Posted at 10.07.2018
One of the latest buzzwords that contain come into basic usage in the world of travel and leisure is that of "Integrated Resorts". Over the last two decades, lots of large tourist integrated resorts have been developed across the world, a lot of which have become very popular holiday destinations. The development in tourism produced by these involved resorts has brought significant economic and social advantages to their respective countries, including increased foreign exchange earnings, immediate and indirect career. In addition, the resorts' development has activated local and regional development, pushing new local industries and international trade. The success of the built-in resorts can be essentially related to the adoption of an integrated approach to their development, caretirl planning and execution that took under consideration regional environmental, monetary and socio-cultural factors. This kind of way helps minimise environmental, socio-economic and marketing problems often associated with uncontrolled tourism development.
The development of built in resorts is continuing to grow rapidly over the last 2 decades also as a reaction to the proliferation of unplanned beach resorts. In the supply part, many governments have increasingly considered integrated resort developments in an attempt to enhance the well-being of the local population by creating iobs and increasing income, and private shareholders have seen built-in resorts as a way to maximise their earnings, while on the demand side, statistics are not on the relative proportion of tourist demand for included resorts.
In the framework of globalisation and widening international vacationer markets, it is recognized that built in resorts offer great opportunities to guests for leisure, entertainment and sports, but due to the difficulty in assessing the impacts that may result from the development of\ an integrated resort, as programs for built in resorts are developed by consultancy iiirms and private buyers that rarely publish or divulge their 'secrets' before hotel procedure, most research has been conducted only following the construction of built-in resorts.
The idea of involved resorts arrived to plrominence in Mauritius following the successful approval ofthe environmental impact analysis report and development of Tamarina Golfing, Spa and Beach Club that is the first integrated holiday resort in Mauritius.
1. 1 Travel and leisure Industrv in Mauritius
Mauritius has significant natural advantages as a holiday destination such as beautiful coral beaches, warm clear lagoons, colouriixl reefs, picturesque mountains, a subtropical environment, a southern hemisphere location, an atmosphere that is exotically different, yet safe and steady, and folks who are friendly and welcoming. These Advantages have been exploited with attractive well run hotels with good amenities, immediate and reliable air services, useful encouraging infrastructure and effective marketing as an up-market quality destination. It is therefore hardly amazing that visitor arrivals have been rising by more than 8 percent per year and the tourism industry has become one of the very most dynamic areas of the current economic climate, accounting for 19 % of gross export cash flow and providing work straight and indirectly for approximately 50, 000 people.
However, there are problems. Average spending per visitor has not been going up as fast as hoped, and there were some signs or symptoms of effects at tourist quantities and behaviour. Infrastructure constraints are suffering from by means of congestion at peak times at the air-port and inadequate efiluent treatment leading to deterioration in normal water quality in a few of the lagoons_ Inside the longer term, there will be more general environmental constraints, in the form of limits to the capability for absorbing increasing numbers of visitors in a tiny densely populated country with a finite length of beaches and a sensitive coastal ecology. It'll be necessary in fixture to place a roof on the amount of tourists in order to protect the surroundings and, indeed, the fixture of the travel and leisure industry itself Mauritius has been very successful in appealing to foreign direct investment (FDI) in the 197O's. However there's been a decline in the development of FDI because the mid-19S0's, especially in the making sector. However, FDI expansion has started to pick up again since 2005, led by the travel and leisure sector, specially the Integrated Resort Structure as illustrated below.
Foreign Direct Investment by Sector, 2003-2007
2003 2004 2005 2006 2007
Export Processing Area 2. 7 8. 7 3. 6 2. 8 2. 2
Tourism 3. 4 4. 2 18. 2 83. 0 144. 0
Banking 46. 0 10. 9 15. 4 111. 0 70. 0
Telecommunications 0 1. 3 5 _ 9 1. 4 0. 5
Other 16. 8 37. 8 52. 0 30. 7 64. 3
Total 68. 9 62. 9 95. 1 228. 9 281. 0
As illustrated above, travel and leisure has became a credible option source of forex earnings. However the country will not be able to cope with a policy of mass tourism which is unsustainable. Also the feature of the united states, which really is a Small Island Producing State governments (SIDS) facing special cons associated with small size, insularity, remoteness and proneness to natural disasters, restricts the prospect of tourism development.
Hence since the economy of the united states is highly vulnerable and the totnism industry having reached its having capacity, therefore sustainable travel and leisure development is very instrumental. Mauritius has therefore resorted to the rejuvenation of its travel and leisure life routine, as this is nearing or has already reached the stagnation stage, through the introduction of an alternative solution luxurious product known as 'Integrated Holiday resort', as illustrated below.
This good mixture of travel and leisure and real estate development has been on top of government'sagenda and has resulted in government's treatment in the travel and leisure sector with the twin purpose of travel and leisure rejuvenation and FDI increase.
1. 2 Aims of study
The development of the travel and leisure industry in Mauritius has been considered as an important financial diversification tool for the nation. Realizing the importance of the tourism industry in the economic development of Mauritius, authorities has initiated the Integrated Vacation resort Scheme. Which means goal of this dissertation is mostly to conduct an investigation regarding development and impacts of integrated resort in Mauritius.
1. 3 Objectives of study
This research purports to investigate the predicted and current socio-economic and environmental impacts of designed resorts in the Mauritian framework. In particular, this research will aim to achieve the next objectives:
To investigate the framework of integrated holiday resort development and its own aims and aims in the development of Mauritius travel and leisure.
To know the criticisms about the initiation of included hotel in Mauritius.
To determine the positive impact of designed resort in terms of society, current economic climate and environment of Mauritius.
To know the negative impact of involved resorts in terms of society, economy and environment of Mauritius.
To recommend rules for sustainable integrated hotel development and minimizing negative impacts of integrated hotel development.
This good mixture of travel and leisure and real real estate development has been on top of government'sagenda and has led to government's treatment in the tourism sector with the twin aim of tourism rejuvenation and FDI increase.
1. 2 Aims of study
The development of the travel and leisure industry in Mauritius has been considered as an important financial diversification tool for the nation. Realizing the value of the tourism industry in the financial development of Mauritius, government has initiated the Integrated Hotel Scheme. Which means goal of this dissertation is mostly to conduct a study regarding development and impacts of integrated holiday resort in Mauritius.
1. 3 Objectives of study
This review purports to investigate the expected and current socio-economic and environmental influences of built-in resorts in the Mauritian context. Specifically, this analysis will aim to achieve the next objectives:
0 To research the framework of integrated vacation resort development and its own aims and objectives in the introduction of Mauritius tourism.
0 To know the criticisms about the initiation of integrated vacation resort in Mauritius.
0 To determine the positive impact of built-in resort in conditions of society, economy and environment of Mauritius.
0 To learn the negative impact of included resorts in terms of society, economy and environment of Mauritius.
0 To recommend rules for sustainable designed holiday resort development and minimising negative influences of integrated vacation resort development.
REVIEW OF LITERATURE
2. 1 Travel and leisure Impact
Mauritius has built its successful up market travel and leisure sector on a fragile and prone natural learning resource. The expansion of the traveler industry in an unplanned manner has led to the following negative influences:
»' High size tourism has made an enormous impact on elements of the coast. There are plenty of examples of nearly every imaginable kind of tourism impact on the environment, including the destruction of coastal wetlands and other delicate environments, organic and natural pollution and coastal erosion for example. Flic en Flac.
0 You can find problems associated with monitonng and auditing scheduled to institutional weaknesses. Most casual tourists bring their own equipment and are relatively self-contained, thus bringing in minimal cash into the country while making a large impact on the enviromnent for example travelers from Reunion and other islands of the Indian Ocean. y
2. 2 Travel and leisure Environmental Impacts
The natural environment is under increasing menace hom unmanaged human activities, and in examining the effects of tourism, it is vital to look at a holistic view that recognises both immediate and indirect implications of tourism activities and their intrinsic website link with other areas (Glenn Kreag 2001). Development in the tourism sector may create new effects on the coastal area but also raise the power of existing influences by inserting additional burdens on resources that are already overextended. Because of this is a feature of human settlement and not simply of tomism. However, where this is exacerbated by a substantial increase in the number of visitors and folks utilized within the industry, the travel and leisure sector must take responsibility for providing solutions to the causes of environmental degradation. The major environmental influences discovered and theiR immediate consequences on tourism development as well as impacts associated with activities that support the travel and leisure sector are highlighted as:
* Water Resources and River Ecosystem
* Estuaries and Wetlands
* Ground Erosion and Sedimentation
* Waste Removal and Pollution
* Coastal Erosion
* Marine Resources
* Recreational Activities
2. 3 Tourism Economic Impact
In the producing world, economic impacts frequently outweigh other concerns as it pertains to tourism development. The need for forex and the simplicity by which the industry can be developed in accordance with other areas, makes tourism development a national priority (Glenn Kreag 2001), It is therefore important to have a clear knowledge of the tourism industr`y's economic influences, particularly because not absolutely all of these are positive. These effects are the most important impacts, occupations, influences on the labour make, inflation and the availability of essential resources and over-reliance on travel and leisure.
2. 4 Classification of Impact
There are several ways of looking at economic impacts. The next classification of influences displays the multi-sectoral nature oftourism:
Primary Impacts come up from the inflow of international cash because of this of visitor expenses. They are fairly well registered by lenders and businesses such as airlines, hotels and restaurants. These are relatively easy to measure.
Secondary Impacts happen when the money inflows penetrate to other industries. This happens when the travel and leisure industry passes a few of its business to other businesses, for instance, when an air travel company agreements to provide on-board meals. Wages received by people involved in sport services also get into this category.
Tertiary effects occur when currency flows are not the consequence of tourist expenditure, but when the practise of tourism resulted in other opportunities. For instance, a filmmaker on holiday in Mauritius may decide to use that country as the venue for next film. Or even a visitor may be so enchanted with the sandy beaches and blue lagoons of Mauritius that he or she buys a bungalow.
From these, it can be seen that the total financial impact of travel and leisure is very difficult to compute indeed, but it would be wise to commission rate a thorough analysis of the travel and leisure industry results. For instance, the high percentage of foreign employees in the tourism industry leads to wages ending up going to their home countries which reduces the net advantage to the web host Country.
2. 5 Travel and leisure Social and Cultural Impacts
The socio-cultural effects of tourism are simply the consequences of either the development of the tourism industry or the occurrence of the travelers (and the characteristics of the tourist-host relationship) (Sharpley 1994). The desk below contains a comprehensive list of these impacts, following a classification designed from Pizam & Milman (1984), and Burdge (1994). The communal and cultural impacts of travel and leisure can be huge, and unfortunately many of them are negative. They include:
0 An intrusion of american culture in to the host people. The tendency is often for local people to attempt to emulate westem consumerism. In new spots, local populations are often not aware that many travellers work hard the majority of the year and then devote some time off for leisure. Instead, the travelers appear to have a lifestyle that is only enviable and the enticement to imitate them in conditions of- dress or personal resources such as watches, sunglasses, etc, is great.
0 Value systems may be eroded, specifically in poor areas where vacationers is seen as an possibility to make a fast buck. This might lead to fraud prostitution, and sometimes violent crimes.
Local customs tend to be not respected by tourists who may be unaware or insensitive to them. It is critically important that the government and other role players make holidaymakers aware of such issues;
Valuable cultural artefacts are olten bought by travelers, and shipwrecks are regularly plundered.
The table below show a few of the main impact of tourism on the country
IDIPACTS IDF TOUllISl\I
Impacts on population
(immigration, no emigration)
Immigration of seasonal workforce
(positive in case there is lack of labour - negative in case there is unemployment)
Presence of second home owners
(positive if involved in community life - negative if not involved)
Changes in society distribution (by years, sex, contest, ethnicity)
Urbanisation of population
Changes in labour market
New jobs Seasonal jobs
New types of careers in tourism Unskilled jobs
Increased value of knowledge, dialect Insufficient labour in traditional sectors
Economic diversification Increased financial inequality
Stimulation of underdeveloped regions I
Changes in community framework, characteristics
Income from tourism Increase in the number of temporary
(not so committed)
Growing importance of service sector i Conflicts with second home owners
Stimulation of interpersonal, cultural life Issues in acquiring real estate
Increase in the worthiness of land Increase in real real estate prices s
Development of infrastructure Increase in prices, intlation
Wider chance of shopping Loss tiw
Improvement in the vacation spot image ' Transformation of value systems
Increase in residents' satisfaction in their Spiritual conflicts
settlement l (with second property owners, with travellers)
Decrease of prejudices, disappearance of Overdependence on tourism
stereotypes, upsurge in tolerance
Transformation of communal stratification
(owners of totuist resources surge, owners of traditional resources fell)
Impacts on specific and family level
Increase in sociable mobility i Disruption of cultural networks
p (especially among the young and women)
i Improvement in leisure opportunities ' Changes in the rhythm of life
_ Meeting new people, wider public Loss of need for liiendship
Improvement in the grade of life Upsurge in perception of danger
(scheduled to increased criminality)
Language skills Xenophobia
Income hom totuism Commercialised hospitality
Improvement in attitudes toward work, Deviant behaviours (alcoholism,
politeness, manners prostitution,
I gambling, substance abuse vandalism)
Local vocabulary suppressed
Increased intimate permissiveness
Transformation of family structure
Transformation of consumer habits
Changes in real estate conditions
Transformation of behavior (demonstration impact)
Impacts on cultural and natural resources
Protection of unusual resoufces of Disappearance of local habits, traditions
outstanding beauty <\
Revival of local arts, crafts, cultLu'al Commercialisatknl of culture
Revival of local architectural customs Littering, pollution
2. 6 Conception and Development of Integrated Holiday resort in Mauritius
Mauritius has during modern times been facing serious economic problems due to the need to comply with free trade contracts and globalisation. This has severely affected sugars and textile exports, two major pillars of the natio al overall economy, and therefore our balance of payment. Despite serious economical problems, Mauritius has been successful in realising a remarkable economic transformation anticipated to a varied economy resting on other pillars like financial and business services sector and that of travel and leisure, hospitality and property development. Hence the introduction of the Integrated Resort Scheme is seen as an monetary strategy.
As a nationwide strategy the Mauritian administration has come with the benefits of the IRS under the Investment Campaign Action 2000 through the Investment Campaign (Integrated Resort System) Restrictions 2002 to be able to boost up foreign direct investment which really is a necessary aspect in the battle to compensate for the decrease in sugars and textile income inflow. It has been a strategic attempt with the twofold goal, firstly to draw in more foreign direct investment and secondly to reach a far more favourable balance of repayment. Hence just lately Hospitality and Property Development have emerged, attracting significant investment fiom both local and international buyers under Investment Advertising Polices 2007 which promotes the Real Property Development Scheme comprising of IRS and RES (Real Estate Scheme) assignments which are expected to be implemented in the next few years. The objective of the Integrated Resort Plan (IRS) is to catch the attention of mainly high net-worth non-citizens into Mauritius by allowing them to acquire luxury villas of international status and at the same time providing high-class amenities and facilities including course, marina, individual pool, catering, nautical and other sport facilities and health centre within the boundaries of the integrated holiday resort area. The acquisition of a villa for domestic purposes with a foreigner under the Design will allow the foreigner & his family to reside in in Mauritius as long as he holds the property.
Whilst the Investment Promotion Function 2000 expresses government's political will to expand the monetary sector by creating the Plank of Investment, the Business Facilitation (Miscellaneous Procedures) Take action 2006 enhances business opportunities
towards IRS assignments. The Investment Advertising Take action 2000 and Investment Promotion Regulations 2007 provide the legal framework for guidelines in regards to to the execution of these tasks.
The Finance Take action 2007 unveiled amendme ts to the next Works of Parliament to be able to modify the promotion, execution and marketing of IRS assignments in Mauritius:
0 Investment Promotion Act
0 Land (Tasks and Fees) Act
0 Morcellement Act
0 Non-Citizens (Property Restriction) Act
0 Registration Obligation Act
» Sugar Industry Efiiciency Function 2001
0 Environment Protection Act 2002
Here under is a set of IRS projects currently being implemented:
Solares at Flic en Flac, Villas Valriche, Les Villas Telfair, Les Salines, La Balise Marina, Domaine de l'Harmonie, Barachois villas and River Golf club. A few other projects have obtained their letter of approval recently and upon conformity to conditions laid down they'll receive their IRS certificates. In some other cases the surroundings Impact Assessment (EIA) record, which analyses the environmental, biophysical and sociable impact of any proposed development, has been scrutinised in order to ensure that the proposed development is sustainable.
The Integrated Holiday resort Scheme provides:
» for the development of luxury residential models of international sitting on freehold land of more than 10 hectares to be sold at a price exceeding USD 500, 000
» high-class leisure and commercial amenities and facilities designed to enhance the domestic units. These can include but not limited to, course, marina, nautical and other sport facilities, retail center, restaurant and wellbeing centre.
0 day-to-day management services such as security, maintenance, gardening, sound waste disposal and home services have to be provided to the residents.
0 for a communal contribution in terms of cultural amenities, community development and other facilities for the good thing about the neighbouring community where in fact the IRS project is implemyed/
However the following conditions concerning the eligibility for the acquisition of home property from an IRS Company have to be complied with:
(a) a non-citizen of Mauritius
(b) a citizen of Mauritius
(c) an organization registered as a foreign company under the Companies Act 2001
(d) a company incorporated under the firms Act 2001
(e) a Socit, where its deed of creation is transferred with the Registrar of Companies
(l) a trust, where in fact the trusteeship services are provided by a qualified trustee qualified by the Financial Services Commission
It is instrumental to look at the importance and justification of the IRS in Mauritius liom a clinical viewpoint. Integrated resorts initiatives and development can be mainly viewed from the macro-economic perspective of international capital inflow (FDI) while on the other hands they could be explained from the perspective of the market failure concept which includes necessitated the rejuvenation process of the resort cycle in Mauritius.
The strong linkages of travel and leisure and IRS with other economical sectors ought to be the key in realising that tourism and services are a powerful factor for economical expansion' and work. This can obviously be seen by the type of travel and leisure and permanent residence needs, that is to say, as a business it calls for goods and services such as: transport, food, fuel, normal water and electricity, crafts, head to services, entertainment, communication, etc. These linkages have always had a positive economic impact in Mauritius. Of coLu'se travel and leisure and HKS development not only gain the private sector
but contribute significantly to federal revenues by means of sales, business, corporate and business, personal, departure and of course, transfer levies.
2. 7 THE EXPLANATION for Government Treatment in Mauritius Tourism Sector
Continuing globalization of competition has given confirmation to the market-oriented view entertained by the Mauritian federal which justifies its intervention in the travel and leisure sector by creating the integrated resort scheme to favour our export focused strategy. It is believed that marketplaces should be given primacy in the creation and syndication of goods and services while government should supply the proper institutional infrastructure for market segments to function properly. In circumstances of ket failure authorities should intervene to correct any imperfection and involvement is also justified because a lot more important the sector is to the market, the greater involvement should be in order to ensure socially appropriate aims that foster ecological development.
The public sector can "exercise varying degree of effect over the direction of tourism development by functioning on both the demand side and supply area" (Akehurst et al, 1994). In Mauritius the demand management regulations and the management of its source side must be observed to visit in pair with government's macro-stabilization insurance policy so that they can reach circumstances of equilibrium. Micro regulations have to be endorsed to make marketplaces function better. Govemmenfs political structure and the performing of rivate companies have to go in couple as well, Barriers and rigidities should be removed so that new assignments like integrated vacation resort development could function more
efficiently. Without appropriate macro-economic guidelines market-oriented jobs in the tourism sector must struggle for success. Thus the role of administration in ensuring a better economic environment is of essential importance to boost earnings in the lCOl1I`lSII1 SCfO!`
The Mauritian government had taken actions to improve market failure in the economic and tourism sector by rntroducrng the integrated resort development that is the integrated resort system Market failure arises from a situation where the 'riee market does not guarantee environmental cover and community involvement rn development process Since the travel and leisure sector rn Mauritius rs not an integrated