Solomon Islands Tourism Business Survey December 2020 - February 2021

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Solomon Islands Tourism Business Survey December 2020 - February 2021
Solomon Islands Tourism Business Survey

   December 2020 – February 2021

                                               Acknowledgement:
                                               The Solomon Islands Tourism Business Confidence
                                               Index would not have been possible without our
                                               partners.
                                               Thank you to Tourism Solomons for their support
                                               towards this project.
                   SOLOMON ISLAND GOVERNMENT   Your assistance is greatly appreciated.
Solomon Islands Tourism Business Survey December 2020 - February 2021
Background
   The Solomon Islands Tourism Business Survey and Confidence Index report presents results from an online tourism
    business survey conducted from December 2020 to February 2021. Over this three-month period, 152 businesses
    were contacted and 34 completed surveys were received - a conversion rate of 22%.

   The data presented in this report include: general business profile, staffing levels, membership, the business climate,
    and information on revenues, costs and economic linkages. The survey also gathers key information about how
    businesses are impacted by and are responding to the evolving COVID-19 situation and helps to understand the types
    of advice and support they value and need.

   In terms of ‘Main business focus’, 21 respondents are accommodation providers, 6 respondents are visitor activities
    and tours providers, and 7 respondents are focused on other tourism activities.

   The dataset is analysed to help us to present the ‘voice’ of the tourism industry and to gain insights into the impact of
    COVID-19 on the economy.
Solomon Islands Tourism Business Survey December 2020 - February 2021
Report Structure

                      COVID-19              Business   Revenue, costs
   Business profile              Staffing
                       impacts              climate     and linkages
Solomon Islands Tourism Business Survey December 2020 - February 2021
71% of respondents are Solomon Islanders

                                                          29%

                                                                        71%

                                                 Solomon Islander   Non-Solomon Islander

Note: based on total number of respondents 34.
Solomon Islands Tourism Business Survey December 2020 - February 2021
For those non-Solomon Islanders:
                 60% of respondents are Solomon Island residents

                                                                      10

                                                                30
                                                                                  60

                                               A Solomon Island resident
                                               Other
                                               A temporary resident or contract worker in Solomon Islands
Note: based on the number of respondents 10.
9 out of 10 respondents spend the majority of their time in Solomon Islands

                        100
                                    88
                         90
                         80
                         70
           Percentage

                         60
                         50
                         40
                         30
                         20                        12
                         10
                          0
                              Solomon Islands   Overseas
Two thirds of businesses surveyed have been operating in Solomon Islands
over 10 years

                     25                                                                         23

                     20       19

                                          15                     15
        Percentage

                     15
                                                       12
                     10
                                                                           8         8

                     5

                     0
                          0 - 5 years 6 - 10 years   11 - 15   16 - 20   21 - 25   26 - 30   30+ years
                                                      years     years     years     years
Most respondents (40%) are owner/operators, 33% Manager/CEO/Director

                 45
                             40
                 40
                 35                              33
                 30
    Percentage

                 25
                 20                                           18
                 15
                                                                       9
                 10
                  5
                  0
                      Owner and operator   Manager / CEO /   Other   Owner
                                              Director
Over two thirds (68%) have been in their current role for 10 or less years

                    40
                                         36
                    35      32
                    30
                    25
       Percentage

                    20
                    15
                                                      10                                       10
                    10                                          6
                     5                                                    3         3
                     0
                         0 - 5 years 6 - 10 years   11 - 15   16 - 20   21 - 25   26 - 30   30+ years
                                                     years     years     years     years
Accommodation (62%) and Activities/Tours (18%) dominate the sample

                           6%
                      6%

                 8%                           Accommodation provider

                                              Visitor activities and tours

                                              Other business sector
                18%
                                  62%         Food and beverage services

                                              Retail
Accommodation:
   Resorts, Ecolodges and Hotels account for 75% of accommodation
   responses

                                             Resort                                           35

                                          Eco lodge                                25

                                              Hotel                       15

                                              Motel                 10

     Guest houses / Island hosts / Bed and Breakfast           5

                               Serviced apartments             5

                                  Tourist bungalow             5

                                                       0   5       10    15 20 25       30   35    40
                                                                          Percentage
Accommodation:
   Four in five accommodation respondents are aware of the ‘Minimum
   Standards and Classifications for Tourism Accommodation’ programme

                     90
                          80
                     80
                     70
                     60
        Percentage

                     50
                     40
                     30
                                                20
                     20
                     10
                      0
                          Yes                   No
Comments about the ‘Minimum Standards and Classifications for
         Tourism Accommodation’ programme focus on the following:

                                   Significance of the programme                                                              64%

                                                         Financial support                                      43%

                                                         COVID-19 impact                                  36%

                Programme support, e.g., training support,
                                                                                              21%
                         authorities support

                   Accommodation operators' involvement                                 14%

                                   Flexibility and appropriateness                      14%

                                                                             0%   10%    20%        30%   40%     50%   60%    70%
Note: n = 14.
Note: Multiple responses, therefore total does not add up to 100%.
Comments on ‘Significance of the programme’ (64%)

• A good initiative.

• This programme is a very vital aspect of this industry the Tourism industry. It will
  help to improve the standard of the present situation to a Minimum standard
  which will attract tourist both foreign and local especially in terms of
  accommodation with the facilities and also the recommended measurement of
  building sizes and rooms, dressing codes, transport and the overall hospitality that
  suppose to be provided.

• I'm fully aware of the Minimum Standards and Classifications For Tourism
  Accommodation programme. In my view it is a very vital aspect of this industry
  especially when it comes to guideline regarding the types of facilities, types of
  bungalows with their recommended measurements of the room sizes, dressing
  codes and the overall hospitality service to be provided by staff.
Comments on ‘Significance of the programme’ (64%)

• I think they are necessary.

• This programme plays a very vital role to the improvement of the present
  standard of our business to a much higher level mainly to meet the Minimum
  Standard which will stimulate our tourist both local and overseas.

• It is in the best interest of the industry that minimum standards was introduced.
  Without such standards, our efforts to sell this country as a competitive
  destination will be a waste of time and resources.

• The Minimum Standards is good.
Comments on ‘Financial support’ (43%)

• Another issue is the financial back up of responsible authorities to keep this
  programme rolling.

• Needs financial backup.

• Some form of incentive need to be given to businesses who need to upgrade to
  meet minimum standards.

• A good initiative but responsible ministry(s) need to help operators financially and
  by way of training to achieve the required minimum standards and classification.

• Also one of the contributing factor was lack of financial backup from responsible
  authorities to kick start this programme.
Comments on ‘COVID-19 impact’ (36%)

• At present I'm finding it really hard to roll out or implement this programme
  because of financial difficulty especially with the effect of COVID-19 which really
  affects the business operation.

• At the moment there is no implementation of the programme due to the effect of
  COVID-19 which heat really hard on our shoes that really affect the operation of
  the business.

• This programme was not carried out due to the effect of COVID-19 which hit hard
  on our shores and really affects our business operation.
Comments on ‘Programme support’ (21%)

• And by way of training to achieve the required minimum standards and
  classification.

• Also the lack of support from responsible authorities to support this programme.

• However, existing operators need to be supported so that they can be able to
  upgrade to meet the minimum standards.
Comments on ‘Operators’ involvement’ (14%)

• The Minimum Standards are good but was done without consultation with
  accommodation operators. Some form of incentive need to be given to businesses
  who need to upgrade to meet minimum standards.

• Realistic requirements that we meet in most cases. COVID-19 has meant that we
  have been unable to finish our plan of achieving full compliance, but generally we
  have a high degree of compliance.
Comments on ‘Flexibility and appropriateness’ (14%)

• I feel it's about 50% appropriate.... More could be done

• For Resorts, Rest houses & Lodges in particular the base level is a very bare
  minimum. Generally to be financially viable the provider must have high enough
  standards to be able to charge a high enough fee to attract inbound clients and to
  air degree agents. From the base level up the standards are a bit too prescriptive
  at times seemingly not flexible enough to cater for the Solomon characteristics
  (e.g. Solomons is warmer than Fiji so running hot water may not be as important).
Visitor activities and tours:

    60% of activity/tour businesses are water-based activities providers

        Tour operator - water-based activities                                     60

         Tour operator - land-based activities                          40

                                                 0   10   20   30     40     50   60    70
                                                               Percentage
65% of all businesses surveyed have a secondary focus of some kind

                       70   65
                       60

                       50
          Percentage

                       40                      35
                       30

                       20

                       10

                       0
                            Yes                No
40% secondary focus activities are in the visitor activities and tours segment

                 Visitor activities and tours (e.g. museum, fishing
                                                                                                                             40
                                  tour, scuba diving)
                     Food and beverage services (e.g. restaurant,
                                                                                                                       35
                                         café, bar )
                       Transport (e.g. bus, car rental, ferry, yacht
                                                                                                               30
                                           tender)
                                                           Other business sector                    20

                                 Retail (e.g. shopping, handicraft sales)                   10
                      Equipment rental (e.g. diving, bikes, sporting
                                                                                            10
                                         gear)
                       Accommodation provider (e.g. hotel, motel,
                                                                                       5
                                        resort)
                                                                                   0       10     20         30             40    50
                                                                                                 Percentage of cases
Note: Multiple responses, therefore total does not add up to 100%.
97% of businesses surveyed usually operate all year round

                       100   97
                        90
                        80
                        70
                        60
          Percentage

                        50
                        40
                        30
                        20
                        10                     3
                         0
                             Yes               No
Honiara is the main location for businesses

                  50     45
                  45
                  40
                  35
                                    29
     Percentage

                  30
                  25
                  20
                  15                           13
                  10
                   5                                       3         3        3         3
                   0
                       Honiara   Western      Central   Malaita    Munda    Isabel Rennell and
                                 Province    Province   Province           Province  Bellona
                                 excluding                                          Province
                                  Munda
The majority of businesses (84%) do not operate in any other provinces

                         90                    84
                         80
                         70
                         60
            Percentage

                         50
                         40
                         30
                         20   16
                         10
                          0
                              Yes              No
Very few businesses (13%) have a head office located overseas

                         100
                          90                   87
                          80
            Percentage    70
                          60
                          50
                          40
                          30
                          20   13
                          10
                           0
                               Yes             No
Report Structure

                     COVID-19              Business   Revenue, costs
  Business profile              Staffing
                      impacts              climate     and linkages
67% of businesses say their revenues have been severely affected by COVID-19

                  70                                                                                 67

                  60

                  50
     Percentage

                  40

                  30

                  20                                                          17
                                                       13
                  10
                                3
                   0
                        Not affected at all     Moderately affected Majorly affected (26-   Severely affected (51-
                       (similar revenue to    (11-25% reduction from 50% reduction from     100% reduction from
                              2019)                2019 revenue)       2019 revenue)           2019 revenue)
The level of concern about the following business issues on a scale of 1
   (Not concerned) to 5 (Very concerned)

                      Virus related travel restrictions                                                         3.6
                           Increased cost of supplies                                                           3.6
                  Lack of cashflow to cover expenses                                                          3.5
                       General economic uncertainty                                                       3.5
COVID-19 related health concerns staff and customers                                              3.3
 Lack of consumer confidence overseas and domestic                                         3.2
                      Need to adjust price / discount                           3.0
                       Need to target other markets                           2.9
        Customers expecting refunds for reservations                    2.9
                                Lack of skilled labour           2.7
                Increased competition for customers             2.7

                                                          2.5   2.7    2.9           3.1    3.3         3.5           3.7
                                                                                    Mean
In what ways is the business adapting to COVID-19?

  Significantly reducing business size but continuing to
                                                                                                                               50
                         operate
          Just staying in business, with some adjustments                                                                43

                                          Looking at different markets                                          36
          Re-purposing / changing focus to other business
                                                                                                      25
                           opportunities
                                         Trying to get loans to survive                          21

   Business is in hibernation for the foreseeable future                              14

                                   Shutting down / closing business              7

                                                                     Other       7

                                                                             0   10        20           30          40        50    60
Note: Multiple responses, therefore total does not add up to 100%.                              Percentage of cases
Actions that the business has taken in response to COVID-19

                                            Reduced operating costs                                                                   78

                                                         Reduced staffing                                                        70
   Discounted products / services to attract different
                                                                                                                           59
                       customers
     Sought financial support from government / aid
                                                                                                                      56
                       organisations
                                                                      Other                   19

                                                   Increased borrowing                   15

               Suspending the use of assets (mothballing)                                15

                                                               Selling assets            15

                                                                                0   10    20       30     40    50      60      70    80   90
                                                                                                     Percentage of cases
Note: Multiple responses, therefore total does not add up to 100%.
Ways to improve the business in the longer term (beyond COVID-19)

       Actively looking for new / alternative opportunities                                                                             67
                                Asset maintenance / refurbishment                                                             44
                                            Business continuity planning                                                 41
                       Future planning / sustainability initiatives                                                 33
                                                             Strategic planning                                     33
                 Catching up on business administration tasks                                                       33
                 Developing local collaboration / partnerships                                                 30
                             Nothing just trying to stay in business                                 19
                                                Increasing online capacity                      15
                                                                         Other             11

                                                                                  0   10             20       30      40      50   60   70
Note: Multiple responses, therefore total does not add up to 100%.                                        Percentage of cases
Support that would help the business at this time

                          Help accessing COVID-19 related funding                                                       70

                                                           Marketing assistance                                   56

                       Reduction in compliance / regulatory costs                                            52

                                                        Sustainability planning                         44
               Business advice (continuity planning / strategy /
                                                                                                        44
                                  cashflow)
                                                 New product development                           37

              COVID-19 health and hygiene operational advice                                       37

                                                                         Other        19

                                                                                  0   20           40              60        80
Note: Multiple responses, therefore total does not add up to 100%.
                                                                                           Percentage of cases
Report Structure

   Business profile   COVID-19              Business   Revenue, costs
                                 Staffing
                       impacts              climate     and linkages
Solomon Islanders fill the majority of both full and part time roles

                   45            43
                   40       39
                                                     36
                   35                          31
                   30
      Percentage

                   25
                   20                                                18
                   15                                                     12         12
                   10                                                                      9

                    5
                    0
                        Solomon Islander   Solomon Islander       Non-Solomon      Non-Solomon
                             male              female             Islander male   Islander female
                                                Full time     Part time
77% of businesses have reduced their staffing levels due to COVID-19

                      90
                      80     77
                      70
                      60
         Percentage

                      50
                      40
                      30              23
                      20
                      10
                       0
                           Reduced   Same         Increased
Few businesses (7%) have problems finding staff but demand is low

                         100                      93
                          90
                          80
                          70
            Percentage

                          60
                          50
                          40
                          30
                          20
                          10   7
                           0
                               Yes                No
Over three quarters (77%) of businesses surveyed have staff training needs

                    90
                    80   77
                    70
                    60
       Percentage

                    50
                    40
                    30                             23
                    20
                    10
                     0
                         Yes                       No
Comments on ‘What type of training is needed?’

                                               Customer service                                                                      45%
                                           Sales and marketing                                                                 41%
                                            Food and beverage                                                27%
                                                 General training                                18%
                                             Healthy and safety                                  18%
                                     Finance and accounting                                14%
                Business management and operation                                          14%
                                                    Housekeeping                      9%
                              Technology and engineering                              9%
                                                               ICT skill        5%
                               Research and development                         5%

                                                                           0%        10%         20%          30%            40%       50%
                                                                                                       Percentage of cases
Note: n = 22.
Note: Multiple responses, therefore total does not add up to 100%.
Comments on ‘Customer service’ training needs (45%)

• General hospitality.

• Customer service training.

• Hospitality and greens keeping.

• Re-fresher on Hospitality courses.

• Dive guide training in customer service.
Comments on ‘Sales and marketing’ training needs (41%)

• Marketing and costing.

• Digital marketing.

• Sales skills.

• Training to upskill on Ticketing and Tour packaging.
Comments on ‘Food and beverage’ (27%)

• Anything that can advance us further, new techniques in cooking, baking etc, Food
  hygiene, customer service, barista techniques.

• Also need to upgrade staff cooking skills.

• Kitchen staff need training.
Comments on ‘General training’ (18%)

  • Staff that are industry ready.

  • Capacity Building.

  • Upgrading Skill.

Comments on ‘Healthy and safety’ (18%)

  • First Aid refresher.

  • Emergency response.

  • Food hygiene.
Comments on ‘Finance and accounting’ (14%)

  • Costing and budgeting.

  • Budgeting.

Comments on ‘Business management and operation’ (14%)

  • Train our cooks on how to manage and operate the kitchen.

  • Tourism operations.

  • Management and supervision.
48% of businesses surveyed are members of industry organisations

                 52                                 52

                 51

                 50
    Percentage

                 49
                       48
                 48

                 47

                 46
                       Yes                          No
SICCI, DOSI, and WPTA are the top three membership organisations

                              Solomon Islands Chamber of Commerce and
                                                                                                                           57%
                                           Industry (SICCI)
                                       Dive Operators Solomon Islands (DOSI)                              21%

                           Western Province Tourism Association (WPTA)                              14%

                           Institute of Solomon Islands Accountants (ISIA)                     7%
                         National Association of Inbound Tour Operators
                                                                                               7%
                                            (NAOITOs)
                                                                  Tourism Solomons (TS)        7%

                                                                                 Other         7%

                                                                                          0%         20%             40%   60%
                                                                                                    Percentage of cases
Note: n = 14.
Note: Multiple responses, therefore total does not add up to 100%..
Report Structure

  Business profile   COVID-19   Staffing   Business   Revenue, costs
                      impacts              climate     and linkages
62% of respondents agree with ‘I am confident the business will do
    well in the coming year’
             60

             50            48

             40       35
Percentage

                                                                                                    31               31
             30
                                                                              23          23
                                                   20                    20
             20                               15                    15
                                11                                                             12          12
             10
                                                         4
              0
                  Strongly Disagree (1)       Disagree (2)       Neither Agree nor          Agree (4)    Strongly Agree (5)
                                                                   Disagree (3)
                                          This business performed well in the last year
                                          This business is currently performing well
                                          I am confident this business will do well in the coming year
Respondents show some confidence that their business will do well in the
coming year, while current performance is very weak.

     I am confident this business will do well in the
                                                                                                    3.7
                      coming year

      This business performed well in the last year                               2.6

         This business is currently performing well                  2.0

                                                        1.0   1.5   2.0     2.5         3.0   3.5         4.0
                                                                           Mean
Respondents feel strongly that ‘Tourism is an important part of the national
economy’

            Tourism is an important part of the national
                                                                                                                   4.6
                               economy
     A good working relationship with Tourism Solomons
                                                                                                    4.2
                is of benefit to this business
     Minimum quality standards for the tourism industry
                                                                                              4.1
               are important for this business
        Members of local tourism business associations /
                                                                                              4.1
            networks are of benefit to this business
                          Compliance costs are too high                                    4.0

            Local tourism businesses work well together                              3.7
          Local businesses are supportive of the tourism
                                                                                   3.7
                             industry
                                                           3.0   3.2   3.4   3.6    3.8 4.0      4.2   4.4   4.6     4.8
                                                                                      Mean
93% of respondents agree with the statement of ‘Tourism is an
  important part of the national economy’
             90
                                                                                                                                78
             80
             70
             60                                                                                                                      55
Percentage

                                                                                                           48 44                                    46
             50
             40                                                                                                         37 38                  33
                                                                                  31        31                                                                31
             30                                                                        26             22                                  22             22
                                                19                           19                                    19
             20                                            15        15 11                       15
                      4                   7 4        4 4
             10
              0
                  Strongly Disagree (1)      Disagree (2)       Neither Agree/Disagree                 Agree (4)                Strongly Agree (5)
                                                                          (3)
                             Tourism is an important part of the national economy
                             A good working relationship with Tourism Solomons is of benefit to this business
                             Local tourism businesses work well together
                             Members of local tourism business associations / networks are of benefit to this business
                             Minimum quality standards for the tourism industry are important for this business
                             Local businesses are supportive of the tourism industry
                             Compliance costs are too high
‘Adapting the industry to respond to COVID-19’, ‘Targeting new
      visitor markets’ and ‘Raising awareness of tourism’ are priorities

               Adapting the industry to respond to COVID-19                                                       4.6

                               Targeting new visitor markets                                                     4.5

          Increasing awareness of the role of tourism within
                                                                                                               4.5
                       government agencies
       Increasing networking opportunities for local tourism
                                                                                                           4.4
                           businesses
                Increasing awareness of tourism among local
                                                                                                         4.3
                               communities

               Having direct international flights to Munda *                           3.7

                                                                3.0   3.2   3.4   3.6    3.8 4.0   4.2   4.4     4.6    4.8
                                                                                           Mean
* Note: Western Province responses mean value of this item is 4.6
‘Adapting the industry to respond to COVID-19’ is the top priority

                 70                                                                                                   64 62 64        65
                                                                                                                                           61
                 60
                 50
    Percentage

                                                                                                                                 39
                 40
                                                                                           28                31 31
                 30                                                               26
                                                                         19                          20 18
                 20            13                                                               15
                                                   8                          8        8
                 10    4 4                             4 4           4
                 0
                      Not at all Important Slightly Important (2) Moderately Important Very Important (4)            Extremely Important
                               (1)                                        (3)                                                (5)
                                     Increasing awareness of the role of tourism within government agencies
                                     Increasing awareness of tourism among local communities
                                     Increasing networking opportunities for local tourism businesses
                                     Having direct international flights to Munda
                                     Adapting the industry to respond to COVID-19
                                     Targeting new visitor markets
Report Structure

  Business profile   COVID-19   Staffing   Business   Revenue, costs
                      impacts              climate     and linkages
40% of businesses surveyed indicate an approximate annual turnover of
                  under SBD200,000 for their main business in the last financial year
             25

                                                      20
             20

                        15                                                                                                   15                    15
             15
Percentage

                                                                                                                 10
             10

                                        5                             5              5              5                                    5
             5

             0
                  Under SBD50,000   SBD50,000 -   SBD150,001 -   SBD200,001 -   SBD250,001 -   SBD500,001 -   SBD1.1m -   SBD1.6m -   SBD2.1m -   SBD3m+
                                    SBD100,000     SBD200,000     SBD250,000     SBD500,000      SBD1m         SBD1.5m     SBD2m       SBD3m
For 76% of businesses labour accounts for 20-40% of total costs
               60

               50                 48

               40
  Percentage

               30                               28
                                       24                                      24
                                                     20 20         20
               20   16 16                                                 16
                            12                                                                        12
               10                           8                8 8                       8          8
                                                                                           4
                0
                    0-19%         20-29%        30-39%       40-49%     50-59%       60-69%    70-79%      80-100%
                             Labour (wages and salaries)        Cost of goods sold      Other expenses
55% of businesses say over half of their non-labour expenses are supplied
by other Solomon Islands businesses
                20
                                                                 18                              18
                18
                16
                14       14

                12
   Percentage

                10                       9       9                                       9
                 8
                 6                                       5               5       5
                     4           4
                 4
                 2
                 0
                     0   1% -   11% -   21% -   31% -   41% -   51% -   61% -   71% -   81% -   91% -
                         10%     20%     30%     40%     50%     60%     70%     80%     90%    100%
Other comments focused on business challenges and the economic situation

                                                  Business challenges                                            64%

                                            Economic environment                         29%

                             COVID-19 and border restriction                       21%

                                                 Benefits of business        14%

                                                                        0%   20%             40%           60%         80%
                                                                                          Percentage of cases

Note: n = 14.
Note: Multiple responses, therefore total does not add up to 100%.
Comments on ‘Business challenges’ (64%)

• Facebook ban is going to negatively impact Tourism sector.

• Fragile tourism industry. Solomon Islands Govts have been diluting each
  operator's turnover by encouraging new entrants when the local tourism market is
  not growing. Very hard to compete with other countries when marketing is low
  key and flights are so expensive. Internal flights are prohibitive. Ferry boats to
  West are very dirty and overcrowded. Extractive industries are favoured over
  tourism due to commissions from large companies. We invested almost 3 million
  SBD over 6 years and made no profit to date.
Comments on ‘Business challenges’ (64%)

• Cost of running this business is too high. Rent & utilities are our main killers.
  Inconsistency in stock is also a big problem. Important ingredients needed run out
  all the time.

• Less Levies for Business owners and more promotions of these businesses in
  Europe.

• The prospects look bleak for tourism businesses in the Solomon Islands, especially
  the dive sector. Given the fact that no dive business to date got or will get
  assistance from the SIG ESP, it will be challenging given borders will remain closed
  for at least another 6 months. In addition, if it was not for the NZ/Solomon
  Airlines SITIDF, I am 100% sure I would not have been able to sustain the business
  this long.
Comments on ‘Economic environment’ (29%)

• The local economy is truly severely affected not just because of this current
  global pandemic.

• Those figures are for 2019. We have lost a lot in 2020 as we have had basically
  no income.
Comments on ‘COVID-19 and border restriction’ (21%)

• … until borders reopen things are likely to stay the same.

• In my own point of view, the local economy is truly severely affected not just
  because of this current global pandemic but also because of the unfair sharing of
  the COVID-19 funds by the government and the Ministry of Finance of Solomon
  Islands.
Comments on ‘Benefits of business’ (14%)

• This business provides employment which will lead to improving standard of living
  in the rural area. Participation of local communities/individuals for monetary
  benefit. Selling of products such as fish, vegetables, pork, chicken. By doing all
  these business activities within our local communities it will circulate revenue to
  our people.

• This business contributes a lot to our local economy by providing employment to
  people at the rural areas and in return for monetary benefit. Improves standard of
  living. Participation of local communities, individuals.
BREAKDOWN BY
 BUSINESS TYPE
‘Virus related travel restriction’ is the top concern by both accommodation
businesses and visitor activities and tours group
                                                                                                                                                      4.0
                         Virus related travel restrictions                                            3.0
                                                                                                                                                      4.0

                                                                                                                                        3.7
                          General economic uncertainty                                                3.0
                                                                                                                                                      4.0

                                                                                                                            3.5
                     Lack of cashflow to cover expenses                                                                           3.6
                                                                                                                           3.5
                              Increased cost of supplies                                                                            3.7
                                                                                                                                              3.8
                                                                                                            3.1
   COVID-19 related health concerns staff and customers                                                             3.3
                                                                                                                                                      4.0

                                                                                                      3.0
                          Need to target other markets                                       2.8
                                                                                                      3.0

                                                                                                      3.0
                         Need to adjust price / discount                                2.8
                                                                                                                  3.2
                                                                                             2.8
           Customers expecting refunds for reservations                         2.5
                                                                                                                            3.5

                                                                                             2.8
                                   Lack of skilled labour          2.2
                                                                                             2.8

                                                                                       2.7
                   Increased competition for customers                    2.4
                                                                                        2.8

                                                                                       2.7
    Lack of consumer confidence overseas and domestic                                                                                     3.8
                                                                                                                                                      4.0

                                                             2.0          2.5                      3.0                    3.5                       4.0
                                                                                       Mean

                       Accommodation provider           Visitor activities and tours               Other sector
Over half (54%) of accommodation businesses disagree with the comment
‘The business performed well in the last year’

                                         This business performed well in the last year
                50     47
                                                                         40
                40
                            33                   33
   Percentage

                30                                                                   26
                                                      20                                        20                 20
                20                                                  17                     17
                                                                                                          13
                10                           7                  7

                 0
                     Strongly Disagree       Disagree (2)   Neither Agree nor         Agree (4)        Strongly Agree (5)
                            (1)                               Disagree (3)
                            Accommodation provider          Visitor activities and tours        Other sector
80% of accommodation businesses disagree with the comment of ‘This
business is currently performing well’

                                         This business is currently performing well
               120
                                                                        100
               100
                80
  Percentage

                       60
                60          50
                40                              33
                                           20                      17               20
                20
                 0
                     Strongly Disagree     Disagree (2)    Neither Agree nor         Agree (4)     Strongly Agree (5)
                            (1)                              Disagree (3)
                            Accommodation provider        Visitor activities and tours     Other sector
Three in four (75%) accommodation businesses agree with the comment of
‘I am confident this business will do well in the coming year’

                               I am confident this business will do well in the coming year
                 60
                                                                      50                     50
                 50
                                                                                                       44
                 40
                             33                                  33
    Percentage

                                                                                  31
                 30

                 20                                                                     17                  17
                                                            13
                 10      6                 6

                  0
                      Strongly Disagree   Disagree (2)   Neither Agree nor         Agree (4)        Strongly Agree (5)
                             (1)                           Disagree (3)
                             Accommodation provider      Visitor activities and tours        Other sector
Business confidence is lowest among the visitor activities and tours grouping

                                                                                                            4.0
       I am confident this business will do well in the
                                                                                      2.8
                        coming year
                                                                                                    3.5

                                                                                2.5
        This business performed well in the last year                     2.2
                                                                                                  3.4

                                                                   1.8
           This business is currently performing well           1.7
                                                                                            3.0

                                                          1.5       2.0      2.5      3.0         3.5     4.0
                                                                             Mean
                    Accommodation provider           Visitor activities and tours       Other sector
The majority (88%) of accommodation businesses agree that ‘A good working
relationship with Tourism Solomons is of benefit to the business’

                         A good working relationship with Tourism Solomons is of benefit to
                                                   this business
                   80                                                                                 69
                   70
                   60                                                                                      50
      Percentage

                   50                                                                      40
                   40
                   30                                20
                   20          16                                   17 20          19 17                        20
                                                               12
                   10
                    0
                        Strongly Disagree   Disagree (2)       Neither             Agree (4)       Strongly Agree (5)
                               (1)                          Agree/Disagree
                                                                  (3)
                            Accommodation provider         Visitor activities and tours        Other sector
All accommodation businesses agree that being members of local tourism
business associations / networks brings benefits

                          Members of local tourism business associations / networks are of
                                              benefit to this business
                   70
                                                                        60
                   60
                                                                                   50 50                    50
                   50
      Percentage

                   40                                                                                  31
                   30
                                                                                           20                    20
                   20                                          13
                   10                        6
                    0
                        Strongly Disagree   Disagree (2)       Neither             Agree (4)       Strongly Agree (5)
                               (1)                          Agree/Disagree
                                                                  (3)
                            Accommodation provider         Visitor activities and tours        Other sector
Four in five accommodation businesses agree with the importance of
Minimum Quality Standards for their business
                       Minimum quality standards for the tourism industry are important for
                                                 this business
                70                                                                                    67
                                                                     60
                60
                50
   Percentage

                40                                              33                     33
                30
                                                           20                               20                  20
                20                           17                                                            17
                                                                                 13
                10
                 0
                     Strongly Disagree   Disagree (2)        Neither              Agree (4)        Strongly Agree (5)
                            (1)                         Agree/Disagree (3)
                           Accommodation provider       Visitor activities and tours        Other sector
Accommodation businesses (80%) feel that compliance costs are too high

                                             Compliance costs are too high
                  70
                                                                        60
                  60
                                                                                         50
                  50                                                                                  47
                                                                                              40
     Percentage

                  40                                               33            33
                  30
                                                              20
                  20                                                                                       17
                  10
                   0
                       Strongly Disagree   Disagree (2)       Neither             Agree (4)        Strongly Agree (5)
                              (1)                          Agree/Disagree
                                                                 (3)
                          Accommodation provider          Visitor activities and tours         Other sector
Both accommodation businesses and visitor activities and tours group
   rate ‘Tourism is an important part of the national economy’ first
                                                                                                                                 4.8
   Tourism is an important part of the national economy                                                                          4.8
                                                                                                        4.0
A good working relationship with Tourism Solomons is of                                                                    4.6
                                                                                                 3.8
                benefit to this business                                               3.6
 Minimum quality standards for the tourism industry are                                                               4.5
                                                                                     3.5
              important for this business                                               3.6
                                                                                                               4.3
                          Compliance costs are too high                                          3.8
                                                                                 3.4
       Members of local tourism business associations /                                                  4.1
                                                                                                                       4.5
          networks are of benefit to this business                                     3.6
                                                                                                   3.9
 Local businesses are supportive of the tourism industry                             3.5
                                                                       3.0
                                                                                                  3.9
            Local tourism businesses work well together                                    3.7
                                                                                 3.4

                                                           2.5      3.0         3.5               4.0                4.5           5.0
                                                                                Mean
                      Accommodation provider          Visitor activities and tours         Other sector
100% of accommodation businesses agree it is important to increase awareness
of the role of tourism within government agencies

                           Increasing awareness of the role of tourism within government
                                                     agencies
                    100
                                                                                                     80
                     80
       Percentage

                     60
                                                                                          40 40             40 40
                     40
                                   20                               20             20
                     20
                      0
                            Not at all    Slightly Important    Moderately       Very Important       Extremely
                          Important (1)            (2)         Important (3)           (4)          Important (5)
                            Accommodation provider         Visitor activities and tours      Other sector
86% of accommodation businesses say that it is important to increase
awareness of tourism among local communities

                            Increasing awareness of tourism among local communities
                   80                                                                                73
                   70
                   60
                                                                                                            50
      Percentage

                   50
                                                                                                                 40
                   40                                                 33
                   30
                                 20                                        20           17 20
                   20                                            13                  13
                   10
                    0
                          Not at all    Slightly Important      Moderately        Very Important     Extremely
                        Important (1)            (2)           Important (3)            (4)        Important (5)
                          Accommodation provider             Visitor activities and tours    Other sector
Accommodation providers are most likely to agree that COVID-19
adaptation is extremely important
                                    Adapting the industry to respond to COVID-19
               90
                                                                                                        80
               80
               70
                                                                                               60
               60
                                                                                          50                  50
  Percentage

               50
                                                                                                                   40
               40
               30
               20                                                                  13
               10                         7
               0
                      Not at all      Slightly Important      Moderately       Very Important (4)        Extremely
                    Important (1)              (2)           Important (3)                             Important (5)
                       Accommodation provider              Visitor activities and tours        Other sector
A strong agreement with the importance of targeting new visitor markets

                                                   Targeting new visitor markets
                  70                                                                                           67 67
                                                                                                     60
                  60
                  50
                                                                                                                       40
     Percentage

                  40
                  30                                                                      27

                  20                                                     17                     17

                  10                                                 7

                   0
                       Not at all Important Slightly Important      Moderately        Very Important (4)        Extremely
                                (1)                  (2)           Important (3)                              Important (5)
                               Accommodation provider            Visitor activities and tours        Other sector
‘Increasing awareness of the role of tourism within government agencies’
is highlighted as most important by accommodation businesses
  Increasing awareness of the role of tourism within                                                                   4.8
                                                                                                       4.2
               government agencies                                                         3.8
                                                                                                                     4.7
      Adapting the industry to respond to COVID-19                                                             4.5
                                                                                                             4.4
       Increasing awareness of tourism among local                                                              4.6
                                                                                                       4.2
                      communities                                                    3.6
                                                                                                                 4.6
                      Targeting new visitor markets                                                            4.5
                                                                                                             4.4
       Increasing networking opportunities for local                                                           4.5
                                                                                                 4.0
                    tourism businesses                                                                        4.5
                                                                                                   4.1
        Having direct international flights to Munda                           3.4
                                                             2.3

                                                       2.0     2.5   3.0       3.5    4.0       4.5                        5.0
                                                                           Mean
                   Accommodation provider         Visitor activities and tours     Other sector
Thank you

Team Leader: Simon Milne
Email: simon.milne@aut.ac.nz
Web: http://www.nztri.org/
Team member: Jin Yi and Blake Bai
The views expressed in this publication do not necessarily reflect those of the New Zealand Government.
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