While I was waxing enthusiastic about a boutique hotel I stayed at recently, by coincidence a relative was jetting to a lush nook in the tropics to inspect some land on which to build a B&B (bed and breakfast).<\/p>\n
His concept is to put up a B&B for foreign tourists.<\/p>\n
I know that many readers have similar notions. After all, running a business in paradise sounds better than commuting to a job you don\u2019t like in a city you don\u2019t much care for. <\/p>\n
Paradise sounds better because it is better. <\/p>\n
So let\u2019s think nice thoughts today, and look at the optimistic side of tourism in the tropical Pacific. <\/p>\n
One good thing about the tourism industry is that it\u2019s as predictable as anything can be in the economic world. It\u2019s a big glacier that, even in this fast-moving jet age, usually carves its paths slowly. <\/p>\n
Of course, in cases of financial collapse, UFO invasions, or other upheavals, tourism will take a hit along with everything else. It doesn\u2019t live in some magical bubble. But that\u2019s the whole idea here, tourism is rooted in economic bedrock, so it doesn\u2019t just wave around on a whim. <\/p>\n
Indeed, most of the movements I\u2019ve seen in Pacific tourism were easy to see coming. Sure, Saipan always had myopia in this regard, but that\u2019s a function of Saipan\u2019s character, not of the industry\u2019s nature. <\/p>\n
Since tourism is more predictable than it is fickle, you don\u2019t have to be fast on the draw to succeed. You don\u2019t have to be the first one to jump on a new trend or to join a new fashion. To the contrary, it\u2019s usually the patient and calculating players who survive in this industry.<\/p>\n
In fact, in most cases, I wouldn\u2019t want to be the first guy to put up a hotel somewhere. I\u2019d want to be, say, the third guy putting up the third hotel somewhere. Though I\u2019m sure there are cases where a lone operator reaps juicy windfalls by being a sole pioneer, I can\u2019t think of any right now. <\/p>\n
I can, however, think of some cases, right here in Micronesia, where pioneers have come to grief. I\u2019m talking serious grief, by the way, which we won\u2019t dwell on because I\u2019m being Mr. Optimistic today. <\/p>\n
Anyway, this leads us to the fact that you don\u2019t have to be a daredevil to make a go of things. If you\u2019ve got the necessary capital to buy into the game to begin with, then merely being a clear-headed and competent business operator who gets along well with people is enough. <\/p>\n
And on that last note, you have to get along with a lot of people to succeed in the industry, at least if you\u2019re an entrepreneur. That you have to get along with customers is too obvious to mention, so I won\u2019t, but you should also get along with tour operators (\u201cground operators\u201d), cab drivers, tour agencies, employees (whose attitudes will be obvious to your clients), local officials, vendors (who can help you, or hinder you, in a pinch), and even competitors. <\/p>\n
Me, I like that stuff. Cooperating with people is what business is all about. So if you\u2019re on that wavelength, then tourism might be for you. <\/p>\n
Another good thing about the tourism industry is that if you can carve out a foothold in one business there\u2019s often room for horizontal integration. This is possibly the most under-appreciated element of the industry. It\u2019s the hidden prize. An obvious example is that a successful hotel, even a small one, can spawn a successful restaurant, or a souvenir shop, or whatever. I\u2019ve got pals who have spread into various tourism niches like ivy on a brick wall. <\/p>\n
Outside of strict integration, there\u2019s often room for horizontal teamwork, where businesses link together and cast a broader net for tourism dollars. The best examples I\u2019ve seen were right here on Saipan, and, heck, that\u2019s how I got my introduction to Saipan over 22 years ago.<\/p>\n
Want another optimistic factor? OK, here\u2019s one: Capital is not only cheap right now, it is silly-cheap right now. If you\u2019re looking to steer money into a tourism idea, then if you can get it (which, admittedly, is difficult), then the costs (interest rates) are low. <\/p>\n
Saving the best thing for last, I will note this: Tourism isn\u2019t just a business, it\u2019s a lifestyle. <\/p>\n
Visit Ed Stephens Jr. at EdStephensJr.com. His column runs every Friday.<\/p>\n","protected":false},"excerpt":{"rendered":"
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