1

APRIL 2016

This publication was prepared by Mr. Jack Delf, with contributions from Ms. Snjezana Derviskadic.

LEARNING BY DOING PRODUCT DEVELOPMENT FOR TOURISM INNOVATORS Step by Step Guidelines

2

LEARNING BY DOING PRODUCT DEVELOPMENT FOR TOURISM INNOVATORS The creation and support of innovative business clusters to deliver new, successful, market leading, tourism offers

STEP BY STEP GUIDELINES

DISCLAIMER

The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

3

TABLE OF CONTENTS Introduction: .......................................................................................................................... 5

The need for a new approach to Sustainable Tourism Development ........................ 5

Section 1: ................................................................................................................................ 6

LEARNING BY DOING MODEL ......................................................................................... 6

Implementation through stages ................................................................................................................................................................ 7

Stage One: Identify Opportunity ........................................................................................................................................................ 7

Stage Two: Create Partnerships ......................................................................................................................................................... 7

Stage Three: Product/Experience Design ..................................................................................................................................... 8

Stage Four: Product Marketing ............................................................................................................................................................ 8

Stage Five: Identification and support for Product ‘Replicators’ ...................................................................................... 8

Section 2: STEP BY STEP TOWARDS NEW TOURISM PRODUCT .......................... 9

Stage One: Identifying the Opportunity .............................................................................................................................................. 9

Market Demand ........................................................................................................................................................................................... 9

Audit of Available Attractions/Assets ........................................................................................................................................... 12

Identification of Supporting Tourism Attractions and Infrastructure ......................................................................... 12

Stage Two: Creating Partnerships ....................................................................................................................................................... 13

Building a Successful Business Cluster .......................................................................................................................................... 13

Involving Communities, Civil Society and Government .................................................................................................... 14

Stage Three: Product/Experience Design ........................................................................................................................................ 14

Competitive Analysis .............................................................................................................................................................................. 15

Identification of Key Elements ........................................................................................................................................................... 15

Detailing .......................................................................................................................................................................................................... 16

Investment ..................................................................................................................................................................................................... 16

Training ........................................................................................................................................................................................................... 16

Stage Four: Product Marketing ............................................................................................................................................................. 17

Key Markets and Customers ............................................................................................................................................................. 18

Acknowledgements: ................................................................................................................................................................................ 19

ANNEX 1: Example training factsheet for Thematic Product Development ......... 20

ANNEX 2: Geotourism Principles for Cluster Partners ............................................. 24

4

ANNEX 3: Guide training and operating materials prepared for the project ........ 26

ANNEX 4 – Learning by Doing budget planning ........................................................... 27

ANNEX 5: ENVIRONMENTAL REVIEW CHECKLIST ................................................ 33

5

INTRODUCTION:

THE NEED FOR A NEW APPROACH TO SUSTAINABLE TOURISM DEVELOPMENT Traditionally, tourism development has concentrated on increasing visitor numbers to achieve revenue growth. The potential negative impacts of growing tourist numbers on the cultural and natural attractions of the destinations have not been sufficiently considered. Where tourism has grown, higher visitor numbers have often caused bottlenecks and negative environmental impacts. Tourism development is often driven by external venture capital, seeking a quick return from property development or the ‘next inexpensive mass tourism offer’. Consequently, much new tourism infrastructure is owned or managed by international businesses which retain the largest share of profits.

Managed tourism development should promote sustainable revenue growth, help to conserve the cultural and natural attractions of the host destination and bring the widest possible spread of economic benefit for the host communities. Tourism development goals should also seek to disperse tourism impacts and benefits geographically within a destination, encourage higher value tourism (increased expenditure per guest), encourage repeat visits and extend the seasonality of a destination’s tourism offer. Many national tourism development strategies have adopted these goals and most have identified that the creation of new tourism experiences is an effective way to achieve these goals. Often infrastructure improvements are put in place, (new trails, signage, development of local homestays) to support new product development. Trainings are often organized to teach businesses about new tourism and new markets.

However, tourism businesses themselves can be slow to adapt their offers and to invest in new products. The lag between traditional tourism development initiatives and the emergence of new home grown products from existing local tourism businesses can be attributed to a number of factors. The first block is lack of understanding of the detailed elements which an offer needs in order to appeal to new markets, (for example adventure travel trips tend to be more expensive than traditional tourism, which might suppose that higher standards of accommodation and services are needed, this is not the case). Many tourism businesses do not know how to market to new audiences, particularly with a new and unproven offer. Businesses lack established contacts and clients in the new markets.

The ‘Learning by Doing’ product development model is designed to overcome these obstacles through intensive mentoring and support, from the initial product design stage through to marketing and sale of the new products.

The aim of the ‘Learning by Doing’ program is to provide intensive support to a few selected business clusters, to create new, commercially successful tourism offers which can serve as best case examples for other businesses to replicate in the destination.

6

SECTION 1:

LEARNING BY DOING MODEL The REG ‘Learning by Doing’ development model is designed to assist local businesses and associations from across the potential tourism economy, to create new commercially and environmentally sustainable ‘themed’ tourism offers.

The model takes a focused approach, using close mentoring, specific, detailed advice and practical support1 for selected local business (incubator) clusters, to help them develop new, product specific high value visitor experiences. The new visitor experiences will be packaged as commercially sustainable tourism products, bringing income and employment for the cluster members.

The first objective for each incubator cluster is to deliver a ‘Learning by Doing Retreat’, based upon a new thematic tourism offer. The Retreat is then attended by other local participants, either tourism businesses, associations or NGO’s working in areas related to the theme of the new offer. The Retreat is a valuable opportunity to practice the delivery of all the new activities and services and collect feedback from similar local businesses and organisations, before the offer is launched commercially. The Retreat also provides promotional materials (feedback, images, video etc.) to begin marketing the new offer.

The offers developed in this model must be commercially viable (with the objective that paying guests arrive within the first year after the product has been developed).

Marketing and sales support should be given to help the cluster contact new customers. As each new offer is specialist and thematic, the project should first identify the optimum markets and then follow a targeted approach. Specialist press and trade should be contacted with an initial press release, opportunities such as specialist trade fairs, media should support an online presence.

The new offers will be regional success stories, providing ‘locally owned’ examples of how to develop market leading tourism experiences and best case examples, which other businesses from the region can replicate. Potential regional replicators are introduced to the concepts through the ‘Learning by Doing’ retreat, in which they experience the new offer as the first ‘trial’ guests.

1 Financial assistance, for materials and equipment, are not normally provided to the new business clusters. Instead the businesses which will directly benefit from the new offer are expected to provide any investment required. In some circumstances the new product cluster can be advised about additional funding sources (from other development projects).

7

IMPLEMENTATION THROUGH STAGES

STAGE ONE: IDENTIFY OPPORTUNITY

To simplify the process of identifying opportunity for new tourism products, it is best to consider key tourism ‘themes’ (such as: luxury; spa; outdoor; winter sports; wildlife; cultural themes; gastronomy & wine, voluntourism etc.). Which themes offer potential for commercial success, match the available ‘assets’ in the destination and which can support the destination’s tourism development goals? For each ‘theme’, opportunity is identified by understanding the ‘aspirational drivers’ which influence consumer choice and by understanding how well the destination meets those aspirations, actually and potentially.

Understanding consumer demand

As with any product development, in any industry, the first step is to identify consumers’ needs and desires. Fortunately, market research data is collected and disseminated by UNWTO, Eurostat, World Travel and Tourism Council, Adventure Travel Trade Association and others, (see below page 7 for more sources). An analysis of market data will identify consumer demand trends, in particular where there is growing demand for specific tourism themes. More detailed analysis of each theme will identify those elements which need to be included in a successful offer (aspirational drivers).

Identification of gaps in the existing tourism offer.

Once consumer demand is understood, it is necessary to examine where the opportunity exists to create new experiences/offers. The process requires a comparison of the existing tourism offers in the destination, with successful international examples.

An understanding of changing consumer demand also allows a new consideration of the destination’s assets. For example, features such as the unfamiliarity of everyday ‘living culture’, or the lack of large scale tourism infrastructure, which once discouraged tourism, have now become attractive to visitors. In developing the new products, the business clusters need to conduct their own audit of local attractions, tailored to the specific theme of the new offer.

STAGE TWO: CREATE PARTNERSHIPS

Once an opportunity has been identified, at one or more favorable geographical locations, a ‘town hall’ meeting is held with local stakeholders, to explain the project and to provide initial training and networking. The meeting should include tourism businesses, accommodation providers, local authorities but also local interest groups as determined by the theme of the offer (for example gastronomy clubs, nature conservation groups, cultural associations and NGOs).

During the meeting the benefits of joining the project are explained. Interested parties are invited to apply to join the new cluster.

To meet the objective of dispersing the financial benefits of tourism as widely as possible, the new offers need to involve the collaboration of one or more tour operators, with a range of suppliers including: accommodation providers; transport providers, activity providers (often from associations or community groups not previously connected with tourism); and attraction managers. These collaborative groupings are developed by the project, (identified, recruited, assisted with business planning and contractual matters) then supported as ‘incubator clusters’ through mentoring, site visits and specific training programs and marketing support for the new offers.

To ensure the financial sustainability of the new offer, it is necessary to build the cluster around an established local tour operator. The tour operator has the experience, logistics and licences to operate in tourism. Normally the local tour operator would be the ‘head’ of the cluster, with the greatest

8

investment of time and resource in developing the new offer. The other ‘key’ role in the cluster will be the activity providers as they are normally the facilitators/ educators/ animators of the new experiences.

STAGE THREE: PRODUCT/EXPERIENCE DESIGN

The process of design involves face to face planning meetings with cluster members. Initially the relevant market research is presented, to indicate the package elements which are becoming increasingly sought after by international tour operators/consumers. Successful international tourism offers are studied and dissected to see if they can be recreated and then improved upon. A key part of the process is ‘brainstorming’ with all of the cluster members to identify all activities and attractions which could be incorporated into the new offer.

STAGE FOUR: PRODUCT MARKETING

The marketing of the new offers begins with the initial ‘Learning by Doing Retreat’. The trial of the new offer provides the cluster with marketing materials (testimonial, images, video etc.). The project then prepares an outline marketing plan and assists with introductions to potential clients (the objective being to sell the new offers to international inbound tour operators in the first instance). Promotional materials are also prepared and promoted through the various channels including trade shows and online.

STAGE FIVE: IDENTIFICATION AND SUPPORT FOR PRODUCT ‘REPLICATORS’

The ‘Learning by Doing Retreat’ invites other relevant, local parties to experience the new offer. Where possible assistance should also be given the attendees to create their own clusters and new products. Training materials and marketing support can be shared. If close mentoring and advice is also possible this should be provided for the replicators.

9

SECTION 2: STEP BY STEP TOWARDS NEW TOURISM PRODUCT This section will now provide more in detail description and practical guidance of the stages 1-5 above. ‘Real world’ examples will be given for two themed products developed in the Western Balkans region: Wildlife viewing and conservation tours in Macedonia, and Active culinary tourism in Bosnia and Hercegovina

STAGE ONE: IDENTIFYING THE OPPORTUNITY

MARKET DEMAND

Understanding consumer demand - Market research

To identify generic changes in tourism market demand, the following sources are useful:

EUROSTAT EU TOURISM DEMAND DATA:

http://ec.europa.eu/eurostat/web/main/news/themes-in-the-spotlight/tourism

EUROMONITOR:

http://www.euromonitor.com/tourist-attractions

UNWTO, ANNUAL REPORTS AND BAROMETER:

http://www2.unwto.org/annual-reports

TGI AND CONSUMER PREFERENCE DATA: Mintel IPS Data, 2012 UK Outbound Tourism market

Other insights into specific tourism themes can be obtained from various sources. However, for many themes (such as educational or learning holidays), published data on consumer preferences is scarce. In this case, useful information can be obtained from an analysis of existing products from other destinations, ideally where a tourism product has been offered for at least 2 seasons and customer feedback is available. International specialist operators and associations can also be contacted for advice. (For the Bear watching and conservation offer, developed in Macedonia, advice on product design was given by Rewilding Europe, Biosphere Expeditions and Natural Selection). Other useful sources include data published by online groups (LinkedIn tourism groups in particular). The best source for information about Adventure Travel in general is the ATTA:

ADVENTURE TRAVEL TRADE ASSOCIATION – ATDI INDEX AND MARKET STUDIES http://www.adventureindex.travel/docs/atdi_2015.pdf; http://files.adventuretravel.biz/docs/research/adventure-tourism-market-study-2013-web.pdf

Finally, it is important to study data specific to the destination, to understand the existing customer base while product offering, national tourism statistics and exit surveys are also invaluable.

SELECTED WESTERN BALKANS SPECIFIC SOURCES:

ALBANIA - risialbania.al/wp-content/.../Tourism-Sector-Market-System-Analysis.pdf

BOSNIA AND HERZEGOVINA - https://www.researchgate.net/publication/265905816_Tourism_in_Bosnia_and_Herzegovina

KOSOVO- www.mti-ks.org/repository/docs/Sector_profile_Tourism_130623.pdf

10

MACEDONIA - Tourism in the Republic of Macedonia, 2010-2014; www.stat.gov.mk/PrikaziPoslednaPublikacija_en.aspx?id=18

MONTENEGRO- Montenegro tourism development strategy to 2020 http://bit.ly/1Q9qGFm

SERBIA- http://www.serbia.travel/download/WTTC_Serbia_Report.pdf

Key Market research findings:

Although the volume of all tourism is growing (International Tourism arrivals grew by 4.3 % in 2014 to 1.133 billion – UNWTO), some sectors are growing at a much faster rate and point to changing consumer demand.

The fastest growth sector in global tourism demand is for ‘adventure travel’ categorized as including a mix of physical activities, wildlife and cultural experiences. Adventure travel has grown by an average 65% per annum since 2009 and now is worth $263 billion per annum – (source: ATTA). The ATTA 2013 Adventure Tourism Market study shows that 42% of Europeans and North and South Americans reported the main activity of their most recent trip (domestic or international) to be adventure-related. Adventure travelers are more likely to seek authentic connections with local communities, typically pay more for quality experiences, favor smaller group tours and have lower expectations for developed infrastructure. Approximately 37% of international travelers participated specifically in soft outdoor adventure activities and 5% participated in hard outdoor adventure activities.

Another trend in global tourism is the rising demand for active learning experiences – often defined as ‘Edutainment tourism’ (in which guests take an educational or instructional course). Edutainment or Learning holidays ARE forecast to be the fastest growing sector in the next decade (Source: The Centre of Future Travel Studies, Niche Travel Report).

Voluntourism, (where guests contribute directly to local humanitarian or conservation projects), short stay ‘out of season’ mini vacations, special interest tourism (wildlife, wine, gastronomy, arts and crafts) are all themes which have shown greater than average demand growth in recent years.

Increasingly international tourism consumers are seeking unique and authentic (little changed) destinations. Globally, demand is growing for culture and nature based activities and locally owned accommodation options, which allow tourists to interact and learn about local communities. Tourists are increasingly concerned about the potential harmful effects of mass tourism and want new experiences which minimize negative impacts. These changes in consumer preference are dramatic, adventure tourism, activity learning holidays, wildlife and nature tourism, specialist small group tourism have been growing in market share consistently over the last decade.

Identification of gaps in the existing tourism offer.

A survey of available products in the region should be undertaken, then compared with products which have been sold or promoted successfully in other destinations. The comparison is partly subjective, but can also be quantified in terms of price, sales, media coverage, and trip reviews. To make a comparison with successful examples, select tourism products, (tours and inclusive vacations), which have been offered by major international tour operators, with guaranteed departure dates, for at least 2 seasons. The promotional terminology used in successful international tourism offers, and customer trip reviews also validated inferences drawn from market research, concerning the needs and desires of the consumers.

11

Example - Western Balkans Tourism product gap analysis:

Methodology: During 2014 the REG project asked 220 local businesses to submit tourism offers (tours and activity based programs) which could be promoted to showcase the range of tourism offers available in the region. The emphasis was placed on the need for new and innovative product offerings for the themes of: Wine, Gastronomy, Living Culture, Traditional Arts and Crafts, Music, Nature and Wildlife Tourism, Outdoor active pursuits, and Historic Journeys. More than 180 tours were submitted and then compared with the best tourism products offered by competing destinations.

Results: From this analysis, it was apparent that although the Western Balkans has a wealth of unique cultural and natural features which could appeal to international visitors, it was evident that the local tourism industry has been slow to develop visitor experiences to meet changing consumer demand. The following shortcomings were identified:

• Outdoor activity focused offers, such as rafting, hiking and biking are now quite well developed across the Western Balkans, with a wide range of tours and routes available. What is missing is the connection between activities for guests related to the region’s cultural and natural attractions, the distinctiveness of the destination (other than the scenery).

• Tour programs rely too heavily on observational visits to monuments, historic buildings or scenic locations.

• There are few opportunities for guests to take an active part in cultural or nature based learning experiences.

• There are few opportunities for guest to meet and make connections with local communities and individuals, not working in the tourism industry

• Outdoor activity guides generally lack the skill for interpreting or presenting cultural attractions and wildlife.

• Because the regional tourism industry has relied heavily on beach, sun and traditional ‘observational’ tours, there are very few all-year, weather neutral experiences or offers for international visitors.

It was also apparent that many of the stated objectives of sustainable tourism development are insufficiently addressed in the current regional offer. (Research shows that tourism consumers are increasingly selecting tours operators which deliver sustainable tourism products, so ‘sustainability’ is now a market imperative and not only a requirement for governments).

Gaps identified included:

1. Tourism forms which benefit the whole ‘tourism economy,’ including local communities. Where local people retain ownership and control of the most valuable elements (authentic experiences) of the tourism offer.

2. Offers which ensure the protection and conservation of the region’s most valuable tourism assets, its unique cultural and natural diversity. (Offers which directly value and capitalize on the region’s wildlife and richly preserved ‘living’ culture).

3. Offers which met the growing consumer demand for authentic active cultural and nature focused experiences and provide opportunities to meet and learn from local people.

4. Attractions or activities which encourage the dispersal of tourism benefits and impacts away from existing tourism ‘hotspots’.

5. Offers which can lead to the extension of the tourism season with more non-seasonal or ‘weather-neutral’ attractions. Varied seasonal offers can encourage repeat visits to the region.

From the results and follow up interviews with the participating businesses, it was apparent that the regional tourism industry needed more focused product development support and successful local product examples which they could emulate.

12

AUDIT OF AVAILABLE ATTRACTIONS/ASSETS

Market research will identify the attractions and activities which have appeal to consumers, with these insights it is possible to conduct a review of the assets already available in the destination, to create new offers. The focus on thematic tourism helps to identify elements which may have been overlooked in traditional tourism offers (for example, the development of a new gastronomy themed offer allows the product development cluster to concentrate on food based experiences, cookery classes, traditional production and preparation methods, local food varieties etc.) which have less appeal for general tourists. The inclusion of a wide range of businesses and particularly associations and organizations not already working in tourism, broadens the range of local knowledge and expertise and helps to identify potential tourism opportunities.

IDENTIFICATION OF SUPPORTING TOURISM ATTRACTIONS AND INFRASTRUCTURE

The best tourism offers include a variety of experiences, which provide flexibility to allow the guests to make choices and which include any elements which make the destination unique.

The offer needs to include suitable accommodation, catering and transport options, depending upon the price level of the offer.

Example: Wildlife Viewing and Conservation in Macedonia – Wildlife tourism audit.

Research shows the importance of wildlife viewing as a tourist attraction. For all tourists 33% rated the chance of seeing rare or unique wildlife as highly important in choosing a destination. One UK survey showed that 90% of holidaymakers said enjoyment of wildlife was a priority for their next holiday. The global wildlife tourism market is estimated at 12 million trips per year. The wildlife tourism sector is predicted to grow by 8 -10% over the next decade, double the growth rate of all tourism. Market research shows that wildlife tourists are predominantly attracted by large, iconic and endangered species. Market research also gave insights into the optimum design and delivery of Wildlife tourism experiences with elements either existing or possible to develop in the region. With 85% of Europe’s Flora and Fauna, Macedonia is the number one Biodiversity hotspot in Europe. Macedonian national parks are home to all of Europe’s ‘BIG 5’ mammal species: Bear, Lynx, Boar, Wolf and Deer. The only place in Europe where all species exist together, in relatively large numbers and in a truly wild state, unfenced and free to roam across park and national boundaries.

According to state institutions and environmental groups which supported the new product cluster and interviewed during the project, much of the flora and fauna extant in the region is endangered or compromised by human activities. State funding into research and conservation is inadequate, providing a willingness from these institutions to work with tourism, but also the opportunity for visitors to contribute to meaningful conservation work.

Of 220 tourism businesses contacted to submit tourism offers for promotional support in 2014, 189 replied, only 5 tours offered wildlife as a main attraction, 3 of these were hunting packages, the remaining 2 were deemed to be less developed than tours offered in competitive destinations. No offers included opportunities for voluntourism or contributions towards conservation efforts.

Missing elements in the regional wildlife offer (previously identified through market research as being desirable) included: experienced, expert nature guides; opportunities to see and ‘get close’ to the wildlife; opportunities to access closed areas of natural reserves under the supervision of conservationists/scientists/park rangers; wildlife tourism infrastructure and equipment (viewing hides and vision equipment); sufficiently developed supporting activities to compliment the core wildlife tourism offer.

13

For themed or specialist holidays the focus should be on finding or developing attractions and activities which are relevant to the theme. By definition, special interest holidaymakers have very specific needs and desires.

STAGE TWO: CREATING PARTNERSHIPS

In choosing best cluster partners to work with, the following selection criteria should be followed:

1. To ensure the widest possible distribution of benefit/income from the new offer, the incubator cluster must include the widest possible range of local suppliers. As well as the main activity provider(s) each cluster should include: complimentary local attractions, restaurants, accommodation providers, cultural or nature based associations as well as travel service suppliers.

2. A ‘cluster leader’ is needed for each new offer, this should be a locally owned tour operator or travel agent which has been in operation successfully for more than 10 years. Their expertise is vital to ensure that the new offer can be successfully delivered. The cluster leader must have proven experience in marketing and selling tourism, making travel arrangements and hotel bookings etc. Established businesses also have additional logistics support needed for the new offer, this might include buses, brochures, international payment facilities, licensed guides, language skills and a website or online marketing channels.

3. As the new offer is to be developed for the cluster, with product design advice and training, previous experience of new tourism is not essential.

BUILDING A SUCCESSFUL BUSINESS CLUSTER

1. Building a successful Business Cluster relies on the enthusiastic participation of motivated expert members.

2. The availability and inclusion of supporting offers and attractions to complement the tour theme, will largely determine the size and make-up of the cluster. Starting from the initial core other cluster partners are sought, essentially suppliers to the lead business.

Example: Wildlife Viewing and Conservation in Macedonia.

Although it was decided that Bear watching and tracking would be the main attraction of the new offer, it was decided that to differentiate from other similar offers, an element of voluntourism would also be included, enabling guests to feel that they had participated in essential conservation work and had opportunities to engage and interact with park rangers, scientists and conservationists. Supporting activities were developed, including visits to nearby Lake Ohrid (‘a must-see local attraction’) to take part in conservation work with the Ohrid Biological institute and see the lake from on board the institution’s research vessel. A number of authentic and meaningful tasks were identified at the parks which could be completed by the guests under supervision, these included catch and release of deer from the reproduction center, hiking to check fences for Bear damage, tree planting feeding programs and habitat repair etc.

As the offer developed, the new product cluster came to include: accommodation providers; restaurant owners; guides; National Park rangers, local hosts to teach traditional cookery; photographers; transportation companies

14

3. Cluster members will often need support and advice in business planning, as well contractual and legal considerations.

4. All cluster members need to understand the objective of the project which is to deliver a commercial product. All must be able to commit time and resources once the product is launched.

5. All cluster members need to understand the aspirational drivers (needs and desires) of their future customers. The results of the market research need to be summarized and explained together with the detail analysis of competitive offers.

6. Plans must be transparent to all project stakeholders with everyone knowing what decisions are being made, why they are being made and who is making them. Collaborative Planning demands personal responsibility from all involved.

INVOLVING COMMUNITIES, CIVIL SOCIETY AND GOVERNMENT

There is a wealth of local knowledge in culture, nature and history which is largely untapped by tourism businesses. NGOs, cultural or environmental groups have enthusiastic members who could derive a secondary income from tourism as facilitators, animators or guides for the new experiences. Similarly, the authenticity of the new experiences and the necessity for sustainability (to protect and conserve cultural and natural resources) requires that relevant stakeholders are consulted. The development of new visitor experiences needs to comply with existing tourism law (if such activities have already been considered in existing legislation). Often new regulations will be needed to allow new activities. As a minimum, the new offer must ensure that health and safety legislation is adhered to. Local Government can also support the staging of the initial town hall meeting and introduce local stakeholders as potential cluster members.

STAGE THREE: PRODUCT/EXPERIENCE DESIGN

In choosing the best products to develop, the following selection criteria should be followed:

Example: Wildlife Viewing and Conservation in Macedonia - Cluster.

Gorki Balojani (Cluster lead) – Balojani Travel and Tours.

Mavrovo and Pelister National Parks and rangers.

Lake Ohrid Hyrobiological Institute.

Villa Raskrsnica, Brajchino village.

Villa Kostovski, Brajchino village.

Villa Livae, Brajchino village.

Mal Odmor Restoran.

Freelance Guides Mavrovo & Pelister.

Biosfera; Ecological Movement of Macedonia.

15

1. The new products/offers should fill the gaps identified in the regional offer, (see above page 9 Introduction - Identification of Gaps in the Western Balkans regional tourism offer).

2. The new offers should be focused on small group, high value tourism. The value proposition is based upon the quality (authenticity and uniqueness) of the experiences and activities rather than the quality of accommodations or luxury elements which would require a large capital investment or infrastructure developments. This will reduce the investment required in the new product.

3. An analysis of market demand and existing competitive offers (from other destinations), must show that a market already exists for the new products, i.e. that they can be sold. To appeal to a specific ‘new tourism’ market, the new offer should be based around one key idea or theme. For example: In the first two years of the REG project the themes chosen were: Wildlife Viewing and Conservation activities, Gastronomy and Wine making, Birdwatching and Musical culture.

4. The products developed must be those which can be most easily replicated by other businesses/ clusters in the region. The offers should be based upon the region’s existing tourism assets (in the Balkans these were identified in consultation with the members of the Western Balkans Geotourism Council and include: the diversity of surviving cultural activities and pastimes; the unspoiled nature and the region’s biodiversity). The new offers should not require a large capital investment, but instead should make the best use of these existing elements.

5. To broaden the appeal of the new offer and to allow adaptability to customer demand, it is best to develop several versions of the offer ranging from 1 to 14 days (for the Learning by Doing retreat a condensed 3-day version is prepared). In this way individual cluster members have the incentive to create additional visitor experiences and adapt the primary offer for other markets (local day trippers, other themed tours).

COMPETITIVE ANALYSIS

Once the new offer has been prepared and costed it is necessary to make a further comparison with similar products from other competing or neighboring destinations. Service standards (quality of accommodation) and the quality and variety of the attractions and activities included in the product need to be compared together with the price. Rather than consider a lower price as the competitive advantage for the new offer, it is best to look at the overall value proposition. How do the key elements of the offer compare for quality?

IDENTIFICATION OF KEY ELEMENTS

Normally it is advantageous to include more variety, activities and attractions than competing products, but less is not always more. Avoid diluting the quality of the experiences by adding more elements than guests can comfortably experience in each day. Free time, the chance to savor each experience and the need to avoid long days, too many early starts and late finishes are important in well planned packages.

For specialist themed holidays it is important to keep activities within the theme (for example a Wildlife specialist offer should not include irrelevant excursions, church visits and historic sites, just because they are there!). The exception to this rule is for the most iconic sites, first time visitors to the destination will want to have at least an opportunity to visit world famous attractions – ‘must see’ attractions. If possible, ways should be found to include iconic sites in keeping with the tour theme. For example: the Wildlife Viewing and Conservation tour in Macedonia takes place close to the UNESCO listed Lake Ohrid. Rather than visit this ‘must see’ location on an ordinary tourist excursion boat, the Lake Ohrid

16

Biological Institute were contacted and invited to join the cluster. As a result, wildlife tour guests can now visit the lake on the Institute’s own research boat and learn about and take part in the Institute’s ecological conservation work. Similarly, a monastery visit could be included in a gastronomy themed offer, if there is some connection with food, perhaps with wine or honey production at the monastery, or the chance to learn to cook with the monks.

DETAILING

In the product detailing phase, the cluster need to develop a detailed program for each day or activity. The elements must be costed and timed. Allowance must be made for contingencies such as inclement weather, travel disruption. Alternate itineraries need to be prepared in advance. Activities need to be rehearsed and equipment needs and staffing levels planned.

A detailed risk assessment needs to be prepared for all activities and a crisis management plan readied and rehearsed between the cluster members.

For the detailing stage a number of templated forms (risk assessment, medical questionnaires, waivers, insurance, guide kit lists, outline schedules and cost sheets) should be provided for the cluster to complete.

INVESTMENT

It is expected that the cluster partners will invest in sufficient equipment and materials to launch the product, as they stand to gain directly from the new offer. To support the investment decision the cluster partners need to have confidence that they will gain a profitable return on their investment, so income projections need to be prepared.

Normally the estimation is based upon a minimum of 3 group bookings in the first year (with a maximum group size of 15 guests, but a sell through of 66% or 10 guests per booking,) increasing to 6 and then 12 groups in subsequent years. Estimates are based on prior experience running specialist group tours and forecasts should be conservative – it is important to manage the cluster partner’s expectations. To pitch an estimate of income too high might lead to unsustainable investment in the new offer or affect confidence in the advice being given. The experience of the cluster lead (the tourism business which will manage the new offer) is invaluable and business plans need to be agreed.

TRAINING

The Learning by Doing project is itself a hands-on, practical training. Working through the whole product development process, in collaboration with the project consultants and cluster partners towards a commercial objective is the most effective way to learn the process. However, for each offer

Example: Wildlife Viewing and Conservation in Macedonia - Cluster.

The new offer was designed to utilize existing assets in the national parks. Off-road vehicles can be supplied by the parks or rented from local operators. The largest single capital investment was in new bear hides which the Parks financed. Mavrovo National Park has an existing accommodation which was provided by another project, but has been unused so far, the new offer is the incentive for the park managers to now furnish the building. Other specialist equipment needed includes a small number of night viewing equipment and binoculars, it is also hoped that these can be funded either by the cluster lead partner or the National Parks. The cluster lead partner (Balojani Travel) has invested in some of the transportation costs during the development stage, accommodations and translations, as well as graphic design and marketing materials for the new offer.

17

specific training requirements need to be identified during the gap analysis. The main training needs which have been identified include:

Facilitation and teaching skills for the new activity animators. Where there is no existing pool of teaching expertise for specialist themed tours (for example cookery and craft instructors) training needs to be given, in addition to experience gained during the Learning by Doing retreat. One approach has been to contact either local interest groups to find the expertise or to contact academic institutions to find facilitators. It should be emphasized that for learning holidays the teaching approach is often very different than in academia; no qualifications are gained and the emphasis is on the fun and enjoyment of learning in a relaxed atmosphere. Facilitators do not necessarily need qualifications in the theme of the tour, but local knowledge, experience, empathy with guests and an ability to make the subjects entertaining are vital!

Specialist skills training. Locally sourced and experienced guides should be used, but many lack the necessary knowledge to lead specialist groups. Specialist holidaymakers normally have an enthusiasm for the themes and are knowledgeable about their subject, so it would be unrealistic during the time frame of the product development to train complete novices in a subject to the standard needed to become facilitators. For this reason, local experts need to be included in the cluster (for example from wildlife, conservation, cookery, music or wine associations) and provide some knowledge training for the professional guides before they accompany the first groups.

Guide skills training. It is unrealistic to expect a local specialist expert to become an expert in guiding and leading groups overnight. A 3-4-day practical guide training course should be provided, allowing the experts to practice guiding skills and understand the basic guiding requirements, but only long practice and experience make expert guides. Therefore, even after training, the offer needs to have both a local expert and a registered guide working together, leading each group. It is also helpful to develop a guide skills booklet (aide memoire) for inexperienced guides and facilitators.

Language Skills. Expert facilitators may not have adequate language skills to teach or lead groups. It is possible to work with guests through an interpreter but this increases the cost of the offer and guests prefer to make a connection with the teachers and guides. Therefore, each facilitator should have at least a limited vocabulary covering standard questions and responses, plus technical terms relating to the tour theme. This level should be achievable with a 2-3-day intensive language training and follow up.

Other trainings will be identified during the gap analysis. Skills which are vital for any tourism offer include: sustainable tourism, environmental and ethical standards, first aid, risk assessment, service delivery, sales and marketing.

STAGE FOUR: PRODUCT MARKETING

An important incentive for partners to join the cluster and invest in the new product is the promise of commercial success. A marketing plan should be prepared and costed, and outlining a brand (a motivational promise which the offer will deliver) and the competitive advantages of the new offer. The marketing plan must also identify key target markets. The most direct and cost effective marketing approach should be to sell the new offer to established inbound international tour operators (see below Key Markets and customers). It is also an advantage if potential trade partners are contacted during the product development stage, so that the new offer can be tailored or easily adapted for them.

18

Expert help should be mobilized for the development of marketing materials (press releases, photography and video, graphic design and product layout, promotional copywriting of the offer script etc.).

Marketing and media opportunities should be pursued, (attendance to trade shows, online coverage via social media and destination promotional sites, reportage and editorial coverage, familiarization visits). Normally the website with product detail and online booking functions is developed by the business cluster themselves to their own requirements.

The marketing effort needs to utilize support from regional and national tourism marketing boards, other donor projects working in tourism as well as any trade and press contacts which the cluster members already have or can obtain.

KEY MARKETS AND CUSTOMERS

The identification of key source markets and customer profiling is determined during the market research phase and confirmed during the competitive analysis of the final offer. For the promotion and sale of the new offer a decision needs to be made with the cluster partner’s about whether to sell directly to the consumer or to look for an international inbound tour operator as a sales partner.

Working with inbound trade partners brings many advantages for both developing and launching the new offers.

In the development of new offers, inbound trade partners can assist with the product design and detailing stages. Trade partners have developed operating procedures and standards based on long experiences and understanding of their customers. An international operator can enhance the offer by providing additional logistical support such as customer and sales management systems, more sophisticated payment solutions, insurance cover and quality assurance labels (such as IATA, ATOL). Many specialist tour operators send their own experts to work alongside local guides, (which would be invaluable for the development of local guiding skills).

For the marketing of the new offers, international specialist tour operator partnerships bring many advantages. Most already have large customer databases, all understand their own markets and have established promotional/marketing presence in many source countries. Trade clients will be able to support the development of professional marketing materials and may even fund familiarization tours. The new products will be promoted through the partner’s advertising campaigns and online properties, social media and email messaging. International tour operator clients also have established press and media connections. Well known and trusted tour operator ‘brands’ also add credibility and assurance to the new offer, an important consideration for less visited destinations and more innovative visitor experiences!

Ultimately an established international trade partner can remove some of the uncertainty which comes from direct selling to consumers, and helps to answer many of the key questions for the tourism provider: How many tours can we run? How many guests can we achieve for each tour? At what level should tours be run below the break-even/ profit number? (cancelling published tour dates is never a satisfactory option).

The disadvantages of selling the new offers to trade partners include: loss of income, established tour operators often look to take 30% commission; loss of control over the messaging to and management of customer expectations; contractual obligations such as exclusivity and ‘white labelling ‘of the new offer can be overly restrictive; trade partners are frequently late payers and can insert many service standard clauses which could penalize the tourism provider for problems which may be outside of their control.

19

It is recommended that in the first instance the new products should be developed for and sold to international trade partners. The cluster partners will need specific advice and support, to approach these potential clients, to negotiate mutually beneficial trading agreements and to build long term relationships. Exclusivity arrangement with trade partners should be avoided, once the new offer has become established over at least one successful season, cluster partners can use the experience to grow and evolve their customer base and also consider selling direct to consumers.

ACKNOWLEDGEMENTS:

REG is grateful for the support received from the following organizations in the design of the project and in the development and marketing of the new products developed in the Western Balkans:

20

ANNEX 1: EXAMPLE TRAINING FACTSHEET FOR THEMATIC PRODUCT DEVELOPMENT The factsheet material provided below comes from a series of thematic factsheets that includes information on rural, wine, culinary, active gastronomy, and sustainable tourism; voluntourism, service standards, cycling, hiking, craft and music themes.

WILDLIFE TOURISM

Definition

Travel to observe wildlife in natural environments/native habitat. Wildlife tourism involves non domesticated animals and plants and can include a range of product specific tourism types: bird watching, fishing, hunting, conservation and botanical tourism.

As bird watching has grown to be a significant niche market in its own right, the definition of wildlife tourism has been restricted to trips to destinations with the main purpose of visit being to observe local fauna, excluding birdlife.

Designing Wildlife Tourism Experiences.

Wildlife Tourists can be separated into 2 distinct groups, specialists/enthusiasts whose primary motivation is to observe wildlife and more general tourists who have an interest to see wildlife and habitats which they cannot find at home.

Some research has explored the motivation/attraction for the more general tourist: opportunities to see rare and unique wildlife 33% (rate as highly important); being able to get close to wildlife 29%; being in an untouched natural environment 26%; a large variety of wildlife to see 25%; a knowledgeable guide is available 19%; interesting information available about the wildlife 18%.

Obviously general tourists have their preferences for animal types. Larger animals are preferred over smaller ones. Animals perceived as intelligent are preferred. Colorful, graceful and soft/fluffy animals are attractive to humans. Animals which are considered to be dangerous to humans are generally disliked, but some predators are popular particularly big cats (Lynx). In addition, some animals appear to attract human attention because of their cultural associations or iconic status, notable among these and present in the Balkans are bears, eagles, wolves.

Specialists/Enthusiasts are motivated by being able to observe the activities specific wild species in their natural habitats. As with other forms of tourism, guests are also looking for a more active experience and in the case of wildlife are often motivated by a desire to help conservation. Many government and scientific institutions are now offering access to protected sites for groups led and guided by scientific experts, as well as providing a revenue for scientific research, many guests are also willing to work- repairing habitats, erecting signs, surveying species etc.

Some European Product Examples: http://www.theguardian.com/travel/europe+wildlifeholidays?page=2

Accommodation

Package tourists vary from budget travelers because they normally desire a higher standard of accommodation, which is part of the attraction. Staying in small exclusive lodges or tented camps is popular, many of the eco- camps in our region are suitable, clean sheets and a hot shower, with good local food constitute minimum requirements. (To claim to be an Ecological Camp – the accommodation providers must adopt sustainable tourism policies – see factsheet SERVICE STANDARDS 1. Sustainable tourism). Specialists tend to be

21

independent travelers, who are likely to stay in basic accommodation, and are generally very flexible with their travel arrangements, as long as the wildlife viewing experience is good.

Estimate of Global Market Size

The global market size of wildlife tourism is estimated as being 12 million trips each year. Africa accounts for around one half of all these trips.

But ... between 20 – 40% of all international travelers have an interest in Wildlife. UK – 90% of holidaymakers said enjoyment of wildlife was a priority.

Direct expenditure of US residents on wildlife watching is worth 23 billion EUR per year.

Potential for Growth

Interest in wildlife is growing considerably, in particular as its exposure in the international media increases.

There is still considerable potential for growth within this market, and it is expected to expand by between 8% and 10% per annum over the next decade. The age group that will most influence this growth will be the increasingly wealthy, healthy, and active 55+ age group.

Brief Profile of Consumers

Wildlife tourists range from experienced specialists who like to seek “virgin” places that remain relatively undiscovered, to the inexperienced tourist travelling on a package holiday. Across this spectrum, consumers vary considerably in age, gender, and socioeconomic grouping. Package tourists vary from budget travelers through to those staying in small exclusive lodges or tented camps. However, specialists tend to be independent travelers, who are likely to stay in basic accommodation, and are generally very flexible with their travel arrangements.

Whilst the luxury-end of the package market tends to be the most demanding in terms of infrastructure and services, they also generate the greatest income. These consumers tend to be in the third-age group (50-65 years), often including the early retired.

Main Source Markets

1. Europe (UK, Germany and Netherlands being the top 3 markets) 2. North America

Main Competing Destinations

Africa is the market leader and accounts for around one half of all wildlife tourism trips worldwide. There are a number of emerging wildlife destinations which demonstrate the desire of consumers to seek out new destinations, in Europe this includes:

• Finland (particularly Hiidenportti National Park for bears, wolves and lynx) • Romania (the Carpathian Garden and pristine forests) • Poland (for large mammals)

Important Tour Operators

Sita World Tours http://www.sitatours.com Email: sitatours@sitatours.com

Abercrombie & Kent http://www.abercrombiekent.com

22

Travel with Jules http://www.travelwithjules.co.uk/holiday-types/natural-history-holidays/ Wexas Travel http://www.wexas.com/holiday-types/natural-world/

Wildland Adventures http://www.wildland.com

Wildlife Worldwide http://www.wildlifeworldwide.com Tel: (+44) 845 130 6982

Naturetrek http://www.naturetrek.co.uk Tel: (+44) 1962 733051

Marco Polo http://www.marco-polo-reisen.com

Tucan Travel http://www.tucantravel.com/holiday-types/wildlife-holidays

Scott Dunn https://www.scottdunn.com/luxury-holiday/specialist-holidays/wildlife-safari

Travel with Jules http://www.travelwithjules.co.uk/holiday-types/natural-history-holidays/

Travel4Wildlife – Online reseller http://travel4wildlife.com/

Key Points for Marketing and Distribution

The Internet has become a significant channel for marketing and distribution. However, due to a close match with the readership of broadsheet newspapers and travel supplements, these are widely used for marketing wildlife trips. The Internet has obviously accelerated the growth of location-based operators. However, as the mainstream visitor represents the majority and highest spending of wildlife tourists the Sunday supplements are likely to be the most effective way of attracting them.

United States:

• USA Today – Travel Section http://www.usatoday.com • New York Times – Travel Section http://travel.nytimes.com

UK:

• The Times Travel Section http://travel.timesonline.co.uk/tol/life_and_style/travel • BBC Wildlife Magazine: World’s bestselling natural history/environmental magazine

http://www.bbcwildlifemagazine.com

Germany:

• Faz Frankfurter Allgemeine Zeitung http://www.faz.net

Social Media

• https://www.facebook.com/naturetravelnet • LinkedIn – Ecotourism Group. • LinkedIn – Responsible Travel & Tourism • http://www.pinterest.com/verdantwildlife/ • http://www.pinterest.com/gawds/wildlife-tourism-business/

Additional Information

• Earthwatch Institute http://www.earthwatch.org • World Wildlife Fund – tourism section http://www.wwf.org.uk/researcher/issues/Tourism/index.asp Why

we need to rethink wildlife tourism http://www.theguardian.com/travel/2014/may/16/why-weneed-to-rethink-wildlife-tourism

23

24

ANNEX 2: GEOTOURISM PRINCIPLES FOR CLUSTER PARTNERS (The new products follow the principles outlined below, developed by the Western Balkans Geotourism Network, which supports the marketing of the new offers)

The Geotourism Charter

WHEREAS the geotourism approach is all-inclusive, focusing not only on the environment, but also on the diversity of the cultural, historic, and scenic assets of the Western Balkans,

WHEREAS the geotourism approach encourages citizens and visitors to get involved rather than remain tourism spectators, and

WHEREAS the geotourism approach helps build a sense of regional identity and pride, stressing what is authentic and unique to the Western Balkans,

THE UNDERSIGNED parties to this Agreement of Intent commit to support these geotourism principles, to sustain and enhance the geographical character of the Western Balkans — its environment, culture, aesthetics, heritage, and the wellbeing of its residents:

Integrity of place: Enhance geographical character by developing and improving it in ways distinctive to the locale, reflective of its natural and cultural heritage, so as to encourage market differentiation and cultural pride.

International codes: Adhere to the principles embodied in the World Tourism Organization’s Global Code of Ethics for Tourism and the Principles of the Cultural Tourism Charter established by the International Council on Monuments and Sites (ICOMOS).

Market selectivity: Encourage growth in tourism market segments most likely to appreciate, respect, and disseminate information about the distinctive assets of the locale.

Market diversity: Encourage a full range of appropriate food and lodging facilities, so as to appeal to the entire demographic spectrum of the geotourism market and so maximize economic resiliency over both the short and long term.

Tourist satisfaction: Ensure that satisfied, excited geotourists bring new vacation stories home and send friends off to experience the same thing, thus providing continuing demand for the destination.

Community involvement: Base tourism on community resources to the extent possible, encouraging local small businesses and civic groups to build partnerships to promote and provide a distinctive, honest visitor experience and market their locales effectively. Help businesses develop approaches to tourism that build on the area’s nature, history and culture, including food and drink, artisanry, performance arts, etc.

Community benefit: Encourage micro - to medium-size enterprises and tourism business strategies that emphasize economic and social benefits to involved communities, especially poverty alleviation, with clear communication of the destination stewardship policies required to maintain those benefits.

Protection and enhancement of destination appeal: Encourage business partners to sustain natural habitats, heritage sites, aesthetic appeal, and local culture. Prevent degradation by keeping volumes of tourists within maximum acceptable limits. Seek business models that can operate profitably within those limits. Use persuasion, incentives, and legal enforcement as needed.

Conservation of resources: Encourage businesses to minimize water pollution, solid waste, energy consumption, water usage, landscaping chemicals, and overly bright nighttime lighting. Advertise these measures in a way that attracts the large, environmentally sympathetic tourist market.

25

Interactive interpretation: Engage both visitors and hosts in learning about the place. Encourage residents to show off the natural and cultural heritage of their communities, so that tourists gain a richer experience and residents develop pride in their locales.

Evaluation: Establish an evaluation of your business to be conducted on a regular basis.

Additional to the Geotourism Charter, a series of documents have been developed through the program as operational tools. They include guest medical questionnaire, feedback forms, contract templates, risk assessment templates, guide incident report template, and, in case of wildlife viewing and conservatory activities the waiver for all claims, release from liability and assumption of risk form. All such developed templates and documents can be made available upon request wither via USAID REG Project or by contacting directly the learning by Doing pilot hosts.

26

ANNEX 3: GUIDE TRAINING AND OPERATING MATERIALS PREPARED FOR THE PROJECT

Figure 1 - Guide Basic Skills - Aide Memoire

Figure 2 – Example of Guiding Materials

27

ANNEX 4 – LEARNING BY DOING BUDGET PLANNING Below we will provide a framework for budgetary planning rather than the exact budgets. Two are main reasons for this. Firstly, the guidelines provided here are intended to be used in different countries of the region. Costs vary between different locations in one country, and then again between countries – thus one budget cannot be applied to all. Secondly, some of the expenses cannot be foreseen, nor are all the costs identical – they are influenced by the product theme, current infrastructure and similar. Thus we will provide main cost categories with some practical notes that should help with budgeting development of new innovative products through Learning by Doing approach.

For clarity it is best to develop the budget according to the stages of development as described in this document. The budget will then have the structure that will be easy to follow and manage. The table below seeks to provide the framework budgeting structure.

# Implementation stage Cost type Note

1 Identify Opportunity

Market demand Research into market demand can to a large extent be done in house, as desk research.

A certain number of days needs to be allocated to the research.

Countries are often members of different international organizations that conduct market research – i.e. UNWTO. Often copies of their publications can be found at NTOs ort responsible Ministries, or they would have online access to those documents.

2 Audit of available attractions/assets As this is local knowledge much of it is often already contained within the home team. Local or regional tourism organization will also have good insight into the current base of assets and/or attractions.

Again – certain number of days should be allocated to consolidating the known data.

3 Identification of supporting tourism attractions and infrastructure

In both cases the cost is measured by days allocated to the task.

Supporting tourism attractions are, similarly to the above, usually known locally.

28

# Implementation stage Cost type Note

Determining infrastructure needs can be done through two channels: researching competitive products at other locations or providers to assess the infrastructure they use. It is possible to also conduct a limited research by reaching out to a small group of international operators for their input on the infrastructure they expect and demand.

4 Creating Partnerships

Town Hall Meeting Costs related to this stage could be divided into two groups:

Costs related to holding individual meetings – reaching out to possible partners for whom we know that they might be interested in the project – this part is again measured in allocated time/days.

Costs related to holding the Town Hall Meeting – the first mobilization meeting and the official launch of the Learning by Doing process. These costs would include: rent for the meeting venue; refreshments before and during the meeting production of any materials – i.e. market research summary.

5 Product Design This is the stage that is most vague when it comes to budgeting, as the exact actions and interventions needed are defined based on the outcome of the s previous two stages.

In the note we provide foreseeable groups of costs.

Individual or small group meetings – costs are expressed in allocated time and possibly refreshments.

Site visits – costs would include local transport, allocated time, possibly meals and/or refreshments.

Work to repair or upgrade specific service – this can range from building materials, certain transport costs, specialized workman hours, bed linen, specific equipment to be used by guests, and a whole range of others, depending on what

29

# Implementation stage Cost type Note

interventions are identified as needed

Training – depending on the topic of the product, training might be needed. Core groups of costs are: trainer/lecturer fees; venue; meals, refreshments, accommodation (if needed); presentation equipment, materials.

6 Product Marketing Retreat Retreat is executed like a mini tour. Thus budget for it needs to include all the costs that are included for any other tour: transport, accommodation, food, guide, back office time.

7 PR and Marketing Budget for PR and marketing actions should extend to at least one year – ideally up to three (with regular revisions). Again, it depends on the selected target market and the type of product but should include actions like: targeting trade fairs/events, trade visits to target markets, familiarization visits for operators and media, social media actions, promotional materials and similar.

We recommend that the budget is made in full – incorporating all the related costs, including resources of own team. Only such prepared budget will allow to grasp the full extent of the interaction, and will also make it easier to identify and pursue different ways of funding for different sections or tasks in the budget.

Cost can also be reduced if the operation is managed as co-funding among the cluster members, and wherever possible, an outside donor. Further, costs for the retreat and any familiarization trips for operators or media are often kept under control by participating service providers providing their own services for now fee, or at most on at cost basis.

Finally, for training needs it is advisable to first look if there are trainers that can provide such training locally, at national level, or within the region. Besides the obvious lower costs of such arrangement, this supports development of a network of tourism professionals which is beneficial to building a model of sustainable tourism in the region.

30

Action Name Leraning by Doing - Training SAMPLE Action Date

Budget

USD ($)

Costing

USD ($)

HOME COMPANY

Co-funding

Participants

Partner 1 - hotel

Partner 2 -

National Park

Partner 3

Partner 4

Note Travel and Accommodation # Unit @Cost

Air ticket 2 persons 750 1,500 1,500 0 2 international trainers

Hotel 16 room-nights 80 1,280 896 384 384

2 international trainers and 2 local trainers for 4 nights; hotel rate discounted by 30%

Vehicle 2 vehcle days 500 1,000 1,000 0 2 4WD vehicles for 2 days

Local travel 2 travel 50 100 100 0 airport transfers

Hotel - participants 36 person days 80 2,880 2,016 864 864

12 participants, 3 nights, hotel rate discounted by 30%

Per diem 48 person days 50 2,400 0 2,400 2,400

12 participants, 4 days (3 days training + total of 1 day for travel)

Other 2 0 0 0

Total travel and accommodation EUR 9,160 5,510 3,650 2,400 1,250 0 0 0

Premises and Equipment # Unit @Cost

Space rental 1 room 200 200 200 0 one day classroom workshop Fees pieces 0 -240 240 240

Audio Equipment 0 0 0

Stand decoration 0 0 0

Security, cleaning 0 0 0

Googles 12 20 240 0 240 240 goggles for observing at distance to be used by

participants Other 1 0 0 0

Total Premises and Equipment EUR 440 -40 480 0 0 480 0 0

Promotion # Unit @Cost Promotion and

marketing 0 0 0

31

Action Name Leraning by Doing - Training SAMPLE Action Date

Budget

USD ($)

Costing

USD ($)

HOME COMPANY

Co-funding

Participants

Partner 1 - hotel

Partner 2 -

National Park

Partner 3

Partner 4

Note Promotional

materials - design material

set 0 0 0 Promotional

materials - printing materials

set 0 0 0 Web page - design

and maintenance 0 0 0

Press Conference 0 0 0 Media promotion -

TV/video 0 0 0 Meida promotion -

radion 0 0 0 Media promotion -

print 0 0 0 Media promotion -

billboards 0 0 0

Photography 0 0 0

Other 1 0 0 0

Otehr 2 0 0 0

Total Promotion EUR 0 0 0 0 0 0 0 0

Program # Unit @Cost Program preparation

and translation 1 lump sum 300 300 300 0 translation of training material

Materials prinitng/copying 20 sets 25 500 500 0

Other materials and services 0 0 0

Lunch - meals 90 meals 20 1,800 1,800 0 15 persons, lunch+dinner for the 3 days of

training,

Refreshments 90 breaks 7 630 630 0 15 persons, 2 refreshments a day for 3 days of

training Translation 0 0 0

Awards 0 0 0

Participation Fee 0 0 0

Delivery 0 0 0

32

Action Name Leraning by Doing - Training SAMPLE Action Date

Budget

USD ($)

Costing

USD ($)

HOME COMPANY

Co-funding

Participants

Partner 1 - hotel

Partner 2 -

National Park

Partner 3

Partner 4

Note Other 1 0 0 0

Otehr 2 0 0 0

Total Program EUR 3,230 3,230 0 0 0 0 0 0

Other # Unit @Cost

Inernational trainers 18 days 400 7,200 7,200 0 2 international trainers, 9 days (3 preparation, 3

delivery, 2 travel, 1 report)

Local assistant trainers 18 days 100 1,800 1,800 0

2 assistant trainers, 9 days (3 preparation, 3 delivery, 1 translation reviews, 2 available for follow up)

Administrative support 7 days 75 525 525 0

Office staff support for organizational task, logistics

Office expenses 1 lump sum 250 250 250 0

printing paper, telephone, fixed expense allocation

Other 5 0 0 0

Other 6 0 0 0

Total Staff EUR 9,780 9,780 0 0 0 0 0 0

TOTAL OPERATIONAL COSTS

USD ($)

$ 22,610 $ 18,480

$ 4,130 $ 2,400 $ 1,250 $ 480 $ - $ -

EURO EUR/$ = 1.18 € 19,160 € 15,660

€ 3,500 € 2,030 € 1,060 € 410 € - € -

Cost Share 100.0% 81.73%= 18.27% 10.6% 5.5% 2.1% 0.0% 0.0%

33

ANNEX 5: ENVIRONMENTAL REVIEW CHECKLIST

Annex5offersasampleEnvironmentalReviewChecklist–tobeusedasaguidelineandrecognizedasanimportantandnecessarystepintheproductdevelopmentprocess.NotallquestionsintheChecklistarerelevantforallactionsand/orprograms,butthey,tothebestoftheirability,trytoprovideaplanningframeworkthroughwhichtotaketheproductinitsdevelopmentstage.

ENVIRONMENTALREVIEWCHECKLIST

for[Action/ProgramName]

Preparedby:[Implementer]

34

ENVIRONMENTALREVIEWCHECKLIST

TheEnvironmentalReviewChecklist(ERC)isintendedforusemainlytoassessaction/programspecificbaselineconditions,includingapplicableenvironmentalrequirements;identifypotentialadverseenvironmentaleffectsassociatedwithplannedactions/programs;anddevelopenvironmentalmitigationandmonitoringplansthatcaneffectivelyavoidoradequatelyminimizetheidentifiedeffects.

A. Action/programOverview1. Locationofaction/program2. Detaileddescriptionofaction/programandsite3. Photosofsite(whenavailable)

B. Action/ProgramSpecificBaselineEnvironmentalConditions1. Populationcharacteristics2. Geography3. Naturalresources,e.g.,nearbyforest/protectedareas,groundandsurfacewater

resources4. Currentlanduse5. Otherrelevantdescriptionofcurrentenvironmentalconditionsinproximitytothe

action/program

C. Legal,Regulatory,andPermittingRequirements1. Nationalenvironmentalimpactassessmentrequirementsforthisaction/program2. ApplicableNationalorlocalpermitsforthisaction/program,responsibleparty,and

scheduleforobtainingthem:

PermitType Responsibleparty ScheduleBuilding/Construction WasteDisposal Wastewater StormWaterManagement AirQuality WaterUse HistoricalorCulturalPreservation WetlandsorWaterbodies ThreatenedorEndangeredSpecies Other

E. EngineeringSafetyandIntegrity(forSectionsE.andF.,provideadiscussionforanyofthelistedissuesthatarelikelytohavebearingonthisaction/program)1. Willtheaction/programberequiredtoadheretoformalengineering

designs/plans?Havethesebeenorwilltheybedevelopedbyaqualifiedengineer?

35

2. Dodesigns/planseffectivelyandcomprehensivelyaddress:a. Managementofstormwaterrunoffanditseffects?b. Reuse,recycling,anddisposalofconstructiondebrisandby-products?c. Energyefficiencyand/orpreferenceforrenewableenergysources?d. Pollutionpreventionandcleanerproductionmeasures?e. Maximumrelianceongreenbuildingorgreenland-useapproaches?f. Emergencyresponseplanning?g. Mitigationoravoidanceofoccupationalsafetyandhealthhazards?h. Environmentalmanagementofmobilizationandde-mobilization?i. Capacityoftheorganizationtosustaintheenvironmentalmanagement

aspectsoftheaction/programafterclosure?3. Arethereknowngeologicalhazards,e.g.,faults,landslides,orunstablesoil

structure,whichcouldaffecttheaction/program?Ifso,howwilltheaction/programensurestructuralintegrity?

4. Willthesiterequiregrading,trenching,orexcavation?Willtheaction/programgenerateborrowpits?Ifso,howwillthesebemanagedduringimplementationandclosure?

5. Willtheaction/programcauseinterferencewiththecurrentdrainagesystemsorconditions?Willitincreasetheriskofflooding?

6. Willtheaction/programinterferewithabove-orbelow-groundutilitytransmissionlines,e.g.,communications,water,sewer,ornaturalgas?

7. Willtheaction/programpotentiallyinterferewithvehicleorpedestriantraffic?8. Doestheaction/programincreasetheriskoffire,explosion,orhazardous

chemicalreleases?9. Doestheaction/programrequiredisposalorretrofittingofpolychlorinated

biphenyl-containingequipment,e.g.,transformersorflorescentlightballasts?

F. Environment,Health,andSafetyConsequences1. Potentialimpactstopublichealthandwell-being

a. Willtheaction/programrequiretemporaryorpermanentpropertylandtaking?

b. Willactivitiesrequiretemporaryorpermanenthumanresettlement?c. Willarearesidentsand/orworkersbeexposedtopesticides,fertilizer,or

othertoxicsubstances,e.g.,asaresultoffarmingormanufacturing?Ifso,howwilltheproject:i. Ensurethatthesechemicalsdonotcontaminategroundorsurface

water?ii. Ensurethatworkersuseprotectiveclothingandequipmenttoprevent

exposure?iii. Controlreleasesofthesesubstancestoair,water,andland?iv. Restrictaccesstothesitetoreducethepotentialforhumanexposure?

36

d. Willtheaction/programgeneratepesticide,chemical,orindustrialwastes?Couldthesewastespotentiallycontaminatesoil,groundwaterorsurfacewater?

e. Willchemicalcontainersbestoredatthesite?f. Doestheaction/programremoveasbestos-containingmaterialsoruseof

buildingmaterialsthatmaycontainasbestos,formaldehyde,orothertoxicmaterials?Cantheprojectcertifythatbuildingmaterialsarenon-toxic?Ifso,howwillthesewastesbedisposedof?

g. Willtheaction/programgenerateothersolidorhazardouswastessuchasconstructiondebris,dryorwetcellbatteries,florescenttubes,aerosolcans,paint,solvents,etc.?Ifso,howwillthiswastebedisposedof?

h. Willtheaction/programgeneratenontoxic,nonhazardoussolidwastes(subsequentlyrequiringlandresourcesfordisposal)?

i. Willtheaction/programposetheneedtohandleanddisposeofmedicalwastes?Ifso,describemeasuresofensuringoccupationalandpublichealthandsafety,bothonsiteandoffsite.

j. Doestheaction/programprovideanewsourceofdrinkingwaterforacommunity?Ifso,howwilltheprojectmonitorwaterqualityinaccordancewithhealthstandards?

k. Willtheaction/programpotentiallydisturbsoilcontaminatedwithtoxicorhazardousmaterials?

l. Willactivities,e.g.,construction,refurbishment,demolition,orblasting,resultinincreasednoiseorlightpollution,whichcouldadverselyaffectthenaturalorhumanenvironment?

2. Atmosphericandairqualityimpactsa. Willtheaction/programresultinincreasedemissionofairpollutantsfroma

ventorasfugitivereleases,e.g.,soot,sulfurdioxide,oxidesofnitrogen,volatileorganiccompounds,methane.

b. Willtheaction/programinvolveburningofwoodorbiomass?c. Willtheaction/programinstall,operate,maintain,ordecommission

systemscontainingozonedepletingsubstances,e.g.,freonorotherrefrigerants?

d. Willtheaction/programgenerateanincreaseincarbonemissions?e. Willtheaction/programincreaseodorand/ornoise?

3. Waterqualitychangesandimpactsa. Howfaristhesitelocatedfromthenearestriver,stream,orlake?b. Willtheaction/programdisturbwetland,lacustrine,orriparianareas?c. Whatisthedepthtogroundwateratthesite?d. Willtheaction/programresultinincreasedgroundorsurfacewater

extraction?Ifso,whatarethevolumes?Permitrequirements?e. Willtheaction/programdischargedomesticorindustrialsewagetosurface,

groundwater,orpublicly-ownedtreatmentfacility?

37

f. Doestheaction/programresultinincreasedvolumesofstormwaterrun-offand/oristherepotentialfordischargesofpotentiallycontaminated(includingsuspendedsolids)stormwater?

g. Willtheaction/programresultintherunoffofpesticides,fertilizers,ortoxicchemicalsintosurfacewaterorgroundwater?

h. Willtheaction/programresultindischargeoflivestockwastessuchasmanureorbloodintosurfacewater?

i. Doesthesiterequireexcavation,placingoffill,orsubstrateremoval(e.g.,gravel)fromariver,streamorlake?

4. Landusechangesandimpactsa. Willtheaction/programconvertfallowlandtoagriculturalland?b. Willtheaction/programconvertforestlandtoagriculturalland?c. Willtheaction/programconvertagriculturallandtocommercial,industrial,

orresidentialuses?d. Willtheaction/programrequireonsitestorageofliquidfuelsorhazardous

materialsinbulkquantities?e. Willtheaction/programresultinnaturalresourceextraction,e.g.,granite,

limestone,coal,lignite,oil,orgas?f. Willtheaction/programaltertheviewshedofarearesidentsorothers?

5. Impactstoforestry,biodiversity,protectedareasandendangeredspecies

a. Isthesitelocatedadjacenttoaprotectedarea,nationalpark,naturepreserve,orwildliferefuge?

b. Isthesitelocatedinornearthreatenedorendangered(T&E)specieshabitat?IsthereaplanforidentifyingT&Especiesduringaction/programimplementation?IfT&Especiesareidentifiedduringimplementation,isthereaformalprocessforhaltingwork,avoidingimpacts,andnotifyingauthorities?

c. Isthesitelocatedinamigratorybirdflightorotheranimalmigratorypathway?d. Willtheaction/programinvolveharvestingofnon-timberforestproducts,e.g.,

mushrooms,medicinalandaromaticplants(MAPs),herbs,orwoodydebris?e. Willtheaction/programinvolvetreeremovalorlogging?Ifso,pleasedescribe.

6. Historicorculturalresourcesa. Arethereculturalorhistoricsiteslocatedatornearthesite?Ifso,whatisthe

distancefromthese?Whatistheplanforavoidingdisturbanceornotifyingauthorities?

b. Arethereuniqueethnicortraditionalculturesorvaluespresentinthesite?Ifso,whatistheapplicablepreservationplan?