Tourism-led Poverty Reduction Programme - … TRADE CENTRE Tourism-led Poverty Reduction Programme i...

Tourism-led Poverty Reduction Programme

Programme Proposal

Submitted by:

International Trade Centre (ITC), Geneva

19 November 2009

INTERNATIONAL TRADE CENTRE

Tourism-led Poverty Reduction Programme i

Table of Contents

Executive Summary .............................................................................................................. iii 1. Development Context and Intervention‟s Rationale ....................................................... 2

1.1. Rationale for creating Tourism-led Poverty Reduction Interventions .................... 2 1.2 Rationale for SECO contribution ............................................................................ 3

2. Programme Strategy & Management.............................................................................. 4 2.1. Programme description ........................................................................................... 4 2.2. Beneficiaries ........................................................................................................... 5

2.3. Implementation strategy.......................................................................................... 5

2.4. Cross-cutting issues ................................................................................................ 5 2.5 Programme management arrangements and coordination ...................................... 6

2.6 Networking with other donors and partners............................................................ 6 2.7 Monitoring and evaluation framework ................................................................... 6 2.8 Anticipated risks and risk management .................................................................. 7

3. Project: Mozambique ...................................................................................................... 8 3.1 Tourism Industry Overview .................................................................................... 8

3.2 Justification ............................................................................................................. 8

3.3 Project‟s Objective .................................................................................................. 9 3.4 Main Counterparts .................................................................................................. 9

3.5 Partnering with Existing Projects.......................................................................... 10

3.6 Logical Framework ............................................................................................... 12

3.7 Budget ................................................................................................................... 17 4. Project: Senegal ............................................................................................................ 21

4.1 Tourism Industry Overview .................................................................................. 21 4.2 Justification ........................................................................................................... 21 4.3 Project‟s Objective ................................................................................................ 22

4.4 Main Counterparts ................................................................................................ 23 4.5 Logical Framework ............................................................................................... 25

4.6 Budget ................................................................................................................... 30 5. Project: Colombia ......................................................................................................... 34

5.1 Tourism Industry Overview .................................................................................. 34

5.2 Justification ........................................................................................................... 34 5.3 Project‟s Objective ................................................................................................ 35 5.4 Main Counterparts ................................................................................................ 35

5.5 Logical Framework ............................................................................................... 38 5.6 Budget ................................................................................................................... 44

6. Total Programme Budget .............................................................................................. 49 Annexes................................................................................................................................. 50

Annex I Development Context and Intervention Rationale ........................................ 51

Annex II Programme Strategy...................................................................................... 59 Annex III Management Arrangements .......................................................................... 63 Annex IV Logical Framework ....................................................................................... 68 Annex V Information on complementing programmes................................................ 79

Annex VI Value Chains Benefiting from Tourism ........................................................ 81 Annex VII Tourism Industry in Selected Countries ................................................... 82


Tourism-led Poverty Reduction Programme ii

Acronyms

CBI Confederation of British Industry

CSR Corporate Social Responsibility

DTIS Diagnostic Trade Integration Study (WTO)

EPRP Export-led Poverty Reduction Programme

FDI Foreign Direct Investment

GDP Gross Domestic Product

GTZ Deutsche Gesellschaft für Technische

Zusammenarbeit GmbH (German society for

technical cooperation)

IFC International Finance Corporation

IGO Inter-Governmental Organization

IMT Impact Measurement Tool

ITB International Travel Borse

ITC International Trade Centre

LDC Least Developed Countries

MDGs Millennium Development Goals

NGO Non-Governmental Organization

NIT National Implementation Teams

ODI Overseas Development Institute

PCU Programme Coordination Unit

PRSP Poverty Reduction Strategy Paper

PSC Programme Steering Committee

QMS Quality Management System (ANSI term)

RBM Results Based Management

SECO State Secretariat for Economic Affairs

(Switzerland)

SNV Stichting Nederlandse Vrijwilligers

(Netherlands Development Organization)

TA Technical Assistance

TPO Trade Promotion Organization

TPRP Tourism-led Poverty Reduction Programme

TSI Trade/Tourism Support Institutions

UN United Nations

UNESCO United Nations Educational, Scientific and

Cultural Organization

UNWTO United Nations World Tourism Organization

WTM World Travel Market

WTO World Trade Organization

WTTC World Travel and Tourism Council

http://encyclopedia.thefreedictionary.com/Deutsche+Gesellschaft+f%c3%bcr+Technische+Zusammenarbeit



http://www.thefreedictionary.com/International+Finance+Corporation

http://encyclopedia2.thefreedictionary.com/Inter-Governmental+Organization

http://encyclopedia2.thefreedictionary.com/Non-Governmental+Organization

http://encyclopedia.thefreedictionary.com/Poverty+Reduction+Strategy+Paper

http://encyclopedia.thefreedictionary.com/Quality+Management+System

http://www.thefreedictionary.com/United+Nations+Educational%2c+Scientific+and+Cultural+Organization

http://www.thefreedictionary.com/United+Nations+Educational%2c+Scientific+and+Cultural+Organization

http://encyclopedia.thefreedictionary.com/World+Travel+and+Tourism+Council


Tourism-led Poverty Reduction Programme iii

Executive Summary

This report is a programme document for the forthcoming International Trade Centre‟s

(ITC) Tourism-led Poverty Reduction Programme (TPRP). The main purpose of this

programme proposal is to explain the rationale for TPRP and outline an implementation

strategy for three projects, with SECO funding, to be launched in Colombia and expanded

in the case of Mozambique and Senegal.

TPRP will work to reduce poverty by turning leakages into linkages and integrating the

poor local communities, particularly women, located close to tourist destinations to existing

international tourism value chains. This will be achieved notably by collaborating with

international and local partner institutions and enterprises to ensure the programme‟s long

term sustainability. The programme will reinforce the capacity of selected TSIs to improve

their ability for advocacy, the creation of better policies and foster project replication. Still,

despite being a key sector in most developing countries, tourism does not automatically

benefit local communities as many international tourism operators still tend to work in

isolation from the local economic environment.

The tourism industry in Mozambique has been growing considerably, contributing 1.5% to

its GDP. Still, 90% of all food products purchased by international hotels and large

restaurants are imported. The main challenges, according to the existing opportunity study

and project document, faced by small farmers in the Maputo area are: low productivity,

inconsistent quality and poor product presentation. The TPRP project will thus aim to

address these issues, by developing the agricultural sector with the help of agronomists and

partner NGOs through improvements in infrastructure, training, strengthening producer

associations and by creating linkages with the tourism industry. TPRP has already had for a

long period of time, dedicated and local project partners, namely, INATUR, the Uniao

Geral das Cooperativas and CEPAGRI who will join forces to achieve the project‟s

objectives. Based on the activities required for the successful implementation of this three

year project, the budget is estimated to be at $1.12 million.

Senegal‟s tourism industry is a priority sector for the government, given its growth over the

past two decades. Research based on the opportunity study and project document, however,

points to a number of constraints hindering the development of the industry, namely, the

lack of local sourcing, poor hotel service quality and the insufficient promotion of Senegal

as a tourism destination. TPRP will thus collaborate with selected hotels in Saint Louis to

increase local sourcing, to facilitate the access of poor producers and artisans to the tourism

value-chain, to develop the capacities of local producers, and to train members of local

communities in tourism-related activities. The project will also work with the Ministry of

the Exterior and Tourism to help better promote Senegal as a tourism hotspot. To achieve

these objectives, the projects activities will last three years and require approximately $1.14

million.

Currently, the third most important industry in Colombia, is the tourism sector and the

nation‟s government wants to further develop it in order to make Colombia a destination of

choice, and has thus requested the ITC‟s assistance in order to do this. According to the

opportunity study undertaken, the majority of tourism-related revenues are made by large

organizations, and do not benefit poor local communities in the surrounding areas. TPRP

will collaborate with PRO-EXPORT as well as dedicated hotels like the Sofitel, hotel

associations and local NGOs, to increase poor producers‟ market access, to strengthen


Tourism-led Poverty Reduction Programme iv

producer associations, and to train members of poor local communities in key areas of the

tourism sector. Achieving these objectives are both SECO‟s and the ITC‟s priorities. The

project‟s beneficiaries will also include agricultural producer associations and women‟s

groups of seamstresses and artisans. So as to sustainably reduce poverty and increase the

revenues and the employment levels of poor local communities in the area, the project will

require a three year investment of $1.11 million.


Tourism-led Poverty Reduction Programme 2

‘Let us work in partnerships between rich and poor to improve the opportunities of all

human beings to build better lives.’

Kofi Annan1

1. Development Context and Intervention’s Rationale2

Tourism is, nowadays, one of the worlds largest and fastest growing export sectors,

contributing nearly US $5,890 billion, or 9.9%, to global GDP in 2008. In terms of

employment, the World Travel and Tourism Council (WTTC) estimated that tourism

generated 238 million jobs in 2008, amounting to 8.4% of total worldwide employment. In

effect, tourism is the primary export for a third of developing nations.

Tourism affects the livelihoods of many of the world‟s poor. Indeed for most countries with

high levels of poverty, tourism is significant (making up over 2% of the GDP) (with over

2% of GDP) as part of the growing economy. Tourism is an industry that generates

significant economic value-addition through linkages including pro-poor activities. As a

result, many developing countries consider tourism to be a vital component of their overall

development strategies and policies.

However, local communities do not automatically benefit from tourism. Many international

tourism operators still fail to include local economic development in their business model.

High „economic leakage‟ rates are due to the purchasing decisions of the key industry

players governing the tourism value chain who, rather than buying locally, choose to import

supplies and services according to the market demand of the industry and visitors alike.

Statistics indicate that 60% to 75% of revenues related to tourism leak away from

developing nations, even reaching a 90% loss of revenue in least developed countries.

Thus, it is essential to assist poor communities in penetrating the tourism supply chains.

To turn leakages into linkages, it is essential to consider the different levels of intervention,

namely producers and key buyers, support institutions, and national policymakers. One of

the key concepts of the TPRP is to address individual, institutional and political constraints

in a holistic manner.

1.1. Rationale for creating Tourism-led Poverty Reduction Interventions

Over a period of more than five years, the ITC has developed and/or implemented inclusive

tourism projects in Benin, Bolivia, Brazil, El Salvador, Lao PDR (as an expansion of

EPRP‟s silk project), Mozambique, Senegal, the Philippines and Vietnam. To sharpen the

operational focus of its projects, the ITC has initiated a strategic review of its EPRP

tourism activities conducted by the Overseas Development Institute (ODI). The strategic

review concluded that the ITC‟s approach to tourism has the potential to substantially

change the pro-poor impact of tourism. However, it should certainly be scaled-up so as to

increase its impact.

1 VIENNA 17 October 2005, International Day for the Eradication of Poverty

2 For further information See Annex I

http://www.betterworldheroes.com/annan.htm



From the pilot projects and the strategic review, a number of important lessons learnt have

emerged, as summarized in the table below:

Work with successful tourism locations and in existing value chains.

Include responsible actors in the tourism industry to increase outreach and

sustainability through a market-led approach.

Network with diverse local and international partners to create synergies and tap

into complementary pools of know-how.

Respect local legislations and instil some useful risk management measures.

Assess strictly the feasibility of new projects and have an M&E framework in place.

The first three countries which the ITC‟s intervention will focus on within this TPRP

programme document are: Colombia, Mozambique and Senegal (Annex I & V).

Within the Tourism-led Poverty Reduction Programme (TPRP), “Inclusive Tourism” is

understood as a sustainable approach to tourism development that creates and strengthens

linkages by integrating local producers into existing tourism value chains and by

reconfiguring these value chains. It will focus on poverty impacts, complementing the

more environmental focus of much Corporate Social Responsibility and Sustainable

Tourism work (CSR/ST), and on market-oriented business issues.

TPRP‟s intervention will be facilitated by the pre-existing tourism fluxes and tourism

infrastructure as the ITC‟s interventions cannot be, except in rare occasions, such as

tourism development or promotion. It will also be rendered more effective by the

collaboration with selected international and local institutions and enterprises.

The TPRP approach has the capacity, not only to advise companies on how to source local

products and services, but also to implement field projects that will complement and

spearhead the development of inclusive business strategies for hotels, tour operators and

other channels in the market. Inclusive Tourism will, among others things, combine the

ITC‟s knowledge in dealing with poor communities, with sector knowledge of tourism

value chains, most of which is gathered within the ITC‟s Sector Competitiveness section.

Moreover, TPRP will collaborate with a number of other sections. These are, Business and

Environment, with whom TPRP will work to facilitate beneficiaries‟ access to

microfinance; Enterprise Competitiveness (EC) to collaborate on packaging and mobile

solutions; and Trade Support Institution Strengthening (TS) to build the capacity of support

partners notably to foster expansion and replication.

1.2 Rationale for SECO contribution

The promotion of pro-poor inclusive tourism is in line with SECO‟s main goal of

promoting sustainable growth and poverty reduction in developing countries through

further integration in international markets and private sector initiatives. By helping the

poor to benefit from tourism value chains, they are exposed to the standards and norms of

international markets, in promoting their integration into the world economy. Furthermore,

SECO is supporting several projects on tourism around the world, for which they have

expressed keen interest for the ITC to be involved in at various degrees.



2. Programme Strategy & Management

2.1. Programme description

The Tourism-led Poverty Reduction Programme (TPRP) is an innovative trade promotion

initiative that aims to link the local communities to promising tourism value chains,

harnessing their entrepreneurial capacities and generating income and employment for the

poor. TPRP interventions will concentrate on mainstream tourism value chains rather than

creating stand-alone products run by communities.

The Tourism-led Poverty Reduction Programme‟s activities will include studies of

promising supply chains, market development interventions for specific products and

sectors, capacity building for public and private counterpart institutions in inclusive tourism

methodologies. Also technical assistance has been given to build the supply capacity of

poor communities meeting international standards and market requirements. Specific tools

and training modules on the main tourism value chains have been designed to support

project implementation and will be used both in workshops and online.

In order to ensure the programme‟s long term sustainability, the abovementioned technical

assistance will be delivered in collaboration with selected local and international

institutions (government ministries, international and local NGOs), tourism businesses

(hotels and tour operators), associations for the promotion of agriculture, crafts and

tourism, as well as enterprises who will continue to work towards the development goals

set out, once the programme has been completed.

Graphic Approach to Implementation

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IMPLEMENTATION Building supply capacity Poverty

of poor communities

Strengthening of enterprises

and institutions involved

Linking local communities Gender

to TSIs

Creating effective demand

for local environmentally

friendly-produced goods

Developing institutional Environ.

capacity

MONITORING

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2.2. Beneficiaries

The principle beneficiaries of the programme will be local communities located close to

tourism destinations. Based on previous project experience, it is realistic to estimate that

between 1,500 and 2,500 poor women and men per destination will be able to directly

improve their livelihoods as a result of the TPRPs interventions. Detailed estimations of

programme beneficiaries per country can be found in project specific sections (3, 4 and 5).

The Programme will also directly benefit the tourism industry in the selected value chains.

They will profit from reduced transaction costs and an improved quality and reliability of

supplied products and services. Trade and Tourism Support Institutions (TSI) will also

gain from the programme, as they will learn a methodology that can be easily replicated to

integrate the poor into a productive sector. Working with TSIs and other enterprises will

generate sizeable spill-over effects that could multiply the number of poor people

benefiting from the projects by five or more.

Indirectly, other micro and small enterprises related to the tourism value chain as well as a

country‟s overall economy will also benefit from inclusive tourism.

2.3. Implementation strategy

The implementation of projects is based on good practices in project management

obtained during the past six years as a part of the implementation of EPRP‟s projects. The

methodology follows distinctive steps in project management around the project cycle,

namely the selection of the destination, a value chain analysis and opportunity study, an

analysis of demand from tourism operators and an existing offer from small producers,

the implementation/monitoring of the project, the expansion and replication of the venture

and policy mainstreaming. Details about each of abovementioned steps can be found in

Annex II.

2.4. Cross-cutting issues

Poverty reduction through the inclusion of the poor into tourism-related entrepreneurial

activities is obviously the raison d’être of the TPRP. The Programme also addresses other

cross-cutting areas of concern, in line with the Millennium Development Goals, to ensure

long-term sustainability of its interventions, in particular gender equality and

environmental issues (see box).

TPRP and the Millennium Development Goals

Eradicate extreme poverty and hunger (MDG 1): by contributing to substantial

employment and income generation linked to tourism;

Promote gender equality and empower women (MDG 3): by supporting sectors

disproportionately benefiting women;

Ensure environmental sustainability (MDG 7): by promoting higher value,

quality tourism respecting social and environmental standards;



Build a global partnership for development (MDG 8): by developing public-

private partnerships with key players in the tourism industry, local government,

NGOs and other partners.

Further information regarding the link between the projects and the MDGs can be found

in Annex II as well as the country-specific sections.

2.5 Programme management arrangements and coordination

The coordination and institutional arrangements should enable stakeholder inputs and

management efficiency and effectiveness, while avoiding complex and overlapping

administrative and reporting procedures. The presented management structure proposes

three management levels with clearly defined roles and responsibilities: A Programme

Steering Committee, the ITC Programme Coordination Unit in Geneva and the National

Implementation Teams. Further information on each of these management levels can be

found in Annex III.

2.6 Networking with other donors and partners

In order to ensure the programme‟s long term sustainability, ITC will collaborate with

international and national partners (i.e. Inter-Governmental Organisations (IGOs),

development agencies, governmental bodies, NGOs, private sector) to create synergies and

harmonise the programmes. Potential partners with complementary initiatives include the

UN World Tourism Organization (UNWTO), the International Financial Corporation

(IFC), the German Agency for Technical Cooperation (GTZ) and the Netherlands

Development Organization (SNV) (see Annex V). For further details on country-specific

programme partners see sections 3.4, 4.4 and 5.4.

Ideally, joint projects will be designed with most parties bringing funds and/or expertise in

order to increase the size of the project and, hopefully, its impact. TPRP can use the

convening power of ITC to support whenever possible components of other organisations‟

projects in preference to running stand-alone TPRP projects. TPRP will add value to the

implementation of in-country projects by providing methods, tools and „good practices‟ as

well as disseminate inclusive tourism know-how to agencies, NGOs, local governments

and tourism-related organizations.

Naturally, the programme will also partner with major players in the tourism sector,

including tour operators and hotel chains in the respective countries so as to increase their

sourcing of local products and services. Meetings with renowned consultants, experts and

practitioners at tourism fairs such as the World Travel Market (WTM) and the

International Travel Borse (ITB) will be instrumental in constantly reinforcing the

Programme‟s knowledge and pool of expertise.

2.7 Monitoring and evaluation framework

Encompassing a range of interlinked outcomes with underlying outputs and activities, the

programme design follows the logical framework principles. As indicated by the

programme strategy, systematic performance measurement will be based on a set of

specified and measurable indicators. Continuous tracking of the results, outcome and



impact of the activities undertaken within the programme as well as the management of

risks within the programme will be undertaken by the Programme Coordination Unit in

collaboration with the National Implementation Teams using Results-based Management

(RBM) principles, details of which can be found in Annex III.

The impact of the Programme in the three selected countries will be measured through

ITC‟s Impact Measurement Tool (IMT). The IMT is undertaken at three stages of any

given project (at a project‟s launch, half way through implementation, and upon

completion of the same project), and is tailored to tourism, textiles and agricultural

sectors.

2.8 Anticipated risks and risk management

There are always risks attached to the implementation of a project in a developing

country. Still it is essential to be able to map and thus anticipate these risks, as well as to

manage them at best.

On the whole it appears that there are two types of risks that a TPRP project will face.

Indeed, risks are differentiated by their nature: macro risks represent global factors that

cannot be influenced by the project but one can mitigate their impact; while micro risks

are project related and can be managed. Both macro and micro risks include economic,

environmental, social, institutional and political concerns. A detailed list of risk factors by

origin as well as their likelihood can be found in Annex III.

After identifying and assessing possible risks, it is necessary to rank them according to

their impact on the project. Only risk factors that are likely to happen and are having a

severe effect on the implementation will need to be addressed through a risk management

strategy (See Risk Map in Annex III).

Risk management strategies

The assessment and mitigation of risk factors is a constant management concern

throughout the project cycle. TPRP applies different strategies to manage factors that

delay or endanger success:

- Assessing opportunities and challenges through a thorough feasibility study

- Linking the poor with existing tourism hotspots and strong partners

- Working with responsible businesses and committed partners

- Relying on a network of partners

- Keeping it flexible, but results oriented

- Building institutional capacities

Details on each of the risk management strategies mentioned above can be found in

Annex III.



3. Project: Mozambique

3.1 Tourism Industry Overview3

While Southern Africans have been travelling to Mozambique for decades, its tourism

industry has only recently become known as an exotic destination for European and North

American travellers. National figures suggest that tourism in Mozambique has been

growing, with an estimated 1.3 million tourists entering the country in 2007, of which

71% are South Africans, representing an increase of 21% since 2006. Still, on average

foreign tourists stay in Mozambique 3 days and spend on average around US$ 60 per day,

excluding accommodation; which is the lowest average spending in Sub-Saharan Africa

(Africa News, 2008; World Economic Forum, 2007).

The key message is that tourism can be seen as a sector with considerable growth

potential. Tourism contributes 1.5% to its GDP and as a result of the expansion of the

industry, 37,000 jobs in 2008 were created, half of which went to women. According to

official statistics, revenues from international visitors reached US$ 163 million in 2008,

and a US$ 19 million increase from 2007 (Macauhub, 2009).

The national strategy is to promote high value and low volume tourism. However this

does not imply that business can continue as usual. Owing to a number of weaknesses,

such as low average spending per tourist, it is necessary to reconsider the entire tourism

value chain, taking into consideration tourism sub-sectors such as tours and direct

purchases in the local economy. Indeed, according to the World Economic Forum,

Mozambique is ranked 119th

out of 124 in terms of tourism competiveness, lagging

behind countries such as Tanzania (80th

) and Zambia (94th

).

3.2 Justification

Problems to be addressed

Statistics reveal that 90% of all food products consumed by international hotels and large

restaurants in the Maputo province are imported from South Africa and Dubai, for the

most part. According to the opportunity study undertaken by ITC two years ago, the three

most important challenges faced by small farmers in the Maputo region are low

productivity, inconsistent quality and poor product presentation. Among the reasons

offered by the major hotels for not purchasing fruits, vegetables, and other products

locally are: inconsistent quality and financial reasons, and the inability of local

distributors to supply products all year round. Local producers in turn face difficulties

such as poor transportation and storage infrastructure, the lack of food cleaning and

conditioning facilities, and inadequate access to credit and inputs such as fertilizers and

seeds.

In Mozambique, the majority of the population depends on subsistence farming, leading

to extremely low levels of productivity and yield. Still the country‟s agricultural growth

potential is impressive with 36 million ha of arable land, of which 5 million ha are

cultivated. Since 1992, there has been a rapid development in smallholder households.

3 For further information on the Mozambican tourism industry see Annex VII



3.3 Project’s Objective

The Inclusive Tourism project will focus on the region of Maputo, building on activities

initiated under the EPRP Mozambique project during the past two years and expanding

initiatives into a strategic rural tourism anchor investment area surrounding Maputo City.

The selection of the Maputo province was based on the following criteria: (1) Maputo

welcomes 60% of the 1.3 million tourists that visit Mozambique each year; (2) it is the

home to numerous producer associations and training institutes, and (3) the strong

involvement of the people that will benefit from the project; in fact, the choice of the

activities is a consequence of several meetings and contacts that took place with farmers

and community leaders.

The goal of the Maputo Inclusive Tourism Project is to assist the Province of Maputo in

retaining a greater share of the income generated by tourism, with its most important

hotels, supermarkets and restaurants purchasing goods from local producers and to create

capacity at a national level to foster and promote Community Inclusive Tourism (CIT)

throughout the country. In addition to benefiting local communities the project will

strengthen and build the capacity of TSIs and enterprises involved in tourism-related

businesses through its activities. The project ultimately aims at country-wide replication

by integrating local communities into the value chain of the already existing tourism

industry in Mozambique, thereby creating employment, generating income, and

strengthening the sustainability of tourism development.

The project‟s immediate objectives are the following: (1) strengthen the capacity of

communities to engage in the tourism value chain through training (hotel, restaurants and

guiding) and improve the productivity of rural producers, (2) Create linkages between

potential community-based suppliers and tourism demand and improve access of

participants to small scale finance, (3) Enable communities to identify and engage with

SME business opportunities created by tourism country-wide, (4) Create national capacity

to foster and promote CIT through framework policy development and strategic

marketing campaigns with INATUR.

Under the proposed logframe for the TPRP SECO funded Programme, an estimated 3,100

individuals will directly benefit from planned activities. Additionally, the programme will

significantly increase the capacity of the Ministry of Tourism and INATUR, both at

provincial and national level, and will have an impact on hotel operators through

multilateral agreements and sensitization programmes.

3.4 Main Counterparts

The Instituto Nacional de Turismo (INATUR), the tourism promotion and development

agency of Mozambique‟s Ministry of Tourism, has as its mission, the fostering of

investment in the tourism sector in a way that benefits local communities and protects the

country‟s natural heritage. INATUR‟s mandate and crucial participation thus far, first led

to the drafting of the initial project document, and now to the project‟s successful

implementation.

Uniao Geral das Cooperativas (UGC), was formed by agricultural cooperatives in the

early 1980s as a central service provider and support structure. It has 175 associated

agricultural cooperatives, involving about 6,000 people, 90% of them being women

and70% being farmers. UGC has health centres (4), schools (2), community broadcast



radio station (1), training centre (1) and a “savings and loans” cooperative. UGC was the

main partner in the horticultural training component of the EPRP Project and will remain

active in the training of selected farmers in the Mahotas area.

SNV (Dutch Development Organization), aims to be the bridge between the private

sector and local communities. As such it provides business development services to

companies keen to develop inclusive agro businesses in Mozambique and capacitates the

local communities to be able to engage with the private sector. SNV helps tourism actors

to maximise the contribution of sustainable tourism towards local economic development,

poverty alleviation, social development, cultural survival and bio-diversity conservation.

CEPAGRI (Centre Promotion Agriculture), is a state-owned entity under the Ministry

of Agriculture, with the legislative mandate of developing strategies and formulating

policies for the development of the commercial agricultural sector and agro-industry;

providing linkages between financial institutions and farmers; promoting agribusiness

opportunities; monitoring and advising the stakeholders on matters relating to the

marketing of agricultural products.

3.5 Partnering with Existing Projects

The result of assessments to date, have identified the following existing project as the

most viable opportunity with which to partner under the TPRP Maputo (expansion) phase.

Background:

The Boane, Namaacha and Moamba districts are located in the South West of the

Province of Maputo. The three districts cover approximately 200,000 people, of which

10% are active in the growing of small-scale fruits, vegetables and corn along of the

Umbeluzi and Incomati rivers and reservoir of the Pequenos Libombos.

Current Support Institution- ADIPSA:

This DANIDA funded programme provides support to private agricultural sector

development. It is coordinated by a Central Management Unit (CMU) in Maputo as well

as the Regional ADIPSA offices in Manica, Nampula and Maputo. ADIPSA (Apoio ao

Desenvolvimento de Iniciativas Privadas no Sector Agrário), is formally under the

auspices of Ministry of Agriculture (MINAG) with its private sector promotion unit,

CEPAGRI, being chairman of the steering committee.

The main objective of ADIPSA is to enable smallholder‟s products‟ to have improved

access to the market through better access to financial services and input supply. The

project provides technical advice through local service, enabling farmers, groups, and

organisations to set up out-grower schemes to increase productivity. Furthermore,

ADISPA provides support in the development of business plans, credit schemes, agro-

processing and marketing initiatives, and micro-projects of various kinds.

Participating Stakeholders:

A project which supports small scale farmers in Mafuiane, Massaca and „25 de Setembro‟

is currently being funded by ADIPSA, aiming to assist them to increase their production

levels, productivity, quality and also crop diversification. Simultaneously the market

linkage to a private sector agro-processing company will be made. This private company



plans to start procuring, processing and packaging fruits and vegetables in Mafuiane –

Namaacha, using the existing facilities of a small Packing house.

Initially this project will cater for 434 producers, organized through 3 associations. In the

second phase, an additional 350 producers could be included, from other associations in

Moamba, Boane and Namaacha. .

A local NGO has been approached to undertake capacity building and increase the

average productivity, currently producing 10 tons per hectare, of cabbage, tomato, beans

and maize. Other actors will be involved, namely ITC and SNV, to ensure the proper

training (capacity building), the creation of proper market linkages, the expansion to other

districts and the introduction of new technologies (greenhouses) and the respective

training.



3.6 Logical Framework

IMMEDIATE OBJECTIVES

ACTIVITIES YEAR OUTPUTS IMPACTS IMPORTANT ASSUMPTIONS

OUTCOME: Increase Capacity and Extend Impacts of Maputo City Pilot Project Participants and Institutions Strengthened

Existing Project in Maputo City is amplified

1.1.1 Provide 2nd round of training of trainers (bar, restaurant and kitchen) for 50 individuals

1

50 additional trainers in the field to carry out Private Institutional, government / donor funded training initiatives TSIs involved in training (INATUR) strengthened

Increased standards of training capacity in all areas including government, private and educational institutions and job creation for participants

Selection of dynamic participants from a representative cross section of institutions

1.1.2 Provide 2nd round of training of tourist guides from national and provincial areas for 25 individuals

1 25 additional guides accredited and market ready in advance of 2010

Together with the 1st pilot group of trainees (25) a total of 50 accredited guides will create critical mass to service the market demand (2010 based employment and beyond) Establish a previously informal industry as a formal sector held to international standards

Market demand for tourist guides will spike in 2010 due to World Cup requirements for Portuguese speaking guides and national market will support ongoing employment of guides

1.1.3

Expand no of greenhouses to be installed in the Maputo area by an additional 20 and provide production training

1

Producers association in Boane area are engaged and trained to produce regular supply of produce to Shoprite Supermarkets & Hotel Buyers Linkages strengthened with buyers through ITC/SNV support

100 farmers engaged, trained and capacitated as first phase of engagement within an association of 500 farmers Revenue to farmers increased by 400% based on volumes and values of potential sales

Proactive and willing participation of selected farmers Purchase agreements reached with high end market

1.1.4 Undertake a study tour 1

Links are created between producer associations and hotels/TSIs to ensure supply meets international demand requirements

Improved links between governmental bodies, TSIs, enterprises and local producer associations leading to increased viability of project roll out based on dynamic partnerships

Proactiveness and eagerness of participants of study tour



OUTCOME: Maputo City Pilot Project Replicated in Strategic Provincial Tourism Area

Strategic Locations with Planned Tourism Developments in which to improve the skills of the Communities are selected

2.1.1 Selection of communities for interventions; to be identified in consultation with INATUR and other actors in anchor tourism development

1

Shortlist of community / communities in an area of planned high density tourism development with whom to work through a feasibility study

Increased project viability based on critical capacity / opportunity assessments in the context of national planning

Prioritized zones for tourism anchor developments are supported by GoM

2.1.2 Site visits to assess potential scope and community capacity

1 Selection of community partners

Increased viability of project roll out based on dynamic partnerships

2.1.3

Multilateral agreements developed and put in place with tourism operators, Communities and INATUR for project implementation to commence in Y2

1

Secured commitments to collaboration in advance of interventions with all parties in the form of signed MoU's

Increased sustainability of project based on buy-in / formalized commitment from all parties

2.1.4 Undertake socio-economic household survey for target beneficiaries using TPRP's IMT

1, 2 & 3 Assessment of impact of project on project beneficiaries’ living conditions

Increase project recognition and awareness of successes and failures to improve project design

Interviewees are willing to share openly requested information

Project in Identified Area is replicated to Strengthen Community Capacity to Supply Anticipated Tourism Sector

2.2.1 Horticultural demand assessment and training of producers (100)

2

Training of 100 farmers in improved farming techniques and identification of high value / yield products to increase income

Community capacitated to engage effectively and benefit from tourism related opportunities

Willing participation of communities

2.2.2 Installation of greenhouses (20) 2

Required infrastructure in place to enable increased consistency of yield / production

2.2.3

Installation of a small scale packing facility for farmers

2

Enable producers to collectively package and process products for distribution and increase hygiene standards

2.2.4 Hospitality training (40) 2 Creation of a skilled HR base to service incoming tourism operators

2.2.5

Guide Training (20) 2 Creation of a skilled HR base to service anticipated market demand

2.2.6 Community sensitization training 2 Prepare communities for



tourism readiness

Community Projects in Identified Area are expanded


3

Increased supply capacity of selected communities in parallel to anticipated increase in demand

Increased percentage of community benefitting from tourism-related income streams and increased local capacity to support tourism growth

No climatic or political crisis

2.3.2 Installation of greenhouses (10) 3 Expanded infrastructural base to increase supply capacity

2.3.3 Hospitality training (20) 3 Expanded skills base to service anticipated HR needs tourism entities

2.3.4 Guide Training (10) 3 Expanded skills base to service anticipated growth of market demand

2.3.5 Community awareness of tourism training

3

OUTCOME: National Framework for Community Inclusive Tourism (CIT) Standards and Promotion thereof Developed

Recommended Framework for CIT Policy in the Tourism Sector is developed to strengthen TSIs

3.1.1

Provide technical support to the GoM in the development of a national framework for CIT based on regional norms and specific to national needs and Inclusive Business Principles

1

Creation of a national standard for CIT will enable equitable community development through services demand created by tourism and enable a positive environment for continued sector growth

By establishing national standards for CIT and required levels of support from the Tourism Sector far greater returns can be generated nationally, long term capacity for sector growth will be strengthened and local economic development can be stimulated Political will to develop

and adopt policy

3.1.2

Workshop held in 3 target areas (Maputo and 2 provincial tourism hubs) with Public / Private sectors and communities in designing structures

1

Collaborative inputs into the structures will ensure representative and viable recommendations

A collaboratively designed structure will stimulate buy-in and uptake once roll out commences

Sector, Communities and Provincial Directorates are prepared for the Implementation of CIT Policy

3.2.1

Series of workshops throughout country to communicate new regulations for CIT in tourism sector and sensitize Private Sector, District Tourism directorates and local communities as to rights and responsibilities under new framework (total 8 workshops)

2

Awareness and buying secured with all sectors to ensure effective uptake of policy in practice

Communities, Private Sector and local government awareness of rights and responsibilities will positively influence roll out

Effective Communication of policy and mobilization of Provincial Government in implementation



3.2.2

Technical support to Private sector operators and communities in roll-out of CIT and community inclusive projects as per framework

3

Ensure equitable and well structured projects receive technical inputs thereby increasing viability

Well structured projects benefiting from international experience will limit potential constraints to viability

3.2.3 Technical support to Provincial Directorates in appraising CIT projects

3 Ensure capacity to evaluate and monitor rollout for long term viability

Effective monitoring will enable continued assessment of success and constraints to allow for dynamic responses from government

Strategy for INATUR Promotion & Support of CIT Hubs is developed

3.3.1

Provide technical assistance to INATUR in defining their role and developing programme for Destination Marketing of CIT Hubs

1 A 3 yr promotional strategy

Create context and incentives from a promotional perspective for rapid uptake of CIT projects by operators and communities

Institutional capacity and willingness to engage with technical advisors

3.3.2

Continued technical support in role out of Destination Marketing campaign for community inclusive tourism hubs; production of material etc

2

Ensure effective usage of government and donor funds in marketing campaigns to support CIT areas and growth of CIT projects

3.3.3 Continued technical support in adapting Marketing Campaign to emerging CIT Hubs

3

Ensure effective usage of government and donor funds in marketing campaigns to support CIT areas and growth of CIT projects

OUTCOME: Capacity of Communities to Assess and Engage with Tourism Opportunities Strengthened

Capacity building of poor producers and TSIs is achieved through training and improved access to Finance

4.1.1 Improve access of small-scale producers to finance through linkages with local financial institutions

1 Micro finance providers identified and applicants educated in procedures

Producer awareness of and ability to access finance increased

Micro Financing Institutions are finance ready

4.1.2

Develop capacity of TSIs through workshops and facilitate access to finance by creating linkages with local financial institutions

1 TSIs trained and educated in procedures to access micro-finance

TSIs awareness of and ability to access finance increased

Micro Financing Institutions are finance ready



Communities are sensitized to Business Opportunities Created by Tourism Sector

4.2.1

Develop a training model for raising community awareness of entrepreneurial opportunities created by tourism and entrepreneurial skills / spirit

1 Training module and materials produced

Provide national tool for long term use in incorporating communities effectively into the tourism value chain and preempting potential negative impacts on communities through awareness raising

Policy support from GoM

4.2.2

Series of workshops throughout country (parallel to other workshops) to impart material designed in Y1 (total 10 workshops)

2 A minimum of 500 individuals trained

Communities in areas designated for tourism growth are prepared to identify and take advantage of opportunities of incoming tourism market



3.7 Budget

IMMEDIATE OBJECTIVES ACTIVITIES PARTICIPATING AGENCIES AND

PARTNERS RESOURCE ALLOCATIONS (2010

TO 2012) USD

OUTCOME: Capacity and Extend Impacts of Maputo City Pilot Project Participants and Institutions Strengthened YR1 YR 2 YR 3

Existing Project in Maputo city is amplified

1.1.1 Provide 2nd round of training of trainers (bar, restaurant and kitchen) for 50 individuals

ITC, INATUR, SNV

30,000.00

1.1.2 Provide 2nd round of training of tourist guides from national and provincial areas for 25 individuals

25,000.00

1.1.3 Expand no of greenhouses to be installed in Maputo area by an additional 20 and provide production training

ITC, MIN AGR, FDA, CEPAGRI

80,000.00

1.1.4 Undertake a study tour 1,000

SUB TOTAL 136,000.00 0.00 0.00

OUTCOME: Maputo City Pilot Project Replicated in Strategic Provincial Tourism Area


2.1.1

Selection of communities for interventions; to be identified in consultation with INATUR and other actors in anchor tourism development through a feasibility study

ITC, INATUR, MITUR SNV, IFC

2,000.00

2.1.2 Site visits to assess potential scope and community capacity

5,000.00

2.1.3 Multi lateral agreements developed and put in place with Tourism operators, communities and INATUR

3,000.00

2.1.4 Undertake socio-economic household survey for target beneficiaries using TPRP’s IMT

5,000.00 5,000.00 5,000.00

Project in Identified Area is replicated to Strengthen Community Capacity to Supply Anticipated Tourism Sector


ITC, MIN AGR, FDA, CEPAGRI

15,000.00

2.2.2 Installation of greenhouses (20) 90,000.00

2.2.3 Installation of a small scale packing facility for farmers 60,000.00



2.2.4 Hospitality training (40)

ITC,SNV, INATUR, MITUR

30,000.00

2.2.5 Guide Training (20) 20,000.00

2.2.6 Community sensitization training 10,000.00

Community Projects in Identified Area are expanded

2.3.1 Horticultural demand assessment and training of producers (20) ITC, MIN AGR, FDA,

CEPAGRI

15,000.00

2.3.2 Installation of greenhouses (10) 50,000.00

2.3.3 Hospitality training (30)

ITC,SNV, INATUR, MITUR

18,000.00

2.3.4 Guide Training (15) 15,000.00

2.3.5 Community awareness of tourism training 10,000.00

SUB TOTAL 240,000.00 113,000.00 5000.00

OUTCOME National Framework for Community Inclusive Tourism (CIT) Standards and Promotion thereof Developed

Recommended Framework for CIT Policy in the Tourism Sector is developed to strengthen TSIs

3.1.1

Provide technical support to the GoM in the development of a national framework for CIT based on regional norms and specific to national needs and Inclusive Business Principles

ITC, INATUR, MITUR, SNV

20,000.00

3.1.2 Workshop held in 3 target areas (Maputo and 2 provincial tourism hubs) with Public / Private sectors and communities in designing structures

25,000.00

Sector, Communities and Provincial Directorates are prepared for the Implementation of CIT Policy

3.2.1

Series of workshops throughout country to communicate new regulations for CIT in tourism sector and sensitize Private Sector, District Tourism directorates and local communities as to rights and responsibilities under new framework (total 8 workshops)

ITC, SNV, INATUR, MITUR

30,000.00

3.2.2 Technical support to Private sector operators and communities in roll out of CIT and community inclusive

12,500.00



projects as per framework

3.2.3 Technical support to Provincial Directorates in appraising CIT projects

12,500.00

Strategy for INATUR Promotion & Support of CIT Hubs is developed

3.3.1 Provide technical assistance to INATUR in defining their role and developing programme for Destination Marketing of CIT Hubs

ITC, SNV, INATUR, MITUR

15,000.00

3.3.2 Continued technical support in role out of Destination Marketing campaign for community inclusive tourism hubs; production of material etc

25,000.00

3.3.3 Continued technical support in adapting Marketing Campaign to emerging CIT Hubs

15,000.00

SUB TOTAL 60,000.00 55,000.00 40,000.00




ITC, SNV, CEPAGRI, GAPI, INATUR, MIC

25,000.00

4.1.2 Develop capacity of TSIs through workshops and facilitate access to finance by creating linkages with local financial institutions

20,000.00

Communities are sensitized to Business Opportunities Created by Tourism Sector

4.2.1 Develop a training model for raising community awareness of entrepreneurial opportunities created by tourism and entrepreneurial skills / spirit

15,000.00

4.2.2 Series of workshops throughout country (parallel to other workshops) to impart material designed in Y1 (total 10 workshops)

20,000.00

SUB TOTAL 65,000.00 20,000.00 0.00



PROJECT COORDINATION

4x4 Vehicle 20,000.00

Monthly Expenses (transport, admin, telecoms etc) x 12 24,000.00 24,000.00 24,000.00

National Assistant & Office Rentals 16,800.00 16,800.00 16,800.00

Consultant (six months) 12,000.00 16,000.00 16,000.00

Project Coordinator Salary 72,000.00 72,000.00 72,000.00

Participation in and travel to International Seminars with INATUR 7,000.00 7,000.00

SUB TOTAL 144,800.00 135,800.00 135,800.00

ANNUAL TOTALS (USD) 645,800.00 323,800.00 180,800.00

TOTAL BUDGET (USD) 1,150,400.00



4. Project: Senegal


Senegal‟s tourism industry is a priority sector and one of the nation‟s most dynamic

industries, coming in second place after the fishing industry. In effect, national figures

suggest that tourism has grown significantly between 1995 and 2005, with the increase of

280,000 to 387,000 international visitors entering the country. In addition, tourist arrivals,

with more than 85% being non-residents has doubled since 1994, due to the local

currency devaluation, which gave more competitiveness to Senegal as a tourist

destination. Still, on average foreign tourists stayed in Senegal for 3-4 days in 2006, a

figure which is relatively low. Statistics reveal that 50% of tourists in Senegal are French.

The growth in tourism in the past two decades, suggests that there is potential for further

development in Senegal. Tourism has lead to the creation of direct (40,000 in 2007) and

indirect (100,000 in 2007) employment and has developed a tourism related industry,

contributing 3.2% to the nation‟s GDP in 2008. The principal non-resident markets are

France (54%), Africa (20%), Spain, Italy, the Benelux countries, Germany (16%) and the

United States (2%). It is clear that Senegal is very much dependent on France as a source

market. However, statistics reveal that there is a low rates of repeat tourism (tentatively

estimated at 5%), seasonality constraints and low occupancy rates (on average 35%).

4.2 Justification


There are a number of constraints within the tourism sector which hinder the development

of the industry, including insufficient information on tourism in Senegal, the insufficient

promotion of the country as a destination, the lack of diversification of the product, the

absence of a framework encouraging the investment and the exploitation of the touristic

establishment, the insufficient knowledge and experience of TSIs and enterprises and the

poor hotel service quality compared to the Asian countries.

In Senegal, TPRP will collaborate with key hotels in Saint Louis, a major tourist

destination in the country renowned for its natural, cultural and touristic heritage.

Interviews with business and leisure tourist clients of the hotels indicate demand for more

excursion and shopping opportunities. Specifically, a survey of 80 tourists in selected

hotels identified the availability of fresh fruits and vegetables (57.5%) and restaurants

with local food (48.6%) as the two most important factors for an ideal trip to Senegal. In

effect, hotels in Saint Louis have to meet a variety of product and service requirements to

ensure the satisfaction of high end business travellers, such as the need for the quality of

fresh produce, namely, fruits, vegetables and fish.

There is great potential in creating a link between the tourism industry and the agricultural

sector. . Still, in rural areas, where 58% of the population live and 70% survive thanks to

agriculture, the local communities have only marginally benefitted from these

developments. There is nevertheless stagnation in terms of agricultural productivity, a

major constraint to agricultural growth, and one of the leading causes of the growing

4 For further information on the Senegalese tourism industry see Annex VII



pauperization of producers. Currently fruits and vegetables are seasonal, the quality is

variable, and producers are constrained in their access to credit, facilities and market

access. Producers rely on intermediaries with transportation and storage facilities to

supply hotels. During the rainy season which lasts from July to September, hotels are

forced to import fruit and vegetables as they cannot be sourced locally, which is more

expensive and derives no economic benefit to local producers.

The agricultural component of the project will be undertaken in the rural community of

Gandon which is part of the province of Saint Louis. This rural community is unique in

that it is the only one which surrounds the city of St. Louis, enabling Gandon to have

close commercial ties with the city. In Gandon, 65% of the population lives off

agriculture and 1 out of 4 people survives on livestock farming. Nevertheless, the rural

community is very poor and would benefit significantly from a poverty reduction project

through tourism.


The overall aim of the fruits and vegetable component of the project is to reduce poverty

and to improve the livelihoods of poor producers by bettering producers‟ market access,

and increasing their market share. The project will also work towards reducing poverty in

urban and rural areas of Saint Louis by promoting greater diversity of quality tourism

services, and by linking them to consumers in major hotels.

Specific project objectives for the fruits and vegetables component include: (1) altering

the value chain so that producer associations/producers have direct access to the market

(i.e. deal directly with partner hotels rather than use retailers and intermediaries); (2)

reducing seasonality of fruit and vegetable production through agricultural and

organizational techniques; (3) participatory design and construction of a greenhouse

incubator; (4) training in the use and modification of greenhouse design, appropriate

seeds, soil quality and other methods to extent the growing season and quality of

products. The project also has the objective to train producers in organic food production,

in the product value chain and in hotel product demand. Finally, it will aim to improve

communications between producers, associations and the market.

The excursion and shopping component of the intervention has the following immediate

objectives. Through the project, the hotels will easily provide accessible and clear

information regarding local activities and attractions (promoting inclusive tourism

activities and responsible tourism products, local restaurants, bars and markets). The

hotels will also form partnerships/linkages with responsible tourism operators and

associations for groups and individual tours and request information on local purchasing

and procurement from operators/agents that are used. Finally, the hotels will collaborate

with local travel agents and producer associations (ex: fishing associations) to develop

additional local tourism products and alternative livelihood options (ex: pirogue trips in

Dakar) and enhance local destinations (Lac Rose).

In addition to improving the livelihoods of members of poor local communities, the

project also has the objective of reinforcing the capacity of partner enterprises and

institutions involved in the project. In effect, the project will aim to promote the

relationships between hotel owners and local producers on a win-win basis, build the

capacity of hotel staff as a means of improving hotel service quality and competitiveness,

build the capacity of local guides, strengthen microfinance institutions and contract



service providers such as consulting firms and training institutions. In addition, by

partnering with TPRP, the Saint-Louis Chamber of Commerce and the Syndicat

d‟Initiative will benefit from ITC‟s experience in international trade and inclusive

tourism.

Finally, note that under the proposed logframe for the TPRP SECO funded Programme,

an estimated 1,575 individuals will directly benefit from planned activities.


Ministère des Sénégalais de l’Extérieur et du Tourisme (Ministry of Exterior and

Tourism): The tourism ministry will be a key partner in the intervention. It is responsible

for policy direction and planning frameworks, and share ITC‟s belief that tourism

development should be private sector led.

Ministry of Agriculture: The central government ministry is responsible for agriculture

in Senegal, and the food security division will play a key role in the project

implementation. For instance, they will assist ITC in identifying producer associations

and other stakeholders, as well as by providing technical assistance and training.

Centre National d’Aviculture, Department of Agriculture: Specialises in poultry. The

Centre will provide technical assistance and training courses to producers, as well as

disseminate information.

Agence d’Encadrement et de Développement des PME (ADPME): This government

department assists SMMEs in their development and enterprises in distress. It also assists

enterprises in meeting international standards and provides training in agriculture,

craftsmanship, construction, and information and communication technology.

National agency supporting local producers (ANCAR): This agency has 100 members

nationwide. It helps local producers to become organized; provides agricultural training;

facilitates linkages with finance institutions; helps with land tenure; undertakes research

on food products; and assists producers to diversify their activities.

Chambre de commerce (Chamber of Commerce), d’Industrie et d’Agriculture de

Saint Louis: The chamber is a membership organization (4900 members) linked to

government. It works in three main industries: agriculture, industry and services. It has

classroom facilities available for training.

Syndicat national des agences de voyages (National Syndicate of Travel Agencies):

This private member organization consists of 60 travel agents. It represents its members,

provides support with marketing and creates linkages between hotels and airlines.

Collaborating with this syndicate would enable TPRP to integrate new tourism products

into the formal sector.

Syndicat patronal de l’industrie hôtelière et touristique du Sénégal (Business hotel

and tourism of Senegal industry Union): Another private member organisation with

340 hotels, bars and casinos in the association.



Coopération italienne (Italian Cooperation): This development agency has worked to

finance sustainable tourism work through Italian NGOs (CISV)

CISV: An Italian NGO which has technicians in the field, and strong ties to responsible

tourism organizations in Senegal. It provides microfinance to pastoralists; and works on

responsible tourism and human rights. It collaborates with 2nd

and 3rd

level organizations

to increase their capacity and build skills to improve interests of members.

Institut Supérieur de Développement Local (ISDL) (Higher Institute of local

development): A training institution which has undertaken the initial baseline poverty

study. It provides a variety of training courses in development and environment, project

management, organizational management, social development and microfinance. It also

provides technical assistance at the community-level.

Institut de Technologie Alimentaire (ITA) (Food Technology Institute): This

parasitical institute undertakes research on the quality of food products, and helps to

develop protocols for hygiene. It undertakes diagnosis on what is needed to „fix‟ a

particular product. ITA also helps to build SMME capacity via training and technical

assistance.

DAK’COR: A private advertising and branding company that is experienced in the

launch and promotion of responsible products.

Crédit Mutuel du Sénégal: A private bank with 324,500 members. This bank will

provide microfinance and loans, to individuals and producer associations involved in the

project.

Crédit Agricole: A private bank that offers preferential interest rates to farmers (7.5%

instead of the normal 13%). It also provides small loans between CFA 1-25 million to

individuals and associations. Either land title or a contract with a buyer (e.g. a renowned

hotel) is required for security, in addition to a business plan.

MEC Diomniadio: A micro-finance institution that provides finance from 10,000frs to

5,000,000frs to its 5,000 members. None of its poultry producers have defaulted on their

loans.

Senegal Ecovillage Microfinance Fund: A not-for-profit organisation which facilitates

access to microfinance for community-based tourism initiatives, including arts and crafts.

The Fund assists with financial management, marketing, organisational management and

production techniques.

CADEL Collectif d’Appui au Developpement Local: This agricultural NGO was

developed to assist rural producers in the area of Diomniadio to better access markets. It

provides assistance such as improved access to finance, financial and managerial training

as well as health services and female empowerment.

ONITS (Organisation Nationale pour l'Intégration du Tourisme Sénégalais): ONITS

is a membership association of SMME accommodation enterprises in Senegal.




ACTIVITIES YEAR OUTPUTS IMPACTS IMPORTANT

ASSUMPTIONS

OUTCOME: Capacity of Agricultural Producers to take part of Tourism value chain in Saint Louis is strengthened


1.1.1

Determine which farmers will be part of the pilot project to ensure a good percentage of women are involved, and assess what technical assistance is required

1

Shortlist of community / communities in an area of planned high density tourism development with whom to work

Increased project viability based on critical capacity / opportunity assessments in context of national planning

Prioritized zones for tourism anchor developments are supported by the Government of Senegal

1.1.2

Sign Memorandums of Understanding with three or more larger hotel and tour operators and/or a higher number of smaller tourism companies. Also, focal persons are selected in each hotel/tour operator

1 Committed hotel and tour operators are selected

1.1.3

Local sourcing strategy developed with partners, and monitoring of the implementation of the local sourcing strategies

1 Local sourcing strategy defined and procurement patterns identified


1, 2 & 3 Assessment of impact of project on project beneficiaries’ living conditions

Increase project recognition and awareness of successes and failures to improve project design

Interviewees are willing to share openly requested information

Improvements in logistics, quantity and packaging of local vegetables achieved

1.2.1

Provide technical assistance to farmers and distributors in the form of training via workshops and on-the-job sessions

1

Training of farmers in improved farming techniques and

identification of high value / yield products to increase

income


Willing participation of communities 1.2.2

Provide training in management, marketing and financial skills, and packaging

1

1.2.3 Train staff from producer associations in new production techniques

1


1.2.4 Identify sources of production inputs: seeds, tools, fertilizer, etc. and installation of greenhouses

1


1.2.5 Installation of a small scale trading and packing facility for farmers

1


1.2.6

Create local trademarks for Inclusive Tourism products which indicate improved quality which matches international standards

2 Trademarks recognized by hotels and international buyers

Increased sourcing from small farmers by hotels during every year of the project

OUTCOME: The income of local communities in Saint Louis is increased (by 80% in average) through local hiring by hotels and local sourcing of agricultural products by hotels

Links between producers and hotels are created to increase local sourcing

2.1.1 Identification and involvement of producer associations, marketing intermediaries and wholesalers to act as market links

2 Key actors identified and agreed to act as market link

Improved on time services to hotels and better communication in terms of supply meeting demand


2.1.2 Organize meetings between producer associations and potential buyers (hotels)

2 Business partnerships established with hotels


2.1.3

Provide producer associations with ITC etrade facilities where farmers can receive up-to-date information on market and demand for their produce via sms on mobile phones

2

Required infrastructure in place and producer association members trained to use ITC etrade facilities

Improved on time services to hotels

The amount of personnel hired locally is increased by including and training disadvantaged people

2.2.1

Hospitality training, more specifically: identify and contract training staff, draft working position profiles for the staff, draft the training programmes for the trainers

2 Creation of a skilled HR base to service incoming tourism operators

Community capacitated to engage effectively and benefit from tourism related

opportunities

No climatic or political crisis

2.2.2 Establish agreements with the hotel associations, unions, hotels and other interested in training their personnel

2 Tourism associations involved in training programme


2.2.3 Guide Training 2 Creation of a skilled HR base to service anticipated market demand

2.2.4 Community sensitization and training in tourism related behaviors

2 Prepare communities for tourism readiness


OUTCOME: National Framework for Community Inclusive Tourism Standards and Promotion thereof is developed

TSIs are strengthened by developing Recommended Framework for CIT Policy in the Tourism Sector

3.1.1

Provide technical support to the Government of Senegal in the development of a national framework for CIT based on regional norms and specific to national needs and Inclusive Business Principles

3


By establishing national standards for CIT and required levels of support from the Tourism Sector far greater returns can be generated nationally, long term capacity for sector growth will be strengthened and local economic development can be stimulated

Political will to develop and adopt policy

3.1.2 Workshop held with Public / Private sectors and communities in designing structures

3



OUTCOME: Capacity of Communities to Assess and Engage with Tourism Opportunities is strengthened



1 & 2 Micro finance providers identified and applicants educated in procedures


Micro Financing Institutions are finance

ready

4.1.2

Develop capacity of TSIs through workshops and facilitate access to finance by creating linkages with local financial institutions (3 workshops in Y1)

2 & 3 TSIs trained and educated in procedures to access micro-finance


Additional Communities are sensitized to Business Opportunities Created by the Tourism Sector






4.2.2

Develop a training module for raising community awareness of entrepreneurial opportunities created by tourism and entrepreneurial skills / spirit

2 Training module and materials produced


Policy support from Government of Senegal

4.2.3

Series of workshops throughout country (parallel to other workshops) to impart material designed in Y1 and Y2 (total 10 workshops)

3 A minimum of 250 individuals trained


4.2.4

Identify local entrepreneurs interested in tourism and provide the local entrepreneurs with advice and training

2

A minimum of 10 entrepreneurs identified 10 entrepreneurs are trained

Entrepreneurship in the tourism sector is boosted;

Entrepreneurs commitment


4.6 Budget


PARTNERS RESOURCE ALLOCATIONS (2010

TO 2012) USD

OUTCOME: Capacity of Agricultural Producers to take part of Tourism value chain in Saint Louis is strengthened YR1 YR 2 YR 3

Strategic Locations with Planned Tourism Developments in which

to improve the skills of the Communities are selected

1.1.1 Determine which farmers will be part of the pilot project to ensure a good percentage of women are involved, and assess what technical assistance is required

ITC, DPET, Regional Council, Regional Planning Service

15,000.00

1.1.2


4,200.00

1.1.3 Local sourcing strategy developed with partners, and monitoring of the implementation of the local sourcing strategies

10,000.00


5,000.00 5,000.00 5,000.00

Improvements in logistics, quantity and packaging of local

vegetables achieved

1.2.1

Provide technical assistance to farmers and distributors in the form of training via workshops and on-the-job advice to ensure product design and offer is adapted to market requirements

ITC, Chamber of Commerce, Industry and Agriculture, SI, MSET, Consultants

10,000.00

1.2.2 Provide training in management, marketing , packaging and financial skills, (4 workshops per year)

22,500.00 22,500.00 22,500.00

1.2.3 Train staff from producer associations on compost production and other techniques

9,000.00 9,000.00

1.2.4 Identify sources of production inputs: seeds, tools, fertilizer, etc. and installation of greenhouses 5,400.00

1.2.5 Installation of a small scale trading and packing facility for farmers 8,100.00

1.2.6 Create local trademarks for Inclusive Tourism products which indicate improved quality which matches international standards

ITC, Chamber of Commerce, Industry

and Agriculture, Consultants

15,000.00

SUB TOTAL 89,200.00 36,500.00 42,500.00


OUTCOME: The income of local communities in Saint Louis is increased (by 80% in average) through local hiring by hotels and local sourcing of agricultural products by hotels

Links between producers and hotels are created to increase

local sourcing

2.1.1

Identification and involvement of producer associations, marketing intermediaries and wholesalers to act as market links

ITC, SI, MSET, CCIA, Consultants

15,000.00

2.1.2 Organize meetings between producer associations and potential buyers (hotels) 5,000.00 5,000.00

2.1.3

Provide producer associations with ITC etrade facilities where farmers can receive up-to-date information on market and demand for their produce via sms on mobile phones. Train producers to use it

ITC, Consultants, Trade Point

30,000.00 25,000.00

The amount of personnel hired locally is increased by including

and training disadvantaged people

2.2.1 Hospitality training, more specifically: identify and contract training staff, draft working position profiles for the staff, draft the training programmes for the trainers

ITC, SI, MSET, CCIA, Consultants

15,000.00 15,000.00 15,000.00


ITC, SI, MSET, CCIA, Consultants, Regional advisors, ASACASE, MECPAR, CNCAS,

FNOSIS, ANPT

10,000.00 10,000.00

2.2.3 Guide Training ITC, SI, MSET, CCIA,

Consultants

7,000.00 7,000.00

2.2.4 Community sensitization training 22,500.00 22,500.00

SUB TOTAL 52,000.00 89,500.00 62,500.00

OUTCOME: National Framework for Community Inclusive Tourism Standards and Promotion thereof is developed

TSIs are strengthened by developing Recommended Framework for CIT Policy in the Tourism Sector

3.1.1

Provide technical support to the Government of Senegal in the development of a national framework for CIT based on regional norms and specific to national needs and Inclusive Business Principles

ITC, Consultants, Government

40,000.00 25,000.00

3.1.2 Workshop held with Public / Private sectors and communities in designing structures

ITC, SI, MSET, Consultants

30,000.00 10,000.00

SUB TOTAL 0.00 70,000.00 35,000.00


OUTCOME: Capacity of Communities to Assess and Engage with Tourism Opportunities is strengthened


4.1.1

Improve access of small-scale producers to finance through linkages with local financial institutions (assessment of existing institutions and credit conditions, organize meetings with financial institutions) ITC, SI, MSET, CCIA,

Consultants

20,000.00 7,000.00

4.1.2 Develop capacity of TSIs through workshops and facilitate access to finance by creating linkages with local financial institutions (3 workshops in Y1)

21,000.00 21,000.00

Additional Communities are sensitized to Business Opportunities Created by the Tourism Sector

4.2.1 Undertake a study tour

ITC, SI, MSET, CCIA, Consultants, Regional advisors, ASACASE, MECPAR, CNCAS,

FNOSIS, ANPT

1,000

4.2.2

Develop a training module to raise community and private sector awareness of entrepreneurial opportunities created by tourism and entrepreneurial skills / spirit

ITC, Consultants, ANPT 15,000.00 15,000.00

4.2.3 Series of workshops throughout country (parallel to other workshops) to impart material designed in Y1 (total 10 workshops) ITC, SI, MSET, CCIA,

Consultants

10,000.00 10,000.00

4.2.4 Identify local entrepreneurs interested in tourism and provide the local entrepreneurs with advice and training

45,000.00

SUB TOTAL 36,000.00 98,000.00 31,000.00

+



4x4 Vehicle

14,000.00


ITC Adviser 60,000.00 60,000.00 60,000.00

National Consultant Salary (2) x 6 months per year 36,000.00 36,000.00 36,000.00

Project Coordinator Salary 48,000.00 48,000.00 48,000.00

Participation in and travel to Seminars 12,000.00

SUB TOTAL 170,000.00 168,000.00 156,000.00




5. Project: Colombia


In the last 30 years Colombia has worked towards developing its tourism industry so as to make

Colombia a tourist destination of choice, making tourism now Colombia‟s 3rd

largest export after

oil and coal. Alvaro Uribe, Colombia‟s current President champions this objective and has thus

decided to pay special attention to improve the nation‟s image both locally and internationally. As a

result of Uribe‟s efforts, both tourist arrivals to Colombia and domestic travel increased steadily in

2006 and 2007.

National figures suggest that the tourism industry in Colombia has been growing with an estimated

1‟195‟440 international visitors entering the country in 2007, a 13.5% increase compared to 2006.

Official statistics reveal that 22% of international tourists in 2007 came from the United States,

16.5% from Venezuela and 9.2% from Ecuador. The tourism industry has contributed 5.9% or US$

10‟753 million to Colombia‟s GDP. The effect of the growing tourism industry implies the creation

of new jobs, contributing directly and indirectly 1‟121‟000 jobs to the economy, or 5.3% of total

employment.

In 2032, Colombia wants to be one of the three most competitive countries in Latin America, with a

high level of personal income, equivalent to an upper middle class country. To help them achieve

these goals, Colombia has requested the assistance of the International Trade Centre.

5.2 Justification

Cartagena is a regional centre for tourism attraction that has the infrastructure to bring an important

flux of foreign recreational tourism. Its old city is classified as Cultural Heritage by UNESCO and

has been elected as a regular stopover for numerous cruises in The Caribbean.

Cartagena is also the third Colombian city in terms of industrial production and is host of the

country‟s second most active commercial port. As a result, it has attracted a huge number of

persons (ca 1 million) fleeing violence in search for employment and safety. This has contributed

to marginalization and increased poverty in the city‟s suburbs.

This project is a true priority for PROEXPORT and the Colombian government, which are

intending to join efforts with a very similar project supported by the Clinton foundation. Their

intention is also to provide the framework for a simultaneous replication in other cities of

Colombia.


Cartagena has much social inequality, where the distribution of income is fundamentally unequal

and a large proportion of its inhabitants suffer from poverty. In effect, very few small businesses

from the area are able to truly benefit from tourism. Research shows that the majority of tourism-

related revenues are made by large organizations. The upper class of Cartagena did not develop a

tradition for business, and does not appear to have much interest in taking risks nor undertaking

tasks that are time-consuming and require much personal dedication. Thus, it is essential to help

develop the human capital, improve the knowledge of TSIs and enterprises for such intervention so

as to increase capacity and productivity, if Cartagena, and Colombia more generally, are to achieve

long term sustainable poverty reduction and development.

5 For further information on the Senegalese tourism industry see Annex VII


To achieve these objectives, and further develop Colombia‟s third most important industry, TPRP

will collaborate with internationally renowned hotel chains like Sofitel. The Sofitel in Cartagena is

a beautiful hotel made of an ancient convent, whose managers are ready to support culinary

experiences made of local products in addition to an increase in their procurement of local products

and services. TPRP will also collaborate with PROEXPORT (an excellent TPO representing the

Colombian government), which has been in discussion with SECO (for whom Colombia is a

priority country) and its tourism specialist visiting Colombia. PROEXPORT‟s commitment can be

seen in that it has borne two thirds of the cost of the opportunity study.

Not only are key partners committed to the project, but the location for the project, Cartagena, is a

place where tourism is vibrant and where good tourism infrastructure is in place, thus enabling most

possible positive repercussions on the poor.


The overall aim of the project is to reduce poverty and improve the livelihood of poor producers by

creating links between the tourism industry and other sectors with potential. TPRP will collaborate

with key hotels in Cartagena, government ministries, trade promotion organizations as well as local

producer associations (see section 5.4) to help develop the agricultural sector as well as excursions

throughout the region in a sustainable manner.

Through the project‟s agricultural component, TPRP will be able to increase poor producers‟

market access as well as their market share, thus leading to increased revenues and a reduction of

poverty in urban and rural areas of Cartagena.

The excursion and shopping component of the intervention has the following immediate objectives.

In order to link the tourism sector to the excursions and shopping components, partner hotels will

easily provide accessible and clear information regarding local activities and attractions (promoting

inclusive tourism activities and responsible tourism products, local restaurants, bars and markets).

The hotels will also form partnerships/linkages with responsible tourism operators and associations

for groups and individual tours and request information on local purchasing and procurement from

operators/agents that are used. Finally, the hotels will collaborate with local travel agencies and

producer associations to develop additional local tourism products and alternative livelihood

options and enhance local destinations.

In addition to improving the livelihoods of members of poor local communities, the project also has

the objective of reinforcing the capacity of partner enterprises and institutions involved in the

project. In effect, the project will aim to promote the relationships between hotel owners and local

producers on a win-win basis, build the capacity of hotel staff as a means of improving hotel service

quality and competitiveness, build the capacity of local guides, and strengthen microfinance access

and community sensitization training to tourism-related business opportunities.

Finally, under the proposed logframe for the TPRP SECO funded Programme, an estimated 1,405

individuals will directly benefit from planned activities.


To ensure the successful implementation of the project and its long term sustainability, TPRP will

collaboration primarily with the following counterparts.


PRO-EXPORT: Pro-Export Colombia is a TPO that promotes Colombian non-traditional exports,

foreign investments and international tourism to Colombia. It provides domestic companies with

support and integral advisory services for their international trade activities, facilitating the design

and execution of their internationalization strategies, stimulating the generation, development and

closing of business opportunities. Pro-Export also promotes the sustainable inclusion of Colombian

companies into international markets and seeks international trade opportunities through the

identification of market opportunities, the design of market penetration strategies, the

internationalisation of companies, the assistance in the design of action plans, the contact with both

sellers and buyers, and the providing of specialized services to foreign companies interested in

acquiring Colombian goods and services.

Renowned Hotels: The Sofitel Santa-Clara is a key responsible partner in this ITC intervention.

Additionally, TPRP will partner with hotels including “Las Americas” and the “Capilla del Mar”.

Ministerio del Comercio, Industria y Turismo (Ministry of Trade, Industry and Tourism)

(MINCIT): The aim of this governmental body is to support the production of goods, services and

technology, and tourist regions, as well as to adopt, direct and coordinate the general policies on

economic and social development of the country, business activity”.

Ministerio de Agricultura y Desarrollo Rural (Ministry of Agriculture and Rural

Development) (MINADR): This governmental body formulates, coordinates and assesses the

policies promoting the competitive, equalitarian and sustainable development of agribusiness and

rural development processes applying the decentralization, consensus, and participation criteria

contributing to enhance the life standards and quality.

Servicio Nacional de Aprendizaje (National Training Service) (SENA): takes the responsibility

and role of the state by investing in the social and technical development of Colombian workers. It

offers and runs free professional training, so as to develop human capital and enable the integration

of the Colombian people in productive activities that contribute to the social, economic and

technological development of the country.

ASOTELCA: One of the two largest hotel unions and regulators in Cartagena. This union exercises

the Guild representation of the hotel industry looking for the general interest of the hoteliers, it

obtains assistance from the State and the stimulus that the hotel industry needs to contribute to the

economic and social development of the country, and it contributes to the proper execution of

tourist and hotel policy of the Government, to which it serves as an advisory body when requested.

COTELCO: The other large hotel unions and regulators in Cartagena. It leads the development of

Cartagena‟s hotel sector and defends the interests of the hospitality industry interests and those of

the city at the national and international levels by applying strategies of sustainability and

competitiveness for the continuous improvement of the sector.

Cassava Producer Families (Turbaco): These producers traditionally produce sweet cassava.

Research reveals that cassava is an ingredient that can be used by hotels and restaurants in both

traditional and more sophisticated dishes, as an exotic ingredient of Creole cuisine. In effect, the

chef from the Sofitel hotel in Santa Clara showed great interest in supporting such a production.

Producing cassava could be an alternative source of income for people in the area. However the

product is not well marketed and is currently sold through sweet salesmen who then sell it in the

historic parts of town. The producing families would also count on the assistance of the Escuela

Gastronomica del Caribe who is interested in safeguarding traditional gastronomy.

Asociación de Productores Agrícolas y de Dulces del Palenque de San Basilio

(ASOPRADUCE): The Palenque de San Basilio has an important influence on the whole region as

it symbolizes the fight of afro-Colombians for the abolition of slavery, ethnic rights, coexistence,


and the recognition of cultural diversity of the nation. ASOPRADUCE is an organization that was

created by the Community Council of Palenque, and has for a mission to help in the marketing of

agricultural produce and traditional sweets as well as the development of a programme of ethno-

tourism for the area

Asociación de Prestadores de Servicios del Volcan del Totumo: This small and curious volcano

is only 20 meters high, and looks like a giant anthill in the middle of a beautiful scenery. Tourists

who visit the volcano go to see the crater and later take a swim in the fresh water. The increase in

the number of visitors, both national and international, has led to organizational and environmental

problems. The office of departmental planning requires the assistance of the ITC to help the

neighbouring communities involved in the trade area in the area to assist restaurateurs in

maintaining the minimum food and safety standards. The community of the Totumo volcano needs

to be improved in tourism-related matters of organization, administration and finance to be able to

benefit from their attraction in a sustainable and environmentally friendly way.

Grupo de Mujeres costureras y artesanas de La Boquilla (Women’s Group of Seamstresses

and Artisans): La Boquilla is a district in the North of Cartagena, which now attracts many tourists

to its beautiful beaches. The Fundacion Pro-Boquilla is a non-profit organization, owned by the

owners of the “Las Americas” and the “Capilla del Mar” hotels, that aims to contribute to the

improvement of the living conditions within the surrounding communities.

- Women‟s group of seamstresses: It is a group of five women trained by SENA who have a

little tailor shop and sell their products to tourists in the city. Creating links between hotels

and restaurants could be beneficial in the provision of linen, table linen, napkins, uniforms,

etc. There is a great interest by other members of the community to be trained so that they

may join the group. The group would, however, need assistance in organizational,

administrative and financial aspects so that it may develop successfully.

- Group of Women Artisans (Damarte and Artiva): These are two groups of women (10 in the

former, and 14 in the latter). The women produce artisanal products from recycled materials

from their habitat, such as coconut and vegetal fibres or even seeds. These groups of women

would require administrative and operational training to be able to market their products

efficiently.





ACTIVITIES YEAR OUTPUTS IMPACTS IMPORTANT ASSUMPTIONS

OUTCOME: Increased demand (by 10%) from hotels and tour operators in the selected destination for products and services that can be supplied locally by poor communities

Strategic tourism partners selected and strategy developed

1.1.1

Prepare, publish and disseminate research report including value chain analysis to tourism community. Undertake socio-economic household survey for target beneficiaries using TPRP's IMT

1 & 3

Procurement patterns and policies are analyzed as well

as obstacles to and opportunities for pro-poor

sourcing are identified

Assessment of impact of project on project

beneficiaries’ living conditions


Little or no collusion between tourism operators and their current suppliers Interviewees are willing to share openly requested information

1.1.2


2 Committed hotel and tour operators are selected

1.1.3

Document procurement processes of selected hotels and tour operators, identify areas for improvement and obtain commitment by increasing at least by 10% their local sourcing

1

Procurement patterns and policies are analyzed as well as obstacles to and opportunities for pro-poor sourcing are identified

Hotel and tour operators can choose their strategy



OUTCOME: Capacity of Agricultural Producers to take part of Tourism value chain in Cartagena is Strengthened (250 pers.)

Strategic Locations with Planned Tourism in which to improve the skills of the Communities are selected

2.1.1

Determine which farmers will be part of the pilot project to ensure a good percentage of women are involved, and assess what technical assistance is required

1

Shortlist of community / communities in an area of planned high density tourism development with whom to work


Prioritized zones for tourism anchor developments are supported by the Government of Colombia

Improvements in logistics, quantity and packaging of local vegetables are achieved

2.2.1 Provide technical assistance to farmers and distributors in the form of training via workshops

1

Training of farmers in improved farming techniques

and identification of high value / yield products to increase

income

Community capacitated to engage effectively and benefit from tourism

related opportunities


2.2.2

Provide training in management, marketing, packaging , and financial skills to Cassava-producing households in Turbaco (40 participants)

2 & 3

2.2.3 Train staff from producer associations on compost production and other techniques (25)

2


1


2.2.5 Installation of a small scale packing facility for farmers

3


2.2.6

Create local trademarks for Inclusive Tourism products which indicate improved quality which matches international standards

3 Trademarks recognized by hotels and international visitors/buyers




OUTCOME: Income of local communities in Cartagena increased (by 50%) through accelerated local hiring by hotels, local sourcing of artisanal products and the organization of excursions by hotels

Links between crafts producers and hotels are created to increase local sourcing

3.1.1 Identification and involvement of craft producer associations, marketing intermediaries and wholesalers to act as market links

1 Key actors identified and agreed to act as market link

Improved on time services to hotels and better communication in terms of supply meeting demand

3.1.2

Provide training and technical support to the women's association of artisans and seamstresses’' in la Boquilla in product design, management and business skills, to meet market demands (50 participants)

2 & 3 Creation of a skilled HR base to service incoming tourism operators


Willing participation of communities 3.1.3

Organize meetings between producer associations and potential buyers (hotels)

2 Business partnerships established with hotels


3.1.4

Provide producer associations with ITC etrade facilities where farmers can receive up-to-date information on market and demand for their produce via sms on mobile phones

3

Required infrastructure in place and producer association members trained to use ITC etrade facilities

Improved on time services to hotels

3.1.5

Develop marketing strategy for local craft products targeting local sales to tourists through tourism businesses directly

2

Create awareness of local craft products, including their cultural value and potential benefits to poor producers

Increase of tourists average expenditure on locally produced crafts

3.1.6

Together with tour operators and hotels, create a circuit in selected craft villages to visit the homes of artisans combined with cultural as well as geographical sites to learn about local traditions

2

Increased amount of 3.2.1 Hospitality training, adopting the 2 Creation of a skilled HR base Community capacitated to engage No climatic or political



personnel hired locally by including and training disadvantaged people

TPRP hospitality module to service incoming tourism operators

effectively and benefit from tourism related opportunities

crisis


2 Tourism associations involved in training programme

3.2.3 Guide Training (50) 2 Creation of a skilled HR base to service anticipated market demand

OUTCOME: Excursions offering new and different activities to increase time and spending by tourists in the Volcan del Totumo developed

New tours to Cartagena's cultural and natural sites developed that include product and services from local entrepreneurs and villagers

4.1.1 Create tours in collaboration with hotels and tour operators to the volcan del Totumo

1

Create awareness of potential tourist excursions, including their cultural value and potential benefits to poor communities

New excursions and fee-paying activities that generate pro-poor income


4.1.2

Improve the current product and service offer available on the site and collaborate with local entrepreneurs and tour operators to upgrade and diversify local offer to extend lengths of stay and out of pocket spending of tourists

2

4.1.3

Provide training in the form of workshops and support to villagers/ communities to better understand tourist tastes and needs. Identify options for villagers/ communities to offer products and services to tourists (i.e. meet safety requirements, establish home stay facilities). (50 participants)

2



Fee paying activities for tourists built upon

existing assets and strengths that provide

income for local stakeholders developed

4.2.1

Identify and develop business plan for fee-paying activities aimed at tourists that enhance the involvement of local communities (i.e. agro-tourism)

2

4.2.2 Implement business plan for two fee paying activities in each area

3

4.2.3

Plan and implement with local stakeholders marketing activities to promote the activities to individual tourists and tour operators, including familiarization trips for tour operators

3



5.1.1

Improve access of small-scale producers to finance through linkages with local financial institutions (assessment of existing institutions and credit conditions, organize meetings with financial institutions)

1 & 2 Micro finance providers identified and applicants educated in procedures


Micro Financing Institutions are finance

ready

5.1.2

Develop capacity of TSIs through workshops and facilitate access to finance by creating linkages with local financial institutions (3 workshops in Y1) (150)

1 & 3 TSIs trained and educated in procedures to access micro-finance


Communities are sensitized to Business Opportunities Created by the Tourism Sector

5.2.1


1 & 2 Training module and materials produced


Policy support from Government of Senegal

5.2.2

Community Sensitization training: Series of workshops throughout country (parallel to other workshops) to impart material designed in Y1 and

2 & 3 A minimum of 250 individuals trained




Y2 (total 10 workshops) (400)





OUTCOME: National Framework for Community Inclusive Tourism Standards and Promotion thereof Developed

TSIs (and local NGOs) Strengthened by developing Recommended Framework for CIT Policy in the Tourism Sector

6.1.1

Provide technical support to the Government of Colombia in the development of a national framework for CIT based on regional norms and specific to national needs and Inclusive Business Principles

2 & 3


By establishing national standards for CIT and required levels of support from the Tourism Sector far greater returns can be generated nationally, long term capacity for sector growth will be strengthened and local economic development can be stimulated

Political will to develop and adopt policy

6.1.2 Workshop held with Public / Private sectors and communities in designing structures (50)

2 & 3





5.6 Budget


PARTNERS RESOURCE ALLOCATIONS

(2010 TO 2012) USD

OUTCOME: Increased demand (by 10%) from hotels and tour operators in the selected destination for products and services that can be supplied locally by poor communities YR1 YR 2 YR 3

Strategic tourism partners selected and strategy developed

1.1.1

Prepare, publish and disseminate report and lessons learned including value chain analysis to tourism community. Undertake socio-economic household survey for target beneficiaries using TPRP's IMT

ITC, Consultants 22,000.00 5,000.00 5,000.00

1.1.2


MINCIT, PROEXPORT, COTELCO/ASOTELCA

5,000.00

1.1.3

Document procurement processes of selected hotels and tour operators, identify areas for improvement and obtain commitment by increasing at least by 10% their local sourcing

ITC, Consultants 10,000.00

SUB TOTAL 32,000.00 10,000.00 5,000.00

OUTCOME: Capacity of Agricultural Producers to take part of Tourism value chain in Cartagena is Strengthened

Strategic Locations with Planned Tourism in which to improve the skills of the Communities are selected

2.1.1 Determine which farmers will be part of the pilot project to ensure a good percentage of women are involved, and assess what technical assistance is required

Consultants, MINADR 7,000.00

Improvements in logistics, quantity and packaging of local vegetables are achieved

2.2.1 Provide technical assistance to farmers and distributors in the form of training via workshops

PROEXPORT, ITC, MINADR

COTELCO/ASOTELCA 16,000.00

2.2.2 Provide training in management, marketing, packaging, and financial skills to Cassava-producing households in Turbaco (40 participants)

SENA, MINADR COTELCO/ASOTELCA

25,000.00 10,000.00

2.2.3 Train staff from producer associations on compost SENA 13,000.00



production and other techniques (25)


SENA 4,000.00

2.2.5 Installation of a small scale packing facility for farmers MINADR 12,000.00

2.2.6 Create local trademarks for Inclusive Tourism products which indicate improved quality which matches international standards

MINCIT, MINADR SENA

10,000.00

SUB TOTAL 27,000.00 38,000.00 32,000.00

OUTCOME: Income of local communities in Cartagena increased (by 50%) through accelerated local hiring by hotels, local sourcing of artisanal products and the organization of excursions by hotels

Links between crafts producers and hotels are created to increase local sourcing

3.1.1 Identification and involvement of craft producer associations, marketing intermediaries and wholesalers to act as market links


3.1.2

Provide training and technical support to the women's association of artisans and seamstresses’ in la Boquilla in product design, management and business skills, to meet market demands (50 participants) SENA

20,000.00 10,000.00

3.1.3 Organize meetings between producer associations and potential buyers (hotels)

4,000.00

3.1.4

Provide producer associations with ITC etrade facilities where farmers can receive up-to-date information on market and demand for their produce via sms on mobile phones Consultants, ITC

50,000.00

3.1.5 Develop marketing strategy for local craft products targeting local sales to tourists through tourism businesses directly

6,000.00

3.1.6

Together with tour operators and hotels, create a circuit in selected craft villages to visit the homes of artisans combined with cultural as well as geographical sites to learn about local traditions

SENA, COTELCO/ASOTELCA

12,000.00



Increased amount of personnel hired locally by including and

training disadvantaged people

3.2.1 Hospitality training: adopting the TPRP hospitality module

SENA 15,000.00



3.2.3 Guide Training (50) SENA

15,000.00

SUB TOTAL 8,000.00 127,000.00 10,000.00

OUTCOME: Excursions offering new and different activities to increase time and spending by tourists in the Volcan del Totumo developed

New tours to Cartagena's cultural and natural sites developed that include product and services from local entrepreneurs and villagers

4.1.1 Create tours in collaboration with hotels and tour operators to the volcan del Totumo

SENA

8,000.00

4.1.2

Improve the current product and service offer available on the site and collaborate with local entrepreneurs and tour operators to upgrade and diversify local offer to extend lengths of stay and out of pocket spending of tourists

10,000.00

4.1.3

Provide training in the form of workshops and support to villagers/ communities to better understand tourist tastes and needs. Identify options for villagers/ communities to offer products and services to tourists (i.e. meet safety requirements, establish home stay facilities). (40 participants)


Fee paying activities for tourists built upon existing assets and strengths that provide income for local stakeholders developed

4.2.1 Identify and develop business plan for fee-paying activities aimed at tourists that enhance the involvement of local communities (i.e. agro-tourism)

SENA 5,000.00



4.2.2 Implement business plan for two fee paying activities in each area

12,000.00

4.2.3

Plan and implement with local stakeholders marketing activities to promote the activities to individual tourists and tour operators, including familiarization trips for tour operators

MINCIT, ITC 13,000.00

SUB TOTAL 8,000.00 40,000.00 25,000.00



5.1.1

Improve access of small-scale producers to finance through linkages with local financial institutions (assessment of existing institutions and credit conditions, organize meetings with financial institutions)

Consultants, Local Financial Institutions,

MINCIT 26,000.00 10,000.00

5.1.2 Develop capacity of TSIs through workshops and facilitate access to finance by creating linkages with local financial institutions (3 workshops in Y1) (150)

ITC, Consultants, MINCIT

30,000.00 15,000.00

Communities are sensitized to Business Opportunities Created by the Tourism Sector

5.2.1


COTELCO/ASOTELCA, MINCIT, SENA, ITC

10,000.00

5.2.2

Community sensitization training: Series of workshops throughout country (parallel to other workshops) to impart material designed in Y1 (total 10 workshops) (400)

Consultants, SENA, ITC, MINCIT

20,000.00



5.2.3 Undertake a Study Tour PROEXPORT

COTELCO/ASOTELCA, MINCIT, SENA, ITC

1,000

SUB TOTAL 57,000.00 20,000.00 35,000.00

OUTCOME: National Framework for Community Inclusive Tourism Standards and Promotion thereof Developed

TSIs (and local NGOs) Strengthened by developing Recommended Framework for CIT Policy in the Tourism Sector

6.1.1

Provide technical support to the Government of Colombia in the development of a national framework for CIT based on regional norms and specific to national needs and Inclusive Business Principles

ITC, Consultants, Government, MINCIT

30,000.00 20,000.00

6.1.2 Workshop held with Public / Private sectors and communities in designing structures (50)

ITC, PROEXPORT, SENA, MINCIT,

MINADR, COTELCO/ASOTELCA

Consultants

30,000.00

SUB TOTAL 0.00 30,000.00 50,000.00


4x4 Vehicle

14,000.00


ITC Adviser 60,000.00 60,000.00 60,000.00

National Consultant Salary (2) x 6 months per year 36,000.00 36,000.00 36,000.00

Project Co-ordinator Salary 48,000.00 48,000.00 48,000.00

Participation in and travel to Seminars with PROEXPORT 10,000.00

SUB TOTAL 176,000.00 172,000.00 162,000.00





6. Total Programme Budget

OUTPUT ACTIVITIES INPUTS RESOURCE ALLOCATIONS

(2010 TO 2012) USD

PROGRAMME'S MANAGEMENT SET-UP AND OPERATIONAL

ITC Project Support Geneva

Projects Coordination

ITC Adviser 300,000.00

Administrative Support 162,000.00

Travel Project Personnel 60,000.00

Meetings Steering Committee Group Training 18,000.00

Evaluation Midterm and Final Evaluation International Consultants 60,000.00

SUB TOTAL 600,000.00

PROJECT SPECIFIC BUDGET

Mozambique 1,150,400.00

Senegal 1,136,200.00

Colombia 1,064,000.00

SUB TOTAL 3,350,600.00

Sub-Total of Required Budget 3,950,600.00

Sundry (4%) 158,024.00

Support Costs (13%) 534,121.00

TOTAL TPRP BUDGET 4,642,745.00



Annexes



Annex I Development Context and Intervention Rationale

Background

Tourism is, nowadays, one of the world‟s largest and fastest growing export sectors.

According to the United Nations World Tourism Organisation (UNWTO), international

tourism arrivals have expanded at an annual rate of 6.5% rising from 25 million to 806

million travellers between 1950 and 2005. The income generated by these arrivals grew at

an even stronger rate reaching 11.2% within the same period. Tourism flows have become

more diversified whereby in 1950 the top 15 destinations were absorbing 88% of

international arrivals , whereas in 2005 they had just been making up for 57% , reflecting

the emergence of new destinations, many of which are in developing countries.

With reference to the latest estimates of the World Travel and Tourism Council (WTTC),

the tourism industry has contributed nearly US$ 5,890 billion, or 9.9%, to the global GDP

in 2008. In terms of employment, WTTC estimated that tourism generated 238 million

jobs in 2008, amounting to 8.4% of total worldwide employment, or 1 in every 12 jobs.

Tourism is also a major driver of international trade, generating some 11% (US$2,103

billion) of total world exports in 2008.6 In contrast to other sectors, the tourism industry

has engendered export opportunities for countries that have otherwise played a marginal

role in global trade. According to the UNWTO, even prior to 2002, tourism receipts in

developing countries exceeded US$ 200 billion. At present, tourism is the primary export

for a third of developing nations. In effect, excluding oil exports and mining, tourism is

the main source of foreign exchange earnings for Least Developed Countries (LDCs)7.

Tourism can thus be regarded as a means of achieving development in tourist destination.

Or, as the Manila Declaration on the Social Impact of Tourism claimed, “world tourism

can contribute to the establishment of a new international economic order that will help

to eliminate the widening economic gap between developed and developing countries and

ensure the steady acceleration of economic and social development and progress, in

particular in developing countries”.8

Tourism and Poverty Reduction

Tourism affects the livelihoods of many of the world‟s poor. Indeed for most countries

with high levels of poverty, tourism is a significant (with over 2% of GDP) or growing

part of the economy. It is an industry that generates a significant economic value-added

what? difference? through linkages including pro-poor activities, such as farming and

agricultural processing, manufacturing and tourism-related services. As a result, many

developing countries consider tourism to be a vital component of their overall

development strategies and policies.

Given its importance in developing countries, tourism offers much potential for local

value chain development. Tourism can, for instance, boost the demand for goods and

6 WTTC 2008 : Progress and Priorities 2008/09

7 UNWTO. Tourism and Poverty Alleviation, 2002, Executive Summary, p. 10

8 UNWTO. Manila Declaration on the Social Impact of Tourism, Manila, 22.05.1997.



services from other sectors such as food, construction or the creative industries. The

goods and services developed for the tourism industry can in turn be employed by

businesses in other sectors.9 Thus, there have been high expectations that developing the

tourism industry would lead to growth in other sectors of the economy through supply

chain linkages and multiplier effects.10

However, local communities do not automatically benefit from tourism. In fact,

tourism has been criticized as a form of neo-colonialism; where businesses exploit

poor nations and communities and where trickle-down effects fail to take place.

Indeed, the impact on the local economies and on the social and environmental

fabric has been disastrous in a number of famous tourist destinations.

Table 0.1 Reasonable returns on investment in the sector

Foreign exchange earnings;

The development of areas with possibilities of expanding economic activity;

The creation of employment opportunities;

A boost for local production of the goods and services consumed by tourists;

The creation of partnerships to improve livelihoods;

More tax revenue for the State (tourism taxes and revenues can be used to help pay for

environmental protection or build decent roads);

The integration of national cultures and societies and the safeguarding of the national

cultural identity from foreign cultural influences;

The provision of additional infrastructure and amenities that will encourage and

support the tourism industry as well as benefit local and national interest;

More ownership and participation in decision-making for poor people through the

formation of producers groups and improved access to information.

Turning Leakages into Linkages

So why does tourism, a potentially pro-poor instrument, not automatically translate into

the desired effects in its contribution to poverty reduction and economic growth for the

poor local communities?

Sometimes, residents do not benefit from tourism in terms of employment or sales

opportunities as they are confronted with rising prices, pressure on scarce infrastructure

and the strong volatility and seasonality of tourism demand. High „economic leakage‟

rates11 are linked to the purchasing decisions of the key industry players governing the

tourism value chain who, rather than buying locally, choose to import supplies and

services according to the market demand of the industry and visitors alike.12 Statistics

indicate that 60% to 75% of revenues related to tourism leak away from developing

9 OECD 2008: Policy Brief: Opening up Trade in Services: Key for Tourism Growth

10 UNCTAD, 2007. FDI in Tourism: The Development Dimension, New York and Geneva,

11 Defined as the % of tourism revenues that is not available for re-investment or consumption in that same country

12 ILO. 2008, Reducing Poverty through Tourism



nations, even reaching 90% in least developed countries, because of foreign ownership,

imported resources, foreign airlines and tour operators, and low local supply capacity.13

Therefore, it is essential to determine how to insert poor communities effectively into

tourism supply chains.

Foreign Direct Investment (FDI) is a key driver for the economic development of LDCs,

in particular for their tourism industry. So as to create linkages, it is necessary to increase

the local participation in tourism-related activities and develop tourism infrastructure via

local investors.14 This is one of the problems of package tours, which tend to be arranged

by foreign wholesalers, entailing little revenue for the ‘destination country‟, which makes

little economic sense for developing nations.15 To ensure local economic benefits, the

governments of developing countries have now chosen to impose regulations on package

tourism. In addition, governments and development agencies should support sustainable

tourism business initiatives and help increase LDCs‟ access to the tourism market.

Linkages can also be achieved by collaborating with hotels committed to sustainable

sourcing solutions to develop their sourcing decisions, whether these relate to food,

manufactured goods or services, including arts and crafts. To create such supply linkages,

it is necessary to focus on the development of local production capacity and training of

local service providers. Interestingly, sourcing production locally will have the major

benefit of restoring the balance of payments and decreasing the carbon footprint of tourism

operators.

As a result of the decrease in financial leakages and the creation of linkages, there will be

an increase in supply capacity, a higher quality of locally produced goods and services,

additional employment and income-generating opportunities for poor communities as well

as a reduction in the transaction and sourcing costs for the buyers.

Problems Addressed by the Programme

To turn leakages into linkages, it is essential to consider the different levels of

intervention, namely producers and key buyers, support institutions, and national

policymakers. It is one of the key concepts of TPRP to address individual, institutional and

political constraints in a holistic manner.

Producers and Buyers (Micro-level):

Hotel owners, tour operators and logistics managers in the tourism industry are

sometimes unaware of the backward linkage possibilities. Also, community

producers may lack skills for ensuring appropriate delivery in terms of quantity,

quality and timing. Furthermore, the potential sub-contracted producers group may

be too small or too dispersed in order to make the linkage viable.

Small-scale producers, in turn, face clients with a better bargaining power. Often, there

are no formalised contracts or rules even for issues such as product inspection or payment

modalities. Supply relations in the tourism industry are often hindered by the collusion of

entrenched actors as well as kickback payments and commission schemes. Other

13

Hemmati, M. and N. Koehler, 2000, Financial Leakages in Tourism, in Sustainable Travel and Tourism, pp.25-29 14

Ibid. 15

Wheat, S. (1997) The Tourism Juggernau. People and the Planet, quoted in Hemmati, M. and N. Koehler (2000)



obstacles include skill and raw material shortages, inappropriate technology, people‟s

access to micro-credit, and lack of market information.

Trade Support Institutions (Meso-level):

Many developing countries and economies in transition suffer from weak institutional

capacity and are thus unable to provide support services tailored to the needs of small- or

micro-enterprises as well as community production groups. Responsible private

companies and NGOs sometimes fill the institutional gap by providing assistance in credit

provision, in product development, in training, in marketing and in the testing of new

designs.

Policymakers (Macro-level):

Despite the efforts from the various stakeholders involved, poverty reduction strategies

frequently fail to fully include pro-poor tourism into their action plans. Lack of awareness

on the relevant issues or inadequate dialogue with the tourism industry may contribute to

this problem. Thus, affected countries may sometimes under-exploit the potential for

tourism as an engine for poverty reduction.

Country Selection and Technical Capacity Building Needs

The TPRP will be implemented in three countries, namely, Colombia, Mozambique and

Senegal. The selection of these countries was influenced by a number of factors including

tourism potential, expressed demand of local government and private sector partners,

poverty incidence as well as ITC and SECO priorities. In TPRP working in two LDCs

(Senegal, Mozambique), including one post-crisis country (Mozambique) in Africa, it has

an innovative and ambitious scope for the inclusion of the poor into tourism activities.

In all three countries, initial studies and discussions have taken place as summarized in

Annex V. Certain common trends emerge: In the three countries, tourism development is

high on the agenda of the government and part of national strategies (e.g. DTIS, PRSP). A

key message is that tourism is a sector with considerable growth potential, and one that is

the source of a significant proportion of these nations‟ GDP. Tourism arrivals have

increased considerably over the past two decades and have grown in diversity. As a result

of the increase of demand, tourism can generate an important number of jobs, many of

them for women.

All countries studied, with the support of their respective governments, have prioritized

the development of their tourism infrastructure and facilities. There has also been an

increase and improvement in the number of available rooms and the quality of the

accommodation. The ministries of tourism in these countries have also helped in the

training and capacity building of hospitality staff. However, inclusive tourism is still

marginal in all three countries as many actors are still lacking common understanding of

what needs to be implemented.

In addition, there is potential for scaling-up and realising donor synergies. ITC has

already established constructive working relationships with key agencies and donors, such

as the World Bank/IFC, with development organizations strongly focusing on tourism,

such as UNWTO and SNV, and with influential research bodies, such as ODI and the



Tourism Resource Consultants Group, as well as with important private sector players in

tourism, such as the ACCOR Group.

Therefore, the TPRP does not start from scratch, but rather, it can build on the good

practices of the previous ITC‟s initiatives. In Mozambique, a pilot intervention in Maputo

successfully linked poor farmers to selected hotels and supermarkets while simultaneously

redesigning and refurbishing the Maputo hotel school. This programme has caught the

attention of the International Finance Corporation (IFC) who wishes to replicate the ITC‟s

tourism approach in four large tourism destinations spread over several provinces of the

country. The World Bank is equally interested in calling on ITC‟s expertise to complement

a large project in the province of Inhambane. In Colombia and Senegal, the TPRP can

build on a detailed opportunity study undertaken in Cartagena and in the region of Saint-

Louis, in the north of Senegal.

Rationale for creating the Tourism-led Poverty Reduction Programme

Lessons learnt from previous initiatives

Thus far, the ITC has implemented, over the past five years, inclusive tourism projects in

Brazil, India, Mozambique, the Philippines, and Senegal. To sharpen the operational

focus of the programme, ITC has initiated a strategic review of its community-tourism

activities conducted by the Overseas Development Institute (ODI).16

From the pilot projects and the strategic review, a number of important lessons learnt have

emerged:

Most importantly, the ITC‟s concept of inclusive tourism has to be understood as different

from the more “classical” community-based tourism approaches. It does not intend to

build new attractions in remote poor villages or capacitate the villagers to become full-

fledged service providers, but rather works with existing tourism locations and value

chains and tries to integrate the poor into suitable transactions.

A second learning point is to work in a real partnership with the private sector. Only by

using the know-how and capacity of larger tourism operators and hotel chains, inclusive

tourism projects can become the outreach and financial sustainability that really benefit

the poor.

Also important, is the networking with diverse partners, including local government,

NGOs and tourism colleges and schools. As tourism links up with different aspects of

socio-economic development, e.g. food security, heath and sanitation, environmental

protection issues or cultural heritage protection, it is good to have access to the pool of

know-how of different partners in order to create a harmonious and conducive atmosphere

to involve the poor.

The well-informed choice of a certain location, value chains to work with and local

committed partners are other key elements of successful projects. The feasibility of

projects need to be strictly assessed during the inception phase, analysing the tourism

markets, value chain players and dynamics, targeted communities and supporting

16

Ashley, C. and J. Mitchell, 2008. Strategic review of EPRP tourism



institutions that surround a planned project. The outcome is a realistic plan to involve the

poor in economic activities, measured through a monitoring and evaluation framework.

Summary of key ITC lessons learnt from inclusive tourism:

Work with successful tourism locations and in existing value chains.

Include responsible actors in the tourism industry to increase outreach and

sustainability through a market-led approach.

Network with diverse local and international partners to create synergies and tap

into complementary pools of know-how.

Respect local legislations and instil some useful risk management measures.

Strictly assess the feasibility of new projects and have an M&E framework in

place.

The strategic review concluded that ITC‟s approach to tourism has the potential to

substantially change the pro-poor impact of tourism and can contribute to the adoption of

more pro-poor approaches internationally. However, it should certainly be scaled-up so as

to increase the impact on more poor people. Moreover, project intervention in a particular

location can lead to a tourism sector strategy reinforced by policy advice to help the

country government take the right measures to attract FDI and improve the country‟s

infrastructure or plan further tourism development through a well-designed strategic plan.

Most of these elements are part of what ITC is offering through its projects and in-house

expertise, in collaboration with partners like SNV and the UNWTO.

ITC’s Competitive Advantage

The International Trade Centre (ITC) is the technical cooperation agency of the World

Trade Organization (WTO) and the United Nations (UN). Within its line of business17, the

ITC designs projects aiming at developing export strategies, increasing the

competitiveness of sectors and enterprises, producing and disseminating trade

intelligence, improving the capacity of trade support institutions, and strengthening

business and trade policies. To contribute to the Millennium Development Goal (MDG)

of poverty reduction, the ITC has been successfully implementing its Export-led Poverty

Reduction Programme (EPRP), which aims to ‘link poor communities with promising

products and services to market, using technical support, in order to achieve a direct

impact on their economic development‟.

As mentioned, the idea to set-up a Tourism-led Poverty Reduction Programme (TPRP)

has directly emerged from pilot experiences related to inclusive tourism projects. In the

context, “Inclusive Tourism” is understood as a sustainable approach to tourism

development18 that fosters links and interaction between the different actors in the tourism

industry, partnership with private actors, stimulation of the local economy and

involvement of local communities. More specifically, the TPRP creates and strengthens

17

Business and Trade Policy, Export Strategy, Strengthening Trade Support Institutions, Trade Intelligence

and Exporter Competitiveness 18

Ecole Hôtelière de Lausanne, 2008.



linkages by integrating local producers into existing tourism value chains and by

reconfiguring these value chains.

This methodology encompasses a cross-section of practical inputs- market knowledge,

supply chain management, production and service supply capacity development, quality

control and management, strengthening of institutions, all inherent to the ITC‟s work and

mandate. The TPRP would focus on poverty impacts, complementing the more

environmental focus of Corporate Social Responsibility and Sustainable Tourism work

(CSR/ST), and on market-oriented business (rather than welfare) issues.

The TPRP has the capacity, not only to advise companies on how to source local products

and services, but also to implement field projects that will complement and spearhead the

development of inclusive business strategies for hotels, tour operators and other channels

in the market. The ITC‟s implementation of partnerships in the field, promoted within the

sphere of complementary programmes and bilateral and multilateral forums, will help to

position inclusive tourism higher on the international agenda19

. This programme will,

among other things, combine the ITC‟s knowledge in dealing with poor communities with

sector knowledge of tourism value chains, most of which is gathered within the ITC‟s

Sector Competitiveness section.

Linkages with the other ITC‟s units will materialize in areas such as trade finance, TSI

strengthening, packaging, services, enterprise competitiveness and applied according to

specific contexts prevailing in Colombia, Mozambique and Senegal.

Rationale for SECO contribution

The promotion of pro-poor inclusive tourism is in line with SECO‟s main goal of

promoting sustainable growth and poverty reduction in developing countries through

further integration in international markets and private sector initiatives. By helping the

poor to benefit from tourism value chains, they are exposed to international market

standards and norms, promoting their integration into the world economy.

Switzerland has a long tradition as a tourism destination and hosts some of the best hotel

schools in the world. Swiss hospitality management know-how sets hospitality standards

worldwide, leading to the important role of Swiss hotel chains and tour operators in the

tourism industry. Promoting sustainable tourism in developing countries‟ markets will

open up new and rapidly growing markets for responsible private sector investors from

the tourism industry. The technology transfer and capacity development, which is

intended by the proposed programme, therefore fits well with the interests of the Swiss

hospitality industry.

SECO‟s Economic Development and Cooperation Department is focussing on assisting

private sector development and improving social and environmental standards, as is the

case with TPRP.

In addition to the cooperation between TPRP and SECO‟s already existing projects and

activities (e.g. SECO supported Clean Production Centres), all the tools already

19

Ibid.



developed by the ITC for its inclusive tourism interventions will be made readily

available to SECO.



Annex II Programme Strategy

2.3 Implementation Strategy

TPRP Project Cycle

Inception Phase

The TPRP‟s projects are initiated with an inception phase, which carefully examines the

feasibility of project success. While the different elements (value chain analysis, needs

assessment, baseline survey, etc.) are separate steps, they are mostly undertaken jointly as

parts of a bigger opportunity study exercise.

After the ITC has been invited to work in a specific country on inclusive tourism, the first

step is the selection of the most suitable site in terms of its current tourism flows and

infrastructure so as to achieve the best possible impact for the local poor. Essentially, the

idea is that, the bigger the “tourism pie”, the more the locals can benefit through TPRP‟s

coordinated actions.

The next step consists of an analysis of promising value chains, checking the demand

from hotels, tour operators and tourists. The objective is to identify the most labour-

intensive products and services with the shortest cycle and best profit margin possible.

This helps to ensure a regular and sizable flow of revenue to the beneficiaries of the

project. It is then necessary to identify the parts of the value chain where pro-poor

changes are likely to occur and where eventual blockages can be removed through TPRP

interventions. It is also important to engage the actors (e.g. public authorities) to work

towards the progressive mitigation of these issues.

The third step relates to the supply side. For each of the selected products and services,

possible suppliers are identified and selected based on their level of the qualification

Selection of Destination

Value Chain Analysis

Needs Assessment

Implementation/ Monitoring

Replication/ Scaling-up

Policy Mainstreaming



group organisation and equipment. Information will be gathered through a baseline survey

using a dedicated impact measurement method developed by the ITC‟s TPRP.

Producers may subsequently require the assistance of the TPRP to help them group

themselves into commercial associations or cooperatives in order to gain bargaining

power for purchasing inputs and the sale of their outputs. The TPRP can also help small

producers to meet buyer requirements.

Implementation Phase

The implementation of the TPRP interventions rests on three strategic principles, with

regard to different stakeholders: (i) creating effective demand for local products and

services with responsible buyers; (ii) building the supply capacity of poor communities

matching market requirements; and (iii) developing institutional capacity that will

facilitate inclusive tourism.

i. Creating effective demand for local products and services with responsible

buyers

Analysing the procurement patterns of hotels, resorts and restaurants can reveal numerous

value chains that can be linked to local communities (see also Annex IV). However, not

all owners of tourism establishments are aware of the possibility of sourcing locally.

Many believe that local suppliers cannot meet their rigorous quality requirements, lot

sizes and delivery deadlines. On the other hand, more and more key stakeholders in the

value chain are interested in socially and environmentally sustainable business practices

as part of their corporate responsibility strategies. TPRP helps to translate this interest into

actual business with local communities through the market development expertise of ITC.

Farming and fishing, including simple agricultural processing as well as organic and fair

trade markets are occupations, which have a large potential for local economic

development including the poor. The ITC‟s Sector Competitiveness Experts have a deep

understanding of these markets and have access to a network of key buyers and experts.

In addition, through the EPRP, the ITC has progressively acquired expertise in developing

the agricultural supply chain for tourism.

The services sector is the other big opportunity for linking the poor to tourism markets.

Human capacity development to deliver quality services is a key for success in these

markets. Supporting the tourism sector also implies providing training to hotel staff or

tour operators in order to improve tourism standards and satisfy demand, as these

organizations are major contributors in raising the level of value-addition within a

destination.

Altogether, the TPRP will not only develop tailor-made local sourcing strategies with the

industry partners to maximise the benefit for the local communities, but equally for the

private sector.

ii. Building the supply capacity of poor communities matching market

requirements

Supply capacity development often addresses one or several of the following areas of

intervention:



Product and service development including design, packaging, labelling

Efficient procurement of quality inputs

Improvement of the production processes through quality management techniques

Upgrading of marketing and negotiation skills

Access to finance

General management and business skills

Intrinsic to capacity building is addressing the issue of ownership. This element

contributes to sustainability of poverty reduction, which is higher when the poor are a

driving force behind their own development.

The capacity development benefiting the local population will be supported according to

the country and destination context. Where there is vocational training for tourism jobs or

business management is available, the programme will use and reinforce it. In other cases,

workshops or training activities will be organized in priority with local or at times with

international consultants and in collaboration with private sector partners and institutions

in order to ensure content quality. To fit with seasonal patterns of tourism demand,

complementing sectors can also be developed such as agriculture, fishing and

construction, thereby involving local communities. At all times, long term and sustainable

solutions will be preferred to quick fixes.

iii. Institutional capacity development facilitating inclusive tourism

As a third important strategic principle, the TPRP will help to reduce the transaction costs

of doing business. This is strongly related to the institutional environment supporting more

transparency and trust between buyers and sellers in tourism markets.

The TPRP will work with intermediaries to better manage supply relationships and

facilitate a mutual flow of information. The supporting institutions need to address

potential know-how gaps and to aggregate production capacity in order to establish more

long-term relationships and to serve bigger orders.

The TPRP will strengthen responsible intermediaries through IT-based solutions, such as

web-based matchmaking and payment tools or the ITC‟s Trade-at-Hands mobile

technology. Another important role for support institutions is to guarantee the quality of

tourism offers through local (national/international) certification schemes. These often

include social and environmental standards fostering sustainable tourism.

Scaling –up and Replication Phase

Finally, the TPRP will strive for replication at the national or regional level, either by

scaling-up the size of the project and number of beneficiaries and/or by launching similar

projects in additional communities with the ultimate aim to mainstream the inclusive

tourism approach into the poverty reduction and tourism strategies of the country.

To achieve the goal of an amplified outreach, elements of replication have to be built in

from the beginning into the project plan by a package of activities aimed at encouraging

nationwide replication in partnership with national authorities. Possible activities

fostering an institutionalisation and mainstreaming of the approach are:



Forging project implementation partnerships further, with TSIs and TPOs on the

one hand, and with NGOs and/or other development agencies (SNV, IFC, etc.) that

have a field presence and can complement TPRP‟s work on the other hand.

Adding value to projects initiated by other organizations in tourism or local

economic development. ITC‟s input will be its market development and inclusive

business competences.20

ITC will also catalyse the engagement of women

entrepreneurs by drawing on ITC‟s network of contacts.

Conducting capacity building measures to improve the operational excellence of

institutions offering business development services to the tourism and hospitality

sector.

Building a network with leading private sector organizations to help them further

enhance their participation in inclusive tourism.

Collaborating with policymakers in project countries so as to modify the policy

framework to reduce some of the barriers to poor small producers‟ involvement in

tourism-related activities. Policies that encourage companies to train employees for

management positions and that integrate young women and men into training

programmes, should also be considered.

2.4 Cross-Cutting Issues

Gender mainstreaming and empowerment of women

Gender equality and empowerment of women is a concern of every TPRP project.

Promoting the livelihoods of poor communities and the entrepreneurial potential of

disadvantaged producer groups in developing countries will automatically benefit women,

against the background that 70% of the world‟s poor are in fact women. Promoting

inclusive tourism often means addressing sectors with a high participation of women, e.g.

farming, arts and crafts as well as hotel and restoration services. Besides positive

economic effects, TPRP projects also have an advocacy role with the private sector,

creating awareness on the need to eliminate gender disparity.

Environmental sustainability

Farmers and tourism service providers depend in many ways on the quality of the

environment and the livelihoods of the poor are particularly exposed to the degradation of

their natural resources, e.g. toxic waste and lack of clean water. Moreover, the

proliferation of commercial farming practices in the country and the strict international

sanitary and phytosanitary (SPS) standards demanded by leading firms in tourism value

chains are factors that have an impact on the environmental effects of production for

small-scale farmers.

More and more, eco-labels and -certifications are becoming an important requirement to

enter profitable international markets. The Programme will continue to work to overcome

these technical barriers to trade and build national capacities and human resources to

address environmental sustainability and tackle sustainable trade.

20

Ashley, C. and J. Mitchell, 2008,



Annex III Management Arrangements

2.5 Programme management arrangements and coordination

Programme Steering Committee (PSC)

The role of the Programme Steering Committee is to provide general guidance to the

Programme Coordination Team, to facilitate networking and donor coherence as well as

to review progress towards the planned results. The PSC will meet twice a year in Geneva

and shall be composed of senior representatives of the ITC, SECO, the private sector, and

a tourism value chain specialist.

ITC Programme Coordination Unit (PCU)

The Programme Coordination Unit is responsible for the design and strategic direction of

the TPRP and will direct and monitor implementation of the country projects. The Team

is responsible for the reporting to ITC and SECO and will organise for the networking and

fundraising of the Programme. The PCU in the ITC is composed of the Programme

Manager, a TPRP Senior adviser and a Support Staff, drawing in addition on the ITC‟s in-

house market development specialists and a roster of external tourism and value chain

development experts.

National Implementation Teams (NIT)

The National Implementation Teams will manage project implementation on the ground

and work hand-in-hand with the local communities, private sector partners and local

government authorities. Supportive agreements with the local authorities in the three

selected countries are already in place. The NIT is also responsible for collecting data and

supporting information for the monitoring and evaluation of the programme.

A team of experts composed of (an) international consultant(s) and (a) national

consultant(s) will be recruited. The international consultant(s) will ideally gather expertise

on gender,21

sustainable tourism, value chain analysis, knowledge of tourism development

in the targeted country or region, and will familiarise himself or herself with the

operational objectives of the ITC‟s Business Lines.22

The national consultant(s) will

demonstrate knowledge in tourism development, the local language(s) and cultures.

The NITs will be organised by a National Coordinator with a tourism management

background who will ideally also have an understanding on development issues, such as

gender and environmental management. The National Coordinator will be supported by

experts, who are specialised in the development of the agricultural, tourism, artistic-

cultural, or other related value chains. There will be a sound mix of national and

international expertise to continuously build the supply capacity of the beneficiaries on

the ground.

21

Gender-stereo-typing- particularly in the tourism sector – relegates women and men to different occupations

within the industry. If TPRP is to really touch the lives of the poor, it must make an impact on women‟s income

with development gains, a contribution can also then be made through tourism trade to development and poverty

reduction. To achieve this, gender expertise must be available in the panel of experts. 22

Trade intelligence, exporter competitiveness; export strategy, business in trade policy, and strengthening of

TSIs.




Impact Measurement

Impact measurement is facilitated through the collection of baseline data at the start of

each project with the help of a dedicated impact measurement methodology developed by

ITC‟s EPRP. The methodology is tailored to specific value-chains and monitors in

particular the poverty reduction, gender and environmental impact of projects. The survey

is repeated halfway and at the end of the programme measuring progress towards the

specified results. Complemented by continuous reports of the national coordinators, the

impact measurement methodology will be the basis for an effective monitoring and

reporting system.

Reporting Schedule

ITC will provide SECO with annual results-based narrative reports and financial

statement showing expenditures and fund balance with respect to the funds provided by

SECO and prepared in accordance with the United Nations accounting and reporting

procedures. ITC will also provide a final financial statement within six months of the date

of expiration or termination of Programme‟s activities.

Evaluations

Two independent (external) evaluations are foreseen, namely a first one at mid-term and

second one towards the end of the Programme. The terms of reference and exact timing

will be decided after consultations between SECO and ITC. The evaluations (the cost of

which is included in the programme budget) will be managed jointly by the evaluation

sections of both organizations, in cooperation with the key stakeholders. External

evaluations will be complemented by periodic critical internal self-reviews undertaken by

the Programme Coordination Unit and supervised by the Steering Committee.


Risk mapping

The main risks that may arise over time and the likelihood of their occurrence and their

severity are summarised in the matrix below.

List of Risk Factors by Origin

Macro/Global-Risk Factors

Likelihood

(1-5)

Severity

(1-5)

Economic

1. General economic downturn offsets project results 4 2

2. Sustainable sourcing trend comes to an end 1 4

3. Tourism industry not sufficiently developed 3 3

Environmental

4. Natural and cultural environment deteriorates in tourism areas 3 3

5. Natural disasters affect project regions 1 3

Social

6. Widespread collusion or corruption among tourism industry actors 3 3

7. Social unrest or civil conflict endanger tourism 2 4



Institutional

8. No trustworthy institution to govern sustainable tourism schemes can be

found

2 4

9. Banks not funding necessary investment in local tourism infrastructure 4 3

Political

10. Government prefers quantitative over qualitative tourism development 4 2

11. General political instability in the project countries 2 3

Micro/Project-Risk Factors

Economic 12. Poor communities cannot produce at competitive cost 3 4

13. Participating hotels and restaurants financial situation deteriorates leading

to insufficient investment in project

1 3

14. Project partners seriously delaying implementation 4 3

Environmental 15. (Additional) activity destroys environmental integrity of tourism sites 2 5

Social 16. High expectations of poor producers cannot be met creating lack of

confidence of target group

2 4

17. Women not adequately represented in the community production groups 3 4

Institutional 18. Local communities are not willing to participate in producer groups or

capacity building

1 5

19. Unstable or uncommitted stakeholder institutions 3 5

20. Banks not supporting local development 3 1

Political 21. Not enough commitment of local government to support TPRP 3 4

22. No trust-based partnerships and linkages between public and private

partners

3 5

Risk Map TPRP

high

Likelihood

low

1, 10 9,14

20 3,4,6 12, 17, 21 19, 22

11 8,7, 16 15

5,13 2 18

low high

Severity

The following section will address important mitigation or management strategies to deal

with the most important risk factors.



Risk management strategies

Assessment of opportunities and challenges through a thorough feasibility study

Risk management starts with the careful selection of target locations, market segments,

partners and beneficiaries. All this is undertaken within the so-called “opportunity study”

which is a preliminary assessment of project feasibility. TPRP can make use of a network

of experienced tourism consultants to assess the impact of tourism value chains on the

poor. This preliminary study includes a tourism market screening, a value chain analysis

of relevant tourism value chains, an assessment of potential partners and an analysis of the

situation of beneficiaries, including gender and environmental issues. The opportunity

study will be also the baseline for future progress monitoring.

Linking the poor with existing tourism hotspots and strong partners

It is the experience of TPRP that entirely new tourism locations and attractions and the

corresponding management capabilities of the local operators cannot be built in a few

years. TPRP therefore works in existing tourism locations and links up the poor with

strong partners including experienced private sector operators. Through a sufficiently

large and diverse tourism market, it can be guaranteed that a sizeable number of poor

producers can be integrated into market-led activities that will go on after the project has

ended. This approach ultimately leads to a higher sustainability of the projects, in terms of

economic viability and appropriation of tourism management know-how.

Working with responsible businesses and committed partners

Since the tourism sector is at times characterised by unfair and unsustainable business

practices, it is important to work with partners that share the general values and objectives

of TPRP. The programme will in particular address the booming markets of responsible

tourism and trade, such as fair trade or socially and environmentally certified offers.

While some cooperation with “traditional” tourism operators will be unavoidable, the

growth of responsible tourism markets gives growing potential for integrating the poor in

sustainable value chains. In working with committed partners, the chance of diverging

objectives and unfair business relations will be diminished.

Reliance on a network of partners

Integrating poor communities into tourism value chains needs a wide range of different

support services. No single organisation can offer all necessary ingredients, so

communities have to be supported by a network of institutions, such as responsible tour

and hotel operators, tourism schools, NGOs, tourism promotion institutions, BDS

providers and the like. The network will also help to mutually compensate for eventual

weaknesses of individual partners. Managing such networks can be challenging, thus

TPRP tries to work with local project coordinators to solve this problem.

Keep it flexible, but results oriented



The risk landscape can change drastically during the period of a project, especially in

tourism which is affected by a large number of external and internal risk factors and cuts

over several economic sectors and affects social and environmental foundations of

communities. To adjust in time to changing circumstances, TPRP prefers a flexible

project management approach that allows revisions of inputs, activities and outputs while

keeping committed to the final results of the project. Parts of this approach are a strong

localisation of projects, which is unavoidable in tourism-related project that are location

based. In the rare case of problems that will make it impossible to reach project

objectives, TPRP will structure its activities in a way that allow a timely exit.

Building institutional capacities

TPRP will work on the organisational memory of partner institutions. This includes

supporting the documentation of important routines in manuals and guidebooks, but also

working on the technical and organisational capacity of partners through targeted

consultancy (here ITCs TSI Strengthening Section can be of great help). This may also

include looking at the financial sustainability of institutions and helping them to gain new

clients and public recognition in the field of responsible tourism promotion. Institutional

capacity building in particular addresses public and private partners that are prone to

facilitate the future replication of the project approach in other sectors or regions.



Annex IV Logical Framework

Programme design for TPRP has been undertaken following the Results-based

Management (RBM) approach. A logical framework has been produced for the whole

programme and will guide the impact measurement and implementation of the

programme. The logical framework relates specific indicators to the outputs and

immediate objectives mentioned in the logical structure above. An outcome-based budget

can be also derived from the logframe (see budget in the next chapter).

The diagram on the next page gives an overview of the logic of TPRP as a work

breakdown structure. It outlines the programmed outputs for achieving the three

immediate objectives. The presented intervention logic has to be understood as an abstract

plan. Indeed, the selected destinations may not require all outputs and activities described

below. Rather, the intervention will be done on a case-by-case basis, as it is dependent on

the needs and existing infrastructure of the selected developing countries, as established

by the opportunity study.

Development objective:

Poor women’s and men’s income in three tourist destinations has increased through

active entrepreneurial participation in tourism value chains.

Immediate Objective 1:

The demand from hotels and tour operators in the selected destinations for products

and services that can be supplied locally by poor communities has increased

substantially.

Objectively Verifiable Indicators

30% increase in local sourcing value (net of changes in their total sourcing value)

by the selected hotel and tour operator clusters over the project period.

Output 1.1

Procurement patterns and policies are analysed, as well as obstacles to and opportunities

for pro-poor sourcing are identified.

Initially, it is important to assess the existing opportunities for further local sourcing and

establish whether local policies facilitate the supply to tourism operators. A value chain

analysis will be undertaken in the context of the opportunity study, also determining the

partners, the products and the beneficiaries in each country.


Research report including value chain analyses prepared, published and

disseminated to tourism community.

Procurement processes documented and areas for improvement identified.

Activities

1.1.1 Survey of the supply chains and procurement patterns of hotels, restaurants and

tour operators

1.1.2 Identification of demand for locally produced products and services



1.1.3 Selection of products and services to be sourced locally and identification of

potential beneficiaries and partners

Output 1.2

Committed hotel and tour operators are selected.

One way to assess the commitment of tourism operators is to review their track record, on

websites, brochures and catalogues. This needs to be crosschecked with civil society and

local policymakers. Commitment can materialize in different ways such as the willingness

to provide free of charge meeting or showroom space or catering to local producer

associations. The selection of committed hotels is likely to be facilitated by the existence

of a hotel association with which ITC can establish strong ties. In effect, these

associations already exist in one form or another in the selected countries.


MoUs with three or more larger hotel and tour operators and/or a higher number

of smaller tourism companies signed.

Focal persons designated in each hotel/tour operator.

Activities

1.2.1 Collection of information from websites and catalogues as well as interviews with

NGOs or tourism administrators about committed tourism operators

1.2.2 Signature of partnership agreements to increase local sourcing with committed

operators

Output 1.3

Awareness of the opportunity to source quality local products and services is increased.

This awareness will further reinforce the opportunities for poor community producers to

sell their products and services to tourism operators.


Repeated surveys of hotels and tour operators show an increased awareness for

local sourcing.

Dedicated information portals online and market news services published.

Activities

1.3.1 Workshop for agriculture, textiles, and services associations and restaurant chefs

and operators decision-makers to inform these groups of the possibilities to source

products and services locally

1.3.2 Capacity building of selected beneficiaries on market intelligence and information

dissemination for local sourcing

1.3.3 Creation of a dedicated information portal on local sourcing for each of the

selected countries, including an online directory of producers and service

providers, a web library, market news, customized alerts, etc.

1.3.4 Production of information material on local markets: a print directory; market

intelligence briefs focusing on the demand side for each identified sector both in

print and online provided by the ITC‟s Market News Service (MNS).



1.3.5 Promotion of the portal and market intelligence services, via the portal or printed,

through a launching event, disseminating the information via multiple channels

(e.g. portal, print, online newsletter, email, RSS).

Output 1.4 Tailor-made local sourcing strategies for each committed buyer are developed and

adopted.

These strategies will determine to what extent each buyer can purchase locally, while

taking into account international tourists‟ tastes and requirements.


Strategies available based on ITC diagnostic tools and good practices on

procurement and supply chain management.

Commitment of participating companies to implement at least 50% of suggested

actions and ongoing implementation of strategies.

Activities

1.4.1 Strategy development with each partner to identify what and how they can source

locally

1.4.2 Regular monitoring of the effectiveness of the strategy implementation


The supply capacity of poor community producers and their intermediaries in view

of tourism industry market requirements is strengthened.

This objective aims to help poor producers match the demand for tourism products and

services


100% increase in sales volume of project beneficiaries to hotel and tour operators

over the project period.

Repeated surveys of hotel and tour operators show an increased appreciation of

the local products and service offer (1.5 points up on a 5-point scale)

30% of beneficiaries reinvest profit back into their business.

Increase in number of tourists making online purchases of local goods.

Output 2.1 Producer survey including selection of important intermediaries in selected products and

service groups undertaken and capacity building needs prioritized.


Producer survey report ready including priority capacity building needs.

List of key intermediaries selected.

Activities

2.1.1 Preparation of a survey of community producers in the selected products and

services markets



2.1.2 Identification of the key intermediaries

2.1.3 Selection of producer groups that have the will and basic capacity to produce

Output 2.2 Product or service design and offer adapted to market requirements (e.g. product

functionality, packaging, quality, service flexibility, marketing and branding).

Ensuring that the products and services offered by the local communities meet the

requirements of the local tourism industry will be instrumental in facilitating local

sourcing.


Number of adapted or improved products or services (in terms of quality,

functionality, design, packaging, branding)

60% of tourism operators perceive improved product and service quality by the

end of the project duration.

Activities

2.2.1. Interviews with responsible supply managers as well as other important

stakeholders on necessary requirements and possible improvements

2.2.2. Specific technical assistance and training measures to help poor producers and

service providers meet market requirements

2.2.3. Training of selected producers and service providers

Output 2.3

The production costs of local producers are reduced (e.g. through adapted tools, change in

sourcing options or organization of the work process, or even an improvement in the

quality control processes and supply chain management).

Efficient supply processes will lead to an increase in benefits for poor communities.


15% reduction in production costs for the key products and services supported.

Activities

2.3.1 Analysis of production patterns, documenting cost and possible improvements of

all steps in the production process

2.3.2 Development of a technical assistance plan to improve production processes and

introduce quality management techniques

2.3.3 Implementation of the technical assistance plan with the beneficiaries

Output 2.4

Marketing skills and management capacity of producers and intermediaries are improved

(e.g. price, packaging, presentation, logistics and inventory management).

Areas for improvement are for example better costing and pricing skills, more persuasive

advertisement, and increased emphasis on customer relationship management (CRM).


70% of targeted producers can calculate their profit margins



50% of producers or service providers report an increase in the total number of

customers and repeat customers.

Activities

2.4.1 Analysis of producers‟ sales and production capacities to identify the areas for

possible improvement

2.4.2 Advise and training for producers and service providers

2.4.3 Training of intermediaries to implement capacity building measures

Output 2.5

Small-scale producers and service providers have access to finance through local financial

institutions.

This will enable poor communities to borrow for productive investments, and thus their

ability to grow through entrepreneurial activities in the medium to long term.


Adjustments in the credit assessment rules of local financial institutions.

Growth in the number and volume of loans granted to the target group over the

project period.

Activities

2.5.1. Assessment of existing financial institutions and their credit conditions

2.5.2. Development of assistance programmes for small scale producers and service

providers in preparing bankable proposals

2.5.3. Training of trainers in financial management to implement assistance programmes

Output 2.6

Local institutions have the capacity to design and deliver business development projects

for small-scale producers in the tourism sector.

Strengthening institutional mechanisms is a key factor in the sustainability and up-scaling

of inclusive tourism interventions.


Number of inclusive tourism projects initiated by local institutions

Number of local initiatives and businesses supported by local institutions

The degree of active participation in ITC capacity building measures and project

implementation

Activities

2.6.1 Mapping of institutions offering enterprise or export development services to

tourism related enterprises (this is normally achieved through the opportunity

studies prior to project implementation)

2.6.2 Advice to local institutions on various techniques to promote local tourism

businesses

2.6.3 Capacity building to improve the operational excellence of institutions offering

business development services to tourism related businesses




The transaction costs between poor community producers and hotels and

restaurants have been reduced.


Improved supply chain management results in a 10% cost reduction of the final

products or alternatively a 15% increase in the profit margin of producers (along

with stable sales prices).

Lead time for procurement has decreased as a result of improved process

management.

Output 3.1

Supply and value chains are analyzed and obstacles to poor producers identified in

parallel with output 1.1.

It is important to examine current transaction modes and obstacles for the poor

communities in order to establish how transaction costs can be reduced. The supply and

value chain analysis will also include a transaction cost breakdown for the buyers and

sellers side.


Value chain analysis report ready.

Business support services in the area of logistics and transport are mapped.

Activities

3.1.1 Transaction cost analysis through a value chain analysis

3.1.2 Elaboration of cost reduction strategies and action plan in consultation with

relevant stakeholders

3.1.3 Implementation of cost reduction strategies and action plans

Output 3.2.

Solutions to facilitate market access, both physical and regulatory, for poor small-scale

producers are initiated.


Number of buyers procurement rules changed in favour of small scale producers

Facilitation of physical and regulatory market access by local government or other

support institutions

Reduction in the number of non-value-adding intermediaries

Activities

3.2.1 To undertake a survey of all existing barriers to market access for poor producers

and service providers

3.2.2 To elaborate a strategic plan to eliminate the most important barriers

3.2.3 To implement the plan in collaboration with respective stakeholders

3.2.4 To assist local producers and intermediaries in issues relating to customs, security,

transport and logistics



Output 3.3

A web-based service to promote selected local products and services is created.

This service will enable local producers to promote their products and services online,

thus creating additional opportunities for sales and revenues.


Web-based service, including e-payment functionality, is ready and creates sales.

Number of paying customers using the web-services.

Activities

3.3.1. Development and testing of web-service

3.3.2. Introduction of e-payment functionality on merchant website

3.3.3. Training of stakeholders to manage web-sales and maintain service

Output 3.4

A locally applicable certification scheme for inclusive tourism is in place and being used.

This scheme will set quality standards and support marketing for responsible hotel and

tour operators and give orientation to customers.


Number of hotels and tour operators participating in scheme.

Growth rate of certified products and services procured by hotel groups and tour

operators

Activities

1.4.1. Identification of existing certification schemes that can be locally applied

1.4.2. Preparation of the certification audits

1.4.3. Assistance in regular compliance with the certification scheme



Logical Framework

Project Structure-Hierarchy of Objectives

Objectively Verifiable Indicators (OVI) Means of Verification (MOV) Important Assumptions

Development objective: Poor women’s and men’s income has increased in three tourist destinations through active entrepreneurial participation in tourism value chains.

80% increase in the household income of direct project beneficiaries (producers/services suppliers to the tourism industry) over the project period .

40% increase in the number of producers/services providers selling to the selected tourism clusters .

Socioeconomic household survey for target beneficiaries (baseline and post intervention) using TPRP’s impact measurement tool

Baseline and final value chain assessment

Local tourism industry remains stable or is growing Natural and business environment for agriculture, crafts and services production/ supply does not deteriorate

Immediate Objective 1: The demand from hotels and tour operators in the selected destinations for products and services that can be supplied locally by poor communities has increased substantially.

30% increase in local sourcing value (net of changes in their total sourcing value) by the selected hotel and tour operator clusters over the project period.

Tourism operators survey to determine sourcing decisions (pre- and post-intervention), including local product/services availability awareness and product/services perception

Procurement ledgers of selected hotels/tour operator partners

Consultation of menus and catalogues

Local producers/service providers can produce at comparable costs and/or the hotel/tour operators’ demand is not highly price sensitive

Immediate Objective 2: The supply capacity of poor community producers and their intermediaries in view of tourism industry market requirements is strengthened.

100% increase in sales volume of project beneficiaries to hotel and tour operators over the project period.

Repeated surveys of hotel and tour operators show an increased appreciation of the local products and service offer (1.5 points up on a 5-point scale).

30% of beneficiaries reinvest profit back into their business.

Increase in number of tourists making online purchases of local goods.

Producers’ sales and production capacity/ cost survey ex ante/ex post

Tourism operators survey to determine sourcing decisions (pre and post intervention), including local product/services availability awareness and product/services perception

Baseline on access to finance for local producers

The socio-political, natural and economic environment is stable or improving Local tourism industry remains stable or is growing Improved products/services become more attractive not only to hotel/tour operators, but also to other buyers Local bank or regional bank is participating in the programme

Immediate Objective 3: The transaction costs between poor community producers and hotels and restaurants have been reduced.

Improved supply chain management results in a 10% cost reduction of the final products or alternatively a 15% increase in the profit margin of producers (along with stable sales prices).

Lead time for procurement has decreased as a result of improved process management.

Producers’ sales and production capacity/cost survey


The socio-political and natural environment, and hotel/tour operator demand remains stable or is improving



Project Structure-Hierarchy of

Objectives Objectively Verifiable Indicators (OVI) Means of Verification (MOV) Important Assumptions

Immediate Objective 1

Output 1.1: Procurement patterns and policies are analysed, as well as obstacles to and opportunities for pro-poor sourcing are identified.

Research report including value chain analysis prepared, published and disseminated to tourism community.

Procurement processes documented and areas for improvement identified.

Project documents Little or no collusion between tourism operators and their current suppliers

Output 1.2: Committed hotel and tour operators are selected

MOUs with three or more larger hotel and tour operators and/or a higher number of smaller tourism companies signed.

Focal persons designated in each hotel/tour operator.

Project documents

Interviews with focal points

Hotels and tour operators can choose their local strategy

Output 1.3: Awareness of the opportunity to source quality local products and services is increased.

Repeated surveys of hotels and tour operators show an increased awareness for local sourcing.

Dedicated information portals online and market news services published.

Tourism operators survey to determine sourcing decisions (pre and post intervention), including local product/services availability awareness and product/services perception

Local producers/service providers can produce at comparable costs and/or the hotel/tour operators’ demand is not highly price-sensitive.

Output 1.4: Tailor-made local sourcing strategies for each committed buyer are developed and adopted.

Strategies available based on ITC diagnostic tools and good practices on procurement and supply chain management.

Commitment of participating companies to implement at least 50% of suggested actions and ongoing implementation of strategies.

Project documents

Interviews with hotel/tour operator focal points

Interviews with other stakeholders

No change in management or ownership of the hotel / tour operator project partners Financial health of the project partners Responsible sourcing remains a trend


Output 2.1: Producer survey including selection of important intermediaries in selected products and services groups undertaken and capacity building needs prioritized.

Producer survey report ready including priority capacity building needs.

List of key intermediaries selected.

Project documents Producers/local organisations willing to provide sufficient information and interested in capacity building

Output 2.2: Product or service design and offer adapted to market requirements (e.g. product functionality, packaging, quality, service flexibility, marketing and branding).

Number of adapted or improved products or services (in terms of quality, functionality, design, packaging, branding).

60% of tourism operators perceive improved product and service quality by the end of the project duration.

Producer’s sales and production capacity/cost survey ex-ante/ex-post

Interviews with hotel/tour operator focal points

Interviews with other stakeholders

Products/services can be significantly improved without cost increases that exceed possible sales revenues





Output 2.3: The production costs of local producers are reduced (e.g. through adapted tools, change in sourcing options or organization of the work process, or even an improvement in the quality control processes and supply chain management).

15% reduction in production costs for the key products and services supported.

Producers’ sales and production capacity/cost survey ex-ante/ex-post

Documents on product costing, as per costing and pricing training

Reduced production costs are not balanced out by changes in the business environment (e.g. increase in input costs)

Output 2.4: Marketing skills and management capacity of producers and intermediaries are improved (e.g. price, packaging, presentation, logistics and inventory management).

70% of targeted producers can calculate their profit margins.

50% of producers or service providers report an increase in the total number of customers and repeat customers.

Producers’ sales and production capacity/cost survey ex ante/ex post

Interviews with buyers

Little or no collusion between tourism operators and their current suppliers Effect of improved business/marketing skills is not balanced out by negative developments in the business environment, (e.g. regarding market access; external competition)

Output 2.5: Small-scale producers and service providers have access to finance through local financial institutions.

Adjustments in the credit assessment rules of local financial institutions.

Growth in the number and volume of loans granted to the target group over the project period.

Producer’s sales and production capacity/cost survey ex-ante/ex-post

Interviews with local financial institutions

Extra financial resources are used for business investments

Output 2.6: Local institutions have the capacity to design and deliver business development projects for small scale producers in the tourism sector.

Number of inclusive tourism projects initiated by local institutions.

Number of local initiatives and businesses supported by local institutions.

The degree of active participation in ITC capacity building measures and project implementation.

Report from local institutions as a condition to training offered

Interviews with tourism businesses

Local support institutions exist and are willing to assist in development issues






Output 3.1: Supply and value chains are analyzed and obstacles to poor producers identified in parallel with output 1.1.

Value chain analysis report ready.

Business support services in the area of logistics and transport are mapped.

Project documents No vested interest groups that can prevent improvements in market access

Output 3.2: Solutions to facilitate market access, both physical and regulatory, for poor small-scale producers are initiated.

No. of buyers procurement rules changed in favour of small scale producers.

Facilitation of physical and regulatory market access by local government or other support institutions.

Reduction in the number of non-value-adding intermediaries.


Interviews with poor producers/service providers

Interviews with hotel/tour operators

Interviews with government representatives

Ability of producers to take advantage of improvements in market access (e.g. credit availability)

Output 3.3: A web-based service to promote selected local products and services is created.

Web-based service, including e-payment functionality, is ready and creates sales.

Number of paying customers using the web-services.

Verification and testing of the web tool

Verification of number of users of web tool

Tourists can access their favourite products on the web and buy from a distance

Output 3.4 : A locally applicable certification scheme for inclusive tourism is in place and being used.

Number of hotels and tour operators participating in scheme.

Growth rate of certified products and services procured by hotel groups and tour operators.

Stakeholder interviews

Documents of the certifications organisation

Lack of corruption in the application of the scheme



Annex V Information on complementing programmes

Institution Existing relevant tourism-led type programmes

IGOs/UN agencies World Bank The World Bank‟s mission to reduce poverty by means of achieving the sustainable

use of natural resources and managing them effectively to minimize pollution,

degradation, and risks. Work is guided by the following principles: focus on the

positive linkages between poverty reduction and environmental protection; address the

vulnerability and adaptation needs of developing countries; stimulate markets for

environmental public goods. Many of the World Bank‟s initiatives include tourism-

related components.

International Finance

Corporation (IFC)

IFC promotes the growth of SMEs in developing countries, strengthens financial

markets by investing in financial institutions and through advisory work, enabling

small firms to obtain equipment and working capital. TA projects for SMEs

complement their investment work by strengthening local suppliers and supporting

community development projects. They work to create a better business environment

for small businesses by improving the legal and regulatory framework. The IFC

increasingly supports tourism sector initiatives of a TPR type.

United Nations World

Tourism Organization

(UNWTO)

The current work of UNWTO puts emphasis on the sustainable development of

tourism, covering all segments of tourism and all types of destinations, while UNWTO

technical cooperation missions devote particular attention to enhance the contribution

of tourism to poverty alleviation. The Organization aims, in the first place, to improve

the capacity of national tourism administrations and local authorities in developing

countries to devise and implement poverty reduction policies, plans and projects,

through the development of sustainable forms of tourism.

International Labour

Organization (ILO)

The International Labour Organization (ILO) is devoted to advancing opportunities for

women and men to obtain decent and productive work in conditions of freedom,

equity, security and human dignity. A few of the ILO‟s initiatives include tourism-

related components, whereby it works towards improving the competitiveness and

quality of the tourism sector by supporting vocational training projects, using local

labour to protect and maintain environment and working with development

organizations on pro-poor job creation

Inter-American

Development Bank

(IDB)

The IDB provides solutions to development challenges in countries in Latin

America and the Caribbean. It also offers research, advice and technical assistance

to improve key areas like education, poverty reduction and agriculture. The Bank

considers requests for loans and technical cooperation to finance studies and

investment projects contributing to the development of tourism in the member

country. In the tourism sector, the bank is involved in infrastructure works, basic

facilities including hotels, and development of cultural tourist attractions and loans.

Institution Existing relevant tourism-led type programmes

Development agencies SNV Sustainable tourism is an SNV practice area. Within tourism, SNV works on policy

and strategy development; business development services; community mobilisation;

environmental conservation. EPRP and SNV are currently working together in

Vietnam, where SNV plays a vital role in disseminating best-practice CBT

experiences throughout the country. Collaboration also exists with SNV in

Mozambique and is most promising elsewhere like in Central America and Cambodia.

GTZ Tourism is a top priority for GTZ, which has some 50 projects with a tourism

component, or the potential to promote tourism. Their key thematic areas in tourism

are environmental protection and natural resource conservation; economic

development and poverty reduction; and ecological and social standards.



COMPARISON OF TOURISM ACTIVITIES CONDUCTED BY RELEVANT INTERNATIONAL ORGANISATIONS

23 The UNWTO strengthen value chains but does not create linkages 24 ITC‟s infrastructure works are small, especially compared to those of the World Bank 25 Although ITC does not directly provide microfinance services, it creates linkages between the poor producers and local microfinance partners or banks who will then offer these services 26 IDB total includes industry, mining and tourism spending SNV whole budget including all other industry, received from Dutch ministry of Foreign Affairs 27 SNV whole budget including all other industry, received from Dutch ministry of Foreign Affairs

Services Provided ITC/TPRP ILO WB IFC IDB SNV GTZ UNWTO

Opportunity/market study

Advisory Services/Technical Assistance

Policy and Strategy Development

Strengthen value chain/create linkages 23

Regional Expansions

Improving sector coordination

Infrastructure Works 24

Community Mobilization

Capacity Building/Training

Strengthen financial market through advisory work

Investing in financial institutions

Microfinance 25

Loans

Grants

Physical Investments to improve tourist facilities

Provide guidelines for sustainable development

Export Market Knowledge

Sector Knowledge

Annual Resources (in million) NA $1.54

3 bn NA $204

26

€

96.527



Annex VI Value Chains Benefiting from Tourism

SUPPLY

Sectors Tourist ExpenditureTourist Enterprises

ExpenditureFinal Beneficiaries

Accomodation Salaries and wages • Butchers

Agriculture • Architects

Tips and courtesies • Chambermaids

Fishing

Food Taxes

Food processing • Assistants

Commissions • Administration

• Bank employees

Beverage • Ticket sellers

• Carpenters

Crafts • Car rentals

• Cinemas

Entertainment • Clinics

• Dealerships

Clothing • Confectioners

• Accountants

• Cooks

Construction • Dentists

• Agents

• Housekeepers

Maintenance

Photography

• Engineers

• Automobile Factories

• Farmers

Transport • Government

• Greengrocers

Licenses • Charity institutions

• Teaching institutions

Local transport Insurance's prizes • Gardeners

• Laundromats

Rents and Leasing • Shops

• Department stores

• Furniture shops

• Gift shops

• Clothes shops

Entertainment Other taxes • Doctors

• Transport

Micro-finance Services and utilities • Garages

• Cultural organizations

• Bakers

• Painters

• Security guards

• Gas stations

• Advertising Agencies

• Chemists

• Resorts

• Restaurants

• Insurers

• Beach services

• Workers of the industry

TOURISM

• Craftwork (shopkeepers

and craftsmen)

• Public services concetion

• Electricians and plumbers

• Wholesale establishments

Attractions and

copyright

Administrative and

general expenses

Professional services

Food and Beverages

Energy, water and gas

Transport:

Motorcycles

Taxis

Bus

Boat

Plane

Utilities:

Internet

Electricity

Phone

• Publishers and printing

houses

TOURISM MULTIPLYING EFFECT IN THE LOCAL ECONOMY

DEMAND

Furniture

manufacturing

IMPORT

SUBSTITUTION

Material and supplies

Interest and

amortizations of loans

Remuneration and

replacement of the

capital

Services:

Hotels

Beauty

Massage

Security

Gifts and souvenirs

Personal care,medicine

and cosmetics.

Tourist walks and extra

activities

Infrastructure:

Electricity grid

Telecommunications

Roads

Bridges

Waterways

Ports

Airports

Advertising, publicity

and promotion



Annex VII Tourism Industry in Selected Countries

Overview of Tourism in Senegal

PROFILE OF TOURISM

Senegal‟s tourism industry is one of the nation‟s most dynamic sectors, coming in second place

after the fishing industry but before phosphates and groundnuts. Indeed, tourism has been

identified as a priority sector in national reports such as DTIS, SCA and PRSP II. National

figures suggest that tourism in Senegal has grown significantly between 1995 and 2005, from

280‟000 to 387‟000 international visitors entering the country. Figures show that there were

389‟000 tourist arrivals in 2000 and 387‟000 arrivals in 2005 (UN Data). On average, foreign

tourists stayed in Senegal for 3 - 4 days in 2006, a figure which is relatively low.

The considerable tourist growth between 1995 and 2000 is mostly due to the demand of the

French market, who account for 50% of all tourists in Senegal. This can be explained by old

colonial ties as well as the common French language. 25% of tourism in Senegal consists of

regional tourism from other African nations. Thus, the global economic slowdown is likely to

affect the tourism industry in the coming years.

ROLE OF TOURISM IN THE ECONOMY

The tourism industry, which has created more employment opportunities and developed tourist

related industry, is expected to contribute directly 3.2% of GDP in 2008, or XOF 185.4 billion

(US$ 411.0 million). However according to the WTTC (World Travel and Tourism Council, the

tourism economic contribution (as a % of total) is forecasted to decrease from 7.6% in 2008 to

7.2% in 2018.

The effect of a growing tourism industry implies the creation of new jobs in the services sector.

In 2007, tourism in Senegal generated 40,000 direct and 100,000 indirect jobs and contributed

US$533 million to Senegal‟s national GDP. The travel and tourism economy employment is

estimated at 162‟000 jobs in 2008, a figure which amounts to 6.3% of total employment

(WTTC). Forecasts estimate that by 2018, employment linked to tourism will have increased to

197‟000.

The construction industry has also been booming with a 15% growth in 2006, and a 10.7%

growth in 2007 (AFDB). This can be explained by the dynamic real estate sector as well as the

improvement in transportation infrastructure in the country, both of which are linked to tourism.

Visitor exports account for a considerable share in the tourism industry‟s contribution to GDP. In

fact, of Senegal‟s total exports, tourism is forecasted to generate 18.2% in 2008, or XOF 241.3

billion.

TOURISM FACILITIES

Despite being the number one tourist destination in West Africa, with its 700 km of sandy beaches and welcoming

population, the government has much work to do on its tourism industry. Indeed, Senegalese authorities aim to

increase the infrastructure capacity and raise quality standards in order to double tourism by 2010 (Euromonitor). In

order to achieve this goal, the government introduced new regulations to enable the tourism industry to work at “a

well defined lawful agenda” (Euromonitor). In addition, the Senegalese government is working on developing

ecotourism services, including spas and cultural tours.



Accommodation in Senegal varies considerably, from quality hotels and resorts, to smaller poor quality

accommodation with inadequate infrastructure. This disparity can be explained by years of inappropriate hospitality

policy, leading to shortages of investment. Nevertheless, given the government‟s emphasis on improving the

tourism industry, hotels should focus on increasing their capacity and improving their quality standards.

NATIONAL STRATEGIES AND INTERNATIONAL COOPERATION IN TOURISM

To develop its travel infrastructures, the government of Senegal has, with the assistance of various European

agencies, begun building and upgrading roads throughout the nation. Undeniably, poor road infrastructure is a

problem at the national level for tourism, as it impedes for instance the development of the car rental industry in the

country. The government‟s objective is to reinstall 90% of the roads in good condition, compared to the current

60%.

Another key challenge for Senegal in terms of transportation is the expensive nature of plane tickets and the lack of

flying routes for European travellers. This issue is of even more importance, since Guinea has regular charter flights.

To resolve this problem, the Senegalese government has chosen to build a new airport, 40km from the capital.

INTERNATIONAL AGENCIES IN SENEGAL

Numerous international agencies have been involved in the development of Senegal. The IFC‟s involvement in

Senegal focuses on developing its financial sector, strengthening the investment climate, and investing in industries

where domestic demand is growing. The IFC‟s latest project involves a Risk Sharing Facility, with a local currency

equivalent of $2 million. The aim of this program is to help increase the capacity of Ecobank Senegal to reach out to

women entrepreneurs, while simultaneously providing businesswomen with financial literacy and management

skills.

Both the World Bank and the African Development Bank are involved in a variety of projects. The World Bank has

also been involved in a wide range of projects including, sustainable management of fish resources, agribusiness

development, energy, education, sanitation, HIV/AIDS prevention, credit adjustment, etc. The AFDB, through the

African Development Fund, has also helped Senegal to launch its rural water supply and sanitation initiative.

The UNWTO has undertaken a study to determine the industry‟s impact on Senegal‟s economy and developed a

plan of action compatible with the government‟s economic and financial policy.

ITC ACTIVITIES

As an initiative in the development of the tourism industry in Senegal, ITC, and more specifically EPRP, started a

community-based tourism project in Rao and Saint-Louis in the north of Senegal in 2006. The aim of the

programme was to create a sustainable tourism industry, generating employment and income through the sale of

products and services to visitors and tour operators, hotels and restaurants.

Other ITC projects in Senegal have included an integrated country programme developed by ITC, which also

focuses on the tourism industry, building on EPRP‟s experience in Saint-Louis. ITC has also been involved in a

trade promotion and export development project so as to enhance the national capacity of Senegal‟s private sector to

conduct international trade. The project focused on institutional support, enterprise competitiveness and the creation

of export opportunities, in a bid to improve Senegal‟s national tourism strategy.

It is worth noting that ITC has worked with the Canadian Trade Facilitation Office (TFOC) in a joint Programme for

building African Capacity for Trade (PACT), which focuses on strengthening institutional support infrastructure,

enhancing enterprise competitiveness, and promoting concrete business opportunities for SMEs. Also, ITC has

collaborated with WTO and UNCTAD to help African nations benefit from the new multilateral trading system,

through JITAP, a programme which offers technical assistance and focuses mainly on capacity building. In addition,

ITC has been involved in the implementation of enterprise competitiveness projects, such as ACCESS, which

supports African businesswomen in international trade.



Overview of Tourism in Mozambique PROFILE OF TOURISM

Although, there is no “new” destination, Mozambique is a travel destination that has recently been the centre of much

attention (Mandy, 200828

). While southern Africans have been travelling to Mozambique for decades, its tourism industry

has only recently become known as an exotic destination for European and North American travellers.

National figures suggest that tourism in Mozambique has been growing, with an estimated 1‟259‟000 tourists entering the

country in 2007. This represents an increase by 21% from 2006. Also, there has been an increase in accommodation

capacity by 8.2% in the same time period, from 15‟740 rooms in 2006 to 17‟035 in 2007. Still, on average, foreign tourists

stay in Mozambique 3 days and spend on average around US$ 60 per day, excluding accommodation (Africa News,

200829

). Using data from the World Economic Forum (2007), one can see that Mozambique has the lowest average spent

per tourist compared to other nations in Sub-Saharan Africa30

.

The segmentation of tourism between the different sources of demand should be accounted for. The largest share of gross

tourism demand, 42%, is derived from resident households, and only 28% from international visitors (Jones and Ibrahimo,

2007). Even then, the international tourist market is quite heterogeneous, with business travellers representing 40% of

tourism, and tourists from neighbouring countries (self-drive market) accounting for a further 28%. Approximately 71% of

leisure tourists come from South Africa. Research shows that only a small percentage of leisure tourists come from Europe

(mainly the UK and Portugal), North America and East Asia.


The key message is that tourism can be seen as a sector with considerable growth potential. Indeed, tourism has been

identified as a priority sector in national reports such as DTIS, and UNDAF. As a result of the expansion of the industry,

37,000 jobs (2008) were created, half of which go to women (Macauhub, 200931

). Tourism, also contributed to around

1.5% of the GDP, as well as new tourist infrastructures, parks and conservation areas. In addition, it has stimulated other

sectors such as construction.

With the support of the World Bank as well as USAID, Mozambique‟s government stated that the revenues from

international visitors reached US$ 163 million in 2008, a US$ 19 million increase from 2007 (US$ 144 million)

(Macauhub, 2009). Total tourist demand is worth, at present, US$ 330 million, a figure equal to 2.9% of gross demand in

the economy in 2003.

Foreign direct investment for infrastructure, which directly benefits tourism, is on the rise in Mozambique, growing by

34% in 2005. The main investors were South Africans, accounting for over 50% of total investment, and the United

Kingdom (Euromonitor, 200732

). In percentage terms, China and Zimbabwe were the nations that increased most their

tourism-related investment in Mozambique. Statistics suggest in 2006 alone, over US$ 200 million were invested in the

tourism industry (Jones and Ibrahimo, 2008).

TOURISM FACILITIES

The Ministry of tourism (MITUR) also estimates that hotel capacity have increased by over 50% between 2000 and 2005.

It has to be noted, however, that the majority of the available accommodation capacity is in Maputo, Mozambique‟s

capital. Still, despite the low growth in the total number of hotels, a shift is expected from smaller outlets to larger and

upmarket ones (Euromonitor, 2007). The number of 3 star hotels and above, are expected to increase, while the smaller

types of accommodation are forecasted to decrease.

28

Mandy, S. (2008) « Eyes rights towards Mozambique » WTM Preview, Available at:

http://macua.blogs.com/moambique_para_todos/files/wtm2425_ttn_nov8.pdf 29

Africa News (2008), “Mozambique expects 400,000 tourists”, Available at: http://www.africanews.com/site/list_messages/22174 30

Jones, S. and H. Ibrahimo (2007) “ The economic distribution of Tourism in Mozambique: Present and Future” Available at;

http://www.iese.ac.mz/lib/publication/Jones,Sam%20&%20Ibrahimo,Hanifa_EconomicContribution.pdf 31

Macauhub (2009) « Mozambique : Tourism Sector in Major expansion », Available at:

http://www.macauhub.com.mo/en/news.php?ID=6683 32

Euromonitor (2007) « Travel and Tourism in Mozambique » Available at :

http://www.euromonitor.com/Travel_And_Tourism_in_Mozambique




Since the end of the civil war, Mozambique has seen very strong economic growth largely due to post-conflict

reconstruction (CIA Factbook33

). However, although there has been significant development of the country‟s tourism

industry, high crime rates and expensive airfares are dissuading tourists from choosing Mozambique as their travel

destination. In order to increase investments in infrastructure, the government privatized part of the transport sector in

Mozambique. The country‟s authorities foresee as a result a significant improvement in the main roads, rail, bridges,

airports as well as the national airline. In addition to privatization as a means to economic liberalization, Mozambique has

reformed its tax system and asserted its commitment to international integration (Euromonitor, 2007).

The national strategy is to promote high-value, low volume tourism. However, this does not imply that business can

continue as usual. Owing to a number of weaknesses, such as a low average spending per tourist, it is necessary to re-

consider the entire tourism value chain, taking into consideration tourism sub-sectors such as tours and direct purchases in

the local economy.

According to the World Economic Forum, Mozambique is placed 119th

out of 124 places in terms of tourism

competitiveness, lagging behind neighbouring countries such as Tanzania (80th

) and Zambia (94th

) (Jones and Ibrahimo,

2007). Among the reasons for Mozambique‟s ranking are the prevalence of malaria, the low quality of human resources,

and the low development of its natural and cultural resources.

Having realized the importance of tourism to achieve economic development, Mozambique‟s authorities want to ensure

that they are able to take advantage of the FIFA 2010 World Cup in neighbouring South Africa through an accelerated

infrastructure building strategy in several of the nation‟s provinces (Euromonitor, 2007).

INTERNATIONAL AGENCIES IN MOZAMBIQUE

Numerous international agencies have been involved in the development of Mozambique. The IFC‟s involvement in

Mozambique focuses on providing financial and technical assistance to SMEs, helping to build the Mozambican

economy‟s “missing middle” by “targeting local firms with pre-investment net worth of US$ 50‟000 to US$ 500‟000

equivalent” (IFC Website). The IFC also approved the creation of Mozambique‟s SME initiative, a US$ 12 million

program supported by both the Swiss and the Finnish governments.

The World Bank is involved in a multitude of projects in Mozambique, including, rural distribution projects, infrastructure

investments (ex: railway project), credit, energy, education, healthcare (ex: avian flu rapid assessment and HIV/AIDS

response project), etc. The World Bank has also been involved in tourism specific projects, for instance the Tropical Forest

Conservation Act (TFCA) project that funded tourism development. Another was the PoDE project, which provided

technical learning at the firm level for SMEs, including the tourism industry, which helped Mozambican firms secure US$

58 million worth of contracts. The IMF has also been heavily involved in Mozambique‟s tax reforms, more specifically

the implementation of a value added tax.

ITC ACTIVITIES

To develop the tourism industry in Mozambique, ITC, and more specifically EPRP, started an Inclusive Tourism project in

2005. The aim of the project was to involve and integrate local entrepreneurs and communities into the tourism value

chain to improve their economic well being, and enable tourist growth.

Other ITC projects in Mozambique include providing sector specific market intelligence to TSIs through ITCs MNS so as

to strengthen the international competitiveness of enterprises and develop trade capacity of service providers. ITC was also

involved in a project, the service export net programme, aimed at supporting national efforts to design and implement

trade development strategies and improve export performance in key sectors.

In addition, ITC has worked with the Canadian Trade Facilitation Office (TFOC) in a joint programme named PACT,

which was aimed at enhancing the capacity of Africa‟s private sector to conduct international trade (2007). More recently,

the ITC has collaborated with WTO and UNCTAD on JITAP, a programme that offers technical assistance and focuses

mainly on capacity building. In addition, ITC has been involved in programmes including SADC, one UN initiative and an

EC/UNIDO project. ITC is also one of the implementing partners of the Joint Programme under the Spanish MDG Fund

aimed at strengthening cultural and creative industries and inclusive policies in Mozambique.

33

CIA Factbook (2008) « The World Factbook : Mozambique » Available at ; https://www.cia.gov/library/publications/the-world-

factbook/print/mz.html



Overview of Tourism in Colombia

PROFILE OF TOURISM

In the last 30 years, Colombia has worked towards developing its tourism industry so as to make Colombia a tourist

destination of choice. Alvaro Uribe, Colombia‟s current president champions this objective and has thus decided to pay

special attention to improve the nation‟s image both locally and internationally. As a result of Uribe‟s efforts, both tourist

arrivals to Colombia and domestic travel increased steadily in 2006 and 2007 (Euromonitor).

National figures suggest that tourism industry in Colombia has been growing, with an estimated 1‟195‟440 international

visitors entering the country in 2007, a 13.5% increase since 2006 when 1‟053‟348 tourists came to Colombia. In fact, the

ministry tourism‟s figures reveal that there has been a notable increase in international arrivals in Colombia since 2000,

from 557‟281 to 1‟195‟440 in 2007.

According to official statistics from the Ministry of Tourism, 22% of international tourists in 2007 came from the United

States, 16.5% or 196‟863 tourists came from Venezuela and 9.2% (110‟508) of arrivals were from Ecuador. These figures

suggest that the majority of international tourists in Colombia come from the Americas.

There are three types of foreign tourism, which can form the basis of future tourism development in Colombia: leisure

based tourism, business tourism and those visiting friends and relatives. Government statistics reveal that there has been

an increase in the leisure travellers coming to Colombia on cruise ships, from 50‟946 passengers in 2006 to 126‟890

passengers in 2007, a 149.1% increase. There has also been an increase in tourists visiting Colombian national parks, from

595‟880 in 2006 to 620‟335 in 2007.


Over the past decade, tourism has become Colombia‟s 3rd

largest export after oil and coal. Thus, the expansion of the

tourism industry has created numerous employment opportunities. In fact, the travel and tourism industry has contributed

5.9% or US$ 10‟753.3 million to Colombia‟s GDP. The tourism industry‟s contribution to GDP is expected to continue to

rise in the next decade (WTTC). In addition, real GDP growth for the tourism sector was 3.4% in 2008, and expected to

average 4.0% yearly over the coming decade.

Export earnings from international tourists and tourism goods, which make up a very important share of the industry‟s

contribution to GDP, are expected to generate 11.1% of total exports (US$ 3‟937.6 million) in 2008.

The effect of a growing tourism industry implies the creation of new jobs in the services sector. Statistics show that

tourism contributed directly and indirectly 1‟121‟000 jobs to the economy, or 5.3% of total employment. (See figure

below, WTTC).

Source: WTTC

TOURISM FACILITIES

Government statistics suggest that in 2007, 51.6% of international tourists stayed in hotels in Bogotá. In a bid to improve

tourism infrastructure outside the capital, the Colombian government is increasing its expenditure in the development of

tourism in the country, and is encouraging foreign investment. Tourism related capital investment was estimated at US$

3‟431.1 million or 7.5% of nationwide investment in 2008.



Hotel occupation in 2007 was at 57.5%, a 2% increase since 2006. The cities of Bogotá and Cartagena in the same period

registered the highest percentages of hotel occupation with 70.7% and 67.8% respectively. At the regional level, the

departments Nortede Santander and Antioquia obtained the highest occupation rates with 57.3% and 56.2% respectively.

Between 2003 and 2006, the tax exemption on services according to the law 788 of 2002, lead to the construction of 2‟485

rooms and an investment of US$ 75‟008 millions in the remodelling of 4‟877 rooms with a budget of US$ 125‟626

million.


In 2032, Colombia wants to be one of the three most competitive countries in Latin America34

, with a high level of

personal income, equivalent to an upper middle class country. Indeed, the authorities have implemented structural reforms

so as to decentralize the economy and create more competitive and export driven industries.

To improve its image internationally, Colombia has been increasingly participating in international fairs. In 2008, for

instance, it participated in 29 international fairs. One of the problems in terms of attracting tourists to Colombia are the

safety warnings issued by different governments. The government has been able to attenuate travel warnings in countries

including the United States, Germany, Japan, Switzerland and France.

So as to increase the influx of tourists in Colombia, the government is trying to decrease the price of plane tickets and

increase the frequency of international flights to Colombia. For instance, the government aims at an increase in the

frequency of flights from Spain from 21 to 49 flights weekly.

In 2005, the WTO selected Colombia to be the 2007 host of the World Tourist Organization General Assembly. This event

gave Colombia the opportunity to demonstrate to the international tourism community the infrastructure and security that

Colombia offers as a tourist destination.

Under Colombia‟s new slogan “Colombia es Pasion”, Proexport has created a new concept to develop tourism in the

country‟s coffee region. Composed of three departments, Caldas, Quindio and Risaraldas, the “coffee triangle” is aimed at

attracting local and foreign tourists to the area and allows then to experience the life of the locals.

INTERNATIONAL AGENCIES IN COLOMBIA

Numerous international agencies have been involved in the development of Colombia. The IFC‟s involvement in

Colombia focuses on developing its financial sector, strengthening the investment climate, and investing in industries

where domestic demand is growing. In 2007, the IFC offered Sodimac Colombia S.A., the largest home improvement

retailer in Colombia, a $50 million long-term corporate loan.

The World Bank is involved in a variety of projects in Colombia, including, sustainability programs to help achieve the

MDGs, rural productive partnership projects, infrastructure investments (ex: transport), carbon offset projects, agricultural

transition programmes, education, healthcare, disaster risk management, etc.

ITC ACTIVITIES

So as to develop the tourism industry in Colombia, ITC created a trade related technical assistance programme to promote

trade in services and greater participation in the General Agreement on Trade in Services (GATS). ITC has also been

involved in projects aimed at improving export capacity, south-south trade promotion, value chain diagnostics, as well as

in research to develop market analysis tools

In addition, ITC is about to launch a project in Cartagena de Indias, Colombia, which will aim to contribute to poverty

reduction, by increasing entrepreneurial business opportunities so that SMEs in Cartagena can produce more and better

quality products and services to the city‟s tourism sector. The project will develop activities that will lead to strengthened

institutions as well as increased entrepreneurial capacity for the selected groups. Through this project the communities will

have better access to the market, and thus, improve the living standards of the poor communities.

34

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