Tourism Value Chains - Library by xiangpeng


									  Tourism Value Chains:
Conservation International’s
   Innovative Approach

   An innovative approach to economic
  growth, poverty reduction and creating
     business incentives to conserve
Ecotourism Program:
Who are We?

 Ecotourism Program; PPC or Conservation Strategies
 Travel & Leisure; CELB
 Global Tourism Team
Ecotourism Program
                            CELB                           Global
Neel Inamdar, Senior                                       Tourism Team:
                            Jamie Sweeting
Advisor of Ecotourism
                            Senior Director of Travel &    over 20 CI staff
Nina Kolbe, Sustainable
                                                           around the
                            Seleni Matus                   world
Tourism Development
                            Advisor to MesoAmerican Reef
                            Rebecca Rogers
Kathryn Kelly, Manager of
                            Coordinator of Travel of
Ecotourism Program
 Ecotourism at CI

Historically CI has engaged in tourism through the following:

 •   Community Engagement
 •   Enterprise/Destination Development
 •   Policy and Planning
 •   Capacity Building
Ecotourism Today

Increasingly CI is engaging with the private sector to implement
   sustainable tourism practices across their supply chains.

  • Partnership with ATTA; to disseminate good practice
  guidelines to tour operators.
  •Partnerships with cruise line associations
  •Hotel Siting, Development and Design guideline
  •Partnership with Responsible Travel to promote
  sustainable tourism operations

3 year project, funded by USAID working in two biodiversity
Objective: Working with partners at the local, national and
   international levels, CI aims to increase the competitiveness of
   micro and small enterprise (MSE) in the tourism industry in
Good Practice Adoption

2 year project, funded by UNEP-GEF, implementation
   in 2 regions of Ecuador and one in Belize.

Entitled “Mainstreaming Biodiversity Conservation
   into Tourism Through the Development and
   Dissemination of Best Practices,” the two-year
   project will support sustainable tourism and
   conservation by developing and implementing
   best practice adoption.
Tourism Learning Initiative

     OLD MODEL                LEARNING MODEL

   Crystal ball city
Key Learning Themes

 Protected Areas
 Value Chain Analysis
 Concessions

Learning Activities
Case Studies, South-South Exchanges, Technical
Support Trips, etc.
Learning Activities FY07

Gudaigwa Case Study

The Gudaigwa Cultural Village Eco-tourism project, located in
northern Botswana was a 7 year project led by CI and partners. It is
considered by CI and a wider audience to have failed in its objective
of establishing of a viable, sustainable and profitable community
based tourism enterprise during the time which CI was involved.

CI’s Tourism staff wanted to learn from this failed project so S. Africa
staff produced a case study to unveil the errors during
implementation of this project.
Learning Activities FY07

Canaima, Venezuela Technical Support Trip
Tourism staff from CI-Ecuador (Salvador Cazar and Steve Edwards), CI-Venezuela
(Daniela Vizcaino) and Headquarters (Neel Inamdar)

  1. Create and test a model for technical support within the CI
     Global Tourism Team under the Institutional Learning Initiative

   2. Support the Venezuela country program addressing identified
      issues related to Canaima National Park, in particular the
      challenges faced by the Tourism Standards Project
      (Ecoparador and the Tourism Master Plan)
What we learned at the workshop

 CI & Ecotourism Programs’ Learning Initiatives
 Tourism Value Chain Analysis
    Using TVC Project Cycle to guide through process
       How to decide between ecotourism and other value chains
       How to do Value Chain Analysis
       How to develop strategy
       How to design effective implementation plan
       How to monitor performance and assess impact
         Value Chain Analysis:

                What is it?

  Value chain analysis focuses on the dynamics of inter-
linkages within the productive sector, especially the way
   in which firms and countries are globally integrated
What is a Value Chain &
Why has the tourism program adopted

 The full range of activities that are value- enhancing and go into
  bringing a product or service to market.

• This concept has been extended beyond individual organizations &
can be applied to whole supply chains and distribution networks.

• This enables the tourism program to understand the flow of inputs,
processes, relationships, and costs to evaluate if tourism is a viable
economic activity

• VCA- based project cycle supports the development of a
competitiveness strategy that will enable sustainable tourism activities
to provide local benefits and funding for conservation
 Why is it useful/ relevant in tourism
 and conservation work

The principle objectives for utilizing tourism in conservation are summarized as[1]:

To finance conservation
     Concessions, user fees, trust funds etc.
To reduce negative impacts on biodiversity
     Planning, managing, assessing, monitoring and sharing
     Policy, legal framework, regulations and agreements
     Standards, guidelines and best practices (communities, private sector, protected areas, visitor
As a sustainable economic activity
     Alternative livelihoods
     Entrepreneurial capacity (communities & private sector)
     Enabling Environments
To create constituencies for conservation
     Community, NGO, government and business engagement
     Partnerships and alliances
     Capacity building, education / interpretation

 In order for tourism to be able to achieve the objectives listed above,
 it needs to be a viable economic activity -- and to determine if it is
 viable, you need a diagnostic tool…
 [1] 2006 CI Tourism Strategy meeting in Costa Rica
The Value Chain Framework
in Tourism

                                                                               End Market
                                                                                                                                           Low-end Budget                                                        Mid-range Budget                                          High-end Budget
                                                                                                                                              Individuals                                                          Large Groups                                      Individuals & Small Groups
                                                                                                                                        Low Volume & Low Cost                                                 High Volume & Low Cost                                  Low Volume & High Cost

                                                                                              Agents and Wholesalers
                                                                                                 Operators, Travel
                                                                                                  Outbound Tour
                                                                                                                                Outbound                                                               Outbound                                                  Outbound
                                                                                                                              Travel Agency/                                                         Travel Agency/                                            Travel Agency/
                                                                                                                              Tour Operator                                                          Tour Operator                                             Tour Operator

                  Enabling Environment
                                                                                                                              Transportation                                                                                                                   Transportation

                                                           and Travel Agencies

                                                              Inbound Tour
                                                                                                                                 Inbound                                                                Inbound                                                   Inbound
                                                                                                                              Travel Agency/                                                         Travel Agency/                                            Travel Agency/
                                Local                                                                                         Tour Operator                                                          Tour Operator                                             Tour Operator

                    Supporting Services                                                                                                                                                              Transportation
                                                                                                                              Transportation                                                                                                                   Transportation
               Cross- cutting services
               (Includes financial, legal, and
               management services, market
               information, business training, etc.)                                                                                                                                                                                                     Hotels Acting as Excursion
                                                                                                                                                                                                 Excursion Assemblers
                                                                                                                           Excursion Assemblers                                                                                                           Operators, Using Mostly
                                                                                                                                                                                                 With Contracted Guides
                                                                                                                                                                                                                                                             Freelance Guides

                                                                               Tourism Product & Service Providers
               Sector specific services
               (Provided by actors in the supply chain                                                                                                                                         Bus Lines, Rental Cars, Mid-                                  Private Vehicles
                                                                                                                            Taxis, Rental Cars
               (by buyers or suppliers) or by actors                                                                                                                                                Range Transport                                      (Usually Owned by Hotels)
               specializing in tourism services who are
               not in the value chain)

                                                                                                                         Hostels, Low-end Hotels,
                                                                                                                                                                                                 Motels, 2-3 Star Hotels                                  High-end Lodges/ Hotels

                                                                                                                           Food Stalls, Low-end
                                                                                                                                                                                                  2-3 Star Restaurants                                     High-end Restaurants
                                                                     Historical Attractions
                                                                     Natural, Cultural and

                                                                                                                                                Marginalized Natural/                               National Parks
                                                                                                                       Forest Patches                                                                                                                           Private Parks
                                                                                                                                            Historical/ Cultural Attractions                      World Heritage Sites
                                                                               Local Input Providers

                                                                                                                                                                                                                                                   Other Materials for
                                                                                                                                    Labor                                 Building Materials       Handicrafts                Food and Beverage                                          Furniture
                                                                                                                                                                                                                                                  Tourism Enterprises
                                                                                                                                           Corresponding Tools in the
   Value Chain Project Cycle                     Overview
                                                                                                                                               Ecotourism Toolkit

                                                                                                                                   Monitoring and               Mapping Impact of
                               Establish a performance monitoring and impact
                                                                                                                                    Evaluating                      Tourism
                               assessment system that provides information to
                               program managers and implementers that are
Monitoring Performance         critical to assessing the effectiveness of particular
and Assessing Impacts          interventions so that changes and modifications
                               can be introduced to optimize project impact
                               before a project ends.

                                                                                                                           Concessions     Tourism Good Practices                           - Business
    Implementation of                                                                                                                                                      Marketing       Planning for
                                                                                                                           Agreements               Guides
       Action Plan                                                                                                     -- Summary Report   --Good Host Effect                              Environmental
                               Develop an implementation action plan that                                                                                                                  Enterprises
                               provides guidance on how to initiate and sustain a                                     on Concessions       --Mountains
                                                                                                                      Best Practices       --Marine                                        - Ecolodges:
                               competitiveness strategy.                                                                                                                                   Exploring
                                                                                                                      -- Example           --Deserts
                                                                                                                      Concessions          --Rainforests                                   Opportunities IFC
                                                                                                                      Library                                                              -Ecotourism
                                                                                                                                                                        Memorandums of     Development Vol. I

                                                                                        Value Chain Analysis Manual
                                                                                                                                                                                           & II

                               Develop a participatory competitiveness strategy
     Developing                that emphasizes creating a process in which
Competitiveness Strategy       industry stakeholders are the drivers of the
                               competitiveness strategy, able to sustain
                               competitiveness, while donor interventions
                               minimize adverse market distortions.

  Value Chain Analysis           Analysis of the factors and relationships
                                influencing competitiveness-- objectives of this
                                stage are to analyze findings to identify actors,
                                roles, relationships as well as their key constraints
                                and opportunities for increasing competitiveness.

  Industry/ Value Chain        When selecting an industry/ value chain there are                                                                      Assessments
        Selection              three main components to consider 1) good                                                                        - Linking Community
                               growth potential, 2) the size and type of impact, 3)                                                             Tourism & Conservation:                Community
                               industry leadership.                                                                                             A Tourism Assessment                   Awareness
Using the TVC Project Cycle to
Guide You Through this Process

                             Economic benefits from tourism, including using
 Monitoring Performance
  and Assessing Impacts      tourism receipts to fund conservation depends on
                             sustainable tourism activity
    Implementation of
      Action Plan
                             Economically viable tourism activities in the
                             long-run depend on strategy development
 Competitiveness Strategy

                             We use the value chain project cycle
  Value Chain Analysis
                             to develop the strategies

  Industry/ Value Chain
        Selection           Successful competitiveness depends on capacity to
                              innovate and improve

                            Your role: Facilitate strategic change in tourism sectors
The Nature-Based Tourism Value
Chain Project Cycle serves as the
framework for designing competitive,
sustainable tourism projects
CI uses these five stages of a nature-based tourism value chain project cycle to systematically
    develop comprehensive and effective strategies to increase the business incentives to
    conserve biodiversity. This allows us to:
•Engage in tourism in a systematic way

•Ensure that the private sector is driving the process

Utilize end-market information to inform upgrading strategies

Diagnose and evaluate constraints and opportunities

Prioritize addressing the key constraints with stakeholders

Design interventions that are both high-impact and sustainable

•Develop multi-year strategies with stakeholders to sustain competitiveness

Monitor performance and assess impact of tourism on conservation by clearly linking tourism
activities to conservation efforts

In essence, it is a uniform methodology that is replicable and clearly delineates how and why
interventions are chosen. The interventions are prioritized by the stakeholders and are decided only after
a thorough value chain analysis, including benchmarking key determinants of success, is completed.

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