Sir Ronald Sanders is a business executive and former Caribbean diplomat who publishes widely on Small States in the global community. Reponses to: ronaldsanders29@hotmail.com

Tourism is now a huge contributor to the economies of all Caribbean countries and the biggest contributor to many of them such as Antigua and Barbuda, the Bahamas and the British Virgin Islands. Over the next few years the industry is expected to play an even larger role replacing agriculture in many countries.

The World Travel and Tourism Council reports that in 2004, travel and tourism contributed 14.8% of the Caribbean’s GDP and 2.4 million jobs, representing 15.5% of total employment.

Over the next ten years, the contribution to both GDP and employment is expected to rise even more. But, the danger exists that, if research and development is not undertaken to strengthen the industry and spread its benefits more widely, it will not deliver the sustainable development its advocates predict.

There are several pressing problems associated with Caribbean tourism.

One of the most important is the racial divide between its ownership and management on the one hand, and its workers on the other. And, this problem is likely to worsen in the future unless it is tackled now.

Given the size of financial investments that will be required for resorts in the Caribbean, it will be principally white expatriate companies with access to capital that will build and own the resorts and other aspects of the tourism business.

Tourism may, in fact, become a ‘plantation industry’, not dissimilar to the old sugar plantations with absentee owners, expatriate managers, profits repatriated abroad and locals relegated to wage earners only.

And, not unlike the ‘plantation’ system, if the disparity of benefits grows between foreign owners and indigenous labour, revolts may occur starting with industrial unrest but expanding to other forms of social instability.

The notion of a racial divide in the industry is a problem that dare not speak its name. It creates discomfort amongst many of the expatriate hotel owners and managers, and governments are fearful of dealing with it.

Yet, it will not go away. And, if World Trade Organisation (WTO) rules continue to develop in the way that they are, companies from developed countries will have the right of establishment in the service industries in developing countries, including the Caribbean, almost on demand. Thus, the obvious racial divide between the owners and the workers in the tourist industry - and the unevenness of the benefits – will intensify.

To pretend that the problem does not exist would be as unwise for hoteliers as it would be imprudent for governments.

Policies should be put in place to ensure that the benefits of tourism are spread widely throughout Caribbean communities, not only in providing jobs but more importantly in facilitating ownership.

But such policies should be guided by research conducted by a Tourism Research and Development Institute which resides in the University of the West Indies and has relationships with other Universities in the Region such as the University of Guyana, the University of Puerto Rico and the University of the US Virgin Islands.

The Institute should be funded by governments, the Caribbean Hotel Association and other private sector organisations in the area.

It is in the interest of the wider private sector to support such an Institute, for, if tourism is the engine of economic growth in the Region, then almost every enterprise in the private sector is dependant upon it to some extent.

There are several other issues in tourism development that require research. Constraints of space do not permit a full list of the other problems or a discussion of each of them. Suffice, therefore, to identify a few.

There is a marked absence of scientific research in the markets from which tourists come. The entire Caribbean has long suffered from poor economic and marketing-related research and forecasting.

With the exception of a few countries of which the Bahamas is pre-eminent, Caribbean countries also suffer from inadequate funding for marketing and promotion. But, because the tourist boards are advised by public relations and marketing firms in London, New York and elsewhere such monies as are dedicated to tourism are spent on promotion, not on research.

Yet, it is a truism that no product can be marketed beneficially in a highly competitive world without market research. To do so is akin to shooting in the dark.

A further problem is the balance of the relationship between land-based tourism and cruise ship tourism. Increasingly, governments are being encouraged to spend tax dollars on infrastructure for cruise ships. This has spurred the contention from hoteliers that this is misplaced expenditure since the benefits of cruise tourism do not justify its costs.

Hoteliers argue that governments should improve and expand airports, modernise utilities to reduce costs for electricity and water, and create the environment for developing new attractions.

In the absence of studies that scientifically examine the contending positions and quantify their benefits or losses over a spectrum of considerations, government allocation of scarce resources has been based on hunches and political pressure.

The same observation holds good for ‘all-inclusive’ holidays in which hotels trap visitors within their compounds. Should governments continue to use taxpayers’ money to build airports – and in some cases to subsidise flights by foreign airlines – simply to supply a few hotels with captive guests while restaurants, shops, arts and crafts centres, and street vendors outside the hotels see no benefit at all?

It is very unlikely that any government will adopt a policy of no ‘all inclusive’ hotels, unless all governments do it simultaneously. And, governments are most unlikely to take such action unless they can justify it by hard facts and figures - the kind of job a Research and Development Institute can do.

The Caribbean has also talked about “backward and forward linkages” to the tourism industry for almost two decades without acting in a serious way to integrate Caribbean agricultural production, manufacturing and services with the tourism industry.

Much of the food consumed by the tourist industry is still imported from outside the region as are manufactured products and services.

A Caribbean Tourism Research and Development Institute could provide the scientific studies and plans to turn two decades of talk into action.

One thing is certain: if there is not serious research and development of the tourism industry, it may continue to contribute to Caribbean economic growth and development, but not for long.