Appendices 1 t/m 8
“From E-business opportunities in Tourism to an
island-wide E-business Policy Framework for Curaçao”.
Appendix 1: Interviewed persons and organizations
Tourism
Name: Organisation: Function:
Mr. J. Hepple CTB Executive director
Mr. D. Daal CTB Product development
Mr. R. Werdekker CHATA Executive director
Mr. A. Rojer CHATA Executive assistant
Mr. A. Griffith CASHA Executive director
Casha Members CASHA Members1
1 Casha member meeting (ALV) 21/03/2003
Appendix 2: Semi structured interviews
All questions needed to be related to the business and ICT.
1. What are the ICT trends in the sector?
2. Consequences of economic developments on the sector (business & ICT)?
3. Opportunities & threats (related to ICT-use)?
4. Critical success factors and bottlenecks (how could ICT add value to these)?
5. How could ICT improve the sector’s competitive edge?
Appendix 3, Average profitability hotels on Curaçao
Source: CTB presentation J. Hepple March 2003, Tourism developments 2002 review Availability in room nights 36,500
Average occupancy 70%
Rooms Sold 25,550
Average Daily Room Rate $ 85.00 Revenue Per Avaialble Room $ 59.50 Total Guests (2.2 per room) 56,210
Revenues:
Rooms $ 2,171,750 48.9%
F&B revenues ($35.-) $ 1,967,350 44.3%
Other revenue ($12.-) $ 306,600 6.9%
TOTAL revenues $ 4,445,700 100.0%
Cost:
Departmental Rooms $ 651,525 30.0%
Departmental F&B $ 1,573,880 80.0%
Departmental Others $ 245,280 80.0%
Admin and General $ 533,484 12.0%
Marketing $ 311,199 7.0%
Heat Light & Power $ 533,484 12.0%
Maintenance $ 333,428 7.5%
Total overhead $ 4,182,280 94.1%
Gross operating profit $ 263,421 5.9%
Fixed expenses:
Lease & Property taxes $ 35,000 0.8%
Insurance $ 32,000 0.7%
Reserve for replacement $ 88,914 2.0%
Total fixed expenses $ 155,914 3.5%
EBITDA before debt service $ 107,507 2.4%
Senior loan repayments (5 millions - 8,5%) $ 185,000.00 4.2%
Net Income $ (77,493.50) -1.7%
Appendix 4: Generic E-business measurement instrument
Which ICT-applications do you use in your business processes?
Dimension 2:
Level of data-
exchange Dimension 1: Business process support Dimension 3: E-business applications
Supply e-mail
Internet intranet extranet
mobile datacom
no speech! other Information a. Searching information about suppliers/serviceproviders and
their products or services Interaction b. Selecting products/services Interaction c. Requesting quotations Transaction d. Ordering a product or service
Interaction e. Inquiring about logistics (availability, progress, status) Transaction f. Receiving invoices
Transaction g. Payment of supplies/ electronic banking Transaction h. Electronically receiving products/services
Interaction i. After sales-service (filing complaints, asking questions, requesting manuals, etc.)
Organisation
Offering information electronically to employees about:
a. HRM (contracts, regulations, 'who's who’, etc.)
b. Quality management (specifications, manuals, procedures, etc.)
c. Management (reports, plans, budgets, etc.) Information
d. Process (progress, troughput-times, hours, etc.)
Other activities:
e. Communication between employees f. Recruitment of new personnel g. Teleworking
h. Knowledge management (internally collecting and exchanging knowledge)
Interaction
i. Attending courses, education
Transaction j. Electronically signing/authorising contracts, invoices, certificates, etc.
Sales
Information a. Searching information about customers and/or competitors Information b. Offering information about your company and its products and
services
Interaction c. Assisting customers with purchasing Interaction d. Quoting
Transaction e. Receiving orders
Interaction f. Offering logistics information (about availability, status of orders, progress, etc.)
Transaction g. Invoicing
Transaction h. Offering the possibility of electronic payment Transaction i. Electronic delivery of products or services
Interaction j. After-sales service (complaints, manuals, helpdesk, FAQ, etc.)
What did your company achieve as a result of doing electronic business? (multiple answers)
Value creation Impact Nothing
Saving time/money (efficiency improvements) Efficiency
Higher turnover
Improved customer service Improved company image
Improved communication with suppliers and customers Effectiveness
Improved communication between employees Opening up an additional market channel Offering a new product or service
Strategic benefit
Opening up a new market Other, ………
Don't know
Appendix 5: Tourism questionnaire
Introduction:
We would like request your cooperation in our research after ICT possibilities (ICT scan) for you as a _____ member. We understand the information is confidential and will be held anonymous. We will only use the information for our research goals: To improve the competitive edge by effective and efficient use of ICT. Subsequently we will identify potential projects that should be implemented to enhance the bottom line through the use of ICT in the sector. You will be informed about the final island-wide results.
ICT SCAN
1. What’s the current number of employees in your company? ______
2. Which E-business applications do you use in your business processes?
Business process support E-business applications
(more than one answer possible)
Supply: e-mail
Internet intranet extranet
Telephone / Fax other j. Searching information about suppliers/service providers and
their products or services k. Selecting products/services l. Requesting quotations m. Ordering a product or service
n. Inquiring about logistics (availability, progress, status) o. Receiving invoices
p. Payment of supplies/ electronic banking
q. After sales-service (filing complaints, asking questions, requesting manuals, etc.)
Organisation
Offering information electronically to employees about:
k. HRM (contracts, regulations, 'who's who’, etc.) l. Management (reports, plans, budgets, etc.) m. Process (progress, throughput-times, hours, etc.)
Other activities:
n. Communication between employees o. Recruitment of new personnel
p. Teleworking (employees able to work at home)
q. Knowledge management (internally collecting and exchanging knowledge)
r. Attending courses, education
s. Electronically signing/authorising contracts, invoices, certificates, etc.
Sales & Marketing:
k. Searching information about customers and/or competitors l. Offering information about your company and its services m. Offering information about availability
n. Quoting (price information) o. Assisting guests upon reservations p. Receiving reservations
q. Confirmation of reservations
r. Offering the possibility of electronic payment s. After-sales service (complaints, FAQ, etc.)
3. Interpretation impact of current ICT use:
Impact Nothing
Saving time/money (efficiency improvements) Higher turnover
Improved customer service Improved company image
Improved communication with suppliers Improved communication with guests
Improved communication between employees Opening up an additional market channel Offering a new product or service
Opening up a new market Other,
………...
...
...
...
Don’t know
4. What’s the percentage of internet purchasing related to total purchasing at this moment?
1. Less than 10%
2. 10% - 24%
3. 25% - 49%
4. 50% - 74%
5. 75% - 100%
6. Don’t know
5. What’s the percentage of internet bookings related to total sales?
1. Less than 10%
2. 10% - 24%
3. 25% - 49%
4. 50% - 74%
5. 75% - 100%
6. Don’t know
6. What percentage of supplier payments are executed electronically?
1. 0%
2. 1% - 24%
3. 25% - 49%
4. 50% - 74%
5. 75% - 100%
6. Don’t know
7. What percentage of customer payments are executed electronically?
1. 0%
2. 1% - 24%
3. 25% - 49%
4. 50% - 74%
5. 75% - 100%
6. Don’t know
8. What were the reasons to start selling your product online?
(Several answers possible!)
1: Competitors
2: New software package with E-commerce capability
3: Colleagues
4: Don’t want to stay behind
5: Hobby
6: Made enthusiastic by others 7: Suspecting new opportunities 8: No exact reason
9: Don’t know / no submission 10: Not selling product online E-commerce possibilities
9. Which online booking engines are you currently using?
Expedia Travelocity
Orbitz
Hotels.com
Other: ________________
No online reservation system
10. How were/are the reservations distributed?
2000 2002
Telephone ____% ____%
Email (information website) ____% ____%
Online bookings engine ____% ____%
Other: ___________ ____% ____%
Total 100% 100%
11. What is your experience with online reservation websites like Expedia?
Excellent Please explain your answer, Why?:
Good ________________________________________________
Moderate ________________________________________________
Poor ________________________________________________
Don’t know ________________________________________________
12. How many information requests do you receive electronically (rates, availability, etc)?
____%
13. How many of those information requests result in concrete reservations?
____%
14. What was your revenue growth over de last three years?
2000 _____%
2001 _____%
2002 _____%
15. How much did you invest in ICT the last three years (as a % of revenue)?
2000 _____%
2001 _____%
2002 _____%
16. What were the total net results over de last three years (as a % of revenue)?
_____%
17. Reasons for not making use of the full E-business opportunities?
No skilled personnel It would not pay off
Large investments needed
Do not trust technology/security
No confidence in regulatory environment Customers’ access to internet is insufficient No affection with E-business
Lack of E-business knowledge Don’t know/no answer
Other reason(s):
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
We would like to thank you for your cooperation!!
You can fax your filled out questionnaire to: 463-6673
For information: Phone: 4636299 Email: trainee@stimul-it.com
Appendix 6: Research population
CHATA members CASHA members
1 Avila Beach Hotel 1 Alablanca apartments
2 Livingstone JanThiel Resort 2 All West Apartments
3 Sheraton Curaçao Resort 3 Aquila apartments
4 Hotel Kura Hulanda 4 Art & Nature Inn
5 Royal Resort - Seaquarium 5 Bahia Inn
6 Trupial Inn & Casino 6 Ban Topa Apartments
7 Papagayo Beach Resort 7 Caribbean Flower
8 Plaza Hotel Curaçao 8 Curasun Apartments
9 Curaçao Marriott Beach Resort 9 Douglas Apartments
10 Sunset Waters Beach Resort 10 Flamingo Park
11 Coral Estate Rif St. Marie 11 Jan Thiel Apartments
12 Lions Dive & Beach Resort 12 Lanais Apartments
13 Chogogo Resort 13 Landhuis Daniel
14 Bon Bini Sea Side Resort 14 Parrot Hill Vacation Park
15 Bellevue Curaçao / Floris Suite Hotel 15 Pearl of the Caribbean
16 Hotel Kura Hulanda 16 Recompensa Park
17 Curaçao Howard Johnson Plaza Hotel 17 Sun reef village
18 Holiday Beach Hotel & Casino 18 Wederfoort Apartments
19 Habitat Dive Resort Curaçao 19 Wind & Waves Apartments
20 Hilton
21 Habitat Dive Resort Curaçao
22 Holiday Beach Hotel & Casino
23 Limestone Apartments
Appendix 7: The ICT Policy as included in the Multiyear Economic Plan 2003
SUB-SUB PROGRAM OBJECTIVE
Labor Market Policy A more flexible labor
market and higher mobility of labor Capital Market Policy A better functioning
capital market Competition Policy
More competitive markets and protection
of consumer interests
Trade Policy Better export opportunities for local companies and more dynamic markets
Export Policy A higher volume of
exports and better export opportunities for
local companies Entrepreneurship
More local entrepreneurs and
better developed entrepreneurial spirit
Innovation Policy More innovative firms PROGRAM
OBJECTIVE
SUB- PROGRAM OBJECTIVE
S U S T A I N A B L E E C O N O M I C G R O W T H Providing Jump-Start
Balanced Budget - Debt reduction - Stable Balance of Payments Price stability - Increasing employment - Balanced income distribution
Balance between economy and environment
A Macroeconomic
Stability
C
Stimulating in Specific Economic Subsectors
D
Adequate Supporting Policies Other Sectors
Tourism Increase the number of
stay-over (75%) and cruise tourists (30%)
Logistics
•A competitive airport
•Expansion of harbor activities (30-50%
growth varying by activity)
•Expansion of e-zone (30% growth) E-Commerce Facilitate E-commerce
activities (800 new direct jobs)
IFS Revive the
IFS Sector Oil Modernize the
Oil refinery
Education Policy Sufficient training capacity to meet the demand of the labor
market Environmental Policy
No environmental damage and synergy with tourism
Employment Policy Significant reduction of
the number of unemployed not able
to find work without guidance
Income Policy Realize appropriate standard of living for
unemployed without reducing incentives to
find work Macroeconomic
Stability An overall stable macro
economic climate:
•Balanced budget/
low debt
•Stable exchange rate
•Stable BOP
•Price stability
•Social cohesion
•Political stability
Public Sector Efficiency A substantial lower level of “Red Tape”
Tax Policy A well balanced tax system that takes both
economic and social objectives into account
Privatization Better functioning
markets by less government involvement
in economic process B
Enabling Business Environment
ICT Policy Increased ICT use
ICT Policy Summary
Currently, the ‘level’ of the use of Information and Communication Technology in Curaçao is not meeting international standards, as several studies show. It has been widely accepted that, to achieve any kind of sound and sustainable economic development, ICT has become a critical success factor for all sectors.
In order to increase ICT use among private sector organizations, in particular in small and medium- sized businesses, the Island Government of Curaçao instituted the “Curaçao Information Stimulation Plan” (CISP).
CISP is an initiative of the Department of Economic Affairs, with the objective of improving the competitiveness of Curaçao by applying information technology efficiently and effectively and so create the possibility of maximizing business income and reducing business costs.
Description and analysis sub sector Characteristics of the sector
The increasing importance of ICT-use is apparent through the following:
• The opportunities for future economic development lay mainly in the development of ICT services and processes, based on a high quality infrastructure, and the continuous improvement of productivity and of our competitiveness through the use of ICT.
• More and more organizations are depending on ICT for their operations
• ICT offers possibilities for an increased mobilization and globalization making almost every product or service available at any time or any place.
• In recent years, the attention that ICT has received from international, regional as well as local governments and policy makers has increased.
The Trade and Development Board of the United Nations describes this as follows:
“There is little doubt about the acceleration in social change that ICT can produce, or the profound changes they can create in the structure of an economy. (...) The challenge is, therefore, to harness the Internet and other forms of ICT to ensure that their potential is indeed used to create economic opportunities, thus helping to fight poverty and providing a material basis for implementing solutions to other social ills. In practical terms, it is in their applications in the productive sphere that ICT are most likely to bring about improvements in the living standard of people in developing countries. This means that policies must be implemented to ensure that the new possibilities for creating, transforming, using and exchanging information and value are employed to improve the productivity of enterprises.”2 Currently, the ICT use of our population is falling behind international standards. 35% of households have access to a computer at home and 22% of all households are connected to the Internet (CBS Census 2002). This figure is low compared to for example the Netherlands, where three out of four people have at least one PC at home and almost 60% of all people have Internet access at home. In the US, 50,5% of households are connected and 65,5% of the total population in the US are computer users.
With regard to ICT use by companies, the level of ICT ownership has improved during the past years but the use of internet technology to do business is still low.
2“Electronic Commerce Strategies for Development: The Basic Elements of an Enabling Environment for E-Commerce” United Nations Conference on Trade & Development Background paper; Trade and Development Board, Commission on Enterprise, Business Facilitation and Development; May 2002.
A study of ICT use among SME in 2002 shows the following overview:
Degree of ownership of… Small Businesses Medium Businesses
PC’s (with modem & CD ROM) = -
Internet access - -
Web site3 + +
External e-mail + -
EDI - -
Selling on-line - -
The figures show the level of ICT use in comparison to that in other countries, and the degree to which the corresponding targets for ICT use were met.
There is still a lot of room for improvement, especially in the following area’s:
1) The effective use of websites
2) The use of on line transactions in doing business 3) Integrated ICT use for all business processes
4) Ownership of PC should approach 100%, especially among companies with more then 5 employees.
5) Use of an ICT Planning
6) Introduction and use of new technologies
Government policy with respect to the sector
The Government is actively stimulating ICT use in general, through initiatives such as the Curaçao Informatics Stimulation Plan and the establishment of several “Kura Digital” (aimed at stimulating ICT use among people who might otherwise not get in touch with ICT). Apart from that, ICT use in education and government sectors has also been actively stimulated.
Furthermore, on several occasions the government has indicated that it is its goal to become a
“knowledge economy” (on a central level in the government agreement 2002-2006 and on an island level by the commissioner of economic affairs).
However, an island wide ICT policy has not been formally defined and adopted.
Stakeholders and other relevant parties
• Curaçao Information and Communication Association (CICA): CICA is an association of ICT suppliers that looks after the interests of the ICT sector, while trying to maintain and improve its quality. CICA is actively providing advice to the government on ICT policy and is regularly organizing meetings and information sessions on ICT topics.
• (Former)Curaçao eCommerce Platform (CeCP): The CeCP has been a combined effort of public and private sectors that has been actively working on the improvement of the ICT infrastructure and the conditions for eCommerce. Although this organization will cease to exist in its current form, the plan is to continue the active monitoring of eCommerce conditions by a group of stakeholders that can also provide advise with regard to government policy.
• Stimul-IT – Curaçao Informatics Stimulation Plan (CISP): Stimul-IT was established to execute the projects of the CISP, that are aimed at stimulating ICT use among small and medium businesses, and so contribute to the development of our economy and the improvement of our competitive position. Stimul-IT focuses its efforts on three groups of activities:
A. Providing information about ICT (research about current use and increasing awareness about ICT)
B. Providing policy advice and stimulating the improvement of the ICT-infrastructure C. Initiating sector-wide ICT projects and activities
• Small and Medium Businesses: The Association of Small businesses of Curaçao (Adeck) is working together with Stimul-IT to stimulate ICT use and awareness among small businesses.
3Although these figures show that the quantity of organizations with a website is satisfactory, in reality it appears that a lot of companies have not updated their websites in years and are not actively using it for their business.
Other relevant activities
Kura Digital: The government has initiated the establishment of several “Kura Digital”. These are aimed at stimulating the use of ICT in certain neighborhoods where people are expected to have limited access to ICT
SESNA
Training Grant Scheme
Available background information, reports and policy papers
• “Bouwsteen voor een betere toekomst” CICA Manifest, June 2002
• “ICT Perspectives 2002”, Curises, Stimul-IT, CICA, Chamber of Commerce, April 2002
• Business plan 2003, Stimul-IT, March 2002
Indicators
Indicators for ICT-use Current/Past figures
ICT use SME 2000: 50%
Island wide computer use 2001: 35%
Island wide internet use 2001: 22%
Number of companies that offers services or products through the Internet
2002: 10%
Number of companies with a website 2002: 50% of all companies Number of companies with internet access 2002: 85%
SWOT analysis Strength
Awareness of importance of ICT is increasing in public as well as private sector Adequate infrastructure
Weakness
Lack of an integrated, island wide ICT policy Opportunity
The government is currently developing an SME policy, making it easier to combine and/or coordinate efforts of different organizations that are all focused on strengthening small and medium businesses.
Threat:
Curaçao is loosing its relative advantage in the region with regard to ICT infrastructure
• The labor force does not consist of “knowledge workers” nor does the education system educate
“knowledge workers”.
Critical success factors and preconditions
• Development of an island wide ICT policy.
• Continued support of government for stimulating activities
• Island wide cooperation throughout all sectors and industries
Planning sub sector Sub sector objectives
The objective of the ICT policy is to increase the use of ICT to enable sustainable economic growth.
This can be translated into the following goals:
- increase the number of small and medium organizations that use ICT - increase the ways in which ICT is used by organizations
- achieve and maintain a strong ICT-sector that delivers high quality ICT products and services
- create awareness on all levels about ICT as a condition for economic and social development
- develop an island wide ICT policy
Desired future development of indicators Indicator
Target for 2003
Increased ICT use SME 70%
Increased island wide computer use 65%
Increased island wide internet use 40%
Increased number of companies that offer services or products through the Internet
20% of companies with 5 or more employees Increased number of companies with a website 50% SME
Increased number of companies with internet access
90%
ICT Policy Developed in 2003
Trust in local ICT suppliers Increase use of local suppliers for mission critical systems with 25%
Identification and analysis of all relevant activities and projects to be implemented Projects MEP
MEP Code Name Project owner
MEP Projects submitted for funding MEP Projects in preparation
MEP Project Idea
ICT Fund Stimul-IT
Island wide ICT awareness campaign Stimul-IT
Projects others
These are activities that are subsidized by the Curaçao Government (through Stimul-IT) and will be performed in 2003:
A. Providing information about ICT (research about current use and increasing awareness about ICT)
• Seminars and training sessions
• News Letters & Website
• Awareness Campaign for Small & Medium Businesses
• Research about ICT use
The above-mentioned are activities of which the implementation has started. Other activities, that are mostly still in the planning phase, include:
B. Providing policy advice and stimulating the improvement of the ICT-infrastructure C. Initiating sector-wide ICT projects and activities
Assumptions and risks
Assumptions Risks Explanation
The government and the private sector will continue to support the stimulation of ICT use.
Low The island council has approved continued financial support for Stimul-IT in 2003.
Private sector organizations are still active in CICA and in eCommerce.
Efforts targeted at SME will be combined/coordinated
Low Several contacts have been made between these organizations and the government is currently developing an overall SME policy
Appendix 8: Evaluation questionnaire E-Business Policy Framework
The following question sets should be integrated into the yearly SME research to be able to evaluate the effectiveness and needed changes of the overall E-business Policy Framework and its elements.
Question set I= Overall (for the yearly regional comparison and impact/barrier analysis)
1. To what extent has the internet improved your firm’s ability to coordinate with customers and suppliers to reduce your inventory costs? (1=no change 7=huge improvement)
2. Are you currently using the internet for online sales? (E-commerce?) (Yes/No)
3. How would you rate your company’s use of internet for general research versus competitors? (1=behind other local companies 5=equal to the best in the world)
4. Does your company make use of wireless E-business applications for suppliers or consumers? (1=no / 7=yes, equal to the most sophisticated in the world)
5. What amount of your company’s internal correspondence is done by email? (1=0% 7=100%) 6. What amount of your company’s external correspondence is done by email? (1=0% 7=100%) 7. Do you have a company website? (Yes/No)
8. Interpretation impact of current ICT use:
Impact Nothing
Saving time/money (efficiency improvements) Higher turnover
Improved customer service Improved company image
Improved communication with suppliers Improved communication with guests Improved communication between employees Opening up an additional market channel Offering a new product or service Opening up a new market Other,
………...
...
...
Don’t know
9. Reasons for not making use of the full E-business opportunities?
No skilled personnel It would not pay off Large investments needed Do not trust technology/security
No confidence in regulatory environment Customers’ access to internet is insufficient No affection with E-business
Lack of E-business knowledge Don’t know/no answer
Other reason(s): ______________________
Question set II – Awareness raising and training 1. Do you know about E-business? (Yes/No)
2. Are you aware of the advantages that E-business can create for your organization? (Yes/No)
3. Did you make use of our E-business training programme executed in cooperation with SESNA? (yes/no)
4. How would you rate the process with regard to taking part of certain E-business workshops? (1=very easy – 5=very difficult)
5. If you took part of an E-business training, how would your rate the specific training? (1=very useful – 5=useless)
Question set III – E-business Support Network
1. Are you aware of the support possibilities with regard to the use of E-business (yes/no)
2. If you are aware of the support possibilities, are you satisfied with the provided support? (1=very satisfied – 5=not satisfied)
3. Which support activities did you make use of? (select) general E-Business Information / individual training and advice / E-business demand (private sector) / Financial support
4. What could be improved with regard to the current E-business support? Specified by support activity:
Information / individual training and advice / E-business demand (private sector) / Financial support (open) Question set IV – Helping SMEs to use Internet Platforms
1. Are you making use of an internet platform to sell your product (for example totallycaribbean.com)? (yes/no) 2. Are you aware of the advantages for your company to sell your product online? (yes/no)
3. Are you aware of the possibilities to sell your product online? (yes/no)
4. Are you aware of the support activities with regard to these internet platforms or E-commerce in general?
(yes/no)
5. If made use of, are you satisfied of the provided support with regard to E-commerce provided by the Camber/SESNA? (1=very satisfied – 5=not satisfied)
