Nathan Associates Inc. Briefing

Maputo

February 17, 2005

USAID’s Northern Mozambique

Tourism Development Project

USAID’s Northern Mozambique

Tourism Development Project

AgendaAgenda

Project Background

– Design PhaseField ResearchValue-Chain Approach

Implementation Framework Timeline and Next Steps

Objectives of Design Phase Field Visits and Team Composition

– Cabo Delgado– Nampula– Niassa– Cross-cutting Themes

Framework Development Working Group Consultation with Minister Sumbana

1. The Design Phase – Field Research

1. The Design Phase – Field Research

The Design and Implement approach to the project has allowed for a far more in-depth assessment of potential interventions and initiatives

The Design and Implement approach to the project has allowed for a far more in-depth assessment of potential interventions and initiatives

SelectionSelection On-TripOn-Trip Post-TripPost-Trip

Segmenting Demographics Planning window What is planned

in advance Role of travel

agent or distribution channel

Information sources

Trip motivations Travel partner or

group

Disposable income

Price/value decision factors

Final selection criteria

Preferred package and method of purchasing

Experiences desired Value Proposition Arrival/Departure—

Border formalities-visas, immigration, customs, baggage, transport

Specific needs– Accommodations– Restaurant– Retail– Entertainment– Transportation– Activities– Services

Resulting experience

Experience feedback

Frequency of returning to a destination

PlanningPlanning

After On the Frontier, Bermuda Competitiveness Project

1. The Design Phase – The Value Chain Approach

1. The Design Phase – The Value Chain Approach

The Value Chain segmentation starts at the planning phase of a holiday and extends through to the post-trip analysis for any segment of the market

The Value Chain segmentation starts at the planning phase of a holiday and extends through to the post-trip analysis for any segment of the market

Services Services Activities

Activities Shopping

Purchases

Shopping

Purchases Taxation

Taxation Food &

Drink

Food & Drink

Attractions Attractions Infrastructure

Infrastructure

•- Airlines•- Shipping Companies•- Car Hire•- Coach•- Taxi•- Ports•- Roads•- Airports•-Telcom

•- Builders•-Fitting•Developers•- Utilities

- Hotels

- Other Accommodation

- Camping

- Food

- Drink

- Farm Produce

- Fruit

-Restaurant

- Retail

- Craft

- Art

- Books

- Guides

- Admission

Tours

-Equipment Hire

- Diving

- Rock Climbing

- Nature Reserve

- Guides

- Medical Health Business

- Telephone Exchange

- Hair Dressing

- Taxation Streams to Gov-t

- Landing

- Entry

- VAT

- Duty

Accommodation Accommodation

1. The Design Phase – Value Chain Approach

1. The Design Phase – Value Chain Approach

The on-trip component audit guide provides a framework for a detailed analysis of what the Government and the Private sector need to address

The on-trip component audit guide provides a framework for a detailed analysis of what the Government and the Private sector need to address

Step 1 Step 2 Step 3 Step 4 Step 5

Analyze Current Situation

Analyze Current Situation

Set Tourism Strategy

Set Tourism Strategy

Develop a Value Delivery SystemDevelop a Value Delivery System

Articulate Competitive Positioning

Articulate Competitive Positioning

Strategy ExecutionStrategy

Execution

1. The Design Phase – Value Chain Approach

1. The Design Phase – Value Chain Approach

The Value Chain Approach provides an effective tool to define where constraints occur and where project interventions can have the greatest effect

The Value Chain Approach provides an effective tool to define where constraints occur and where project interventions can have the greatest effect

AgendaAgenda

Project Background

– Design PhaseField ResearchValue-Chain Approach

Implementation Framework Timeline and Next Steps

Implementation FrameworkOur overall implementation plan will incorporate eight areas.

Implementation FrameworkOur overall implementation plan will incorporate eight areas.

Ensuring Synergies with GOM National Tourism Strategy Addressing USAID’s requirements Creating an overarching, umbrella framework; the Northern

Mozambique Tourism ARC Designing an Institutional Framework which promotes

public:private sector partnerships Addressing key Policy Reform and Enabling Environment

constraints Designing a Marketing, Branding and Promotion strategy for

Tourists and Investors Creating an Integrated Destination Management Approach in

Cabo Delgado Leveraging Resources for New Tourism Development in

Nampula and Niassa

1. Ensuring Synergies with GOM National Tourism Strategy 1. Ensuring Synergies with GOM National Tourism Strategy

‘By 2020 Mozambique is Africa’s most vibrant, dynamic and exotic tourism destination, famous for its outstanding beaches and coastal attractions, exciting eco-tourism products and intriguing culture, welcoming over 4 million tourists a year.

Conservation is an integral part of tourism and the combined benefits constitute a significant contribution to National GDP bringing wealth and prosperity to communities across the Country.’

Strategic Plan for the Development of Tourism in Moçambique (2004 – 2013)

The Government of Mozambique has a clearly thought out and articulated Strategy and Vision for developing tourism

The Government of Mozambique has a clearly thought out and articulated Strategy and Vision for developing tourism

Focus: Provinces of Cabo Delgada, Nampula, Niassa and Zambézia. Exclusive destination for affluent segments, mainly marketed to international markets. Image of exclusive ‘island’ destination with strong cultural influence. ‘Unspoiled wilderness’ of Niassa to be cherished and used for further niche development (luxury eco-tourism, adventure, backpackers, hunting).

Northern Mozambique can become Mozambique’s most exclusive destination. Marketing and product development initiatives should strongly feature the exclusive and unique character of Northern Mozambique. Exclusive small resorts will arise along the coast and islands of Cabo Delgado. ‘Icons’ of the North are the Pemba, the Quirimbas, Ilha de Moçambique, Reserva de Niassa and Lago Niassa. Exclusive eco-tourism (adventure, birding, hunting, lake based) to be developed mainly in remote areas of Niassa and Cabo Delgado Province.

Strategic Plan for the Development of Tourism in Moçambique (2004 – 2013)

1. Ensuring Synergies with GOM National Tourism Strategy 1. Ensuring Synergies with GOM National Tourism Strategy

The focus for developing tourism stresses the ‘exclusive’ nature of the north of Mozambique and the opportunities for targeting niche markets

The focus for developing tourism stresses the ‘exclusive’ nature of the north of Mozambique and the opportunities for targeting niche markets

Activities must contribute to increasing earnings, jobs and tourist numbers

The Project must identify, prioritize and address critical policy issues which constrain tourism development

Synergies with other donor initiatives need to be identified to ensure that the USAID initiative adds value

The extent to which an environmental program needs to be incorporated must be assessed

The role of local communities and the extent to which they can benefit from the project must be considered

An effective implementation mechanism must be established Benchmarking will need to be undertaken in order to measure

the impact of the project

2. Incorporating USAID’s requirements 2. Incorporating USAID’s requirements The Project falls under USAID’s Strategic Objective Seven which aims to increase labor-intensive exportsThe Project falls under USAID’s Strategic Objective Seven which aims to increase labor-intensive exports

3. Creating an overarching framework 3. Creating an overarching framework The Northern Mozambique Tourism ARC aims to promote Actions for Regional Cooperation. We used criteria to define priority interventions

The Northern Mozambique Tourism ARC aims to promote Actions for Regional Cooperation. We used criteria to define priority interventions

The intervention needs to have a direct links with providing goods and services to a customer set

The intervention must have buy-in by all stakeholders Opportunities for business linkages should be sought Opportunities for gender integration into tourism development

need to be considered All environmental issues must be highlighted Any policy implications must be elaborated Duplication with other donor or private sector activities needs to

be avoided Are there opportunities to leverage other sources of funding

3. Creating an overarching framework 3. Creating an overarching framework The Northern Mozambique Tourism ARC covers the geographic area where the majority of Project interventions are envisaged

The Northern Mozambique Tourism ARC covers the geographic area where the majority of Project interventions are envisaged

Mission: To develop Northern Mozambique’s tourism economy through a results-driven partnership of private sector, government and NGOs, with donor assistance to sustainably expand economic growth, job creation, entrepreneurial opportunities, social benefits, and national/provincial revenue base.

Participatory Stakeholder Process– Private Sector– Government– Civil Society

Regional Representation– Regional Coordinators– Intra-Regional Cooperation and Linkages

4. The Institutional Framework 4. The Institutional Framework Previous experience in working with multiple stakeholders to develop tourism has demonstrated the value of an inclusive approach

Previous experience in working with multiple stakeholders to develop tourism has demonstrated the value of an inclusive approach

New Approaches to Enduring Problems– Experiments with Ibo and Ilha da

Mozambique Support and Advocacy for Multi-Sectoral

Policy Reform Initiatives Spreading Information: Increasing

Awareness and Access to Regulations Supporting New Policy Initiatives identified

through ARC Forum Explore Mechanisms for Self Regulation

5. Policy reform and Institutional Change 5. Policy reform and Institutional Change Policy reform and support in enforcement of existing and new policies will form an important cornerstone of project initiatives

Policy reform and support in enforcement of existing and new policies will form an important cornerstone of project initiatives

Demand/supply analysis; quality assurance; market research; ICT

Benchmarking; Information Systemsand Decision Support

Image Enhancement/Branding—Geotourism Map Guide Potential Niche Market Opportunities

– Aquatic Adventures: Sport Fishing, Scuba diving, Water Sports

– Birding– Cultural/Archaeological– Hunting & Photography Safaris– Health & Wellness– Ecotourism– SAVE (Scientific, Academic, Volunteer and Education)

6. Marketing, Branding and Promotion 6. Marketing, Branding and Promotion We see two main sets of customers in terms of defining markets – the Tourist and the Investor. Within these customer bases broad categories exist.

We see two main sets of customers in terms of defining markets – the Tourist and the Investor. Within these customer bases broad categories exist.

Portugal Brazil Saudi-Arabia UAE Angola

US UK Germany Netherlands

Italy

France Canada Australia Japan Sweden China

South Africa Zimbabwe Swaziland

Strategic Source Markets to South

Africa

Cultural Synergy

Proximity Synergy

South Africa

Spain

Portfolio of Strategic Markets for Tourism in Mozambique

Countries in Italics are NOT priority markets

Countries in Bold are EXISTING source markets.

High Potential Niches Diving, Deep sea fishing, Hunting Birding, Eco-tourism Cruising, High-yield ‘island’, Culture

Language Religion, Roots, Values

6. Marketing, Branding and Promotion 6. Marketing, Branding and Promotion We will use a range of tools to update and validate existing market analysis in strategic and new markets, for the north of the country

We will use a range of tools to update and validate existing market analysis in strategic and new markets, for the north of the country

Priority focus building on existing resources:– Ibo Tourism Development Strategy– Cultural Heritage Development– Cooperative Marketing and Promotion – Upgrading Visitors Center– HRD/Training/BDS: Supporting Catholic University– Community Outreach (artisanal activities)– Catalytic Events

Ameliorating obstacles and constraints:– Coastal Zone Management– Pemba Beach Land Use Plan

Prepare projects for Tourism-Focused Enabling Infrastructure Priorities– Pemba Airport; airstrips– Northern Coastal road

Develop other tourism proposals eligible for MCC funding– Health Services (eg. Hyperbaric chamber)– Agricultural Linkages

7. Creating an Integrated Destination Management Approach

in Cabo Delgado

7. Creating an Integrated Destination Management Approach

in Cabo Delgado

Cabo Delgado provides an opportunity to build on established tourist infrastructure and services, to provide a relatively quick impact.

Cabo Delgado provides an opportunity to build on established tourist infrastructure and services, to provide a relatively quick impact.

(Adapted from Strategic Plan for the Development of Tourism in Moçambique (2004 – 2013))

(Adapted from Strategic Plan for the Development of Tourism in Moçambique (2004 – 2013))

Capitalize on Marine and

Coastal Assets

Capitalize on Marine and

Coastal Assets

Develop Eco-tourism and Wildlife

Products

Develop Ecotourism and Wildlife

Products

Integration Southern

Africa

Linkages with Southern

Africa

Capture the Strength of

Culture

Strengthen Local

Communities

and Culture

Strategic ‘Niche’ and

Source Markets

Strategic ‘Niche’ and

Source MarketsDestination

Mozambique

Destination:

Pemba/Quirimbas/

Ibo

Spatial FocusPATI, TFCA,

Routes, Regions

Spatial FocusPATI,

trip circuits

An Integrated Destination Management Approach will focus initially on the Pemba area and the Quirimbas National Park/Archipelago

An Integrated Destination Management Approach will focus initially on the Pemba area and the Quirimbas National Park/Archipelago

7. Creating an Integrated Destination Management Approach

in Cabo Delgado

7. Creating an Integrated Destination Management Approach

in Cabo Delgado

US Department of Interior: Capacity Building and Training in Protected Area Management, Visitor Services, and Resource Management (Niassa)

Developing proposal for Destination Management Plan for Ilha de Mozambique/Lumbo

Prepare projects for Tourism-Focused Enabling Infrastructure Priorities– Airport and airstrip upgrades– Roads and bridges– Water and sanitation

Develop other tourism proposals eligible for MCC funding:– Business Development Service/Guide; MICE Expansion– Health support services (eg. Malaria programs)– Agriculture linkages

8. Leveraging Resources for New Tourism Development in

Nampula and Niassa

8. Leveraging Resources for New Tourism Development in

Nampula and Niassa

Before meaningful increases in tourist arrivals can be achieved substantial development investment needs to be made in Nampula and Niassa

Before meaningful increases in tourist arrivals can be achieved substantial development investment needs to be made in Nampula and Niassa

AgendaAgenda

Project Background

– Design PhaseField ResearchValue-Chain Approach

Implementation Framework Timeline and Next Steps

Timeline and Next StepsTimeline and Next Steps

February 20: Initiative recommendations to be submitted by team members

March 5: Draft Implementation Plan Completed (for circulation and comment by team)

Consultation with Stakeholders (proposed) and further revisions

March 30: Draft Submitted to USAID for review and comment

May 1: Project Implementation Commences (proposed)