EDITORIAL - Region must create more linkages

ONE of the media representatives at the tourism conference last week raised the subject of sectoral linkages, which has been bandied about for close to five decades. He wanted to find out when more of the produce and other goods manufactured in this region would be taken up by the tourism industry in the Caribbean, so as to give some stimulus to the other economic sectors while at the same time broadening the contribution which tourism makes to regional economies.

 

His query came following the revelation by the new Chairman of the Caribbean Tourism Organisation (CTO), Obie Wilchcombe, that out of every dollar this region earns from tourism, some 80 cents go back out to pay for inputs used in the industry.  

 

Back in the days when Caribbean countries sought to move head-long into tourism so as to diversify their economies, there was always the talk that sectoral linkages would have to be pursued  if these countries wanted to maximise the full potential of tourism. The consensus then was that the tourism industry would absorb a fair amount of the domestic food supplies, as would be the case with the output from manufacturing.

 

It was not expected that local suppliers would be able to produce all the requirements needed in tourism. Their economies were not structured enough to be able to do so, and on a consistent basis. Furthermore, there are goods and services which Caribbean firms and farmers are not able to produce in great numbers to satisfy the tourism industry. Therefore, it was expected that some imports would have to meet the demand.

 

To their credit, some countries have been improving the situation where local inputs are taken up by hoteliers. Jamaica is one example where this is happening; St. Lucia is another; and even here in Barbados, the trend has been to source supplies locally, as was revealed by Tourism and International Transport Minister, The Honourable Richard Sealy. Of more recent vintage is an agreement which was worked out by the Barbadian hoteliers, and the Barbados Agricultural Society and manufacturers.

 

It seems though that more still needs to be done given the prominence which tourism commands in our economies. As the lead economic sector, tourism accounts for the bulk of economic growth in many of the islands, and certainly in Barbados, as well as being the principal area where sizeable inflows of foreign direct investments go.

 

When it is doing well, it pulls along a number of other economic sectors. Since the industry attracts a large number of visitors to our shores, this naturally gives rise to demand for food and beverages,  some of which are provided by local suppliers.

 

As an industry where considerable refurbishment takes place, there is the construction factor. This in turn provides opportunities for the wholesale and retail trades, as well as the manufacturing sector where the supplies of furniture and other structures are concerned.

 

While describing the situation as quite vexing and where the region has fallen down when it comes to the true meaning of Caribbean integration, Mr. Wilchcombe has promised to pursue the matter to improve things. How much he will be able to achieve in two years is not known, but the effort will at least put things in motion to deal with that matter.