Courtesy : opus.lib.uts.edu.au

Eco-tour innovation

At the time of this case study project in August, 2001, the National People Party
(NPP) had just come to power in Ghana. One of the reasons for the NPP’s success was
the promise to invest in and develop the local economy under the slogan ‘Golden Age of
Business’. The change towards a new democratic government resulted in wide-ranging
goodwill from the local people, who were expecting a new level of personal and
professional freedom in Ghana. The business sector was longing for positive change, as
for almost 30 years private businesses had not received significant support from the
preceding governments. People in the tourism industry were finally encouraged to invest
into their innovative business ideas, and motivated to start up small enterprises to
increase their quality of life.
Originality, creativity and appropriateness are generally described as key elements for
innovation. While innovation is associated with the introduction of new ideas or
concepts, geographers use the expression “coping strategies” when describing innovation
in social mechanisms (Yaro 2004). In Ghana, for most entrepreneurs in the tourism sector
the term innovation is part of daily life’s “coping”, or a constant survival process. People
practise innovation to survive in their business environment, and they alter and adapt
according to the resources available – a process the Japanese term “arumono”. The
y is
“creating something meaningful out of nothing for a specific purpose or aim, using
available and appropriate resources”.
The small ecotourism business “Brenu Beach Resort” established by the local female
entrepreneur Auntie Aggie is investigated for this case study. The “Brenu Beach Resort”
features an authentic Ghanaian restaurant and camp site, which is located on a basic
beach area at the Komenda Eguafo Edina Abirim coast. Auntie Aggie’s ecotourism
business is an innovative contribution to tourism in Ghana, as she decided against the
trend of providing all-inclusive services to tourists, to establish an open air do-it-yourself
chop bar and restaurant, where tourists can have something to eat when they come to
spend their time at the beach. A chop bar can be described as a traditional local restaurant
where food is prepared and served in less than a minute. Typical Ghanaian dishes are
cooked in such restaurants and are generally eaten with the hands. The authentic style of
dining is enjoyed by the tourists, who are encouraged to contribute to the meals and do
their own cooking by using the basic cooking utensils provided. For accommodation,
visitors are encouraged to set up a camp site on the beach area or build huts from coconut
branches.
Drivers and Reasons for Innovation
From the seven informal interviews conducted with Auntie Aggie, three outstanding
features are eminent which drive innovation in her case: the surviving instinct of human
beings; the balance between demand and supply; and the trustful interrelationships

among all the stakeholders in the tourism industry. First, considering the need to look
after her five children and provide a place for them to stay, Auntie Aggie followed her
survival instinct. It was her strong will to first finance her children’s education and be
financially independent, which encouraged her to creatively use of the few natural
resources she had available. With a supportive family and a local beach area to count on,
ecotourism appeared to be a promising opportunity for professional success. Auntie
Aggie had observed a rising demand for authentic Ghanaian tourism when an increasing
number of local and foreign visitors complained about inadequate food and
accommodation in the area. Particularly the international tourists were longing for
authentic, traditional and yet convenient overnight shelters, which would add to their
cultural experiences.
Second, the balance between supply and demand is a crucial driver for innovation.
The demand side is represented by the tourists, while supply side consists of service
providers that offer accommodation, food, artefacts, tour guides and other tourism
functions. To maximize performance, the tourist should be at least satisfied with their
experience, while the entrepreneurs realise satisfactory return on investment through the
products and services they provide (Commeh 1999). For example, if the tourist seeks to
enjoy an unspoiled clean beach or have first hand experience of authentic cooking, and if
the provider can deliver to his standards, then satisfaction is likely. In our case, if tourists
are happy with the services Auntie Aggie provides and if they value her performance,
then they leave satisfied, may come again and/or encourage others to visit the beach
resort

Third, a key factor for innovative co-operations is the trustful relationships between
players in the tourism arena, which result from good business contacts and supportive
local networks. Letting stakeholders know about their importance and rewarding
achievers and performers is crucial, and will eventually result in further innovative
practises. At the same time, co-operation with important stakeholders in the community
will guarantee support among the local people, other tourism providers and the local
government. In Ghana, local community networks and co-operations between key players
in the industry are still developing, which at times made life difficult for Auntie Aggie.
Barriers to Innovation
From a micro-economic perspective, the family owned beach area provided Auntie
Aggie with the basic physical resources needed to start her ecotourism business;
however, there were no financial means to establish appropriate guesthouse facilities.
While a beautiful coastline, a two and a half kilometres long beach, marine life, and a
large tract of undeveloped land was available, the essential means and structures needed
to develop a small resort were missing. All Auntie Aggie had available when opening the
chop bar and restaurant were basic cooking utensils such as charcoal pots and three
traditional cooking stones. The lack of financial and material assets proved to be an initial
barrier to innovation, yet it encouraged her to be creative and to design new opportunities
from scratch, such as the do-it-yourself chop bar.

From a macro-economic perspective, a lack of support and staggering interventions of
the previous Ghanaian governments presented one of the greatest barriers to innovations
in the overall tourism business field. In the 1980s and early 90s the tourism sector only
grew at a rate of 3.5% – 5%, and merely started to expand in the late 90s. Under the
current proactive and business-orientated government the macro-economic performance
has improved significantly. According to the latest Ghana Tourist Board report, tourism
is currently growing at a rate of 16% per annum (Ghanaian Times, 2 April 2007), which
shows that a change in politics and policies can impact strongly on the overall wellbeing
of the tourism industry and may contribute to overcoming barriers to innovation.
Socio-cultural barriers to innovation can occur if community based tourism is not
adequately supported by the host communities, government and local authorities (Kiss
2004). For instance, in some cases the chief of a community can decide to intervene
destructively – as it was the case with Auntie Aggie’s business. When her business
became popular with both local and foreign tourists, the Central Regional Development
Commission intruded by building a tourist centre and a guesthouse right next to her chop
bar. So instead of receiving support for her own business, the entrepreneur found herself
struggling with newly introduced social and financial barriers. The community chief did
not approve the expansion of her business to a larger guest house or motel. Auntie Aggie
believes that the main reasons for these restrictions are (a) her unwillingness to pay
money (and bribes) for land titles to the chiefs, and (b) the opinion leaders’ personal
frustration in seeing a woman establish a successful business. The restrictions

experienced cause a drastic reduction in her potential income, which again sets new
barriers to further innovation and sustainable socio-economic development.
Processes for Innovation
There are four main processes which contribute to a continuously innovative social
and economic tourism business environment. These are a) the provision of adequate
education that encourages creative thinking, b) the use of up-to-date technology, c) the
rule of law, and d) financial incentives. First, education is considered the foundation of a
sustainable society and it will be the most influential determinant of the success or failure
of tourism businesses (Greenspan 2007). Having an educated management group and a
creative workforce means being at the forefront of innovation. Allan Greenspan, former
chairman of the US Federal Reserve Bank, once said “The solution to some of our
gravest problems lies in reforming the way we educate our children”. He explained that
education can also help businesses to “creatively destroy” and revitalize themselves from
within by scrapping old and failing projects and then reallocating resources to newer,
more productive ones. By helping people understand the dynamics of the field in which
they operate, resources can be efficiently and creatively reallocated to meet the new
market dynamics.
Second, technology in today’s world is seeing changes at a light speed pace and the
likely direction of change is unpredictable. Ghana as a developing country is not an
exception and it is crucial for the country to be proactive and innovative with
infrastructure development projects. Communication technology, for example mobile

phones, the internet, cable TV etc., have arguably turned the Global Village into a small
Ghetto. In rural Ghana, the development of information technology and infrastructure has
recently allowed larger entrepreneurs to increase direct communication and virtual
presence via internet sites, emails and mobile phones. However, for small tourism
businesses without IT access, opportunities for attracting and targeting customers remain
low, which results in an increasing competitive disadvantage. Government support for
investment into technology is therefore seen as a crucial driver for socio-economic
prosperity.
Third, applying the rule of law and order will ensure the safety and trustworthiness of
a sustainable business environment. For example, once prevailing issues and uncertainty
regarding land ownership and property rights in Ghana are solved, the tourism industry
can operate freely and under just circumstances. Such macro factors are crucial for
attracting and securing tourist providers and business people who are interested in
investing in the local economy. A functioning, reliable and non-corrupt government will
secure law and order for the benefit of the local people and contractors. If all
misbehaviour is dealt with fairly and just, trust within the business sectors and
communities can be created and opportunities for investments will grow.
Fourth, financial incentives and support by the local and federal government are
considered vital measures for advancing innovation, particularly in a developing country
such as Ghana. Often, the local entrepreneurs do not possess the initial resources
necessary to establish a business or company and individuals with creative and innovative
ideas are often limited in their power of realizing and implementing their business plans
due to expense. Here, the government is encouraged to provide a support frame for small
businesses and investments, which should encourage and benefit newly established local
entrepreneurs and their workforce. Initial subsidies, incentives and support would
encourage small entrepreneurship.
Networks for Innovation
The creation of integrative tourism networks is fundamental for the effective
exchange and advancement of information, ideas and projects among players in the
tourism industry. Networks can be both the source and beneficiary of the different
processes needed to establish an innovative socio-economic environment in Ghana. On
the one hand, existing contacts and networks can open doors and propel the growth of the
tourism industry, on the other hand the togetherness of people, the exchange of ideas and
the cooperation at projects can lead to new friendships and networks being created for
future tasks (Bortei-Doku Aryeetey 1998). Currently, networking in Ghana is not
appropriately understood as a form of effective exchange of information for the
advancement of developmental goals. For example, rather than receiving help and advice
from other players in the tourism industry, the benefits Auntie Aggie obtains from
networking come from the good rapport and regular exchange she has with her
customers. The tourists are often giving her ideas or support as to how to run her business
effectively, what and how to change or innovate. For example, tourists have mentioned
the importance of creating an internet site and an email contact to market and promote
her business on a larger scale.