Agri-tourism linkages in jamaica: case study of the negril tourism industry

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Agri-tourism linkages in jamaica: case study of the negril tourism industry

  1. 1. Kevon Rhiney Department of Geography & Geology, The Faculty of Pure and Applied Sciences, University of the West Indies, Mona. AGRI-TOURISM LINKAGES IN JAMAICA: CASE STUDY OF THE NEGRIL TOURISM INDUSTRY Presented to the International Centre for Tropical Agriculture (CIAT) Cali, Colombia Tuesday May 31, 2011
  2. 2. <ul><li>Introduction: </li></ul><ul><li>Research design </li></ul><ul><li>Key research findings </li></ul><ul><li>Conclusions </li></ul><ul><li>Future research </li></ul>Presentation Outline
  3. 3. <ul><li>Tourism development in the Caribbean was premised on its ability to generate much needed foreign exchange, attract foreign direct investment, provide employment and stimulate other sectors of the local economy – particularly, agriculture. </li></ul><ul><li>Limited current academic research on the topic in the Caribbean (Torres, 2002; Potter, 2004; Timms, 2006); last major study conducted by Belisle in Jamaica in the early 1980s (Belisle 1980, 1982, 1983, 1984). </li></ul><ul><li>Mixed claims surrounding the current nature and strength of market linkages between the two sectors (Momsen, 1998; Potter, 2004; Pattullo, 2005; Hayle, 2005; Ramjee-Singh, 2006). </li></ul>Research Problem
  4. 4. <ul><ul><li>Tourism has experienced phenomenal growth over the past decade </li></ul></ul><ul><ul><ul><li>Services account for > 60% of GDP in 2010 (cf. 10% for tourism) </li></ul></ul></ul><ul><ul><ul><li>Totalled 2.8 million visitors in 2008, generating some US$1.98 billion in gross visitor expenditure (PIOJ) </li></ul></ul></ul><ul><ul><ul><li>Leakage rates range from 40 to 60% (Pattullo, 2005; Ramjeesingh, 2006; Karagiannis, 2008) </li></ul></ul></ul><ul><ul><li>Struggling agriculture sector </li></ul></ul><ul><ul><ul><li>Between 1998 and 2008 Jamaica’s food import bill increased from US$466.6 million to US$886 million </li></ul></ul></ul><ul><ul><ul><li>The problem is two-fold and highly complex </li></ul></ul></ul>Research Problem cont’d
  5. 5. <ul><li>Rationale for choosing Negril </li></ul><ul><ul><li>One of Jamaica’s largest resort towns </li></ul></ul><ul><ul><li>No established produce market </li></ul></ul><ul><ul><li>Proximity to farming areas </li></ul></ul><ul><ul><li>Relatively small in area size </li></ul></ul><ul><ul><li>Renowned for its eclectic mix of hotels </li></ul></ul>Location and Description of Study Area
  6. 6. <ul><li>Rationale for choosing Negril </li></ul><ul><ul><li>One of Jamaica’s largest resort towns </li></ul></ul><ul><ul><li>Relatively small in area size </li></ul></ul><ul><ul><li>No established produce market </li></ul></ul><ul><ul><li>Renowned for its eclectic mix of hotels </li></ul></ul><ul><ul><li>Proximity to farming areas </li></ul></ul>Location and Description of Study Area
  7. 7. <ul><li>DEMAND SIDE </li></ul><ul><li>To identify the geographical sources of local food used by hotels and restaurants located in Negril. </li></ul><ul><li>To identify the limitations as well as opportunities that exist in linking tourists’ food demand with local food production.  </li></ul><ul><li>To examine whether establishment characteristics such as size, cost, mode of operation and ownership affect the likelihood of hotels and restaurants utilising locally grown produce. </li></ul>Research objectives (i)
  8. 8. <ul><li>SUPPLY SIDE </li></ul><ul><li>To identify the physical, socio-economic and spatial constraints faced by local farmers in meeting the demand of the Jamaican tourism industry. </li></ul><ul><li>To identify the general reasons why small farmers opt to venture into supplying food to the tourism market. </li></ul><ul><li>To identify and explain the factors shaping farmers’ decision-making, especially with regard to the choice of crops grown. </li></ul>Research objectives (ii)
  9. 9. <ul><li>MARKETING </li></ul><ul><li>To develop a typology of the different types of food supply arrangements existing between Negril tourists food proprietors and local food suppliers. </li></ul><ul><li>  </li></ul><ul><li>To evaluate the relative benefits and drawbacks of each type of arrangement in meeting the needs of both sectors. </li></ul><ul><li>  </li></ul><ul><li>To recommend new ways of improving the link between Jamaica’s tourism and agriculture industries against the background of an emerging global economy. </li></ul>Research objectives (iii)
  10. 10. Contextual Framework
  11. 11. Research Design
  12. 12. <ul><li>Local foods were being sourced from a large number of farming communities spanning the entire island. </li></ul>Key Findings
  13. 13. <ul><li>Limitations with outsourcing local produce </li></ul><ul><ul><li>Inconsistencies in the supply, pricing and quality of local food items </li></ul></ul><ul><ul><li>Seasonality </li></ul></ul><ul><ul><li>Improper packaging </li></ul></ul><ul><ul><li>Supplier related problems </li></ul></ul><ul><ul><li>Lack of communication </li></ul></ul>Key Findings
  14. 14. <ul><li>Major production constraints </li></ul><ul><ul><li>Agro-ecological limitations (hurricanes, droughts, bushfires etc.) </li></ul></ul><ul><ul><li>Deficiencies in the domestic cropping system (lack of co-ordination, high fragmentation, size of farm holdings, poor economies of scale etc.) </li></ul></ul><ul><ul><li>Infrastructural and technological deficiencies </li></ul></ul>Key Findings
  15. 15. <ul><li>Typology of agri-tourism linkages </li></ul><ul><ul><li>Local purveyors/middlemen; </li></ul></ul><ul><ul><li>Small retailers and supermarkets; </li></ul></ul><ul><ul><li>Large wholesalers; </li></ul></ul><ul><ul><li>Market vendors; </li></ul></ul><ul><ul><li>Farmers’ cooperatives; </li></ul></ul><ul><ul><li>Self-supply, and; </li></ul></ul><ul><ul><li>Contract with individual farmers. </li></ul></ul><ul><li>Purveyors and Farmers’ groups being major suppliers of local agricultural produce </li></ul>Key Findings
  16. 16. <ul><li>Nature of the purveyor-marketing system </li></ul><ul><ul><li>Extensive; complex; highly competitive </li></ul></ul><ul><ul><li>Price-driven; Informal (verbal agreements) </li></ul></ul><ul><ul><li>Flexible short-term co-ordination </li></ul></ul>Key Findings
  17. 17. <ul><li>Major marketing constraints </li></ul><ul><ul><li>Limited communication between key stakeholders </li></ul></ul><ul><ul><li>Lengthy payment periods (up to 3 months) </li></ul></ul><ul><ul><li>Mismatch between supply and demand </li></ul></ul><ul><ul><li>Exploitation of farmers by local intermediaries (purveyors) </li></ul></ul><ul><ul><li>“ it’s almost like them [purveyors] put a gun to your head” </li></ul></ul><ul><ul><li>[Interview with Farmer, Flagaman (2006)] </li></ul></ul><ul><ul><li>“ If you as a farmer start complain, them [suppliers] just stop doing business with you and start doing business with someone else. Now the crops you have in the field either them spoil or you end up going to the coronation market where the produce end up selling for little or nothing”. </li></ul></ul><ul><ul><li>[Interview with Farmer, Southfield (2006)] </li></ul></ul>Key Findings
  18. 18. <ul><li>Case study of two agricultural co-operatives </li></ul><ul><ul><li>Douglas Castle Group (est. 1996) and Santoy Vegetables Co-operative Limited (est. 1998) </li></ul></ul><ul><ul><li>Sandals Farmers’ Programme </li></ul></ul>Similarities: - Low capital and resource base - High input costs - Agro-ecological limitations Differences: - Leadership - Institutional capacity - Social capital
  19. 19. <ul><li>Reason’s for Santoy’s Success: </li></ul><ul><ul><li>The group’s leadership and institutional capacity </li></ul></ul><ul><ul><li>Strong Social capital (cohesion); group is operated by its own members who live in and around surrounding communities </li></ul></ul><ul><ul><li>Effective mobilization of financial and technical assistance </li></ul></ul>2006 2009
  20. 20. <ul><li>Reason’s for Douglas Castle Failure: </li></ul><ul><ul><li>Supply-related constraints (water shortages, natural hazards, improper packaging and poor food quality etc.); </li></ul></ul><ul><ul><li>Demand-related problems (inconsistent purchasing; lengthy payment period), and; </li></ul></ul><ul><ul><li>Marketing-related problems (manipulation by purveyors, poor leadership and distrust, poor communication) </li></ul></ul>
  21. 21. <ul><li>Key Conclusions </li></ul><ul><li>Agri-tourism linkages in Jamaica while more complex and extensive, remain weak and unplanned </li></ul><ul><li>Processes of globalisation and trade liberalism have impacted both industries differently </li></ul><ul><li>Overhauling of the two sectors to better complement each other as well as the forging of strategic partnerships between the various stakeholders and interest groups. </li></ul>Conclusions
  22. 22. <ul><li>Expanding the study to other resort towns </li></ul><ul><li>Expanding the scope of the study to include a wider range of food items (e.g. Meats, beverages, processed foods etc.) </li></ul><ul><li>Further focus on the linkage chains themselves (particularly the role and potential of farmers’ associations) </li></ul><ul><li>Exploring alternative business models (e.g. Social Intermediary) </li></ul><ul><li>The implications of Climate Change </li></ul>Future research
  23. 23. Kevon Rhiney Department of Geography & Geology, The Faculty of Pure and Applied Sciences, University of the West Indies, Mona. AGRI-TOURISM LINKAGES IN JAMAICA: CASE STUDY OF THE NEGRIL TOURISM INDUSTRY Presented to the International Centre for Tropical Agriculture (CIAT) Cali, Colombia Tuesday May 31, 2011

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