Marketing a tropical idyIl

Folasaito Joe Annandale and his wife Tui are the brains behind Western Samoa's latest tourist facility- the Sinalei Reef Resort, which has just opened on the beautiful south coast of Upolu island. They are among a growing number of Samoan entrepreneurs who are injecting new dynamism into the country's economy although they are somewhat unusual in the tourist trade. With the notable exception of the famous 'Aggie Grey's Hotel' in Apia, tourist accommodation in Western Samoa has tended to be the preserve of foreign investors, including some of the major international hotel chains.

At first sight, it is surprising to discover how underdeveloped the tourism sector is in Western Samoa. Tour operators may be inclined to use the phrase 'tropical paradise' a little too freely but this island nation certainly seems to meet most of the essential criteria. It has the obligatory golden beaches fringed with palm trees, extensive coral reefs and striking mountain scenery overlaid with lush vegetation. The vivid colours leave a particularly strong impression. Greens predominate but there are also many copper-leafed trees and bushes, and an abundance of red, orange and yellow flowers. Western Samoa can also offer a number of special features which are important in marketing terms. There is, of course, the legendary hospitality of the Samoans and their distinctive and vibrant traditions. This must be one of the most musically 'literate' populations in the world, a talent which is reflected in the numerous choirs/dance groups. The harmonies are impressive and the traditional dances are both expressive and entertaining. There is also the unique 'fare' architecture which is a particular source of fascination to outsiders, not to mention the Robert Louis Stevenson connection. The famous author spent the last four years of his life in Western Samoa and the house where he lived- which used to be the Head of State's residence - has recently been converted into a museum.

Good prospects

The potential for expanding tourism is something that has not escaped the government. In today's highly competitive free-market world, countries are being urged to exploit their 'comparative advantage' and the Western Samoan authorities recognise that this sector offers some of the best prospects for future growth.

Like most other economic activities, the tourist trade was badly hit as a result of cyclone devastation in 1989 and 1990. However, visitor numbers have increased substantially since then. Indeed, looking at year on year earnings, the tourist sector is performing better than any other area of the economy. In 1994, income was WS$.58 million (50 000 + visitors). The following year, it reached WS$.78m and there are hopes that it could top WS$.100m in 1996. Of course, no-one in Samoa is talking about 'mass' tourism. The country is too far from the main industrialised nations to be able to offer traditional package holidays (perhaps fortunately !), and too small to absorb the cultural and environmental impact without lasting damage. Having said this, the market can be divided into two very distinct portions. At one end of the scale are the low spending 'back-packers'-often taking advantage of relatively cheap 'round the world' airline tickets to stop off and sample the pleasures of Western Samoa. These tourists may not spend very much on a daily basis but they are reasonably significant from a financial standpoint because they tend to stay for quite lengthy periods.

At the other end, you find the high-spending, 'exclusive' customer willing to pay for high quality accommodation and catering. Perhaps not surprisingly, the Government is more interested in attracting the latter, which is why they are keen to encourage investors such as the Annandales.

The Courier spoke to Joe Annandale about his business strategy when we recently visited the country. The Sinalei Reef Resort, which has received EIB loan financing channelled through the Development Bank of Western Samoa, has just 20 rooms (including four suites) giving it a capacity of less than 50. Customers will be offered a tropical idyll and a chance to escape completely from the pressures of modern living. The long term aim, according to Mr Annandale, is to entice Europeans in general and Germans in particular. The latter, it is said, have a preference for environmentally-friendly, 'escapist' vacations and, of course, there is a historical link between Germany and Western Samoa. Until a European clientele can be built up, the focus will be on attracting guests from Australia and New Zealand.

Culture clash?

Although there is no question of Western Samoa being swamped by visitors from overseas, even a modest increase in tourist numbers is bound to have an impact in this country of just 165000 inhabitants. On the negative side, the Samoan system of customary (village) land ownership sometimes appears at odds with entrepreneurship founded on individual ownership of property and resources. In the early stages, Joe and Tui Annandale encountered local difficulties-including squatters-when they bought the land to develop the resort. The usual arrangement is for overseas tourism operators to lease customary land, a process which may involve protracted and ultimately fruitless negotiations with the matai (village heads) who have traditionally used the land for other purposes. Of course, the clash between traditional land tenure systems and 'modern' capitalism is not restricted to tourist ventures-as mining operators in Papua New Guinea have discovered. But while one understands the frustrations for developers, who may find themselves embroiled in complex and interminable land disputes, we should also recognise the concerns of local people who see a possible threat to their way of life.

On the positive side, new tourism developments mean jobs and trading opportunities. In the building of the Sinalei Resort, the Annandales drew heavily on local labour, employing 35 people from the neighbourhood. As Mr Annandale pointed out, this was essential for a complex designed to fit in with the local environment. The Samoans have always built their own houses and only they had the required carpentry skills. The resort also employs 35 regular staff for catering, housekeeping etc. and again, the majority are local people.

Finally, there is one criticism often levelled against tourist ventures which certainly does not apply at the Sinalei Reef (or other Samoan hotels). This is that most of the food and drink consumed by visitors is imported. The Annandales make a point of purchasing their fish, meat and fruit locally, thereby ensuring that some of the financial benefits of their venture flow back to their own community: in short, a happy combination of astute public relations and good economics.

S.H.