According to an Oxford Analytics study, tourism is a big contributor to worldwide employment, providing one out of every 11 jobs. Furthermore, it can bring together a diverse community of small businesses and service providers such as food suppliers, tour guides and landscapers. In a video from the IFC (International Finance Cooperation) it is explained how a hotel can form the source of impact for an entire region. As Ubuntu Impact Investments we believe that this is a perfect example of how investing in tourism, not only hotels, can create impact in emerging markets in the world.
Creating a hotel or a touristic site does not only create new jobs, it can also add value to the local infrastructure of a region. New roads are needed to make the location accessible, but this does not imply that these roads are only useful for tourists that visit the hotel. As perfectly said in the video: ‘’the effects go beyond the hotel itself.’’ These roads can also be used by local suppliers, making it easier to reach villages and farms. The jobs provided by a hotel or tourism destination are not solely for people to earn money, the development of skills can be an additional function. This leads to real investments in staff by giving training and education. With the result that: ‘’a cook can become a chef’’. It is all about increasing the standards.
These opportunities are all perfect examples of how social an economic impact can be created by investing in tourism development projects.
A hotel is not just a place to sleep..
Source: International Finance Cooperation