Tourism & Local Economic Development

Harold GoodwinCentre for Responsible Tourism

Hollings

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Programme • Introduction – Harold Goodwin • Introductions – all • Jo Hendricx Thomas Cook • Hugh Felton, ABTA, Surfing• Suzannah Newham, Travel Foundation • Jen Bobbin, JUSTreport • Becs Armstrong, wages in the hotel industry

and an opportunity to hear from others

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What’s the challenge? • The tourism industry is the “world’s biggest

industry” – WTTC & satellite accounts.• Focus is on international arrivals and earnings

at national level – rather than yield or net value. Very little local data

• Development agencies tend to be ambivalent about tourism – Earns foreign currency - IFC– Doesn't create proper jobs - DFID

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HyperboleThe industry makes claims based on 1. Macro economic

methods2. Repetition: ecotourism

and CBT

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Why does this matter? • Tourism brings relatively wealthy people to places

where they create an additional local market. A big opportunity in some marginal areas.

• The tourism sector needs to demonstrate net benefit , significant livelihood impacts at local level

• Donors and practitioners need to know which forms of intervention are most likely to deliver most benefits.

• Who benefits? Practitioners need to be able to demonstrate that they are not the major beneficiaries of donor funded projects

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Previous Engagement

• 1994-1997 Tourism, Conservation and Sustainable Development – livelihood impacts.

• 1998 Tourism and Poverty Elimination => Pro-Poor Tourism Partnership – net benefits to the economically poor

• Confidential evaluation projects for Dutch Gvt. • Community-Based Tourism• MSc Project Reports

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Opportunity

• The Centre for Responsible Tourism wants this to be a major focus of our research work

• We will be creating PhD places to work on the measurement of the local economic impact of tourism at business, household and village level using accountancy methodologies.

• SDGs look likely to emerge from the UN system.

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Industry engagement

• Some parts of the sector are looking for this – Kerala Responsible Tourism Network – A group of hotels in India– A Lodge near Cape Town – ASSET members in The Gambia – A lodge in the Peruvian Amazon – A Tour Operator …….

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Three examples …………

If we can engage the economically poor in the data collection, and ensure that they own and can use their own data, we also empower then.

Village Ways Village

No of Bags VWCT expenditure on materials and labour

Other handicraft income

Total craft earnings in the village

Dalar 1602 21466 0 21466

Kathdara 598 5360 3200 8,560

Risal 493 4610 0 4610

Supi 1109 10403 5250 15653

Total 3802 13159 8450 50,289

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Village Ways Charitable Trust Purchases of Bags to March 2013 Source VWCT multiple producers for each bag.

www.haroldgoodwin.info/publications.html 10

Family BPL No. in HH Involvement Annual VW income

% of household income

M N 2 Member 5,000 50.0%

I N 6 Member, Landlord 7,000 49.1%

B N 4 Member. Cook 9,000 45.0%

J Y 6 Member 3,000 30.0%

F N 4 Member 12,000 24.0%

D N 4 Member 7,000 23.3%

C N 4 Member. Cook 9,000 18.0%

H N 4 Member 7,000 12.7%

L N 3 Member 7,000 12.7%

K N 5 Member 1,000 10.0%

N N 6 Member 4,000 10.0%

S N 7 Guide 10,000 10.0%

U N 4 Guide 10,000 10.0%

V N 4 Guide 10,000 10.0%

X Y 6 Guide 10,000 10.0%

Y Y 5 Guide 10,000 10.0%

T N 8 Guide 10,000 5.0%

W N 6 Guide 10,000 5.0%

Supi: Employment Income from Village Ways by Household 2012-2013

UNWTO Pilot Course T&PA 11Dec 2006

Tanzanian Coffee Farm

UNWTO Pilot Course T&PA 12Dec 2006

UNWTO Pilot Course T&PA 13Dec 2006

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Revenue from Coffee Tours and Campsite, 2005 – investment ± $30,000

# Campsite Coffee tour Lunch Total Sale

s

Month Groups pax pax pax USD

June 3 0 47 12 553

July 12 70 183 64 2,484

August 10 102 164 46 2,264

September 10 81 154 59 2,131

October 11 97 154 44 2,025

November 2 31 30 0 417

December 4 52 52 8 752

Totals 52 433 784 233 10,626

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Distribution of Revenues June – December 2005

Total Earnings USD %

Coffee Co-operative Office, 2383 22

Community Development Fund 3685 35

Tour guides (farmers) 779 7

Food, 967 9

Camp. Maintenance 794 7

Campsite Office 72 1

Camp. Security, 218 2

Miscellaneous. Fund, 28 -

Farmers for visits to their land 31 -

Total distributed 8956 84

Retained undistributed 1670 16

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Estimation of net income accruing to individuals by group

Campers Tour Group People Beneficiaries net earnings/ individual

in USD

Total Individual

Net Earnings

Tour Guides

0 5 15 3 6 130 780

Food Preparation

0 15 15 4 12 28 336

Cleaning 1 0 5 2 2 60 120 Campsite Office

3 3 1 1 72 72

Security 9 9 3 3 73 219 Chairman 3 3 1 3 1 143 143 Farmers for visits to their land

2 2 3 100 3 300

Total 125 1970

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Cost Benefit

• Community perspective, small investment in training and use of communal land

• Return on investment– 1/3 of “costs” earned back in first 6 months

Goodwin H & Boekold (2010) Beyond Fair Trade - enhancing the livelihoods of coffee farmers in Tanzania Chap 12, pp 181-196 in Jolliffe L Coffee Culture, Destinations and Tourism Channel View Publications, Clevedon

GiG’s IMPACT (2008)

Improved lives for FarmersGiG has worked with over 1000 Gambian producers (indirectly benefiting 5000 people), 90% of whom are women GiG is enabling farmers to move from subsistence to commercial farming.4 million dalasi (approx. 98,000 GBP) directly into the hands of poor Gambian farmers for purchase of over 210 tonnes of produce

Reduced Imports: GiG has reduced imports and increased consumption of locally grown produce, with benefits to local farmers and the environment.

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ASSET: The Gambia

• DFID funded project to improve market access for small scale producers – guides, fruit sellers, juice pressers, craft sellers, taxi drivers and bumsters.

• Action research: research – intervention – research

• Engaged the beneficiaries in data collection.

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Official Guides • Lack of promotion and

negative presentation by the formal sector

• Too much competition with the sector.

• Bumsters are retrained as official guides – licensed Bumsters?

• Tourists bargaining too hard • Incomes increased by 33%

2001-2002

Juice Pressers

• Registered association – Badging– Self-regulation overseen

by GTA– Fixed prices and no

hassling

• Income more than doubled 2001-2002

• Require access to clean water and toilet facilities

Kotu Beach Fruit sellers

2001/2002 earnings increased 50-60%

Craft Markets • Reduce Hassle

through codes of conduct.

• Demonstrations of craft working

• New products • Labelling and

interpretation• Tailor made to order

Development Impacts: increased incomes.

• Fruit sellers: 50-60%• Juice Pressers: 120%• Guides: 18-30%• Kotu Beach Craft Market: 300% and 43 new

jobs.• 60,000 British tourists spend £8.30/day in the

informal sector - £5m / year

Industry engagement

• Some parts of the sector are looking for this – Kerala Responsible Tourism Network – A group of hotels in India– A Lodge near Cape Town – ASSET members in The Gambia – A lodge in the Peruvian Amazon – A Tour Operator …….

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If we can engage the economically poor in the data collection, and ensure that they own and can use their own data, we also empower then.