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An Assignment Presented in Partial Fulfillment of the Requirements for the Course ENGLISH 215-04 ENGLISH COMPSITION II

INSTRUCTOR; Mr. Keith Holder

By Onika Blandin 17 June, 2013


Tourism Multiplier Effects Benefits Trinidad and Tobago

Tourism Multiplier Effects Holds Benefits for Trinidad and Tobago Energy Driven Economy


This paper establishes the social and economic benefits of Tourism development and explains the multiplier effect that Tourism generates. In addition, it highlights the promises it holds for shifting Trinidad and Tobago energy focused economy, to one that is diversified with more opportunity for a wider cross section of its population and general development. The writer examines previous studies and evolving trends within the private and public sectors, their acknowledgment for more cooperative approaches and the value of tourism development by said sectors along with the challenges within the umbrella industry that is Tourism. Finally recommendations for further growth are offered.

Tourism Multiplier Effects Benefits Trinidad and Tobago

It can be assumed that the key objective of any economy is one of full employment; sustainable economic growth, external stability, fair income distribution and efficiency of resource allocation.

Studies have shown that the tourism industry is recognized as being instrumental in sustaining societys economic growth and development globally. Travel & Tourism is one of the worlds leading industries, or economic sectors, representing a major source of gross domestic product (GDP) employment, exports and taxes.(WTT,2013) In Trinidad and Tobago the energy sector has assumed the dominant role of income earner and has seen major gaps in the distribution and development of none energy resources. It has been argued that natural resource-based economies suffer from a resource curse and few resource-rich countries have managed to break free of dependence on their dominant resource. Rambarran (2013) Tourism development holds viable benefits because of its subsectors and multiplier effect for diversifying Trinidad and Tobago energy driven economy.

The processes pursued in order to achieve these objectives are informed by history leadership, governance, social, and economic environment. This paper aims to explain the multiplier effect of tourism development and the associated benefits. In this context this pepper seeks to critically examine the current trends/polices. Finally through the review of research, strategies for maximizing opportunities would be proposed. The direct spending by tourists and the associated, umbrella industry of travel, lodging, foodservice, and recreation holds socio-economic, cultural and environmental sustainable benefits, Tourism interconnectivity offers the creation of jobs in tertiary, primary and secondary sectors of industry, this has been described as the multiplier effect which in its simplest terms speaks to the number of times tourist money circulates through a country's economy. (Beech & Chadwuck, 2005) explains the multiplier effect as:

Tourism Multiplier Effects Benefits Trinidad and Tobago

New dollars injected into economy Supplier and Payroll to support and provide production and service Suppliers and employees spend money on items for their wants and needs Others in the community receive and spend on related products and service and so on (Beech & Chadwuck 2005,p.332)

The Economic Impact of Tourism highlights tourism key impact. The labor intensive industry operates 24 hours a day, seven days a week. Thus employs low to high skills levels. There are opportunities for low and high skilled employment. A thriving tourism industry supports growth in other sectors, such as transport, construction, agriculture and retailing. As tourism increases, there are more opportunities for small business to develop. The multiplier effect can stimulate infrastructure extension such as the improvement of retail, restaurant and entertainment options, transport services, education and sporting facilities. These increases the quality of life for the community and by extension stimulates cultural heritage awareness, pride and economic gains because of its value as a tourist attraction. In many cases tourism has provided an economic platform for conservation, preservation and restoration of natural and built resources through strategic planning of infrastructure and polices (Beech & Chadwick 2005, p.323-236)

The government of T&T has declared that it intends for the twin island Republic to have achieved developed nation status by the year 2020. For this vision to be achieved the economy must not be based entirely on the oil and natural gas sectors but on human capital since the energy sector is subject to longer-term volatility and offer fewer jobs (Henry et al, 2006).

Tourism Multiplier Effects Benefits Trinidad and Tobago

In its aim for developed nation status by 2020, the government does recognize that the energy sector is unable to fully sustain the economy in order to achieve this goal. Therefore, tourism has rapidly moved into the mainstream of economic development that the government is using to reduce the countrys reliance on the energy sector. According to the Ministry of Finance, 2013 Budget By the year 2020, the Trinidad and Tobago tourism product will be a significant economic sector contributing significantly to the nations GDP, through job creation and increased revenues, driven by a uniquely differentiated, internationally competitive product, complemented by comprehensive, fully functional physical infrastructure, modern, competitive institutional framework and supported by the people of Trinidad and Tobago (pp.231)

The World Travel and Tourism Council (WTTC) report on tourism in Trinidad has indicated that the baseline forecasts for the countrys travel and tourism are generally very positive over the next ten years with growth set at 5.2% per annum until 2015(WTTC, 2013).

Emerging Trends Tourism offering are being promoted as two distinct identities, two experiences it also offers a tremendous opportunity to create two distinctive tourism experiences, each competitive in their own right and even more attractive if taken together Harmony in diversity (Rupert 2012) Analysis Lack of focus on and co-ordination across the industry

Tourism Multiplier Effects Benefits Trinidad and Tobago

Investment in tourism infrastructure relative to other regional countries is quite small. In cohesive government agencies divide implementation efforts and retard the logical coordination of industry-wide development strategy. As many as seventeen separate government agencies and certification bureaus are often involved in one tourism development project. (July 2012) This along with the limited availability of industry specific data currently only general high-level national statistics are available are barriers to attracting local and international investors. Inefficient coordination continues into the local airlines, two international airports, one on each island, but limited regional connections directly to Tobago. The lack of standards has given rise to independent hotels and guest houses (July 2012) Perception of Tourism as Subservient stigma continues The benefit of tourism has been established yet employment in the tourism sector continues to be stigmatized the Secretary-General at the Caribbean Tourism Summit of the Caribbean Tourism Organization described the challenge of negative local attitudes towards tourism: in spite of the demonstrable positive macro-economic impact of the industry, social and community considerations continue to raise their heads and to create negative attitudes that intrude everywhere. What accounts for the negative attitudes we often witness? One reason is that tourism in colonial and post-colonial societies, has, for an entire century, been seen by the vast majority of local populations as continuing many of the social traditions of the plantation economy (Holder, 2012)

Strategy and Recommendations Drawing on economics, sociology psychology, management, demography, politics and anthropology the factors which underlie holds key implications Lewis & Jordan 2010, p 164)

Tourism Multiplier Effects Benefits Trinidad and Tobago

Encouragement of joint venture partner ships between the public and private sectors coordinated by The Ministry of Tourism Lewis & Jordan,(2010, p256) Build training/certification programs which meet global standards. Special focus should be placed on management level training In conclusion the multiplier effect of Tourism development has proven benefits when applied from a comprehensive view that incorporates Leadership, Revenue Management, Culture and History. Trinidad and Tobagos economy can no longer sustain its historical biases; Eric Williams, preference for "black oil than white tourists" can no longer apply, a paradigm shift is inevitable and the benefits of Tourism development as a viable vehicle for this transformation is clear, as Alvin Toffler explains; society needs all kinds of skills that are not just cognitive; they're emotional, they're affection AL. You can't run the society on data and computers alone. Toffler also states, in Rethinking the Future that the illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn. Gibson, R. &Toffler, A. (2009)

Tourism Multiplier Effects Benefits Trinidad and Tobago

References Beech & Chadwick. (2006). The business of tourism management. Multiplier effects, Financial Times Management 332-335 Breaking Traveling News (BTN) (2012). The leading world travels tourism Conference. Retrieved from Gibson, R. &Toffler, A. (2009) Rethinking the future. London: Nicholas Barley Holder, J. (2001). Meeting the challenge of change: Retrieved from Lewis & Jordan (2008) Tourism in Trinidad and Tobago: Carving a Niche in a PetroleumBased Economy International Journal of Tourism Research, 10, 247-257 R Rambarran, J. (2013, May 21) TTMA: Private sector ready to lead diversification. Trinidad Express News Paper. Retrieved from

Randle, I. (2007). Economic theory and development options for the Caribbean. The Sir Arthur Lesis Memorial Lectures1996-2005 Eastern Caribbean Central Bank. Tourism Product Development Company (TPDCo). 2010. Entrepreneurship Drive.

World Travel and Tourism Council.WTTC (2013). Travel & Tourism Economic Impact Update: Trinidad and Tobago. Retrieved from

Tourism Multiplier Effects Benefits Trinidad and Tobago