Table of ContentsIntroduction.
2Mission Statement. 2Economic Development Goals. 2Plan Objectives (Strategic Actions and Desired Outcomes).
2Tortola Economic Profile Summary. 3SWOT Analysis of the Tourism Economic Development. 5Public – Private Partnership. 6Marketing Community. 7Cultural Tourism..
8Business Tourism.. 8Eco-Beach & Nature Tourism.. 8Náutical Tourism.. 8Cruise Tourism..
9Project Viability and Financing. 9Cost – Benefit Analysis. 10Organizational Design. 12Economic Development Council 12Role of the Council 12Role for the Organization and Committee Members. 13Community Role and Responsibility. 14Evaluation. 14Bibliography. 15 Introduction The mission and overall economic development goal for the tourismindustry within the British Virgin Islands are as follows:Mission StatementThe mission of the British Virgin Islands Economic Development plan isto strengthen and develop the economy using Tourism as the driving force.
Economic Development Goalso Market to attract business opportunities o Develop new businesses and jobso Enhance existing businesses and employerso Promote economic, social and environmental sustainabilityo Improve quality thought Tourism Value Chaino Build and enhance unique the BVI competitivepositioning o Ensure economic stability This plan sets forth to create a thriving, sustainable economy withinthe British Virgin Islands by capitalizing on its existing assets and resources,while introducing creative new innovations. This plan seeks to foster changeusing non-traditional strategies which focuses on how to integrate technology,new innovative strategies and partnerships to make our tourism industry better.Plan Objectives (Strategic Actions and DesiredOutcomes)o Increase revenue within the country o Create new jobs and improve job retentiono Create new marketso Build local and regional partnerships to aidin the advancement of the economic development of the territoryo Provide resources for entrepreneurs o Focus on the development of the tourismproducts in the territory (Cultural tourism, Business, Eco-Beach & Nature,Nautical Tourism, Cruise Tourism)o Conduct training and awareness programmeso Build new infrastructure and improve existinginfrastructure/ (expand runway, pier development, sewerage system and roads)o Protect and preserve natural resources(flora, fauna, historical sites)o Reduce dependency on seasonal revenue byintroducing new products for longer seasons and longer employment.o Build Territorial prideo Strengthen core valuesThe goals and objective will discuss the potential collaborations andwill include a performance indicator. The funding of projects will beindicated.
Tortola Economic Profile Summary The British Virgin Islands (BVIs) is made of 60 plus islands and cays. They are located between the Caribbean Sea andNorth of the Atlantic Ocean, which creates its subtropical and humid climate. These islands are home to approximately31,200 people. The native islanders are known as British Virgin Islanders. Thepopulation is made up of 82% blacks, whites make up 6.8% and 11.
2% makes upother ethnicities. Theseislands are British overseas territory of the United Kingdom; however, thelegal currency is the United States dollar. The country’s GDP (purchasing power parity) was$500 million in 2010, the GDP – per capita is $42,300 in 2010, GDP (officialexchange rate is $1.095 billion as of 2008. The industrial production growthrate was 2.2% in 2016. Unemployment rate was 8.
7% in 2010 and was ranked 110 incomparison to the world’s labour force that is without jobs. In 2016, it wasestimated that the taxes and other revenues were 27.4% of GDP.
TheBritish Virgin Islanders are religious, 84% are Protestants, 10% are RomanCatholic and 6% identify as other. Thelife expectancy of the total population is 78.8 years, which is a good rate.
The death rate is smaller than the birth rate. The death rate being 5.1 deaths/1000 population and the birth rates being 11.1 births/1000 population. Thepopulation is evenly distributed thought the four major islands. Since 1967 theBVIs has been a British dependent territory with the responsibility ofself-governance. The government of the British Virgin Islands are aconstitutional monarchy and parliamentary democratic dependency. The head ofthe government is the Premier and the legislature is the House of Assembly.
Thelegal system is based on English common law and rules of equity and on localstatutes. The jurisdiction is part of the West Indies court system with finalappeal to the Privy Council in London. Although the BVIis one of the most prosperous and stable islands in the Caribbean; they areconsidered a ‘developing country’. The BVI is highly dependent on tourism andfinancial services as a major source of income. It generates an estimated 45%of the national income In 2008, morethan 934,000 tourists visited the BVI. Due to its heavy reliance on the off-shorebanking, financial services sector and the tourism industry; it offers a goodinvestment environment, high level of privacy, good reputation and flexiblelegislation. Havingonly two major sources of national income reflects poorly on the territorieseconomic diversity.
An economy like this where there is a high economicconcentration may make the economy volatile, making the economy very vulnerableto external event such as natural disasters, weather events, global regulatoryfinancial changes and price fluctuations. In addition,relying on the two main economic sectors can be linked directly to the localproductivity and competitiveness. The low productivity rate contributes to thedeclination of economic growth, threatens sustainability and economicdevelopment, and contributes to the increase in the cost of good production andcompetitiveness. SWOT Analysis of the Tourism Economic Development Public – Private Partnership Tourism stands out as one business opportunity that has the greatestpotential to be the engine for economic growth. Regionally, the private-publicpartnership is crucial to the development of this industry and its benefit tothe economy of the Virgin Islands. ( Franco, M.
, & Estevão, C. n.d.).The public sector involvement in this economic development plan would beto:1) Ensuretourism remains high on the priority list as it is one of the main pillars ofrevenue within the BVI.2) Enact new laws that will benefit theprogression of this development.
3) Employ tourism advisors within the touristboard.4) Communicate with various ministries withinthe BVI Government to discuss how tourism is affected by the traditional areasof government such as agriculture, regional planning, economic development andtransport. (Franco, M.
, & Estevão, C. n.d.).This partnership will create collaborationswithin central government organization, establish policy networks, ensure responsibilitiesare established, initiate joint investment in cooperative marketing camping’s, drivethe development of tourism strategies and non-government agencies whichincludes the private sector. (BritishVirgin Islands. n.
d.).The government agencies and the tourism sectoroffices must rely on the private sector to provide services they are not ableto such as:· Transportationservices· Attractions· TourCompanies· Accommodationbusinesses· Investors· VendorsThis partnership will aid in: Introducing technology from the private sector and innovation in providing improves public services . Contracting opportunities for local firms in areas such as facilities management, maintenance services, cleaning services, electrical works, civil works and security services. Using the private sector to deliver the project within budget and in a timely manner.
Using public sector capacities to meet the infrastructural development. Creating local private sector capabilities through the collaboration with large international firms. (Government Objectives: Benefits and Risks of PPPs.n.d.).
Marketing Community The BVI tourism products, (Cultural, business, Eco,beach and nature, nautical and cruise tourism) attracts persons from all aroundthe world with varying demographics. Each product targets a different market. Thepurpose of this section is to appeal to persons interested in the variousproducts using visitor reports, profiles. This data will aid in identifyingtheir preferences and contribute to the development of the development of solidtourism products; one that is inform by data and developed to fit specificdemographics. This prevents a distribution gap and helps to diversify theofferings of the BVI.
(Dolnicar, S. n.d.
).Cultural TourismTourists travel to the BVI to experience the routines and the culture ofthe people. They share in their festivities and travel for this sole purpose.Cultural tourism targets men and women of persons usually between the ages of16-65.
These persons travel to enjoy the Festival and the exhibitions of ourcultural traditions. They are festive, outgoing and adventurous. Consumers ofthis type of tourism are described as having an average income and live invarious parts of the world. Business TourismThe BVI is a slow-paced place for business men and women to free theirmind and conduct their business.
Consumers are between 28- 50 travel forbusiness purposes. They travel from countries all around the world seeking tocontinue business within the territory.Eco-Beach & Nature TourismWith the growth of environmental awareness, the desire to see preservednatural environments has grown. The protected parks of the BVI have attractedmen and woman from all around the world seeking to observe nature andexperience thrilling experience of snorkelling and diving. Consumers arefamilies of any ethnicity with an average income.
NáuticalTourism The BVI has been named the “sailing capital of the world” and hastherefore attracted people from all around the world to sail around the manyislands. Nautical tourism is a poly-functional tourist activity with a strongmaritime component. Nautical Tourism will target a wide market of boaters fromall around the world with a passion for the ocean and maritime. Families andboat owners with above average annual income.
Cruise TourismThe major pier park on the main island (Tortola) was built toaccommodate massive cruise liners. Consumers of cruise tourism and cruiselovers that are interested in a route that include the BVI can experience a dayof sun, sand and sea VI style. Promotional methods includes:· SalesPromotion· Advertising· Merchandising· PersonalSelling· Publicrelations and publicity· InternetMarketing · Applications Project Viability and Financing The Government of the British Virgin Islandsunderstand the importance of tourism to the economy of the BVI and has opted toinclude this project in the 2018-2019 budget. They have vowed to fund 75% ofthe project.
The projected starting date is January 2018 and the prospectiveending date is December 2021. The cost of the project is 10.5 million USdollars. The remaining 25% will be loaned from the National Bank of the BVI. This project will allow for the training andcustomer service education for workers in the field, protecting the natural andcultural assets, promoting the VI as a tourist destination, facilitate the upkeep of the roads and the environment, conduct awareness programmes, improvingaccommodation, and begin implementation plan to expand to the airport runway tocater to bigger airlines.
(Bates, T.1991). Cost – Benefit Analysis This cost-benefit analysis shows the financialfeasibility of this project. Social Cost Social Benefits May attract visitors whose lifestyles and ideas conflict with the community’s. Brings in outside money which supports community facilities. May affect individual behaviour and family relationships. Encourages civic involvement and pride.
Traditional and cultural values may be lost through the appropriation of visors behaviour and culture. Encourages the preservation and celebration of local festivals and cultural events. May compete with residents for available resources, services, facilities, and existing recreation opportunities. Provides cultural exchange between hosts and guests. Tourism facilities and infrastructure would be beneficial to residents. Encourages the learning of new languages and skills. Environmental Costs Environmental Benefits May be a threat to natural resources such as beaches and coral reefs , national parks or historical sites. Fosters conservation and preservation of natural, cultural and historical resources.
May increase litter, noise, and pollution. Encourages community beautification and revitalization. Directly contributes to sewage and solid waste pollution. Could be considered a clean industry. Economic Costs Economic Benefits Employment is usually seasonal.
Workers may be laid off in the winter season. Aids in diversifying and stabilizing the local economy. Many jobs in the tourism industry are poorly paid. Provides revenues each year through accommodation and restaurant taxes, departure taxes, national park entrance fees and employee income tax. Employees in the service industry will benefit from tips Creates local jobs directly related to tourism and business opportunities of those who indirectly support tourism. Labour-intensive. Earns valuable foreign exchange. Helps attract additional businesses and services to support the tourist industry.
In order to address environmental, social and economic concerns theremust be policies, practices and incentives initiated, guidelines for being aresponsible traveller promoted, education and training for Islanders aboutpreserving the product. (Carlsen, J., & Butler, R.
n.d.).Organizational Design Economic Development CouncilThe council includes the following:· Membersof the Tourist Board· Ministerof Tourism · Ministerof Finance· Onerepresentatives from each district · Onerepresentative from each sector of tourism in the BVI· Investors Role of the CouncilThe role of these participants include:• adjust and rethink policies and procedures• development systems like recruitment andselection • sharing of information• performance management and rewardsThey’re responsible for inviting community interest and participation,brining the voices and expertise of local businesses and residents andincreasing community support for decisions and actions. Role of Key Participants ( Ministers, Investors and Tourist Board)The role of key participants of council includes: · Provide the legal framework for aneconomic development organization.
· Determine the objectives, goals andpolicies of the organization. · Appoint members to the organization. · Identify funding sources for theorganization.
· Develop and/or support applications forfunding as appropriate. · Monitor the activities of theorganization. · Ensure that an economic developmentstrategy, budget, business and work plans are in place.
· Identify broad priorities. · Ensure public awareness and support forthe economic development strategy. · Represent the public interest.
Role for the Organization and Committee MembersThe responsibilities of the organization and committeemembers includes: • Encourage broad public involvement ineconomic development planning and implementation. • Develop economic strategies, budgets,business plans and work plans and identify resource requirements.• Provide input and assessment of economicdevelopment strategies and action plans. • Organize, guide and direct efforts toimplement economic initiatives. • Provide oversight and guidance to staffand contractors. • Identify and recruit volunteers. • Provide technical expertise, informationand input. • Monitor, evaluate and report progress andachievements.
• Training • Recognize and reward achievements. Community Role and Responsibility The implementation of acommunity’s economic development strategy is likely to meet with the entirecommunity to encourage active participation of the community. Effectivecommunication and coordination and to clearly identify roles andresponsibilities of the participants in the process is important.
Evaluation The tourist board of the BVI will provide quarterly updates on the goalsand objectives . These updates will include amendments of the current plan asneeds arise. An economic snapshot will be included in the update and willinclude sales tax trends, loss of businesses, new businesses, unemployment ratecomparisons, number of visitors and other relevant economic data. (Hornberger, K. 2011, October 27)Tourist are required to complete a survey when leaving and entering thecountry. The survey will give a broad understand of their entire experience. This data may be accessed on the BVI tourist board website or viaquarterly emails.
This snapshot will give the territory a view of the tax base, other revenuestream, employment and diversification or leakage of revenue. Ongoing training is a major component of this implementation plan. Itensures that persons involved in the tourism industry are aware of new trends,technology, emerging sectors, create ways for financing and other economicdevelopment information. (Hornberger, K.
2011, October 27)Bibliography Bates, T. (1991). Financial Capital Structure and Small Business Viability. Advancesin Small Business Finance,63-77. doi:10.1007/978-94-011-3462-0_5British Virgin Islands. (n.d.
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