africa region tourism strategy: transformation...

Transformation through TourismAFRICA REGION TOURISM STRATEGY:

Africa is on the moveAfrica is poised for a growth takeoff,

much as India was 20 years ago and

China was 30 years ago.

The Africa region is on the move

Real GDP rose 4.9% each year from 2000 to 2008, faster than the 3% global average.

At US$1.6 trillion, the collective GDP of Africa is almost equal to that of Brazil or Russia.

Intra-regional cooperation is increasing.

Armed conflicts have declined, democracy is on the rise, macroeconomic conditions have improved, and microeconomic reform is underway across the region.

Africa has experienced unprecedented economic growth over the last five years.

This is the Need > New jobs

There are currently more than 200 million unemployed young people in Sub Saharan Africa and 10 million more job seekers every year.

The Africa Finance and Private Sector Development unit aims to create 130 million jobs by 2020, increase productivity, involve young people, and lay the foundations for BRIC-style development.

Tourism is a catalyst for this positive change.

new jobsNEED

This is the Opportunity > Why Tourism

Tourism is an effective tool for job creation, development, and economic growth.

in 2010, tourism worldwide will generate:

OF THE

WORLD’s

SERVICE

EXPORTS30%

OF TOTAL

WORLD

EXPORTS6%

OF ALL ECONOMIC ACTIVITY

OF ALL

JOBS6%-7%

5%and


Tourism is one of the largest and fastest growing sectors of the world economy.

The share of international tourist arrivals received by emerging and developing regions has increased from 32% in 1990 to 47% in 2009.

In 2007, tourists spent US$295 billion in developing countries, almost three times the total of international development assistance.

The Transformational Effect of Tourism:Thailand (1960–2005)

10,000

0

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Vis

itor R

ecei

pts

(US$

M)

Year

1969Tourism Organization of Thailand set up by the

Thai government

1977-1981Support for tourism to increase foreign exchange earnings and

reduce trade deficit

1982Tax breaks to stimulate

hotel construction

1989-1997Surge in foreign direct

investment and in public investment in infrastructure

tourism in thailand:

OF GDP

6%OF THE WORKFORCE

15%-20%EMPLOYS

Demand for Africa’s tourism products keeps growing.

Arrivals to Sub Saharan Africa have grown over 300% since 1990.

From a small base of just 6.7 million visitors in 1990, Sub Saharan Africa (SSA) attracted 28.1 million visitors in 2009.

For the past three years, tourism to SSA has been growing faster than to any other region in the world.

Africa was the only region whose tourism arrivals grew during the global economic crisis.

This is the Opportunity > Why Tourism in SSA > demand

From a small base of just 6.7 million visitors in 1990, Sub Saharan Africa (SSA) attracted 28.1 million visitors in 2009.

For the past three years, tourism to SSA has been growing faster than in any other region in the world. Between 2007 and 2008, tourist arrivals to Africa increased by 4.4%, more than double the world average for that period. Between 2008 and 2009, tourist arrivals to Sub Saharan Africa increased by 3.4% at a time when the world average was –4.2%. Africa was the only region whose tourism sector grew during the world economic recession.

1990 2009

28.16.7

mill

ions

of v

isito

rs to

SSA

Tourism is complex. It needs to be managed.

When tourism growth goes unmanaged the result can be:

unsustainable use of natural, cultural, and social asset base

increased crime, income inequality, and the mistreatment of women and children

increased reliance on imported goods and services

There are risks involved in tourism development, but the risks of not being involved are greater.

This is the Opportunity > Why Tourism in SSA > potential

Vast tourism resources can become economically productive assets.

businesstourism

nature/adventure tourism

cultural heritage tourism

safari tourism

beachtourism

intra-regional tourism

Diasporatourism


ADVANTAGE Managed sustainably, tourism is an effective development tool.

Foreign Exchange Earnings

Cross-sector Linkages

SME Growth

Diversificationof Exports

BiodiversityConservation

SocialInclusion andOther Social

Benefits

PovertyAlleviation

CulturalHeritageBenefits

Technologyand SkillsTransfer

Direct andIndirect

Employment

TOU

RISM

GRO

WTH

One in twenty of all jobs in SSA are in travel and tourism.

Women manage more than 50% of hospitality businesses in SSA.

In Mali, Ethiopia, Lesotho, Tanzania, and Uganda women make up more than 70% of hotel and restaurant employees.

Experience shows tourism creates productive employment for young people; 43% of tourism employees in the EU are under 35 years old.

This is the Opportunity > Why Tourism in SSA > what tourism can do

OPPORTUNITY new jobs

The vision is Transformation through Tourism :Harnessing tourism for growth and improved livelihoods.

The Africa Region Tourism Strategy provides a framework to address persistent constraints.

From Constraints to Interventions > Framework (here are the interventions)

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SUCCESSFUL TOURISM SECTORS

STRONG FOUNDATIONHealth, Safety, Security, Political Support

INSTITUTIONAL WEAKNESSES

UNPREDICTABLE BUSINESS ENVIRONMENTS

INADEQUATE ACCESS

PRICE/VALUE MISMATCH

LOW LEVEL OF LINKAGES

CONSTRAINTS AFRICA REGION TOURISM STRATEGY


POLICY REFORMS 1

Goal:To achieve a positive business enabling environment through policy reforms.

What we will offer:Policy and regulatory framework assistance, tourism monitoring assistance, public/private dialogue, advanced research, sector diagnostics, rapid tourism assessments, crisis response and recovery.

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ESSUCCESSFUL TOURISM SECTOR


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ESSUCCESSFUL TOURISM SECTORS



CAPACITY BUILDING 2

Goal:To empower client country tourism ministries, boards, associations, and stakeholders to provide quality service and make better use of tourism knowledge and information.

What we will offer:Technical assistance, south-south exchanges, MSME training, technical/vocational education, institutional capacity assessments, and entrepreneurship initiatives.

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PRIVATE SECTOR LINKAGES 3

Goal:To create forward and backward linkages between tourism and other sectors of the economy to stimulate enterprise development.

What we will offer:Value-chain mapping and analysis, partnership development (PPPs), matching grants for MSMEs, support to professional associations, and access to finance.

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PRODUCT COMPETITIVENESS 4

Goal:To improve access, upgrade infrastructure, and improve destination positioning.

What we will offer:Growth poles and cluster development, product innovation and competitiveness, infrastructure planning and upgrading, marketing assessment and assistance, and partnership development (PPPs).

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Some countries have been involved in tourism for more than five decades.

Other countries are just emerging as tourism destinations.

Fragile states and transition economies have distinct travel and tourism needs.

Tourism destinations are dynamic and their needs change over time.

Exploration

Involvement

Development

Institutionalization

Stagnationor Release

Rejuvination

Decline

TOU

RIS

M

TIME

Different solutions are needed for different destinations.

World Bank Funded Projects: Case Studies

Indonesia: Bali Tourism Project 1974-1984

Integrated beach and cultural tourism (US$16 million)

Utilized vacant scrub land

Planned and regulated ‘green’ land use

Generated 6,000 direct and 3,000 indirect jobs

Tunisia: Tourism Project 1972-1980

Developed tourism infrastructure in six zones (US$24 million)

Focused on developing entrepreneurial skills

Generated US$276 million of annual foreign exchange earnings

Created 8,700 direct and 8,000 indirect jobs

How Will the Strategy Be Delivered?

DELIVERY platforms

Institutional reforms

Reimbursable technical assistance

Policy notes

Regional forums

South-south exchanges

Cluster planning

Advisory Services

Growth poles

Business enabling environment

PPPs

Capacity building

Tourism product development

Access to finance

Lending

Tourism database

Sector diagnostics

Benchmarking

Economic analysis

Case studies

Knowledge

How We Will Work: Tourism Stages and Interventions

From Constraints to Interventions > What Will Work Best Where?

Pillar

1 Policy Reforms 2 Capacity Building 3 Private Sector Linkages 4 Product

Competitiveness

Stag

e of

Tou

rism

Dev

elop

men

t

CONSOLIDATING

• Tourism monitoring assistance

• Land reform

• Business enabling policy reform

• Public/private dialogue

• Advanced research

• Joint research projects

• South-south exchanges

• Technical/vocational education

• MSME training

• Entrepreneurship initiatives

• Integrated value-chain strengthening

• Partnership development (PPPs)

• Matching grants for MSMEs

• Access to finance

• Growth poles and clusters

• Product innovation and competitiveness projects

• Partnerships

• Infrastructure upgrading

EMERGING

• Sector diagnostics

• Investment policy

• PPP policy

• Business enabling policy

• Implementation research

• Institutional capacity reviews

• Tourism awareness, innovation, and entrepreneurship programs

• Technical/vocational education

• Research and analysis

• MSME training

• Value-chain analysis


• Sourcing finance

• Growth poles and clusters

• Product development

• Investment promotion


• Destination positioning assistance

• Infrastructure development

POTENTIAL

• Rapid tourism assessments

• Legislation and regulations

• Investment policy

• Crisis response and recovery

• Institutional capacity assessments

• Tourism awareness, innovation, and entrepreneurship programs

• Skill training

• Workforce planning

• Value-chain mapping


• Matching grants for MSMEs

• Support to professional associations

• Product inventory

• Product development

• Infrastructure assessment and planning

PRE-EMERGENT• Response to specific requests • Response to specific requests • Response to specific requests • Response to specific requests

Operationalizing Tourism: A Project Profile

• PPPs

• Infrastructure upgrading

• Business reforms

• Access to land

• Support for SMEs

• Product development funds

• Technical / vocational education

• Entrepreneurship

• Public/private dialogue

• Policy reform

• Data collection and analysis

Product Competitiveness

US$10 million

Tourism Business Enabling Environment

US$2 million

Access to Finance

US$6 million

Capacity/Skills Development

US$4 million

Institutional Support

US$3 million

Operationalizing Tourism: Scaling Up Our Impact

2005

US$10m

2010

US$120m

2015

US$500m

Tourism Portfolio(2005-2015)

Tourism Project(US$25 million)

1

10

20

= number of tourism projects

$10m

$2m

$6m

$4m

$3m

Product Competiveness

Business Enabling Environment

Access to Finance

Capacity/Skills Development

Institutional Support

The Strategy in Context

AFR Region

STRATEGY FRAMEWORKFOUR PILLARS ASSISTANCE PLATFORMS

Africa Region FPD

ACHIEVING IMPLEMENTATION

ACTIONS

Development of Strategic

Client Country Relationships

Internal and

External Partnerships

Prioritizing and

Implementing Interventions

Research,Monitoring

and Evaluation

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FPD Global

PracticesAfricaRegionTourismStrategy

Knowledge

Advisory Services Lending

Making it Happen

People and Resources:

Team of multi-disciplinary experts and analysts focused on tourism

Knowledge base dedicated to policy dialogue

Thematic hub encouraging internal learning

Foundation team for upcoming Global Practice: Industry Competitiveness

Partnerships:

Internal Partners: Sustainable Development, Poverty Reduction and Economic Management, Education, Environment, Transport, Human Development

Across The World Bank Group: IC, IFC, and MIGA

External Partners: UNWTO, UNCTAD, WEF, WTTC, SNV, USAID, DFID, WWF, AWF, and others

To harness tourism for growth and improved livelihoods, Africa can utilize:

How Will the Strategy Be Delivered?

Strategic public investment. This attracts private sector activity and underpins efficient and equitable distribution of tourism’s benefits.

Effective public and private organizations. These catalyze long-term investment and build the trust needed for productive public/private collaboration.

Strong partnerships, continuous commitment, and ongoing monitoring. These are critical to economically productive and sustainable tourism.

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Africa RegionFinance and Private Sector Development

africa region tourism strategy: transformation...

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