Exercise $15$

Island Cruise

NEGOTIATION $7$ E

LEWICKI $*$ BARRY $=$ SAUNDERS

Confidential Role Information for MAYOR GIL EGAN

$($From the Island Council of Tropical Island$)$

As the mayor of Tropical Island, you are faced with the dual mandate of preserving the island's natural resources, while at the same time promoting the island's economy. You are approaching the end of your first three$-$year term, and are preparing to run for a second term. Thus, you want to make decisions promoting the health and welfare of your fellow islanders to secure their votes.

You have been charged by the Island Council to negotiate with Captain Stuart Bing, the director of cruise ship operations for Island Queen, Inc, regarding his desire to secure exclusive anchoring and disembarkation rights to this tropical paradise. While you have sole responsibility for negotiating all agreements concerning Tropical Island's commercial activities, at least half of the eight$-$member Island Council must ultimately accept any agreement you negotiate.

You have recently been contacted by the director of another cruise ship company, the Island Maid, Inc. regarding visitation rights to Tropical Island. You have delayed meeting with her, because you believe an agreement with Island Queen, Inc. will be more beneficial to Tropical Island. Island Maid, Inc is a smaller company with an older, less luxurious ship, the Island Maid. A major concern is that older ships introduce significantly more pollution into the marine environment than newer ships like the Island Queen.

More importantly, Island Maid's clientele are generally middle$-$class retirees on fixed incomes. The mayors of other local islands have warned you that this segment of the cruise tourist population is less desirable because they tend to eat the complimentary meals provided onboard their ships instead of patronizing island restaurants and they typically do not spend money in tourist shops, preferring to sightsee and relax on the beach playing cards.

Based on the Island Maid's currently published itineraries, you anticipate they will want one$-$day visits, six times a year. Because the Island Maid is much smaller than the Island Queen, you estimate the demand will be about $300$ passengers per visit.

There are currently abouf $200$ tourists arriving or leaving the island per day by means other than cruise ships. Many council members believe that these tourists are already having a negative impact on the island. For example, cases of theft and drug abuse among island natives, which had never been a problem before recent tourism, are now being reported a few times a year. Still, the Island Council is aware of the economic benefit that tourism brings to the island. By offering an exclusive agreement to the selected cruise line company, the council expects they will be able to attract a higher level of clientele.

Because cruise ship passengers visit the island infrequently, and for only a brief period of time, it is felt that an increase in this type of tourism would be acceptable. Most council members feel that