Enabling an Economy, one socially responsible sojourn at a time

Mozambique in focus: Forward Facing Frontier Economy

According to the most recent World Bank country report [1] recent phenomenal economic evolution has earned Mozambique the title of one of Africa’s leading “ Frontier economies”. Recent infrastructural reform, increasingly stable political and macroeconomic management, and significant FDI in energy and natural resources have all influenced this economic progress. Despite the reports economically empowering evidence of growth in certain sector, a number of the governments key development challenges did not meet development targets and therefore do not provide inclusive growth for those most in need. This article hopes to highlight some of these key development challenges and provide solutions that will have wider pay back across sectors and across vulnerable minorities (women, children and disabled individuals). These challenges include:

• Reduction in poverty levels
• Enhanced provision of public services (education, health)
• Promote greater citizen participation in economic development via transparent accountable systems
• Accelerate climate reform and environmentally responsible projects

These challenges are substantial and require sustainable, responsible solutions that carry over across sectors and industries and have wide reaching economic benefits. In this years Doing Business Report, [2]the World Bank documents that Mozambique’s ranking has dropped from 139^th to 146^th out of 185 global economies. This report outlines the bureaucratic and legal obstacles facing entrepreneurs considering a small to medium enterprise start up and can be applied to both foreign and domestic investment. So clearly much is to be done to raise foreign investor confidence but also to inspire local Mozambique moguls to consider businesses that will contribute to and not detract from inclusive growth and socially responsible change.

Finding sustainable solutions to these colossal challenges is a daunting consideration. When we view these development challenges under the lens of different industries, there appears to be a standout industry that could provide some relief and positive change. That industry is Tourism.

Despite myths that tourism pillages from the local economy and takes more than it has the potential to return, a report from the World Tourism Organisation in 2004[3] argues that it does in fact offer considerable growth opportunities for countries ravaged by war and poverty. It has the potential to create demand for other products and services including building materials, design and architecture, bars and restaurants, tour guides and reviving local artisan trades.

It is accessible to poor minorities particularly accessible to women and youth and can provide part time supplemental income. As many roles require little training and small initial investment, small and micro enterprises have limited barriers to entry. The tourism supply chain connects the tourist with the producer and this can bring about incorporeal benefits as those tourists become acutely aware of ethical adventuring and their carbon footprint. The subsequent discourse will analyse successful responsible tourism projects that could be applied to each of the aforementioned development challenges.

Eco-tourism and Ethics

An admirable mission of any eco-tourism outfit should be to foster and promote conservation, even more visionary are companies that take the message to local communities and educate them and involve them in a tourism enterprise so they can see the value of preserving the local environment whilst making money with morals. Rainforest Expeditions are one such company proving that public private partnerships can provide sustainable eco tourism solutions that are profitable and meet social development goals faster than NGO’s or governments. An article in the Economist [4]entitled “Rumble in the Jungle” richly illustrates just how they achieved a winning blend between capitalism and conservation.

The Economist describes how Peru is experiencing an eco –tourism boom because of the wealth of natural resources in this case the Amazon National Park (not dissimilar to Kruger, and others on Mozambique’s doorstep). Posada Amazonas is a 30 bed eco lodge, run by Rainforest Expeditions, a not for profit (NFP) company that is working with the indigenous locals of the Infierno community this arrangement incorporates many principles of Responsible Tourism and include:

• Share decision making with an elected committee comprised of company reps
• Community receive 60% of company profits
• Rainforest Expeditions staff are in the process of training the Infierno locals with the ultimate objective or returning the operation to them by 2016

The Economist reports that Infierno’s literacy, nutrition and healthcare levels have all increased and the surrounding forest remains unspoilt, as locals rely less on hunting and think more about wider reaching implications of their lifestyle on the environment. Rainforest Expeditions are proof that principled profits can be achieved, the arrangement has improved the companies bottom line but not at the expense of the local environment or community.

Such projects are well aligned with and conducive to the Mozambique development goal of accelerating climate reform. Mozambique is blessed with magnificent unspoilt coastal resources and wildlife reserves and friendly communities. Because Tourism industry in Mozambique is still in the re-building phase, there is even greater opportunity than ever to do things right the second time with eco tourism and social responsibility principles at the forefront of redevelopment.

A value chain analysis of Tourism in Mozambique was undertaken by the Foreign Investment Advisory Service (FIAS) which is a joint facility of the International Finance Corporation and the World Bank. This report [5] is an excellent source on value added public and private tourism products and services with benchmarking, risk analysis and action plans. It identified the following:

• Lack of collaboration between foreign and Mozambican tourism operators
• Poor promotion of Mozambique to the global tourism market
• Little interaction with locals and their culture
• Poor skills within the tourism industry overall
• Limited availability of subsequent services eg entertainment, handicrafts

Solutions then must include further private sector input assisting with strategic government tourism initiatives which could include: increased marketing, event management, and training via Technical and Vocational Education Programs TVET. The report made it patently clear that there was no organized approach in place for a tourism education development program.  Which leads us to a key topic of training, that meets a number of development goals, that of enhancing public services in this case education and meeting the needs of the most vulnerable minorities; the poor, illiterate, disabled and those who qualify for vocational training.

For the local community to become part of the tourism value chain this issue must be addressed by local initiatives with government support as currently foreign operators and resorts are providing these services in addition to their core business of hospitality.

Currently the market services the high end intrepid traveller with luxury accommodation products and such discerning customers are well educated and value online access to information, seek unique intrepid experiences or authentic cultural immersion in their choice of locale.

The key to success in current tourism market, is recognising the benefits of online mediums to engage with your consumer and build goodwill. A positive review on holiday rating websites can have just as much promotional power as a sophisticated advertising campaign. Consumers source services from businesses that interact with them online, whether that be via a blog, responding quickly to emails and promote transparency and accountability in the way they do business. It is therefore essential that budding tourism investors ensure their relationship with local communities is one they can promote with pride as a sustainable and responsible one.

To stand out from the crowd your SME start up must differentiate itself as it is the only way to attract attention. Established brand name operators are often chosen based on their reputation or simple brand recognition, conversely consumers are increasingly disillusioned with the power of the brand and seek a boutique experience with more personalised service. In addition many travellers after overindulging in sun sand and seafood, seek a holiday package that allows them to give back, this is evident in volunteering books published by big name tourism guides like Lonely planet and Frommers [6]filled to the brim with opportunities that allow tourists to volunteer for worthy causes.

People will pay for such an experience but they want to be reassured the time and money will be well spent on something authentic, well organised and to ensure the bulk of their money is going towards their charity of choice not paying for administration. There is a huge opportunity for NFP’s or private SME start-ups to act as socially responsible bespoke travel consultants or the marketing /business development link between the fair trade traveller and the charity. Examples of local Mozambique charities and potential volunteer experiences might include:

• Bespoke tourism consultant who provides fair trade tourism packages that arrange accommodation in ethically minded local eco lodges, that end with the guest touring a local special needs school and purchasing their art work
• Tour guides that specialises in walking tours of the local area, reducing the carbon footprint and engaging with local communities by helping out at animal refuges, health care clinics or disabled riding schools
• An arrangement with travel agencies who come for trade missions to participate in a knowledge exchange whereby after experiencing the local tourism offering provide pro-bono training in a local tourism training programme in poor communities.

The Triple Bottom Line trend espoused by Elkington in 1997 [7]has shown no signs of waning, consumers continue to choose products and services based on their environmental or social performance, their reputation and transparency. Analysis of successful examples of Triple Bottom Line Tourism across NFP, Government and private sector are summarised below:

The Power of One

Any successful enterprise needs to be communicated or promoted on some level to attain a following. Entrapreneurs with limited resources should taken advatange of free or inexpensive marketing opportunities via social media or setting up a free blog. Often stories via social media about individuals who truly inspire can reap lasting rewards and raise greater awareness than expensive multimedia marketing campaigns.

I first learnt about Haider Taleb via a medical colleague who highlighted his crusade on facebook and felt compelled to get in touch and follow his journey. You can learn more about Haiders inspirational journey on his website www.bewithhaider.com . Haider is a 47 year old Emirati man, engineering and alternative energy enthusiast, world record holder and wheelchair bound from the age of four. Acquiring polio when he was young has never deterred Haider from his achieving his dreams, on the 2^nd of November in 2010, he completed a 200 mile long journey across all seven emirates in a self built solar powered wheelchair. The most significant thing about his story was that he raised awareness of so many worthy causes by completing a single journey. These included, green energy (in a country not known for its clean energy resources ) , empowering people with disabilities, and lastly he unintentionally raised the profile of his home nation from a tourism perspective travelling across all seven emirates and showed the UAE in a tolerant light supporting conservation efforts and supporting special needs entrepreneurs. In Haiders own words, [13]  “ Given the chance, persons with disabilities can perform miracles”.

Responsible Tourism Accessible to All

Mozambique is considered more enlightened than its sub Saharan neighbours when it comes to recognising the rights of its Disabled population but the divide between policy and practise continues to widen with a lack of resources and education as the main offenders with a strong correlation between disability and poverty.[14] UNWTO Global code of ethics for tourism [15]states that tourism should promote universal access for the most vulnerable groups, including the disabled, ethnic minorities and children. In 2002 the South Africa Tourism association created the Universal Accessibility in Tourism Declaration [16]where organisations in both public and private sector should:

• Support disabled individuals to acquiring training and employment in the industry
• Consulting to firms who are involved with designing infrastructure, training institutions and hotels airlines on how to include disabled people and make their businesses more disabled friendly
• Report and share information on disabled friendly tourism schemes.

Tackling the substantial challenges of confronting tourism multi nationals on their accessibility standards appears a daunting objective for any business let alone a micro firm or small enterprise but potential business ventures might include[17] :

• Manufacturing and installing braille signs and audio signs sites of tourism significance
• Manufacturing ramps for hotels and rails for bathrooms
• Acting as an Accessible Tourism consultant educating local enterprises and hotels on how to alter their practises and increase market share of accessible tourism business

Moving forward with holistic focused strategy

Mozambiques Ministry of Tourism now has a Strategic Plan and new basic framework Tourism Law in place to guide the development of economically sustainable tourism under a conservation lens. [18]The strategic plan included a demand study identifying emerging markets and trends and it is palpably clear that the consumer is seeking eco tourism, luxury accommodation, wildlife and cultural products. Inadequate industry training is a considerable barrier but also provides opportunities for foreign direct investment (FDI) and successful ventures have been documented of working with indigenous communities with sound triple bottom line success. The report estimates that 70% of Tourism projects have been funded by FDI given the lack of local capital, which is worrying given the dire need for organic institutional change across the industry to help bridge the gap between practise and policy. Although mostly smaller scale bespoke tourism products have been discussed here, the report asserts that larger projects that can realise economies of scope, scale and costs are required to boost the industry and provide mass employment and remain competitive. Neighbours like South Africa who offer a more cost competitive product and have made greater strides in the fair trade tourism world surround Mozambique. The key themes identified appear to be accessibility and accountability, the consumer desires exceptional experiences as long as they feel the Tourism industry and countries government are genuinely trying to conserve natural resources including anti-poaching, proper conservation wildlife reserves and educating local communities in sustainable agricultural practises. The myths about Tourism globally are being exposed but Mozambique has considerable development challenges to face , tourism could provide solutions to a number of these challenges if fair trade tourism is truly embraced.

Bibliograhy