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Actions towards Poverty Alleviation through Tourism

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					Workshop on Expanding the Role of Tourism in
Poverty Reduction

24 October 2007
Nuku’alofa




      Poverty Reduction through Tourism – The
                Experiences in Asia


                      Ryuji Yamakawa
                          UNESCAP




                                                1
                Presentation Outline

I.     Tourism in Asia.

II.    Tourism and Poverty Reduction.

III.   Asian Experience in Poverty Reduction through
       Tourism: Case study – Pro-poor community based
       tourism development in Lao PDR.

IV.    Challenges.

V.     Actions to Expand the Role of Tourism in Poverty
       Reduction.



                                                     2
3
                   Tourism in Asia

Tourism in Asia growing faster than other regions.

    1995 - 74 million arrivals.
    2006 - 157 million arrivals.

Tourism in Asia has great potential for further
expansion.

    Improved air linkage and transportation networks.
    Emerging markets – China, India, Russia.
    Simplified procedures for visa issuance.
    Strong subregional cooperation in tourism.

                                                        4
             Tourism and Poverty Reduction

   Tourism stimulates economic growth both at the national and local
    levels and promotes the growth of the agricultural, industrial and
    service sectors.
   Tourism provides a wide range of employment opportunities easily
    accessible by the poor. Tourism businesses and tourists purchase
    goods and services directly from the poor or enterprises employing
    the poor. This creates opportunities for micro, small and medium-
    sized enterprises in which the poor can participate.
   International and domestic tourism spreads development to poor
    regions and remote rural areas of a country that may not have
    benefited from other types of economic development.
   The development of tourism infrastructure can benefit the livelihood
    of the poor through improvement in tourism-linked service sectors,
    including transport and communications, water supply, energy and
    health services.


                                                                       5
            How Tourism Helps the Poor

   Employment of the poor in tourism enterprises.
   Supply of goods and services to tourism enterprises by
    the poor.
   Direct sales of goods and services to visitors by the
    poor.
   Establishment and running of tourism enterprises by the
    poor
   Investment in infrastructure stimulated by tourism also
    benefiting the poor.
   Tax or levy on tourism income or profits with proceeds
    benefiting the poor.


                                                          6
              Lao PDR
Tourist Arrivals, Revenue and Average Length
               of Stay, 1990-2006

Year          Number of Tourist   Revenue from Tourism
                 Arrivals              (Dollars)



1990              14,400                 N.A.


1993              102,946             6,280,000


2006             1,215,106           173,249,896
                                                     7
               Tourism in Lao People’s Democratic Republic
    Revenue and rank of various Lao industries (revenue in $US million)


                      2001              2002              2003              2004             2005
                 Revenue     Rank   Revenue    Rank   Revenue    Rank   Revenue   Rank   Revenue    Rank



Tourism             113.8     1      113.4      1       87.3      2      118.9     1      146.7      1
Garments            100.1     2       99.9      2       87.1      3       99.1     2      107.5      3
Electricity`         91.3     3       92.7      3       97.3      1       86.2     3       94.6      4
Wood                 80.2     4       77.8      4       69.9      4       72.4     4       74.0      5
Products
Coffee               15.3     5         9.8     7       10.9      9       13.0     8         9.5     8

Agricultural          5.7     6       25.6      5       11.1      8       20.5     6       26.6      6
Products
Minerals              4.9     7         3.9     8       46.5      5       67.4     5      128.3      2
Handicrafts           3.8     8         2.7     9       12.4      7        1.9     9         2.7     9
Other           -             -       19.9      6       17.1      6       13.4     7       11.9      7
Industries                                                                                          8
                Case Study: Pro-poor Community-based Tourism
                           Development in Lao PDR

Implementing organization:    Lao National Tourism Administration
                              Project Implementing Units of Luang Namtha, Luang
                              Prabang, Khammouane and Champasak Provinces.

Cooperation organizations:    Committee for Planning and Investment
                              Ministry of Culture and Information
                              Ministry of Agriculture and Forestry
                              Ministry of Communication, Transport, Post and
                              Construction
                              Science, Technology and Environment Agency
                              SNV

Project funding:              $1.6 million US dollars from ADB.

Project site:                 Luang Namtha, Luang Prabang, Khammouane and
                              Champasak Provinces.

Project duration:             January 2003 – December 2007 (5 years).

                                                                                  9
    Case Study: Pro-poor Community-based
       Tourism Development in Lao PDR
                   (Cont’d)

Project objective:
     Income generation and job creation at the local
      level.
     Cultural protection and revival.
     Natural resource conservation.
     Gender equity and ethnic minority participation.



                                                         10
             Case Study: Pro-poor Community-based Tourism
                    Development in Lao PDR (Cont’d)

Project activities:

  (i)   Institutional strengthening and community participation programme.

 (ii)   Awareness programme on tourism benefits and environmental and cultural
        conservation.

(iii)   Pro-poor tourism products identification and development.

(iv)    Small-scale tourism-related infrastructure.

 (v)    Capacity building for tourism-related local micro-enterprises and communities.

(vi)    Gender development participation programme.

(vii)   Ethnic minorities participation programme.

(vii)   Marketing and promotion plan.

(vii)   Promotion of community-based tourism networks and Eco-tourism Stakeholder
        Associations.
                                                                                         11
     Case Study: Pro-poor Community-based Tourism
            Development in Lao PDR (Cont’d)

Project performance monitoring system:

    Annual provincial, village and household monitoring data
     collection conducted every year in order to compare.

    The level of income.

    The number of tourists visiting the areas.

    Families participating in tourism activities.

    Income distribution, household profiles; and

    Income generated by non-tourism activities.

                                                                12
 Financial Summary for LNTA/ADB
  New CBT Products: (US Dollar)

         No. villages/     Total      Total      Village
          estimated       Revenue    Revenue    Revenue
          number of        2005       2006        2005




Total 14 32/551          $68,194    $94,813    $40,548
products



                                                           13
 Financial Summary for Destinations
         and Tour Operators
    March 2005 – February 2006

Destination   No. Tours   No. Tourists    Total     Village
  & Tour                                 Revenue   Revenue
 Operator
 Support



  Total         700        64,727        474,596   260,947



                                                              14
                Summary of Benefits

   Job creation.
    -    300 jobs created in Luang Namtha.
    -    Over 75% were in extreme poverty.
    -    Number of women employed : 140.
   Increase in income levels.
    -    Target villages increased cash income by up to 35%.
   Access to medical services improved.
   Language skills improved.
   Solid waste management improved.
   Traditional skills, arts and culture promoted.


                                                               15
                     Lessons Learned

Lessons learned:
 Criteria must be applied in the selection of target villages.
  - poorest villages + tourist attractions.
  - easy to access.
  - located within a tourist circuit.
  - market demand for the “product” exists.
  - villagers should be interested in developing tourism.
  - safety should be a consideration.
  - a measurable link between tourism, heritage conservation
     and economic development.
 Not all the villages can get benefits and be involved in tourism
  activities, especially those where there are no home-stay or
  community lodges, or are located far from tourist sites.
                                                               16
Lessons learned:

   Pro-poor tourism development should take a two-pronged
    approach.
    - Develop community-based tourism circuits in villages
      where there are potential tourist attractions (trekking,
      home stay,      etc.).
    - Research and develop supply chains between
      production villages and tourist markets.




                                                          17
Lessons learned:

-   Villages that host tourists overnight gain the greatest benefits from
    CBT, but income might not be distributed widely.
-   Encourage villages to participate from the beginning in the planning
    process of CBT development at the village level (design of tours).
-   Ensure that rotational service roster is followed closely to allow
    everyone a fair chance at gaining income from tourists.
-   Allow poorest families priority access to village development funds in
    order to help them to integrate into home stay rotations.
-   Establish a village based ecotourism committee with a revolving
    leadership that includes women.
-   Build tourist facilities and small scale infrastructure facilities such as
    community lodge, toilets, viewing points, rest area, information board,
    cultural centre, and ethnic minority markets.
-   Cooperation with the private sector for marketing CBT products and
    maintenance of community lodges and trekking trails.

                                                                          18
Lessons learned:

       Pro-poor tourism projects often require
investments in small infrastructure, and when
possible should be built by the intended
beneficiaries themselves, with local contributions of
resources to the highest extent possible.




                                                  19
                     Challenges

   To enhance the understanding needed to give
    priority to tourism development in national
    development strategies, policies, regulations,
    plans and the allocation of resources.

   To develop tourism in a comprehensive and
    sustainable manner with a view to expanding its
    contribution to socio-economic development
    and poverty reduction.

   To facilitate the opportunities for poor
    communities to benefit from tourism and
    provide necessary training.
                                                 20
                               Recommendations

(1) To enhance the understanding needed to give
priority to tourism development in national development
strategies, policies, regulations, plans and the allocation
of resources
 (a) Improve national tourism statistics and indicators, including
     indicators of the socio-economic, cultural and environmental
     impact;
 (b) Undertake analytical studies on the socio-economic impact of
     tourism;
 (c) Undertake case studies on tourism initiatives aimed at socio-
     economic development and poverty reduction;
 (d) Undertake public relations programmes and media activities to
     enhance awareness about the role of tourism in socio-economic
     development and poverty reduction.

                                                               21
(2) To develop tourism in a comprehensive and sustainable
    manner with a view to expanding its contribution to socio-
    economic development and poverty reduction

   (a)   Identify the potential contribution of tourism to the
         achievement of the Millennium Development Goals;

   (b)   Integrate tourism into national development plans with
         a clear definition of the role of tourism in socio-
         economic development and poverty reduction;

   (c)   Prepare tourism master plans which include effective
         strategies to spread the benefits of tourism to poor
         communities;

   (d)   Incorporate tourism into poverty reduction strategies.
                                                              22
(3)   To facilitate the opportunities          for   poor
      communities to benefit from tourism


(a)    Foster and support micro, small and medium-sized
       tourism-related enterprises;
(b)    Organize collaborative actions by the Government,
       the private sector and stakeholders to develop
       entrepreneurial and employment opportunities for the
       poor;
(c)    Encourage the use of local resources and services in
       tourism-related operations;
(d)    Promote local arts and crafts as well as local
       entertainment to increase the income levels of host
       communities and enhance the preservation of local
       culture;
                                                        23
(e) Expand the role of mainstream tourism in poverty
    reduction;
(f) Ensure the involvement of all stakeholders in the
    planning, development, management and promotion of
    tourism;
(g) Monitor and assess the impact of tourism initiatives on
    the poor;
(h) Improve the quality, capacity and skills of poor people
    through training and upgrading the skills related to
    tourism services;
(i) Strengthen backward linkages to poor communities by
    developing the capacity of local business organizations
    and community associations to participate in local
    tourism development and operations;
(j) Encourage private entities in remote areas to develop
    tourism infrastructure, not only for their own benefit but
    also for the benefit of local communities;
(k) Facilitate tourism-related micro and small-scale
    enterprises with easier access to capital, including
    through microfinancing and marketing schemes.
                                                                 24
Thank   You


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