Socio-Economic Effects of Dolphinariums on Small Island Destinations Essay Example
The Socio-Economic effects of dolphinariums on small island destinations By: Joanne Armantrading & Stefan Oosterwaal International Management & Business Research Methodology University of Aruba 2008 Table of contents Intro 3 Literature Review 6 Conceptual Model11 Stakeholders14 Hypotheses 21 Research Design23 Secondary data analysis27 Primary data30 Conclusion37 References38
Introduction
There has been significant debate regarding the establishment of a dolphinarium on the island of Aruba, with various organizations such as Animal Rights Aruba and Aruba Marine Mammal Foundation expressing their viewpoints.
Although there is opposition and criticism, the examination of the proposal to construct a dolphinarium on Aruba takes into account more than just biological or ethical concerns. The evaluation seeks to understand how this facility could affect our community, not only in terms of social and economic aspects but also f
...rom an environmental perspective. Our goal is to determine whether the impacts would be beneficial or detrimental.
We are interested in determining if it would be possible to create a dolphinarium in Aruba. Our goal is to gather information on this matter. Numerous Caribbean islands already have dolphinariums, so by examining data from these islands, we may gain insight into how establishing one may affect our own island. On average, Aruba attracts more than 1,000 visitors.
With an annual population of 100,000, individuals arrive on the island by either airplanes or cruises and immediately contribute to the local economy. The question at hand is whether the presence of a dolphinarium will attract more visitors to the island and encourage greater spending. To answer this question, we must determine the most effective methodology. In order to do so, we will examine other Caribbean destinations that already have dolphinariums and assess thei
visitor arrivals and expenditures. Additionally, we will conduct a survey to gather public opinion on the matter.
What is the public's stance on dolphinariums and how does this affect their potential economic benefits? Can a dolphinarium contribute to sustainable development on an island like Aruba? Sustainable development refers to meeting present needs without compromising future generations' ability to meet their own, as defined by the Brundtland commission. Aruba aims to become a sustainable destination like others, hence it is crucial to determine if a dolphinarium aligns with sustainability goals. To assess this, data from destinations that have introduced dolphinariums in the past six years will be examined.
The purpose of this analysis is to evaluate the impact of dolphinariums on our social and economic well-being. Building a dolphinarium will enhance the diversity of our island. Furthermore, we offer an extensive selection of high-quality products that cater to different markets. Individuals who relish sea and sun activities have numerous options for water sports and other aquatic leisure pursuits.
Aruba Gastronomic Association offers a wide range of options for people who enjoy fine dining. However, one missing feature is a dolphinarium. To attract a larger audience and expand our offerings, it's important to understand what a dolphinarium is. According to Wikipedia, a dolphinarium is essentially an aquarium specifically designed for dolphins. Typically, dolphins are housed in a spacious pool, although sometimes they may be kept in pens in the open sea for research purposes or public shows.
Some dolphinariums consist of one pool where dolphins perform for the public, while others have expanded into larger parks that house not only dolphins but also other marine animals and attractions. These larger parks
are often referred to as marine mammal parks or theme parks that feature a dolphinarium. Essentially, a marine mammal park is a combination of a public aquarium and an amusement park. It is important to note that marine mammal parks differ from marine parks, which are dedicated to preserving natural habitats and marine wildlife such as coral reefs, particularly in Australia.
Literature Review
The tourism industry's development and the existence of dolphinariums have caused strong opinions from the public. In this section, we will examine various models previously used to explain tourism growth and the corresponding reactions.
The dolphinarium is widely recognized for its economic advantages, such as creating employment opportunities in the local community. Regardless of whether individuals support or oppose the idea of a dolphinarium, their opinions do not greatly affect its benefits. Surprisingly, even those who are against the concept can still indirectly benefit from it. Visitors to the dolphinarium will need places to stay, dining options, and may also participate in other activities alongside attending the dolphinarium.
The secondary data we discovered is from R. W. Butler (1980). He created a tourism life cycle specifically for marine tourism. The development stages of marine tourism attractions are outlined in his work (adapted from Butler, 1980). Upon analyzing the initial graph, it becomes evident that the early stage involves the exploration process and has a relatively low number of tourists. This can be attributed to the lack of knowledge or familiarity with the attraction, resulting in fewer visits.
Initially, the local community may have doubts regarding the potential of the attraction to benefit their economy. However, as time goes by and the attraction successfully proves its positive impact
on the local economy, others may start to acknowledge this and even introduce their own attractions in order to compete. As more individuals become acquainted with the product, a growing number of people will visit and share their experiences with others, resulting in a rapid increase in attendance.
Is the growth going to continue indefinitely? Eventually, stability will be achieved. At this point, action needs to be taken. Once stability is reached, there are three possible outcomes: maintaining it, experiencing a decline, or further growth.
Everyone would ideally prefer to keep growing and increasing profits. Why are you currently stable? Are customers unhappy with your product? Are your prices too high?
You have the option to reinvent yourself by introducing new products and reducing prices. Once again, it is important to gather public opinion to determine what people want.
Once you have knowledge of this, you can offer them the product and experience growth once again. If you are unconcerned about achieving stability, there is a great likelihood that you will gradually begin to decline. In Aruba at present, development has reached a state of stability, and one potential approach to resume growth is by introducing new attractions and appealing to additional markets. We have not been undergoing a process of reinvention, and it can be stated that we are currently in the stability phase. What better method exists for determining what people want or think than by directly asking them? This rationale is why we believe that conducting a survey is appropriate.
Possible stages in the development of locations and associated operator reactions (adapted from Butler, 1980). The success of a dolphinarium is influenced by public opinion. It is
crucial to maintain a stable and positive public perception and to demonstrate care. Otherwise, profits will decline as people withdraw support. A good start does not guarantee sustained success.
When positive and supportive individuals with high expectations become frustrated during rapid growth, it can adversely affect your business. This illustrates the interdependence of economic and social situations. Aruba is dedicated to becoming a sustainable destination through the implementation of sustainable development practices. The graph below, originally posted by Johann Dreo on March 9, 2006, presents how the three components of sustainable development should integrate in order to create a sustainable destination.
On April 22, 2008, the website www.wikipedia.org/sustainable_development was visited. Johann Dreo emphasizes that sustainable development necessitates the integration of three essential factors: social, environmental, and economic. These factors are vital for any country aiming to achieve sustainability.
To maintain sustainable growth, it is crucial to keep the pillars on which we build in balance. It is essential to assess the socio-economic effects of a dolphinarium as they serve as the foundation for sustainable tourism and development.
Conceptual Model
We will now introduce our conceptual model, which we will utilize to analyze and categorize our findings. There are several potential outcomes including:
- Dolphinarium?
- increased number of visitors
- increased expenditures
- increased profit
- positive socio-economic impacts
- Or is it Dolphinarium?
- decreased number of visitors
- decreased expenditures li >< li > decreased profit li >< li > negative socio - economic impacts < / ul >
< / p >< p > Or does a dolphinarium have no relation to the well-being of an island? Numerous factors influence a destination's tourism industry; constructing a dolphinarium alone does not determine the number of visitors. p >
The tourism
industry is affected by various factors such as economic situations in other countries, the construction of new hotels on the island, increased airlift to the destination, and competition. These factors can determine the number of visitors and their spending habits. It is important to note that the future of a dolphinarium is not solely shaped by its construction. The conceptual model allows us to simplify reality and demonstrate the impact a dolphinarium can have on a small island destination.
We will use a matrix to categorize the effects of the dolphinarium project into Social and Economic impacts and determine if they are positive or negative. Social effects refer to the impacts on individuals involved with the project, including tourists and the local population. Certain environmental issues can also be considered social effects as they directly affect the population.
The economic effects of a destination, such as GDP changes, tourist expenditure, and tax payments, must be taken into account. The crucial question is whether the benefits exceed the costs. We urge readers to develop their own perspectives on this matter. Our main objective is to determine the impacts that would arise from a dolphinarium. To achieve this, we require quantifiable variables for assessing any alterations caused by the presence of a dolphinarium.
Here are the variables we will be observing. Tourism arrivals: Did the dolphinarium create a new market, are more people visiting the destination? Is this because of the dolphinarium, or are there other factors involved.
Stakeholders
Tourist expenditure ($ per tourist): Did the expenditure per tourist increase? Are people paying extra on their vacation to swim with dolphins? Who are the stakeholders in this project? Now we will identify
the stakeholders in this project. These are all the people, organizations, businesses and other instances that will be directly or indirectly affected by the building of this new attraction.
When considering Aruba as a tourism destination, the presence of a dolphinarium can greatly impact its marketing plans. Aruba can be viewed as a unified organization, constantly striving to attract customers and maintain its appeal. It is essential to determine whether incorporating a dolphinarium aligns with the current marketing strategy and whether it caters to our target tourists. Efforts must be made to ensure that the marketing and offerings of our hotels and businesses are consistent with the overall promotion of the island. The ATA and AHATA, as the main entities responsible for Aruba's destination marketing, should collaborate with De Palm to discuss any potential disparities in goals, objectives, and approaches to ensure a harmonious synergy.
Aruba must ensure that its marketing and delivered products are consistently aligned. De Palm Tours, one of the oldest activity operators in Aruba, aims to introduce a dolphinarium. Originally a transportation company, De Palm Tours has now expanded into various activities such as snorkeling and jeep tours. The motivation for bringing a dolphinarium to Aruba is unclear. While it's possible that De Palm Tours genuinely wants to educate the public about dolphins and protect the environment, doubts arise about their intentions. The project is likely driven by economic gains rather than solely benefiting public knowledge. Consequently, different groups of people have raised concerns and media outlets have sparked controversy.
Despite being seen as a nightmare by some, there are potential outcomes for De Palm Tours if they decide to turn this vision into
reality. This endeavor has the potential to generate significant income and profits for the company. Both tourists and residents would be intrigued by the prospect of swimming alongside these marine creatures and would be willing to pay extra for this opportunity. However, there is a chance that the plan may not succeed as certain hotels, including Bucuti Beach Resort, have already taken a stand against De Palm and ceased endorsing their activities through their concierge service.
Other organizations involved with De Palm may undertake similar actions. However, De Palm, being a large company with numerous selling locations operated by itself, has the potential to overcome this hurdle. Some tourists and residents of Aruba might also choose to boycott De Palm Tours due to their opposition to the confinement and training of dolphins. The possibility exists for individuals to proclaim their intention to boycott De Palm, and there is even potential for a collaborative smear campaign by stakeholders who oppose the dolphinarium.
Local Population ; Tourists
The perspectives of both tourists and the local population are vital in determining the outcome of the project in Aruba. It is crucial to conduct research to comprehend the viewpoints of both Aruban residents and visitors. Both locals and tourists have shared their opinions through various mediums, including newspapers and the internet. Furthermore, within the local population, there are numerous organizations that strongly oppose building a dolphinarium on our island.
The Aruba Marine Mammal Foundation, Animal Rights Aruba, Accion Ambiental, and Stimaruba are among the organizations that have signed open letters to De Palm Tours and the Aruban government expressing their opposition to this project. The Aruba Marine Mammal Foundation has initiated an "anti-captivity
campaign" to raise awareness and garner support against the dolphinarium. The Government of Aruba is a part of the Kingdom of the Netherlands and operates under Western democratic principles. The Aruban government consists of a 21-member parliament elected by popular vote for a four-year term.
The executive power in Aruba is formed by the Council of Ministers, with the Prime Minister as its leader. Legal jurisdiction is divided between the Common Court of Justice of Aruba and the Antilles Netherlands, and the Supreme Court of Justice in Netherlands. In 1994, the Government recognized that economic development in Aruba was primarily focused on the western region of the island. To stimulate economic growth in the eastern part of Aruba, the Government initiated a project known as "The Sasaki Development Plan".
The Development Plan for the region of San Nicolas aims to achieve fair growth. It includes a comprehensive investment program focused on infrastructure, roads, and housing projects. The funding required for developing the eastern areas will come from both private sources and the Government. Does the government have authority over the companies operating in Aruba? Absolutely! Can the government impose restrictions on their activities? Can anyone freely work in Aruba? The government has influence over all aspects of administration. Permits are necessary for establishing a business, and decisions cannot be made solely by the individual.
In order to undertake activities on the island, it is necessary to obtain government permission and provide detailed explanations regarding the planned activities. It is crucial to ensure that these activities comply with local laws. As for the dolphinarium, the issue of permits arises due to the abundance of foreigners in Aruba's workforce, despite
the low unemployment rate.
In order to hire a foreigner, certain requirements must be met. Firstly, the individual must possess a permit for staying on the island, as well as a work-permit. It is important to note that these work-permits are not permanent and must be renewed periodically. Therefore, regardless of the nature of your business, it is necessary to comply with government regulations. Once you have obtained the necessary permits to begin operations and employ individuals, it is crucial to recognize that the government still retains the authority to intervene. Any plans or activities must be documented in the registration paperwork provided by the Chamber of Commerce.
If you fail to comply with the rules, you may face a fine and the potential revocation of your permit(s). Additionally, it's worth noting that Aruba currently does not have a dolphinarium. If one is established in the future, it would become the sole one, creating a monopoly.
The absence of competitors means that the prices at the dolphinarium do not have to be lower than those at other dolphinariums. However, this does not imply that they can exploit the local population and tourists with high prices. The government has measures in place to regulate the profits of organizations, such as taxing them. The more money a dolphinarium earns, the higher their tax obligations become.
Hypotheses
There are numerous potential outcomes when a dolphinarium is established.
Now we will discuss some of the hypotheses that we can analyze with the data that will be collected. One hypothesis suggests that establishing a dolphinarium in Aruba will result in the creation of numerous job opportunities. This would greatly benefit our island as it would
enable more individuals to earn a living and contribute to our economy. The employment opportunities would span across various fields such as maintenance, marine biology, dolphin training, and marketing personnel.
The opposite scenario can occur where the majority of jobs created are filled by individuals from foreign countries. Many of these positions require specific forms of education that local residents do not possess, necessitating the hiring of foreign workers. The tasks of designing and constructing the aquarium, installing various water systems, and providing training and care for the dolphins all require expertise from individuals outside of the country. Additionally, these dolphins have unique dietary requirements, need exercise, and have other special needs that require specialists from other nations.
It is important to note that Aruba has a low unemployment rate, with less than three percent of its population currently unemployed. Consequently, there is a need for individuals from other countries. Additionally, the presence of a dolphinarium on the island contributes to eco-tourism, which aligns with the global trend of prioritizing environmental conservation and sustainability in recent years.
The tourism industry has also been focusing on this matter. Various prominent travel magazines have been recognizing and honoring environmentally friendly destinations and hotels for several years. Islands magazine, for example, introduced their Blue List, which consists of 100 eco-friendly hotels. Green Globe Certification offers guidelines and benchmarks to promote sustainable tourism. Furthermore, certain travel agents and tour operators require that the destinations and hotels they promote adhere to eco-friendly practices. Failure to meet these standards may result in these tour operators discontinuing their partnership with the company.
The dolphinarium is believed to contribute to eco-tourism efforts on the island of Aruba,
aiming to promote a more environmentally friendly form of tourism. This notion suggests that by observing and interacting with dolphins, we can raise awareness about the challenges we confront. Moreover, the dolphinarium provides an opportunity to educate the public about the significance of conserving nature, safeguarding wildlife, and preserving our environment. However, it is important to note that this hypothesis may not be entirely accurate.
The dolphinarium's impact on the environment is concerning as it involves capturing and confining dolphins, which disrupts their natural habitat. This disturbance can cause an ecological imbalance with significant consequences. Moreover, this practice promotes the capture of animals and exploiting nature for monetary gain, contradicting the principles of eco-tourism. Furthermore, the construction of the dolphinarium holds importance. It will generate tax revenue for the government and boost the economy by increasing spending on the island and contributing to higher tax income.
The increase of tourists visiting the island and their desire to swim with dolphins is expected to drive up spending. This presents an opportunity for investments in Aruba, which is beneficial for the island. However, the reality might be quite different. De Palm Tours, in partnership with a foreign Dolphinarium, will be responsible for carrying out this project. As a result, a significant portion of the profits generated may potentially be sent overseas instead of being circulated within our local Aruban economy.
Not only could the salaries potentially be sent overseas, but the investments may also follow the same path. Moreover, constructing a marine park of this nature requires expertise from a specialist who possesses extensive knowledge in this field. Consequently, the invested money will be directed to another country since
there are no specialists on the island capable of undertaking such a project. Additionally, external sources will be necessary to acquire specialized equipment for water maintenance and facility management. Furthermore, the dolphins themselves, being the primary investment, will be sourced from a foreign country.
Another point made is that the people coming to Aruba may not spend more money; the budget for their vacation will remain the same. A dolphinarium will bring diversification to Aruba’s product range and increase visitor arrivals. One more hypothesis is that the dolphinarium will help Aruba because it diversifies the products that the island offers. Next to enjoying our beaches and relaxing in our sun, the visitors can swim with dolphins. This can be used in marketing plans and attract more visitors. People may choose to go to Aruba instead of another island just because Aruba offers a dolphinarium while another destination may not have this. On the other hand, something else might happen.
The presence of a dolphinarium in Aruba may discourage tourists from visiting, as it can be perceived as a disregard for animal freedom and a focus on exploiting nature for profit. This is especially concerning given the current global emphasis on eco-friendly tourism. It is expected that the perception of Aruba among potential tourists may be negatively affected. However, it is worth noting that some dolphinariums argue that dolphin therapy can be beneficial for children with conditions such as autism and other neurological disorders. They claim to have successfully helped over 1000 children through interactions with the dolphins, boasting a 97% success rate.
(http://www.cnn.com/HEALTH/9803/28/dolphin.therapy/) A lot of experts and the general public are highly doubtful about this. They
believe it is merely a recreational activity for children without any actual therapeutic benefit, and view it as a money-making tactic.
Research Design
This research will be conducted in two parts. The first part will involve analyzing secondary data from another island destination with a dolphinarium. The purpose of this analysis is to gain insights into the experiences and effects of having a dolphinarium in that location, and to determine if similar effects are likely to occur in Aruba. This part of the study will focus on qualitative research methods.
The second part of the research will involve collecting primary data, which will be gathered by us.
This is a survey aimed at gathering people's opinions on the matter of a dolphinarium in Aruba. The focus of our research is quantitative in nature, as we aim to analyze data. Aruba currently does not have a dolphinarium, but we are interested in understanding the potential impact if one were to be established. We emphasize the importance of avoiding any trial and error approaches in this study.
We must not simply construct a dolphinarium without proper planning and organization. It is essential to ensure careful consideration before undertaking such a project because it involves significant financial investment and requires substantial changes. We cannot afford to take a risk without adequate foresight. Thus, we need to predict the consequences by examining other islands that have already established dolphinariums.
Many small islands, such as Anguilla, Bahamas, Curacao, Dominican Republic, and Jamaica, have at least one dolphinarium. It is essential to ensure that the destination we are comparing Aruba to is similar to Aruba in several aspects. Comparing apples to oranges is not possible.
The island
of Curacao, which is geographically located right next to Aruba in the Caribbean, is the destination we have found to compare to Aruba. Curacao shares similarities with Aruba, such as its population size being slightly bigger and the island itself being larger than Aruba.
Both Curacao and Aruba are part of the Dutch kingdom, resulting in similar cultures and ways of life. Both islands heavily rely on tourism and have oil refineries as major industries. The economic and political situations in both countries are stable and projected to remain so. While Curacao was chosen for comparison to Aruba earlier, it is important to recognize that these two islands are not identical, and there are some distinctions to consider when comparing them. These distinctions will now be addressed.
In terms of economic development, there are differences between Curacao and Aruba. Aruba has experienced a significant tourism boom since the late 1980s, while Curacao's boom is more recent. Additionally, the primary tourism markets differ between the two islands. Aruba primarily focuses on the North American market, while Curacao attracts a larger number of tourists from Holland, other parts of Europe, and other Caribbean islands.
In order to determine the impact of the dolphinarium, a significant amount of data collection is necessary. This will include both secondary data, which is already existing data that will be analyzed, and primary data, which will be collected by us. The primary data collection will involve conducting a survey.
This survey will be distributed to the local population and tourists. Its purpose is to gather opinions on the potential establishment of a dolphinarium on the island. Alongside this survey, we will also
utilize secondary data obtained from online research. The Caribbean Tourism Organization and the Curacao Tourism Board have provided readily available statistics on their website. The variables to be analyzed include tourism arrivals, which will help to determine if the dolphinarium created a new market and if there has been an increase in visitors to the island. Additionally, we will examine tourist expenditure per individual to understand how much money each tourist is spending on the island.
This text discusses the importance of understanding public opinion and tourism expenditure in order to determine the success of a dolphinarium business. Data on tourism arrivals and expenditure from 1999 to 2006 will be collected and analyzed, including the period when the dolphinarium in Curacao began operating in 2002. By examining these trends and prospects, we can assess the impact of the dolphinarium on arrivals and expenditure.
Secondary Data Analysis
Tourism Arrivals The data to be analyzed are the tourism arrival numbers from Curacao.
The purpose of asking about annual income is not merely for curiosity, but rather to investigate the relationship between income and spending habits. We will examine whether there is a positive or negative correlation between the two variables. Are individuals with higher incomes more likely to spend more on visiting a dolphinarium? Or do they spend less due to other priorities? Once we obtain these insights, we can analyze the frequency distribution to determine the average annual income of our visitors. This information will help us understand their spending preferences and set appropriate prices. Additionally, we aim to determine the average age group of our island visitors and assess their interest in a dolphinarium. Furthermore, we seek to gauge
their willingness to spend. Knowing the country of residence is crucial as our primary market consists mainly of North American visitors. However, what if individuals from other countries display a greater interest in a dolphinarium? Would it be financially viable for us? The data collected from this survey will serve as valuable guidance when making the decision whether it is advisable to establish a dolphinarium on this island.
Conclusion
Building a dolphinarium is a significant undertaking for both a company and a destination. To ensure that the impact of this marine park on the destination is not detrimental, it is crucial to conduct thorough research. Utilizing existing data from comparable destinations can greatly assist in this research. Although it may be challenging to determine whether the establishment of the dolphin park will positively or negatively affect the destination, conducting appropriate research is essential.
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