The Tourism Global Value Chain Achim Seiler, Trade Consultant and Capacity Building Specialist, Kathmandu EU-Project: Trade and Private Sector Development (TPSD) TPSD is implemented by in cooperation with and

The following slides provide an overview of the findings of a research project „Skills for Upgrading: Workforce Development and Global Value Chains in Developing Countries“, carried out by the Duke University Center on Globalization, Governance and Competitivenes (Downloadable)

The Tourism Global Value Chain (GVC) Outbound Country Inbound Country Distribution Intl. Transport Distribution Regional Transport Lodging Excursions Travel Agent Intl. Air Carrier Nat. Travel Agent Nat. Air Carriers Luxury Hotels Excursion Operators Tour Operator Cruise Nat. Tour Operator Ground Trans-portation Large Hotels Local Guides Independent Local Tour Operator Small Hotels Retail Natural Assets in Tourist Destinations Flora/Fauna, Environment, Historical Sites, Identity Groups

Global Tourism Upgrading Approaches Upgrading can occur simultaneously in multiple segments: Entry into the tourism GVC Adding on tourism products Product upgrading in lodging Functional upgrading along the excursion/distribution segments Adopting information technology

Global Tourism Upgrading Approaches (II) Economic Upgrading: Hotel Sector Segment: pro-foreign direct investtment policies Tour Operator Segment: upgrading coordination and destination trip planning Adopting Information Technology: establishing online reservation systems for local hotels and tour operators Adding on Tourism Products: diversification and broadening of potential offerings

Global Tourism Upgrading Approaches (III) Workforce Development: Hospitality Training: hotel cuisine, food preparation, wait service, housekeeping, hotel reception courses Tour Operator Segment: skill development, events management, destination management, business networking skills Foreign Language Capabilities: English, French, German , Italian, Chinese Mandarine, etc. Soft Skills: communication skills, customer service, time management

Global Tourism Upgrading Approaches (IV) Institutions: Public sector institutions National and international universities Multilateral agencies Private sector involvement Global-Local Interactions (hotel chains)

Tourism Products History and Culture Ecotourism, Adventure Religion Medical and Wellness Sun, Sand and Surf Community

Upgrading Trajectories in the Tourism GVC (I) Entry into the Value Chain: Countries become a destination for incoming tourists Firms or individual in another industry shift to tourism Firms that catered to domestic tourism add international tourism

(I) Entry into the Value Chain Outbound Country Inbound Country Distribution Intl. Transport Distribution Regional Transport Lodging Excursions Travel Agent Intl. Air Carrier Nat. Travel Agent Nat. Air Carriers Luxury Hotels Excursion Operators Tour Operator Cruise Nat. Tour Operator Ground Trans-portation Large Hotels Local Guides Independent Local Tour Operator Small Hotels Retail Natural Assets in Tourist Destinations Flora/Fauna, Environment, Historical Sites, Identity Groups

Upgrading Trajectories in the Tourism GVC (II) Upgrading within the Tour Operator Segment: Firms move along the tour operator segment The lowest segment is as a guide, upgrading to excursion operator, local arranger or national arranger for an incoming agent

(II) Upgrading within the Tour Operatior Segment Outbound Country Inbound Country Distribution Intl. Transport Distribution Regional Transport Lodging Excursions Travel Agent Intl. Air Carrier Nat. Travel Agent Nat. Air Carriers Luxury Hotels Excursion Operators Tour Operator Cruise Nat. Tour Operator Ground Trans-portation Large Hotels Local Guides Independent Local Tour Operator Small Hotels Retail Natural Assets in Tourist Destinations Flora/Fauna, Environment, Historical Sites, Identity Groups

Upgrading Trajectories in the Tourism GVC (III) Upgrading within the Hotel Segment: Countries offer larger and higher quality hotels Hotel that started as small or budget accomodation upgrades in size and/or luxury Local hotel „brand“ is created/expanded into a chain or a hotel management company

(III) Upgrading within the Hotel Segment Outbound Country Inbound Country Distribution Intl. Transport Distribution Regional Transport Lodging Excursions Travel Agent Intl. Air Carrier Nat. Travel Agent Nat. Air Carriers Luxury Hotels Excursion Operators Tour Operator Cruise Nat. Tour Operator Ground Trans-portation Large Hotels Local Guides Independent Local Tour Operator Small Hotels Retail Natural Assets in Tourist Destinations Flora/Fauna, Environment, Historical Sites, Identity Groups

Upgrading Trajectories in the Tourism GVC (IV) Adding Tourism Types (Product Upgrading): Countries expand offerings by developing tourism in different regions or by cultivating a particular tourism product such as „sea, sand, and sun“ or „medical“ tourism

(IV) Adding TourismTypes Outbound Country Inbound Country Distribution Intl. Transport Distribution Regional Transport Lodging Excursions Travel Agent Intl. Air Carrier Nat. Travel Agent Nat. Air Carriers Luxury Hotels Excursion Operators Tour Operator Cruise Nat. Tour Operator Ground Trans-portation Large Hotels Local Guides Independent Local Tour Operator Small Hotels Retail Natural Assets in Tourist Destinations Flora/Fauna, Environment, Historical Sites, Identity Groups

Upgrading Trajectories in the Tourism GVC (V) Adopting ICT (Process Upgrading): Firms, country marketing boards adopt IT such as website design and computer reservation systems

(V) Adopting ICT Outbound Country Inbound Country Distribution Intl. Transport Distribution Regional Transport Lodging Excursions Travel Agent Intl. Air Carrier Nat. Travel Agent Nat. Air Carriers Luxury Hotels Excursion Operators Tour Operator Cruise Nat. Tour Operator Ground Trans-portation Large Hotels Local Guides Independent Local Tour Operator Small Hotels Retail Natural Assets in Tourist Destinations Flora/Fauna, Environment, Historical Sites, Identity Groups

Workforce Development (I) Entry in the Value Chain Depending on the development level of the country, the workforce takes on low- to mid-skilled positions in all subsectors. Being able to meet international customer services standards is key. Skills Preparation: Short training for low skilled positions and formal education for higher level jobs. Emphasis on soft skills Institutions: Private Sector, Government, NGO/Multilateral organizations

(I) Workforce Development Outbound Country Inbound Country Distribution Intl. Transport Distribution Regional Transport Lodging Excursions Travel Agent Intl. Air Carrier Nat. Travel Agent Nat. Air Carriers Luxury Hotels Excursion Operators Tour Operator Cruise Nat. Tour Operator Ground Trans-portation Large Hotels Local Guides Independent Local Tour Operator Small Hotels Retail Natural Assets in Tourist Destinations Flora/Fauna, Environment, Historical Sites, Identity Groups

Workforce Development (II) Upgrading within the Tour Operator Segment Workers are trained for technical and safety requirements of excursions and guides for incoming agents have training in natural asset knowledge. Incoming agents need marketing and coordination training. Skills Preparation: Formal short training and university degrees for national tour operators Institutions: Private Sector, Government, Tertiary education institutions

(II) Workforce Development Outbound Country Inbound Country Distribution Intl. Transport Distribution Regional Transport Lodging Excursions Travel Agent Intl. Air Carrier Nat. Travel Agent Nat. Air Carriers Luxury Hotels Excursion Operators Tour Operator Cruise Nat. Tour Operator Ground Trans-portation Large Hotels Local Guides Independent Local Tour Operator Small Hotels Retail Natural Assets in Tourist Destinations Flora/Fauna, Environment, Historical Sites, Identity Groups

Workforce Development (III) Upgrading within the Hotel Segment Workers need training in hotel services, back office, and management. There is often a lack of senior management positions, and demand for middle management and hotel services is strong. Skills Preparation: Short training (formal or on-the-job) and university degrees for higher positions Institutions: Private Sector, Tertiary education institutions

(III) Workforce Development Outbound Country Inbound Country Distribution Intl. Transport Distribution Regional Transport Lodging Excursions Travel Agent Intl. Air Carrier Nat. Travel Agent Nat. Air Carriers Luxury Hotels Excursion Operators Tour Operator Cruise Nat. Tour Operator Ground Trans-portation Large Hotels Local Guides Independent Local Tour Operator Small Hotels Retail Natural Assets in Tourist Destinations Flora/Fauna, Environment, Historical Sites, Identity Groups

Workforce Development (IV) Adding Tourism Types (Product Uupgrading) Workers need to learn international standards and technical skills and they are trained according to the product Skills Preparation: Short training, university degree Institutions: Private Sector, Government, Tertiary education institutions

(IV) Workforce Development Outbound Country Inbound Country Distribution Intl. Transport Distribution Regional Transport Lodging Excursions Travel Agent Intl. Air Carrier Nat. Travel Agent Nat. Air Carriers Luxury Hotels Excursion Operators Tour Operator Cruise Nat. Tour Operator Ground Trans-portation Large Hotels Local Guides Independent Local Tour Operator Small Hotels Retail Natural Assets in Tourist Destinations Flora/Fauna, Environment, Historical Sites, Identity Groups

Workforce Development (V) Adopting IT (Process Upgrading) Workers need to apply and maintain website design and computer reservation systems Skills Preparation: Short training, technical degrees, and university degree Institutions: Private Sector, Tertiary education institutions

(V) Workforce Development Outbound Country Inbound Country Distribution Intl. Transport Distribution Regional Transport Lodging Excursions Travel Agent Intl. Air Carrier Nat. Travel Agent Nat. Air Carriers Luxury Hotels Excursion Operators Tour Operator Cruise Nat. Tour Operator Ground Trans-portation Large Hotels Local Guides Independent Local Tour Operator Small Hotels Retail Natural Assets in Tourist Destinations Flora/Fauna, Environment, Historical Sites, Identity Groups

Thank You