Case study - Vanuatu’s Broken Dreams
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Case study - Vanuatu’s Broken Dreams


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The purpose of this individual case study analysis is to further your skills in applying relevant  Hospitality and Tourism analysis tools. It will also test your ability to identify a range of Hospitality  and Tourism related problems and their ethical implications. This will enable you to apply ethical  standards to a variety of situations arising in the Hospitality and Tourism context.  

You are to watch the following video: 

Vanuatu's Broken Dreams 

In preparing your analysis, you must answer the following questions: 

  1. Identify and discuss the prime ethical and governing issues presented in the Vanuatu's  Broken Dream video. 
  2. Did PO Cruises act ethically in this case? Justify your answer.  
  3. Who should be responsible for rectifying issued that you have identified? Why? Explain your  reasoning.  
  4. Discuss how Australian and/or Vanuatu's governments could have resolved identified issues. Justify your answer.  
  5. Suggest at least three recommendations to overcome such issues in the future.  

You are required to reference at least 8 sources of information. These may include corporate  websites, government publications, industry reports, census data, journal articles, newspaper  articles, and textbook material. In referencing sources, you must apply Harvard Referencing Style  to your in-text citations and consequently to the reference list.


1. Introduction

Tourism is one of the fastest growing industries in the 21st centuries and transportation mechanisms, awareness of new tourism destinations, and average spending on tourism has increased in recent decades. For many countries, tourism brings many employment opportunities along with ways of making money, helping local economy grow. In Vanuatu, a Pacific Island nation, tourism has increased significantly by means of cruise ships coming to the coast of Vanuatu (Rao 2002). Despite the development of a tourism industry that is estimated to worth half a million-dollar, majority of this money is not reaching to the development projects in the nation or is not reaching to the people of Vanuatu (SBS Dateline 2013 ).


2. Ethical issues in Vanuatu tourism

While the business of tourism in Vanuatu has consistently increased, the income from the tourism growth has not materialized for the benefit of the community in Vanuatu. Growth in tourism is consuming the environment resources of Vanuatu, requiring hard work from the local citizens, and is causing pollution to increase in Vanuatu (Milne 1991). Despite all of this, the money that is coming out of P&O cruise customers is not getting materialized for development of community in Vanuatu and not helping the community enhance the standard of life (SBS Dateline 2013 ). In this situation, there are following ethical issues present in Vanuatu: 

  • Corruption: the current state of tourism and its money not getting distributed in the community shows a clear sign of corruption in the country. From the outside perspective, it is clear that the financial aspects of tourism have experienced fraudulent activities and embezzlement of money (Cheer & Peel 2011). This also becomes obvious from analysis of financial reports from the previous tourism committee of Vanuatu, with over a decade worth of annual financial reports not getting published before 2012. This data was not published and signifies a cover-up of money embezzlement. 
  • Social-inequality: to appeal to the tourists, both the local government and P&O Cruise Company has made many provisions in Vanuatu including developing facilities for the tourists such as public bathrooms. However, despite the fact that cruise ships land on the Island about once a month on average, these facilities remain locked the rest of the time. Local citizens are not allowed to use such facilities (SBS Dateline 2013 ). 
  • Low transparency: in the local market and among community leaders familiar with the tourism industry state, it is clear that the money is getting lost in a systemic manner. However, there are no ways of identifying the issue accurately and identify the parties committing fraud as both the cruise company and local government have taken the approach of little to no transparency about the money getting earned as entry fee from the tourism development (Cheer 2015).

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