Future Sustainability Of The Mauritian Economy Tourism Essay

1. Introduction

In recent old ages, many surveies and researches were carried out on the part of touristry in the economic development of a state ( Mishra et al, 2011 ) . There is a general understanding that touristry has been of cardinal importance in the societal advancement every bit good as an of import subscriber of widening socio-economic and cultural contacts throughout human history. Over the past old ages, many developing and developed states have considered touristry as an option for their sustainable development.

Mauritius is a little independent island located in the Indian Ocean, E of Madagascar with an country of 2,040 square kilometres ( including St Brandon and Agalega Islands ) and a population of about 1.3 million. The island consists of people arising from India, China, Africa and Europe. With respect to its geographical place and of its volcanic beginning, Mauritius has been gifted with natural assets that attract a really big figure of tourers every twelvemonth ( Sobhee, 2008 ) . As a little island economic system, Mauritius has experienced really rapid industrial and touristry development during the last 30 old ages and until late touristry has been turning really quickly. In the 1970s, it has successfully transformed itself from a mono-crop economic system to a diversified economic system consisting agricultural, fabric, touristry, Information and Technology and fiscal services. Tourism has become an of import sector of the Mauritanian economic system playing a significant portion to the sustainable development of the state and in bring forthing foreign exchange and employment chances.

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2. Literature Reappraisal

Tourism has developed itself from a comparatively small-scale activity into one of the universe ‘s largest industries and a quickly turning planetary economic system from the 1960s onwards. There has been an uninterrupted growing in international tourer reachings from 25 million in 1950 to 438 million in 1990 and 681 million in 2000. In 2009, the international tourer reachings were 880 million and the corresponding touristry grosss were US $ 852 million. For the twelvemonth 2010, the United Nations World Tourism Organisation ( UNWTO ) forecasted a growing of 3 % to 4 % in reachings bring forthing approximately 21.7 % of universe GDP, 10 % of planetary capital investings, 9 % of world-wide employment and 22.2 % of world-wide exports of goods and services. All the figures demonstrate the important function of the touristry sector in the long-term growing of host states across the universe ( Mishra et al, 2011 ) .

Today, many islands depend on international travel and touristry to heighten their economic systems. For illustration, touristry industry accounted for 20 % of GDP, 33 % of gross and 66 % of foreign exchange net incomes in Maldives. Likewise, in Seychelles the touristry sector accounted for 12 % of GDP, 30 % of work force and 70 % of foreign exchange net incomes ( Lee et al, 2010 ) . In Vanuatu, the part of touristry to the GDP additions from 16 % in 1991 to 21.6 % in 1998 ( Me’heuxa & A ; Parkerb, 2006 ) . In Fiji, the sector accounted for 29.5 % of GDP and 37 % of foreign exchange net incomes ( Becken, 2005 ) . In Bahamas, 60 % of occupations are chiefly due to the touristry industry ( Apostolopoulos & A ; Gayle, 2002c ) . The above statistics shows that many Indian Ocean, Pacific and Carribean islands are extremely dependent on touristry for their economic growing ( Duval, 2004 ) . In such instances, the economic systems of these islands are more vulnerable to external dazes and natural catastrophes like in the old ages 2008 and 2009, unless they have diversified their economic systems.

Many developing states have managed to increase their engagement in the planetary economic system through development of international touristry. International touristry is progressively viewed as an of import tool in advancing economic growing and relieving poorness ( Richardson, 2010 ) . Research workers are of the position that the rapid growing of touristry sector causes an addition of family incomes and authorities gross through its multiplier consequence, betterments in the balance of payments and the growing of the touristry industry by itself. Tourism dollars are ‘new dollars ‘ injected in an economic system as they are spent and respent by employers and employees. The more money flows within an economic system, the larger the multiplier consequence. As such, touristry development has normally been thought to hold a positive part to economic growing ( Khan et al, 1995 ) . Baum ( 1994 ) identified the undermentioned as the positive impact of touristry in an economic system:

Generating foreign exchange and foreign direct investing ;

Employment chances ;

Contribution to the local/host community ;

Conservational or environmental impact.

2.1 Gross and Foreign Direct Investment ( FDI )

In footings of GDP, the tourer industry is the 2nd most of import after the fabrication sector. Statisticss ( CSO, 2011 ) ( Table 1 ) show that the one-year tourer reachings in 2010 has increased to more than 930,000 as compared to 871,356 in 2009, that is an addition of 7.3 % . The industry contributes to 3.8 % of the Gross Domestic Product ( GDP ) and touristry grosss for the twelvemonth 2010 amounted to around Rs 39,456 million, therefore demoing an addition of 10.5 % as compared to Rs 35,693 million in 2009. It is estimated that 980,000 tourers will see Mauritius in 2011with grosss of Rs 42,500 million ( +7.7 % ) .

The autumn in tourer reachings in 2009 can be explained by the universe fiscal crisis that started to achieve our economic system and the authorities has taken several steps through the Additional Stimulus Package to right the state of affairs. Faced with the slouching gross from the touristry industry in 2009, Directors of the assorted touristry boards of the Indian Ocean islands ( Mauritius, Madagascar, Reunion, Seychelles, Comoros and Mayotte ) develop a program for the part ‘s touristry industry under a common regional label, “ The Vanilla Islands ” . The aim was to turn to new mark groups and to establish an reliable regional finish. The construct is based on four pillars:

Facilitation of visa-free travel within the islands of the Indian Ocean ;

Extension and sweetening of the inter-island transit web ;

Close operation between circuit operators, hotels and governments ;

The development of a homogeneous selling scheme concentrating on the singularity of each island and at the same clip beef uping the joint individuality.

The authorities besides encouraged the liberalisation of air entree to excite touristry growing. Airlines like Corsair, entered the market, by associating France and Reunion Island with Mauritius. Besides, the national air hose, Air Mauritius, increased its flight frequence towards Europe and Asia. As a consequence, the touristry sector beneficiated from this policy.

Tourists from all over the universe semen to Mauritius. They originate from Europe, Africa, Asia, Oceania and America as shown in the chart below. Our chief market remains France and Reunion Island.

Beginning CSO, 2011

The fight of the touristry industry in Mauritius depends chiefly on the service quality, value for money, safety, route substructure, communicating web, political stableness and societal harmoniousness among the different communities and cultural groups. The chief purpose of the authorities and the Mauritius Tourism Promotion Authority ( MTPA ) is to go on to pull high-income visitants whose economic impacts are acknowledged to be more good to the local economic system than low-spending visitants.

Figure 2: Tourist reaching and Receipts ( Rs m ) from 2000 – 2006

Beginning: CSO, 2011

The Mauritanian authorities has been under economic force per unit area to happen other ways to prolong the economic system following the phasing out of fabric and sugar understandings and recent dazes of lifting oil monetary values ( Ramkissoon & A ; Nunkoo, 2008 ) . The development of incorporate resorts has been considered as an option to bring forth hard currency flows and prolong the economic system. Several Integrated Resort Schemes ( IRS ) and Real Estates Scheme ( RES ) were approved with the thought that they will convey Foreign Direct Investment ( FDI ) to the economic system.

The entire FDI for the twelvemonth 2010 was Rs 12 billion, a record grade. FDI into “ cordial reception and existent estate ” sector reached Rs 3.7 billion in the first eight months of 2010 ( Board of Investment, 2010 ) fumbling its manner towards a gloss to the degree of Rs 6 billion recorded in 2009. FDI brings long permanent and stable capital flows as they are invested in long term assets such as substructure. These financess are introduced into the economic system lending to the aggregative demand of the economic system, and hence to the economic growing of the economic system. Local houses, due to the competition brought in by FDI, tend to go more productive to efficaciously counter the menace of the rival from abroad. Higher productiveness of houses contribute to the growing of the economic system.

2.2 Employment

Several schemes for touristry development have been found to be effectual in making employment and income chances for vulnerable and communities ( UNWTO, 2000: Ashley et Al, 2001 ) . The touristry development undertakings that have been most successful include those that:

Promote employment of the people in touristry concerns ( including preparation )

Promote the constitution of touristry endeavors ( such as micro and little endeavors )

Promote the supply of goods and services to tourism concerns by endeavors that are owned by local people ( Supply concatenation )

Promote the direct sale of goods and services to tourers

Figure 3: – Employment in the tourer industry as at terminal of March, 2006-2010

2006

2007

2008

2009

2010

Restaurants

1,805

2,012

2,251

2,431

2,464

Hotels

19,536

20,233

22,314

20,478

20,847

Travel and Tourism

4,457

4,296

4,188

4,093

3,850

Entire

25,798

26,541

28,753

27,002

27,161

Beginning: CSO, March 2011

The touristry industry contributes to around 9 % of the entire employment in 2010. The tabular array shows that there has been a uninterrupted addition in employment from 2006 to 2008 with a lessening in 2009 and once more rises in 2010. The lessening in 2009 was due to the fiscal crisis that hit some touristry concerns and the redevelopment of some hotels. Employment in the services sector is quickly increasing in Mauritius. As employment generated by the primary and secondary industries stagnates or diminutions with the Voluntary Retirement Scheme in the sugar sector and shutting of some fabric units, touristry provides new chances to bring forth new occupations. Tourism is a labor-intensive industry in an age of great technological promotion and worsening comparative demand for labor. The touristry industry and the related industries provide many full-time and parttime occupations across a scope of skill countries such as circuit operators, auto leases. The incorporate resorts freshly built besides demand for occupations among the local community such as babysitters, nurserymans, personal drivers, cooks, etc.

2.3 Contribution to the local community

The literature point out that host community ‘s support for tourism-related development is important for the industry ‘s sustainability ( Tovar & A ; Lockwood, 2008 ) . Once a community turns into a finish, the quality of life of the local people tends to be affected by the development impacts ( Gursoy et al, 2002 ) .Tourism is the lone export sector where the consumer travels to the exporting state, which provides chances for local people to go exporters through the sale of goods and services to foreign tourers.

Employment chances ( Andriotis, 2008 ) and grosss ( Jurowski et al, 1997 ) for the community and authorities are the major benefits derived by the local community from touristry development. Local employment chances arise during the building and from the subsequent staffing of the resort ( Ioannides & A ; Holcomb, 2003 ) . The creative activity of new investing chances and chances for local concerns are other noteworthy benefits perceived by local occupants. Tourism provides new little concern chances. Good chances for development of new touristry endeavors arise from low capital demands and relatively low barriers to entry for little concerns. The possible donees of touristry activity are spread across assorted sectors of the regional economic system. For illustration, in Grand Baie, many persons from the part benefit from touristry through the rental of little cottages, autos and rhythms. They besides benefit by running eating houses and coffeehouse meant for tourers. Other activities like glass underside, surfing and boats are besides other agencies by which the local people generate incomes.

Resort developers attempt to incorporate the resort within the local community through furthering economic linkages with that community ( Richardson, 2010 ) . Tourism besides stimulates demand for local workmanship, create chances for cultural exchange, stimulate better services and substructure and supply options for leisure activities.

It has been pointed out that in economically down countries ( such as Le Morne ) , occupants tend to undervalue the cost of touristry development and tend to overestimate the economic additions ( Liu & A ; Var, 1986 ) . Var et Al ( 1985 ) argue that such occupants are willing to accept some incommodiousnesss in order to have some benefits ensuing from the development.

Local community engagement in the planning, development and direction of the undertakings is a factor that contributes to the success or sustainability of a touristry development undertaking. Schemes that can be adopted by host communities ( Honey & A ; Gilpin, 2009 ) include:

Identify and protect cultural and natural assets that form the footing for comparative advantage in touristry

Maintain and concentrate on the community as the Centre of the touristry development scheme to guarantee local ownership of undertakings and keeping of net incomes

Encourage widespread community engagement in touristry planning procedures

Build capacity through the development of physical substructure and human capital

Promote betterment in the bringing of touristry services to guarantee quality and genuineness

Raise consciousness among tourers to promote them to appreciate and esteem the sites they visit.

Tourism besides plays a negative function to the local community. The eroding of moral values – lending to increase the coevals spread between the older coevalss who are more affiliated to traditional values and the immature who are eager to accommodate to the tourers manner of life. Hence, it is of import to maintain a balance in footings of figure and type of tourer the local community is capable to digesting or prolonging. A good illustration of the negative impact is the edifice of hotels and eating houses on our beaches, striping Mauritanian to bask the nature ‘s gift to them. We are near to leasing a ‘parasol ‘ on a ‘private ‘ beach for a field day at the seaboard. Another illustration is the infliction of entry fees at Pamplemousses Botanical Garden both on tourers and local citizens ( except on Sundays and public vacations – free entryway ) .

2.4 Environment facet

Environment is one of the major elements which form the foundation of the touristry industry of a state. The impact of touristry on both semisynthetic and natural environment is good every bit good as harmful. One of the major benefits is the preservation of the natural and semisynthetic environments. Tourism can lend significantly in environmental protection/conservation and Restoration of biological diverseness and sustainable usage of natural resources. Tourism impacts are linked with the building of general substructure such as roads and airdromes and of touristry installations such as resorts, hotels, eating houses, stores, golf classs and marinas.

Cleaner production techniques can be of import tools for planning and runing touristry installations and therefore minimise their environmental impacts. Tourism has the possible to increase public grasp of the environment. It brings people into closer contact with nature and the environment. Awareness of the value of nature leads to environmentally witting behaviour and activities to continue the environment. Tourism industry can play a function in supplying environmental information and consciousness among tourers of the environmental effects of their actions.

User fees, revenue enhancements on gross revenues lease of diversion equipment and licence fees for activities like runing and fishing can be used to supply the authorities with financess needed to pull off natural resources. Such financess can be used for preservation plans and activities. Recently, the Minister of Tourism came with a proposal to hold differential paid entree at Ile Aux Cerfs for tourers and Mauritians. Harmonizing to the governments, this islet attracts more than 350,000 tourers annually with a turnover of about Rs 500 million ( Star, 2011 ) .He stated that the financess raised will be used for cleansing of the beach and for the preservation of the environment. But, the consequence of this policy on the local people in footings of occupations that may be lost need to be assessed.

Tourism besides can hold negative impact on environment. Tourism development can set force per unit area on natural resources when it increases ingestion in countries where resources are already scarce ( land, H2O and local resources ) . Pollution caused by touristry include air emanations, noise, solid waste and littering, releases of sewerage, oils and chemicals.

2.5 Menaces for the touristry industry.

In recent old ages, oil monetary values, natural catastrophes, offense and international terrorist act impacted on the willingness of planetary tourers. Small islands depend on the dual efficiency of touristry income. Therefore, developing touristry industries is imperative. However, to avoid harm by natural catastrophes, those islands may through early warning and dismay systems cut down losingss ( Me’hexua & A ; Parkerb, 2006 ) .

In Malta, Egypt and Greece, many factors like terrorist onslaughts and tsunamis may act upon touristry consumers and thereby impacting the touristry industry. In Fiji, jobs of clime alteration such as strength of air current resulted in coastline amendss thereby impacting beaches which tourers prefer the most during their stay.

Since November 2009, when some European states like Greece, Spain, Portugal and Britain started confronting high budget shortage and debt jobs, the euro has been weakening against the dollar and as a consequence against our rupee. Since so, these states adopted asceticism steps to go out from these economic jobs. This resulted in a bead in demand for our exports and lower tourer reachings due to the high dependance on European markets. There was a demand, so, to diversify our markets by tapping to the full the quickly turning states like China, India and Russia. From statistics ( CSO, 2011 ) , the tendency of tourer reachings from China, India and Russia shows an addition of 9.9 % , 26.8 % and 17.5 % severally over the figures of 2009.

Vector-borne diseases such as chikungunya and dandy fever febrility have become a major public wellness job in tropical states, particularly in Asia and the Indian Ocean. For illustration, one tierce of the population in Reunion Island was affected by chikungunya in 2005 – 2006 ( Reiter et al, 2006 ) . Dengue is the fastest turning vector-borne disease in the universe ( WHO ) when 55 % of the universe ‘s population was at hazard in 124 states ( Beatty et al, 2007 ) . Mavalankar et Al ( 2009 ) pointed out that a 4 % diminution in tourers from non-endemic states would ensue in a significant loss of touristry grosss – at least US $ 65 million for Malaysia and US $ 363 million for Thailand. This indicates that the impact of these diseases on touristry grosss should non be ignored when ciphering the load of infective diseases.

Another negative factor related to touristry is the perceptual experience people have of safety and security issues. Olurunfemi et Al ( 2008 ) posits that security is an of import knot in tne concatenation because it forms an organic bedrock of a sustainable benefit for both the tourers and the host communities. For illustration, confidence of equal safety of life and belongings during their stay must be given to tourers and on theodolite on sites. Safety and security in touristry refers to the protection of life, wellness, physical, psychological and economic unity of travellers, touristry staff and the people representing host communities ( WTO, 1991 ) . Recently, the touristry sector has been earnestly undermined by the turning deficiency of security among the citizens and tourers. Some types of offense impacting tourers include onslaughts on tourers sing nature Parkss and on beaches and in hotels.

In order to undertake the issue of security in touristry, the authorities has taken some preventative steps. For illustration, a close circuit camera system has been set up in the parts of Flic en Flac and Grand Baie which are reputed topographic points for tourers in Mauritius. The consequences have been promoting in the sense that there has been a autumn in the figure of onslaughts and larcenies on tourers. Even the recent slaying of a popular personality of Ireland in a resort seems to hold small impact on tourer reachings due to the prompt action taken by the local constabulary.

Decision

The authorities ‘s part to the touristry sector has been really good in footings of planning and policy preparation. During the “ Assises Du Tourisme ” held in 2006, the Prime Minister expressed his vision to welcome two million tourers by 2015. He pointed out that many less endowed states are making much better than Mauritius. There are many factors that must be taken into consideration in order to accomplish this mark and these factors will be analysed in the methodological analysis subdivision.

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