HOW TOURISM MONEY CAN BE RE-CHANNELLED INTO A SOCIAL ENTERPRISE FUND

HOW TOURISM  MONEY   CAN BE

 RE-CHANNELLED INTO A

  SOCIAL ENTERPRISE  FUND

           After a year of “perfecting”  this concept of  rechanneling  tourism money  into as socially oriented fund  where the accumulated money from participants (hosts and guests)  can be utilized to fund or capitalize  any viable social enterprise  in the Philippines at the request or initiative  of the participants themselves.

           Some background why  this  innovative alternative to raise money through tourism and/or hospitality  activities makes sense.

          For most if not all tourists  visiting  another place, city or country, the major expense of travelling is the hotel expense and food,  which can be even 10 times more.   Participating in this mutually beneficial program either as the guest or host will create a pool of money that can be used as capital or fund or subsidize community projects, at the discretion of the  “members”  outlined in the Foundation’s  Rules and Regulations agreed in writing by all members.

           In many countries,  the senior citizens may have all the time but no longer have much disposable left from their monthly Social Security or retirement income, after paying their share on mortgage or rent, food and healthy care needs.  Even a high ranking executive or auditor who used to be staying in a $250.00 per night for hotel and  another $100 a day for meals, under his  company’s  or client’s  expense accounts,  will normally STOP doing that once he or she is retired, once he spends his own retirement money!  (That happens to thousands of us retired auditors and/or managers or officers of big corporations!  

HOW PROGRAM WORKS:

           Having utilized the many  benefits of a “paid” membership of a highly credible  worldwide organization’s  “International Travel  Hosting Fellowship”  where members are free to seek/find  potential hosts in any city or country  where members live.  With a code of ethics and rules of conduct expected to followed,  thousands of guests are happy and the hosts also find fulfillment in helping out.  And this year’s guests  may be next year’s hosts. 

            Ernie Delfin, founder of  Foundation 4  Next Generation’s  (F4NG) and creator of   Hosting Fellowship Social Program (HFSO)  started experimenting the concept since a couple of years ago in his travels to the Philippines and also to Europe.

           Simply this is how the program  works:

Through the website (being constructed)  a  potential  guest (tourist)  emails  his desire to visit a place in the Philippines.  For instance Naga City, where a few able and willing members  are  already members.   After several  weeks of emails  or FB or Skype chats,  the guest,   Mr. G,  agreed  to be the hosted by Mr. H  for  a total of 5 nights/days,  paying (for example only) 1,000 pesos per bed and breakfast night  or  5,000 pesos for the total stay,  plus 10%, for  Administration and Management fee (for the website, accounting and bookkeeping).

           The P5,500  is deposited into the Foundations’ account (broken down as) 500 pesos general acoount  and the 5,000 is credited into a a Trust Account that will have  subsidiary ledger in the Guest’name for 2,500 and the the other 2,500 pesos in the Host’s  name.   To help defray any incidental costs that the host may have incurred,  the host can request a “withdrawal” of up to $35% of his share of P2,500 or  up to P875, payable to him within 3 days after the end of this homestay.

BENEFITS TO THE GUEST:

1.      His tourism dollars  can be expanded by probably  5 times  more nights compared to staying in a hotel.

2.      His bed and breakfast is taken care of , courtesy of his host who may be his guest also at a different  time.

3.      Potentially,  the host may (not mandatory) can serve also as his local tourist guide,  may meet him at the airport or train or bus station and send him off at the end of the hosting period.

4.      Potentially, this may be the beginning of a mutually beneficial  friendship that can last forever.

5.      His part of the “income” generated (from a normal tourism expense)  comes back to his name to help capitalize, fund or subsidize  social enterprises that are  recommended to the Foundations’ Board of Trustees.

BENEFITS TO THE HOST:

1.       His traditional practice of hosting other people becomes a  business enterprise,  earning some money from his “sunk” costs. (the room ,  the shower and  breakfast already exist)

2.      Gain another friend  who may also reciprotate   to him at another time.

3.      His part of the “income”  he realized  can be used by him personally up to 35%  and the remaining be in a POOL to be used to fund,  capitalize social enterprise that are approved  by the Foundations’ board of trustees.

4.      By simply becoming  a  host,   he learns to become a “business” man and become a  member of a pool of potential investors in his own communities’  business social enterprises.

5.      May become a member of the Foundation’s   Advisory  Board who   recommends to the Board of Trustees what prospective business enterprises locally are viable and profitable.  

BIG PICTURE:

                  The example of 1,000 pesos a day may be small in many areas/cities in the Philippines, especially outside 3^rd world countires.   It may even be double  the amount, or more  so  even at 2,000 pesos a night (about 50. Dollrs)  times 10 dayts is only 20,000 pesos or roughly 500 dollrs. (50% comes back to the guest’s  account!)

                Let’s use that for the BIG PICTURE:  

In  Spring 2012,  I  plan to stay at least 10 bed and breakfast nights in several places in the Philippines where I have  never been,  say in Naga City, where a  retired CPA friend is an avid member of the Fellowship.  $50.00 or 2,000 pesos times  10 bednights  =  P20,000

           Can you imagine if 100 people like me can do that in 2012  (first year)  that is whopping

  P2,000, 000  raised from  the tourists that would have just gone into the hotel’s  pockets, with no visible  social benefit, like what the Foundation hopes to achieve.

             With 2,000,000 pesos,  it can probably capitalize a small  “piggery”… a dressmaking  or a print shop  or  small laundry mat  or a feasible  network marketing  capital?

  

ADMINISTRATION

          As in any enteprise there is always a  budget (money)  to implement this, and the Foundation 4 Next Generation assumes the duty and responsibility to keep this started by  underwriting the construction of a good website,  hiring/delegating a bookkeeper/accountant to monitor and make regular reports  under generally accepted accounting principles  with utmost transparency and accountability for the benefit of all members (guests and hosts).

            To be a credible organization that can enforce a reasonable Code of Ethics and Rules and Regulations for all members,  a membership of no more than $10.00 per year or $25.00 one time fee for 3 years.  (This may be evaluated by the Board of Trustees in the future)

              We need money to have the website, among others and the duties of a bookkeeper to make  regular  accounting of funds received and disbursed.