Entrepreneurship in the Tourism Sector: A Risky Activity in French Overseas Departments?

Abstract

Research in the field of tourism in the Caribbean is rather limited despite the fact the industry is capital for the area. This industry is very important for the French Overseas Departments and yet, the local corporate doing business in the sector are limited. Out of the 59 big French Overseas Department corporate, only 14 (24%) have tourism related activities. Tourism is the main activity for only one of them (7%). For all the others (93%), tourism is a fringe activity. Because the tourism sector is especially vulnerable to exogenous factors like political instability, economic crisis, natural disasters and the outbreak of diseases, the tourism industry can be considered as a high risk activity for entrepreneurs in French Overseas Departments. The risk for corporate doing business only in the tourism sector in French Overseas Department is therefore absolute. This risk is only speculative for corporate with tourism as a fringe activity and can become totally speculative for all corporate if the activities developed are non-exclusively tourism businesses. The findings of this research are calling for transformational entrepreneurs and transformational enterprises. The findings of this research are also calling for a better collaboration between stakeholders. Last but not least, it is extremely important for the entrepreneurs in the tourism industry in French Overseas Departments to provide high quality products and services as it is a differentiation tool.