Sustainable Pro Poor Tourism The Destination Management Approach

Sustainable Pro Poor TourismSustainable Pro Poor TourismThe Destination Management The Destination Management Approach Approach

The Arusha Round

Table

on Responsible

Tourism Partnerships -

3June 2010Birgit SteckSenior Tourism AdvisorDar es Salaam, [email protected]

The Morning After 2015: SNV in Latin America

• SNV SPPT is active in 10 African countries, in 23 destinations• 33 experienced tourism advisors working on the ground• About 90 program initiatives to make tourism work for the poor • Pro poor income at destinations shall increase from 10 to 15 %

SNV‘s starting point in TanzaniaSNV‘s starting point in Tanzania


TanzaniaTanzania52

5,00

0

665,1

15

575,

296

730,0

00

576,

198

731,0

00

582,

807

746,0

00

612,

754

823,0

50

644,

124

950,0

00

719,

031

1,198,7

60.00

770,

376

1,269

,680.0

0

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2001 2002 2003 2004 2005 2006 2007 2008

Tourist Arrivals

Receipts in US$(x 1000)

Tourist arrivals and receipts

Comparing tourism Comparing tourism revenue torevenue tothe poor in different the poor in different destinationsdestinations

ITC/ODI, 2009SPPT - The Destination Management ApproachSPPT - The Destination Management Approach

SPPT PrinciplesSPPT Principles• Any kind of tourism can benefit the poor.Any kind of tourism can benefit the poor. • Tourism is a driver for local developmentTourism is a driver for local development.. • Strengthen the performance of the overall Strengthen the performance of the overall

tourism sector at national and destination-tourism sector at national and destination-level level (increasing the overall size of the (increasing the overall size of the tourism cake). tourism cake).

• Increase opportunities for the poor to benefit Increase opportunities for the poor to benefit (more) from tourism by enhancing linkages (more) from tourism by enhancing linkages into the local economy into the local economy (increasing the slice of (increasing the slice of the tourist cake for the poor).the tourist cake for the poor).

SPPT - The Destination Management ApproachSPPT - The Destination Management Approach

Increasing the tourism cakeIncreasing the tourism cake

90

10

Tourismrevenue

90

10

Tourismrevenue


Increasing the slice for the poorIncreasing the slice for the poor

30

70

Income forthe Poor

90

10

Tourismrevenue


SNV –Tanzania: SNV –Tanzania: programmatic areas in SPPTprogrammatic areas in SPPT• Work at national and destination levelWork at national and destination level• Adopt two complementary approaches:Adopt two complementary approaches:

--Destination Management (DMA) and --Destination Management (DMA) and --Value Chain Analysis & Development (VCA/D)--Value Chain Analysis & Development (VCA/D)

• 5 programmatic areas:5 programmatic areas:-----DMA Serengeti-----DMA Serengeti-----DMA Tanga-Pangani-----DMA Tanga-Pangani-----DMA Zanzibar -----DMA Zanzibar

-----Tanzania Cultural Tourism Program and -----Tanzania Cultural Tourism Program and -----Policy Dialogue for enabling the SPPT environment -----Policy Dialogue for enabling the SPPT environment


Zanzibar Tourism Value Chain AnalysisZanzibar Tourism Value Chain Analysis

TOURISM: TOURISM: MORE VALUE MORE VALUE FOR ZANZIBARFOR ZANZIBAR


• To measure the financial To measure the financial flows from the tourism flows from the tourism industry accruing to the industry accruing to the poor’ in Zanzibarpoor’ in Zanzibar

• To suggest and prioritise To suggest and prioritise interventions based on this interventions based on this analysisanalysis

TOURISM: MORE VALUE FOR ZANZIBAR Tourism Value Chain AnalysisTOURISM: MORE VALUE FOR ZANZIBAR Tourism Value Chain Analysis

TOURISM: MORE VALUE FOR ZANZIBAR Tourism Value Chain Analysis

OBJECTIVES


• Measures where tourism revenue is Measures where tourism revenue is flowing throughout the tourism industryflowing throughout the tourism industry

• Measures the direct financial impacts on Measures the direct financial impacts on ‘the poor’ who are defined prior to the ‘the poor’ who are defined prior to the research:research:

• Analyses the barriers for the ‘poor’ in Analyses the barriers for the ‘poor’ in engaging in earning tourism revenueengaging in earning tourism revenue

• Suggests interventions based on the Suggests interventions based on the financial and logistical analysisfinancial and logistical analysis


METHODOLOGYTourism Value Chain Analysis in Zanzibar:

(PPI - Pro Poor Income)



MAP OF TOURISM SECTORSFOR THE ACTUAL ANALYSIS

Services

• Hotel outlets and high end businesses• Micro enterprises and

the informal sector• Internet Cafés• Provision Stores

Accommo-dation

Providers

Food and Beverage

Operations

Tours and excursions

Retail -discretionary out of pocket

spending

• Number and Type• Costs, Turnover, Profitability• Employees• Government • Revenues

• Independent Restaurants• Restaurants in Coastal Areas• Street Vendors• Linkages to the Food and Beverage Sector

• Tour operators• Dive Operators• Guides• Spice Farmers• Boat Trips- informal sector• Taxi services

• Hotel shops and high end busin.• Employment• Micro enterprises and the informal sector• Souvenir shops• Painters• Clothes and material shops• Wood carvers

Non-tourism, but related sectors


SUMMARY OF MAIN FINDINGSSUMMARY OF MAIN FINDINGS

• The total revenue for all sectors under The total revenue for all sectors under analysis is 172 million US$analysis is 172 million US$

• The total pro poor income from direct The total pro poor income from direct linkages to tourism in Zanzibar is 10 %linkages to tourism in Zanzibar is 10 %


ServicesAccommo-

dation Providers

Food and Beverage

Operations

Tours and excursions

Retail -discretionary out of pocket

spending


Retail3.7%

Accomm. & Hotel Meals

88.4%

Tours & Excursions

3.0%

Services / other0.5%

Restaurants 4.4%

BBreakdown of Revenue by Sector and reakdown of Revenue by Sector and PPIPPI


Pro-Poor Contribution

7.3 % PPI

? % PPI

18.8 % PPI27 % PPI

47 % PPI

US$ 172 million


SUMMARY OF MAIN FINDINGS SUMMARY OF MAIN FINDINGS Breakdown of Revenue by Sector and Pro-Poor ContributionBreakdown of Revenue by Sector and Pro-Poor Contribution


Accomm. & Accomm. & Hotel Hotel MealsMeals

Restaurants Restaurants RetailRetail Tours &Tours &ExcursionsExcursions

Services / Services / otherother

RevenueRevenue(US$)(US$)

152 million152 million 7.5 million7.5 million 6.3 million6.3 million 5.2 million5.2 million 0.8 million0.8 million

% Total % Total RevenueRevenue

88.488.4 4.44.4 3.73.7 3.03.0 0.50.5

% Pro-Poor % Pro-Poor BenefitBenefit

7.37.3 4747 2727 18.818.8 Not KnownNot Known

Net Pro-poor Net Pro-poor benefitbenefit

6.5 %6.5 %11.2 million11.2 million




MinimalMinimal


SUMMARY OF MAIN FINDINGS SUMMARY OF MAIN FINDINGS


1. High proportion of tourism revenue is directed through the hotel sector – low PPI

2. High-end hotels appear to give higher PPI per tourist

3. Small individual restaurant sector – high PPI4. Less spent in tours and excursions than on

retail– suggests an under-usage of cultural tourism resources

5. SMES retail sector dominated by non-Zanzibaris through access to supplies for prominent products and prominent locations.


SUMMARY OF MAIN FINDINGS SUMMARY OF MAIN FINDINGS

TOURISM: MORE VALUE FOR ZANZIBAR Tourism Value Chain Analysis Way forward

6. Informal sector is significant: formalisation in some cases will improve revenue and customer experience, in others will reduce profitability through tax.

7. Agricultural linkages hindered by variety, quality and high seasonality of produce.

8. Only more wealthy fishers can engage with tourism but face lack of current market information and high perishability.


INTERVENTIONS:INTERVENTIONS:


Awareness raising on SPPT

1. Employment

2. Linkages

3. SME development


Way forward in Zanzibar DMA:Way forward in Zanzibar DMA:Co-ordinate in interventions by different Co-ordinate in interventions by different development partners and local development partners and local stakeholdersstakeholders


• “Anchor” SPPT approach in MKUZA update, tourism as lead sector

• All relevant the stakeholders in the government involved and plan for MKUZA implementation workshop

1. - Continue hospitality training for Zanzibaris - Work towards a Train the Trainers Program

1. Strengthen agricultural linkages and others

2. Analyse SMEs and market for their products


Responsible Tourism Certification Responsible Tourism Certification SchemeSchemeand the SPPT Contextand the SPPT Context• Within a destination, a common vision needs to be Within a destination, a common vision needs to be

developed among all stakeholders as a basis for a developed among all stakeholders as a basis for a Destination Management Plan:Destination Management Plan:Where do we want to be in (X) years time?Where do we want to be in (X) years time?

• Ensure the commitment of all stakeholdersEnsure the commitment of all stakeholders• Sustainable Pro Poor Tourism does not necessarily Sustainable Pro Poor Tourism does not necessarily

need a Certification Scheme, can be a useful tool.need a Certification Scheme, can be a useful tool.• Important to understand Responsible Tourism CriteriaImportant to understand Responsible Tourism Criteria• Certification should be started and implemented by an Certification should be started and implemented by an

independent body.independent body.

AHSANTENI AHSANTENI SANASANA

Sustainable Pro Poor Tourism The Destination Management Approach

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