The Caribbean region is always a popular vacation destination, meaning tourism is perhaps the most significant sector in the economies of most Caribbean nations. A business plan competition launched by the Inter-American Development Bank’s Opportunities for the Majority initiative hopes to demonstrate that the Caribbean tourism industry can simultaneously improve both their businesses and conditions for the poor in their communities by engaging directly with base of the pyramid populations.
The “Tourism in the Caribbean: Making the Majority Count” competition calls for companies in the tourism sector to submit ideas for business plans that would incorporate members of low-income communities into their value chains. Companies from seven countries – the Bahamas, Barbados, Guyana, Haiti, Jamaica, Suriname and Trinidad & Tobago – are eligible to participate. Opportunities for the Majority’s Johnny Jiron adds, “We are looking for companies that not only are profitable and financially sound, but also contribute to the well-being of the local community and are friendly to the environment.”
There are many ways in which this can be achieved. For example, a company might start a program to train and hire people living in targeted low-income neighborhoods as resort staff, purchase produce from local farmers for hotel restaurants, stock nearby artisans’ crafts in gift shops, or contract with entrepreneurs like taxi drivers or tour guides.
Including the base of the pyramid in tourism industry business models is not only a socially responsible thing for companies to do, it also means that more of the money spent by tourists will benefit the local community. Explains Jiron, “When locally produced goods and services are brought into the supply chain, tourism has a substantial impact in the local economy that is positive for everyone in the industry and beyond.”
Opportunities for the Majority is collecting submissions until April 9, 2010. After that, the companies with the ten most promising business plans will be invited to participate in a workshop where they will develop their business plans further. The finalists will present their full plans to a panel of independent judges on July 23, 2010. Up to three finalists’ projects will then be selected to receive the services of a consulting firm to help refine their business plans in the hopes of attracting financing.
For more information on applying to enter the business plan competition, see the official announcement page on the Inter-American Development Bank's site – and watch the MajorityMarkets.org blog for updates as the selection process moves ahead.
