1. PAN AFRICAN WORKSHOP ON TOURISM DEVELOPMENT AND POVERTY REDUCTION
INCLUSIVE TOURISM: OPPORTUNITY GUIDELINES FOR THE TOURISM-LED POVERTY REDUCTION PROGRAMME
PAN AFRICAN WORKSHOP ON TOURISM DEVELOPMENT AND POVERTY REDUCTION
Kigali, Rwanda
25-27 January 2010
(Photo: Anna Spencely, ITC 2009)
Trevor Sofield
Professor of Tourism
University of Tasmania
Australia.
Consultant for the ITC

2. Principles of the Tourism-led Poverty Reduction Programme
Acknowledgements: This presentation has been drawn in large part from working with the ITC for five years, material provided by the ITC including a Manual prepared for the ITC entitled:
Tourism-led poverty reduction programme
Opportunity study guidelines
Caroline Ashley, Jonathan Mitchell and Anna Spenceley
ITC 2009
and material prepared by the UK Overseas Development Institute for a joint workshop with ITC on Value Chain Analysis held in Nairobi in May 2009.
Export-led Poverty Reduction Programme:

3. Principles of the Tourism-led Poverty Reduction Programme
In order to contribute to the Millennium Development Goal of reducing by half the proportion of people living in extreme poverty by 2015, the mission of the International Trade Centre’s (ITC) Tourism-led Poverty Reduction Programme (TPRP) is:
“To link poor communities with promising products and services to markets using technical support, in order to achieve a direct impact on their economic development.”

4. Tourism-led Poverty Reduction Programme
The programme aims to match the demand for particular labour-intensive products and services with the capacities of poor communities, by creating new job and income generation opportunities.
Responding to formal requests from countries for technical assistance, the TPRP operates through pilot projects in countries in sectors that offer the best leverage for poverty reduction, including tourism (ITC, 2005).
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5. Poverty and Tourism
Tourism as a system has extensive linkages into other sectors and it can generate substantial inflows of foreign exchange and contribute to general economic development with potential for improving the livelihood of impoverished communities.
Tourism can stimulate a wide range of economic opportunities in and across sectors including transport, communications, infrastructure, education, security, health, immigration, customs, accommodation, agriculture and culture.
(OMT/UNWTO Secretariat, 2002)

6. Poverty and Tourism
Many organisations have been seeking ways to enhance the impacts of tourism on poor people in recent years.
Specific impetus was given to this objective with the formulation of “Pro Poor Tourism” in 1999 by a research group from DFID (Department for International Development (1999) Tourism and poverty elimination: untapped potential, DFID).
The UN World Tourism Organization embraced the concept of tourism and poverty alleviation in 2002 and launched its program at the UN World Development Conference in Johannesburg in 2004, which it called STEP (Sofield, De Lacy, Lipman, and Daugherty, Sustainable Tourism ~ Eliminating Poverty (STEP). An Overview. Brisbane: CRC for Sustainable Tourism).
SNV acts as technical adviser to UNWTO for its STEP Program.

7. Poverty and Tourism
The TPRP is a further advance in ways to tackle poverty alleviation through tourism.
While the initial focus tended to be on micro level community projects, our understanding of the opportunity provided by mainstream tourism to benefit the poor has grown (Mitchell and Ashley, 2008).
• Where local supply chains and indigenous enterprise are strong, and out-of-pocket tourism expenditure high, incomes to the poor can equate to as much as 1/4 to 1/3 of destination-level tourist expenditure (Mitchell and Ashley, 2007).
• Strong pro-poor impact is not automatic; the ‘trickle-down effect’ may have little impact on the poorest and most vulnerable members of a community.

8. Poverty and Tourism
Positive and deliberate interventions are necessary and they can significantly enhance the impact of tourism on poor people.
• Achievements in community-based tourism enterprises (CBTE) have often been disappointing.
• In order to achieve poverty impacts at scale, development practitioners need to engage with mainstream tourism and this is a key principle of the approach by ITC to tourism development and poverty reduction.

9. TPRP OPPORTUNITY GUIDELINES
As Fabrice Leclercq noted, the TPRP Guidelines are structured around three different phases.
Phase 1. Diagnosis of current situation and context:
This phase includes tools to map the tourism value chain (or economy of the destination), and the participation of the poor within it.
The purpose here is to understand financial flows and how the tourism sector currently works.
This phase also helps to understand the policy and regulatory context and the existing tourism market.

10. TPRP OPPORTUNITY GUIDELINES
The TPRP Guidelines are structured around three different phases.
“Phase 2. Project opportunities, prioritisation and feasibility:
This phase includes a systematic approach to develop a ‘long list’ of project options.
It then guides the move towards a ‘short list’ of high priority interventions that should be implemented, by applying specific criteria that include the likely impact of the intervention on poverty.

11. TPRP OPPORTUNITY GUIDELINES
The TPRP Guidelines are structured around three different phases.
“Phase 3. Project planning:
This phase is used to package proposed interventions into bankable projects that can be assessed by potential financiers.
It provides a structure for reports, and tools to assist in developing institutional arrangements, targets and indicators for monitoring, and also project budgets.

12. TPRP OPPORTUNITY GUIDELINES
Experience over a number of years by the ITC in implementing tourism-oriented poverty reduction projects has revealed the power of tourism value chain analysis in identifying optimum situations and conditions in which to intervene.
Definition: What is a value chain?
‘The value chain describes the full range of activities which are required to bring a product or service from conception, through the different phases of production (involving a combination of physical transformation and the input of various producer services), delivery to final consumers, and final disposal after use.’
Source: Kaplinsky & Morris 2004

13. What is a value chain? Value chain mapping as a participatory exercise
Good way of organising a chaotic reality;
Means something to real people in tourist sector;
Gives us the tools to engage with real tourist destinations;
Useful institutional model (governance & power relations);
Enables comparisons with different products (fair trade coffee anyone?); and
Useful economic model for development practitioners (to illustrate opportunities to make pro-poor interventions).

14. What is a value chain? Coordination of services: Travel agent
Advising
tourist on
product,
contract
Provide
accomo-
dation,
food etc.
organize
experience,
event
Transport
to site
Transport
from site
Travel agent
Bus company
Site operator,
Cultural group
Bus company
Hotel
Coordination of services:
Tour operator
Local tourism board
Source: from GTZ

15. What is a value chain? Creating Service capacity Product development
& skills
Service
capacity
Provide
Service
service
providers
Tourism Service Providers
Clients
Identification of
Partners, contracts
investment
Product
design / plan
Capacity
& skills
Service
capacity
Provide
Service
Package Providers / Tour Operators
service
providers
Tourism Service Providers
Clients
Capacity
& skills
Service
capacity
Provide
Service
service
providers
Tourism Service Providers
Clients
Creating
Service
capacity
Product
development
Individual tourism service provision
Source: GTZ

16. What is a value chain? The important parts… The tourist;
Different nodes (accommodation, excursions, etc);
Direct service providers (tour operators, taxis, etc);
Supply chains & related industries (food, craft, etc); and
Supporting institutions.

17. The 4 main Tourism sub-chains or Nodes are: Accommodation (Hotels)
Food (Restaurants, intermediaries, farmers)
Excursions (Tour operators, transports, communities)
Handicraft (producers, vendors)
Photos: Trevor Sofield

18. A supply chain for craft production
This diagram shows the links in the supply chain that allow a tourist to purchase a wooden sculpture from a local artisan.
Source: Spenceley, Ashley & de Kock (2009) Tourism-Led Poverty Reduction Programme: Core Training Module. Geneva: ITC., figure 8, p.29) Photo: Makonde carving, Tanzania: Trevor Sofield

19. TRAINING MODULES
In order to disseminate the expertise and body of knowledge accumulated by the ITC through its inclusive tourism approach to reducing poverty it has produced a series of Train-the-Trainer Handbooks which set out frameworks and operational guidelines for these undertaking pro poor tourism interventions in these nodes and several others as well.

20. “The Core Manual on Enhancing Local Community Involvement in the Tourism Sector
provides an introduction to the tourism sector, and how it can contribute to poverty reduction; an overview of potential involvement of local people and ways to expand the
tourism supply chains, while recognising socially and environmentally sustainable practices; and the potential linkages that can be created between local people and the tourism sector, and potential costs and benefits: (Spenceley, Ashley & de Kock, 2009, ITC).

21. The aim of the TPRP handicraft module is:
To show ways how handicraft producers in developing countries can be better integrated in the tourism value chain in order to increase their income; and
To provide facilitators with the know-how to develop sustainable business linkages between handicraft producers and tourism markets.

22. The “Hospitality Management” manual is intended to be a tool to teach trainers on how
to train hospitality employees.
Trainers will need to communicate how the hospitality and catering industry operates optimally while fulfilling guest expectations and needs. The main objective is to establish a teaching method which is suited to tourist establishments in developing countries and allow trainers to focus on gaps existing in the development of the tourist sector of developing countries (Ecole Hôtelière de Lausanne, Switzerland, & Daniel Charbonnier, ITC, 2009)

23. “The agricultural training module aims to impart an understanding of the agricultural sector as a whole, as well as the potential linkages that can be created between poor farmers and the tourism sector, with their prospective costs and benefits. The target audience includes representatives of community institutions, potential and existing private sector partners, government representatives involved in the tourism sector or other related industries, and local support organisations (NGOs)” (Andrew Rylance, Anna Spenceley, Jonathan Mitchell, & Henri Leturque, ITC 2009) .

24. The nine steps of tourism value chain analysis
Through the TPRP the ITC has formulated world class opportunity study guidelines which use the value chain approach as the basis for interventions that have a strong probability of sustainability as measured by a range of indicators – economic, social, environmental, commercial.
There are nine steps in the TVCA as refined by the TPRP, and over the next two and a half days the Workshop will proceed to familiarize participants with these steps. 9 8 7 6 5 4 3 2 1

25. The nine steps of tourism value chain analysis
Phase
Step
What to do?
Why?
Phase 1: Diagnosis
Step 1
Preparation
To define the destination, target group of poor, and the project team
Step 2
Map the big picture: enterprises and other actors in the tourism sector, links between them, demand and supply data, and the pertinent context
To organise a chaotic reality, understand the overall system
Step 3
Map where the poor participate
To avoid erroneous assumptions about poor actors
To take account of the less visible suppliers
Step 4
Conduct fieldwork interviews in each node of the chain, with tourists and service providers
To provide data and insights for Steps 5 to 8
Step 5
Track revenue flows and pro-poor income
Estimate how expenditure flows through the chain and how much accrues to the poor
Consider their returns and factors that enable or inhibit earnings
To follow the dollar through the chain down to the poor, and how assess how returns can be increased
Phase 2:
Opportunities
Step 6
Identify where in the tourism value chain to seek change: which node or nodes?
To use Steps 1 to 5 to select areas ripe for change
To focus Steps 6 to 8 down to specific areas
Step 7
Analyse blockages, options, and partners in the nodes selected, to generate a long list of possible interventions
To think laterally and rationally in generating the range of possible projects
Step 8
Prioritise projects on the basis of their impact and feasibility
To generate a project shortlist, comprising projects most likely to deliver impact
Phase 3: Planning
Step 9
Project planning
How to package selected projects for funders
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