Page 111 - Volcano and Geothermal Tourism

88 The Americas

8
Singapore
Korea Taiwan
6 Hong Kong
Malta Indonesia Cyprus Mauritius Malaysia
Real GDP Growth Per-Capita 1970-1989 –2 2 0 Chad Niger Nigeria Nicaragua Iran Fiji Cote D’Ivoire Mauritania Guyana Zambia
Botswana
4
Iceland
Algeria
Gabon
Gambia
Bahrain
Saudi Arabia
Venezuela
Liberia
–4

–6 United Arab Emirates
Kuwait
–8
0 10 20 30 40 50 60 70 80
Exports of Natural Resources, in percent of GDP, 1970
Figure 6.1 The curse of natural resources: Exports versus GDP growth for selected countries over the period 1970–1989
Source: Sachs and Warner, 2001

Montserrat case study The economy of Montserrat is dominated by

By way of example we turn to the Caribbean tourism and agriculture both of which suffered
enormously as a result of the volcanic activity and
island of Montserrat as a case study in how a most commentators now accept there is an urgent
catastrophic volcanic eruption can have disastrous need for the island to become self-sustaining, to
consequences for the local economy, but may yet some extent by repositioning Montserrat as a
provide some respite through volcano-related tourism destination and as a mechanism to attract
tourism (the natural resources curse notwith- new inward investment (to look at the perception
standing). Montserrat is a British protectorate and of volcanic eruptions as an agent of change see
the volcanic activity on which this paper focuses Dove, 2008). Indeed, this seems to be a UK
was centred around the Soufriere Hills in the government priority, which has made available
south of the island, beginning in May 1995 after £1.5M over three years to assist the Montserrat

recording seismic activity since 1992. On 18 July Tourism Board to develop a long-term strategy.
1995 the volcano erupted (Montserrat Volcanic However, before any of this can realistically happen
Observatory, 2009). two fundamental issues need to be addressed: (1)
The ongoing volcanic crisis of 1995–1997 risk management and risk perception relating to
destroyed much of the social and economic fabric present and on-going volcanic activity; and (2)
of the island (Druitt and Kokelaar, 2002 and Island transport and infrastructure (Cardona 1997).
references therein). Effects included a substantial
human exodus (the population fell from a pre-
eruption figure of 11,500 to about 4000, the Living with ongoing volcanic activity
majority living predominantly in the middle and Over half the population fled the island in 1995
north of the island. GDP fell from £38.7M (1994) and many have yet to return. Indeed many living
to £24.2M (1998) and tourism, which accounted only a short distance away on Antigua (currently
for approximately 25 per cent of GDP before the only primary route onto Montserrat) are
1995 fell to 16.67 per cent of a falling GDP in fearful of returning and may consider it so
1995. Ongoing financial support from the UK dangerous that they may never return. Coping
(via DFID) had reached £200M by 2004. with the volcano and volcanic risk, combined

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