Table Benefit Analysis. 10Organizational Design. 12Economic Development Council

 

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 tourism
industry within the British Virgin Islands are as follows:Mission StatementThe mission of the British Virgin Islands Economic Development plan is
to 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 competitive
positioning o   Ensure economic stability This plan sets forth to create a thriving, sustainable economy within
the British Virgin Islands by capitalizing on its existing assets and resources,
while introducing creative new innovations. This plan seeks to foster change
using 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 Desired
Outcomes)o   Increase revenue within the country o   Create new jobs and improve job retentiono   Create new marketso   Build local and regional partnerships to aid
in the advancement of the economic development of the territoryo   Provide resources for entrepreneurs o   Focus on the development of the tourism
products in the territory (Cultural tourism, Business, Eco-Beach & Nature,
Nautical Tourism, Cruise Tourism)o   Conduct training and awareness programmeso   Build new infrastructure and improve existing
infrastructure/ (expand runway, pier development, sewerage system and roads)o   Protect and preserve natural resources
(flora, fauna, historical sites)o   Reduce dependency on seasonal revenue by
introducing new products for longer seasons and longer employment.o   Build Territorial prideo   Strengthen 
core valuesThe goals and objective will discuss the potential collaborations and
will include a performance indicator. The funding of projects will be
indicated. Tortola Economic Profile Summary The British Virgin Islands (BVIs) is made of 60 plus islands and cays. They are located between the Caribbean Sea and
North of the Atlantic Ocean, which creates its subtropical and humid climate. These islands are home to approximately
31,200 people. The native islanders are known as British Virgin Islanders. The
population is made up of 82% blacks, whites make up 6.8% and 11.2% makes up
other ethnicities. These
islands are British overseas territory of the United Kingdom; however, the
legal 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 (official
exchange rate is $1.095 billion as of 2008. The industrial production growth
rate was 2.2% in 2016. Unemployment rate was 8.7% in 2010 and was ranked 110 in
comparison to the world’s labour force that is without jobs. In 2016, it was
estimated that the taxes and other revenues were 27.4% of GDP.The
British Virgin Islanders are religious, 84% are Protestants, 10% are Roman
Catholic and 6% identify as other.  The
life 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. The
population is evenly distributed thought the four major islands. Since 1967 the
BVIs has been a British dependent territory with the responsibility of
self-governance. The government of the British Virgin Islands are a
constitutional monarchy and parliamentary democratic dependency. The head of
the government is the Premier and the legislature is the House of Assembly. The
legal system is based on English common law and rules of equity and on local
statutes. The jurisdiction is part of the West Indies court system with final
appeal to the Privy Council in London. Although the BVI
is one of the most prosperous and stable islands in the Caribbean; they are
considered a ‘developing country’. The BVI is highly dependent on tourism and
financial services as a major source of income. It generates an estimated 45%
of the national income  In 2008, more
than 934,000 tourists visited the BVI. Due to its heavy reliance on the off-shore
banking, financial services sector and the tourism industry; it offers a good
investment environment, high level of privacy, good reputation and flexible
legislation. Having
only two major sources of national income reflects poorly on the territories
economic diversity. An economy like this where there is a high economic
concentration may make the economy volatile, making the economy very vulnerable
to external event such as natural disasters, weather events, global regulatory
financial changes and price fluctuations. In addition,
relying on the two main economic sectors can be linked directly to the local
productivity and competitiveness. The low productivity rate contributes to the
declination of economic growth, threatens sustainability and economic
development, and contributes to the increase in the cost of good production and
competitiveness. SWOT Analysis of the Tourism Economic Development     Public – Private Partnership Tourism stands out as one business opportunity that has the greatest
potential to be the engine for economic growth. Regionally, the private-public
partnership is crucial to the development of this industry and its benefit to
the economy of the Virgin Islands. ( Franco, M., & Estevão, C. n.d.).The public sector involvement in this economic development plan would be
to:1)       Ensure
tourism remains high on the priority list as it is one of the main pillars of
revenue within the BVI.2)      Enact new laws that will benefit the
progression of this development. 3)      Employ tourism advisors within the tourist
board.4)      Communicate with various ministries within
the BVI Government to discuss how tourism is affected by the traditional areas
of government such as agriculture, regional planning, economic development and
transport.  (Franco, M., & Estevão, C. n.d.).This partnership will create collaborations
within central government organization, establish policy networks, ensure responsibilities
are established, initiate joint investment in cooperative marketing camping’s, drive
the development of tourism strategies and non-government agencies which
includes the private sector. (British
Virgin Islands. n.d.).The government agencies and the tourism sector
offices must rely on the private sector to provide services they are not able
to such as:·        
Transportation
services·        
Attractions·        
Tour
Companies·        
Accommodation
businesses·        
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 around
the world with varying demographics. Each product targets a different market. The
purpose of this section is to appeal to persons interested in the various
products using visitor reports, profiles. This data will aid in identifying
their preferences and contribute to the development of the development of solid
tourism products; one that is inform by data and developed to fit specific
demographics. This prevents a distribution gap and helps to diversify the
offerings of the BVI. (Dolnicar, S. n.d.).Cultural TourismTourists travel to the BVI to experience the routines and the culture of
the people. They share in their festivities and travel for this sole purpose.
Cultural tourism targets men and women of persons usually between the ages of
16-65. These persons travel to enjoy the Festival and the exhibitions of our
cultural traditions. They are festive, outgoing and adventurous. Consumers of
this type of tourism are described as having an average income and live in
various parts of the world. Business TourismThe BVI is a slow-paced place for business men and women to free their
mind and conduct their business. Consumers are between 28- 50 travel for
business purposes. They travel from countries all around the world seeking to
continue business within the territory.Eco-Beach & Nature TourismWith the growth of environmental awareness, the desire to see preserved
natural environments has grown. The protected parks of the BVI have attracted
men and woman from all around the world seeking to observe nature and
experience thrilling experience of snorkelling and diving. Consumers are
families of any ethnicity with an average income. Náutical
Tourism The BVI has been named the “sailing capital of the world” and has
therefore attracted people from all around the world to sail around the many
islands. Nautical tourism is a poly-functional tourist activity with a strong
maritime component. Nautical Tourism will target a wide market of boaters from
all around the world with a passion for the ocean and maritime. Families and
boat owners with above average annual income.  Cruise TourismThe major pier park on the main island (Tortola) was built to
accommodate massive cruise liners. Consumers of cruise tourism and cruise
lovers that are interested in a route that include the BVI can experience a day
of sun, sand and sea VI style. Promotional methods includes:·        
Sales
Promotion·        
Advertising
·        
Merchandising·        
Personal
Selling·        
Public
relations and publicity·        
Internet
Marketing ·        
Applications Project Viability and Financing The Government of the British Virgin Islands
understand the importance of tourism to the economy of the BVI and has opted to
include this project in the 2018-2019 budget. They have vowed to fund 75% of
the project. The projected starting date is January 2018 and the prospective
ending date is December 2021. The cost of the project is 10.5 million US
dollars. The remaining 25% will be loaned from the National Bank of the BVI. This project will allow for the training and
customer service education for workers in the field, protecting the natural and
cultural assets, promoting the VI as a tourist destination, facilitate the up
keep of the roads and the environment, conduct awareness programmes, improving
accommodation, and begin implementation plan to expand to the airport runway to
cater to bigger airlines.  (Bates, T.
1991).  Cost – Benefit Analysis  This cost-benefit analysis shows the financial
feasibility of this project.

Social Cost

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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 there
must be policies, practices and incentives initiated, guidelines for being a
responsible traveller promoted, education and training for Islanders about
preserving the product. (Carlsen, J., & Butler, R. n.d.).Organizational Design Economic Development CouncilThe council includes the following:·        
Members
of the Tourist Board·        
Minister
of Tourism ·        
Minister
of Finance·        
One
representatives from each district ·        
One
representative 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 and
selection •       
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 and
increasing 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 an
economic development organization. ·        
Determine the objectives, goals and
policies of the organization. ·        
Appoint members to the organization. ·        
Identify funding sources for the
organization. ·        
Develop and/or support applications for
funding as appropriate. ·        
Monitor the activities of the
organization. ·        
Ensure that an economic development
strategy, budget, business and work plans are in place. ·        
Identify broad priorities. ·        
Ensure public awareness and support for
the economic development strategy. ·        
Represent the public interest.Role for the Organization and Committee Members
The responsibilities of the organization and committee
members includes: •       
Encourage broad public involvement in
economic development planning and implementation. •       
Develop economic strategies, budgets,
business plans and work plans and identify resource requirements.•       
Provide input and assessment of economic
development strategies and action plans. •       
Organize, guide and direct efforts to
implement economic initiatives. •       
Provide oversight and guidance to staff
and contractors. •       
Identify and recruit volunteers. •       
Provide technical expertise, information
and input. •       
Monitor, evaluate and report progress and
achievements. •       
Training  •       
Recognize and reward achievements. Community Role and Responsibility The implementation of a
community’s economic development strategy is likely to meet with the entire
community to encourage active participation of the community. Effective
communication and coordination and to clearly identify roles and
responsibilities of the participants in the process is important. Evaluation The tourist board of the BVI will provide quarterly updates on the goals
and objectives . These updates will include amendments of the current plan as
needs arise. An economic snapshot will be included in the update and will
include sales tax trends, loss of businesses, new businesses, unemployment rate
comparisons, number of visitors and other relevant economic data. (Hornberger, K. 2011, October 27)Tourist are required to complete a survey when leaving and entering the
country. The survey will give a broad understand of their entire experience. This data may be accessed on the BVI tourist board website or via
quarterly emails. This snapshot will give the territory a view of the tax base, other revenue
stream, employment and diversification or leakage of revenue. Ongoing training is a major component of this implementation plan. It
ensures that persons involved in the tourism industry are aware of new trends,
technology, emerging sectors, create ways for financing and other economic
development information. (Hornberger, K. 2011, October 27)Bibliography Bates, T. (1991). Financial Capital Structure and Small Business Viability. Advances
in Small Business Finance,63-77. doi:10.1007/978-94-011-3462-0_5British Virgin Islands. (n.d.). Foreign Law Guide.
doi:10.1163/2213-2996_flg_c1000045763Carlsen, J., & Butler, R. (n.d.). Introducing sustainable perspectives of island tourism. Island
tourism: sustainable perspectives,1-7. doi:10.1079/9781845936792.0001Dolnicar, S. (n.d.). Market segmentation in tourism. Tourism management:
analysis, behaviour and strategy,129-150. doi:10.1079/9781845933234.0129Financial Benefit-Cost Analysis. (n.d.). Retrieved December 10, 2017,
from
http://www.bing.com/cr?IG=A65F72525B184D2C88E72F57CA27B2AC&CID=3F8CD78924946E9C0A80DCDD253B6FA2&rd=1&h=mcHKOoFlIkKsYp-v992Z9dUPaz2ko8Fna3XSCazAG9k&v=1&r=http%3a%2f%2fwww.caee.utexas.edu%2fprof%2fmckinney%2fce385d%2fPapers%2fADB_BC_Analysis.pdf&p=DevEx,5067.1Franco, M., & Estevão, C. (n.d.). The role of tourism public-private
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http://blogs.worldbank.org/psd/should-we-be-promoting-tourism-sector-investmentSustainable & Responsible Planning and Management for the Tourism
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http://sustainabletourism.net/Swinburn, G., Goga, S., & Murphy, F. (n.d.). Local Economic
Development: A Primer Developing And Implementing Local Economic Development
Strategies And Action Plans. Retrieved December 8, 2017, from
http://documents.worldbank.org/curated/en/763491468313739403/pdf/337690REVISED0ENGLISH0led1primer.pdfUNWTO Affiliate Member (n.d.). Retrieved December 10, 2017, from
http://affiliatemembers.unwto.org/publication/global-report-public-private-partnerships-tourism-development