Thursday, May 29, 2014

Support Local People

No, not again! Working for peanuts...

When we spend, what an average Balinese needs two years to earn, for enjoying two weeks of our holidays, we like to think we are also spreading our wealth to those not born with a silver spoon in their mouth.
How we achieve the maximum benefit for local population?


a) we buy a flight ticket
b) book accommodation through a booking system
c) choose only locally owned services
d) avoid using services provided by foreign owned businesses

Great! Mission accomplished! Mission – our holidays, yes – our altruistic goal not so much.

For getting to a faraway destination there is no way around – we have to buy a ticket. How the money spend for the ticket is distributed we know.
Maybe an Euro or two trickles down to baggage handler, cleaner, check in staff in Bali.

When you book your accommodation a nice commission will be diverted to the booking system. As a Balinese owner with no tax number, no bank account, no legal paper work can not cooperate directly with this booking system, he uses a friendly help offered some time ago by a clever guest. A tourist who knew how to profit from his stay in Bali is doing this for him (and several others). And of course extracts a fat friendly commission from the Balinese owner. As owner of the Balinese accommodation is in the end getting way less than expected, and his profit margin is sacred – the only solution is to cut a little more on already meager salaries of local staff.
Each employed at the place you enjoy hospitality at gets maybe 20 to 30 cents of your money per day. Cents, not Euros.

Avoid foreign owned businesses and help Balinese people by going straight to a local business, paying in cash, and people employed there will enjoy full benefits of your payment.
And in many cases services come at cheaper price, so it's a pure win-win situation.
There is just a minor catch here.
Local owner pockets more profit than foreign one. At lower prices for the services.
Should we declare him a spiritual guru of the new-age multidimensional economics?
Or a self-centered, egoistic guru leading a permanent “Working for peanuts” sweatshop?

Some facts are not overly advertised. As for instance much longer hours for staff when working for a local owner. Much lower salary when working for a local owner. Much less (or none) benefits for staff working for local businessman.

Similar to anywhere else in the world. Try to estimate if people working at an establishment seem happy – if so, good chances are, a decent part of your money is coming to them as well.

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