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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 Presentation Outline Tourism in Asia. Tourism and Poverty Reduction.

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Workshop on expanding the role of tourism in poverty reduction 24 october 2007 nuku alofa l.jpg
Workshop on Expanding the Role of Tourism in Poverty Reduction24 October 2007Nuku’alofa

Poverty Reduction through Tourism – The Experiences in Asia

Ryuji Yamakawa

UNESCAP


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Presentation Outline Reduction

  • Tourism in Asia.

  • Tourism and Poverty Reduction.

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

  • Challenges.

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


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Tourism in Asia Reduction

  • 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.


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Tourism and Poverty Reduction 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.


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How Tourism Helps the Poor Reduction

  • 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.


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Lao PDR Reduction


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Tourism in Lao People’s Democratic Republic ReductionRevenue and rank of various Lao industries (revenue in $US million)


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Case Study: Pro-poor Community-based Tourism ReductionDevelopment 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).


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Case Study: Pro-poor Community-based ReductionTourism 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.


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Case Study: Pro-poor Community-based Tourism ReductionDevelopment 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.

  • Ethnic minorities participation programme.

  • Marketing and promotion plan.

  • Promotion of community-based tourism networks and Eco-tourism Stakeholder Associations.


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Case Study: Pro-poor Community-based Tourism ReductionDevelopment 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.



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Financial Summary for Destinations and Tour Operators ReductionMarch 2005 – February 2006


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Summary of Benefits Reduction

  • 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.


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Lessons Learned Reduction

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.


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Lessons learned: Reduction

  • 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.


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Lessons learned: Reduction

- 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.


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Lessons learned: Reduction

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.


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Challenges Reduction

  • 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.


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Recommendations Reduction(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.


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

  • Identify the potential contribution of tourism to the achievement of the Millennium Development Goals;

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

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

  • Incorporate tourism into poverty reduction strategies.


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(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;


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(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.


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Thank You reduction;


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