and Characteristics 153 2. Tourist Industry Promotion 159
(a) Characteristics of Fiji Tourist
Promotion 16 0
(b) Principal Fiji Promotion Agents 164 3. Operational Priorities of Trans-national
Tourism Companies 169
4. Operational Priorities of International
Airlines 176
(a) Factors Affecting Fiji's Accessibility 177 (b) Determination of Fiji Sector
Passenger Carrying Capacity 181 (c) Case Studies Illustrating the Influence
of Metropolitan Airline Operations 194 5. The Role of Air Pacific in Fiji's Tourism
Economy 205
6. Economic Fluctuations within Tourist
Markets 210
CHAPTER Page 5 THE INTERNAL STRUCTURE OF FIJI'S
TOURIST INDUSTRY: PRIMARY TOURISM SECTORS 217
THE ACCOMMODATION SECTOR 218
1. Characteristics of Fiji's
Accommodation Sector 218
2. Structural Problems of the Accommodation
Sector 227
(a) Under-utilisation of Plant Capacity 227 (b) Increased Fixed Costs of Hotel Inputs 228 (c) The Repercussions of Foreign
Investment 235
3. Distribution of Accommodation Sector
Receipts 244
4. Fijian Participation in the
Accommodation Sector 254
(a) Hotel Wage Employment 255 (b) Rentals from Hotel Lease of
Native Lands 259
THE TRAVEL AND TOUR SECTOR 263
1. Characteristics of Travel and Tour
Enterprises 264
2. Distribution of Travel and Tour Sector
Receipts 273
CONCLUSION 290
6 THE INTERNAL STRUCTURE OF FIJI'S TOURIST
INDUSTRY: SECONDARY TOURISM SECTORS 293
THE TOURIST SHOPPING SECTOR 294
1. Characteristics of Tourist Shopping
Enterprises 296
2. The Tourist Shopping Sector Marketing
Structure 306
(a) Price Mechanisms and Franchise Rights 306 (b) Retail Market Competition 318 3. Distribution of Tourist Shopping Sector
Receipts . 335
THE TOURIST HANDICRAFT SECTOR 346 1. Components and Characteristics of the
Handicraft Sector 349
(a) Characteristics of the Vendor
Population 349
(b) Types of Commodities Sold 351 (c) Types of Handicraft Enterprises 354 (d) Scale and Organisation of Enterprises 358 2. Distribution of Tourist Handicraft Sector
Receipts 370
CHAPTER
7 TOURISM AND THE NATIONAL ECONOMY TOURISM AND FOREIGN EXCHANGE GENERATION 1. Net Tourism Income
2. Policy Implications of Using Tourism as a Foreign Exchange Earner
LINKAGES BETWEEN TOURISM AND THE DOMESTIC ECONOMY
TOURISM AND EMPLOYMENT GENERATION ACCESS TO CAPITAL AND LOCAL EQUITY PARTICIPATION IN TOURISM
PUBLIC BENEFITS AND COSTS OF TOURISM 1. Public Expenditures on Tourism 2. Capital Budget Expenditures Related
to Tourism
3. Political and Social Costs of Tourism
8 THE NATIONAL AND INTERNATIONAL
DISTRIBUTION OF FIJI TOURISM RECEIPTS THE SOCIAL DISTRIBUTION OF TOURISM RECEIPTS THE SECTORAL DISTRIBUTION OF TOURISM RECEIPTS THE INTRA-NATIONAL SPATIAL DISTRIBUTION OF TOURISM ACTIVITY
1. The Location.of Tourism Infrastructure 2. The Location of Freehold Land
3. The Location, of Urban Areas
4. The Locational Priorities of Tourism Plant (a) Transit Hotels
(b) Local Client Orientated Accommodation (c) Tourist Resorts
5. The Spatial Distribution of Tourist Expenditures
6. The Spatial Implications of Tourism THE INTERNATIONAL DISTRIBUTION OF TOURISM RECEIPTS
CONCLUSION: TOURISM IN A PERIPHERAL ECONOMY APPENDIX
1-5 SURVEY METHODOLOGY
6 CALCULATIONS USED TO ESTIMATE GROSS INCOME OF INTERNATIONAL AIRLINE COMPANIES
7 CALCULATIONS USED TO ESTIMATE GROSS INCOME OF INTERNATIONAL CRUISE SHIP COMPANIES
LIST OF TABLES
T a b l e Pa g e
4.1 Fiji Tourist Arrival Statistics, 1960-1975 148 4.2 Fiji Tourist Arrival Statistics: Percentage
Changes, 1960-1975 149
4.3 Country of Origin of Fiji Visitor Arrivals,
1960-1975 151
4.4 Growth Rate of Tourist Flows from Major Source
Countries: Air and Liner Visitors Only 152 4.5 Visitor Arrivals by Country of Residence and
Age Groups, 1975 154
4.6 Visitor Arrivals by Country of Residence and
Occupation, 1975 155
4.7 Visitor Arrivals by Country of Residence and
Purpose of Visit, 1975 157
4.8 Prominant Factors Motivating a Visit to Fiji 157 4.9 Entertainment Motivation by Age and Nationality 158 4.10 Fiji Flight Sector: One Way Economy Class
Fares and Cost per Mile to Alternative
Destinations, March 1978 179
4.11 Fiji Flight Sector: Estimated Seating Capacity held by International Air Carriers Operating
from Fiji, May 1978 185
5.1 Accommodation Sector: Rooms Built, 1960-1977 219 5.2 Accommodation Sector: Rooms Constructed and
Operated by Foreign and Local Enterprises,
1966-1977 221
5.3 Accommodation Sector: Rooms Built by Ownership
Categories, 1966-1977 222
5.4 Accommodation Sector: Number of Rooms Available
by Accommodation Types, 1960-1977 222
5.5 Accommodation Sector: Accommodation Types and
Rooms Available, 1977 224
5.5 Accommodation Sector: Accommodation Types
Controlled by Foreign and Local Enterprises, 1977 225
5.7 Accommodation Sector: Cost Increases of Basic
Hotel Inputs 229
5.8 Accommodation Sector: Employment, Labour Costs
Table Page 5.9 Tourist Accommodation Sector: Variations in
Staff Employment, 1970-1971, 1973-1975 233 5.10 Accommodation Sector: The Relationship Between
Declining Staff Levels and Visitors Accommodated 234 5.11 Increases in Gross Domestic Product Due to
Foreign Investment 235
5.12 Foreign Controlled Hotels: Nationality of
Management and Directorship Personnel, 1976 239 5.13 Accommodation Sector: Accommodation Stock
Capacity and Ownership Categories, 1977 245 5.14 Accommodation Sector: Composition of Guests
Accommodated by Ownership Categories, 1976 247 5.15 Accommodation Sector: Room Occupancy Rates
for Accommodation Types and Ownership Categories,
1974-1976 249
5.16 Accommodation Sector: Turnover by Ownership
Categories, 1976 251
5.17 Accommodation Sector: The Extent of Hotel
Chain Involvement, 1976 253
5.18 Accommodation Sector: Incomes of Wage and
Salary Earners, 1976 256
5.19 Accommodation Sector: Case Studies of
Distribution of Hotel Occupations by Race 257 5.20 Travel and Tour Sector: Value of Plant and
Equipment, 1976 269
5.21 Travel and Tour Sector: Distribution of
Transport Units by Subsectors, 1976 270 5.22 Travel and Tour Sector: Number of Clients
Served, 1976 272
5.23 Travel and Tour Sector: Ownership of Sector
Enterprises, 1977 275
5.24 Travel and Tour Sector: Gross Turnover by
Subsectors, 1977 • 276
5.25 Travel and Tour Sector: Value of Plant and
Equipment by Ownership Categories, 1977 280 5.26 Travel and Tour Sector: Distribution of
Transport Units by Ownership Categories, 1977 281 5.27 Travel and Tour Sector: Number of Clients
Served by Ownership Categories, 1976 283 5.28 Travel and Tour Sector: Gross Turnover by
T a b l e P a g e
5 . 2 9 T r a v e l a n d T o u r S e c t o r : I m p o r t a n c e o f Top
20 p e r c e n t o f E n t e r p r i s e s , 1977 2 8 5
5 . 3 0
T r a v e l a n d T o u r S e c t o r : Number Em ployed (Wage
a n d S a l a r y E a r n e r s ) by S u b s e c t o r s , 1977 2 8 7
5 . 3 1 T r a v e l a n d T o u r S e c t o r : Number Em ployed (Wage a n d S a l a r y E a r n e r s ) by O w n e r s h i p C a t e g o r i e s ,
1977 2 8 9
6 . 1 T o u r i s t S h o p p i n g S e c t o r : C h a r a c t e r i s t i c s o f
R e t a i l a n d I m p o r t i n g E n t e r p r i s e s , 1977 3 0 0
6 . 2 T o u r i s t S h o p p i n g S e c t o r R e t a i l T r a d e : E n t e r p r i s e
C h a r a c t e r i s t i c s , 1977 3 0 1
6 . 3 T o u r i s t S h o p p i n g S e c t o r : P r o p r i e t o r s h i p o f
R e t a i l S h o p s b y O w n e r s h i p G r o u p s , 1977 3 0 3
6 . 4 T o u r i s t S h o p p i n g S e c t o r : Numbers Em ployed i n
S u b s e c t o r s , 1977 3 0 5
6 . 5 C o u n t r y o f O r i g i n , a n d V a l u e , o f I m p o r t e d F i j i
T o u r i s t G oods, 1975 3 0 7 - 3 0 9
6 .6 T o u r i s t S h o p p i n g S e c t o r : C o s t o f S e l e c t e d F i j i D u t y - F r e e I t e m s D i s t r i b u t e d b y A u s t r a l i a n
C o m p a n ie s , J u n e 1977 3 1 4
6 . 7 T o u r i s t S h o p p i n g S e c t o r : Volume o f I m p o r t e d D u t y - F r e e T r a d i n g S t o c k by T y p e s o f F i r m , c i f
V a l u e s , 1977 3 1 6
6 . 8 T o u r i s t S h o p p i n g S e c t o r : D a te o f Commencement
o f T o u r i s t T r a d e O u t l e t s O p e r a t i n g i n J u n e 1977 3 2 1
6 . 9 T o u r i s t S h o p p i n g S e c t o r R e t a i l O u t l e t s : R e a s o n s
G iv e n b y P r o p r i e t o r s f o r P a r t i c i p a t i n g i n T o u r is m 3 2 2
6 . 1 0 T o u r i s t D u t y - F r e e a n d S o u v e n i r R e t a i l S e c t o r : P r e v i o u s Goods a n d S e r v i c e s S o l d a t R e t a i l
O u t l e t s by C u r r e n t P r o p r i e t o r s , 1977 3 2 4
6 . 1 1 T o u r i s t S h o p p i n g S e c t o r : I t e m s S o l d by R e t a i l
O u t l e t s , 1977 3 2 5
6 . 1 2 T o u r i s t S h o p p i n g S e c t o r : W ork in g H o u rs o f
R e t a i l O u t l e t P r o p r i e t o r s , 1977 3 2 8
6 . 1 3 T o u r i s t S h o p p i n g S e c t o r : D i s t r i b u t i o n o f R e t a i l
S a l e s T u r n o v e r b y F irm O w n e r s h i p C a t e g o r i e s , 1977 3 3 6
6 . 1 4 T o u r i s t S h o p p i n g S e c t o r : D i s t r i b u t i o n o f R e t a i l
S a l e s T u r n o v e r b y S i z e a n d Type o f F i r m , 1977 3 3 7
6 . 1 5 T o u r i s t S h o p p i n g S e c t o r : D i s t r i b u t i o n o f R e t a i l
S a l e s T u r n o v e r by S u b s e c t o r s , 1977 3 3 8
Table Page 6.17 Tourist Duty-Free and Souvenir Trades:
Proportion of Retail Turnover Retained by
Foreign-European Owned Companies, 1977 340 6.18 Tourist Duty-Free and Souvenir Trades:
Proportion of Retail Turnover Retained by
Fiji National Interests, 1977 341 6.19 Tourist Shopping Sector: Summary of
Distribution of Gross Turnover, 1977 343 6.20 Tourist Handicraft Sector: Previous
Occupations of Handicraft Vendors, 1977 347 6.21 Tourist Handicraft Sector: Vendors Reasons
for Selling Handicrafts, 1977 348 6.22 Tourist Handicraft Sector: Number of Vending
Enterprises by Marketing Areas and
Proprietorship, 1977 350
6.23 Tourist Handicraft Sector: Percent of
Enterprises Selling Handicraft Types, 1977 352 6.24 Tourist Handicraft Sector: Numbers of
Vending Enterprises by Types and Marketing
Regions, 1977 355
6.25 Tourist Handicraft Sector: Sellers per
Vending Enterprises, 1977 361
6.26 Tourist Handicraft Sector: Workforce Employed
by Handicraft 'Manufacturing' Enterprises, 1977 362 6.27 Tourist Handicraft Sector: Work Characteristics
of Vendors by Vending Enterprise Types and
Ownership Categories, 1977 363
6.28 Tourist Handicraft sector: Percentage of
Handicrafts Made by Vendors, 1977 365 6.29 Tourist Handicraft Sector: Origin of Vendors'
Finished Stock by Vending Enterprise Types, 1977 366 6.30 Tourist Handicraft Sector: Regions where
Vendors Obtained Finished Stock, 1977 367 6.31 Tourist Handicraft Sector: Value of Stock Held
by Subsectors and Ownership Categories, 1977 369 6.32 Tourist Handicraft Sector: Gross Incomes by
Vending Enterprise Type, Region, and
Ownership Categories, 1977 372
6.33 Tourist Handicraft Sector: Proportion of Vending Subsector Income Generated by Urban
Residents, 1977 373
6.34 Tourist Handicraft Sector: Proportion of Sector Income Generated by Rural Residents,
T a b l e P a g e
6 . 3 5 T o u r i s t H a n d i c r a f t S e c t o r : G r o s s I n c o m e s o f
H a n d i c r a f t ' M a n u f a c t u r i n g ' E n t e r p r i s e s , 1 9 7 7 3 7 6 6 . 3 6 T o u r i s t H a n d i c r a f t S e c t o r : S u m m a r y o f t h e
D i s t r i b u t i o n o f G r o s s T u r n o v e r , 1 9 7 7 3 7 8
6 . 3 7 E n t e r t a i n m e n t G r o u p S e c t o r , 1 9 7 7 3 8 2
7 . 1 T h e F i j i E c o n o m y : G r o s s F o r e i g n E x c h a n g e
E a r n i n g s f r o m T o u r i s m , 1 9 6 3 - 1 9 7 5 3 9 0 7 . 2 T h e F i j i E c o n o m y : M u l t i p l i e r E f f e c t s o n GDP,
G N P , I m p o r t s , L e a k a g e s a n d E m p l o y m e n t , 1 9 7 5 3 9 4 7 . 3 T h e F i j i E c o n o m y : M u l t i p l i e r E f f e c t s o n GDP,
GNP, I m p o r t s , L e a k a g e s a n d E m p l o y m e n t , 1 9 7 5 3 9 5 7 . 4 T h e F i j i T o u r i s t I n d u s t r y : D i s t r i b u t i o n o f
T o u r i s t E x p e n d i t u r e , 1 9 7 7 4 0 1 7 . 5 T h e F i j i E c o n o m y : I n t e r - S e c t o r L i n k a g e s o f
T o u r i s m , 1 9 7 2 4 0 4
7 . 6 T o u r i s t A c c o m m o d a t i o n S e c t o r : P u r c h a s e s o f
F o o d a n d B e v e r a g e s , 1 9 7 6 4 0 5 7 . 7 T o u r i s t A c c o m m o d a t i o n S e c t o r : D i s t r i b u t i o n o f
F o o d a n d B e v e r a g e P u r c h a s e s R e c e i p t s , 1 9 7 6 4 0 6 7 . 8 T o u r i s t A c c o m m o d a t i o n S e c t o r : I n p u t s f o r t h e
C o n s t r u c t i o n o f a S t a n d a r d H o t e l (per R o o m ) ,
1 9 7 6 4 0 8
7 . 9 T h e F i j i E c o n o m y : W a g e a n d S a l a r y E a r n e r s
a n d U n e m p l o y e d P e r s o n s , 1 9 7 4 - 1 9 7 6 4 1 2 7 . 1 0 T h e F i j i E c o n o m y : E m p l o y m e n t D i s t r i b u t i o n ,
1 9 7 6 4 1 3
7 . 1 1 T h e F i j i T o u r i s t I n d u s t r y : F u l l a n d P a r t - T i m e E m p l o y e e s i n D i r e c t a n d I n d i r e c t T o u r i s m
O c c u p a t i o n s , 1 9 7 7 4 1 5
7 . 1 2 T o u r i s m E m p l o y m e n t : P r e v i o u s O c c u p a t i o n s o f C o r a l C o a s t H o t e l a n d D u t y - F r e e S h o p
E m p l o y e e s , 1 9 7 7 4 1 8
7 . 1 3 P r i m a r y T o u r i s m S e c t o r s : C o n t r o l o f T o u r i s t
M o v e m e n t s , 1 9 7 6 4 2 1
7 . 1 4 F i j i T o u r i s m E n t e r p r i s e s : S o u r c e o f L o a n
F i n a n c e , 1 9 7 7 4 2 2
7 . 1 5 F i j i N a t i o n a l P r o v i d e n t F u n d : T o u r i s m
L o a n s , 1 9 7 1 - 1 9 7 6 4 2 5
7 . 1 6 F i j i D e v e l o p m e n t B a n k : T o u r i s m L o a n s ,
Table Page 7.17 The Fiji Government: Administrative
Expenditures on Tourism, 1970-1977 429 7.18 The Fiji Government: Capital Budget
Expenditures on Tourism Related Projects,
1970-1977 431
8.1 The Fiji Tourist Industry: Average Turnover of Tourism Enterprises by Ownership
Categories and Sectors, 1977 443
8.2 The Fiji Tourist Industry: Distribution of Receipts by Ownership Categories and
Sectors, 1977 445
8.3 The Fiji Tourist Industry: Organisational
Hierarchy 448
8.4 The Fiji Tourist Industry Organisational Hierarchy: Distribution of Tourist Receipts,
1977 454
8.5 Tourist Accommodation Sector: Ranking of
Hotel Location Preferences, 1977 460 8.6 Accommodation Sector: Regional Distribution
of Overseas Guests Accommodated, 1971-1975 468 8.7 Accommodation Sector: Regional Distribution
by Turnover and Plant Capacity, 1976 469 8.8 Accommodation Sector: Distribution of
Turnover by Tourist Zones, 1971-1976 471 8.9 The Fiji Tourist Industry: Regional
Distribution of Receipts by Sectors, 1977 472 8.10 The Fiji Tourist Industry: Regional
Distribution of Turnover, 1977 481 8.11 The Fiji Tourist Industry: Regional
Distribution of Direct Employment by Sector,
1977 4 83
8.12 Tourist Purchases: Percentage Distribution Between Metropolitan Country and Fiji Based
Tourism Enterprises, 1977 486
8.13 The Fiji Tourist Industry: Distribution of Tourist Receipts Between Metropolitan and
Fiji National Industry Sectors, 1977 488 8.14 The Fiji Tourist Industry: International and
National Distribution of Receipts by Foreign
and Local Enterprises, 1977 489
8.15 The Fiji Tourist Industry: International and National Distribution of Receipts by Enterprise
LIST OF FIGURES
Figure Page
1—
1
•
C
M
I n t e r n a t i o n a l T o u r i s t I n d u s t r y I n t e r a c t i o n F l o w s 79a
2.2 A M o d e l o f A r t i c u l a t i o n B e t w e e n t h e M e t r o p o l i t a n a n d P e r i p h e r y C o m p o n e n t s o f t h e I n t e r n a t i o n a l T o u r i s t I n d u s t r y
83a
2.3 A n E n c l a v e M o d e l o f T o u r i s m in a P e r i p h e r y E c o n o m y 84a
2.4 H y p o t h e s i s e d D i s t r i b u t i o n o f T o u r i s t I n d u s t r y E x p e n d i t u r e
85a i — 1 C O
T h e F i j i I s l a n d s : L o c a t i o n M a p 89
i
—
1 F i j i T o u r i s t A r r i v a l s , 1 9 6 0 - 1 9 7 5 147
C
M
T h e I n t e r - r e l a t i o n s h i p o f F a c t o r s D e t e r m i n i n g T o u r i s t T r a v e l M o t i v a t i o n
160
4.3 I n d u s t r y I n t e r - r e l a t i o n s h i p s in t h e G e n e r a t i o n o f T o u r i s t F l o w s
169
4.4 N a d i I n t e r n a t i o n a l A i r p o r t : I n t e r n a t i o n a l S c h e d u l e d F l i g h t s
183
4.5 S o u t h P a c i f i c S c h e d u l e d A i r l i n e F l i g h t N e t w o r k : Q a n t a s
188
4.6 S o u t h P a c i f i c S c h e d u l e d A i r l i n e F l i g h t N e t w o r k : A i r N e w Z e a l a n d
189
4.7 S o u t h P a c i f i c S c h e d u l e d A i r l i n e F l i g h t N e t w o r k : P a n A m
190
4.8 S o u t h P a c i f i c S c h e d u l e d A i r l i n e F l i g h t N e t w o r k : C P A i r a n d U T A
191
4.9 S o u t h P a c i f i c R e g i o n a l A i r l i n e s F l i g h t N e t w o r k s 206
4.10 F i j i V i s i t o r A r r i v a l s : C o u n t r y o f O r i g i n o f M a j o r T o u r i s t F l o w s , 1 9 6 0 - 1 9 7 5
213
7.1 L i n k a g e s D e t e r m i n i n g t h e ' T a k e - o f f ' P o i n t o f T o u r i s m D e v e l o p m e n t i n F i j i
388
8.1 F i j i : L o c a t i o n o f U r b a n C e n t r e s , T r a n s p o r t I n f r a s t r u c t u r e , a n d E x p o r t C o m m o d i t i e s , 1 9 7 7
( C e n t r a l I s l a n d s O n l y )
457
C
M
0
0
F i j i : D i s t r i b u t i o n o f F r e e h o l d L a n d a n d A c c o m m o d a t i o n U n i t s , 1 9 7 7
461
8.3 F i j i : D i s t r i b u t i o n o f T o u r i s t E n t e r p r i s e T u r n o v e r a n d E m p l o y m e n t , 1 9 7 7
A C K N O W L E D G M E N T S
As with all projects of this nature, it is not
possible to mention by name all those individuals who have contributed to the completion of this thesis. I would like, however, to give due recognition to those whose help, assistance and encouragement has been vital over the last three years. First and foremost, I would like to acknowledge the invaluable learning experience gained from working with my two supervisors - Dr Terry McGee and
Professor Gerry Ward. Apart from their formal supervision, I am also reminded of Terry's essential 'help and guidance' during days spent on tropical, sun-soaked coral islands, and Gerry's necessary 'reconnaissance trips' around the sights and resorts of Vi'ti Levu (supervisors are always there when you need them most).
Recognition must also be made of the useful and much appreciated guidance and critical comments of Richard Le Heron and Geoff Thomas (Massey University) and Dick Peet (formerly Clark University). Equally important, has been the advice and help given by Dave Evans, Mike Johnstone,
My gratitude is also extended to those who provided essential technical assistance and office space; in
particular, Derek Medford of the Centre for Applied Studies in Development (USP) and Ron Crocombe of the Institute of Pacific Studies (USP). Many thanks also go to Marianne, Pearl, Elizabeth and Rowena who have laboured over their typewriters during various stages of this dissertation, and to Jenny Baines for assistance with field surveys.
It was during the fieldwork stage of my research, however, where the generous assistance of so many people
in Fiji proved invaluable. From the various government offices, mention must be made of:
Bob Dods and Raj Singh of the Ministry of
Communications, Works and Tourism; Mr Mark Sturton of the Central Planning Office; Mr C. Wooley, Mr Khan, and Mr G.B. Singh of the Ministry of Customs, Excise and Immigration; Mr Graham Henry, general manager of the Electronic Data Processing Computer Centre;
Mr S. Siwatubau of the Ministry of Finance; Dr Graeme
Baines, the Government Environmental Officer; Mr J. Narian, Chief Draughtsman with the Ministry of Lands and Mineral Resources; Mr Jo Kamikamica and Savi Rohlia of the
Native Lands Trust Board; Mr Ratilal Lodhia, the
Similar acknowledgement is made of the contribu tions made by representatives of Fiji's tourist industry. I am especially grateful to the following: Mr Vinod Gokal, President of the Fiji Duty Free Dealers Association;
Mr Don Lane, President of the Fiji Hoteliers Association; Mr I. Volavola, President of the Fiji Hotel and Catering Employees Union; Mr Dick Warner, President of the Society of Fiji Travel Agents; and the staff of the Fiji Visitors Bureau, particularly Paddy Doyle, Steve Yaqona and Kereni, Lili and Tui. In addition, a great deal of appreciation is extended to all those proprietors who so readily
assisted me in my quest for information, and those hotel and tour company managers who kindly gave various assist ance and tariff concessions in the course of my fieldwork.
Finally, appreciation and many thanks must go to those friends and colleagues from the Department of Human Geography. In particular, I thank them for the memories of frisbee throwing at the 'McGee Oval', numerous barbeques
at Angela and Dave's, squash with George, pizza parties, weekends in the snow at Kosciusko, the various culinary delights of Elspeth, Ling, Anne, Mike and Sally, Christmas with Jo and John, and those cosy evenings over bottles of
port. And last but not least, due recognition must go to Sue, my mate and field helper during those three years, and, of course, the Australian National University for financing my research.
I NT R O D U C T I O N
Any attempt at understanding, let alone solving, the intractable problems of global inequality and national development should recognise, at any scale of observation, the intrinsic vulnerability of the poor and disadvantaged. Economic vulnerability of poor countries is reflected
most profoundly in their obligations to '... accept [from a position of weakness] the fundamentally competitive nature of the economic world1'(Goulet, 1971: 48). It is this implied interconnection between inequality and poor and rich country interaction, this 'interdependent
development' (Brookfield, 1975: 166-209), that is at the centre of the debate over global poverty. This is a debate that has labelled the condition of poor countries as one of 'underdevelopment', and underdevelopment itself as a
'... product of a specific development, which is most
closely connected with, moreover derived from, the develop ment of [the] capitalist world economy' (Szentes, 1971: 132).
Accepting the implication that the causes and attendent processes of underdevelopment can be analysed with direct reference to interaction between 'developed'
linkages. In particular, attention given to development issues from a geographical perspective may start from the acknowledgement that:
Third World space is first characterised by the fact that it is organised and reorganised as a function of distant interests, most often on a global scale.
(Santos, 1975a: 22.)
To investigate such international linkages, a broad holistic perspective has been employed. Use has been made of a theoretical framework that is explicitly designed to inquire into the fundamental causes of underdevelopment by addressing itself directly to the essence of the prevailing mode of production and to the political economy of the
development context in question. As such, the framework incorporates consideration of the historical, global, class and sectoral dimensions of the development context, and considers tourism as one manifestation of a particular economic system. Within the frame of reference for this thesis, such an approach has three advantages:
(1) [it] recognises a contemporary reality, the disadvantageous situation of people in underdeveloped countries with respect to the control and use of resources; (2) it exposes the structure of relations in the world's political economy which pressure and
intensify that disadvantageous situation; and (3) it lends itself naturally to a definition of development that is based on human well-being.
(de Souza and Porter, 1974: 70.)
development, are seen as being largely determined by the structural characteristics of that industry and the pre vailing mode of production (Peet, 1978; Soja, 1978). Rather than restricting investigation to the spatial attributes of surface phenomena, attention can thus be focussed on the processes and linkages that determine these social, economic and spatial structures (Harvey, 1975; McGee, 1974; Santos, O'Keefe and Peet (eds) , 1977; Santos and Peet (eds), 1977; Slater, 1975a, 1975b). This study, therefore, sets out to investigate the interaction between tourism and Fiji development in the broadest rele vant contexts.
■k k k
Despite work by economists (eg Bryden, 1973; Gray, 1974), sociologists (eg Cohen, 1972, 1974; Sutton, 1976) and international agencies (eg UNCTAD, 1973), little research by geographers has been directed at evaluating the development implications of tourism in Third World contexts. Apart from isolated attempts to develop an . analytical framework within the realm of underdevelopment theory (eg Hills and Lundgren, 1977) , English language geographers have by and large confined international
tourism research to statistical analyses of international tourist flows and transport networks between developed countries (Mately, 1976: 6-11; Pollard, 1976; Williams and Zelinsky, 1970). 'Gravity models' have been deployed to facilitate the prediction of tourist flows. Such
attributes of tourist flow volumes, transport network capacities and 'intervening obstacles' such as alterna tive attractions between a tourist's country of origin and destination (Mately, 1976: 14-17). Other studies have detailed the regional impact of tourism on employ ment, migration and land use patterns. Others have
investigated the impact of international boundaries on tourist movements and the 'spatial behaviour of leisure time activities' (Mately, 1972: 21). A further range of tourism studies are more closely allied to 'recreation geography' (eg Murphy and Rosenblood, 1974).
In an attempt to go beyond a concern with spatial forms and patterns associated with tourism, the focus of this thesis is directed at the mechanisms and agents which control and determine these observed patterns and
the ends to which these controls are used. More precisely, this study investigates the commercial interactions between tourist industry components in Fiji and metropolitan
countries, the linkages between the different sectors of the tourist industry, linkages between what may be called
'formal' and 'informal' tourist industry enterprises, the intra-national distribution of tourism activity and the differential participation within the industry of Fiji's various classes and racial groups.
manifestations and consequences of tourism, several key themes have been selected for investigation. These in clude how international linkages determine the structure and viability of Fiji’s tourist industry, and to whose benefit these linkages primarily operate. Following
from this, attention is given to the extent and types of income earning opportunities that have been made available to the various sections of Fiji's business community.
At a more general level, the circumstances that have led to tourism development in Fiji are examined so as to gain an understanding of the roles the industry plays in a peripheral capitalist economy.
These and other issues are examined in a manner which permits the inter-relationships both within the
industry, and between the industry and Fiji, to be as fully explored as possible. Chapter 1 discusses the potential development contribution of tourism, and the way the industry has 'performed' in Third World countries. This account is expanded in the second half of the same chapter into an analysis of the internal organisation of the industry. The purpose of this section is to indi
cate several aspects of the industry's commercial dynamics which are highly influential in determining how tourism is manifest in peripheral economies.
This overview is taken one step further in
organisational structure are set within the framework of underdevelopment theory. Using the basic tenets of this theory, a hypothesised model of tourism in a peri pheral economy is constructed which then provides the
framework for formulating key propositions regarding the industry's expected behaviour in a small island state. As such, this chapter sets the guidelines for the ensuing empirical investigation of the Fiji case study. Chapter 3
follows directly from these key propositions. It gives an extensive historical account of the development of the Fiji economy and those factors that led to the introduction of tourism. The chapter serves the dual purpose of illus trating the political and economic context within which tourism has been incorporated and the specific roles attri butable to tourism. This historical account also shows how the present day organisational structure of Fiji's tourism evolved, and indicates the repercussions of these structural characteristics.
It is an examination of these structural character istics that forms the basis of the following three
chapters on the various sectors and components of Fiji's tourism. Chapter 4 investigates the international link ages between Fiji's tourist industry, the tourist market countries and metropolitan tourism companies. The
Chapter 5 is an analysis of what have been called 'primary tourism sectors', that is, those components of the industry that are pivotal in determining tourist movements and
expenditures within Fiji. As such, these sectors are responsible for the type of tourist product available,
local transport facilities and the organisation of tourists' travel experiences (through package tours, for example).
The central theme of this chapter is how processes internal to the industry determine which social and commercial
groups participate in, and benefit from, these primary sector activities. Chapter 6 provides a similar analysis of the 'secondary tourism sectors'. These are tourist orientated activities which have evolved largely as a result of the prior development of the primary tourism sectors. Such activities centre around those incidental areas of tourist expenditures which, while not essential tourist services, make a Fiji holiday more varied for the tourist and at the same time provide extensive income earning opportunities for local entrepreneurs.
generation, employment creation and infrastructure requirements, are investigated.
Finally, in Chapter 8 the various themes of the thesis are drawn together. Aggregating empirical findings from previous chapters, it gives details of the overall sectoral and social group distribution of commercial power and income turnover within the industry at the
C H A P T E R 1
T O U R I S M IN P E R I P H E R A L E C O N O M I E S
The decades since World War II have been ones of considerable expansion in the global economy. Growth
,
however, has been concentrated in one part of the globalsystem, the centre or metropolitan economies, with a corres ponding lag in the periphery'*' which has resulted in the
increasing polarisation between centre and periphery in relative economic capacity, external trade flows and in the distribution of foreign investment and international reserves (Amin, 1974, 1976; Bairoch, 1975; Emmanuel, 1972; Jalee, 1969; Pinto and Knakal, 1973).
This 'marginalisation' process (Pinto and Knakal, 1973) is one in which the periphery appears decreasingly
'necessary' to the centre for the provision of raw materials and export markets for goods and capital *(Emmanuel, 1974: 71-72). Simultaneously, however, has been the counter trend of increased penetration of metropolitan capital into
strategic and high growth sectors of peripheral economies
1 The terms 'centre' and 'metropolitan' economies as used here include the core 'western block' economies of North America, Europe, Japan and Australasia. European
socialist block countries are excluded. The terms
(Adam, 1975; Bairoch, 1975; Emmanuel, 1974; McMichael, <et at,, 1974; Warren, 1973). This importation of foreign capital is largely a function of productive factor costs and conditions in the periphery relative to those prevailing in metropolitan economies (Adam, 1975: 91-92; Barratt-Brown, 1974: 271). The process can be seen as the selective incor poration and grafting of peripheral economies into extensions of metropolitan productive systems. Incorporation has been selective depending on how local conditions accord with the requirements of various metropolitan capitals (agricultural, industrial, finance, tourism)’. Third World economies are therefore exposed to foreign investment on terms largely determined by owners of that capital.
Following from this investment, a relatively high degree of domestic appropriation is occasioned by the con ditions under which foreign capital is deployed. Once inte grated into strategic sectors of a peripheral economy,
The creation of these 'distorted' productive bases has resulted in a series of common development problems for Third World countries. Major areas of concern are, and
increasingly will be : the efficient generation of foreign exchange for internal development financing;the necessity to ensure as far as possible extensive linkages between export industries and the internal economy; the need for access to foreign capital on equitable and appropriate
terms; the diversification of economies away from reliance on one or a few key economic activities; and increased and guaranteed access to metropolitan markets for the export products of the periphery at equitable prices to the producers.
One means by which this complex of problems is being tackled in many underdeveloped countries has been the
adoption and encouragement of tourism.
T O U R I S M AND D E V E L O P M E N T : A R E V I E W
marketing of exports to metropolitan countries.'*' For tradi
tional raw material exports, there are restrictions due to
the protection of domestic metropolitan country producers
and competition from substitutes developed and deployed in
the metropoles. For many commodities there is excessive
competition between Third World producers. The trading
position of these countries is further exacerbated by ad
verse terms of trade for exports relative to capital goods
imports from metropolitan suppliers.
Tourism has a significantly different set of market
conditions. These include the very rapid growth rates that
the industry has exhibited in both the centre and periphery
over the last two decades. Between 1950 and 1970, total
2
international tourist expenditures increased at a higher
annual growth rate than that of national incomes (Peters,
1969: 21; UNCTAD, 1973: 5-6). Furthermore, between 1965
and 1971, Third World countries 'increased their share of
this $29 billion market from 16.6% to 1 9 %2%' (Turner, 1976:
253).
1 Tourism is categorised as an export industry by virtue of
the fact that exports of 'invisible' services (such as tourism)qre not qualitatively different from export of
material goods. 'The rental of a hotel room to a foreign
resident (for all the peculiarity of the consumer coming to the product, rather than the usual other way around) has conceptually and practically the same economic effects as the rental of a freighter to a foreign shipper, or the
sale of a bag of copra to a foreign soap manufacturer.' (Schiavo-Campo, 1978a: 7.)
2 A tourist is defined as '... a voluntary, temporary
Participation by a country in the industry is
facilitated by the relative ease of attracting capital given tourism's actual and potential market growth. Expansion is also enhanced by the relative absence of international
restrictions of tourist flows. Adoption of tourism by a peripheral country as a development strategy, however, necessitates evaluating the costs and benefits of the
industry in relation to national economic needs and social and political considerations. The following pages review these costs and benefits in light of documented experience from the Third World, particularly small island economies.
1. F o r e i g n E x c h a n g e G e n e r a t i o n
In most underdeveloped countries, high priority is given to industries contributing to a reduction in balance of payments deficits caused by excess importation of goods relative to export earnings. Tourism's capacity to generate net foreign exchange earnings has varied*in large degree with the ability of a country to provide industry inputs
from its own domestic productive capacity. Data from United Nations sources suggest
... that in island economies net foreign exchange proceeds from foreign tourism generally range from 50 to 70 per cent of gross receipts, while in other developing countries the proportion may well be rather higher - perhaps 70-80 per cent ...
(UNCTAD, 1973: 14.)
Substantial leakages in exchange earnings, however, can
plant. The level of these imports is related to the quality of the tourist environment created. More luxurious hotels,
for example, demand a high proportion of inputs that are un likely to be available from domestic suppliers. The Istanbul Hilton Hotel required an import content of nearly 90 per cent
(Diamond, 1977: 551). In general, '... the import content of investment in tourism is generally higher than that for current inputs ...' (UNCTAD, 1973: 6) and in small island economies may reach substantial proportions. By way of com pensation it has been found that foreign exchange costs may be recouped in a relatively short time: an average of two to four years for a first class hotel (UNCTAD, 1973: 6). Furthermore, experience in some countries^ points to the fact that for the hotel sector the amount of capital re quired to create a unit of net foreign exchange is lower than for other sectors (UNCTAD, 1973: 16-18). Net exchange earnings can, however, be seriously reduced by the necessity to provide costly infrastructural facilities to complement tourism plant. It has been calculated that infrastructure costs in the medium term may represent 20-30 per cent of accommodation plant costs (Bryden, 1973: 140; Diamond, 1977: 549; UNCTAD, 1973: 56). Much of the criticism directed at tourism is due to this infrastructure burden which can impose serious financial strains on underdeveloped
countries both in accumulating the necessary capital and
servicing related loans. Serious distortions in the alloca
tion of scarce funds between competing economic priorities
may also occur (Universitas Udayana et al., 1975: 731).
In small countries, the cost of airport construction
and operating expenditures can be relatively high since
... small territories ... are by and large, stop-over points rather than terminal points
in a route network. The size and speed of
aircraft, and consequently the runway length and load capability and other technical
characteristics are determined not mainly by the number of passengers disembarking at any one point, but by the number of passengers on the route as a whole."
(Bryden, 1973: 88.)
Transport facilities are/ of course/ only part of the necessary
expenditure on tourism infrastructure. Estimates of capital
expenditure costs must include the provision of water,
sewerage, communications and power facilities as well as
loan repayments costs. Aggregating these costs, Bryden
(1973: 143) calculated that infrastructure investment in
the Caribbean was ' . . . in the region of 80 per cent . .-. '
of hotel capital costs.
Foreign exchange leakages are also incurred from
the increased consumption of imports by locals. This occurs
both from the increased income available from (direct and
indirect) tourism employment and the assumed 'demonstration
effect' on local consumption patterns initiated by highly
2. F o r e i g n I n v e s t m e n t
Foreign capital and attendent modes of corporate behaviour are undoubtedly of major importance in most Third World tourist destinations (Bryden, 1973: 121; Turner,
197 6) . There is no a priori reason, however, to assume that foreign investment in tourism is necessarily more advan
tageous to recipient countries than capital allocated to other economic sectors. The impact of foreign capital on the domestic economy will be related to the gross investment involved. This impact can be compared with investment in other export industries. Tourism capital's impact will depend on its degree of integration with the domestic economy and the extent to which supporting supply and ser vice industries are already available. For any one economy, capital/output ratios may show tourism to be a less pro ductive means of utilising foreign capital than alternative industries. Nevertheless, if a periphery economy wants foreign investment it may have to accept#a sectoral alloca tion which reflects investors' preferences irrespective of tourism's performance in this regard.
income bracket tourists. The capital intensive nature of such accommodation and associated tourist life-styles lead to a high demand for imported goods and services.
Emphasis on high quality management and personal client service may also lead foreign owned hotels to employ a high proportion of imported staff. Their presence not only helps to ensure the upholding of a hotel's reputation in the eyes of tourists, but represents a potential loss of foreign exchange through repatriation of salaries and
the high import propensity of expatriate life styles.
While no comparative data are available, the presence of foreign companies inevitably involves leakages of foreign exchange through repatriation of profits and other invest ment returns. Commenting on several Commonwealth Caribbean
nations, Bryden (1973: 31) states:
First, taxes derived from much of the new [foreign] investment are a very much smaller proportion of profits than is the case in the economy as a whole. Second, the control of a high proportion of incremental profits, and therefore potential 'domestic' savings, lies in the hands of non-nationals. To the extent that these profits are remitted over seas the gap between GDP and national income is widened, and the dependence on foreign capital necessitates the continuance and even strengthening of concessions, and forces the government to pursue even more 'open' policies which receive the approval of foreign
investors, but which may not be in the long run interests of the indigenous population.
3. Impact on Domestic Product
coffee or petroleum industries, for example, largely
generate income from that one sector. Tourism is typically a conglomerate of diverse industries such as accommodation, entertainment, retailing, banking, travel, restaurants and transportation. Together these activities co-ordinate to form a tourism product group. Hence tourist expenditure is usually more widely spread through an economy than other export enclave industries. Tourism's potential contribution to domestic product is particularly important when it is
remembered that only part of the final output of the various tourism sectors is sold to tourists. Not only do locals
have the opportunity to purchase tourism products, but many transport, retailing and accommodation facilities would not have been provided without the stimulus of a tourist trade. The provision of international air transportation linkages to small Pacific island states is particularly noteworthy in this respect.
In small island economies, tourism's contribution to Gross National Product is considerably greater. This is amply demonstrated by the following note from Le Fevre
(1975a:88) on the Cook Islands' economy.
On the basis of ... estimates (i.e. 12,000 visitors a year) the total supply of goods and services into the Cook's economy will need to rise by a fairly staggering 26.09 per cent. The estimates anticipate an increase in local supply of 22.92 per cent and a residual increase in imports of
30.58 per cent.
A similar order of impact is gbservable in the Caribbean. Tourism's contribution to Gross Domestic Product in the Bahamas was 45 per cent in 1968, 15 per cent in Trinidad and Tobago, and over 20 per cent in Antigua in 1967
(UNCTAD, 1973: 19). In 1967, hotels contributed 6.2 per cent of Gross National Product in the Cayman Islands and 14.6 per cent in the British Virgin Islands. Tourism's contribution to tertiary sector activity was 40 per cent in the Windward Islands, over 60 per cent .in the Leeward Islands and 30 per cent in the Cayman Islands (Bryden, 1973: 27).
Tourism's net domestic impact, however, is not always as extensive or widespread as expected.
[In the Caribbean] ... nowhere has the ... prediction that tourism stimulates local economies materialised. Indeed local agricultural economies have had little access to the tourist market.
Nor has tourism stimulated to any significant extent the local artisan economy ... In-bond shops in the West Indies offer more attractive luxury merchandise to the tourist, free of
duty, and other imports. Foreign imports are sold to foreign visitors in shops largely expatriate-owned ... Japanese photographic and electronic equipment, French perfumes, Swiss watches, English dinnerware and Scotch whiskies account for a preponderance of tourist expendi tures ... the token purchase of 'native handicraft' is often a coincidental afterthought.
(Perez, 1974: 478.)
In Bali, on the other hand, indigenous producers of both traditional and modern artifacts attract approximately 20 per cent of tourist expenditures (Universitas Udayana et al. , 1975: 31). In general, however, while tourism may create opportunities for local entrepreneurs, it appears
from the literature that indigenous participation is marginal in relation to gross industry turnovers. This has been
demonstrated by Hannerz (1973: 110-111) in his work on the Cayman Islands:
To the extent that participation in the tourist industry requires great financial assets and cosmopolitan expertise (and to the extent that it remains based on private enterprise) it
seems rather likely to come under strong foreign influence and/or maintain or even increase
existing inequalities in the local society.
Even such forms of self-employment as arranging tours, driving a taxi cab or renting some
cottages are vulnerable, as larger hotels and other organisations often tend to encapsulate visitors in the variety of their own arrange ments, placing them out of reach for minor enterpreneurs in the host society.
through the multiplier effect of tourism investment and tourist expenditures. Data from the Caribbean (Bryden, 1973: 158-163) show a range in the tourist multiplier from 0.65 in the Cayman Islands - a very 'open economy', to 0.88 for Antigua, and up to 1.19 for Dominica, a small island with a 'strong economic structure'. It should be remembered, however, that there are serious theoretical doubts as to the usefulness of the multiplier concept in assessing tourism's contribution to the economy (Bryden and Faber, 1971; Bryden, 1973; Levitt and Gulhati, 1970). Attempts to make the multiplier model more realistic tend to reduce the industry's apparent economic benefits. The multiplier for Antigua of 0.88 was reduced to 0.58 when such an exercise was carried out (Bryden, 1973: 158-161).
Tourism can also induce a range of serious domestic diseconomies. In particular, the industry has been the cause of inflationary pressures. When demand is led by tourist spending, the price of locally consumed products can be adversely affected. In Bali, for example, the
... attendent inflation has sharply raised retail prices of most essential commodities. Many farmers have run deeply into debt in consequence. To repay, they are forced to sell their crop for cash early - even while they are still in the ground. The wholesale market becomes glutted and prices fall.
But by now the small farmer is in a pincer grip. His only recourse is to sell his higher priced, more nutritious crops ... and feed his family on what is left ...
In Tahiti, the abandonment of agriculture by indigenes for
higher wage tourist industry occupations led to local food
price rises which in turn led to further imports of high
cost imports (Robineau, 1973: 62-63).
In Bermuda, the rapid expansion of the industry, w i t h
out a related labour supply on the island to service it,led
to 'galloping wage inflation' as employers out-bid each
other for the limited labour resources available (Young,
1975: 49). Speculative land sales in the Commonwealth
Caribbean resulted in it being 'impossible for a local
resident to acquire land to build a house or for any other
purpose in his own country, and in addition the associated
problem of large scale alienation of land' (Bryden, 1973:
94). In the Bahamas the local population '... in search of
cheaper land [has been] pushed further into the mountainous(sic)
interior away from the coast' (Perez, 1974: 477).
4 . Employment Generation
Any tourism investment will generate job opportu
nities in a destination country. The number of jobs created
depends on the extent of tourism investment, the industry's
rate of expansion, the labour intensity of tourism plant
and labour productivity. Employment is generated both in
the primary tourist plant and industry support sectors, and
additional jobs are created from the effects of the multi
plier and from the construction of tourism plant. The
be twice that of the employment generated directly in the tourist sector.' (UNCTAD, 1973: 23). Evaluation of tourism's impact on employment (and unemployment) centres on the labour intensity of the industry in terms of jobs created per unit of investment and per increment of
domestic product.
Advocates of the industry have tended to stress the capacity of tourism to create jobs in optimisitc terms. Compared with other industries, tourism is seen as '... intrinsically more labour intensive [and able] to provide more employment and therefore to be more efficient in
spreading the benefits of development around' (Elkan, 1975: 122). Evidence for Hawaii showed the industry to be rela tively labour intensive compared with the sugar industry
(UNCTAD, 1973: 23). A study in Kenya evaluated tourism as having a favourable impact on employment relative to the private sector as a whole (UNCTAD, 1973: 24).
In terms of capital/employment ratios, however, Elkan calculated that, in 1971, the cost of a tourism work place was £3,304 compared with £1,233 in the 'manu
facturing and repair' sector. These data implied that '... the hotel industry is more capital intensive than supposed ...' (Elkan, 1975: 128).^
Investment costs per man-year of work created in the Commonwealth Caribbean were estimated to range from
$20,000 to $30,000 (Bryden, 1973: 132); and for Tunisia between $13,300 and $20,300 compared with a manufacturing
industry figure of approximately $12,700 in the same country (Bugnicourt, 1977: 1). It is also claimed that ' ... as a rule, industry offers better chances than tourism to
increase the productivity of labour (Hoffman, 1971: 85). In compensation, tourism has provided definite in creases in absolute employment opportunities in rural areas of many periphery economies - on the coast and near game reserves in Kenya, for example, and on more isolated coastal strips and offshore islands in the South Pacific and
Caribbean.
The crucial point for Third World planners implied from these data is that no inference can be made that
tourism has inherent advantages in employment generation over other industries. Related to this i*s the possibility that where under-employment of labour in tourism supply industries is evident
... the tourist-induced increase in the
demand for home products is likely to result in a greater use of internal capacity and higher incomes for persons already in employment rather than in an increase in the number of jobs available.
(Hoffman, 1971: 85.)
With regard to employment created per unit of capital
the high capital costs of tourist plant itself and to
tourist-specific infrastructure and related expenditures.
It should also be recognised that, particularly in small
island economies, the more highly skilled categories of
labour demanded by tourism will have a high opportunity cost.
In general, the literature expresses disappointment
over tourism's employment creation capacity. This dis
appointment has often turned to cynicism with regard to
the nature of tourism jobs available to indigenes. Diamond
(1977: 544; 549) has commented on the apparent failure of
tourism in Turkey to reach expected levels of employment
provision. He also points out problems associated with
characteristic seasonality of labour requirements and the
inability of labour to meet minimum industry skills such
as language requirements. Perez (1974: 476) states that
in the West Indies
Tourism-generated employment is reminiscent of the colonial monoculture system which produced cyclical employment patterns.
Employment and income tended to concentrate in the winter months ... followed frequently by months of precarious marginality.1
Furthermore,
1 The issue of seasonality and employment is recognised
as a continual and inherent problem of tourism. While
it is almost always viewed in an adverse light by the
industry, Peil (1977: 25-29) presents a case study
[t]ourist employment casts West Indians in the capacity of waiters, maids, bartenders, dishwashers, chauffeurs and porters,
receiving low wages in inflationary economies. An entire sector of West
Indian society survives by gratifying the wants and needs of vacationing white
foreigners.1
Bryden (1973: 126-132) confirms that the local component of the tourism workforce is over represented in menial unskilled occupations, that expatriates are over represented in highly paid professional positions, and that employment tends to be highly seasonal - varying from 1.4 employees per hotel room in the peak season to 0.9 em ployees per room in the off-season.
Data from Tahiti show a very obvious ethnic division of labour within the industry's workforce, with the least attractive occupations and lowest remuneration going to the local Polynesians (Robineau, 1975: 66-67). A distinctly worse situation appears to exist for Polynesians and other groups (particularly migrants) in the Hawaiian tourist industry. Not only does a clear ethnic and class defined division of labour exist, but employees at the base of the workforce pyramid appear to be subject to particularly severe exploitation (Kent, 1975: 188-190).