Vanuatu's Tourism and Hospitality: A Case Study Report

This report analyzes the impact of tourism on the islands of Vanuatu, focusing on the economic benefits and challenges faced by the local communities. The report uses a case study approach, examining the role of P&O cruises and the flow of money into the islands, while also highlighting issues such as corruption and lack of local development. The analysis underscores the need for improved governmental initiatives, regulations, and the elimination of corruption to ensure that the benefits of tourism are distributed more equitably among the local population. The report also suggests potential solutions, including the implementation of strict laws, promotion of other economic activities, and cooperation between the government, local communities, and international partners like Australia to foster sustainable development and improve the quality of life for the people of Vanuatu. The assignment provides a comprehensive overview of the challenges and opportunities within the tourism sector of Vanuatu, emphasizing the importance of ethical practices and community involvement.

Running head: INTRODUCTION TO HOSPITALITY AND TOURISM
Introduction to Hospitality and Tourism
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1INTRODUCTION TO HOSPITALITY AND TOURISM
Answer 1
In the video, Vanuatu’s Broken Dreams, three small islands were covered, namely, Wala,
Efate and Pentecost. Vanuatu is a nation on the Pacific, consisting of few small islands. The
people of the islands are extremely poor and their economies are mostly dependent on the
tourism business. As seen in the video, the P&O cruises sail to Wala bringing the Australian, and
sometimes the Chinese tourists. The tourism business has flourished as the tourists spend money
on food, stay, souvenirs and entertainment activities, but the lives and economy of the locals
have not improved (SBS Dateline 2013). There has been some development in the island for the
foreigners but the locals are not benefitted from that. There is huge cash flow from the tourists,
but the money is not properly used. There is a proper toilet with running water in the island, but
that is meant for the tourists only. The locals expressed their need for a good toilet in every
home, running water for all, good health facilities and a school for the children with the proper
utilization of the money that is coming in. They do not know where the money is going or who is
taking all the money. Even if they know, they do not want to reveal. As per the government
official, everyone is corrupt. Hence, corruption is a big issue in the islands in Vanuatu. There is
no initiative from the local development committee or the government to improve the lives of the
people of Wala (Olszowy et al. 2015).
Answer 2
The P&O cruises offer holiday cruise packages to the beautiful islands of Vanuatu for the
people of Australia and other nations on the pacific. These cruises bring tourists to these islands,
which has helped in the development of the tourism business in Wala. Thus, the cruises act
ethically in the matter of development of the local economy of Wala and other islands. Due to

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tourism, the local people earn money by entertaining the tourists, selling souvenirs, renting the
boating and other activity services, renting hotels etc. (Buys et al. 2014). This is a huge boost for
the local economy, as this brings in money. Majority of the services exist only for the tourism.
However, the developments were made by the foreigners and not by the government of Wala or
Vanuatu. Hence, the developments are only focused towards to tourists, and not for the locals.
The ships of P&O can ensure the flow of money into the islands, but it cannot control the how
the money is spent on the development of the local economy.
Answer 3
The government of Vanuatu, local development committee of the islands and the local
people should be responsible for rectifying the issues. Corruption is the major issue in this case.
The money that is coming in from the tourism activities is not properly used for the welfare and
development of the local economy. Some people are stealing the money, but there is no effort
from anyone to rectify the problem. Everyone should come forward to stop the unethical
practices and improve the lives of the local people. They live in extremely bad condition in the
islands. They do not have toilet, running water and health and hygiene facilities. Children of the
island of Wala have to cross the water every day to go to a school. The number of tourists is
increasing every year, and the cash flow is increasing too. However, lack of governmental
initiatives and regulations, the corruption has increased and the money is not properly utilized.
Thus, people should eliminate the level of corruption if they want to improve their lives (Thomas
and Postlethwaite 2016).

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Answer 4
The government of Vanuatu could have made strict laws to curb the corruption in the
community, which would punish the unlawful people who steal the money. Proper programs and
planning could have been made and implemented to make infrastructural development for the
communities. This would have benefitted the tourism industry as well, and tourist inflow might
have increased. The government should form and deploy efficient people in the developmental
committee to implement the developmental programs without any corruption. They should
organize awareness programs for the local communities to promote other business opportunities
apart from tourism, just the way people of Pentecost do (Clarke 2015). The government of
Australia can also come forward to improve the economy of Wala and other islands of Vanuatu.
Australia and Vanuatu could go for agreements between them to promote the growth in Vanuatu.
Being a highly developed country, Australia could provide grants for development in Vanuatu,
but it has to be ensured by the government of Vanuatu that the money would be utilized in the
proper direction. It could enter into trade agreement for importing local products of Vanuatu
islands and exporting developmental products to them. It could also initiate some developmental
projects, especially the amenities in the islands, which would not only help in the growth of the
tourism facilities, but it would also generate employment for the local people. Thus, economic
condition of the islands would improve (Bedford, Siméoni and Lebot 2017).
Answer 5
To overcome these issues, firstly, all the people and the government should make efforts
to reduce the corruption in the community. They should ensure that the money that they are
earning through massive volume of tourists is not stolen. The government should make strict

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regulations to punish the corrupt people (Sun et al. 2017). Secondly, people should make an
effort themselves rather than waiting for the help from the government. The people of Pentecost
have adopted the right way. They have built school and new office building without waiting for
the government. Thirdly, they should also explore other economic activities to promote growth
and development of the economy and must not solely depend on the tourism activities to prosper.
Hence, there are many aspects of Vanuatu, which can be improved through less corruption and
cooperation from all the people along with the government (Addinsall et al. 2016).

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References
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