Tourism Industry In Grenada Tourism Essay

Tourism being the universes largest and fastest turning industry, has survived many epochs for many grounds. The industry is diverse and really easy adaptable. Diverse in this sense refers to the many varying sections doing up the touristry industry, for illustration cordial reception, dining, amusement and travel. This industry is besides disputing, from the point of position that each and every experience within this industry is unambiguously different. These are some of the characteristics that maintains and sustains this diverse and yet unambiguously disputing industry. Tourism harmonizing to side shop is the travel of anyone for preponderantly recreational or leisure intents or the proviso of services to back up this leisure travel ( side shop, 2009 ) . The World Tourism Organization defines tourers as people who “ travel to and remain in topographic points outside their usual environment for non more than one back-to-back twelvemonth for leisure, concern and other intents non related to the exercising of an activity remunerated from within the topographic point visited ” ( WTO, 2010 ) .

Tourism in Grenada went through many epoch ‘s before making the degree at which it is today. One can fundamentally state that there are three typical periods that touristry in Grenada passed through. These phases are the pre-revolutionary phase from 1955 to 1979, the radical stage from 1980 to 1983 and the bing epoch which started in 1984. Each of these periods is marked with the happening of a major event in Grenada ‘s history.

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The edifice of the St. George ‘s wharf in 1939 and the gap of the Pearls Airport together presented a demand for basic infra-structure that contributed to the debut of touristry in a “ scientific mode ” to Grenada. However, there are merely records to demo the storage of visitants from 1955.

The effort of the Grenada Revolution in 1979 did n’t make good for Grenada as a finish. There was a sudden bead in reachings from customary markets due to the negative promotion that was bestowed on Grenada as a consequence of these patterns. However, there was a bold move by the so Prime Minister, Maurice Bishop, who implored subjects abroad to “ Come to Grenada and see the positive alterations that are go oning ” . This proved a success in some manner as there were reachings of subjects and “ sympathisers from Eastern Europe and Cuba.

The large chance for touristry in Grenada came at the start of its 3rd era, which was marked by the gap of the trade name new international airdrome. The fact that the airdrome was really near to universe celebrated Grand Anse beach and other environing beaches resulted in a edifice roar. Unmistakably, this 3rd phase of the development of touristry in Grenada concurred with the outgrowth of the industry internationally and Grenada has been come oning invariably as a tourer finish of all time since.

The touristry industry is soon the largest industry in Grenada, in despair to prolong itself the functionaries are prosecuting in legion schemes to make so. Grenada, every bit late as 15 old ages ago, depended entirely on Agriculture as their beginning of gross, which was easy worsening. The functionaries responsible saw the potency of the touristry industry decided to alter their focal point off from agribusiness. Therefore puting money and ample clip into the industry was their concluding determination. In this research my exclusive purpose is to associate the present planetary economic recession to Grenada ‘s touristry sector. Determine the countries that were affected as a consequence of this crisis. Besides examine similar states confronting this crisis, so as to cut down the prejudice on the paper.

The touristry industry was affected by the Global recession in many ways which resulted in alteration in the state ‘s economic system and industries linked to the touristry industry viz. ; loss of occupations, diminution in travel both land and sea, closing of major tourer based concerns and increased offense.

The bing economic system of Grenada is termed unstable and on a diminution, harmonizing to Mr. Lennox Andrews ( Economist for Grenada ) . The state ‘s Gross domestic merchandise is on a diminution, in the sense it is below negative. This means that the entire market value of concluding goods and merchandises is less than equal to consumer goods and export goods. In visible radiation of this touristry within the state is besides worsening easy and displayed inability to prolong itself.

The writer has hence decided to make some primary research on the most normally utilised countries within the touristry industry of Grenada. These country ‘s being ; Travel, Hospitality and Entertainment. The sectors were farther broken down into samples, for illustration travel ( LIAT ) , Hospitality adjustment ( Grand view hostel ) , Hospitality dining ( Le Chateau ) and amusement ( Taxi driver ) .

To efficaciously carry through this milepost the writer has decided to determine a list of aims:

Give a history of the touristry industry in Grenada.

Give a outline of the economic system of Grenada.

List and discourse the countries within the touristry industry in Grenada that were affected by the fiscal crisis.

Make necessary recommendations.

In attempts to assist cut down the impact of the bing planetary recession on the touristry industry

The writer has come up some possible recommendations ;

Officials should screen ways to cut down authorities disbursement where possible.

Implement a eventuality fund.

They should besides seek to cut down the many revenue enhancements imposed.

Try to optimise the usage of recurrent gross.

Try to be self sufficient in their agribusiness green goods, avoid unneeded imports.

Create an enabling environment for local concerns to boom.

Implement plans to develop individuals to be various in footings of happening alternate employment.


Research inquiry:

How has the present planetary fiscal crisis affected the touristry industry in Grenada?


Carefully analyze the countries within the touristry industry that was adversely affected by this planetary recession.


Give a history of the touristry industry in Grenada.

Give a outline of the economic state of affairs of Grenada.

List and discourse the countries within the touristry industry in Grenada that were affected by the fiscal crisis.

Make necessary recommendations.

Rationale for the choice of the subject chosen:

Like most individuals, the planetary fiscal crisis has affected me personally. It has reduced my disbursement power vastly. Therefore it is a turning concern for me as an person, as to merely how long and far is this recession traveling to come on. Around the universe today the issue of the fiscal crisis is the most popular issue at manus. Judging from the fact it is go forthing many individuals unemployed, stateless and dead, it should truly be a planetary figure one concern. This is the footing for which I have decided to transport out this research, with the hope of happening some logical recommendations.

Research Methods:

As a agency of efficaciously finishing this paper both primary and secondary research methods were utilised. The intent for set abouting both methods is to avoid prejudice of information. At the same clip give the participants an chance to freely show themselves. The writer ‘s purpose is besides to give readers an nonsubjective position of the subject.

Sample population used:

In transporting out research for this paper a suited sample size was selected. Due to the fact that the touristry industry tends to be such a diverse country, which may affect legion individuals. The writer kind it fit to concentrate on sections instead than persons. Therefore, using three major sections within the industry here in Grenada. The countries selected were LIAT ( Travel ) , Grand View Inn ( Accommodation ) and Le chateau ( Dining ) .

Historical information was besides collected from reputable beginnings, as a agency of finishing this paper.

Definition of Financial Crisis and Recession:

A fiscal crisis:

A state of affairs in which the supply of money is outpaced by the demand for money. This means that liquidness is rapidly evaporated because available money is withdrawn from Bankss ( called a tally ) , coercing Bankss either to sell other investings to do up for the deficit or to prostration. See besides recession ( Business lexicon, 2010 ) .

A recession:

Time period of general economic diminution, defined normally as a contraction in the GDP for six months ( two back-to-back quarters ) or longer. Marked by high unemployment, dead rewards, and autumn in retail gross revenues, a recession by and large does non last longer than one twelvemonth and is much milder than a depression. Although recessions are considered a normal portion of a capitalist economic system, there is no unanimity of economic experts on its causes ( .Business lexicon, 2010 )


Dear Participant,

This survey/questionnaire is intended to be of extreme confidentiality. This is a study carried out by Donika Christopher-James, a Tourism and cordial reception major at the St. George ‘s University. The intent of this study is to find some of the inauspicious effects the bing planetary recession has on the touristry industry in Grenada. With the exclusive purpose of happening some possible recommendations on completion of this survey. Therefore, participants are asked non to subject their name or organisation name as a agency of maintaining this information confidential.

Thank you,


Donika Christopher-James

Are you cognizant of the bing Global fiscal crisis?

Yes No

Has the Crisis affected youaˆ¦aˆ¦aˆ¦ .

Directly Indirectly

State in what manner was your organisation was affected?

What per centum of your concern is owed to tourist?

Below 30 %

30-40 %

40-50 %

Higher than 50 %

Do you hold repeat guest annually?

Yes No

What is the per centum of return invitees annually?

10- 30 %

30-50 %

Higher than 50 %

Has at that place been any alteration in the backing of your organisation by return invitee within the last twelvemonth?

Yes No

Indicate whether there was addition or lessening, by how much?

Increase — – Decrease — –

Less than 10 %

10-20 %

20-30 %

30-40 %

Over 40 %

In your sentiment do you believe there is a solution to the crisis?

Yes No

Can you give some recommendation ( s ) to the individuals affected within the touristry industry?


Datas analysis:

Are you cognizant of the bing planetary fiscal crisis?

Figure 1.1: The Graph indicates that 75 % of the respondents were cognizant of the fiscal crisis in the universe, where as the staying 25 % was really much unaware.

Figure 1.2: This chart indicates how many individuals were affected by the fiscal crisis straight taking to fiscal determinations being made or indirectly the drip down consequence ; 100 % were affected straight and there were none indirectly affected.

State ways in which you as a concern was affected.

Figure 1.3: Is an indicant as to how the four assorted sectors were affected by the crisis ; 25 % indicated they had to do place redundant, another 25 % indicated that they suffered higher public-service corporation cost e.g fuel, 25 % besides said that their employees were forced to accept lower rewards and the concluding 25 % stated that they were unable to market expeditiously and efficaciously.

What per centum of your concern is owed to tourist?

Figure 1.4: Is an analysis as to how much the assorted concern depend on the tourer for their being, 25 % indicates that 40-50 % of their concern comes from tourer and 75 % of the frequenters said that over 50 % of their concern grosss comes from tourers.

Do you hold repeat guest annually?

Figure 1.5: This chart indicates that 100 % of the participants have repeat invitee on a annual footing.

What is the per centum of repetition guest annually?

Figure 1.6: This chart illustrates the per centum of repetition invitee to the changing sectors annually ; 25 % of the participants indicated that over 50 % of their guest are repeaters, another 25 % indicated that the return guest history for 30-50 % of parts and the staying 50 % said that return invitee contributes to 10-30 % of concern annually.

Has at that place been any alteration in the backing of your organisation by return invitee within the last twelvemonth?



100 %

0 %

Figure 1.7

Was there an addition or lessening in the backing of tourer and by how much?

Participant 1

Participant 2

Participant 3

Participant 4



10-20 %

Over 40 %

30-40 %

10-20 %

Figure 1.8

Figure 1.9: This graph is and analysis as to whether the participants believe there is a possible solution to the fiscal crisis. Where 75 % expression at it objectively and said yes they believe there is a solution for it and the following 25 % indicated no there is no possible solution to the job.

Grenada ‘s employment state of affairs:

Harmonizing to information from the Minister of Finance Grenada ( Peter David ) , unemployment rate at the terminal of 2009 was predicted to make 30 % . In basic mathematics, this could intend at least 23,000 individuals out of work, in a population of approximately 100,000 individuals. This is a huge difference in comparing to the ( CIA ‘s ) Central Intelligence Agency ‘s anticipation in 2000 of 12 % of possible unemployed individuals ( CIA, 2010 ) .

Present Economic state of affairs of Grenada:

The economic system of Grenada has rebounded vastly following the desolation and impact of Hurricanes Ivan and Emily in 2004 and 2005, with the recovery centered chiefly on Reconstruction and the 2007 Cricket World Cup readyings. The economic mentality was most favourable, since several major touristry investing undertakings were underway. At that point rising prices has been subdued. The state ‘s financial public presentation, nevertheless, has been much weaker than programmed in 2006 to 2007, owing it to capital outgo overproductions. Public debt reached 125 per centum of GDP at the terminal of 2006, go forthing small room for manoeuvre in the event of exogenic dazes ( CKMC, 2010 ) .

Harmonizing to the Economist Intelligence Unit ( EIU ) , on the 25th of November 2009A Grenada ‘s application for a expense of US $ 6.2m under its three-year International Monetary Fund ( IMF ) poorness decrease and growing installation Poverty Reduction and Growth Facility ( PRGF ) was approved, hiking entire expenses under the programme to US $ 23.5m. The IMF noted the badness of the impact of the planetary recession on Grenada ‘s economic system, appointed to a pronounced diminution in the state ‘s end product. Owing to fall in touristry grosss, Foreign Direct Investment ( FDI ) and remittal, a rise in the unemployment state of affairs, and big gross deficits in 2009. With estimated public-sector debt numbering about 109 % of GDP at end-2008 ( and estimated to hold risen somewhat in 2009 ) , the IMF besides warned that Grenada remains at a high hazard of debt hurt. However, the IMF commended Grenada on its attempts to get by with the short-run impact of the external dazes and its committedness to implementing structural reforms, including the debut of VAT in February 2010.

The debut of the VAT is one of several authorities enterprises to hike sagging gross, which has been hit hard by the downswing in the touristry sector ( stopover reachings were down by 14.4 % twelvemonth on twelvemonth in the first nine months of 2009, which has pulled down net incomes ) . The authorities has besides indicated that it will implement a fraud control program at imposts and hike enforcement to roll up revenue enhancement arrears in 2010. Capital disbursement is expected to be cut in 2010, by every bit much as 50 % compared with 2009, as the authorities diverts its scarce resources to hike societal disbursement.

Based on preliminary estimations, which reveals that economic activity in Grenada contracted by 7.7 per cent in 2009 compared to existent growing of 2.2 per cent in 2008.A This public presentation reflected diminutions in building ( 52.4 per centum ) , mining and quarrying ( 29.9 per cent ) , hotels and eating houses ( 20.8 per cent ) , sweeping and retail trade ( 17.9 per centum ) , conveyance services ( 12.3 per centum ) , fabricating ( 11.8 per cent ) , authorities services ( 3.8 per centum ) and communications ( 2.0 per centum ) .A This hence indicated there were some bright musca volitanss. Agribusiness increased by 9.3 per centum, Other Services which is dominated by St. George ‘s University increased by 8.0 per centum and Banking and Insurance increased by 8.6 per centum.

Between January to November 2009, stay-over tourer reachings declined by 12.8 % with a sum of 84,240 reachings in comparing to 96,588 reachings for the corresponding period of 2008. All the major beginning markets experienced diminutions: United States by 1.5 % ; United Kingdom by 23.2 % and the Caribbean by 12.6 % . It is believed that the recession experienced in Grenada ‘s major beginning markets combined with the high cost of air travel contributed to the diminution in the figure of stay-over visitants. For the period January to November 2009, Cruise Arrivals totaled 276,858 compared to 227,937 for the same period in 2008, an addition of 21.5 % . Similarly, sail calls besides increased by 13.5 % with a sum of 202 calls compared to 178. That said, it is estimated that the mean outgo of these visitants fell reflecting the planetary economic state of affairs ( CKMC, 2010 ) .

Harmonizing to Economist Lennox Andrews the Grenadian economic system is projected to turn by 0.8 per centum compared with a jutting contraction of 2.3 per centum for the ECCU.A I should observe that Government ‘s projection is higher than the IMF and ECCB projections are a diminution of 2.0 % and 1.8 % severally but is based on our most recent information on the undertakings ( public and private ) which will get down this twelvemonth.

SWOT analysis of the Tourism Industry in Grenada:


Enrichment of culture-

Learning about assorted civilizations is an built-in portion of any person ‘s development. It gives one a opportunity to understand assorted ways of job resolution ; different patterns, beliefs, faiths, norms and values. In bend this will help in antagonizing the issue of favoritism.

Increase in Foreign direct investments-

As a consequence of the development of touristry, the Grenadian economic system has seen the likes of many new developments in footings of foreign investings. For illustration ; The Port Louis development, Grand seaport development at Egmont point, Bacolet bay Resort development, Prickley bay marina development and the Livera national development.

Increase in foreign exchange for the country-

This is the chief country where the mass foreign exchange for the state is derived. This occurs when tourist engage in Tourss, dining, out-of-door escapades, adjustment and communicating via telephone or electronic mail.

Opportunities for employment-

The unemployment state of affairs in Grenada has been a known factor for the state for a figure of old ages, touristry offers chances for employment both direct, for illustration ; within the hotels or eating houses or indirect like the sellers and tour ushers.

Sustain and continue our environment-

The Grenadian functionaries have seen the demand to continue their natural home grounds, legion historical sites and beaches. Some of the steps they have put in topographic point to make so is ordinances and Torahs like ; fees paid to see the garrisons, no 1 can see the Rhizophora mangles during a certain period and fillet of the locals from mining sand from the beaches.


The industry is really labour intensive-

Tourism within Grenada and around the universe is seen as a service oriented industry. Therefore it rely ‘s on the personal touch of human to convey about the much needed satisfaction to the invitee. This may be damaging, in the event that there is state of affairs like industrial actions or mass eruptions of unwellness, the concern will be on a base still.

Encourages immense amounts in expenditures-

Within the island of Grenada over the old ages it is rather noticeable that there has been a batch of infrastructural development. For illustration roads, sail ship terminuss and marinas. These development calls for immense amounts of outgo on the portion of the Government.

Increased in condemnable activities-

The touristry sector over the old ages has lured many new investors into the state, though it is seen as an plus it is besides negative, since there is the chance for white collar offense such as money laundering and larceny.


The state can make a good known brand-

“ Grenada the isle of spice ” may look to be a strong trade name, but non everyone is willing to go 1000s of stat mis for merely spice. There is the chance to develop the state ‘s trade name.

Diversify into assorted markets-

Diversity is imperative as is in any concern, this is to derive as much clients and market portion as one possibly can.


The present Global recession-

Grenada like many other finishs is faced with the wrath of the economic crunch. It has affected the touristry sectors vastly, since most concern has seen a diminution in patronage as compared to the past. Most individuals passing power has reduced critically.

Natural and manmade disasters-

Natural catastrophes is a critical issue for Grenada though, history has shown they are far and few. The state is located within the Torrid Zones and concerns of hurricanes and storms are turning, for illustration hurricanes Ivan and Emily in 2004 and 2005. Manmade catastrophes are likely to happen if attention and cautiousness is non taken, for illustration ; fires which is a really destructive characteristic.

Increased competition-

Possible completion is ever a concern for any industry and concern. Within the touristry industry competition will happen with new and rising finish markets.

Areas within the touristry industry that was affected by the fiscal crisis:

The Global recession has affected the touristry industry in Grenada holistically ; because there have been individuals who are faced straight with this crisis, for illustration in North America, their disbursement power has been reduced well. The touristry industry like most other states is made up of legion sectors. Furthermore the sectors which have felt the wrath of the economic down bend in Grenada are:

Travel: ( air hoses, cab drivers, circuit operators, sail ship operators and travel agents )

Adjustment and dining: ( eating houses, hotels, invitee houses and travel agents )

Shopping: ( supermarkets, retail stores, shops and sellers )

Entertainment: ( Local bands- ( steel sets, singer ) , dark nines )

Over the past 2 old ages these sectors has seen a considerable diminution in their backing particularly those from tourer, which they were and most instances are still to a great extent dependent.

The cardinal participants involved Tourist motion:

The touristry industry based on its service oriented nature has legion cardinal participants ; these cardinal participants are individuals involved in the cordial reception sector of touristry, the regulative organic structures and the tourer themselves.

Within the cordial reception sector there are individuals or organisations that provide service to tourist. In supplying those services they by and large guarantee that it is sustainable and economically feasible to the industry and environment. These sectors are the hotels ; who provide adjustment to tourist sing the island of Grenada, the eating houses ; most of these eating houses are located particularly within the South of the island are to a great extent dependent on tourer to prolong them, sail lines ; which is one signifier of transit taking individuals from changing finishs to Grenada, a big per centum of stop-over tourer is accounted for as sail riders and air hoses ; the air hose going to and from Grenada history for 70 % of tourer sing the state.

The 2nd group of individual ‘s within the touristry sector of Grenada are the regulative organic structures, which involves ; the curate and ministry of touristry who is responsible for a part of public dealingss in touristry, every bit good as implementing regulations and policies to assist prolong and protect the environment and visitants likewise. Another sector within the regulative organic structure is the touristry board of Grenada who engages in ample selling for the finish and aids in advancing some of the historical sites.

The concluding major protagonists of the touristry industry in Grenada are the tourer themselves, without the much needed tourer going from their usual topographic point of occupant and work, touristry will non be an industry that Grenada can depend on.

Types of effects:

The Global recession has affected states worldwide and more so the touristry sector around the universe vastly. Within the Grenadian community the planetary economic downswing has affected the touristry industry in legion ways ;

There is a diminution in the visitants to the state.

Execution of new revenue enhancements.

Loss of skilled labourers within the industry, because of legion occupation expirations.

Decrease in marketing enterprises and ability by the regulative organic structures.

Pull out of airline/transportation service to the island.

Higher air menus.

Decrease in ( FDI ‘s ) foreign direct investings.

There were concerns confronting lasting closing, e.g trade stores, supermarkets.

Addition in offense.

Measures taken to decide the state of affairs:

Like many of the larger developed and developing states Grenada has tried legion schemes to decide the state of affairs, or to some extent shock absorber the load of this crisis. Without success they continue to experience the wrath of this economic downswing. Some of the steps taken by the functionaries of Grenada to defy the crisis are ; the kind fiscal aid to pay out the outstanding debts from the World Bank. The World Bank being an establishment that is soon faced with the said state of affairs is unable to help. Another scheme was to implement the value added revenue enhancement ( VAT ) , which is merely a month old and merely excessively premature to see any benefits derived. The 3rd and most common scheme was to forcibly cut down rewards, rotate and end employee ‘s places. The touristry and cordial reception sector has felt the blow hardest from this crisis, merely because of its uncertainness and exposure in response to alter in the economic system.


While touristry retains the rubric of the largest and fastest turning industry worldwide, its dynamism is owed to the many attempts to fulfill consumer demands. Similarly within the Grenadian economic system touristry today is deemed the figure one industry and chief beginning of gross for the state for over a decennary. However, the touristry sector was impacted by many external factors, but most preponderantly over the past ( 2 A? ) old ages by the bing Global fiscal crisis. The effects of this crisis were as follows and by no agencies exhausted ; Loss of Jobs, lessening in visitants reachings, lessening in foreign direct investings, loss of skilled workers, higher air menus, lessening in marketing enterprises, pull out of major air hoses and offense. Though individuals in authorization have engaged in legion steps to antagonize the job of the fiscal crisis on the touristry sector in Grenada, they were unsuccessful. Based on my analysis of the effects the fiscal crisis holding on Grenada ‘s touristry carried out in this research, it is apparently unethical and to an extent hard to seek to work out this state of affairs. Because of the nature of a planetary recession, it is more ethical to allow the system take its class. Therefore seek to implement agencies to buffer the economic system when it is complete at the same clip usage this epoch to better prepare for a similar state of affairs.


This paper will be deemed uncomplete without happening meaningful and yet realistic solutions to the bing job confronting the touristry and cordial reception industry in Grenada “ The Global Recession ” . In attempts to assist decide this resounding job the writer has come up with a figure of recommendations which are as follows:

The functionaries and the cardinal participants as mentioned within the paper must develop more plans to promote disbursement by the tourer, therefore traveling off from the usual ordinary activities. Since a recession is normally caused by failure to shoot monies back into the economic system so it can hold the spin off consequence, they must implement activities such as ; an all you can eat fruit fest for the wellness witting tourer or membranophone by moonshine where they get to hear a spot of our heritage and go a portion of it.

Implement a eventuality fund for the industry, the industry is seen as fickle, but like any other industry it has its peak points and its down falls. Monies must be placed a side or invested to harvest net incomes, in that state of affairss like the fiscal crisis occurs, the industry will more or less be cushioned and can prolong itself for a longer period.

Seek ways to cut down the many revenue enhancements being enforced, though revenue enhancement is the figure one means of most authorities ‘s gross. The execution of revenue enhancements will merely screen to decline the recession state of affairs, since a recession is fundamentally failure of the people to shoot monies back into the economic system. Taxes will merely let them to continually avoid disbursement.

They should seek to optimise or maximise the usage of the recurrent grosss. Every state, no affair the size has recurrent grosss, which is gross that is predictable, stable and can be counted on in the hereafter with a high grade of certainty. Try to use these grosss for many needed intents alternatively of concentrating on one given country.

Seek to go self sufficient in countries such as agribusiness, this is as a agency of cut downing imports, though the globalisation procedure is inevitable.

Create an enabling environment for local concerns to boom. It is ever good for a state to welcome foreign direct investings, but the endurance of local concerns is of import. Implementing Torahs and ordinances that will non ease local concern will merely set extra loads on the economic system in footings of unemployment.

Implement plans to develop individuals to be various in footings of happening alternate employment. This is of import in that statistics indicates how many individuals are today unemployed within the touristry sector, because of the economic downswing.