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Choosing a middleman - the role of intermediaries in community tourism

Community-based tourism encourages local people to play a greater role in the management of tourism activities. This agrees with the key development models of participation, sustainable livelihoods and poverty alleviation. It has attracted the attention of governments, non-governmental organisations and communities themselves. As a commercial venture, it may also interest the private sector. However, in common with other rural livelihoods – such as agriculture - producers are often isolated and lack access to markets.

Research from the University of East Anglia, UK, studies the problems facing small-scale tourism ventures. One problem is distance from markets, both nationally and internationally. In addition, they have to deal with ‘cultural distance’, meaning that community-based tourism (CBT) providers may have little understanding of what tourists want and expect. To bridge gaps in market information, business skills and product design, intermediaries play a key role.

Intermediaries belong to one of four sectors:

Private sector companies operate in a competitive environment. They often have good market information, marketing skills and networks. They partner with CBT ventures to offer customers a new type of tourism and to improve their social responsibility.
Membership associations of CBT groups form a collective group for the purposes of marketing and capacity building.
The public sector may support CBT by marketing, training and providing market information through tourist boards, and by improving the policy environment.
Some non-governmental organisations (NGOs) see CBT as an additional rural livelihood and support it with capacity building, resources, institution building and facilitating partnerships.

Each sector has an important role to play, but each is also restricted in its potential as an intermediary. Private companies are profit motivated, so they are only likely to commit to CBT ventures making money. A private sector partner is likely to have power in comparison with the community, and the community will rely heavily on their integrity and successful marketing. NGOs are not profit motivated and so can commit to ventures with lower profit making potential. They are more likely to focus on equity and participation of the community, but often lack the commercial experience necessary for success.

Membership associations can be useful where several CBT ventures are established together, but since membership fees are often low, they are not always self-sufficient financially. Associations usually rely in part on donor funding, and like NGOs, often lack commercial experience and skills. Governments play an important role regarding policies, but tend to focus on large-scale tourism developments. There is not always a long-term commitment to CBT.

In most cases, more than one intermediary will play a part. Who takes the lead role depends on the context:

In ventures with good commercial potential, the private sector leads, while NGOs assist with capacity building.
Where CBT is marginal in profit terms, and a slow process of capacity building is necessary, NGOs may be the best partner, bridging the gap to the private sector and its access to markets.
Membership associations play a useful role in representing CBT ventures, but need the support of NGOs, the government and the private sector.
Governments need to make resources (such as national tourist boards) accessible to CBT operations, while ensuring that systems of licensing or tourism standards do not act as barriers.
CBT can potentially make a useful addition to rural livelihoods. To succeed, it must be linked to integrated rural development and considered part of a range of rural activities. A variety of intermediaries are necessary, who can provide different expertise and put the long-term interests of the community at the centre of their actions.

Source(s):
‘Community Ventures and Access to Markets: The Role of Intermediaries in Marketing Rural Tourism Products’ Development Policy Review, 22 (5): 497-514, Blackwell Publishing, by K. Forstner, 2004.

id21 Research Highlight: 25 January 2005

Further Information:
Kathrin Forstner
School of Development Studies
University of East Anglia, Norwich
NR4 7TJ
UK

Tel: +44 (0) 1603 592807
Fax: 44 (0)1603 451999
Contact the contributor: k.forstner@uea.ac.uk

School of Development Studies, University of East Anglia (UEA), UK

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