The belief that large corporations benefit little from
developing the supply capacity of local communities is false. True,
there are a number of non-quantifiable benefits, which can make it
difficult to justify an investment. However, consider the cost and
time involved in developing a marketing or image-building campaign.
Many corporations are finding that it pays off in terms of
reputation and cost savings to be a responsible corporate citizen
by investing in the communities where they work.
Firms that might be associated with environmental damage, such as
mining, oil and chemical companies, have discovered the advantages
of investing in local communities. For example, Shell Corporation
invests largely in education and housing. And some mining companies
have paid for the restoration and renovation of historical
sites.
Tourism is no different.
Tourism sector is shifting
Recently, the tourism sector shifted from developing resorts with
imported qualified personnel and supplies to training local people
and improving the community's supply capacity. It is a mutually
beneficial relationship for both communities and resort
areas.
The Costa do Sauípe in Bahia, Brazil is the largest tourism resort
in South America. It was financed by the pension fund of the Banco
do Brasil. The Hotel Sofitel, based in the resort, is an ITC
partner in a project to reduce poverty through community-based
tourism. It is developing supply capacity in seven areas, of which
two are services - cultural activities and waste management. Other
services hold potential, including transportation, cleaning and
laundry, water sports, language classes, and printing and
publishing.
Interview with Christophe Caron, General Manager of Hotel
Sofitel in Costa do Sauípe:Q: What made the hotel decide to participate in the ITC
project in Costa do Sauípe?A: Since 2000, Sofitel has operated two hotels in
this resort with 600 rooms and a large conference centre. The first
problem we faced was the supply of qualified personnel. We had to
hire in Salvador, 80 kilometres away. The cost of transportation
was becoming a nightmare. Every day, the resort transported 3,000
people, which cost more than workers' salaries did. We discussed
this issue with Banco do Brazil and together decided to create a
special project to better integrate the local community. ITC's
methodology on community-based tourism was identified and
implemented in the Berimbau project.
Q: What are the benefits to the community?A: In 2001, Sofitel started training its own
staff. Because there are 55 different lines of work, this is a
complex task. Language skills are also necessary in the hotel
business. The population of 5,200 within a 20-kilometre radius is
poor and uneducated, with limited access to medical care. Sofitel
alone employs 500, providing workers and their families with
training and medical coverage. Our goal for 2005 is to employ
locally 70% of permanent staff and 50% of extra and seasonal
employees. Since we started, 250 Sofitel employees have been
promoted to higher positions, including some in management.
The resort has also raised awareness about the environment. The
local community collects, selects and recycles waste, some of which
is used in local agriculture. It is a small-scale development with
great potential. Sofitel serves 2 million people per year at this
resort. It would be an advantage to serve food that is free of
chemicals and pesticides.
Q: Does integrating the local community improve the quality of
service to your guests? If so, how?A: In the beginning, the satisfaction rate of
clients in both Sofitel hotels was very low: only 21%. Today, after
several years of training the local community, satisfaction rates
have gone up to 90%. This is an important achievement.
The local culture is very rich. We have invested in developing
local arts and traditions. The community now entertains guests with
dancing presentations of capoeira and ancient religious rituals and
supplies a variety of handicrafts that are sold at an open-air
market inside the resort.
Q: Has there been an increase of foreign guests since the project
started?A: When Sofitel opened its doors in 2000,
foreigners represented 5% of the clientele. We expect that number
to reach 45% by the end of this year. This is a success. In 2004,
Sofitel had 108,000 guests and a 34% increase in operating income.
This represents more jobs, more food, more culture, more
handicrafts and, overall, a better standard of living for the local
community.
The increase in foreign clients requires greater improvement in
services and in all the products on offer. This is part of learning
how to assess foreign taste and produce according to local
availability.
Q: What would be needed to develop any other potential
services?A: There are many opportunities, such as renting
beach equipment, massage and Portuguese language classes in local
households. However, the local community has not yet fully grasped
the importance of professionalism and long-term commitment. The
solution would be to link up with brand names and large national
corporations to provide these services. There has been talk about
producing local products such as natural shampoo and soap, but I
haven't seen any action. A five-star hotel will only supply these
to guests if there is a long-term perspective and professionalism
in producing and supplying local products.
Q: Do you have any suggestions on how to improve the project
outputs?A: First, the lack of technical skills must be
addressed. A local hotel school would improve the pool of workers
and decrease the dependence on external staff. The Brazilian
Government must understand that we are competing globally. Second,
a cooperative of extra and seasonal staff should be established,
which would help both hotels and workers to plan year-long
requirements. Finally, there should be a promotional strategy
element in developing such resorts: we are selling a destination,
not a hotel. The resort is competing with destinations such as
Cancún, Mexico and Mauritius. We must sell Brazil as a destination,
Bahia as the home state, Costa do Sauípe as the resort and finally,
Sofitel as the hotel.
Emmanuel Barreto (barreto@intracen.org) is a
Senior Adviser in ITC's Trade in Services Section.