Local Economic Development Impacts of International Backpacker Tourism to Third World Destinations

MA-Thesis / Master von Till Albrecht Müller

Introduction:

In the past two decades backpacker tourism has grown vastly throughout both developed and developing world. Particularly to south and Southeast Asian countries the phenomenon of backpacking is not new, so to India, where it dates back to the 60’s and 70’s hippy drifters, to which backpacking is often associated. It has been since the publication of the Lonely Planet’s ‘Yellow Bible’ (‘Southeast Asia on a Shoestring’) in 1975 that backpacking has gradually emerged as a mass travel style. Today popular travel-yourself literature cover almost every corner of the globe, serving a steady demand for ‘off the beaten path’ travel. Thereby to backpackers the developmental background of a destination plays a lesser role than to the mainstream tourist, who is demanding certain infrastructural arrangements. As a result backpackers are found in utmost remote and low developed locations that other tourists never reach. Thus backpacker enclaves have emerged in many places throughout the world, and not without effects on their hosting environments. While social impacts often carry negative connotations, hosting communities do usually appreciate backpackers for their economic contributions.

Objectives and Scope of this paper:

In recent years backpacker tourism has profoundly been studied in developed contexts, particularly Australia and New Zealand are to be seen the pioneering regions of independent travel research, having undertaken strenuous efforts to study the same within the past two decades. As a consequence both destinations have recognized the economic value of low budget travel to their countries and established backpacker tourism as high yielding segments within their national tourism markets. In both countries backpacking has since undergone shift from de-marketing to a marketing label.

Though in recent years international research has made numerous successful attempts to study backpacker tourism in less developed contexts, many tourism officials in third world destinations as yet refuse to accept the economic reach coming along with low-budget travel. Instead a majority of administrative instances promote upscale- and regulated forms of tourism to be the way forward, neglecting any concerns with regard to necessary infrastructure or initial investments. Though only a fraction of developing nations do actively restrict independent travel to their territories (e.g. Maldives, Bhutan), a majority at best tacitly ignores the phenomenon. Other cases have proven forceful discouragement from local authorities and government bodies. India is an example, though having a long tradition as a backpacker destination and as yet well reputing among international travellers, there are strong indications that tourism planners and authorities follow the common misbelieve that low budget equals low revenue tourism and begin displacing backpacker tourism, in particular from designated tourism priority zones.

At this point the present paper starts to assume relevance. It aims at proving the economic significance of international backpacker tourism in a third world context, particularly the economic development impacts coming along with this form of travel. Beside setting up an explorative backpacker profile of independent travellers in India it examines the case of a remote Indian traveller enclave including the local and regional economic developments directly and indirectly resulting from budget travel.

Basing on empirical research firstly a backpacker profile is being created, providing fundamental quantitative data on travellers in India and the study area itself. A second aim of this paper is to place the backpacker in India into an international context and identify similarities and differences to his counterpart in other regions of the world. Furthermore it follows the question of the existence of different types of backpackers in India. Hence, survey findings are being contrasted with data from other, international backpacker markets, as well as theoretic defining and distinction criteria. The identification of parallels farther allows an application of economic development criteria from other destinations onto the Indian context. The section therewith sheds light onto the demand side of India’s contemporary budget travel market.

A qualitative approach has been chosen to run down on backpacker economic development impacts on Havelock in the Andaman Islands, representing the study area of this paper. Substantiated by data from the backpacker profile this second section portrays the case of a remote islands enclave, and how backpacker tourism impacts on its local economy. Again findings are being contrasted with a number of theoretic criteria, in order to emphasize their significance to the region. Farther the evolutionary path of backpacker enclaves is being followed and the question whether or not independent travel spearheads organized forms of tourism. This section particularly approaches the supply side of independent travel in India and the area of focus. Finally the paper aims at identifying factors for success of backpacker travel in India and the Andaman Islands.

Table of Contents:

1.	INTRODUCTION	1
1.1	Objectives and Scope	1
1.2	Structure	3
1.3	Overall Methodology	4
	THEORETICAL CONTEXT
2.	INTRODUCTION TO THE DESTINATION	6
2.1	Destination India	6
2.1.1	India’s developmental situation	6
2.1.2	Geography and climate	7
2.1.3	Politics and economy	7
2.1.4	Tourism in India	8
2.2	Destination Andaman Islands	13
2.2.1	Geographic facts	13
2.2.2	Brief historical review	14
2.2.3	Population	14
2.2.4	Economy and industry	14
2.2.5	A&N Islands tourism	15
2.3	Destination Havelock Island	16
2.3.1	Location	16
2.3.2	Population	16
2.3.3	Landscape and infrastructure	16
3.	BACKPACKER DEFINING CRITERIA & TYPOLOGIES	17
3.1	Cohen’s tourist typology	17
3.1.1	The Organized Mass Tourist	17
3.1.2	The Individual Mass Tourist	18
3.1.3	The Explorer	18
3.1.4	The Drifter	18
3.2	Riley’s defining criteria of independent travellers (1988)	19
3.3	Defining criteria of contemporary backpackers	20
3.3.1	Pearce’s defining criteria of backpackers (1990)	20
3.3.2	Ateljevic & Doorne’s defining criteria of backpackers (2000)	22
3.3.3	Contrasting Ateljevic & Doorne’s backpacker types with	24
4.	DEFINING CRITERIA WITH REGARD TO THE STUDY AREA	25
4.1	The backpacker enclave	25
4.2	Forms and types of backpacker enclaves	26
4.2.3	Urban and Rural Enclaves	26
4.2.4	Functional and Destinational Enclaves	26
4.2.5	Concentrated and Dispersed Enclaves	26
4.3	The evolutionary paths of backpacker enclaves	27
4.3.1	Butler’s Tourist Area Life Cycle (TALC) Model	27
4.3.2	Papatheodorou’s advanced evolutionary approach	30
5.	BACKPACKER TOURISM ECONOMIC DEVELOPMENT CRITERIA	31
5.1	Scheyven’s Economic Development Criteria of Budget Tourism	32
	STUDY RESULTS
6.	THE QUANTITATIVE SURVEY – PROFILING THE BACKPACKER	34
6.1	Methodology of the quantitative survey	34
6.1.1	Conceptualisation of the survey	34
6.1.2	Survey execution	37
6.1.3	Evaluation of data	39
6.2	Survey findings and discussion	42
6.2.1	Socioeconomic aspects - who is travelling?	44
6.2.2	Travel company, itinerary and trip length	50
6.2.3	Travel motivations	56
6.2.4	Use of infrastructure	61
6.2.5	Budgeting and expenses	69
6.2.6	Organized activities on Havelock Island	74
6.2.7	Statements to rate regarding India as a destination	76
6.3	Summary of survey findings	78
6.3.1	Demographics	78
6.3.2	Travel company	78
6.3.3	Travel motives	78
6.3.4	Itinerary	79
6.3.5	Use of infrastructure	80
6.3.6	Spending	81
6.4	Contrasting study findings with defining criteria of Pearce, Ateljevic & Doorne	82
6.4.1	Comparison of survey findings with defining criteria of Pearce	82
6.4.2	Comparison of survey findings with Ateljevic & Doorne’s advanced defining criteria	84
7.	THE QUALITATIVE SURVEY – ECONOMIC DEVELOPMENT IMPACTS ON HAVELOCK ISLAND	86
7.1	Methodology of qualitative interviews	86
7.2	Study findings and discussion	87
7.2.1	A temporal review of Havelock’s budget tourism development	88
7.2.2	Economic development impacts on Havelock	91
7.2.3	The case of Shri Dhananjoy Mondal and family	97
7.4	Summary of local economic development impacts on Havelock	99
7.5	Contrasting Havelock’s status with Scheyven’s defining criteria	101
8.	DEFINING HAVELOCK’S CURRENT STATUS AS A BACKPACKER ENCLAVE	104
8.1	Classification of Havelock’s status according to Cohen and Howard	104
8.2	Classification of Havelock’s evolutionary status according to Butler & Papatheodorou	105
8.3	Do backpackers spearhead mass tourism?	108
9.	SUCCEEDING FACTORS FOR BPT DEVELOPMENT	110
9.1	Resources beneficial to tourism development	110
9.2	Surrounding conditions beneficial to independent travel development	113
9.3	Success factors for backpacker travel development in brief	118
10.	CONCLUSION AND RECOMMENDED COURSE OF ACTION	119
11.	REFERENCES	123
12.	ANNEX	130

Text Sample:

Chapter 6.3.1, Demographics:

The backpacker found to be travelling in India is young, commonly under the age of 30. Males and females are equally distributed and the majority originates a western background (Europe and North America). Remarkable are a very high percentage of young Israeli travellers, constituting the strongest source nation of the sample, was found to be travelling in Andaman Islands. Israeli travellers in particular are young, with a large majority under the age of 25. Age composition of backpackers matches findings from previous surveys. Independent travellers in India are very well educated, either already having a university degree, or still studying for one. Only a fraction of the sample is full time employed, a larger proportion was found to be in an undetermined status - e.g. between two major phases in life - hence ‘travelling’ best suited their current occupation. Again present findings coincide with findings from earlier studies, from other parts of the world.

6.3.2, Travel company:

The minority of backpackers in India travel on their own, the majority seek company of partner, friend(s) or fellow travellers. The result opposes findings from developed destinations, where a majority is found to be travelling alone. The assumption was substantiated, that independent travellers in third world destinations strongly tend to seek travel company. Increased hardship of travel and strangeness of host culture were named to be the most reasonable explanations.

6.3.3, Travel motives:

The traveller to India is attracted by a composition of motives, commonly aspects of exploration, excitement and relaxation. A basic drive for the backpacker is a thirst for experience of India’s natural, historical and cultural assets. Farther, sun and beach ranks as a top pull drive, as well as India’s low overall cost of living and travelling. Rather specific for India is the ‘spiritual traveller’ who visits holy places and partly participates in meditation or Yoga. A majority of ‘spiritual’ travellers is of Israeli origin, many of those are involved in drug consumption.

The assumption was made that the low living expenses in India strongly promote it to backpackers as a travel destination. At the same time - though being value for money - India does not appeal as a country for shopping. Rather there are indications that India receives recognition as a country for temporary tertiary education. The survey uncovered 3 ‘study backpackers’, a fairly recent phenomenon which had already been reported from Australia.

When it comes to Andaman Islands the relaxational aspect of pull factors comes to the fore. Travellers to Andaman Islands seek both, to actively and/or passively relax from strains of travel while exploring tropical beaches. The backpacker to Andaman Islands often follows recommendations from previous visitors (friends, relatives other travellers) and seeks thrill in adventuresome eco-activities. Snorkelling and SCUBA-diving are the most popular ventures backpackers opt for.

6.3.4, Itinerary:

Most backpackers visit India for the first time and travel the country as part of a longer trip. Popular countries (intended to be) visited apart from India are Nepal, Thailand, Laos, Vietnam and Cambodia. Multiple destination travellers are heading from west to east. The overall trip length averages little above 20 weeks whereof 13 weeks are spent in India. Israeli backpackers commonly travel longer than the average, as they do stay in India. Trip lengths drawn from comparative studies commonly vary. Assumptions were made that the ultimate duration of stay is country specific and strongly depending on framework conditions. Available types of Visa, cost of living and incidental work opportunities would account as such.

The backpacker to the Andaman Islands is a first time visitor, substantiating the island’s status as a virgin destination. The average sojourn time in the archipelago is three weeks, whereof two weeks are spent on Havelock Island. This supports Havelock’s reputation as a backpacker enclave and destination of choice for backpackers.

6.3.5, Use of infrastructure:

The backpacker to India commonly travels on budget public transport systems. When compared to other destinations, Indian railway outweighs road based transport (bus). This was said to be due to Indian trains’ excelling comfort when compared to (rough) road bound modes, while being value for money at the same time. Remarkably the backpacker to India air travels within the boarders of India at least on occasion. On one hand this was found to be a result of the study’s realization on a remote island archipelago, involving a vast majority of the surveyed’ in some sort of aviation. On the other hand the existence of hub- and overland backpackers has been substantiated, as well as the triumph of India’s low cost air carriers (LCC).

Compared to developed destinations rented self drive is only popular in/around enclaves. Travellers on Havelock opt for bicycle and/or scooter. Purchased self drive (e.g. campervan) as common in Australia does hardly exist in India. This has been identified a result of legal obstacles as well as distinct traffic and road conditions. When travelling to Andaman Islands backpackers choose to fly.

Again the overall preference for budget housing has been substantiated. Travellers in India tend to stay in private guesthouses, farther quality local hotels or beach shack-type/ bamboo hut housing. Israeli travellers tend to be more rigorous when it comes to accommodation, a large proportion chooses ultra budget staying over comfort where available. Backpacker hostels as found in other destinations do not exist in India, nor do camping facilities or youth hostels. Travellers in India share their counterparts disfavour for upscale housing, as comparison with other studies reveals. Backpackers on Havelock exclusively stay in bamboo huts. This is due to inexistent alternatives in the budget sector, and the prevalent nature of this traditional type of housing.

The traveller in India commonly chooses ‘authentic’ facilities to eat. Of highest popularity are small local restaurants, offering host culture interaction. To buy food from local shops and markets appeals as an option to most travellers. Price consciousness plays an important role and commonly outweighs the setting of a place. Fastfood chains, though increasing in numbers are commonly disregarded. Upscale and A/C restaurants are only being frequented on occasion.

Backpackers in India use guidebooks to draw travel information, as they rely on reports from fellow travellers. The assumption was made that third world backpackers rely on information from word of mouth far more often than their counterparts in developed destinations. This has been explained with lacking reliable alternatives. In contrast to other destinations the internet is not as popular, though still used at least on occasion. India’s infant stage of web based, travel-related information platforms was identified a possible explanation.

6.3.6, Spending:

Despite a low daily budget of only EUR 12,5 backpackers in India each spend a total of EUR 2300 in the country. This was found to be less than in Australia but far more than contributions of average tourists (cf. Section 2.1.4). The largest proportion of the backpacker’s daily spending account for basic needs, namely food, beverages and accommodation. In contrast to travellers in Australia those in India clearly do not spend money on shopping and souvenirs.

This is outbalanced by those enrolling in organized activities. The backpacker in Andaman Islands does spend a multiple of his average daily spending on exceptional eco- and adventuresome activities (SCUBA diving/ snorkelling excursions). Similar results have been found for Australia and New Zealand.