Inclusive Sector Growth Strategy, for Poverty Reduction and WEE Tourism and Related Support Services and Industries Market Development Facility
January 2015
Table of Contents Chapter 1: Sector Growth Strategy ......................................................................................................... 3 Chapter 2: Key constraints and opportunities in the market system ..................................................... 5 2.1 Constraints ........................................................................................................................................ 5 2.2 Opportunities to address key constraints ......................................................................................... 8 Chapter 3: Sector growth strategy ........................................................................................................ 10 3.1 The strategy ..................................................................................................................................... 10 3.2 Relevance for pro-poor growth ....................................................................................................... 12 3.3 Relevance for cross-cutting themes ................................................................................................ 12 Annex 1 .................................................................................................................................................. 16 Annex 2 .................................................................................................................................................. 21 Annex 3 .................................................................................................................................................... 2
Market Development Facility | i
List of Tables Table 1: Analysis of MDF’s efforts towards relevant government policy objectives and strategies ...... 4 Table 2: Key constraints in the tourism sector and the wider market system around it ........................ 6 Table 3: Intervention areas and potential intervention ideas to capture opportunities ........................ 8 Table 4: Sector growth strategy for tourism and related support industries ....................................... 10
Market Development Facility | ii
Chapter 1: Sector Growth Strategy On the basis of both the recent growth trends in tourist arrivals and revenues and those forecast, MDF sees strong, stable growth opportunities in the tourism sector which should foster economic opportunities for the poor and underprivileged in Fiji. In terms of MDF’s role in encouraging this inclusive expansion in the tourism industry, the assessment highlighted several potential areas for growth.
Increased tourists arrivals Firstly, potential exists to increase the numbers of visitors flying to and within, Fiji. To foster continued growth there needs to be less dependence on the traditional source markets of Australia and New Zealand (NZ) whose visitor growth rates appear to be peaking. There is potential for realignment towards countries in Asia (Taiwan, South Korea and China) which make up the fastest growing global source market for overseas travellers. Increasing transport links and the frequency of flights to the Asia region would thus be a significant step in this direction. Backpacker numbers are also increasing from Australia and NZ, the UK and continental Europe and presents growth potential. Backpackers stay an average of three days longer than other travellers and are generally inclined to visit areas outside the usual tourist zones. This presents opportunities for communities outside the Denarau and Coral Coast areas to benefit from increased visitors.
Increased expenditure There is also strong potential to increase the length of stay and expenditure of tourists. A key area in fostering this growth is increasing the range of activities and attractions for tourists, the majority of whom currently spend most of their time and money on accommodation and activities within the Denarau and Coral Coast areas. If they were able to take advantage of the range of activities and travel options to areas outside of these, the benefits would reach much further. There is also an opportunity to offer a more diversified shopping experience with authentic Fijian products, such as handicrafts and fashion based on local designs. There are opportunities for cultural and environmentrelated activities, such as walking tours, hikes and village stays. These are opportunities to diversify Fiji’s product offering from its current one-dimensional focus on resorts and tourist activities centered exclusively around a limited location. More activities, entertainment and better shopping options could increase the average daily expenditure of visitors and possibly lengthen their stay in Fiji.
Increased local sourcing There is strong potential for increasing the supply of locally produced quality inputs to hotels and resorts. Encouraging more local inputs into the tourism industry would stimulate growth in the support services and industries. Food, for instance, is a major cost centre for accommodation providers. A significant proportion of the fruit and vegetables they use is imported; there is thus an opportunity for these to be sourced from local farmers and wholesalers. There is also potential for greater local supply of other specialised inputs to hotels and resorts, such as furniture and fittings. Local farmers and producers providing these inputs to the tourism sector would mean that more tourist revenue circulates within the domestic economy and generates local employment and income, rather than leaking abroad as import payments. Furthermore, chefs at local resorts can make use of these quality local ingredients to prepare more Pacific and international dishes, thereby enhancing visitors’ dining experience in Fiji. Market Development Facility I 3
Alignment with the Government of Fiji As mentioned earlier the core responsibility of the Ministry of Industry, Trade and Tourism is to formulate policies and coordinate tourism development initiatives in Fiji. To that end, the Government has developed key targets based on which they have developed certain key performance indicators (KPI). Table 11 outlines the efforts by MDF to work within the development framework set out by the Fijian government and elaborates how MDF’s projects (interventions) complement governments effort in achieving development in Fiji. Table 1: Analysis of MDF’s efforts towards relevant government policy objectives and strategies Government of Fiji Policy and Strategy Goal: A sustainable, growing and globally competitive industry. Fiji benefits from a sustainable increase in economic contribution and retention of the tourist dollar from an environmentally and socially sustainable and equitable tourism sector. KPIs: - Target 14,361 rooms by 2014 - 10% annual growth rate in Tourism GDP - 10% annual growth rate in tourism investment - Target 4,600 additional jobs created by 2014. - Target 925,000 visitors by 2014 - Average tourist spend increase by 10% per year - Average length of stay increases to 8 nights by 2016 - Average occupancy rate maintained at 65% - At least 15% of Tourism Fiji’s marketing budget dedicated to promotion of the Northern Division.
MDF’s Strategies and Efforts in the Tourism and Related Support Industries Sector MDF partnerships formed with private sector organisations with interventions designed to create a wider systemic change in the following areas to grow this sector: Increasing tourist spending and increase length of stay; Increasing spread of tourism in Fiji; Enhancing the food basket with access to local produce and seafood either processed for fresh.
Resource owners benefit from greater participation in the tourism industry. KPI: - 5% growth in businesses (51% or more ownership) owned by resource owners established and licensed per year. - At least 50 per cent of nature-based and community-based tourism operations meet or exceed recommended best practice guidelines and standards by 2012 At least 4 new natural and cultural attractions developed by 2014. Sustainable Eco-Tourism Development - Development of ecotourism standards by 2010 - 5 percent annual growth in Eco-tourism
Tourism Fiji In light of the growth potentials in the growing emerging market, MDF has been in discussions with Tourism Fiji to identify joint efforts towards meeting the distinct needs of this market. On the other hand, in order for better commercial presentation, MDF’s partnership with the tour operators, activity providers, inflight magazine company and online reservation company aims to strengthen this band for a wider reach both offshore and inshore. The Department for Culture and Heritage advises the government on policy issues and maintains a national culture databank. Museum operation falls under this department. With number of visitors in the museum stagnating and over two third of its artefacts kept in container, because of lack of space, MDF sees revamping and promotion of the Museums as an ideal way to turn things around. Market Development Facility I 4
Chapter 2: Key constraints and opportunities in the market system 2.1 Constraints This report identifies seven major constraints which limit the growth potential of the tourism sector in Fiji. These are discussed below and presented in Table 10, along with two additional areas of opportunity.
Limited transport linkages A key constraint restricting tourists’ access to travel within Fiji is transport, specifically the inefficient flight and ferry linkages between islands. This raises the costs in terms of travelling within Fiji in terms of time and money, which impacts particularly on the backpacker and flashpacker tourist segments. The lack of transport infrastructure limits the majority of visitors (and as a consequence, the economic impact of the tourism industry) to the resort and hotel corridors along the western side of Viti Levu. While this is a major constraint area, it is also one which is difficult to influence. MDF’s efforts in this area might be limited to working with inbound tour operators who tend to handle the logistical travel needs of the majority of the package tourists who visit Fiji, as well as seeking to convince domestic airlines of the market potential of more flights to outter tourist areas.
Lack of organized travel information Visitors to Fiji have limited knowledge of the activities available for them. There is no central online location which provides access to information on where to go, what to do and what options exists for booking. Once in Fiji they are limited to resort activity desks which are not incentivized to send guests off the resort property.
Limited shopping, entertainment and activity options The bulk tourism to Fiji popularised in the 1970s promoted the resort as the central part of the visitor experience. As a result, there is real underdevelopment of activities for visitors outside the resort space. In addition, aside from some key handicraft items, cosmetics and a few food items, good shopping experiences for tourists are limited, particularly for locally made products.
Under-use of locally made inputs There are additional constraints centred on local sourcing of industry inputs. Local growers and wholesalers lack capacity to produce and supply fruit and vegetables all year round. They also lack knowledge of, or the capabilities to meet, the hotel and resort quality requirements, which thus continue to rely on imported produce for their food preparation. This drives up prices, adversely affecting the visitor’s experience. Additional supplies such as furniture are also often sourced from overseas, representing a further missed opportunity to develop local supporting industries.
Limited Pacific-inspired culinary experiences and other activities for tourists Hotels and resorts miss opportunities to create a more unique Pacific cuisine experience and to save costs by making more use of locally available produce. By developing locally inspired dishes, chefs could enhance the tourist experience and utilise more local produce. Often chefs are not aware of the Market Development Facility I 5
ingredients available locally which could be added to standard Western dishes to give them a Pacific character. Expatriate chefs tend not to be familiar with Pacific cuisine or how local dishes could be upgraded to cuisine-level for tourists. Opportunites also exist to increase the number of “things to do” for tourists, ranging from cultural shows to village stays to walking tours to shopping and entertainment activities.
Limited hospitality skills There are scopes to improve on capacity and skills of staffs employed within the hotels and resorts. While the larger chains have such measures in place, the other hotels and resorts do not and have to rely on what is offered as training programs. Two constaints impede such activities: reluctance of these resorts and hotels to send staffs to training (apprehend that staff will leave after training) and the disconnect between what courses are offered and what industry requires. Hence scopes exisits for MDF to work in this area provided willing partners are found. Table 2: Key constraints in the tourism sector and the wider market system around it Constraint area
Explanation and causes
The absence of efficient transport linkages prevents tourists from traveling within Fiji
Bad, unreliable, expensive domestic connections, small airplanes Virtual airline monopoly; Small domestic market: high price + unreliability+ inadequate infrastructure prevents growth Under-utilized local ferries Ferries predominantly used for local freight License system might prevent companies from investing/upgrading Cruise ships only dock in major ports (Suva, Nadi, and Lautoka) Reasons not clear; work with Carnival in Vanuatu on developing new docking locations should be possible
The absence of ‘organized’ online travel information (circuits) and booking systems prevents tourists from planning/booking longer trips to more diverse destinations in Fiji
No public investment in detailed, accessible travel information Tourism Fiji does not want to promote specific circuits; represents the big picture No private sector investment in detailed, accessible travel information Online business (website) does not exist; the business model (investment) is unclear: investment to collect and update information vs revenue stream from bookings and advertisement; technology might be not known; feasibility of online booking (systems of most hotels not sophisticated enough) Associations seem to struggle to collect funds, find expertise to launch their website Concept of circuits seems little known; Lonely Planet has it on their first pages; the thinking in Fiji revolves around resorts Tour operators book day tours and provide longer travel itineraries, but put their information not out in public
Shopping and entertainment options are limited; local products not much sold or sought after
Shopping and entertainment (clubs, restaurants) still geared predominantly to local population Tourists stay in their resorts, few independent travelers Perhaps Fiji still misses the traveler volumes for large-scale retailing/entertainment focusing on tourists (beyond the big three retail chains Tappoo’s, Proud’s, Jacks, but in a limited way); On a smaller scale, specialized shops, cultural centers, etc, hardly exist Fashion is a distinguishable local product but lacks retail points Locally made handicrafts struggle to compete with imported ‘fakes’ Handicrafts sector appears fairly disorganized; market demand not filtering through Market Development Facility I 6
Constraint area
Explanation and causes to dispersed product; product development driven mostly by inspiration, not ‘what does the customer want’ Organized handicraft production from overseas, copying Fijian design is cheaper and guarantees more consistent supply Tourist cannot distinguish between imported and locally made; label or origin is absent
Hotels and resorts use a sizeable percentage of imported fresh produce and food stuff for lack of consistent and good quality local supply
Farmers do not cultivate all the crops according to the requirements of the sector and do not produce year-round Farmers are not familiar with growing certain crops as they are not part of the Fijian diet Famers do not have access to reliable cultivation information to guarantee quality and productivity; access to good inputs such as seeds as times is also an issue Public extension services do not reach farmers Wholesalers connecting agricultural market to hotels and resorts often do not have an agricultural background and hence cannot provide cultivation advice; access to private extension hence limited; stable supply relations from farmer to wholesaler to hotel Farmers are not familiar with, or have limited access to more controlled forms of cultivation to lengthen the production season (irrigation for the ‘second’ crop; covered production such as tunnels, green houses, hydroponics for the third crop, the real off-season) Cold storage, semi-processing of agricultural produce nearly non-existent; nearly impossible to get investments in agribusiness financed through a bank
Hotels and resorts miss opportunities to create a more unique Pacific cuisine experience and save costs by making more use of locally available produce
Chef cooks do not utilize local produce to the extent they could
Hospitality skills might be lacking compared to the cost-level and ambitions of Fiji as an exclusive destination
Hotel staff lack skills
Hotels and resorts use a sizeable percentage of imported non-food supplies for lack of suitable local supply
Local businesses are either non-existent or lack the technical set up to deliver what is required
Chef cooks, often being expatriates, are not aware of what is locally available in terms produce that could go into standard Western dishes Chef cooks, often being expatriates, are not familiar with Pacific cuisine, or how local dishes could be upgraded to cuisine-level Junior local chef cooks are not taught how to re-engineer menus to make better use of locally available dishes, without doing harm to the quality of the dish Grades are absent that can help communicate what chefs need to procurement officers and then further down the chain and vice versa
Training courses are too theoretical, too short, or the curriculum is simply not up to standard On the job training is insufficient, perhaps because good trainers/consultants are not available yet
Fiji has a little diversified economy; certain products like glasses are simply not manufactured in Fiji; sometimes this is for good reasons such as lack of scale to be competitive, but sometimes the country is just ‘waiting’ for the entrepreneur to stand up and start up Certain businesses like furniture manufacturing do exist, but have a limited product range due
Not a constraint area per se, but more could be done to brand Fiji as a ‘green’
Fiji has a very positive brand reputation, which makes products like ‘Fiji Water’ and ‘Spices of Fiji’ sell at premium prices in export markets; more could be done to reinforce the image of the ‘unspoilt paradise’ in the tourist’s mind Market Development Facility I 7
Constraint area
Explanation and causes
‘unspoiled paradise’ destination, banking on the strength of its brand
There is no uniform vision of how Fiji should present itself; those at the high end of the market have more room for investment in eco-friendly solutions than those with lower margins Companies which (could) promote eco-friendly solutions might not exist or target resorts Price pressure over the last few years is not conducive to such solutions; there is a need to promote solutions which help save money
Not a sector-wide constraint per se, but more could be done to stimulate tourism in areas with few economic alternatives such as Vanua Levu
Tourism, because of its unique features, can make a difference in localities where other business opportunities might be scarce due to the isolated nature of the location, the absence of a local workforce or the absence of a local market. ‘Remote’, ‘isolated’, ‘quiet’ and ‘natural’ are words which most industries might dislike, but for which tourists pay a premium. Establishing or growing a tourism business in such areas might be hard (for the same reasons other business would struggle). Here, market facilitation might be in order.
2.2 Opportunities to address key constraints Table 11 presents constraint areas are presented as intervention areas. MDF will negotiate deals with potentially innovative businesses to trigger innovation and enable them to fill the gaps which have arisen because of the constraints. In the example of the lack of locally sourced fresh produce (identified as a constraint), MDF strategy will focus on working with local businesses to make available quality, locally grown produce for resort buyers. Overall, MDF strategy in the tourism sector will involve building a portfolio of partnerships with businesses in those intervention areas which correspond to the identified constraint areas. Table 3: Intervention areas and potential intervention ideas to capture opportunities Intervention area (Access to) More convenient, better coordinated and less costly domestic transportation linkages
Opportunities This is a very difficult area and the Facility needs to be modest here. The Facility will carry out further research to find out what is feasible. Potential opportunities might include: Working with domestic airlines and/or airline consultants and/or tourism organizations to create more awareness on the market potential of more frequent and better coordinated flights to destinations outside of the mainland. eg Savusavu, Taveuni, Kadavu, Lau group; A study as a starting point to understand more on local shipping connections; Working with cruise lines on establishing more interesting ports of call.
(Access to)
This is an area that is surprisingly little developed given Fiji’s wish to see tourism grow.
Travel information (circuits) and bookings
Working with website developers and/or travel agents and/or regional tourism associations to develop websites or other ways in which tourists can have access to more detailed travel information on Fiji including different itineraries/circuits, types of accommodations, activities, sight-seeing places and online booking facilities. Expanding the reach of marketing to countries such as China and India, and potentially other lucrative markets.
(Access to)
This area wil be very much driven by opportunities to work with specific companies producing a specific product for which there is a tourist market. Potential opportunities might include:
More diversified shopping, entertainment and activities
More, more diverse, better handicrafts and arts, perhaps spilling over into Market Development Facility I 8
Intervention area
Opportunities accessories, jewelry, fashion and resort wear, and beyond that into arts centers, cultural tours, events, etcetera. Working with inbound tour operators to develop and access more current and new activity sites.
(Access to) Year-round fresh and processed (HACCP certified) produce and food stuff
(Promotion of) Pacific cuisine, better culinary skills, and awareness of use local produce and food stuff
6. (Access to) Better hospitality services and skills
7. (Access to) More diversified and better quality supplies to the tourism sector such as local furniture and fittings
8.“Green Fiji”
This receives a surprising amount of donor attention, which however is mostly targeted towards farmers and farmer groups. Potential opportunities include: Working with specialized wholesalers, nurseries and suppliers of agricultural equipment and inputs to educate farmers on year-round production of specialty crops so that growers learn appropriate methods. Promote specialised growers and crop-cover methods to increase consistency and supply. Working with food processors on new products and better sourcing. Working to ensure that information on health and safety standards in cultivation and food processing is known and applied. This is an area with much potential, and could have various results, increasing the demand for local produce, and making Fiji more known as a culinary destination. Working with education or master classes to give chefs more exposure to local produce and local cuisines Establishing an industry-wide grading system to create more clarity on which produce is suitable for which dishes Initiatives to develop a distinctive Fijian fusion cuisine (e.g., building on chef’s competitions) The Team is required to explore ideas in this intervention area. If no significant progress is made, this area is likely to be removed from the sector strategy. Working with tourism associations and training institutions to develop more practical skills based curriculums for tourism studies. This area is the equivalent of the area addressing tourist shopping needs. It s about supplies to hotels and resorts other than foodstuffs. It is also driven by opportunities to work with specific companies producing a specific product for which there is a tourist market. Potential opportunities might include:
Working with furniture companies to expand their range of products. Develop furniture designs suitable for the tourism market.
This area focuses on sustainable practices in the tourism industry. Potential opportunities might include: Working on renewable energy, code of conduct to prevent use of underage or endangered animals in kitchens, organic farming, etc. Volunteer tourism initiatives that involve community based development initiatives
9. (Promotion of) Tourism on Vanua Levu
This area focuses on capturing opportunities on Vanua Levu. Possible opportunities may be in:
Improved connections with VitiLevu (airlines, ferries) Increased sourcing from Vanua Levu More cruise ships dock in Savusavu Development of more activity sites and tour circuits in Vanua Levu
Market Development Facility I 9
Chapter 3: Sector growth strategy 3.1 The strategy MDF has formulated a sector growth strategy based on the constraints and opportunities described above These are presented in Table 12, including examples of potential interventions designed to capture these opportunities. These interventions are ‘potential examples’ because MDF will only invest once a deal is negotiated with a potential partner for a time-bound package of activities which will trigger lasting change. A signed agreement will state which party will be responsible for what activities and who will pay for what. Table 4: Sector growth strategy for tourism and related support industries Constraint area (Access to) More convenient, better coordinated and less costly domestic transportation linkages.
(Access to) Travel information (circuits) and bookings. (Access to) More diversified shopping, entertainment and activities.
(Access to) Year-round fresh and processed (HACCP certified) produce and food stuff.
(Promotion of) Pacific cuisine,
Market to be influenced (Potential) tourists are able to reach Fiji and travel within Fiji in an efficient manner.
Anticipated results if markets starts to work better Increase in the number of tourists traveling to Fiji and (perhaps) longer stays >> additional sales and employment in tourism.
Type of potential partners Airlines, organisations promoting tourism or the Pacific (e.g., South Pacific Tourism Organisation).
Relevance to WEE ( if applicable)
(Potential) tourists are able to plan and book more comprehensive holidays than ‘just’ a resort stay. Tourists have access to more things to do and things to buy >> tourist spending goes up and the Fijian tourism experience gets more diversified.
Increase in the number of tourists traveling to Fiji and longer stays >> additional sales and employment in tourism.
Regional tourism associations, ICT/website developers, organizations Same as above. promoting tourism.
Create a higher tourist yield >> additional employment and business activity in the support system.
Retailers, handicrafts/arts wholesalers and manufacturers, fashion designers, culture and nature-related activity operators.
Contributes to WEE domains 1, 2, 4 and 5. It is expected that women will have more income opportunities (increased casual work hours per week or season) as tourists travel more frequently to non-common zone. Increased access to accommodation providers and activity sites will also allow women to have access to jobs, skills and other support areas to better service the increased tourist arrivals in these outer areas. Women involved in tourism tend to have significant control over their earned wages and thus can influence decision making in the household.
Contributes to all WEE domains. It is expected that women will have additional income opportunities from increased demand and orders as tourist spending increases. Women’s increased workload can be efficiently managed through access to skills, tools, technology and other support areas. Women involved in tourism tend to have significant control over their earned wages and thus can influence decisions made in the household. Hotels and resorts Less leakage, which means less Wholesalers, food Contributes to all WEE domains. It is are able to purchase revenue from tourism ‘leaks’ processors, distributors of expected that women will have increased more of their fresh back into imports >> additional greenhouse, tunnel, income opportunities from more orders and processed food income for farmers, additional irrigation and hydroponic demanded by the hotels and resorts. stuff needs locally >> business activity and equipment, seedling Increased farming activities can affect tourists consume employment in the support producers, hotel and women’s workload which can be efficiently more local food stuff. system (in food processing etc.) resorts (food and managed through access to tools, skills, In addition, fresher and more beverage managers). unique food increases the information and other support areas along the “Fijian tourist experience”. food value chain. Increased production can provide equal job opportunities for female labourers to be employed and earn additional income. Association of Chef Hotels and resorts are able to Less leakage, which Contributes to all WEE domains. It is Cooks Fiji, Fiji purchase more of their fresh means less revenue from expected that women will have increased
Market Development Facility I 10
Constraint area
Market to be Anticipated results if markets influenced starts to work better National University and processed food stuff needs (FNU), hotel and locally >> tourists consumer resorts (food and more local food stuff. beverage managers).
Type of potential partners tourism ‘leaks’ back into imports >> additional income for farmers, additional business activity and employment in the support system (in food processing etc.). In addition, better and more unique menus increase the “Fijian tourist experience”.
(Access to) Hospitality and hotel management skills.
Hotels and resorts To be investigated if have (access to) investments would yield better-trained staff >> sufficient results tourists enjoy a better Fijian tourism experience.
Hotels and resorts, FNU, University of the South Pacific.
(Access to) More diversified and better quality supplies to the tourism sector such as local furniture and fittings.
Hotels and resorts have access to more suitable furniture and fittings >> hotels and resorts buy more of these.
better culinary skills, and awareness of use local produce and food stuff.
Special attention area “Green Fiji” / Tourist and/ or hotels Environmentally and resorts, suppliers and Socially and farmers have Responsible more options how to Business be greener and cleaner >> improves the Fijian tourism experience (Promotion of) Hotels and resorts Tourism on Vanua and/or tourists have Levu. access to Vanua Levu experiences / produce/products. Cross-cutting Poverty Cross-cutting – in principle same as above
Gender
Cross-cutting – in principle same as above
Disability
Cross-cutting –in principle same as above
Less leakage, which means less Furniture manufacturers, revenue from tourism ‘leaks’ other manufacturers, back into imports >> additional hotels and resorts. employment and business activity in the support system.
Additional employment and business activity in green and clean practices promoting industries; greener and cleaner business practices applied
Businesses that promote a greener and cleaner Fijian tourism experience
Additional employment and business activity on Vanua Levu.
Tourism businesses or supplies located on Vanua Levu (hotels, wholesalers, farmers).
Additional employment in hospitality sector, retail, handicrafts and fashion, food processing, manufacturing and around these due the growth in tourism (multiplier) Additional employment in the hospitality sector, retail handicrafts and fashion, food processing manufacturing and around these due the growth in tourism (multiplier) Opportunities identified on a case by case basis in those areas were additional employment is created
In principle same as above
Relevance to WEE ( if applicable) income opportunities from more orders of local produce demanded by the hotels and resorts. Increased farm produce and seafood sourcing can affect women’s workload which can be managed efficiently through access to tools, skills, information and other support areas along the value chain. Increased production can also provide job opportunities for female labourers and other women’s groups to be employed and earn additional income. Contributes to all WEE domains. It is expected that women will have equal opportunities to access to hospitality service skills and training. Women can advance to new job opportunities and/or promotions and earn additional income. Women involved in tourism tend to have significant control over their earned wages and thus can influence decisions made in the household. Contributes to WEE domains 1, 2, 4 and 5. It is expected that women will have additional job and income opportunities from increased demand from small to medium sized hotels and resorts. Access to skills, tools, technology and other support areas can increase women’s opportunities to provide furniture, fittings and related services such as design services. Women involved in tourism tend to have significant control over their earned wages and thus can influence decisions made in the household.
In principle same as above
In principle same as above
Market Development Facility I 11
3.2 Relevance for pro-poor growth Tourism is a major engine of growth for the Fijian economy. The tourism sector and the wider market system offer numerous employment opportunities for a Fijian population looking for alternatives to work on the sugarcane farms in traditional jobs. Also, as mentioned above, demand from the still relatively new and emerging tourism sector for a variety of goods and services (ranging from fresh produce to handicrafts to cultural activities) creates opportunities for (new) businesses to fill the gaps. The sector thus offers opportunities for the Fijian economy to diversify and create additional incomeearning possibilities for farmers, craftspeople, artists, designers, and self-employed workers and small businesses. Pro-poor results are defined and will be measured, as follows: ■
■
In intervention areas where results are defined in terms of increasing the number of tourists, extending the stay of tourists, or increasing their spending, they will be measured in terms of the additional employment created as a result of additional income from the tourism sector, calculated with the help of a multiplier. In intervention areas where results are defined in terms of additional sales into the tourism sector, they will be measured in terms of the additional income generated for SMEs (e.g. farmers, craftspeople) and additional employment creation along the value chain (on the farm, at the wholesaler), perhaps also calculated with the help of a multiplier.
Opportunities will also be identified to generate additional employment and income-earning opportunities in relatively poor and economically less developed areas, such as Vanua Levu.
3.3 Relevance for cross-cutting themes Women’s economic empowerment (WEE) The tourism sector is the most important generator of employment opportunities in Fiji after agriculture, and women make about 39% of the workforce. Tourism is thus an important avenue for Fijian women to start a professional career and take greater control over their lives. The tourism growth strategy contributes to making this avenue broader and more diverse. In addition, some supply chains feeding into hotels and resorts are particularly relevant for women, with employment opportunities in fields such as food processing, handicrafts and possibly fashion design and tailoring. Some of these supply chains are also particularly relevant for (self-employed) households who can generate additional income from additional sales to these outlets. The understanding around women’s economic empowerment is being integrated into MDF’s management cycle which addresses five thematic areas of WEE. MDF has chosen to focus on WEE as a means to contribute towards gender equality in the sectors that MDF is involved in. Mainstreaming gender through WEE into its programming to achieve integration of women rather than marginalization of women in segregated and non-commercial initiatives. The five thematic areas are summarised below and will be explained in further detail in the gender technical paper. The five thematic areas on women’s economic empowerment include:
Economic advancement – do women have access and agency? Decision making – do women have freedom and authority over household income, workload and access? Market Development Facility I 12
Workloads – can women manage additional work? Can women’s workloads be more efficient/decreased? Access to opportunities – do women have access to jobs and skills? Access to assets, services – do women have access to assets, services and other supports?
The poverty study carried out for Fiji found that women who are formally employed in the tourism sector tend to have significant control over its usage1. However this relationship was less clear for women involved in collective household income generating activities. The study also found that women were actively involved in all levels of the agricultural value chain. Thus women would be expected to benefit from any increased market access, increased supply of goods and services to hotels and resorts as well as additional farm labor employment. Women are involved a range of tourism activities as either producers and sellers of handicraft/souvenir items, suppliers of foodstuff into hotel and resort kitchens, or employed by hotels and resorts as frontline service staff or housekeeping. Thus, employment and income opportunities for these women tend to be limited by number of tourists visiting the area, and its impact on hotel occupancy rates and tourist spending in the local economy. With more tourist arrivals, it is expected that women involved in the sector would in turn benefit economically from that growth through increased casual hours worked per week or per season and thus earn additional income. Specific interventions that relate to tourist’s access to information and better linkages (transportation) to areas outside of the common tourism zones such as Vanua Levu, Taveuni and other outer islands could create such opportunities. There is already significant involvement of women in the tourist goods and services value chain, either as producers and sellers of final products and traditional items like pottery, tapa (masi), woven matsand jewelry; or as suppliers of raw materials like virgin cocoa oil, cocoa beans; to manufacturers and post-harvest handlers of goods like chocolates and beauty spa products. Women are also actively employed by service providers (inbound tour operators and activity providers) as tour desk operators, tour guides, masseurs, supervisors and in mid-level management level. Additional employment and income for these women are limited by the growth of these growth of such service providers. Removing those growth constraints can then unlock opportunities for further employment and income opportunities for women. This is also closely linked to the tourist basket of locally made goods and products that tourists will be able to purchase and enjoy wider shopping experience. Intervention partners linked to retailers and processors/manufacturers of tourist products together with locally made items like furniture and fittings in the guest rooms and buildings. The tourism sector provides an attractive alternative market for male and female farmers as hotel and resorts may pay a higher premium prices for quality foodstuff, relative to local market prices. For supply chains involving manufactured inputs such as furniture and fittings, these would largely be male dominated with a limited number of women typically involved in back office support functions.
1
Household level analysis of poverty, ethnicity and gender dynamics, Fiji” MDF, 2013.
Market Development Facility I 13
Environmentally and Socially Responsible Business: “Green Fiji” In tourism (and its related support services and industries) there are potential opportunities to introduce best business practices, both to contribute to the image of Fiji as a South Pacific ‘paradise’ and to help reduce the tourism carbon footprint. This would be positive for the industry from a marketing point of view, and good for the environment. Ways to help businesses to begin could include encouraging the use of renewable energy, and making efforts to ensure that resorts and restaurants enforce a code of conduct that prevents them, for example, from buying underage or endangered animals. There may also be opportunities to introduce better working conditions in certain industries. Using unsound sources (of raw materials and labour, for example) poses a reputational risk for the industry and affects those directly exposed. There may be room to encourage the growth of volunteer tourism ventures which involve community-based development work as part of the tourist experience. These include tourist homestays in villages and communities participating in the volunteer programme while the visitor participates in community-related infrastructural development projects. This brings in additional income from the homestay fees and provides the benefit of new infrastructure (such as toilets, community halls, bridges) for community members.
Disability Potential to create opportunities for those with a disability appears limited. Where feasible, MDF will support this.
Market Development Facility I 14
ANNEX 1 List of available crops and crops with potential in Fiji
Market Development Facility I 15
Annex 1 Item
Local
Local Exotic
Wish list
Comment
Lettuce and greens Moca/churriya Khatta bhaji /rosella Ota Cress Watercress
Supply issues
Iceberg lettuce Corals Mustard Rocket/arugula Cos/romaine lettuce Baby cos
Currently imported
Spinach, English) Spinach, baby Mesculin Chard Radiccio Endive Herbs Lemon grass Coriander Thai coriander Curry leaves Basil
More varieties needed
Thyme
Supply issues
Parsley (flat leaf)
Supply issues
Dill
Supply issues
Kaffir lime Lemon balm Thyme Rosemary Tarragon Micro herbs Edible flowers Thai basil Spearmint Chervil Verbena Chives/garlic chives Borage (white and blue) Thai mint Lemon thyme Market Development Facility I 16
Item
Local
Local Exotic
Wish list
Comment
Root crops Dalo
Limited menu appeal
Cassava
Limited menu appeal
Kumala
Limited quality
Pumpkin
Different varieties (butternut, royal blue, crown) needed
Ginger Spring onions
Limited Kumala purple flesh Kumala gold flesh Baby Potato Large potato (sutiable for frying) Large (suitable mashing)
potato for
Carrot, large Carrot, baby
A variety desirable
of
colours
Onions Onions, white Onions, red Onion, shallot Garlic Beetroot
Different varieties needed
Jerusalem artichoke
Sunchoke
Vegetables Avocado
More varieties and better supply needed
Beans long Cabbage (English) Cabbage (choi sum) Cabbage (bokchoy) Cucumber (telegraph)
Quality varies
Cucumber (Lebanese)
Quality varies
Chilli (green, red, banana, ancho)
Larger and more variety needed
Cow peas Eggplant
More variety needed
Radish (white) Tomato
Quality varies
Okra Duruka
Quality varies Market Development Facility I 17
mild
Item
Local
Local Exotic
Wish list
Comment
Capsicum (green) Cauliflower Sweetcorn Broccoli
Inconsistent supply
Zucchini Specialty, grower
Zucchini, flowers
direct
from
Leeks Parsnip Radish (red) Capsicum, (red) Capsicum (various) Celery Butter beans Asparagus Artichoke Tomato (cherry) Tomato (roma) Tomato (yellow) Squash (baby) Snow peas Snow pea shoots Fennel Mushroom
Various varieties (e.g. field, enoki, portobello) needed
Cabbage, savoy Peas, sugar snap Fruits Amara Banana
By variety
Coconut Coconut flower
Difficult to cultivate
Custard apple Guava Jackfruit Lemon
Cultiavation is inconsistent
Lime leaf Limes
Cultivation is inconsistent
Mandarin Mango
By variety and pulp
Orange
Harvest is inconsistent
Passionfruit Pawpaw Pineapple Sapote
Harvest is inconsistent
Soursop
Inconsistent Market Development Facility I 18
Item
Local
Local Exotic
Wish list
Comment
Starfruit
Inconsistent
Water melon Kumquat Mud apple (chikoo)
Grows, but treated as weed Cape gooseberry Grapefruit Rambutan Apples Berries, various Rambutan
Grows, but no supply
Plums Lychee Grapes
,
Dragon fruit Pomegranate Spices Vanilla Nutmeg Mace Green peppercorn Cinnamon Coriander seed Tamarind Cardamom Galangal Sesame seed Star anise
Market Development Facility I 19
ANNEX 3 Volume of fruits and vegetables imported for hotels and resorts (based on 2010 import data)
Market Development Facility I 20
Annex 2 Food products
Volume of import (kg)
Value of import
Meats
150,685
1,532,548
Fresh or frozen pork
26,262
198,730
Fresh or frozen lamb
4,520
40,442
1827636.25
11290313
2,009,103
13,062,033
103
3,741
5,789
33,951
Cucumber and gherkin, prepared/preserved
349,899
619,028
Pineapple juice
909,532
1,692,982
Tomato, prepared/preserved
61,255
97,325
Tomato juice
251,172
592,716
Tomato ketchup and other tomato sauce
146,230
339,519
Ginger, preserved in brine
423
4,257
Asparagus, prepared/preserved
707
11,608
1,479,361
2,764,716
Goat meat Fresh or frozen meat of bovine animals Total Meats Vegetables and fruits Passion fruit, preserved
Strawberries, prepared/preserved
Market Development Facility I 21
ANNEX 3 Volumes and value of meat and processed food inported into Fiji (based on 2010 imported data
Market Development Facility I 31
Annex 3 Vegetables and fruits
Volume for hotels and resorts (kg)
Value of imports by hotels and resorts (FJD)
Potato
7,336,993
6,789,840
Tomato
372,753
722,145
Onion
2,757,503
3,030,983
Broccoli
29,188
117,621
Lettuce
80,150
413,248
Carrot
30,602
749,640
Asparagus, fresh/chilled
1,588
26,743
Celery
105,025
244,176
Capsicum
30,992
175,939
Other melons*
20,605
111,130
Strawberries, fresh or frozen
4,627
30,890
Total vegetables and fruits
11,672,677
12,429,624
Approximations based on 35% of imports for resort use
Market Development Facility I 31