World class ecotourism architecture with local materialsIn the Amazonas, very unique for species, plants, environment Coming from a local biological research projectThere is a system of turn over for local employees in order for the whole comnumity to benefit from the revenues of the lodge.
What is Posadas Amazonas Type: Nature Oriented Lodge Where: Located in Peruvian jungle Business model: Partnership between Ecotourism company RFE and Native Community of Ese’ejas Social impact: Educational development program (autonomy in 2011)
Benefits for the community Employment opportunity Skills acquisition Improved standard of living Environmental education Retain youth of the community Develop community governance Improve morale through international recognition
The questions What to do about the community Role in community’s internal conflicts Convenient partnership? Reduce turnover/pool problems and improve service quality Managing suppliers and airlines
Current problems Internal • Access to employment poolconflicts in the • Relationships between Natives and Mestizos community • High turnover Limited • Lack of responsibility productivity • Limited pool of qualified personnel • No performance benchmark Unreliable • Unreliable airline service external • Limited supply under legal forms services
Improvement strategy Create incentives (rules, rewards, training) to increase our partners’ (community, suppliers) commitment, performance and responsibility
Current problems Internal • Access to employment poolconflicts in the • Trigger the commitment of • Relationships between Natives and Mestizos community the Management • Introduce performance • High turnover Limited Partnerships with other • rewards • Lack of responsibility and merit-based productivity lodges • Limited pool of qualified personnel pool access to the work • No performance benchmark •• Partnership withwith airlines Tour packages government (Transition to legal market) Unreliable external • Involve local authorities • Unreliable airline service • Limited Suppliers legal forms • supply under education program services (subsidizing, regulations of air (transport, promotion of Coaching for legal invoicing) ecotourism)
Steps Generate awareness in the community Negotiate with Set performance Airlines thresholds Develop Lodge syndicate Foster Train suppliers competition Make contact with authorities
Risks Interfere in internal conflicts of the community Failureto buy in the community for new performance standards
Mitigation principles Maintain incentives external (we don’t interfere in the internal problems) Buy in the management committee by showing them the business criticality Empower the management committee and transfer HR responsibility to them
Take-aways Having the right incentives Empower the community Train employees and suppliers Build an alliance (lodges) to increase bargaining power with suppliers (airlines) Involve local authorities to improve business environment Questions?
Posada Amazonas Balanced Scorecard Strategic Themes Strategic Objectives Strategic Measures Profitability Profitable at lodge level • Increase occupancy rates • Repayment of debt Financial Profits reinvested in community • Reinvestment in company development • Control marketing expenses • Market premium Delight the Customer with an Best in class experience (service, expeditions, • Service Quality Survey Customer initiation to jungle experience entertainment, etc) • Turnover rate • Loyalty (RFE) Learn how partnership between private Transfer skills to locals • Quality Survey companies and native communities Service Quality • Low Turnover rate works Constant Supply of products Internal • Involvement of the Management Community satisfaction Community commitment to take over committee responsibilities • Emergence of leaders Employment rates • Successful transition Higher income in the community # of jobs offered Less migration • Income and Levels of Nutrition • # of people in the community Be recognized as the leaders in this Maintain high turnover rates of • Quality of services segment in Peru and Internationally among this segment customer • Uniqueness of experienceLearning Autonomy of the community Transfer skills and responsibilities Maintain training frequencyGrowth Transfer training ability to the community Increase # of rained managers&