Guyana, a small South American country with a population of less than a million people, has recently become one of the world’s top oil producers. Since 2015, when ExxonMobil discovered huge offshore oil reserves, Guyana has been experiencing an unprecedented economic boom. According to the International Monetary Fund, its gross domestic product per capita is expected to reach $60,000 this year, up from $11,000 in 2015. This makes Guyana one of the richest countries in the world in terms of income per person.

However, this oil wealth also poses significant challenges and risks for Guyana’s development and sustainability. As the world is trying to reduce its dependence on fossil fuels and achieve net zero emissions by 2050, Guyana faces the dilemma of how to make the most of its oil resources before they become obsolete or undesirable. Moreover, Guyana has to balance its oil revenues with its environmental and social responsibilities, as well as diversify its economy to avoid the so-called “resource curse” that has afflicted many other oil-rich countries.

One of the sectors that Guyana can invest in to foster its economic diversification and resilience is travel and tourism. Tourism is already the third largest export earner sector in Guyana, after oil and natural resources, contributing 7.8% to its GDP in 2018. Guyana has a unique natural and cultural heritage that attracts visitors from around the world. It is home to vast rainforests, diverse wildlife, indigenous communities, colonial architecture and a rich multicultural society.

The new oil wealth can provide Guyana with the opportunity to enhance its tourism potential and competitiveness. With more financial resources, Guyana can improve its infrastructure, connectivity, security, quality standards and marketing strategies to attract more tourists and increase their spending. It can also develop new tourism products and services that cater to different segments and niches of the market, such as ecotourism, adventure tourism, cultural tourism and business tourism.

However, the new oil wealth can also have negative impacts on Guyana’s travel and tourism sector if not managed properly. The influx of oil revenues can lead to inflation, exchange rate appreciation, crowding out of other sectors and increased inequality. These factors can reduce Guyana’s tourism attractiveness and affordability for both domestic and international tourists. Moreover, the oil industry can pose serious threats to Guyana’s environment and social fabric, which are the main assets of its tourism sector. Oil spills, pollution, deforestation, land conflicts and corruption can undermine Guyana’s natural beauty, biodiversity, cultural diversity and social cohesion.

Therefore, Guyana needs to adopt a prudent and strategic approach to use its new oil wealth for the benefit of its travel and tourism sector. It needs to ensure that its oil revenues are transparently and accountably managed, saved for future generations and invested in productive and sustainable sectors. It also needs to ensure that its oil industry complies with high environmental and social standards and contributes to the conservation and enhancement of Guyana’s natural and cultural resources. Finally, it needs to ensure that its tourism sector is inclusive, resilient and responsible, creating jobs and opportunities for all Guyanese people.

One of the key questions that arises from this analysis is whether oil and tourism can coexist in the same space without harming each other or compromising their respective goals. This question is not easy to answer, as different cases may have different outcomes depending on various factors such as the scale, location, regulation and management of both activities. However, some examples from around the world suggest that it is possible to achieve a balance or even a symbiosis between oil and tourism under certain conditions.

For instance, Budowski (1976) argued that tourism and environmental conservation can have a symbiotic relationship if both parties respect each other’s interests and cooperate for mutual benefit. He cited examples from Fiji, Kenya and Costa Rica where tourism based on natural resources helped to preserve them from degradation or exploitation by other sectors such as agriculture or mining. Similarly, some countries have managed to combine oil production with ecotourism or cultural tourism without compromising their environmental or social values. For example, Norway has developed a successful model of sustainable oil extraction that minimizes its impact on nature and society while investing in renewable energy sources and social welfare programs. Norway also offers various tourism attractions such as fjords, glaciers, wildlife and cultural heritage that appeal to different types of visitors. Another example is Oman, which has diversified its economy from oil dependence to include tourism as one of its main pillars. Oman has preserved its natural and cultural heritage while developing modern infrastructure and services for tourists who seek authentic experiences in a safe and hospitable environment.

These examples show that oil and tourism do not have to be incompatible or antagonistic activities if they are planned and managed with care and foresight. Guyana can learn from these experiences and adopt best practices that suit its own context and aspirations. By doing so, Guyana can maximize the benefits of its new oil wealth for its travel and tourism sector and for its overall development and well-being.