TOURISM MSMES AND CORPORATE SOCIAL RESPONSIBILITY AXES FOR

TOURISM MSMES AND CORPORATE SOCIAL RESPONSIBILITY – AXES FOR THE DEVELOPMENT OF SUSTAINABLE TOURISM Presented by Jennifer Griffith Permanent Secretary Minister of Tourism Jamaica OAS XIX Inter-American Travel Congress September 29 – 30, 2011

Background �Corporate Social Responsibility (CSR) strategy traditionally associated with large companies �support from external stakeholders � capture market shares �E. g. large hotel chains sponsor and support community projects and programmes in � education � health care/ sports, �infrastructure � environment

Background �Scope for smaller companies –the MSME’s – to become involved in similar CSR activities is increasingly being recognized �CSR is the deliberate inclusion of “Public Interest” into corporate decision-making. � combining the interests of people, environment and profits of the enterprise. � fosters environment of trust

CSR and Sustainable Tourism �Sustainable tourism �Economic, social and environmental concerns adequately addressed. �Tourism business “balancing economics with people, culture and environment” ( “New Tourism” strategy) � CSR provides social and economic benefits to community , country -- contributes to sustainability.

MSME designation MSMEs are defined as : � a collection of micro, small and medium-sized enterprises. A Micro enterprise � Annual turnover of less than US$100, 000; 1 -3 employees. A Small enterprise � Annual turnover of between US$100, 000 and US$500, 000 ; 410 employees. A Medium enterprise between US$500, 000 and US$2, 000; 11 - 50 employees.

MSMEs in the Tourism Sector Jamaica has a wide cross-section of MSMEs in tourism. craft trade, attractions, transportation, tour guiding and tour operations, food and beverage, bed and breakfast operations, entertainment and small and medium-sized accommodations.

Tourism MSME’s and CSR � Micro, Small and Medium-sized tourism enterprises can employ Corporate Social responsibility as part of their business strategies, and in so doing contribute to sustainable tourism. � Leverage the goodwill of customers, suppliers and employees � Contribute to enhanced brand image, positive relationships and increased productivity. � The benefits to the company as well as the community contribute to a more sustainable tourism.

CASE STUDIES �Including CSR in everyday business decisions : �Honouring environmental and ethical standards – Hotel Mockingbird Hill �Partnering with Communities – Jakes Hotel Villas and Spa

Hotel Mockingbird Hill �COMPANY PROFILE �Located in the hills of Port Antonio, Portland in north-east Jamaica � 10 room eco-friendly boutique accommodation �Annual turnover approx. J$40 Million (US$500, 000. 00 approx. ) �Winter season room rates currently range from US$200 (economy) to US$660 (suite) �Number of employees: 18 (all local employees)

Hotel Mockingbird Hill �Promoting “Guiltless Indulgence” �CSR activities: � Environmentally friendly practices, � Biodiversity conservation, � Resource management and � Support for the rural community: �Employs locals and uses organic locally-sourced �Supports community employment and educational projects.

ECO-FRIENDLY PRACTICES • • • Solar Energy Rainwater Harvesting Natural Air-Conditioning Low Chlorine pool running on renewable energy Anaerobic wastewater treatment No insecticides/pesticides used in the gardens

COMMUNITY BENEFITS � Favours homegrown produce and uses only local, seasonal produce. � Supports several local independent suppliers and producers : � St. Mary Multi-Purpose Co-operative (homemade chocolate tea balls and packaged spices) � Tamarind Hill Farm (cheeses, yoghurt and milk) � Belcour Blue Mountain Preserves (sauces, chutneys and jams) � Crum Cottage (pimento jelly, jam and liqueur) � Jamaica Hardanga Heritage Trust (Hardanga clothing and gift items) � Charles Town Maroons (tours and cassava flour) � Nature’s Handmade Paper Co-operahive (gift items from recycled paper) � Jamaica Conservation Development Trust (carbon off-setting) � Promotes community tourism

Hotel Mockingbird Hill 10 -room eco-friendly boutique. Amenities include restaurant and bar, pool, art gallery/ gift shop, meeting facilities, internet connection and laundry service.

Room overlooking the Port Antonio harbour at Hotel Mockingbird Hill

Hardanga embroidery gown Hotel Mocking Bird Hill supports the Hardanga Heritage Trust by promoting a honeymoon gift package to guests that includes uniquely designed unisex, knee–length, kimono-style hardanga dressing gown at a cost of US$120 for two.

Education Needs our Urgent Generous Help (E. N. O. U. G. H) Programme Hotel Mocking Bird Hill has launched the E. N. O. U. G. H. programme to galvanise support for better quality education in Port Antonio’s schools by providing books and learning materials. They also participate in the “Pack for a Purpose” Programme, where guests can bring school supplies, medical supplies, and other small items from home to donate to the local community.

Homemade chocolate tea balls & spices Hotel Mocking Bird Hill is one of the pioneering customers of the St Mary Multi-Purpose Cooperative, purchasing their all natural chocolate teaballs as a complimentary gift item for visitors for the past 10 years.

Natures Handmade paper envelopes (flower mulberry) One of the hotel’s long-term partners is the women from the Fairy Hill Community who create beautiful recycled paper & stationary from shredded waste paper which is then use within the hotel and give as gifts to guests.

Colonel Frank Lumsden of the Charles Town Maroons blowing the Abeng (cow horn) Activities and learning experiences are offered to guests that raise awareness of Jamaica's unique cultural heritage which in turns provides employment, within local communities, particularly Charles Town, where, the hotel promotes visits to Safu Yard and the Maroon Museum.

The endemic Giant Swallowtail Butterfly, the largest in the western hemisphere with 6 -inch wing span The hotel has a partnership with the Jamaica Conservation Development Trust (JCDT) to replant native Jamaican forest trees, particularly those which are excellent for biodiversity e. g. Hernandia catalpifolia, the tree the endangered Giant Swallowtail Butterfly lays its eggs on and the only plant the larvae (caterpillars) will eat.

Jake’s Hotel Villas and Spa Company Profile �Located on the south coast in Treasure Beach, St. Elizabeth �Family operated since the early 1990 s �Comprises 35 guest rooms, mostly cottages and villas �Average occupancy 55%

A PHILOSOPHY OF SUSTAINABILITY �The business is intricately linked to the community of Treasure Beach �Maintains a philosophy of cultural preservation, uniqueness and community authenticity �Is the hub and driver of activities that provide social and economic benefit to the community �Established reputation for being environment-friendly

CSR ACTIVITIES � Jakes promotes environmental preservation through: �Use of solar water heating �Gray water treatment systems �Recycling of all plastics �Sponsorship of a charitable foundation, the BREDS Treasure Beach Foundation which promotes education, sports, cultural heritage and emergency healthcare. �Hosting of “Calabash” annual literary festival

COMMUNITY BENEFITS �Provides employment to locals, particularly within the Treasure Beach community: �Trades men and women (carpenters, welders, tailors) �Professionals (teachers, artists, chefs) �Suppliers (farmers, fishers etc. ) �Sources produce from small farms in St. Elizabeth �Promotes community tourism and sports tourism �Significant contributions to community development and outreach

Seaside cottage at Jakes Hotel, Villas & Spa Jakes features 35 bohemianchic rooms, each uniquely designed by owner Sally Henzell. Amenities include a spa, two restaurants, a saltwater pool, gift shop, media room, grocery delivery service; in-room dining; laundry service; nanny service.

Guest room at Jakes

Education Fund for children of fishermen lost at sea Upgrading of the Sandy Bank Basic School Founded by Jakes Chairman, Jason Henzell in 1998, BREDS Treasure Beach Foundation is a charitable foundation with a mission of promoting education, sports, cultural heritage, and emergency healthcare. A dollar of every night of the visitor’s stay at Jakes is donated to BREDS’ ongoing projects that reflect the needs of the community.

Phase One in the development of BREDS Treasure Beach Foundation Sports Park The Sports Park will be built in four phases, culminating in a 15 -acre park complete with cricket pavilion, regulation-size football field and children’s playground. Currently Treasure Beach United, the local football team, trains and plays matches at the Sports Park, generating a lot of community pride excitement on and off the field.

Calabash International Literary Festival Jakes is a major sponsor of the annual Calabash Literary Festival held in Treasure Beach . The event sees a gathering of leading Caribbean writers for three days of readings, workshops and musical events and is attended by over 5, 000 participants; it provides major economic benefits to hundreds of small tourism operators and craft and food vendors in the community.

Jakes Off-Road Triathlon Poster 2011 The Jakes Off-Road Triathlon is an annual run, bike ride and swim race — 500 meter ocean swim, 25 k mountain bike, and 7 k country run. All proceeds benefit the BREDS Treasure Beach Foundation.

Farm to Table Dinners and Farm Tours by Jakes commitment to support local farmers and fishermen began when it first opened its doors in 1995. Now Jakes offers locally-guided farm tours and monthly Farm-to. Table Dinners to promote the culinary bounty of the Pedro Plains, St. Elizabeth.

Impact of CSR �Economic: �Businesses: increased visibility, publicity help to drive demand �Community: increased employment and income for residents and small and micro operators who supply goods and services during these peak seasons (e. g. fresh produce).

Impact of CSR � Social: educational, sports and cultural programmes, social services and infrastructure �Environmental: Increased community awareness of environment-friendly practices � Governance: Tourism awareness and community spirit”-- increased cohesiveness and cooperation

Conclusions �Although CSR is traditionally associated with large firms, � the experience of Jamaican tourism sector is demonstrating that the strategy can be effectively applied by MSME’s to support a more sustainable tourism, �benefits not only enterprises, but local communities, the industry and the country.

Thank you