Is there a future for the tourism industry in Guyana?
Sunday Perspective
Misconceptions, mismanagement, mishandling and 'miss de boat' is the true story so far with Guyana's tourism development. How can you see this? For a start check the numbers for annual visitor arrivals at the airport. The last time we had an increase in arrivals over the previous year was in 1994 when there was a five per cent increase to ll3,000 visitors. Every year since then saw a reduction in the number of visitors to Guyana. By 1998 we fell to below 65,000 visitor arrivals. We are well on the way this year to having less than half the visitors come to Guyana (55,000) compared to five years ago in 1994, if the trend in the numbers for the first seven months of 1999 continues through November. There is hope for high millennium travel in December. With present visitor arrivals down to half of five years ago, it is no surprise to hear from Georgetown hotels that they face cash flow problems. Reliable sources say that there is an ongoing price war to fill empty hotel rooms. The solution comes when visitor arrivals increase, as indeed they will; the big question is when? Ask the main tour operators about business this year, and their consensus is that volume is down at least 50 per cent - less than half of last year's business. This year's political unrest caused negative stories in the newspapers and on the Internet. Travel advisories came against non-essential travel to Guyana, and with all that nobody connected to our tourism is surprised by the gross drop in business. Keep up the unrest and keep Guyana on its knees. Is there any need to detail the drop in business experienced by the interior resorts? No surprise there. What did surprise was the lack of business experienced by the jet boats that sell the local market. This is a fairly expensive day trip for most families, who do enjoy and are satisfied with the experience. But it is not the sort of day that most people wish to repeat or can afford in a hurry. With unsettled or difficult economic circumstances faced by many families at present, this successful business in tourism is now having a hard time selling its product.
Where there is hope... And hope for the future? Guyana is not going to sink and disappear. We all know life and business is a process of constant change with varying cycles of good and bad. The big problem is that nobody can say how long this bad cycle will last except that it looks like a long haul. With failure in tourism business clearly so bad, the main hope is that this failure and the general drop in the economy will, sooner rather than later, cause the Government to completely revisit the private sector, and what it will really take to increase the Gross National Product (GNP) of Guyana. What will happen if the Government concludes that it can no longer best serve the small man in Guyana by sticking with the old thoughts, ways and dogma regarding the economy? What happens if to win elections the PPP must avoid a large 'stay at home' vote soured by ongoing economic failure in Guyana? And what if to avoid such failure the old guard yields to new thinking outside their traditional box? There are bitter pills here to swallow when it means having to reverse some of the very fundamentals of a political party. For example, the new economic way could look a lot like how the PNC was developing the economy when the PPP took over. Interesting too is that Joey Jagan is not as easily dismissed as a 'maverick' or 'loose cannon' if much of what he was first to champion within the People's Progressive Party (PPP) for economic development is seen in new answers. An aside - should the party make this transition in economic policy, which will take considerable wisdom and courage, Joey Jagan, with his abundant charisma and natural sales ability, would make a superb roving ambassador to sell Guyana for investment and tourism; he could make a significant, tangible contribution.
Tourism can develop the economy If the public and private sectors can come together in a strong partnership with clearly defined responsibilities for each partner - if they can together then form a vision, and manage the development of the industry in a wise manner, this non-consumptive use of our Amazon interior beauty sites offers essential and vast new scope for investors and the development of the economy. The magical and indisputable aspect that captures your attention is that done right, this particular chance for Guyana can only grow and become more and more valuable and useful for each new generation of Guyanese. Conversely those people who are crippling the industry with incompetence, selfish ignorance and laziness are destroying wonderful scope for more generations of Guyanese than they can understand. This article only represents one private sector individual speaking out on this subject. What is important and helpful is to have other private sector individuals with different views, a public servant in tourism, another in finance, an appropriate person in leadership of each of the major political parties to all make open and frank contributions on the subject. Major change is needed: can enough occur to get tourism back on a positive track? Why is this so important to all Guyanese? Some of Guyana's established industries face unfortunate difficulties with negative effects that must be taken into account. Surely the prudent path for any Government is to start work immediately on developing other options that can take up slack when an established industry contracts? The bottom has fallen out of the gold market with complex circumstances, which suggest permanent changes that will bring about a new set of parameters in this industry. These are not helpful to Guyana. Ultimately only mines with the lowest cost of production will survive. Both the rice and sugar industries live on special, protected markets with prices that are often double the price the product brings in the open market; earlier this year the open market sugar price was a quarter of our protected price. It is unlikely that either industry can survive if their production must sell in the open world market. Caribbean bananas enjoyed similar protection and prices, but the politics and economics that brought about such arrangements changed, and the open market direction world trade is taking threatens these old agreements. The rice and sugar industries are uncomfortable knowing their turn to face these issues must come. To conclude that they will inevitably lose special prices is not unreasonable. The logical question - since our existing tourist industry is in a shambles - is what is and where are things going wrong, and can they be corrected? If the public and private sectors cannot come together in a strong partnership, they will continue to argue constantly with confused responsibilities for each partner, and if they cannot then together hold a vision and manage the development of the industry in a wise manner, the shambles will never be adequately corrected. The demanding and pioneering nature of Guyana's Amazon tourist industry mandates that tourism will always be a failure in Guyana without strong partnership and wise management from the public and private sectors. If the considered evaluation is that the disappointment will go on, Government and the private sector should then cut their losses and divert their money and energy elsewhere until the capacity to meet the required standards is possible.
The problem of the public sector But it is not seen as intelligent, useful or appropriate, far less essential, to ask the private sector to provide information regarding this practical experience and knowledge gained working directly with the tourist. TAG has tried every which way possible to get such communication going with no success. The private sector is seen simply as more work and a pain in the neck for the public sector. When you get down to frank talk with them, as this writer has when President of TAG, an abysmal attitude is displayed. "Why work hard to do it right, to make you rich?" "You need us more than we need you". "When you are long gone we will still be here". Well, at least they got that last one right! But at the end what is important is that they make unnecessary, big mistakes by not using and applying information that only comes from hands-on experience in the market place. They often remain with misconceptions that cause them to make priorities, decisions, policies, and plans that are inadequate and even counter-productive and a hindrance to progress.
Misconceptions We all first know tourism through the sea and sand tourism of the Caribbean. The common error is to equate that tourism directly with our Amazon tourism. Problems and damage come when conclusions are applied that are valid in Caribbean tourism, but are simply wrong for Guyana. It is surprising how common this is, including from 'experts' who come in from international organisations to direct and advise us. The Caribbean was and is blessed with an easy sell in tourism; spend two months in a New York winter in a foot of snow and you soon know. So easy in fact, they could screw it up and still succeed. The sea and sand experience is simply out the guestroom door on to the beach; it needs no explanation or guiding. On the other hand, Amazon tourism needs high quality guiding constantly, both for interesting explanations to properly provide the experience, and for safety. Amazon is not an easy sell with immediate appeal to the mass market, particularly in these early days of development. Sea and sand can be bought from any travel agent or airline, and the client can leave on a moment's notice packing only a carry-on bag; Amazon requires considerable planning with a special agent, and can require taking medication and buying special gear before leaving. Sea and sand can be a weekend break; Amazon requires at least a week of vacation time. Sea and sand with kids is just great; Amazon with children under 12 years may be difficult, or need special arrangements. Amazon tourism must be completely all-inclusive and the lodges self-sufficient at almost all locations; there is no other restaurant down the trail. All-inclusive is an option in sea and sand. Sea and sand is a huge market with high volume and low mark-ups; Amazon is a small niche or speciality market with small volume since too many at one time spoil the experience. Amazon incurs higher markups. A 200-unit Amazon lodge is unlikely. The guest profiles of the two are different, and management and marketing are different. It is a great pity our understanding came through the sea and sand experience and not through African Safari Tourism. Another area of misconception is the degree of risk in tourism business, and the profit levels required to compensate that risk. There are many aspects that can have a negative effect on all tourist business that are beyond control or influence. Political unrest and crime levels in the country are two prime examples relevant to Guyana. The tourist is a fickle customer, quick to change plans knowing there are many other good options; there is fierce competition.
High risks To understand the profit required to attract Guyana tourism investment, ask what is the return the CDC's money gets going into GEC - a pretty safe bet as an essential utility monopoly with Government as their partner. Double that return, and then you may be able to attract the CDC themselves into the far higher risk of Guyana tourism. The CDC has tremendous experience in African Safari Tourism, and would make a great partner to help Guyana develop this industry. Achieving such high profits starting from present conditions is impossible. This is why generous incentives are essential from Government to attract new investment for this pioneering industry. Government lost a lot of revenue in the last five years from less arrivals at Timehri, yet displayed a mean-spirited manner and seemed almost obsessed with not being considered as too generous to attract new investment and development. Nothing of real consequence will happen until Government accepts that the new investor in tourism must be helped to get back his entire capital investment in the shortest possible time. This means no duties to keep the capital required small as possible, and no taxes until that capital is returned from profits. Another variety of misconception that is still championed at UG and in the Ministry is expecting easy or high success with twin destination packages. It sounds great - spend time on the beach in Barbados, visit Guyana's Amazon product for something exotic and different, return to the beach before heading home. Unfortunately they are yet to listen to the private sector to hear how this apparent good plan works in practice. In practice such packages usually do not work well. Who takes the blame and compensates the guest when something goes wrong say with flight connections? Very tough consumer laws protect guests in home countries like Germany. As a consequence there are collectable claims when the dissatisfied client returns from vacation. The German sales agent has to settle, and if in turn he has difficulty in collecting on his refund, he stops selling that package. An interesting development is the trouble the travel industry now has with dishonest tourists who travel each year with a camera, but not to record the vacation. They take pictures of anything that can look like a claim. Is the picture from the patio in the brochure much better than from your room patio? 10% refund. Construction going on anywhere at the resort and you weren't told about before hand? Further 25% refund! Barbados or wherever don't really want to sell two country packages anyway; they see that as losing room nights. They are all already promoting their own 'eco-tourism' product to keep market share.
Mismanagement Minister Shree Chan is very ill at present. He is universally liked within the Tourist Association of Guyana (TAG) and is seen as a Minister who means well, and has made himself available at all times to listen to problems. All in TAG wish him a full and complete recovery to good health. And to be sure the Minister faced some civil servants in his ministry with negative attitudes. Very little is implemented; it is the bottleneck and impediment for progress in the industry. It represents the major reason the industry is in a shambles, even with all the turmoil this year. Here are some items taken before the Ministry as much as three years ago to give the reader some insight. The manatee pond at the Botanical Gardens is an unusual tourist attraction, except the garbage in the pond and the filthy water the animals must endure is a total turn-off. The toilets at Kaieteur Falls never work and are a disgraceful mess, and the stink that greets tourists on arrival at our premium site, another turn-off. The garbage at Orinduik and the dangerous, slippery trail down to the falls cannot be fixed. Placing a visitor booth in the arrival hall at Timehri will make visitors feel less anxious and more welcome on arrival. It is like a major project, takes up years of talk, and still remains undone. Ever notice the silly placement of a booth in the alleyway on the way out of the Customs area? Ever notice anyone there to provide service to a visitor? Does this seem like this writer is really down on the civil servants and the Tourism Ministry? They have every right to reply. There are, however, a few questions they should answer. How much did they spend on the cultural extravaganza at Sophia last year in November, and how much came back in revenue? How many people came to visit? What was the point, what were they doing for tourism? Why are they doing it again this year in November? How much will they spend this time? How much money has been lost in the last two years in grants available to Guyana, but not drawn down because they simply did not sign off on the grants in a timely manner? How many duty free applications did they receive in the last five years? How many applications got anything duty free at all? What was the average time from application to the required permission? When potential visitors ask for information on Guyana from the Ministry do they reply? When they do, what is the average time to get out the reply?
Conferences We are missing the boat already. Both the private or public sector now miss important sales and information conferences that are essential if Guyana is to keep up with what is happening in tourism. TAG and the individual businesses are out of money and cannot continue to take up the slack as they did in the past. The way that marketing and sales in the tourist industry is carried out is going through change like never before, both in terms of the speed and the wide manner in which it is happening. The only way to keep up is to go to the conferences, meet and socialise with the actual people making the changes. That is the best way to find out what is really working, how best to spend your money, who does a good job at the best price, and who and what to avoid. On return to Guyana your network is improved and expanded with efficient ways to access information that will solve a problem, find a needed person or thing, get the latest development of particular interest. If you miss conferences, before long you start going backwards. It is two years since anyone has represented Guyana at a Caribbean Hospitality Association (CHA) conference, the private sector counterpart of the CTO. This must leave a void that will damage the industry if not addressed, but nobody has the money any longer to attend. Consider Suriname. They started into Amazon tourism behind us, have a lot less to sell compared to Guyana, but they have passed us and are in front now. When they started out they came to look at us for direction, now we should take a good look at them. Guyana is missing the boat.
A major change? It's about expanding the entire economy, increasing the Gross National Product, diversifying and powering up the private sector, attracting local and foreign investments by giving them everything they want ASAP until new money rolls in and overheats the economy - which is stone cold, dead now. Don't even mention El Nino and Asia again, stop groaning about the New World order and free markets, and just concentrate on getting Guyana HOT. The answers for tourism can only come when the answers for the entire private sector are clearly defined and put to work. Of course keep working on debt reduction on one hand and the new loans on the other to repair the infrastructure, provide employment in the interim. Of course keep working for the small man and the disadvantaged in society. But recognise that in the future, policy that causes the economy to grow, and expands the production of those goods and services which Guyana can sell in the marketplace are essential in the New World Order to help that small man in Guyana. Put the best people and all resources needed for use in tax collecting to make sure the Government gets what is due from the partnership with free enterprise. Do exactly the same for the Auditor General to make sure the money collected is then applied to help the small man and not stolen. This means a world of change for Guyana. Can that happen? Well, change has accelerated even in the last days since this article was written. The President in Guyana has awesome powers. The new man with the job is exceptionally smart, with a fast mind. This writer knows that he is innovative and thinks creatively for himself. He is young and open minded enough to be thinking, "what is best at this time under these circumstances?" Guyana's new President can bring about a new and better way. He is decisive and firm, and would be an excellent and successful businessman had he gone into the private sector. It is amusing to hear that the man is too young for the job - mostly from people in their 60's and 70's. And that he went to university in Russia so his economics is forever flawed - mostly from people who never went to university. They don't understand you mostly learn how to think for yourself at university, and maybe learn a few useful tools you can use in your life if it's a good university. So a major change has occurred. How he moves with new ministers and maybe new ministries to take Finance and Trade off his chest and in the right mode will be decisive. It would be great to see him get over to Barbados and meet with PM Owen Arthur soonest possible, take in his thoughts on turning an economy around, and ask his help on raising private funds and investment. Maybe he could convince the PM to lend Phillip Goddard and a few others for a year or two to help the Ministers in Finance and Trade. And while there he could talk tourism with the Barbados PM. On the way back stop over in Trinidad and get PM Basdeo Panday to organise a first wave of Trinidad investors to tell us what business they want to develop to make money in Guyana. Housing Minister John Humphrey knows Guyana and our tourism potential well, and would be thrilled to make innovative suggestions to the new President on how Trinidad and Guyana can move together in this industry to benefit all. For our part, we need a bright, young man to take on the public sector job in tourism. This person should have lived in North America or the U.K. so he would understand how our potential tourist customer thinks. It is important that he/she should have held down a management job in business, so would have first-hand understanding of the private sector, and would understand the difference between what private enterprise needs, and what it wants. This person must have the gumption and the backing to quickly sort out the civil servants who must work for him. They will need to be highly computer literate, know database programmes, and must understand how to use the web effectively. This leader would give highest priority to build a team with TAG to form a vision for tourism. The next task would be to lay out clearly who is responsible for what, and how any disagreements will be resolved. Then together this pioneering industry could be moved forward for our great and great-great grandchildren.
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