Tourism-led Poverty Reduction Programme Programme Proposal Submitted by: International Trade Centre (ITC), Geneva 19 November 2009
Tourism-led Poverty Reduction Programme
Programme Proposal
Submitted by:
International Trade Centre (ITC), Geneva
19 November 2009
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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
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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
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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
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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.
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‘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
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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.
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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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EVALUATION
CROSS
CUTTING
ISSUES
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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;
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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
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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.
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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
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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
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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
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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.
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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
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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
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tourism readiness
Community Projects in Identified Area are expanded
2.3.1 Horticultural demand assessment and training of producers (20)
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
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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
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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
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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
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 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
2.2.1 Horticultural demand assessment and training of producers (100)
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
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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
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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
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
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
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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
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4. Project: Senegal
4.1 Tourism Industry Overview4
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
Problems to be addressed
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
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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.
4.3 Project’s Objective
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
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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.
4.4 Main Counterparts
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.
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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.
Tourism-led Poverty Reduction Programme 25
4.5 Logical Framework
IMMEDIATE OBJECTIVES
ACTIVITIES YEAR OUTPUTS IMPACTS IMPORTANT
ASSUMPTIONS
OUTCOME: Capacity of Agricultural Producers to take part of Tourism value chain in Saint Louis is strengthened
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
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
1.1.4 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
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
Community capacitated to engage effectively and benefit from tourism related opportunities
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
Tourism-led Poverty Reduction Programme 26
1.2.4 Identify sources of production inputs: seeds, tools, fertilizer, etc. and installation of greenhouses
1
Required infrastructure in place to enable increased consistency of yield / production
1.2.5 Installation of a small scale trading and packing facility for farmers
1
Enable producers to collectively package and process products for distribution and increase hygiene standards
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
Willing participation of communities
2.1.2 Organize meetings between producer associations and potential buyers (hotels)
2 Business partnerships established with hotels
Increased sourcing from small farmers by hotels during every year of the project
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
Tourism-led Poverty Reduction Programme 27
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
Tourism-led Poverty Reduction Programme 28
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
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 with Public / Private sectors and communities in designing structures
3
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
OUTCOME: Capacity of Communities to Assess and Engage with Tourism Opportunities is 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 & 2 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 (3 workshops in Y1)
2 & 3 TSIs trained and educated in procedures to access micro-finance
TSIs awareness of and ability to access finance increased
Additional Communities are sensitized to Business Opportunities Created by the Tourism Sector
4.2.1 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
Tourism-led Poverty Reduction Programme 29
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
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 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
Communities in areas designated for tourism growth are prepared to identify and take advantage of opportunities of incoming tourism market
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
Tourism-led Poverty Reduction Programme 30
4.6 Budget
IMMEDIATE OBJECTIVES ACTIVITIES PARTICIPATING AGENCIES AND
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
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
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
1.1.4 Undertake socio-economic household survey for target beneficiaries using TPRP's IMT
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
Tourism-led Poverty Reduction Programme 31
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
2.2.2 Establish agreements with the hotel associations, unions, hotels and other interested in training their personnel
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
Tourism-led Poverty Reduction Programme 32
OUTCOME: Capacity of Communities to Assess and Engage with Tourism Opportunities is 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 (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
+
Tourism-led Poverty Reduction Programme 33
PROJECT COORDINATION
4x4 Vehicle
14,000.00
Monthly Expenses (transport, admin, telecoms etc) x 12 12,000.00 12,000.00 12,000.00
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
ANNUAL TOTALS (USD) 347,200.00 462,000.00 327,000.00
TOTAL BUDGET (USD) 1,136,200.00
Tourism-led Poverty Reduction Programme 34
5. Project: Colombia
5.1 Tourism Industry Overview5
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.
Problems to be addressed
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
Tourism-led Poverty Reduction Programme 35
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.
5.3 Project’s Objective
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.
5.4 Main Counterparts
To ensure the successful implementation of the project and its long term sustainability, TPRP will
collaboration primarily with the following counterparts.
Tourism-led Poverty Reduction Programme 36
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,
Tourism-led Poverty Reduction Programme 37
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.
INTERNATIONAL TRADE CENTRE
Tourism-led Poverty Reduction Programme 38
5.5 Logical Framework
IMMEDIATE OBJECTIVES
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
Increased project viability based on critical capacity / opportunity assessments in context of national planning
Little or no collusion between tourism operators and their current suppliers Interviewees are willing to share openly requested information
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
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
INTERNATIONAL TRADE CENTRE
Tourism-led Poverty Reduction Programme 39
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
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 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
Willing participation of communities
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
2.2.4 Identify sources of production inputs: seeds, tools, fertilizer, etc. and installation of greenhouses
1
Required infrastructure in place to enable increased consistency of yield / production
2.2.5 Installation of a small scale packing facility for farmers
3
Enable producers to collectively package and process products for distribution and increase hygiene standards
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
Increased sourcing from small farmers by hotels during every year of the project
INTERNATIONAL TRADE CENTRE
Tourism-led Poverty Reduction Programme 40
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
Community capacitated to engage effectively and benefit from tourism related opportunities
Willing participation of communities 3.1.3
Organize meetings between producer associations and potential buyers (hotels)
2 Business partnerships established with hotels
Increased sourcing from small farmers by hotels during every year of the project
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
INTERNATIONAL TRADE CENTRE
Tourism-led Poverty Reduction Programme 41
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
3.2.2 Establish agreements with the hotel associations, unions, hotels and other interested in training their personnel
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
Willing participation of communities
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
INTERNATIONAL TRADE CENTRE
Tourism-led Poverty Reduction Programme 42
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
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
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
Producer awareness of and ability to access finance increased
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
TSIs awareness of and ability to access finance increased
Communities are sensitized to Business Opportunities Created by the Tourism Sector
5.2.1
Develop a training module to raise community and private sector awareness of entrepreneurial opportunities created by tourism and entrepreneurial skills / spirit
1 & 2 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 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
Communities in areas designated for tourism growth are prepared to identify and take advantage of opportunities of incoming tourism market
INTERNATIONAL TRADE CENTRE
Tourism-led Poverty Reduction Programme 43
Y2 (total 10 workshops) (400)
5.2.3 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: 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
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
6.1.2 Workshop held with Public / Private sectors and communities in designing structures (50)
2 & 3
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
INTERNATIONAL TRADE CENTRE
Tourism-led Poverty Reduction Programme 44
5.6 Budget
IMMEDIATE OBJECTIVES ACTIVITIES PARTICIPATING AGENCIES AND
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
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
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
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production and other techniques (25)
2.2.4 Identify sources of production inputs: seeds, tools, fertilizer, etc. and installation of greenhouses
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
COTELCO/ASOTELCA 8,000.00
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
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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
3.2.2 Establish agreements with the hotel associations, unions, hotels and other interested in training their personnel
COTELCO/ASOTELCA 5,000.00
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)
COTELCO/ASOTELCA 25,000.00
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
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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
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
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
Develop a training module to raise community and private sector awareness of entrepreneurial opportunities created by tourism and entrepreneurial skills / spirit
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
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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
PROJECT COORDINATION
4x4 Vehicle
14,000.00
Monthly Expenses (transport, admin, telecoms etc) x 12 18,000.00 18,000.00 18,000.00
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
ANNUAL TOTALS (USD) 308,000.00 437,000.00 319,000.00
TOTAL BUDGET (USD) 1,064,000.00
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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
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Annexes
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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.
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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
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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)
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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
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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
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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.
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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.
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developed by the ITC for its inclusive tourism interventions will be made readily
available to SECO.
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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
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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:
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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:
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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,
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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.
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2.7 Monitoring and evaluation framework
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.
2.8 Monitoring and evaluation framework
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
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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.
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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
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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.
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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.
Objectively Verifiable Indicators
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
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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.
Objectively Verifiable Indicators
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.
Objectively Verifiable Indicators
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).
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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.
Objectively Verifiable Indicators
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
Immediate Objective 2:
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
Objectively Verifiable Indicators
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.
Objectively Verifiable Indicators
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
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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.
Objectively Verifiable Indicators
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.
Objectively Verifiable Indicators
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).
Objectively Verifiable Indicators
70% of targeted producers can calculate their profit margins
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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.
Objectively Verifiable Indicators
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.
Objectively Verifiable Indicators
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
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Immediate Objective 3:
The transaction costs between poor community producers and hotels and
restaurants have been reduced.
Objectively Verifiable Indicators
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.
Objectively Verifiable Indicators
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.
Objectively Verifiable Indicators
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
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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.
Objectively Verifiable Indicators
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.
Objectively Verifiable Indicators
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
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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
Baseline and final value chain assessment
The socio-political and natural environment, and hotel/tour operator demand remains stable or is improving
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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
Immediate Objective 2
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
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Project Structure-Hierarchy of
Objectives Objectively Verifiable Indicators (OVI) Means of Verification (MOV) Important Assumptions
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
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Project Structure-Hierarchy of
Objectives Objectively Verifiable Indicators (OVI) Means of Verification (MOV) Important Assumptions
Immediate Objective 3
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.
Baseline and final value chain assessment
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
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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.
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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
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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
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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.
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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.
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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.
ROLE OF TOURISM IN THE ECONOMY
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
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NATIONAL STRATEGIES AND INTERNATIONAL COOPERATION IN TOURISM
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
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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.
ROLE OF TOURISM IN THE ECONOMY
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.
INTERNATIONAL TRADE CENTRE
Tourism-led Poverty Reduction Programme 87
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.
NATIONAL STRATEGIES AND INTERNATIONAL COOPERATION IN TOURISM
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.
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Visión 2032 de Política de Productividad y Competitividad Colombia