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THE EVALUATION OF TOURISM AS
A STRATEGY OF DEVELOPMENT
IN THE THIRD WORLD
presented by

NILOUFER ABEYSURIYA

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THE EVALUATION OF TOURISM AS A
STRATEGY OF DEVELOPMENT IN THE
THIRD WORLD

By
Niloufer Abeysuriya

A THESIS

Submitted to
Michigan State University
in partial fulfillment of the requirements
for the degree of

MASTER OF ARTS

Department of Sociology

1982

ABSTRACT
THE EVALUATION OF TOURISM AS A

STRATEGY OF DEVELOPMENT IN THE
THIRD WORLD

By

Niloufer Abeysuriya

This thesis examines the growth of international
tourism in the Third World and evaluates the costs and
benefits of the tourist industry in relation to main
trends in development thinking and general aspirations
for development expressed by Third World nations. Cri-
tically appraising reasons for advocating tourism, this
thesis assesses in particular the cultural effects of
tourism and the capacity of the tourist industry in its
present form for generating foreign exchange and employ-
ment and for expanding domestic economic activities.
Special interest has been taken to highlight the often
unanticipated and obscure costs of tourism. Primarily
using documentary data, this study analyzes the impact
of tourism only at a level of incipient research or

formative conceptualization.

ACKNOWLEDGEMENTS

I wish to thank my advisor Professor James McKee
of the Department of Sociology, Michigan State
University, for his unfailing encouragement and tactful
assistance which gave me leeway to develop a somewhat
original approach to the evaluation of tourism in the
Third World. I am also grateful for the guidance
provided by Professor J. Allan Beegle. I would also
like to acknowledge faculty members of the Sociology
Department; University of Peradeniya, Sri Lanka who

stimulated in me an early interest in tourism.

ii

TABLE OF CONTENTS

List of Tables .......................................
INTRODUCTION ......................................... 1
CHAPTER
ONE TOURISM AND DEVELOPMENTALISM ................ 5
Perennial Quest: The Lure of Travel ...... 5
Growth of Tourism ......................... 8
Developmentalism and the Third World ...... 14
Tourism Linkages with Developmentalismfi... 24
TWO TOURISM AND ECONOMIC DEVELOPMENT ............ 28
The Imperative of Earning Foreign Exchange 28
The Tourist Multiplier .................... 42
Economic Diversification and Infra-
structural Growth ....................... 50
Planning in Kenya ......................... 53
Tourism and Employment .................... 56
Summary ................................... 67
THREE THE CULTURAL IMPACT OF TOURISM .............. 69
The Allegation of Cultural Distortion ..... 73
Insiders and Outsiders: The Human Face
of Tourism .............................. 81
FOUR SUMMARY AND SUGGESTIONS ..................... 90
REFERENCES ........................................... 100
BIBLIOGRAPHY ......................................... 105

iii

LIST OF TABLES

Table
1 Trends in Disposable Incomes and Savings,
Ec Total, 1975-80 ........................... 10
2 Three Decades Against Poverty ................. 15

3 Developing Countries: Gross Agricultural
Exports and Imports 1970 and 1978

(Thousand million U.S. dollars) ............. 30
4 Public and Private Debt of the Developing

Countries (US $ millions) ................... 31
5 South Indices: What Commodities Can Buy ...... 34
6 Tourism Receipts and WOrld Exports ............ 35
7 Comparison Between Tourism and Export

Receipts, Mexico, 1960-1967 ................. 37
8 Estimated Travel Multipliers .................. 46

9 Expenditure on Tourist Development in Kenya,
1970-1974 (in KoC'OOO) ...................... 54

10 Sample Panel--Indices of Income Growth and
Distribution ................................ 57

11 Relationship Between Ethnic Origin and
Distribution of Workers ..................... 63

iv

INTRODUCTION

The objectives of this study is to assess the
socio-economic impact of tourism in the Third World in
the context of the growth dynamics of the industry on
a global scale. Apart from being big business for multi-
national corporations and the compradore bourgeoisie and
a host of small scale entrepreneurs in peripheral econo-
mies, the tourist industry receives the active support
of national governments and is consequently a highly
visible item in Third World development programs.

Chapter One of this thesis highlights salient
structural features characterizing the tourist industry
and analyzes some of the socio-economic and technological
factors contributing toward the growth and momentum of
modern trave1,for this category of causal factors support
the advocacy of tourism as a gainful industry.

This chapter goes on to describe current trends
in "developmentalism," or development theory in the con-
text of the evolution of development ideology and policy
during the post-colonial era. This discussion of develop-
mentalism is important since in most cases it is the particu-
lar meaning attributed to development which gives form
and direction to national development policy measures.

Policies rationalizing development programs become crucial

determinants of living standards in poor countries. Thus
the impact of the tourist industry as a development stra-
tegy should be analyzed with reference to trends in
"developmentalismt" This thesis uses the most recent
emphases in developmentalism, namely, the stress on "redis-
tribution with growth", and "participation", as an important
category of criteria for examining the appropriateness,
the actual costs and benefits of the global tourist in-
dustry for host countries, in the light of Third World
aspirations for development.

Chapter One also outlines discernible linkages
between tourism and certain themes of developmentalism.

Chapter Two assesses the economic impact of tourism.
The sections deal specifically with controversies relating
to the potentialities of tourism for earning foreign
exchange, promoting multiplier effects, infrastructural
growth and employment.

Chapter Three investigates the impact of tourism
on Third World cultures. Special interest has been
taken in highlighting how tourism manipulates culture
and directs behavior, often to the detriment of both
tourists and the population of the host country.

When critiquing tourism, modes of analysis associ-
ated with "dependancy theory”, such as the concept of
global metropolitan-satellite capitalist relations, help

to analyze certain vertical linkages of the tourist

industry. However, it is not the intent here to "throw
away the baby with the bath," but rather to heed Mirabeau's
statement that ”It takes giants to build but pygmies to
destroy." In the final part of this thesis the need for
official recognition of the costs of tourism is stressed
and the need to match the current advocacy of tourism
with countermeasures to avert or alleviate these harmful
effects is noted. Several suggestions have been made

and weight has been given to the importance of strengthen-
ing linkages between tourism and the themes of "redistri-
bution with growth" and the "new international order.”

My interest in tourism was awakened in an under-
graduate course.followed at the University of Pera-
deniya Sri Lanka, on the sociology of development. Among
other topics, this course focused on the impact of the
tourist industry, and many concepts used there have been
applied in this thesis.

Before proceeding further, however, it is necessary
to draw attention to the constraints in research faced
when attempting to evaluate the tourist industry as
a strategy of development in the Third World. Though
tourism is subject to intensive advertisement, the socio-
economic impact of this industry has not yet been ade-
quately researched, unlike certain other components of
development programs, such as agricultural extension

work and family planning. Owing to such limitations,

this assessment of tourism cannot be regarded as being
wholly conclusive. It could be said that data available
on tourism operations and impact have been used to
analyze the consequences of the industry at the level

of formative conceptualization. This is particularly

so in the case of the cultural effects of tourism,

which comprise a field of research only recently subject

to inquiry and investigation.

CHAPTER ONE

TOURISM AND DEVELOPMENTALISM

Perennial Quest:
The Lure of Travel

 

 

The traveller is often a fascinating personality!
His manners exude an urbane and debonair charm; fresh
winds seem to waft around him which excites the fancy
of those confined to the drably familiar circumstances
of home. Travel imbues a special sort of magic; a glamour
emerging from mysterious exotic vistas, a charisma tinged
disquietly by the splendour of a phoenix-like experience
of rejuvenation. Wanderlust, however, is much more than
a chance paroxysm of the occasional intrepid soul. Since
time immemorial the earth has been crisscrossed by mass
migratory movements, driven onwards by the search for
food, pasture, safety, or conversely, by the drive to
plunder and dominate. The first men who landed on the
moon were doubtlessly moved by the same spirit of adven-
ture and restless curiosity which emboldened the early
Polynesians,

who according to the most widely held view-

point, travelled from south east Asia,

throughout the islands of Micronesia and

Polynesia, finally reaching the Tuamotu

archipelago and Society Isles. Some of

these trips extended from Tahiti to Hawaii,
a distance of over two thousand miles.

These early travels were accomplished in

small dugout canoes with outriggers attached

and with rather primitive sails. Naviga-

tion was accomplished by means of the stars

and the sun. Considering the size of the

vessel and the problems of fresh water

and food supplies, these journeys were

nothing short of incredible.

While retaining and adapting many of these attri-
butes, travel today has assumed among other features a
vastly different character--a modus operandi and ethos
which could best be described as "internationalism."
Internationalism is characteristic of other components
of the present world system and in the case of modern
travel refers to two important dimensions which could

be conceptualized as "Integration" and "Mass-Consumerism."

"Integration". Travel today has burgeoned into

 

a giant industry which encompasses the globe. The random
disorderly journeys of individuals and groups during pre-
ceding ages have now coalesced into a subsystem of the
world economy. "Integration” represents the global scale
of the tourist industry, the complex interlocking of
diverse far flung sectors reaching in chainlike fashion
from giant multinational firms controlling transport,
advertising, and hotel businesses, to collaborative
national governments, petty tour operators, local guest-
house owners, shopkeepers, hawkers, pimps, prostitutes
and beggars. Similar to any other profit-making ventures,
the tourist industry demonstrates the fine tension between

interdependence and competition, a contradiction which

contributes to its integrated character as a global
socio-economic subsystem. Sectoral interdependence
becomes evident, for example, in the case of the average
tourist who has to obtain a passport, visas, a travel
ticket, reserve accommodation and make arrangements

for shopping, sightseeing and other forms of entertain-
ment. Intra-structural competition in tourism is
expressed, for example, in the case of different airlines,
hotels of tour agencies which have to compete with each
other for tourist clients.

"Mass Consumerism”. Mass Consumerism refers to

 

the unprecedented numbers of international travellers

today.

As many as 244 million people moved across

borders in 1977 and every year sees a rise

in this figure, despite unfavourable economic

circumstances. It is estimated that these

movements will show a growth rate of 2 to 3

percent per annum over the years to come,

between now and the year 2000 inEernational

tourist flows will have doubled.

This mass character of travel today contrasts with
the pre-twentieth century era. In the medieval period,
for example, voluntary travel was a highly dangerous ven-
ture, usually undertaken by merchants, pilgrims and per-
haps students, who were willing to brave the perils and
hardships of the way in the interests of profit, piety
or learning. From the eighteenth century to about the

beginning of the First World War, the "grand tour" was

popularized by Englishmen who toured Europe. The "grand

tour" symbolizing travel for pleasure eventually became
the rage for a small, select elite comprising the aristo-
cracy and the nouveau-riche bourgeoisie who had enough
wealth and leisure at their disposal. Despite the
phenomenal rise in numbers today, however, the elitism
attached to tourism remains. The greater majority of
tourists today originate in the rich Western countries
with the exception of Japan. It is estimated that the
Federal Republic of Germany leads this outflow "with
about 36 million departures annually."3

An important feature of mass consumerism in present
day travel is that mass travel has become for the first
time a major recreation activity, motivated by the avail-
ability of leisure and in search of leisure. Michael
Dower elaborates on the leisure motive:

Three great waves have broken since 1800.

First the sudden growth of dark industrial

towns. Second, the thrusting movements

along far flung railways. Third, the

sprawl of the car based suburbs. Now4 the
surge of the fourth wave, leisure....

Growth of Tourism

 

A tourist is generally defined by international'
standards as:

A temporary visitor staying at least 24 hours

in the country visited; and the purpose of

whose journey can be classified under the

following headings:

1. Leisure (recreation, holiday, health,
study, religion sport.) 5

2. Business--family, mission, meeting.

This definition, with slight variations, guides
the computation of tourist statistics.

Apart from being an intriguing phenomenon, the
spectacular growth of tourism merits closer scrutiny,
since the momentum of the tourist industry is determined
by the underlying motivation to travel abroad.

In all ages mankind has shown a nomadic

instinct, it is a form of atavism. The

longing to escape, the thirst for adven-

ture, the desire to see new horizons, are

links between the travellers of mythologi-

cal times and the mass displacements today.

Something of the wanderer or the adventurer

exists in us all and seeks to find outlet.

Psychological attitudes such as fashions,

deriving from the herd instinct, tend to

canalize the desires of crowds and make

them all want the same thing at the same

time. Thus, tourist resorts became fashion-

able and acquire an international reputa-

tion thanks to visits from persons in the

public eye; politicians, royalty, foreign

potentates, mil%ionaires, fihn stars, sports

champions, etc.

The impulse for diversity and change has been greatly
augmented today by certain socio-economic and technological
compulsions of modern industrial civilization, which
could be briefly described in general terms as follows:

1. The sharp rise in disposable income and the
process of embourgeosification has facilitated a standard
of living which far supercedes that of poor nations and
is crucial to the increase in the volume of tourists.

2. Substantial improvements in certain other

conditions of labour, such as shorter working hours, paid

10

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ll

vacations and a guaranteed periodic break from employ-
ment are other factors in the development of the travel
industry. The horrors of early capitalism during the
industrial revolution where men, women and children were
forced to toil for as long as 14-16 hours a day for
subsistence wages is a faint nightmare belonging to the
past in most developed industrial nations.

What is most significant in labour consciousness
today is the sharp dichotomy between work and leisure.
Work usually becomes synonymous with drudgery, a kind
of bread and butter bondage. The average working day
unwinds with mechanical precision and regularity which
captures and compresses into its deadening schedule
even the most personal activities. Work becomes obligatory
labour bound by contractual constraints. Most workers
and middle range executives, in short, the bulk of the
labour force, have negligible control over the work
process or the products. These conditions of personal
non-fulfillment are captured by the Marxist concept of
alienation.

The worker's activity reduced to a mere

abstraction of activity, is determined

and regulated on all sides by the movements

of machinery, and not the opposite....The

production process has ceased to be a

labour process in the sense of a process 7

dominated by labour as its governing unity.

In contrast leisure is a hallowed state, completely

in opposition to work. Leisure represents the pursuit

12

of fun--carefree liberation. More than any other form
of leisure, travel provides an outlet for escapsim,

of getting away from it all. Travel becomes a highly
desirable form of recreation, moreover, because it is
so strikingly symbolic of conspicuous leisure. In his

"8 Thornstein Veblen des-

theory of the "Leisure Class
cribes the social prestige associated with expensive,
exclusive, exotic forms of recreation.

3. The high degree of industrialization and
urbanization prevailing in Western Nations has greatly
strengthened the urge for at least a temporary change
in life style and surroundings. According to a 1980
World Bank report, the urban population of industrialized
nations is over 772 of the total population, but only
21-51% of the population in low and middle income countries
are urban dwellers.9

In ancient and medieval times architecture was
inspired by aesthetic ideals. The delicate wing tipped
pagodas of the orient, the slender minerats and mosaic
courtyards of Moorish architecture, the austere classical
profile of Ionic and Doric columns, bespeak architectural
visions of beauty. But the modern city with its square,
towering blocks of steel and concrete practically shutting
out the sky, has been designed primarily to serve utili-

tarian purposes. The claustrophobic effects of crowded

buses, dingy subways, tiny apartments and offices sealed

13

off hermetically to keep out the natural elements, rein-
force the need to escape, to redefine one's environmental
relationships.
In analyzing motives for travel it is interesting
to note that a survey conducted by Arthur D. Little Inc.,
a firm of consultants, reveals that factors such as income,
education of household head, paid vacation, sex (males
more active) and race (non-white less active) are posi-5
tively related to travel.10
4. The phenomenal development of transport and
telecommunication services have also greatly facilitated
travel. In the pre-industrial ages, transport was
rough, uncomfortable and exhausting. Most travellers
just walked, while the wealthier classes journeyed on
horseback, in litters, or in stuffy carriages along
narrow rutted roads often terrorized by brigands. Present
day travel has been completely revolutionized by tech-
nological marvels in transport and telecommunication
systems. The first railway was inaugurated between
Stockton and Darlington in England in 1825. The first
ocean crossing by the steamship Savannah took place in
1819. These are two significant events which marked the
beginning of a modern transport system, emphasizing
speed, efficiency and safety. This transport system,
particularly in the form of air travel, has greatly

contributed towards the tourist boom.

14

In summary, this part has identified the signifi-
cant socio-economic factors influencing the growth of
international travel have been analyzed. These are the
rise in disposable income, the greater availability of
leisure, values encouraging travel abroad as a presti-
gious and pleasurable activity, and the vast improvements
which have taken place in transport and telecommunication
services.

Develgpmentalism and
the Third World

 

 

It is now well over three decades since the conclu-
sion of the Second World War, a period which witnessed
the political independence of Asian and African colonies,
which together with Latin American countries form a group
of nations dubbed the ”Third World." The term designates
all those nations which are not part of the First World,
the advanced industrialized nations (the Western European
nations and Japan) nor the Second World (the Soviet Union
and Eastern Europe). As illustrated in Table 2, these
nations are characterized by low standards of living with
a substantial section of the population verging on
absolute poverty, or that level of dire subsistence in
which the most basic human needs are inadequately met.

....We have today about two thirds of man-

kind living on less than 30 cents a day.

We have today a situation where there is

about one billion illiterate people around
the world, although the world has both the

15

 

 

 

TABLE 2
Income
CNPpfl‘W‘II9SO Jail-J”! I950 I960 I980
Industrialized counties 3,841 5,197 9,684
Middle-income counties 6.25 802 1,521
Low-income counties 164 174 245
Average annual _mth Imam 1950-60 1990-50
Industrialized counties 3.1 3.2
Middle-income counties 2.5 3.3
Low-income counties 0.6 1.7

a. Excludes all centrally planned economies

Idmflfla

Life cryectancy at birth (years)

 

Increase.

1950 1960 1978 1950-78
Industrialized
counties 66.0 69.4 73.5 7.5
Middle-income ' F
counties 51.9 54.0 61.0 9.1
Low-income
countries 35.2 41.9 49.9 147
Centrally planned
economies‘ 62.3 67.1 69.9 7.6

a. Includes Bulgaria. Czechoslovakia, German DR. Hungary,
Poland. Romania. USSR

b. Includes Albania, Cuba, North Korea. Mongolia

c. Excludes China

 

Education
Adult literacy rate (percent)

1950 I 960 I975
Industialized
countries 95 97 99
Middle-income
countries 48 S4 71
Low-income
countries 22 29 38
Centrally planned
economies 97 98 99

a. Excludes centrally planned economies

 

 

 

Source: World Bank. World Develop—
ment Report 1980. (August 1980).

{J

16

means and technology to spread education.
We have nearly 70 per cent of the children
in the Third World suffering from malnu-
trition, although the world has the resources
to feed them. We have maldistribution of
the world's resources on a scale where the
industrialized countries are consuming
about twenty times more of the resources
per capita than the poor countries...The
present crisis, in the world economy and
in the relations between nations, is a
crisis of international structures. What
both worlds must come to grips with basi-
cally is a sick (transnational capitalist)
system which cannot be healed by expedi-
tious economic first aid. Marginal
changes will not be sufficient. What is
required is a new international order in
which all benefit from change. 1

In this respect a predominant trend in macro
development analysis is to group these countries together
on the basis of commonly shared national problems, and
hence the rationale is that exogenous forces such as the
tourist industry, for example, create broadly similar
dilemmas. However, it is also acknowledged that varia-
tions of a typical Third World dilemma may exist at a
micro-level or in a specific regional context regarding
the finer, more complex details of the manner in which
the local socio-economic system is ultimately affected.

Despite considerable diversity in folk culture
and political organization, Third World countries presently
face similar problems such as (with the exception of the
oil exporting nations) a weak purchasing and bargaining
power within the world market; high rates of illiteracy,

malnutrition, mortality, morbidity, illiteracy,

l7

unemployment and underemployment; and political insta-
bility and the rapid disintegration of traditional
cultures. Development programs are designed ostensibly
as remedial responses to these problems. However
grandiose the expectations, the bleak statistics of
agricultural and industrial productivity and the physical
quality of life recorded throughout the post independence
period attest to acute poverty. Deprivation sometimes
glimpsed in awful apparitions of grotesquely disfigured
kwashiokor victims makes it painfully apparent that

there is something grossly inadequate in the "progress"
made by the Third World.

In this context, development efforts comprise
measures taken to improve levels of productivity and
standards in poor countries. Thinking about development
and formulating and activating plans for development
has become the major preoccupation of diverse groups
ranging from an elitist coterie of national and inter-
national planners, political parties, academic and techni-
cal personnel to community development workers. Hetero—
geneity among the "developers" in terms of nationality,
cultural bias, political orientation and historical
experience has given rise to great controversy about the
meaning of development and current processes of program-
ming.

During the late 40's and 50's Third World

l8

governments were attracted by the glamour of moderni-
zation. Development was equated with Westernization.
The ultimate goal of development was to catch up and
become like the modern West by espousing the develop-
ment model of advanced industrialized societies. The
stage was set for a Rostow-like "Take-Off" into
modernity. Michael Van den Bogaert, the Director of
the Xavier Institute of Social Science, Ranchi, India,
draws attention to this trend which predominated in the
past:

The reference point and yardstick were the

developed countries of the West. They

decided what development and underdevelop-

ment meant, and did so as can be expected

in their own image. The strategy for

development was the transfer of funds,

technical know-how from developed to

developing countries.... 2

The different, but yet successful patterns of
growth demonstrated by the Soviet Union, China and
Japan and the obvious impracticability of the envisioned
unilinear route to development, gave rise to thinking
that the same goals of material wellbeing, now modified
to becoming simply the elimination of poverty, could
be attained by different patterns of development. These
patterns, though differentiated by the unique socio-
historical heritage of each country, can nevertheless
be dichotomised into two broad approaches to economic

growth, namely, the "Inward Looking Strategy of Economic

Growth" and the "Outward Looking Strategy of Economic

19

Growth."

In the early 1960's, the Economic Commission for
Latin America led by Raul Presbichl3 opened a new and
radical perspective on the dynamics of the world capi-
talist system, by elucidating factors leading to the
peripheralization of Third World nations. The recommended
solution to the subordinate status of the Third World
impoverished by exposure to metropolitan exploitation
was to break off the ties of dependancy and embark on
an independent course of internal development. Inspired
by this current of radical thought, many Third World
countries severely restricted transactions with Western
industrial nations as a principle of national economic
policy and concentrated on an "import substitution” type
of advanced industrialization. But dependancy on imported
raw materials, semi-fabricated parts, machinery and
expertise continued, so much so that at times it would
have been cheaper and a lot less bothersome if the finished
commodity had been imported wholesale. The gap between
the rich and poor nations thus continued to widen.

Although per capita income (at 1970 prices)

in the developed market economies increased

from about $2,000 to $ 3,000 during the

period 1960-1975, in the development coun-

tries it rose from $169-$260. It has thus

appeared that the international and regional

development efforts (or rather, the mechanics

of the international economic system) has

failed to contain let along eliminate
absolute poverty.14

20

The development intentions of international assem-
blies too, though begun with high hopes, have on the
whole tended eventually to falter and fade away.

By the end of the 1960's, these hopes had
been shattered. The first UN Development
Decade, launched with high hopes in 1961,
fell short of its objectives; its extension
in 1970 was viewed with dampened expecta-
tions. The Alliance for Progress, also
launched in 1961 with similar hopes,
quietly faltered. Another regional effort,
the first Yaounde Convention of 1963, was
replaced by the second Yaounde Convention
and the Arusha Convention (1969), but the
expectations associated with them were

not fulfilled (in spite of improved con-
ditions negotiated in the latter two agree-
ments). The UN Conference on Trade and
Development (UNCTAD) had a promising

start with its first meeting in 1964, but
did not make considerable progress in its
second (1968) and third (1972) sessions,
thus only increasing the sense of frustra-
tion in developing countries. The same

can be said for the Group of 77 (G77) which
had constituted itself in 1964 during
UNCTAD 1.1

Disillusionment with previous attempts at development
has given rise to the search for new approaches. The
fiasco of the "trickle-down” effects anticipated by
economic growth, as recorded by increasing levels of
poverty, led to the re-examination of growth dynamics.

The result was a strong movement in the 19703 towards
achieving "Redistribution with Growth", a proposition
which provided a broad umbrella for the formulation of
sub-developmental themes. The most salient of these
are:

Participation. The need for participation was

 

21

realized in the context of the failure of hitherto
existing highly centralized, rigidly hierarchic and
authoritarian "top-down" methods of development adminis-
tration. Participation envisages the active involvement
of all members of a given community in the decision-
making and implementation processes of all development
plans intended to benefit them. Participation requires
that patterns adopted should be compliant with indigenous
norms and values.

The basic needs-oriented approach. A basic needs-

 

oriented strategy of development is advocated as an
alternative to the extravagant and wasteful consumerism
encouraged by the model of Western industrial development.
According to this View development should concentrate

on the simple, austere goals of meeting the essential
needs of the poor masses.

Appropriate technology. Low cost, locally manu-.

 

factured, widely applied, simple technologies are now
being considered to be more appropriate for use in Third
World countries, instead of adopting capital intensive,
expensive, high energy-consuming, imported technologies.

Eco-development. Heeding the destructive, polluting

 

effects industrialization has on the biosphere and the
psychological problems of alienation, eco—development
rationale insists that development efforts be guided

by sound ecological principles in order to create a

22

harmonious, balanced, sustained relationship between
the social, economic and physical components of a
community life style.

With the exclusion of the systematic development
programs of Cuba and China, most Third World countries
have, on the whole, made haphazard, irregular, fragmented
and largely unsuccessful attempts at achieving "redis-
tribution with growth" through methods of taxation, land
reform, food subsidies, subsidized services and special
procedures such as compulsory savings. A certain degree
of redistributive justice has been realized in a few
countries like Sri Lanka and Tanzania at the cost of
retarding economic productivity in order to improve the
general quality of life.

The current developmental themes, calling for a
more egalitarian style of life, have radical overtones,
yet limited to mere rhetoric. How, it may be asked,
is "participation” to become a reality? As demonstrated
woefully by the Panchayat Raj of India, poor landless
peasants and small landowners tend to be thoroughly
intimidated in the presence of high caste landowners,
who are usually allied to high ranking officials.

These vaguely defined development policies also
suffer the limitation of focusing almost exclusively on
internal or intra-national dynamics of progress. Not

surprisingly therefore these strategies are at present

23

intensively propogated through ”research findings”,

”guidelines for development” and aid" linkages by metro-

politan agencies engaged in ”development," like the World
Bank, International Monetary Fund, U.S. Agency for Inter-
national Development, and a host of other organizations
which, despite seeming benevolence, are firmly committed
to uphold the present global status-quo. The antithesis
to this approach gathers stormy strength in international
forums today, when Third World nations press for the crea-
tion of a "New International Economic Order.” More
specifically Mahbub Al Haq suggests:

--revamping of the present international
credit system by phasing out national
reserve currencies and replacing them
by an international currency;

--gradual dismantling of restrictions
in the rich nations on the movement
of goods and services as well as labour
from the poor nations;

--enabling the developing countries to
obtain more benefit from the exploita-
tion of their own natural resources
through a greater control over various
stages of primary production, processing
and distribution of their commodities.

--introduction of an element of automati-
city in international resource transfers
by linking them to some form of inter-
national taxation royalties from the
commercial exploitation of international
commons or international reserve crea-
tion;

--negotiation of agreed principles between
the principal creditors and debtors for
an orderly settlement of past external
debts;

24

--negotiation of agreed principles between
the principal creditors and debtors for
an orderly settlement of past external debts;

--renegotiation of all past leases and con-

tracts given by the developing countries
to the multinational corporations under
a new code of conduct to be established
and enforced within the United Nations
framework;

--restructuring of the United Nations to

give it greater operational powers for
economic decisions and significant in-
crease in the voting strength of the
poor nations within the World Bank and
the International Monetary Fund.

Agitation for a "New Economic Order" is, however,
only the economic expression of an alternative approach
to development which emphasizes the need for more egali—
tarian social relations based on the realization of human
dignity and freedom for the world's down-trodden people.

The debate on "development" thus continues. In
this respect the impact of tourism as a strategy of
development shall be analyzed in the light of the
rationale and the yet groping attempts to realize
comparatively new themes in developmentalism which
stress "appropriateness," ”economic growth with distri-
bution" and more egalitarian "North-South" relations.

Tourism Linkages With
Developmentalism

 

 

Tourism in the Third World is not a random, sporadic
phenomenon. On one hand the tourist industry is closely

integrated by the global travel industry, and on the

 

25

other hand tourism is enthusiastically propagated by
Third World governments with such a strong sense of
commitment that tourist activities are often incorporated
into national plans and justified by linkages established
between tourism and development priorities. It therefore
becomes important to analyze the advocacy and growth of
Third World tourism in the context of the preceding dis-
cussion on development.

Three levels of linkages could be conceptualized
between tourism and development:

1. Tourism and economic growth

2. Tourism and "Redistribution with Growth"

3. Tourism and the ”New International Economic

Order."

Though "developer” circles have long discarded
the original G.N.P.-centered approach to development,
national governments in Third World countries are still
intensely preoccupied with prospects for economic growth.
As stressed in many government -sponsored feasibility
reports and evaluation reports on tourism operations
at a national level, the case for promoting tourism in
particular rests on the perceived need for economic
growth. Growth through tourism is anticipated for the
following reasons:

1. Tourism as one of the fastest growing indus-

tries in the world could assuredly be capitalized upon

26

to augment urgently needed foreign exchange and thereby
help solve national balance-of—payment problems which
have now reached critical proportions;

2. Tourism as an industry belonging to the
tertiary service sector of the economy or has the poten-
tial to diversify Third World economies stagnating in
the primary extractive stage;

3. By exerting a "multiplier effect" tourism
stimulates the growth of other sectors in the economy;

4. Tourism acts as an engine of growth in pro-
pelling infrastructural development in hitherto backward
areas;

5. Tourism popularizes and increases demand
for local craft products;

6. Tourism is also rationalized because this indus-
try is seen to help preserve aspects of traditional cul-
ture in danger of losing functional value completely.
Tourism is regarded as having the capacity of rendering
commercial and political benefits by acting as a
medium for promoting a nation's image favourably abroad
and thereby enhancing international understanding and
mutual friendship too.

The linkage tourism bears to the ”Redistribution
with Growth" theme is much weaker than the relationship
with the theme of exclusive economic growth. The linkage

with redistribution is most evident in the advocacy of

27

tourism for its employment and income-generating capa-
city, which would relieve the tension building up in
most Third World countries owing to endemic unemploy-
ment and underemployment. It could be said that the
tourist "multiplier" and "infrasturctural growth" argu-
ments, too, are linked to the redistribution theme,
though more marginally.

The third development linkage is more anticipated
than actual. This linkage forsees elements of the new
international order as emerging and strengthening through
induced changes in the power structure of the tourist
industry.

The arguments which hinge on validating tourism
on the basis that it makes opportune the preservation
of indigenous cultural traditions and arts which would
otherwise have vanished and which looks upon tourism
as a bridge to international understanding, tend to be
of secondary importance and are subordinate to the
economic interests vested in tourism.

In the ensuing chapters, the causes and effects
of these develpmental linkages with tourism are discussed
in greater detail. The arguments for tourism are criti-
cally examined. Special effort has been taken to high-
light the often unanticipated and largely obscure social
and economic costs incurred by the host country popula-

tion owing to tourist operations.

CHAPTER TWO

TOURISM AND ECONOMIC DEVELOPMENT

The Imperative of Earning
Foreign Exchange

One of the main reasons for advocating tourism
in the Third World is the strong belief that the tourist
industry is a valuable source of foreign exchange.

Tourism is a major economic activity.
In 1975 over 200 million international
visitors spent around US$45 thousand
million after reaching their destina-
tions. Of these amounts, the lower-
and middle-income countries secured
approximately 30 million visitors and
earned US$10 thousand million from
them. These earnings came to around
1 percent of the gross national product
of the destination countries. More-
over, they were second only to foreign
exchange earnings from petroleum ex-
ports and were almost double those
from sugar, which was the next most
important primary commodity exported
from developing countries in that year.
In many countries, domestic travel by
residents of the country is also sig-
nificant, so that tourism is economi-
cally more important than the figures
on international travel alone would
imply.

Before discussing this controversial issue it
is relevant to briefly examine the prevalence of an
acute foreign exchange crisis in non-oil exporting Third
World nations. The lack of capital, especially in the

form of foreign exchange, is considered to be a major

28

29

economic obstacle faced by the Third World. Foreign
exchange is urgently needed by poor nations chiefly
for the following reasons:

1. The massive importation of foodstuffs and
othr basic consumer goods owing to:

a. The perpetuation of an economic system
still rooted in a colonial structure of the past
whereby the most fertile areas have been requi-
sitioned for large-scale commercial crops geared
towards export production;

b. Low productivity in the semi-subsistence
agricultural sector, which is comprised of 70-
80 percent of the total population;

c. The inadequate achievements of development
strategies applied in the past to prevent the
excessive outflow of foreign exchange. For

example, though the "Green Revolution has served
to substantially increase crop yields, as illus-
trated in Table 3, this improvement has not yet
made most poor nations self-sufficient in basic
foodstuffs.
(d) Hunger in the Third World which has

been considerably aggravated by the high rate

of population growth-~currently between 2.7 and

3.5 percent per annum--causing excessive land

fragmentation and exacerbating overall national

30

unemployment and underemployment.

TABLE 3

DEVELOPING COUNTRIES: GROSS AGRICULTURAL,
EXPORTS AND IMPORTS 1970 AND 1978
(thousand million U. S. dollars)

 

 

 

 

 

 

 

 

F nevizcomuo coum'mus: moss acmcucrumc 12me mo
meoms mo mo um (Walnu- U.S. entrant
AFRICA EXPORTS
:97: ‘
1970
um an.
im
mo
wean usr
me
1970 ,,
ran east
.tm
mo
1. a ,
' Cereals -. a pm 0 Devon..- mm
" e a
Source: Commodity Revrew and Outlook:

1979-1980." Food and Agriculture Organi-
zation of the United Nations.

2. Foreign exchange is also essential for the
importation of capital goods, foreign expertise and tech-
nology necessary for the construction of a modern economy.
The intensive adoption of appropriate technology could
only lessen but not totally eliminate this component
of imports.

3. Debt reservicing (See Table 4). The situation
in Tonga, for example, illustrates the economic dilemma
typical of most Third World nations, especially the

countries in the lower per capita income bracket.

31

TABLE 4

PUBLIC AND PRIVATE DEBT OF THE
DEVELOP INC COUNTRIES
(US$ millions.)

 

 

 

 

 

 

auwm annn annn‘ awn” amnm'
. Disbursed debt M.
- byNfiNI .
More advanced Mediterranean
countries 9,193 29,114 56,085 69,309 79,000
Africa south of the Sahara 7,028 14,989 27,164 32.326 38,000
North Africa and Middle East 4,263 13,884 35 .677 42,202 46,000
East Asia and Pacific 8,836 24,623 45,711 51.920 58.000
South Asia 11.961 m.686 28,895 30,116 33,000
Latin America and the Caribbean 21,163 64,843 123,362 143,308 162,000
Total 62.444 168.139 316.894 369.180 416.000
Dish-cell debt oath-ding
Official sources ‘ 34,877 74,241 122,189 136.177 154.011)
Private sources " 27,567 93,898 194,705 233,003 262 .000
Total 62,444 168,139 316,894 369,180 416,000
g 1970 1975 1978 1979 1980 '
runsuau
Official sources 2,519 5,481 9,168 11,480 14,000
Private sources ‘ 5,329 18,712 42,723 55,704 62,011)
Total 7,848 24,193 51,891 67,184 76.000
Net disbursement
Official sources 3,862 12,208 14,711 15,152 13,000
Private sources 4,147 20,445 38,557 38,185 35,000
Total 8.009 32,653 53,268 53.337 53.000
Norezbetailsuiaynotaddtototalsbecausedrounding.
| Estimate.
bIncludesatune Wbydfiddmmmhnmwwawbkbodyhfiemn'm.

 

Source: World Bank.

 

32

Tonga is primarily an agricultural nation
of small landowners. Despite government
efforts to modernize and increase food
production, the natural resources of the
islands are inadequate to feed the growing
population. For greater cash-flow, pri-
marily to meet Tongan consumer demands
for Western products, Tonga has become an
exporter of agricultural commodities. It
is germane to note, however, that food-
stuffs (especially meat and chicken)
account for almost a third of Tonga's
annual imports. In 1973, for example,
total exports amounted to almost U.S.
$5,000,000, with copra being the most im-
portant export (at U.S. $3,347,000).
Dietary inadequacies among Tongans,
occasioned by high foods costs, are best
assessed by the Minister of Health who
stated in 1973 that protein-calorie mal-
nutrition is prevalent among young Tonga
children to a disturbing degree. In

the same year seventeen cases of severe
”nutritional deficiency” required hos-
pitalization, two of which became fatali-
ties.

Spiralling inflation has eroded Tongan
buying power over the recent years, as indi-
cated by the Consumer Price Index (CPI).
Established in 1969 with a September

base of 100.0, the CPI is earning less

than U.S. $37 a week. Heavily biases
towards food items (64 percent of all

items on the index) of the CPI has risen
steadily to 172.4 in six years. Increases
in food prices, both domestic and imported,
have consistently contributed most to this
upward trend. In one of the largest

overall increases, 11.4 percent in the quar-
ter of June-September 1973, the fruit and
vegetable component of the CPI increased by
46.9 percent. In the second largest increase
11.2 percent from December l972-March 1973,
this same sub—group of basic staples in-
creased by 33.1 percent while the cereal
sub-group (bread flour and rice) increased
by 31.6 percent.18

Adverse terms of international trade constitutes

the primary reason for the foreign exchange crisis

33

prevailing in most Third World countries, with the
exception of oil exporting nations. Such unfavourable
terms of trade bring in dwindling income from traditional
exports while the cost of imports are soaring. Thus
Michael Manley concisely explains Jamaica's dilemma:

In 1965, the average price of sugar realized

by Jamaica was Jamaican $73.7 compared with

Jamaican $1,536 (cif) for the Ford 5000 trac-

tor--a ratio of one tractor to 20.84 tons of

sugar. In 1979, the Ford 5000 tractor was

no longer available. It has been replaced

by a new model called the 66.00 which is

slightly more powerful but is designed for

exactly the same purposes. For 1979, the
provisional average price per ton of sugar

is Jamaican $534 compared with.Jamaican

$30,905 for the Ford 66000 tractor--a ratio

of one tractor to 57.87 tons of sugar. Inso-

far as sugar and tractors are concerned,

the ratio has moved from 21 to 58 tons of

sugar to provide the foreign exchange to

bring one tractor to Jamaica.19

Table 5 further illustrates the weakening commod-
ity purchasing power of poor nations.

Despite post-colonial tinkering with economic
diversification, Third World economies have not yet
shown the capacity to break away from the colonially
forged matrix of dependancy on primary extractive
functions, such as producing rar ow semi-processed
materials having a very low demand elasticity. Such
primary extraction coupled with weak bargaining power
has impelled the urgent search for alternative means

of solving or at least alleviating the foreign exchange

problem.

_. 4-. -.__..___

 

 

 

34

TABLE 5
SOUTH INDIES: WHAT COMMODITIES CAN BUY

 

nnwmmcnapinmmgmdm
exports. Commodity purchasing power is measured In the following terms:
(ll how men on one tonne 61 east! continuity can buy:

(21 the volume at debt service peyulents one tune e! eeen amenity -
. _ 197!
can cover in US Mars. —
131 the-dumotdeecsenoee paymentenetenneeteedlmodity ...... .. MI”,
can cover in Dutchman. 353-53-55- M 1”?

Tbel-ttueinoeembevebeenindudedbeeeuaedehmieingbee
beemnnudangfluimteimmmeeeilmrtonnu
martenellyocneekeyim

 

   

 

 

 

OM debt inter-e
eeeeree by t tonne
e! we,
07.019
co»... mus-=—
m 3:2:-zed-92:93:32;
m“—
LEAD mes ,
14.” :kkkitéi'itleitl:2tifl:&5$$
TIN
ZINC
m 7° _ - m0: m m"—
cocoa m; m 31.07”“ “30,"
79.3; ::;:;:;:-;-:-:-:-:-:-:«:.:-‘.?f men 3:1:1:1:3:3:$:1:3:1:1:1:1:1:1:3: 43.014 :5533:2221$235523
we: _ ms; _ um _
COFFEE ”as" 12.73:"
“_m 'I'Z'l'I-Z'Z~1-I'Z'Z-I‘I ".32. :2:2;l;2;2;2;2;2:2:Z;Z;2;I;£:2;2
"900 _ was: — «.m—
corron «my! me" am"
an .-:-:-:-:-:-:-:-:- 1.599 :2:1:1:2:1:1:1:3:i:3:- 3.230 :i:2$:2:1:3:1:1:3:1$
73 0° _ "m— m"—
l
ALUMINIUM Je.55_ 6.92 ... 24.714— 3
34.76 :3zi:1:3:1:1:3:3:1555:" 6.604 :3233353323:1:1;1:1:3:1:3:3:1:3: 22.900 :1:i:1:1:1:3:1:1:-':1:-‘;-;-:-‘: i
62 0° _ 165'— mn —
auaaen mun—i.— «m— m..—
317. -:-;-;-;-:-:-;-:-:-:-:~:- 3,377 :;:;:-:-:-:-:-:-:-:-:;:;:-;-:-:- 39,“. .;.;.;.;;;;;.;:;;;;;;;.;:;.;.;.;
:9 oo — 2.866 — 10.79? —
sou arm a..." can“ snow—
7.“ .............. Jim? 7.39 :l;2;.;.;l;.;.;93.3.3) gm Z;2:$:'.;;;;;Z;Z;L;l;;$
“ 89 — 6 m u 2w!—
SUGAR mu 1.24s! ense-
us :-:-:-:-:- v.33: 9591-1395 4.646 6:121:15;
.om_ me_ am—

 

Sggrce: From South; The Third World Magazine, November,
1.

 

 

35

Since the 1960's several Third World nations
have eagerly pursued tourism as a most promising source
of foreign exchange. As illustrated in Table 6, the
special attraction of tourism in this respect is that
it is one of the fastest growing industries in the world
today. Tourism demonstrates a remarkably high degree

of demand elasticity when compared to traditional

 

 

exports.
TABLE 6
TOURISM RECEIPTS AND WORLD EXPORTS

Average

Amount in billions (one annual
Item thousand millions) Percent growth

increase rate

1950 1955 1960 1965 1966 195041966

 

Value of world
exports of pri-
mary products 11.8 16.4 20.1 26.4 27.9 137% 5.5%

Value of world

exports of

manufactured

goods 10.0 15.8 24.6 38.6 43.1 331% 9.5%

Total 21.8 32.2 44.7 65.0 71.0 226% 7.7%

Estimated

value of

world inter-

national

tourist re-

ceipts 0.75 1.36 2.43 4.11 4.54 505% 11.9Z

International

tourist re—

ceipts as

percentage of

world exports 3.4% 4.2% 5.4% 6.3% 6.3% -- --

Source: U.N. Balance of Payments statistics and I.U.O.T.O.

36

The majority of tourists, however, tend to gravi-
tate towards countries in the northwestern belt of the
globe, so that the so-called "developed" or rich
western nations earn the major component of world
tourist earnings.

The rich countries earned the lion's share

of the $36,000 million in income generated

by tourism in 1976. The United States

came first, with $6,375 of this total,

France second with $3,613 million and the

Federal Republic of Germany third with

$3,211. The Western countries are thus

the greatest participants of these flows,

even if their tourist balance is in

deficit.20

But Third World nations nonetheless proceed to invest
heavily in tourism. These countries perceive themselves
as having certain advantages over the economically
developed nations, two favourable circumstances being
that:

1. Tourists from rich countries, who form the
bulk of travellers, benefit from an international rate
of currency exchange which augments the value of their
own money, thus enhancing their buying power and
enabling them to take a comparatively low-cost luxury
vacation; and

2. The exotic attractions afforded by traditional
cultures and natural environments which are as yet
relatively unswamped by the uniformities of modern

Western civilization familiar to most tourists.

Countries which have invested in tourism often show

37

 

impressive records of substantial and rapidly increasing

earnings.

in India estimates that

The Institute of Economic and Market Research

Receipts in India, from tourism, starting

from a very low figure of Rs. 4 crores
in 1950 have crossed Rs.

1975.

100 crores in

EECQHC

Tourist receipts thus have recorded
a compound growth rate of 13.7 p
per annum between 1951 and 1975.

Table 7 illustrates the growth of Mexico's export

income through tourism.

TABLE 7

COMPARISON BETWEEN TOURISM AND
EXPORT RECEIPTS, MEXICO,

1960—67

 

Tourism
Income as

Tourimn
Income as
a Percent-

 

 

Tourism Export a Percent- age of

Income Income age of Ex- Trade Bal-
Year (million pesos) 4port Income ance Deficit
1960 $1,902.5 $ 9,233.8 20.6 33.9
1961 2,050.6 10,043.3 20.4 48.9
1962 2,232.9 11,244.5 19.8 73.4
1963 2,632.1 11,699.9 22.5 69.3
1964 3,007.1 12,780.6 23.5 51.1
1965 3,435.5 13,923.7 24.7 61.7
1966 4,104.5 14,534.5 28.2 74.2
1967 4,538.8 13,797.5 32.9 56.3
Source: Mexico 1966 (Mexico City: Banco de Comercio

 

Exterior, 1966), pp. 173,

180; Mexico 1968 (Mexico City:
Banco de Comercio Exterior, 1968), pp. 291, 296, 332.

 

38

The expenditures of a tourist outside his own
country involves foreign exchange transactions. "Inter-
national tourism therefore appears basically as a
mechanism of redistributing in the poor societies the
resources of the rich ones."22

Tourist receipts in the form of foreign exchange
are entered in the credit side of a nation's travel account
in its balance of payments statement. In this manner
the foreign exchange receipts from tourism become compar-
able to receipts of foreign exchange earned by merchandise
exports. However, the travel account of a nation regis-
ters only the gross value of tourist receipts and in no
way indicates the substantial leakages caused by the
internal dynamics of the tourist industry.

On closer examination the advocacy of tourism
based on the rationale that the tourist industry is one
of the most lucrative avenues of earning foreign exchange,
is not as sound as professed. This is because there is
a significant national outflow of foreign earnings which
tends to be much greater in poor countries owing to
general conditions of poverty, i.e., lack of capital,
weak political power, and weak bargaining power, resulting
in dependancy on external forces. Unlike the inflow
of foreign exchange, however, this outflow tends to
be indirect and not easily discernible.

Such leakages in foreign eschange usually occur

 

39

for the following reasons:

1. The lack of initial capital necessary to set
the industry in motion has necessitated collaboration
with foreign investors, usually powerful multinational
corporations which cause the remittance of tourist
earnings in the form of profits, salaries paid to high
ranking hotel personnel, tour operators, itinerant
foreign artists, etc.

Out of the total of 14 hotels (including

guest houses) in the Gambia, 9 are local

(mainly Lebanese) enterprises with a

capacity of 435 beds. Five hotels are,-

for the main part, foreign enterprages

with a total bed capacity of 1440.

In Kenya, native Africans see very little

of the profits from the safari trade. Of

more than the sixty safari firms in Nairobi

only one is wholly African owned; the in-

dustry is entirely dominated by old schgzl

colonials--petty monsters of bigotry...

2. The increasingly oligopolic character of the
tourist industry on a global scale which has resulted
in the vertical integration of different operations such
as transport, especially airline business, tours, and
the handling of certain imports necessitated by tourism.

These syndicates and combines could well benefit
tourists by offering package tours and charter flights
at concessionary rates enabling low and middle income

groups to travel. But this reduction in spending usually

results in the deflation of profits for the host country.

ffl

r1-

 

40

Thus, the growth rate of tourist receipts

is lagging behind the growth rate of tourist

arrivals. This may be due to the fact that,

as already explained, there is a wide gap

between the total money spent by tourists

on their excursions and the money actually

received by the host country out of this

expenditure...Unfortunately, this per capi-

ta expenditure is not rising, rather it had

declined from Rs. 4780 spent in 1952 to a

bottom low level of Rs. 1273 in 1961 and

to Rs. 2239 in 1975.25

3. The growth of oligopolic control within the
tourist industry also facilitates the remittance of money
through "transfer-pricing” often resorted to by multi-
national firms, to avoid taxation. (”Transfer pricing”
refers to practices of deliberate overpricing or under-
pricing, usually for purposes of avoiding taxation.)

In tourism prior transactions in the "originating country"
could considerably lessen expenditure in the host country.

4. The expenses incurred in promotion and publicity
campaigns abroad.

5. Though tourists come in search of exotic experi-
ences, it is assumed by the host country that they wish
the amenities available "back home." This had resulted
in the large scale importation of foreign delicacies,
liquors and other fine consumer items, and services
belonging to brands familiar to Western foreigners.
Research in the Gambia reveals that

This import of goods, which the tourist is

accustomed to from home, (ranging from type

and make of furniture, to meals cooked with
Swedish ingredients and garniture) is one

41

of the prerequisites for successful tourism.

Direct demonstration effects caused by con—

tacts with the tourists have also been shown

to increase the demand of the local popula-

tion for foreign commodities.

6. The importation of luxury vehicles for trans-
portation and materials to construct and maintain luxury
hotels.

7. Expensive spending on luxury imports by
local elite groups engaged in the tourist industry is
another strong contributory factor causing the outflow
of foreign exchange earnings.

It could be postulated that as in other economic
transactions, that the greater the degree of poverty
and dearth of westernized native personnel, the more
"backward" or "retarded" the country from the point of
view of economic development and "modernity", the greater
the degree of foreign control over its tourist earnings
and concomitantly the greater the outflow of foreign

exchange.

The 1964 East African survey revealed the
following pattern/leakage

Imports for the maintenance of the sector

alone - 402
Profits/Wages and Dividends - 40%
Taxes - 20%

Working on the basis of these figures it
would be seen that at anything above 50%
of the earnings in this sector is de facto
repatriated abroad.

To guarantee profits and the continuation of

business, foreign agencies tend also to apply political

42

pressure to host countries.

They express their wishes through lobbies
like IFTO (International Federation of Tour
Operators), TOSG (Long-Haul Operators Study
Group). These trade bodies think nothing
of flying a delegation to a host country

to compalin about the deterioriation of its
airports, tax structure or general ineffi-
ciency. LOSG for instance, visited the
Tanzanian tourist authorities to complain
about the deterioration of that country's
standards.2

The Tourist Multiplier

 

A corollary to the phenomenon of economic growth
is the tourist multiplier. The "multiplier" is a statis-
tical device used to estimate the "spread effects" or
chain of transactions triggered by intruding economic
forces. The multiplier is also used to gauge the economic
impact of tourism. In this respect the multiplier esti-
mates the tourist's "expenditure profile" by calculating
the flow of expenses generated by a tourist and how this
experience seeps throughout the whole economy, promoting
its overall growth.

Unlike mining operations or commercial crops, the
traditional economic pursuits of Third World nations tend
to be limited to specific regions depending on the avail-
ability of natural resources; tourism is more flexible.
Therefore its "spread" effects are considered greater,
benefiting shopowners, entertainers, transport agents,
construction workers, craftsmen, etc. The initial expen-

diture of the tourist exerts a multiplier effect when

43

this money changes hands through successive transactions,
augmenting the income of a particular business at each
level, thus resulting in a cumulative process of growth.
For example, when a tourist buys a souvenir, part of the
money would be used by the craftsman to buy raw materials
in order to continue his trade.

The suppliers of raw materials would in turn expend
their earnings buying provisions in a neighbouring store,
etc., and the value of the primary transaction would
multiply several times over in this manner. Take, for
example, the new found prosperity of Khajuraho in India.

The money spent by the tourist at a particu-
lar spot greatly helps the development of
the areas surrounding it. It brings a lot
or prosperity to that region. Khajuraho in
India which now is an an internationally
famous tourist spot, is an example. To
illustrate, Kharujaho, a remote and unknown
village is recently as 15 years ago, is

now on the world tourist map attracting
thousands of tourists both domestic as well
as international. Today, Indian Airlines
(domestic carrier) flies a jet plane between
New Delhi and Khajaraho and seats are not
easy to come by. Thousands of tourists
visit the place by air, rail and road trans-
port every month. The place had provided
employment to hundreds of local people.

As a result of employment, local people have
additional income to spend. There is
already a thriving clay model industry
devoted to making replicas of the famous
temple sculptures. Number of shops deal-
ing with items of presentation, handlooms
and handicrafts have created jobs for many
people. The subsequent development of

areas around Khajuraho will provide addi-
tional employment opportunities resulting

in general prosperity of the people.

44

The Checchi Report is a classic study on the tourist
multiplier. Using data on income disbursement from the
Hawaii Visitors Bureau and the Government of Singapore,
this study subdivides tourist expenditure into five cate—
gories, and estimates that 5 rounds of spending would
result each year, sprouting from the initial or primary
expenditure relating to each category.

Adopting a different procedure, another study--
the Zinder Report--determines four expenditure categories
and assumes four rounds of expenditure transaction trans-
actions. The growth dynamics of the multiplier could
be explained as shown as follows:

(i) A notional $1000 to be spent by a tourist

is divided, on the basis of the dominant

tourist spending pattern in the East
Caribbean, into four categories so that:

Accomodation $315
Food and Beverages $385
Purchases $150
Local transportation $150

Total $1000

(ii) It is assumed that there will be four rounds
of transactions. Thus the initial spending
would result in three succeeding rounds.

The rounds for ”accommodation" are:

Round one $315.00
Round two $248.37
Round three $151.91
Round four $ 61.00

Estimated total
spending $ 776.00

(iii) The estimated annual turnover per dollar is
arrived at by dividing the estimated total
spending of $315. The result is 2.46.

 

ECC

T91;

 

45
After following a similar procedure for
"food and beverages" the result is 2.22.

(iv) The accommodation co-efficient is also
assigned to sight-seeing and local
transportation. Similarly, the food
co-efficient is assigned to purchases.

(v) Finally, as a result of the weighted aver-
age of the 4 rounds, the Zinder Tourist
Multiplier of 2.3 is derived for the East
Caribbean.

It may be added that according to the Zinder

Report, the comparable multiplier effect of

tourist spending is 8.4 in Yugoslavia and

3.2 in South East Asia. It was explained

on p. 46 that a multiplier effect of 2.3

means "that $1000 spent by tourists would

add, on the average, about $2300 to national

income (or GDP) 38fore the impact wears off

through leakage.

It is observed that tourism effects three multiplier
types, which are, however, linked complementarily:

l. The output, sales or transactions multiplier,
which assesses the impact of tourism on the general
economic activities of a given area;

2. The income multiplier, which calculates the
effects of tourism on personal incomes of the area; and

3. The employment multiplier, which traces the
relationship between tourism and the growth of employment.

As evidenced in Table 8, however, the multiplier
effect of tourism is exceedingly variable.

One factor which accounts for this variability—-
a factor which tends to considerably reduce the growth

effects attributed to the multiplier--is the problem of

"leakages.” These leakages take place because of

46

TABLE

8

ESTIMATED TRAVEL MULTIPLIERS

 

 

Source

 

 

Country Multi lier Value
Ireland 2 .7
Lebanon 1 .2-1 .4
Hawaii 0 .9-1. 3
New Hampshire, 1.6-1.7

U. S . A.
Pakistan 3 .3
Caribbean 2 .3
Caribbean 0 .58-0 . 88
Anglesey, Wales 1 .25

Daniel B”. Suits, An Econometric
Model of t_he Greek Economy
(Athens: Center of Economic
Research, 1964) PP. 119-21

." Study of the Economics of Tourism

in Ireland" (1966)

Pierre Corra, "Nouvelle etude
prospective sur l'apport du
developpement economique du
Liban" (1967)

Paul G. Craig, "The Future Growth
of Hawaiian Tourism and Its
Impact on the State and on the
Neighbor Island" (Honolulu:
University of Hawaii, 1963),
pp. 105-07 (mimeographed)

Vacation Travel Business in New
Hampshire (Concord: Division
of Economic Development, State
of New Hampshire, 1962)

Master Plan for Development gt
Tourism in Pakistan (Karachi:
Directorate of Tourism, 1965)

H. Zinder and Associates, 11.1.9.
Future of Tourism in the Eastern
Caribbean (Washington, D. C..
1969)

Iohn M. Bryden, Tourism and
Development (Cambridge:
Cambridge University Press, 1973)

B. H. Archer and Christine 8. Owen,
"Towards a Tourist Regional

Multiplier," Regional Studies 5
(1971): 289-94

 

Source:
(Cambridge:

p.

75.

John M. Bryden, Tourism and Development.

 

Cambridge University Press, 1973).,

 

47

outflows and taking place across national boundaries
from earnings temporarily accrued by different types and
levels of local business associated with tourism. This
occurs for the very same reasons discussed in relation
to foreign remittances. With regard to the findings
of the Checchi Report

The study estimated that the value of the

multiplier for high leakage (poor) nations

would be 3.2 within one year of the original

expenditure incurred by a tourist. On the

other hand, the low-leakage (rich) nations

would have a multiplier of 4.3.31

According to these estimates the multiplier effect
in rich countries is much higher. The lower import con-
tent of tourism, the significantly greater degree of
ownership and control of tourist operations, and stronger
terms of national currency provide armor against excessive
loss of income gained through tourism. "The wider the
region's economic base, the fewer the leakages and, con-
sequently, the higher the multiplier."32

Variability in multiplier estimates also occurs
because of different procedures of calculation used.
For example, the Zinder Report has been severely criti-
cized by Levitt and Gulete, and also by John Bryden and

Mike Faber.33

These researchers denied the high multi-
plier benefits indicated by the Zinder Report for the
Caribbean by pointing out that the leakages occuring

have been greatly underestimated, since only the

exaggerated value and frequency of transactions have

48

been calculated.

What can be asserted strongly...is that

the relevant multiplier is extremely

unlikely to be as high as 1.0 in most East

Caribbean Islands, and is certainly no-

where near the V313? claimed for it by

the Zinder Report.

Another serious drawback is that this procedure
does not indicate the social and economic costs suffered
by the resident population owing to the superimposition
of tourism upon the regional economy.

In most cases costs and benefits are not

evenly distributed. What may be of benefit

to one group, may be a cost to another

group within the same country and communi-

ty. Hotel and restaurant operators may

benefit from tourism; but the permanent

residents may suffer cost in terms of

crowding, pollution, noise, and, in some

cases, a changed way of life.35

Moreover, the purchasing power of tourists, as
well as big capital backing the tourist industry, by
far exceeds the income-expenditure levels of a Third World
nation population. Thus, apart from adverse terms of
international trade and the inflationary pressures of
the current energy crisis, at a more immediate level,
tourism has become a strong contributory factor causing
substantial increases in the cost of living.

Tourism definitely creates grossly unequal compe-
tition at a regional level for resources which used to
afford at least a subsistence-level life-style for the

local poor. These resources, new subject to price infla-

tion, cover a wide range of goods and services, such as

49

foodstuffs, especially in the form of locally produced
choice vegetables, fruits, meats; shrimp, lobsters, fish,
mutton, chicken, etc.

In Bali for example, in the poorer uplands,
such as Bangli malnutrition is increasing
and with it attendant diseases. Bali is
now in the throes of a major appraisal for
massive tourist development. Anxious not
to frighten investors away, both the
government and the local press deny the
problem.36

The Gambia demonstrates the same problem.

There is not enough of certain foods for
the local population during the tourist
season since the hotels are supplied first
of all. Due to the economic position of
the hotels as well as the question of
supply and gemand there is an increase

in prices.3

There is also pressure on the availability and the price
of land;

At Serengeti and Ngororo parks in Africa,

there is a conflict between the needs of

tourism and the needs of cattle and game.

In Ethiopia, there is conflict between

the creation of the major tourist attrac-

tion of Awash Park and the needs of the

tribes living there.38

In addition the availability and price of local
housing may be adversely affected and there is increased
pressure on already scarce and overtaxed basic utilities,

such as electricity, pipeborne water, fuel, security and

administrative services.

50

Economic Diversification
and Infrastructural Growth

 

Apart from bringing in foreign exchange and having
a multiplier effect on the economy, tourism is welcomed
as a tertiary sector industry tending to diversity
economies stagnating at the level of primary extractive
operations. Tourism thereby relieves hazardous dependance
on the export of a few staple raw materials or semi—
processed commodities fetching low prices in the world
market, like, for example, tea, rubber, coconut, cocoa,
ground nuts, coffee, sugar, sisal and jute.

While exports from developing nations (other

than oil) rose by only 7.62 annually between

1969 and 1978, receipts from tourism increased

at an annual rate of 11% during this period

(which is higher than the annual rate 25 9

percent for world receipts of tourism.

The singular advantage of tourism is that, carried
onwards by the momentum of mass foreign demand, its
chances of success are greater, its operationalization
simpler, its capital outlay equivalent or less than the
requirements of large-scale advanced industrialization
for achieving economic diversification. However, the
capital outlay necessary to establish and maintain the
tourist industry is still considerable, especially since
tourism requires a widescale, efficiently coordinated
and sophisticated infrastructure, such as airports,

harbours, railroads, highways, hotels, casinos, safari—

bungalows, archaelogical preservation, postal and

51

telecommunication services, etc. In Third World countries
national governments have to make pathbreaking policy
decisions and allocate the major capital outlay necessary
for the growth of tourism. Except for sundry, scattered
volunteer organizations motivated by humanitarian ideals,
private initiative in development work is limited in most
poor countries. The present process of private capital
accumulation is also extremely sluggish, owing to mass
poverty, which depresses most entreprenuerial activities
to a miniscule scale. The small and wealthy elite groups
drawing surplus mainly through semi-feudal relations of
production or prestigious professions, tend to indulge
in conspicuous expenditure. Excluding a few notable cases
like the Tatas' and Bhirlas' of India, for example, the
national bourgeoisie of Third World countries demonstrate
a very poor capacity for economic innovation, choosing,
rather, to collaborate with, or follow in the footsteps
of, metropolitan economic power.

Neither financiers nor industrial magnates

are to be found within this national middle

class. The national bourgeoisie of under-

developed countries is not engaged in pro-

duction, nor in invention, nor building,

nor labour; it is completely canalizzd into

act1v1t1es of the intermediary type.

Thus, the formidable burden of development lies
with governments of Third World nations. This same

rationale applies to the establishment of tourism in

the Third World, especially since tourism, as mentioned

52

earlier, requires broad-based, efficiently coordinated
infrastructural facilities. Though private entreprenuers,
both local and foreign, may cooperate and benefit immensely
from this venture, it is up to national governments to
shoulder heavy infrastructural costs and also to establish
the legal and administrative apparatus necessary to regu-
late the tourist industry.

As national governments begin to recognize the
economic potentialities of tourism, the tourist industry
gains increasing prominence in high powered plans for
national development. Planning and investment priorities
in India and Kenya, for example, amply illustrate this
attention.

Planning in India.

 

Planning for tourism in India made a humble
start in the Second Plan, with a provision
of Rs. 3.33 crores, out of a total plan out—
lay of Rs. 4800 crores. In the Third Plan
an allocation of Rs. 5 crores was provided
for the development of tourism....

In the Fourth Plan, a provision of Rs. 36

crores had been made for the development of

tourism in the plans of the Central as well

as States and Union territories....

In the draft Fifth Plan, a provision of Rs.

113 crores was made for the development of

tourism....

Similar to many other nations, special institutions
have also been established by the government of India.

The exclusive functions of these departments, such as

the Central Department of Tourism and the India Tourism

53

Development Corporation, are to regulate the tourist
industry and to promote its growth. The responsibilities
of these government organizations entail the following
duties:

1. Supervision: the regulation of general
tourist operations within the country;

2. Propogation: to encourage and support the
advertisement of India both at home and abroad;

3. Stimulating the further expansion of tourism
by providing incentives to investors and guarding their
business interests:

In the Fourth Plan (1969—1974) of India

the programmes of the India Tourism Develop-

ment provided for the construction of hotels,

motels and cottages, renovation and expan-

sion of tourist bungalows, setting up of

transport units and duty free shops at inter-

national airports... 3

4. To preserve and enhance the attractions of
scenic locations and places of cultural and historical
interest; and

5. To increase and improve the quality of facili-

ties available for tourists.

Planning in Kenya

In Kenya, as in India, tourism occupies a prominent
place in succeeding ”five year" plans as illustrated in
Table 9.

Investment in tourism, then, does require heavy

capital outlay and careful planning. When investing in

54

TABLE 9

EXPENDITURE ON TOURIST DEVELOPMENT
IN KENYA, 1970-1974

 

 

 

(in K '000)
1. Public expenditure “7,250.5
A. Recurrent expenditure 1,308.0
Grant to KTDC for administrative exp. 237.5 ~ ,
National Parks grant: in aid 200.0 E
Game department 645.5 r
Travel promotion 225.0 E
B. Investment expenditure I
Hotels, lodges and restaurants 2,242.5 :
New hetels and lodges 1,680.0 .
Amelioration 500.0 ’
Small business loans 50.0
Professional training 12.5
'Iimrist Attractions 713.0
; Traditional villages 85.0
3 National parks 51.6.0
‘ Game department 112.0 -
. Infrastructure 2,98 7.0
Coast infraStructure 120.0 '
Roads 2,867.0
1. Private investment . , 6,545.0
New hate]: and lodges 3,545.0
Other 3,000.0
Total 13,7955

 

 

Source: Development Plan 1970-1974.

tourism, governments have to make crucial policy decisions
regarding the allocation of scarce resources. Tourism,
therefore, competes with other development priorities in
national resource allocation processes. Such priorities
could be wholly economic in character, such as the estab-
lishment of a different industry. Alternative investment
could also be the provision of basic welfare services,
like health care delivery systems; schools; skills
training centres; agricultural extension campaigns;
support for cottage industries; credit schemes for small

faliers, entreprenuers and craftsmen/craftswomen; and

55

improving irrigation facilities.

These projects are not as glamourous as tourism
but may have greater overall benefits for disadvantaged
groups forming the majority in Third World countries.

It must also be asked whether super highways, air-
ports, luxury resorts, hotels, casinos, night clubs,
dance halls, golf courses and tennis courts--the bulk
of infrastructure occasioned by tourism-~is indeed urgently
required by poor countries. Doubtlessly, electricity,
pipe-borne water, etc., would be of tremendous help
to any disadvantaged community. But again, the rationale
of such piecemeal service provisions must also be
questioned. Patterns of uneven development relating to
inequalities in economic opportunity and the availability
of basic services between city and town, town and village,
village and village strongly reinforce conditions of
underdevelopment. If tourism does promote infrastructural
development at all, it does so in a limited area immediately
surrounding a tourist resort, and therefore serves only
to stimulate an "enclave" type of infrastructural growth
which tends to aggravate conditions of uneven development
characterizing Third World countries.

Instead of being lauded as the incidental spin-
off of tourism, or any other profit-oriented industry,
infrastructural development is a priority in its own

right by national planning criteria which perceive basic

56

utilities as prerequisites for ensuring public welfare.

Tourism and Employment

 

High rates of illiteracy, malnutrition, disease
and morbidity bear strong correlation to mass poverty
and concomitant conditions of deprivation prevailing in
Third World countries. This has given rise to the widely
held acknowledgement that redistribution is an indispen-
sable dynamic of economic development. In a World Bank-
sponsored study, Ahluwalia, Montek, Carter and Chenary
note that

Although the output of the world economy

has expanded at an unprecedented rate

in the past quarter century, the benefits

of growth have only reached the world's

poor to a very limited degree. This is

not due to any failure of developing of

countries as a group to share in the gen-

eral economic expansion. Their income per

capita rose by almost 3 percent per year

over this period--considerably faster than

in the past. The failure lies in the dis-

tributional pattern of past growth, which

has left the poorest groups largely outside

the sphere of economic Expansion and

material improvements.A

It becomes increasingly apparent that poverty can
be combated effectively only if processes of induced
economic development aim at stimulating the growth as
well as the distribution of income. Problems of chronic
underemployment and unemployment which beset most Third

World countries constitute a crucial determinant of wide-

spread poverty. Underemployment, especially, is

57

TABLE 10

SAMPLE PANEL: INDICES OF INCOME GROWTH
AND DISTRIBUTION

 

 

 

 

 

GNP Pepulation Share of lowest Number of people
growth rates growth rates 40 pereem in poverty (millions?
Base Case Base Case
1960- 1975— 1960- 1975— 1975 projection 1975 projection
1975 2000 1975 2000 estimate 2000 estimate 2000
amp .1 (under 5350 (cm
(1) Bangladesh 2.4 4.6 2.7 2.5 20.1 17.4 52 56
(2) Ethiopia 4.3 4.1 2.1 2.6 16.8 15.0 19 25
(3) Burma 3.2 2.5 2.2 2.1 15.7 15.2 20 29
(4) Indonesia 5.2 5.5 2.1 1.7 16.1 12.7 76 30
(5) Uganda 4.0 3.2 2.9 2.8 14.4 14.0 6 12
(6) Zaire 4.3 4.8 2.6 2.7 14.6 12.7 11 13
(7) Sudan 3.0 6.0 2.8 2.8 14.5 12.0 10 8
(8) Tanzania 6.8 5.4 29 2.9 14.3 12.3 8 9
(9) Pakistan 5.6 5.2 3.2 2.7 16.5 14.5 32 26
(10) 1nd'ta 3.6 4.5 2.3 1.9 17.0 14.6 277 167
Subtotal 3.8 4.7 24 2.1 16.7 13.9 510 375
Group B (5350-5750)
(11) Kenya 7.0 5.9 3.2 3.5 8.9 7.7 7 11
(12) Nigeria 7.1 5.2 26 2.9 13.0 11.8 27 30
(13) Phtlipptnes 5.6 7.3 3.0 2.4 11.6 10.3 14 6
(14) Sri Lanka 4.2 3.8 2.4 1.7 19.3 18.2 2 2
(15) Senegal 1.5 4.0 2.1 2.4 _ 9.6 8.9 I 2
(16) Egypt 4.2 6.1 2.5 1.8 13.9 13.5 7 5
(17) Thatland 7.5 6.7 3.0 2.4 11.5 10.9 13 4
(18) Ghana 2.7 2.1 2.6 2.9 11.2 11.9 2 6
119) Morocco 4.4 6.2 2.7 2.8 13.3 10.9 4 2
(20) lxory Coas: 7.7 5.3 3.3 2.9 10.4 10.4 1 1
Subtotal 5.5 '58 2.7 2.6 12.0 10.0 31 7o

 

 

Source: World Bank.

58

ubiquitious, and is expressed in limited hours of paid
work, the non—availability of employment alternatives,
and the lack of opportunities for career advancement.
The incidence of unemployment and underemployment could
be attributed to the fact that in countries where 70 to
80 percent of the total population engages in near sub-
sistence agricultural production, the growth of large-
scale commercial agriculture has increased landlessness
and drastically reduced opportunities for agricultural
labour. Research on the consequences of the "Green-
Revolution", a parallel development strategy reveals
that

A tractor cuts to a fifth the number of

workers needed to prepare the same field

with a bullock-drawn plow. The same is

true of a mechanical reaper compared to

a hand scythe.

The introduction of mechanical harvesting

will eventually result in an overall

decrease of about 90 million man days in
the Punjab--most of it for day labourers.

46
Mechanization as well as procuring inputs from a
global market leads to profitability only through large
scale agriculture. So the cumulative effects of the
"Green Revolution" has been the increasing concentration
of land-holdings by eliminating traditional forms of land
tenure, sharecropping, as well as buying over the land—
holdings of small-scale farmers who cannot compete. Thus,

surveys show that the "Green Revolution” has led to the

pauperization and proletarianization of the peasantry.

59

In India in 1969 there were 40,000 eviction

suits against sharecroppers in Bihar alone...

and, 80,000 in Karnatika (Mysore)

In Mexico between 1950 and 1960 the number

of landless labourers increased much faster

than the eneral population, from 2.3 to 3.3

million.4§

Another factor is the inability of Third World
economies to absorb the pressures of a rapidly increasing
labour force (45 percent of the population is estimated
to be under 15 years of age) owing to a underdeveloped
industrial sector. Industrialization tends to be re-
tarded because of the lack of capital, expertise, tech—
nology, energy and problems of marketing.

Thus, apart from potentialities of earning foreign
exchange, promoting infrastructural development, and exert-
ing a multiplier effect on the economy, another strong
reason for advocating tourism is the assumption that
tourism makes a significant contribution towards reducing
unemployment and underemployment. Tourism has the poten-
tiality to create jobs both directly and indirectly.
Direct employment is made available in establishments
which cater almost exclusively to tourist demands, such
as hotels, motels, restaurants, tourist shops, and travel
agencies. There are also jobs as guides, interpreters,
tour operators, entertainers, etc. Indirect employment
is more broad-based, variegated, and covers a wide range

of occupations relating to entertainment, transport,

cosmetics, sales, services, handicrafts, and employment

60

in the construction industry.

The detailed plan (1971-1973) formulated for develop-
ing tourism in the Gambia by a cluster of organizations
both national and international, estimated that each
additional 1000 "tourist beds" and concomitant infra-
structural facilities would provide 5000 new jobs.

Tourism as a quick gestation industry has the special
advantage of providing immediate relief in alleviating
employment problems. Other advantages have been cited
as follows:

Since the tourism industry is service orien—
ted, it has the advantage (aside from infra-
structure) of being labour intensive and
capital-saving, a desirable situation in a
country where capital is scarce and labour
redundantly employed. Figures from an
input-output study in Mexico show that for
$80,000 invested in tourism, forty one jobs
are created. The same investment would
create sixteen jobs in petroleum, fifteen
jobs in metal products, or eight jobs in
electricity. 9

Although the potentialities of tourism for generating
employment quantitatively is acknowledged, the qualitative
aspects of tourist employment have become subject to
vehement criticism.

Though employment is undeniably important
as a policy objective, there is danger in

a policy which emphasizes only improvement
in employment statistics--i.e, the quantity
of employment. This could result in the
creation of a host of low productivity

dead end jobs in which individuals have
little opportunity for advancement.5

A similar rationale can be applied to employment

61

in the tourist industry.

Need tourist development necessarily make

formerly self-sufficient rural people into

waiters, bellhops, maids and others in menial
positions who serve affluent visitors?51

This question hinges on other controversial issues
relating to the genre of service functions required by
tourism. These service functions are highly coloured
by pejorative notions of personal dignity and racial
prejudice.

Some critics accuse tourism in the Third World of
reintroducing and reinforcing racial and labour relations
intrinsic to colonialism. These relations are based on
distinct connotations of domination/subordination,
superiority/inferiority. "Nee-Colonialism" is seen to
be manifest through tourism in two categories of relation-
ships. Groupe Huit,a.French consulting firm studying
the effects of tourism in Tunisia, comments on this
problem:

At issue is the fact that tourism, as

opposed to other sectors, provides personal

service in which the lower level employee is

at the direct beck and call of the tourist.

Compared with other types of work, there

is a massive multiplication of bosses, of

people who give orders in person-to-person

contact and whose whims have to be indulged.

Furthermore, employee-tourist contacts may

occur in a socio—psychological and socio-

historical context that colors employees'

perceptions. In certain ex-colonial soci—

eties, for example, the memories of the

colonizers' expressions of superiority
and disdain in personal relations, perhaps

62

in racial or ethnic terms, is still alive
among the population. In such societies,
the personal service encounter with tourists
may evoke resentment based on feelings
arising from those memories. Similar con-
ditions may exist in societies with profound
class divisions. Resentment may arise

even if the tourists are radically different,
in terms of language and class, from the
colonizers, as is often the case....The
conclusion, though, hardly simple, is cer—
tainly clear in broad lines. Whether the
encounter with tourists, and especially

the service relationship, is experienced

as demeaning and an expression of servility,
and thus whether it provokes hostility,
depends at least in part on the sociohis-
torical context, especially 3n the elements
of slavery and colonialism.5

l. The relationship between the native employee
and high ranking, usually "white" foreign personnel.
The native employees are usually assigned menial and
low-ranking work roles while foreign personnel tend
to become figures of authority, ahmost monopolizing powers
of decision-making and control of work operations. John
Sany who studied labour relations prevailing in a luxury
resort in Fiji draws attention to some of his findings:

This paper is based on my study of employ-
ment patterns in a luxurious, multi-million
dollar resort hotel. It shows how mass
tourism is likely to affect the division of
labour in the host society. Local participa—
tion in hotel employment is not only minimal
and of a menial nature, but it is also based
on racial and ethnic criteria. Expatriate
and local Europeans occupy top—paid managerial
and executive positions involving far greater
economic and social benefits. This racial
pattern of job distribution in the hotel is
institutionalised and is based largely on
prejudice and stereotypes.

(percentage of total in each department)

63

TABLE 11

AND DISTRIBUTION OF WORKERS

RELATIONSHIP BETWEEN ETHNIC ORIGIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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mag?“ H1121; 3M:

1 . =
W i igzéésaéaai age
Uian 9 10 - 67 100 so so so 18 so 100 94 100 19 36 as 59
1mmm - so 33 - - a) a) x1'm - - 6 - 77 59 10 33
a , 73 1o 67 17 - - - - - - - - - - 3 1 4
.a 18 - - 16 - - - - 6 20 - - - 4 2 3 3
pther - - - - 20 - - - - - - - - - - 1
mun. 1m11m>1a>1m> up up up mo1e31m11a11a>1m1nw up up up
Source: "A New Kind of Sugar: Tourism in the Pacific",

Ben R. Finney and Karen Ann Watson (eds.).
East West Center and Santa Cruz:
Asian Studies.

Honolulu:

The Center for South

 

64

In the hotel studied, specialisation was
based on sex and ethnic origin rather than
on skill. There was a wide range of jobs
but most of them required little skill and
training, except at the managerial and pro-
fessional levels. The case study showed that
unskilled and service personnel changed jobs
fairly frequently and that changes between
levels of skill were largely limited to those
with formal qualifications or specialised
skills. Expatriates and all Europeans held
high-salaried senior positions while locals
were predominant in the service and unskilled
roles.53

2. The relationship between the native employee
and the tourist clientele. The majority of tourists
originate in rich, industrial nations, and more often
than not are of European extraction. Thus, the picture
is that of the menial native employee belonging to the
black, brown, or yellow races waiting on the white
tourist; the configuration of arrogance confronting
servility; the renewal of the "Yes, Sahl", "Bwana",
”Sahib”, "Mem-sahib" syndrome!

Harry Matthews highlights economic forces which
contribute toward relationships between native employees
and tourists.

Yet, race becomes an obsessive dimension

of tourism simply because black people continue

to be the ones who are exploited by inter-

national commerce. Slavery in the Caribbean,
for example, was at one time the essential

base for colonialism. If one perceives that

economic relations since colonialism have

not changed fundamentally, then it must

follow that modern mass tourism is propped

up by cheap black labor in host countries.

Susantha Gunatilleke in his critique of tourism

65

classifies the majority of employees in luxury hotels

of Sri-lanka as belonging to the middle and upper social
classes. According to his sociological observation,
under usual circumstances it would be thoroughly repre-
hensible for these persons, especially if they should

be male, to "serve" others as paid employment. But this
stigma is obliquely ignored when it comes to service in
the tourist industry, so that these persons uninhibitedly
assume roles of stewards, waiters, cooks, receptionists,
bar-tenders, etc.; no doubt reassured by the modern
luxury trappings exhibited by hotels and tacit accept-
ability of serving foreign tourists. The cultural context
of this situation is that ”foreign" is associated with
superiority and power.

Another disadvantage of employment in tourism is
the seasonal nature of the employment, since tourist
inflows approximate to limited periods of the year.

Extent of employment. The 1973/74 tourist

season in the Gambia started around Septem-

ber-October 1973, with around 700 Gambian

employees (total for all C.T. hotels). The
tourist season generally reaches a peak

during the months November-March during

which time the number of hotel employees

increases to some extent. (The number of

Gambian employees amounted to 748 in mid-

January 1974.) From around the middle of

March the C.T. hotels start reducing their

staff continually until the hotels close

down for the season. The closing of the

1973/74 season occurred at the end of April.

Out of the 748 Gambian employees approximately

640 individuals were employed for the whole

season, i.e. 7-8 months. The rest were em—
ployed for about 4-5 months.55

 

66

Apart from seasonality, further uncertainty
is created by the strong "dependancy” elements intrinsic
to the industry. The tourist industry is highly suscep-
tible to the slightest fluctuations in the travel market,
which again, is heavily dependant on conditions of
economic prosperity, prices of air fare, the price of
petroleum, etc.

A further disadvantage is that gravitation towards
higher remunerative jobs tends to cause neglect of
traditional occupations, such as agriculture and
fishery, which, though less gainful and glamourous in
terms of immediate benefits, have greater potentialities
for promoting a more self-reliant pattern of economic
growth.

Similar to other multinational enterprises, tourism
is based on the exploitation of local labour. Employment
in tourism may carry higher wages compared to other local
jobs, but still causes a greater "rip off” because of
the high profit margins of the industry. Matthews draws
attention to dissent among local workers employed in
the Caribbean tourist industry.

In the course of events surrounding this

strike in early 1974, the political attitudes

of union leaders towards mass tourism became

clear. Foremost was the notion that luxury

hotels reap handsome profits for their

foreign owners because they pay local workers

a bare subsistence wage. A hotel maid earn—

ing $50 (Barbados) per week was likely
cleaning rooms which rented for a high $260

67

per day. Managers argued that the wage rates
were compatible with the rest of the local
economy and in some cases were higher for
similar work in government or other industry.
Union leaders viewed the situation differently.
Their concern was that $50 per week even in
Barbados does not allow one to live above a
subsistence level. (This is about $25 U.S.
or Canadian, per week.) On this issue the
union had widespread support from various
sections of the community and certainly from
other populist groups.5

Summary

The sections contained in Part Two have focused
on controversies regarding the economic contribution of
tourism. Tourism does indeed have a gainful impact on
national and intra-national economies, chiefly by earning
much needed foreign exchange by inducing multiplier
effects, infrastructural growth and through the expansion
of employment opportunities. In its present form the
tourist industry appears to be primarily a strategy
for promoting national economic growth at a macro-level
and to a lesser degree a development strategy for redis-
tribution with growth.

This thesis also draws attention to some of the
often obscure economic costs of tourism borne by the host
country in terms of price inflation, commodity shortages,
and heavy "leakages” taking place owing to the remittance
of earnings and the substantial import content of the
industry. Such costs tend to diminish and detract from

tourism's contribution toward achieving a redistribution

68

with a growth type of development. The Third World
tourist industry is becoming rapidly encapsulated by

a oligopolic structure of global dimensions, which, though
offering some advantages, also tends to contradict aspira-
tions of present day developmentalism which emphasizes

the need for economic decision-making and control at

a more localized level.

CHAPTER THREE

THE CULTURAL IMPACT OF TOURISM

The Third World possesses unique advantages in
profiting from "cultural” or "anthromorphic" tourism.
Despite substantial differences in geographic location,
language, and concomitant sub-cultures, the countries
of the "North" and "West" basically share the same
historical and cultural tradition. Excluding northmost
extremities, this predominantly European band has been
completely engulfed by industrialization and urbaniza-
tion, socio-economic processes most typical of the
modern era. This has produced a way of life, conditioned
by growing uniformities in ethos, environment and styles
of living.

In contrast the Third World is dramatic in its pre-
sentation of a contrasting culture. The Third World
assumes the guise of some anthromorphic zoo in its
exhibition of quaint customs and artifacts; the attributes
of traditional cultures relatively untouched and unspoiled
by the stamp of modernity. The differing culture of the
Third World is built of simple dichotomies in cognition;
its syndrome rests on the contradiction of the "self"

and the "other"--the thatched wattle and daub hut versus

69

70

the skyscraper; the bikini or unisex pant suit versus

the unfathomable mysteries of purdah; the jet plane

versus the bullock cart, etc. As portrayed by the

tourist industry, the culture of the Third World attracts
through the shock of contrast. This cataclysmic,

catalytic force maintains the momentum of the tourist
industry. Thus, to the average tourist, physical realities
become metamorphosed into a thrilling journey into the
exotic and unknown.

Tourism and touristic attitudes are closely
allied to the pursuit of the "exotic" and
its obverse, the cultivation of the simple.
Both are highly artificial-~necessarily
the products of a long-established urban
culture of wide extent. In such a culture
people will become interested in the
"barbarians" and "monsters” to be found
beyond the borders of what they consider
to be the civilised world. What might
have been terrifying and monstrous to a
more archaic society will now produce a
pleasurable excitement--precisely because
it is outside normal experience. If the
means of transporting large numbers of
people, safely and cheaply, over long
distances are lacking then the "exotic"
will be imported. Thousands of wild
beasts were imported to die in Roman
amphitheatres--the rarer and stranger

the better.57

Recent developments in modern western culture have
also contributed greatly to the travel lure of the Third
World. Since the 1920's, naturalism and individualism
have been the keynotes of attitudinal and behavioral
trends. The prudery, even sexual hypocrisy of former

times, has given way to much more open-minded, freer and

71

easier ways of searching for and idealizing the bizarre

and the erotic.

...as Barthes suggests, "even sun tan" has
a message--the message is essentially that
the sunbather is a child of nature. The
bourgeois on their Mediterranean beaches
can entertain the illusion of learning to
love their bodies again as they did in
childhood. The body not only becomes

more visible, as the sun tan progresses,
but in the process of being exposed to it
is made more desirable. At the end of

the holiday the sun tan is carried back

to the city as a fading trophy that can

be restored next summer. The sun tan
becomes a mark of class distinction just
as the aristocratic "milk and roses”

had been. The metropolitan bourgeoisie
did not need to emphasise its separateness
from the rural working class; the country-
man was sufficiently remote to be idealised.
Not so with the urban proletariat: a deep
sun tan was the visible proof that the
bourgeois had the money and leisure to
escape from the north-west European metro-
polises to the South.58

Proponents of tourism claim that cultural tourism
has mutually reinforcing benefits. They point out that
while tourism thrives on the consumption of local culture,
this delectation by foreigners serves to ensure the
perpetuity of traditional cultural forms in danger of
perishing otherwise. A Tanzanian publication debating
the consequences of tourism in Tanzania highlights this
perspective:

Under cultural benefits, it is argued

that tourism helps to develop indigenous

folklore, that it facilitates inter-

change of cultures and understanding of

foreign ways and habits. It is also
argued that though we may be

72

underdeveloped economically, yet we may
have a lot to give culture—wise to those
developed countries.

Analyzing the revitalizing cultural effects
attributed to tourism, Lother Nettekoven states that:

One of the few attempts of the tourism
industry to present the traditional values,
objects, and behavior patterns of a foreign
culture revolves around the display of arts
and crafts, folklore, and cultural monuments
of the past. These may once have been
characteristic of the visited culture, but
often they have been neglected, primarily
because of the Westernizing process of
acculturation during the colonial period.
Frequently these almost lost relics are
transformed into consumable form and pre-
sented as characteristic of the contemporary
culture. Not only does this practice further
distort the tourists' View of the realities
of the country, but it also deepens existing
misunderstandings. The renewed interest
in past cultural greatness may, however,
compensate somewhat for the lack of authen-
ticity observed in the modern forms.

The interest of foreign tourists in cul-
tural artifacts has in many instances led
directly to the revival of handicrafts
or a cultural tradition or produced an
often extraordinary combination of modernity
and tradition. This cultural renewal is
accepted only after the fact by the indige-
nous society and requires the prior approval
of the foreigner from abroad. Nevertheless,
this revitalization of traditional culture
can help support the movement toward self-
identity of many developing countries.

However, this rationale is hotly contested by most
nationalist groups who view tourism as a medium of blatant
cultural exploitation and as an abomination threatening
the purity and sanctity of indigenous life-styles. Henry

Matthews summarizes Third World perceptions relating to

73

these allegations:

Third World percgptions.--It is in the
underdeveloped countries that the greatest
ideological debate about tourism is taking
place. In many Third World nations the
intrusion of mass tourism from metropolitan
centers has generated critical thoughts
about the nature of international relations
and about the effects of tourism upon host
societies. In the Caribbean the ideological
aspects of these observations tend to re-
flect four general views of tourism: (1)
that the industry amounts to a new form of
colonialism and impgrialism; (2) that
tourism is part Bf'a new plantation economy;
(3) that international mass tourism is
rapidly selling much of the Third World
as a playground for the industrial metro-
politan populations, hence creating a syn-
thetic playground culture; and (4) that
much world tourism is an intrusion of
white institutioni and values into the
non-white world.6

 

 

 

 

 

The Allegation of
cultural Distortion

 

 

Tourism tends to increase the marginalization of
the Third World now converted into a ”pleasure periphery"
in addition to being the economic periphery of the global
capitalist system. This is particularly apparent in
nations enjoying a sunny, salubrious climate like the
Latin American and the Caribbean countries which are
situated geographically on the fringe of metropolitan
centres. Advertisements of these ”pleasure peripheries"
demonstrate a rampant adventurism capitalizing on the
4 8'3 of tourist trade propaganda: Sun, Sea, Sands,
and Sex. Cleverly exploiting themes of escapism, leisure,

and forbidden pleasure, tourism advertisements conjure

74

a vision of arcadia; the unsuspecting tourist is lured
by promising entry to some tropical wonderland or Shangri-
Lai. Christian Saglio, for example, describes the effects
of advertising in Tunisia as follows:

...like other host countries, Tunisia

leaves the tasks of recruiting, trans-

porting, educating, and distracting its

visitors in the hands of travel agencies.

The caricatures and stereotypes used by

their advertising departments--pictures

of the sea, the blue sky, the fine sand,

and tanned bodies--do nothing to educate

tourists about their destination and leave

them with narrowly limited expectations

that offer the key to the understanding

of their behavior. Tourists expect their

visit to confirm, in concrete form, the

mental images and daydreams they had prior

to departure, which of course vary accord—

ing to social class, nationality, cultgial

and educational level, and motivation.

Thus, the continuing prosperity of the tourist
industry rests on the palpable realization of the tourist's
search for the "exotic." The goods must be delivered
at all costs to ensure profitability. This expectation
is therefore actualized by either accentuating dispro-
portionately the "grotesque," the "primitive," the
"bizarre," and the "spectacular" attributes of existing
forms of art; or if these qualities are absent, by
daubing culture through the introduction of these elements
anew. Indiscriminate extrapolation is one manifestation
of cultural distortion. Indiscriminate extrapolation

takes place when bits and pieces are gouged out of

authentic tableaux, reshaped and re—enacted in fantastic

75

shapes totally out of keeping with the original meaning
and functions. For example in Sri Lanka, a great tourist
draw is the spectacular "Ves" dancing, traditionally
associated with the Kohomba Kankariya, an elaborate,
lengthy fertility rite. Another popular attraction

is masked "devil-dancing,‘ forming the core of "Bali"
and "Thovil" exorcist ceremonies held to drive away
malignant forces causing death and misfortune. ”Fire-
Walking," another spectacle never failing to thrill
tourists, is supposed to take place in fulfillment of
sacred vows, as proof of physical purity and spiritual
unity with god. These rituals have been performed for
centuries with great spiritual fervour, religious devo-
tion, in a spirit of communal unity and fellowship.

But when appropriated by tourism, however, these very
same ceremonies, chopped and hacked to give the desired
effect, performed on the patios of five-star hotels
where the sense of unreality is heightened by strobe
lighting, music, and props, are converted into nothing
more than spectacular cabaret acts.

The "collage" effect is another manifestation of
cultural distortion. This is most evident in types of
decor purporting to give a ”local" touch. The final
result is usually the bizarre juxtaposition of native
artifacts, the assemblage of which has no other meaning,

except to create a profane sense of the "exotic” and

76

the "primitive." For example, the foyer of a Sri Lankan
hotel could well be decorated with clay urns, brass

lamps and ceremonial banners. The clay urns are normally
used to fetch and store water; the brass lamps are lit
only on very special or auspicious occasions such as
bethrothal, marriage and new year celebration. The
"sesath" or banners are revered objects displayed during
religious processions. Turner and Ash draw attention

to the arbitrary manner in which "African effects" are
created in Nairobi, Kenay:

Charles Jenks describes these hotels as
"self-contained cities which have so many
amenities and historical frills that the
tourist needn't leave to see London at all."
This is a tourist break-through and Hilton
International have been among the most
energetic exponents. Wherever the Hilton
is likely to resemble "a Los Angeles In-
surance office" from the outside, but
inside ”interior decorators have gone to
appalling pains to incorporate local motifs."
Perhaps Hilton International are a little
nervous of the possible indelicacy of Con-
rad Hilton's exuberant patriotism. They
describe the Nairobi Hilton as "a uniquely
circular, l7-storey guest-room tower, in-
spired by tribal legends that life is a
perpetual circle.” Its interior is adorned
with "Dramatic murals of majestic warriors...
imaginative, Afro-modern sculpture, ancient
tribal symbols on wood, splashes of safari
colors and zebra skins. Everywhere brilliant
masses of exotic flowers accentuate the
beauty.” The folkloristic climax to this
diverse ensemble is the Amboseli Grill,
"stunningly designed to represgnt the
interior of a huge native hut. 3

An important dynamic of cultural evolution is the

process of selective survival, whereby traditions meet

77

the challenge of modernity, by assuming new meanings
and new functions. As in the case of classical Chinese
opera, for example, new dramatizing communist ideology,
many art forms have been adapted to meet the requisites
of modern theatre, or to give expression to contemporary
social and political movements by encapsulating and
articulating contemporary themes and controversies.
Traditional forms of art combine authenticity with the
realities of survival by literally "speaking out," than
by trite repetition as when manipulated by tourism.
Thus, tourism had reduced aestheticism to the level of
sensationalism and vulgar exhibitionism. Within its
ever-widening arc, the tourist industry, supported by
foreign and local entrepreneurs, leaves no link other
than a cash nexus between creativity and expression, be-
tween inspiration and performance. Tourism converts cul-
ture into a mass-produced marketable commodity. By
fracturing cultural traditions and using artifacts only
for decorative purposes, tourism subjects indigenous
cultures to eclipse by the opulent western life-styles
maintained in tourist establishments and the technological
extravaganza of modern infrastructure.

On the final level though, one can simply

argue that international tourism is like

King Midas in reverse; a device for the

systematic destruction of everything that

is beautiful in the world.

The reaction against cultural debasement caused

78

by tourism is not merely a cry for cultural purity, it
is also an explicit political statement opposing the
more corrosive aspects of Western cultural domination
and expansion.

This opposition is related to the anti-imperialist
movement rooted in colonial times. Asserting the all-
encompassing superiority and might of the colonizing
power was an absolute pre-requisite to empire building.
Ridicule and contempt for native cultures of the colonized
became essential materials in forming the psyche of domina-
tion. By looking down with scorn upon native customs

as being "barbaric," "retarded," "archaic,' as being
inferior in all respects, the civilization of the colonial
power was glorified; its civilizing mission working
through prozelytization and education was sanctified.

In reaction, movements for political liberation
took up cudgels against western culture with crusading
zeal. On one hand, the dominant alien culture of-the
colonizers became a target for attack and repudiation.
On the other hand, the indigenous culture was resusticated
and used as a medium of attack. Refurbishing and
resuscitating native culture to its former glory was
tantamount to political assertion and equality, to saying,
”I'm as good or better than you are" to the colonizer.

This movement for cultural revival was and is crucial

in forging and consolidating a sense of national identity

79

which is vital, not in the context of narrow chauvinism,
but because national identity is the source of a new
concept of personhood in terms of regained human dignity,
equity and independence.

It therefore becomes apparent that indigenous cul-
ture as the mainspring of national inspiration is an
essential resource for development especially regarding
the current, more democratic approach to development which
stresses "appropriateness,” ”sensitivity to local values"
and ”peoples participation." For example, this line
of thinking predominated at the Scheveningen symposium
held in 1979, for top ranking government officials, leading
development thinkers and practitioners drawn from both
the Third World and the industrialized countries. The
Scheveningen report states that,

No less important is the cultural context
of the development process. Development
is not merely an economic and political
concept; it is more fundamentally a
process of culture and civilization.
This insight has dawned on development
thinkers and planners in recent years,
especially in the Third World. The
search for modernization and a homo-
geneous process of development over

the last two decades has been accompanied
by an erosion of cultural identities--

a process which is in some ways much
more corrosive of political integrity
and independence, as well as of confi-
dence and self-regard, than either
political colonialism or economic
nee-colonialism. However, this is not
just a question of a confrontation

of values between the North and the
South; it is rather that the world

80

needs cultural alternatives to the dominant
Western paradigm of development. This need
has acquired added force from the incipient
erosion of the cultural backdrop and integrity
of the North itself. The sweep and momentum
generated by a highly technocratic and tech-
nology-oriented model of development is
undermining the individual, undermining group
identities, and undermining the wholeness

of self-definition of entire civilizations--
hence the reassertion of the religious,
spiritual and aesthetic components of being,
in all parts of the world, and the widely
felt need for providing the concept of
development with new and different cultural
roots by drawéng upon alternative civiliza-
tional modes. 4

This conceptual current is given expression by the
Dag Hammarskjold Institute which supports the movement
for "Another Development”. Reappraising the basic
features of the concept of "Another Development," Marc
Nerfin describes the emphasis put on self reliance:

Self-reliant, that is, implying that each
society relies primarily on its own strength
and resources in terms of its members'
energies and its natural and cultural
environment. Self-reliance clearly needs

to be exercised at national and international
(collective self-reliance) levels but it
acquires its full meaning only if rooted

at local level, in the praxis of each
community.65

 

In this respect tourism, by placing culture within
the narrow calculus of immediate material gain and thereby
distorting its meaning, is totally at variance with the
development functions anticipated of national culture.

However, while recognizing the potentialities of
national culture for forging a more indigenous, appropriate

style of progressive living, it must be also acknowledged

81

that similar to tourism, cultural resurgence, too,
manifests the spurious character of reification. The
technological benefits of a modern production system
cannot be divorced from a spirit of rationalism. This
process of demystification, with or without the presence
of tourism, is fast eroding the belief-structure of
traditional cultures. Again, the wave of cultural
resurgence has often been carried forward by currents
of populist hysteria, the guilty consciences of an
alienated national elite seeking to make amends, a
phenomenon leading to the salvaging and reinstatement
of national culture only at the level of pretentious
symbolism.

The pernicious back to people movement
gained momentum after independence, each
community soliciting the electoral blessings
of the masses by whipping up their basest
sentiments. The psychological basis of
populist communalism--that importunate
desire on the part of both the intelli-
gentsia and political leaders to achieve
oneness with the masses--has been explained

as a throwbgck of atavistic religious
sentiments. 7

Insiders and Outsiders:
The Human Face of Tourism

 

 

It is sometimes assumed that international tourism
builds a bridge of mutual understanding and appreciation
between different ethnic groups and different nations.
The additional advantage anticipated for Third World

nations is that intensive tourism advertising and

82

popularity would enhance international recognition,
making a poor country more conspicuous on the world
map, as if it were, and thereby strengthening political
ties and opening opportunities for commercial gain.

However, upon closer analysis, it becomes apparent
that these assumptions are somewhat naive and sentimental,
and that in fact, the reverse situation is more likely
to occur, since the present modus operandi and ethos
of tourism makes its own pernicious contribution towards
the non-realization of one big happy human family.

Tourist transactions are defined first

by the condition of strangerhood. The

tourist is almost an ideal-typical example

of what Simmel (1950, pp. 102-7) had in

mind when he formulated his conception of

the stranger. Simmel saw the stranger

as a temporary sojourner who does not share

the essential qualities of the host group

life. As a result, interaction between him

and the hosts tends to take place on a more
general, impersonal level. Simmel (p. 104)

says, ”Strangers are not really conceived
as individuals, but as strangers of a
specific type." The tendency to generalize

or categorize, which also characterizes
strangers' conceptions of their hosts,
suggests the type of relationship common
in the modern world.

Not only do strangers and their hosts
treat each other as types but also as
objects. Where disparities of power are
great, as in the early stages of colonialism,
this can lead to prejudice and discrimination
by the colonizers and a wide variety of
familiar responses among the colonized
(Fanon 1968). People who treat each other
as objects are less likely to be controlled
by the constraints of personal involvement
and will feel freer to agg in terms of
their own self-interest.

83

The category of human relationships generated
by tourism could best be described as being symptomatic
of the "strangerhood syndrome.” The tourist usually
visits for a very short period; even during this period
he is either closeted in some hotel or propelled from
one "tourist spot" to another by busy tour operators.
He is almost always totally ignorant of the native
language, the latent meanings and functions of local
customs, which precludes him from interacting with the
local population as with ”real” people. Thus, the
tourist has no option other than falling back on ethnic
stereotyping. The average tourist's conceptual frame
of reference is his fantasy about the "primitive," the
"savage," and the "exotic." Consequently, the natives
and customs encountered are defined and fitted into this
fantasy. Tourism advertisements greatly facilitate this
process by accentuating the mythological attributes of
ethnic groups. Thus, Blacks are earthy, sensuous, hyper-
sexed; ....Polynesian women are fantastic lovers;....
the Thais are depicted as an ever smiling race;....the
Balinese become the epitome of oriental grace and artis-
tic refinement;....etc. It is observed, for example,
that

Barbados has earned a reputation in the

Caribbean of having a well developed industry

of male prostitution. The industry has a

racial dimension in that it thrives on the
alleged desire of white female tourists to

84

have sex with black males. Attitudes have
formed in the Caribbean and in metropolitan
countries that racial curiosity among the
visitors accounts for most of this behavior.
An article by Robert Turnbull in a Canadian
paper stated:

Without exaggerating the situation,
an amazingly large number of Canadian
and American women, married and single,
do travel to the Caribbean with black
sex more their goal than a suntan.

They get both. The women frequently
arrive with introductions to specifig
beach boys from satisfied customers. 9

Racial stereotypes projected by the tourist industry
have the potentiality to influence the behavior of the
local population, as attested by the situation in Barbados.

There perhaps was a time when black
male prostitution in Barbados tourism was
confined to the beach boys, young males who
hang out near luxury hotels displaying
their bodies in view of white female tour-
ists. But as the demand for service has
increased with growing mass tourism, other
occupational groups have sought a “piece
of the action.” Taxi drivers, waiters,
bartenders and bus-boys have utilized
their positions in the industry to make
contact with arriving potential customers.
An attractive English girl reported in
an interview that "I was propositioned
five times between Seawell airport and my
hotel room. What shocked me was that
two of them had professionally printed
business cards. But they were all rather
polite!"7O

The local populations, too, have stereotyped concepts
of tourists. Almost always an exaggerated figure, the
Western tourist exudes a peculiar charisma as the proto-
type of the colonialist. Whatever be his position in

his own country, the Western tourist is elevated in status

85

when travelling abroad in poor countries. As the
possessor of ready cash and by the flashy display of
expensive cameras, binoculars, dark glasses, transistor
radios, blue jeans, cigarettes, etc.--cherished symbols
of modernity largely out of reach for most people in
the Third World--the tourist bears living testimony

to that fabled cornucopia--the modern West.

Despite this elevation in status, however, the
tourist is fast becoming the victim of predatory impulses
bred by burgeoning commercialism. Commercialism encoure
ages the development of a more vicious propensity intrin-

sic to the "strangerhood syndrome,’ namely, the absolute
depersonalization of relationships. Thus, the tourist

is viewed as being legitimate prey, to be scented out,
tracked down, accosted and exploited through beguiling
charm or violence by beggars, pickpockets, commission-
hungry taxi-drivers, salesmen, prostitutes, etc.

While some tourists are open-minded, knowledgeable,
and sensitive to local norms there is yet another category
of European tourists who tend to excercise accustomed
rights of individualistic behavior with naive and unin-
hibited gusto occasioned by the pursuit and enjoyment
of leisure. This hedonism is seldom curbed by sensiti-
vity to local customs or the desire to show courtesy

to the host population. The result is that the respect

originally commanded by the tourist is rapidly giving

86

way to contempt and disgust on the part of the local
population. This is particularly so in the case of
”fast” white women, hippie types in ragged clothing and
matted hair. Even the average, low budget tourist
generally has a sloppy appearance and is, by some local
standards, loud and uncouth. Most offensive of all

is the naked sun bather who literally ”pollutes" tropical
beaches, by presenting the grossly unappealing sight

of red, roasting flesh, much to the surprise, embarrass-
ment and anger of most local residents. The lax behavior
of tourists is becoming increasingly obnoxious to

both rustic and intellectual in Third World society.

The former are taken aback and offended by the tourist's

lack of "decency,” "dignity,' and “shame." The latter

are affronted by the feeling of being doubly cheated
by the tourist's lack of respect for the local way of
life. Comments a Tanzanian,

After all when you go to Europe you are

supposed to talk, drink, walk, dress, eat,

and laugh like them. When they come here,

we treat them like little gods..."71

Another example is Christian Saglio's observations
on the tense relations between tourists and locals in
Casamance, Senegal:

For the local people, the repetitive

nature of mass tourism means a high degree

of saturation and a degradation of human

relationships. In Senegal, Cayar and Fadi-

out are among the most popular destinations
sold by travel agencies during the last

.A-I

 

87

fifteen years. There has been a great deal
of tension between visitors and local resi-
dents in these two towns, the tourist not
wishing to be seen as a mere spender of
money and the villager refusing to be treated
as another object to be photographed. The
magazine of the Touring Club of France tells
of the brief stay in Casamance of a journal-
ist ”disguised as a tourist" who observed
such deplorable things as candy littering
the sand, a few coins given to a little
girl to take off her loincloth and dance
for the camera, an old man who was asked
to climb up and tap palm wine for a photo-
.graph, and ceremonies performed on request.

72

As mentioned before, the average tourist is shunted
hurriedly from one scenic spot to another in conformity
with the tight schedule of a package tour, seldom
having the opportunity or the verbal facility to inter-
act normally with the ordinary people of the country
visited. Instead he is more likely to fall victim to
the underworld, or organized groups engaged in petty
theft and crime.

Within the present structure of tourism, the
tourist confronts natives mostly in the roles of waiters,
stewards, receptionists, hostesses, cab—drivers, confi-
dence tricksters, beggars, pimps, and prostitutes, who
are hardly ideal ambassadors for any nation. Encountering
and dealing with locals in these roles, the average
tourist is often left with the disconcerting impression
that the native is naturally dishonest, insincere,

predatory, dirty, amoral or immoral. The tourist may

recoil with dismay and disgust, or may be tempted to

88

succumb to a sense of ethnic superiority. Tourism
advertisements which strain every nerve and fibre imagin-
able to conjure a vision of arcadia, completely ignores
the manichaean world of poor countries. Hardly any
explanation is given regarding the appalling conditions
of poverty and disease. On the contrary, deliberate
efforts are made to shield tourists from such eyesores
by providing them with palatial hotels often barricaded
against the surrounding population by high walls, barbed
wire fences and screens of verdant foliage, patrolled

by security guards.

The tourist hotel towering above the surrounding
bazaars, slum areas and huts of villagers, nourishes
an "enclave" culture, a wonderland of discotheques,
supper clubs, dance halls, tennis courts, swimming
pools, saunas, and golf-courses. As an oasis of luxurious
living the tourist resort becomes the epitome of inequali-
ties which divide the world's rich and poor.

The tourist displaying his wealth, sampling expensive
local and foreign food and drink while being waited on
hand and foot, is not surprisingly regarded with envy
by some members of the local population who are too poor
to afford even one substantial meal daily. While the
Western tourist becomes the self-conscious representative
of the metropolis, the hotels and pleasure resorts

become the distant outposts of metropolitan culture.

 

89

The dance halls, bars, discotheques, grills, gaming
parlours, chic dress boutiques tend to set the pace

for local "swingers.' To this glittering orb come
flocking the local elite groups. To be seen at expen-
sive dances, trendy exhibitions, concerts and exclusive
club meetings usually held at these hotels, is the
cherished ambition of the avant-garde in pursuit of
fashion. It is not surprising therefore that wealthy
families and business and political groups hire the most
glamourous hotels to illumine the magnificance of their
bethrothal, marriage ceremonies, conferences, meetings
and other ceremonial gatherings. Thus, apart from
accentuating inequalities between rich and poor nations,
rich and poor classes, tourism greatly swells the

tide of materialism. Its cultural flow is great with
expectation, but totally lacks the capacity to realize

cherished wishes of the local populace, a situation which

has the potentiality to be politically very explosive.

CHAPTER FOUR
SUMMARY AND SUGGESTIONS

This thesis has analyzed the impact of tourism
in Third World nations only at a level of incipient
research or formative conceptualization, and therefore
avoids making any conclusive statements. In doing so,
it is contributing toward breaking new ground in a rela-
tively new field of inquiry. There exists the need for
more intensive and rigorous research on the effects of
tourism, especially in formulating more appropriate
indices to facilitate monitoring and evaluating the
tourist industry and in analyzing the impact of tourism
on specific cultures and regional economies, as well
as the much broader impact on the Third World situation.
What follows are several tentative suggestions based
on the available data, as reviewed in this thesis.

Tourism has tremendous potentialities for improving
the poor economic performance and prospects of the Third
World nations through its dynamic capacity to ease the
balance of payments by earning foreign exchange, providing
employment, stimulating infrastructural growth and pro-
viding avenues of new entreprenurial activity. This

proposition holds good especially in the case of smaller

90

91

nations such as, for example, the Bahamas and other
Caribbean countries, endowed with great natural beauty
though lacking in marketable resources.

However, Third World nations should guard against
plunging headlong into heavy investment and commitments
in foreign collaboration regarding the tourist industry
without carefully assessing the implications involved.
Adopting a cautious and critical approach is necessary
to maximize returns, minimize costs, and to link tourism
more effectively to the realization of development goals
benefiting the masses. Unfortunately, today there is
the tendency to gloss over the benefits and to ignore
the costs. The tourist industry could be justified
as a development strategy only if tourist planning adopts
a more balanced rationale, consciously oriented towards
maximizing benefits and minimizing costs, a process
possible only through careful research and stringent
monitoring of tourist operations. The following measures

are particularly important.

 

1. Increasing regional and local control of the
industry. In view of the substantial leakages in gross

tourist earnings at present, it becomes imperative that
local control over all types of tourist operations
should be increased as much as possible.

Apart from lessening leakages, greater local control

would help Third World nations to accrue a larger share

 

92

in world tourism earnings. Critiquing the present situa-
tion Migot-Adholla notes that it is

evident that a high proportion of the money
paid by tourists to Third World destinations
accrues in the countries of tourist origin.
This is largely explained by the monopoly

of air travel to tourist destinations by
airlines from the metropolitan countries
for, as the distance to the host country
increases, the cost of air travel becomes

an increasingly larger part (50-60 percent)
of the final cost of the package. To
illustrate, out of about 18,600 seats per
week available in airlines operating

in Kenya, only 2,000 (or about 11 percent)
belong to Kenya Airways, while more than
60 percent belong to airlines from Europe.73

There are two crucial dimensions to such local
control: national, as regards the control exercised

by a particular host country; and macro-regional,

 

as regards the collaboration of a number of Third World
nations to control as well as foster the growth of

the Third World tourist trade. Given the difficulties
faced by a single poor country attempting to manipulate
the demand and supply forces of the tourist trade to
advantage, it would be far more effective if a number

of poor countries belonging to the same geographic area
combined to pool resources regarding the management

of tourism advertisements abroad as well as the provision
of reservation and transport services. It is only through
macro-regional collaboration that the might of multi-

national companies could be diminished.

93

At a national level, governments should effect
greater ownership of establishment catering to tourists.
This necessitates stricter measures of taxation, offi-
cially stipulated quotas of foreign shareholding,
minimum quotas regarding the employment of native execu-
tives, and greater incentives for local entrepreneurs
in the tourist trade.

Apart from ownership, local control could be
exercised by curtailing imports presently requisitioned
by the tourist industry. This necessitates the greater
use of local foodstuffs and recourse to local archi-
tectural designs facilitating the use of locally available
construction materials, etc. The curtailment of imports
would be increased if the scale of investment in tourism
was reduced by building small and medium sized hotels
encouraging the renting of rooms in homes without resort-
ing to the construction of enormous five star hotels
carrying the most up-to-date modern service facilities
which are, more often than not, part of multinational
hotel chains such as Holiday Inn, Intercontinental,
Hilton, Oberoi, and the like. I

In order that the income benefits of tourism be
more widely distributed, another measure of local control
is to encourage grass-roots administrative units and
community organizations like town councils, village

councils, religious groups, women's clubs, production

94

committees, etc., to run small guest houses for toursits,
and sponsor the training of craftpersons and artists,
thus linking local production with sales outlets opened
by the tourist industry.

2. Reformulating Indices. The contradictory

 

and often exaggerated estimates yielded by the tourist
multiplier, and other models of cost-benefit analyses,
highlight the need for questioning the accuracy of con-
ventional indices, especially since important policy
decisions are made on the basis of findings yielded

by such measures. Regarding the tourist industry as

well as all other adopted development strategies, it
becomes essential to formulate indices which indicate

not only the feasibility of investment, but also possess
the capacity to measure progress in relation to goal
realization by the particular industry reviewed. Instead
of conforming to conventional standards laid down by
Western paradigms, these indices should be formulated
with explicit reference to the special development prob-
lems and priorities faced by a Third World nation.

For example, if the nation in question wishes to increase
its foreign exchange earnings, then the particular method
of evaluation should not only be to estimate gross
earnings, but also to account for all possible types

of leakages taking place. Again, if income distribution

is to be a goal of tourism, then indices should be

 

95

designed to enable the periodic assessment of employment
and entreprenuerial activity generated by tourism. This
information would facilitate the further broadening

of the base of redistributive channels.

It becomes obvious that such a rationale requires
the substantial modification of present models of evalua-
tion, as well as taking innovative steps in formulating
new models of multipliers, cost-benefit analyses and

input-output analyses.

 

The exuberant rate of growth demonstrated by the
tourist industry over the last two decades, however,
does not downplay the fact that the demand elasticity
of the tourist industry is hypersensitive to all factors
affecting international travel. The present economic
recession in industrialized countries and the spiralling
costs of fuel which inflates the cost of travel does not
auger well for the tourist industry. Among other reasons,
this salient consideration also highlights the need
for evaluating tourism in the context of opportunity
costs.

A nation contemplating investment in tourism without
being bedazzled by the prospect of large profits, should
carefully figure out the cost/benefits of investing
in economic ventures which, though.much less glamorous
than tourism, may be more viable in terms of long-range

returns, low capital outlay of scarce resources, modest

96

but more widespread benefits, and less possibilities
of unpleasant side effects.

3. Reducing the Economic Costs of Tourism. In

 

the preceding chapter, the unanticipated, often obscure
impact of tourism has been discussed with reference
to the pressures caused for a nation's regional economy
by increases in the cost of living. Innovative steps
could be taken, however, to reduce this detrimental
impact by establishing cooperatives and state-managed
retail impact by establishing cooperatives and state-
managed retail stores making essential consumer goods
available at cheap prices. Hotels may be encouraged
to maintain fairly self-contained food production systems
and thereby withdraw from competing with the local popu-
lation for locally produced foodstuffs. Tanzania
presents the example of such an innovation,
You may be interested to know what this

particular hotel has gone very far in

import substitution in so far as food is

concerned. Lake Manyara has one of the

most complete and self reliant vegetable

gardens in Tanzania. The venture is so

successful that Lake Manyara is now able

to supply vegetables to her sister hotels

in Ngorongoroabd Serengeti. The example

of Lake Manyara is now being followed by

other hotels wherever feasible.

4. Redeeming Culture. It is in the area of culture

 

that tourism has had the most negative impact. Despite
the complexity of these cultural issues, sensitive plan-

ning could minimize social costs. Some preventive measures

 

97

suggested are:

a. Doing away with massive hotel complexes and
opting instead for hotels and motels of a much smaller
scale requiring simpler infrastructure. This would not
only come within the scope of local ownership and manage-
ment, but would also encourage the adoption of a more

congruent style of living and architectural design for

 

hotels which would easily merge with the local social

and physical environmental setting. In terms of personal

 

relationships and experiences, this type of small scale,
low-profile hotel would have greater capacity to offer
to tourists a genuine exposure to local life, thereby
increasing the possibilities of mutual understanding
and appreciation.

b. Down-playing work ethics encouraging servility
in hotel employees, an attitude which is at present
drilled into these employees with assiduity through
official managerial injunctions and formal training pro-
cedures. To stress fellowship, interaction with equity
and dignity, instead of insisting on a mode of absolute
deference and servility.

c. Combating the pernicious side effects of commer-
cialism, to which tourism contributes in no small degree,
by sponsoring national institutes of culture to which
are largely entrusted the tasks of preserving or artisti-

cally readapting indigenous cultural forms. Balinese

98

artists in this respect, have almost uniquely remained
impervious to the lure of excessive material personal
profit by very often ploughing back returns to further
enrich their artistry.

Modern Balinese, however, have not become

exclusively "capitalistic" persons, in

antithesis to the "pre-capitalistic"

persons posited by Boeke....Through a

selective process, the Balinese have found

ways to increase their cash flows without

becoming "capitalists"....Many hamlet

cooperatives have worked strenously to

acquire the capital to upgrade their

orchestras, to obtain costumes, and

rebuilt the meeting halls used as per-

forming centers--based on the risky expec-

tation that they would be able to attract

paying tourists on a regular basis. They

have, in effect, invested in their cul-

tural traditions and planned for repay-

ment, with accrued interest that could

be both monetarily and culturally.75

5. Community Participation in Tourism Decision-
Making. Installing a five star hotel in the midst of
a remote, slumbering fishing village, for example, could
have traumatic effect on the fisher community. Very often
the result is the rapid transformation of the village
community into tourist guides, gigolos, prostitutes, drug
traffickers, and child-beggars playing truant from school,
in short, the total dislocation of regular occupations
and regular life styles. Instead of arbitrarily deciding,
therefore, to build a hotel, it is important to make the
community aware of the possible costs and benefits
impending and elicit the opinion of possible costs and

benefits impending and elicit the opinion of the

99

community on this controversial venture. It is also
important that grass-roots community organizations be
consulted on matters of policy-making likely to affect
the community concerned.

The above suggestions, nonetheless, are only a
first effort to explore the potentialities and risks
of tourism for Third World nations. A more systematic
and continuing research will be needed if the benefits
of tourism are to outweigh the losses. It is hoped that

this thesis is a first step in that direction.

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2Marie-Francoise Lanfant. "Introduction: Tourism
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17Emmanual De Kadt. Tourism: Passport to Development?
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28

29A. K. Bhatia. Tourism in India: History_and
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30H. Zinder and Associates, Inc. The Future of
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31

 

 

Louis Turner and John Ash, op. cit., p. 21. 1

any .7

 

 

 

 

S. P. Ahuja and S. R. Sarna (eds.). op. cit., p. 121.

3ZIbid.

33John Bryden and Mike Faber. ”Multiplying the Tourist
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31'Levitt and I. Gulati. ”Income Effects of Tourist
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35Charles W. Gearing, William W. Swart, and Var Turgut.
Planning for Tourism Development: Qualitative Approaches.
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36Patrick Rivers. "Tourist Troubles," New Society,
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37

Tina Esh, and Illith Rosenblum, op. cit., p. 158.

8George Young. Tourism: Blessing_or Blight? Ayeles-
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39

 

Ibid.
40

AlFrantz Fanon. The Wretched of the Earth. Preface
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Charles W. Gearing, et al., op. cit., p. 30.

 

103

AZS. P. Ahuja and S. R. Sarna (eds.). op. cit., p. 8.

43

AhMontek S. Ahluwalia , Nicholas G. Carter and Hollis
B. Chenary. Growth and Poverty_in DevelopingiCountries.
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45Frances Moore Lappe. Food First: The Myth of Scarcipy.
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46

47Susan George. How the Other Half Dies. London:
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48
49

50Clarence Zuvekas, Jr. Economic Development: An
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51Ben R. Finney and Karen Ann Watson (eds.). A New
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52

53John Samy. "Crumbs from the Table, The Workers
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54Harry G. Matthews. International Tourism: A
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55

A. K. Bhatia, op. cit., p. 75.

 

 

Ibid.

 

Frances Moore Lappe, op. cit., p. 129.

Charles W. Gearing, et al., op. cit., p. 54.

 

 

 

Emmanual De Kadt, op. cit., pp. 60-61.

 

 

Tina Esh and Illith Rosenblum, op. cit., p. 31.

56Harry G. Matthews, op. cit., p. 64.
57Louis Turner and John Ash, op. cit., p. 1.
58Ibid., p. 80.

I. G. Shivji (ed.), op. cit., p. 9.

104

60Lothar Nettekoven. "Mechanisms of Intercultural
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61

Harry G. Matthews, op. cit., p. 67.

62Christian Saglio. "Tourism for Discovery; A Project
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63Louis Turner and John Ash, op. cit., p. 147.

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65Marc Nerfin (ed.). Another Development: Develop-. -
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66

67Ralph Pieris. Social Development and Planning in
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68
69
70

 

 

 

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V. L. Smith (ed.)., op. cit., p. 40.
Harry G. Matthews, op. cit., p. 67.

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711. G. Shivji (ed.)., op. cit., p. 74.

 

72Christian Saglio, op. cit., p. 322.

73Migot-S.E. Adhollah. "Toward Alternative Tourism
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74

I. G. Shivji (ed.)., op. cit., p. 81.

75V. L. Smith (ed.)., op. cit., pp. 95-96.

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