presentation on market linkages
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Marketing Linkage Of Tourism &
hospitality sector
Presented By: Ravindra Singh Krishna, (MA Tourism Administration III Semester)
Tourism provides a wide range of economic opportunities, especially for developing and least developed countries:
Transport, communications, infrastructure, education, security, health, immigration, customs, accommodation, agriculture and creative industries
Tourism
Inclusive Tourism
Aim?•to foster linkages and interaction between the different actors in the tourism industry•to form partnerships with private actors and stimulates the local economy•to promote the integration of women and the active involvement of local communities•to emphasise sustainability by taking environmental, social and economic factors into account
How?•by integrating poor local communities in tourism value chains through active entrepreneurial participation•by ensuring tourism products/services meet international requirements•by providing market expertise, capacity building, policy advocacy, and formal market linkages•by working with existing tourism destinations and supply sectors
THE TYPICAL VISITOR JOURNEY
A SIMPLIFIED TOURISM VALUE CHAIN (EX. INDIA)
United Nations Steering Committee on Tourism for Development
Delivering as One for Tourism
The SCTD is an innovative approach to Delivering as One: Delivering as One for Tourism, as a sectoral approach. It is a transformational partnership.
SCTD main objectives:
1. Support Developing countries needs for implementing tourism for development in an integrated approach, building on the strengths of each UN agency
2. Monitor progress of development through DTIS (Diagnostic of Trade Integration Study), as well as through new econometric models
3. Mobilize necessary financial resources through existing funding mechanisms (such as EIF), and work towards the creation of a Multi Donors Trust Fund for Tourism (for LDCs, and countries -ODA eligible).
4. Mainstream tourism in the global development agenda, as an instrument for development, poverty reduction and a green growth.
SCTD Tourism Services Portfolio “Tourism for Development”
Integrated Tourism Development
Areas of intervention Implementing agencies
UNWTOITC
UNDPUNEP
ILOUNESCOUNIDO
UNCTADWTO
The SCTD provides specialized tourism assistance aimed to maximize tourism’s capacity to support countries in reaching their development goals, while preserving their cultural and environmental assets. The Services Portfolio on Tourism for Development compiles the services available to LDCs and developing countries.
The Services Portfolio makes available over 50 types of services organized around four pillars:
Encouraging human resources development
BBuilding good governance and sustainability in tourism
Promoting investment in the tourism economy
Fostering the poverty reduction impact of tourism
1
2
3
4
3. Fostering the poverty reduction impact of tourism
Reducing poverty by developing value-chain linkages between the tourism industry and local producers of goods and services in LDCs
A. Rationale for working on business linkages for poverty reduction
-90% of DTIS linked to tourism state the creation of business linkages as key challenge.-Increasing interest by hotel chains, restaurants and tour operators to invest more in local sourcing.-Limited capacities and skills of entrepreneurs to meet quality requirements of hotels, restaurants and tour operators.
B. Objective of joint support
- Maximise the tourism industry’s positive impact on local producers and service providers & entrepreneurs (e.g. agro-food, creative industries, services).- LDCs able to take advantage of the complementary institutional and technical strengths of the different SCTD/UN Agencies (ITC, UNWTO, UNCTAD, UNDP and ILO).
3. Fostering the poverty reduction impact of tourism
Applying an integrated approach to developing sustainable & inclusive business linkages
A. In-depth feasibility assessment identifying products and services currently sourced from abroad by the tourism industry that could potentially be met by local supply.
B. Facilitate stakeholder meetings to identify business opportunities for the tourism industry and how a demand-driven approach can link them with local producers.
C. Enhance supply capacity, consistency and quality characteristics of local products and services to meet demand requirements of tourism industry and their customers.
D. Cross-cutting: Strengthen support services by trade and tourism support entities and affected communities through the development of institutional capacities.
ASSESSMENT OF TOURISM VALUE CHAIN & SERVICE PROVIDERS
PRO-POOR INCOME MAPPING
WsP: woman a significant proportionWiM: Women in majorityEM: Ethnic minority
Linking agriculture to tourism markets
The Module on Agriculture illustrates possible interventions and partnerships between agro products and the tourism industry .
Aim: To provide farmers and fishermen with the tools they need to assess the tourism market, and buyers with the skil ls to develop sustainable partnerships with local producers.
The target audience:•Representatives of farmer community institutions•Potential and existing private sector partners•Government representatives involved in
the tourism sector or other related industries•Local support organizations (NGOs)
Linking environmental management and climate change to tourism markets
The Environment Management and cl imate change module shows how to manage tourism developments optimally in terms of the environment.
Aim: To encourage governments, businesses, communities and people to ‘act locally while thinking globally’. Information on eff icient and effective energy use, reduction in wastes, recycl ing and re-use and guidel ines on environmental management for eco-hospital ity .
The target audience:•Micro, small and medium-sized enterprises (MSME’s)•Producer groups, governmental bodies •Community institutions & NGOs•Tourism industry (Tour operators, Hotels, Restaurants)
Linking artists to tourism markets
The artist ic-cultural training module shows ways to develop local artistic and cultural services and marketing these through the tourism value chain.
Aim: to develop and market local artistic and cultural services.
The target audience:•Public sector offices•Private sector associations •NGOs supporting the artistic sector•Artists’ associations/organizations•Private tourism sector (Hotels, Tour operator)•Individual artists
Linking handicraft to tourism markets
The Module on Handicraft products indicates ways for artisans on how to adapt their products to international requirements (quality, trends, design…) and link their products to tourist markets.
Aim: to increase the artisans’ income and to provide facilitators with the know-how to develop sustainable business linkages between handicraft producers and the tourism markets.
The target audience:•Micro, small and medium-sized enterprises
(MSME’s)•Producer groups and associations•Governmental bodies •NGOs supporting the craft sector
Linking hospitality to tourism markets
The Hospital ity Management manual describes how the hospitality and catering industry operates optimally to fulfil guest expectations and needs.
Aim: To establish an appealing and suitable teaching method for tourist establishments in developing countries focus on typical gaps and barriers.
The target audience:•Micro, small and medium-sized enterprises
(MSME’s)•Community institutions and NGOs •Tourism industry (Hotels, Restaurants)
Impact Measurement Tool
Tailor-made for the fol lowing sectors:
• Agro-food products• Creative Industries• Inclusive Tourism
Undertaken at 3 stages of the project:
• start, prior to project implementation (basel ine)
• half-way to be able to take corrective actions
• completion of project in order to assess final impact
Face to face interviews with beneficiary households
Survey
A. Social indicatorsB. Economic indicatorsC. Community development D. Project-specific information (agriculture, textile or tourism sector)
Social indicators:
- Housing situation- Literacy and education
Economic indicators:
- Annual income- Ownership of assets/livestock
Community development: indicators:
- Nutrition- Access to facilities (education, infrastructure, health services) -Membership of co-operatives
Product-specific information:
- Materials used and availability- Environmental impact
Indicators
EXAMPLES OF APPLYING THE IMT -RESULTS OF INCLUSIVE TOURISM PROJECT IN INDIASOCIAL INDICATORS: EDUCATION LEVEL – FAMILY MEMBERS
RESULTS: DECREASE IN ILLITERACY
37%
22%
11%
5% 5% 5%10%
4%2%
10%
47%
12%8% 7% 5% 5% 5% 2%
0%
10%
20%
30%
40%
50%
Illiterate Basic education
not completed
High school
completed
Pre-school High school not completed
Basic education completed
Literate University completed
University not
completed
% of total beneficiaries
Education level - family members
2005 2007
RESULTS: APPLYING THE IMT
ECONOMIC INDICATORS: FAMILY INCOME LEVEL
RESULTS: INCREASE OF HOUSEHOLDS INCOME
7%
32%27%
11%
4% 3% 4%1%
10%6%
22%
39%
14%
6% 5%2% 1%
6%
0%
10%
20%
30%
40%
50%
Up to 1/2 MS
1/2 - 1 MS 1 - 2 MS 2 - 3 MS 3 - 5 MS 5 - 10 MS More than 10 MS
No income Doesn't know/No
answer
% of total households
Family income level
2005 2007 MS : minimum salary
learnt
• Economic sustainability:• Focus on income generating backward linkages• Create corporate linkages on local and international level to achieve
win-sin situation (Cruise ship companies, Hotel chains, etc.)• Tap on existing tourism destinations• Work only with commercially viable and already existing sectors
• Coordinated assistance by involving several UN agencies (SCTD)• Use enhanced tourism supply capacity as spring board for exports
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