Quick Dollar

During these past 8 months, I’ve had the fortune of discovering the reasons for which the only word people can unwaveringly use to generalize India is diverse. As I’ve alternated roles between visitor, tourist, and resident in different parts of the land, my interaction with my surroundings has evolved. Even though what I’ve gained most is a better understanding of what I don’t know, it’s at least useful in forming more accurate expectations in new circumstances. A couple of weeks ago, as my vacation was coming to a close, I decided to stop through Hampi en route to Chennai. After an overnight bus ride, I was greeted by an energetic young man in my early morning stupor with, “Let me show you Hampi, everyone here knows me and calls me Dollar.” Partly entertained and too tired to argue, I decided to accede to his pursuit for earning a fair share of my tourist dollar; it wouldn’t trickle down to him faster any other way, or at all. My short, spontaneous trip was poorly planned and so I accepted this form of a tourist-tax. Yet, it saddened me that this was the general case for the visitor-local population interaction; it was dominated by those trying to make a quick dollar and spend a quick dollar. The implications that this has on the local economy, social perceptions, and rich (yet poorly maintained UNESCO World Heritage Site) history of the area disturbed me and gave me a cynical outlook on the impact that visitors could have on sites in India as they increase in numbers. (Economic growth has added millions annually to the ranks of India’s middle class, a group that is driving domestic tourism growth. Disposable income in India has grown by 10.11% annually from 2001-2006, and much of that is being spent on travel. Foreign tourists spend more in India than almost any other country worldwide. Tourist arrivals are projected to increase by over 22% per year through till 2010, with a 33% increase in foreign exchange earnings recorded in 2004.)
Nevertheless, I’ve also been lucky to experience tourist areas where resulting income-generating activities aren’t strictly seasonal or restricted to the self-employed poor, but are supported by SMEs and contribute to improved infrasturcture. The potential for the role of MFIs and SMEs in driving a sustainable path for tourism is huge and can be a source of poverty alleviation. For those who are interested in some info, check out “Tourism, Microfinance and Poverty Alleviation” published by the WTO. A Working Paper is also available online called “Financial markets, microfinance and tourism in developing countries” by Jos van der Sterren.