mast-nepal project (marketing assistance for sustainable tourism) impact assessment

7/27/2019 MAST-Nepal project (Marketing Assistance for Sustainable Tourism) Impact Assessment

1/27

MAST-Nepal project (Marketing Assistance for Sustainable Tourism)Impact Assessment

September 2010

Report prepared by Kristie DruczaGender, social inclusion and governance adviser for business development SNV.

This report reflects the views of the author and not necessarily those of SNV.

AcknowledgementsThank you to all the businesses who participated in this impact assessment, for honestlyanswering my questions and generously giving their time to look back and reflect on the MASTproject. Discussions on the nature of Nepals tourism industry were enlightening. While thisassessment focuses on the project, the crucial role the businesses and individuals whoparticipated in MAST played must be acknowledged as assisting to make the project sosuccessful.


2/27

Table of Contents1. Executive Summary............................................................................................32. Project Background ............................................................................................53. Scope and Methods ............................................................................................54. Limitations of the Assessment..............................................................................65. Participating Companies......................................................................................66. Results..............................................................................................................7

6.1 Innovation.........................................................................................................86.2 MAST Change Agents..........................................................................................86.3 Methodological Approach...................................................................................106.4 Supply Chain Capacity Building and Management.................................................106.5 Action Plans.....................................................................................................116.6 MAST Pillars.....................................................................................................12

6.6.1 Environmental Pillar ..................................................................................126.6.2 Economic Pillar .........................................................................................136.6.3 Socio-Cultural Pillar...................................................................................13

6.7 Attitude to Business..........................................................................................156.8 Marketing........................................................................................................15

6.8.1 Code of Conduct and Responsible Policy.......................................................156.8.2 How to Deal with International Tour Operators .............................................166.8.3 How to Develop Marketing Material .............................................................176.8.4 How to Position Yourself in the Market .........................................................176.8.5 How to Sell Responsible Travel ...................................................................17

7. Attribution and Impact Figures...........................................................................187.1 Overheads.......................................................................................................197.2 Profits & New Business......................................................................................197.3 Indirect Beneficiaries ........................................................................................20

8. Summary of Impact Figures...............................................................................229. Recommended Improvements............................................................................22

9.1 Course Content ................................................................................................ 229.2 Business Management ......................................................................................239.3 Selection Processes ..........................................................................................239.4 Marketing Incentives ........................................................................................239.5 Issues in Course...............................................................................................239.6 Location of Training Program .............................................................................249.7 Follow Up Assistance.........................................................................................24

10. Recommendations for MAST Phase II..................................................................2410.1 Longer and More Sustainable Project ...................................................................2410.2 Policy Change & Government of Nepal (GoN) ........................................................2410.3 Technical Aspects of Environmental Management ..................................................2510.4 Business Processes............................................................................................ 2610.5 Certification......................................................................................................2610.6 International Marketing......................................................................................26

11. MAST Has Immense Potential for the Local Economy ............................................27


3/27

Page 3 of 27

1. Executive SummaryIn general the MAST project can be regarded as a win-win sustainable business developmentproject. Businesses gained immense benefits and so did their staff, the local people, theenvironment, and the Nepalese economy either directly or indirectly from the project. Theproject focused on capacity building and had a sound methodological approach that motivatedparticipants and stimulated innovation. Two years after the project finished participatingbusinesses are convinced that responsible travel makes sense.

All participating businesses cited multiple benefits from the MAST project that can be broadlygrouped into the following categories: Improved business attitude; learning the benefits andvalue of being responsible; becoming more client focused and asking for feedback; improvedorganisation/planning skills; how to position your business in the market; how to developresponsible tourism products; a more developed meaning of responsible travel andsustainability; the value of marketing material development; the benefits of E-communication;the importance of motivating staff; supply chain management; how and why to teach othersabout the environment; how networking and collaboration is important for business; newbusiness ideas and inspiration; and, decreased operating costs.

To summarise some of the impact figures: Six MAST companies reduced overhead costs; tencompanies were clearly able to make a link between increased client numbers, new businessand the MAST project:

Balthali Village Resort has an additional 400 guests per year. Ghalegaun Village Resort has 40 more international tourists and 250 additional Nepali

tourists per year. Himalayan Encounters attracts an extra 70 tourists per year. Rhino Resorts receive 25% of new business from other MAST participants and since

the MAST project ended has an extra 20% of European clients per year. Three Sisters Adventure & Trekking attributes a 10% increase in business to MAST. Mowgli's Eco Adventure Tours attributes 50% of new business to MAST. USD20,000 increase in profit for one business from MAST contacts and USD168, 000

increased spend on local services and products. Everest Resort receives an additional USD3, 000 profit per annum.

And, all participants cited multiple indirect benefits including:

Dream Nepal Travel and Tours spent an additional USD1, 640 on the local economy. The Last Resort spent USD16, 400 on local produce in 2009 that used to be purchased

in Kathmandu. Everest Resort spent USD6, 850 on local products for hotel refurbishing and spend

approximately USD70 per week on local produce that used to be purchased inKathmandu.

Balthali Village Resort built the first road to Balthali and pays local guides USD70 - 140per month and local dancers USD27 54 per performance.

Dhulikhel Mountain Resort has generated USD6, 850 income for the local dance troop which has secured higher education opportunities for the dancers.

Rhino Resorts also through a local dance show generates between USD41 205 inincome for local people.

Ghalegaun Village Resort has educated approximately 5000 Nepali students onenvironmental conservation and tourism benefits and 15 honey hunters on bee

ecology and sustainable harvesting. The Last Resort has educated approximately 500 internationally wealthy students on

Nepali culture and lifestyle. Manang Tours and Travels employed 3 new staff to manage the new responsible

product he developed after MAST. Collectively MAST companies have deliberately introduced 15 women into the male

dominated tourism industry through employment.

Participants were overwhelmingly in favour of a second phase MAST project and made thefollowing recommendations: make the next project longer; focus on the enabling environment


4/27

Page 4 of 27

for responsible tourism by building the capacity of key sector players for improved responsibletourism governance (regulation and policy); create appropriate incentives within businessprocesses that promote sustainable responsible behaviour; introduce more technical solutionsfor environmental impact reduction; have a larger marketing component that not onlyincentivises responsible behaviour but educates businesses on how to market responsibletravel; and, include the introduction of a Nepali managed internationally credible responsibletravel certification scheme. Additionally, baseline data collection of business figures and

marketing should be mandatory in any phase II project to assist with credible impact data.

Given the limited impact figures available the return on investment for MAST is estimated atmore than quadruple (when considering business profit increases, overhead reductions andmoney spent on local products) showing the viability of a phase II. With additional focus onongoing mentoring, multi-actor change processes and what is required to secure business

from international tour operators, a second phase MAST project has immense potential for thelocal economy and local businesses, especially in terms of the economic flow-on affect evidentfrom the first MAST project.


5/27

Page 5 of 27

2. Project BackgroundThe Marketing Assistance to Nepal for Sustainable Tourism Products (MAST-Nepal) Project wasfunded by the European Commission (ASIA INVEST) and was managed and administered bythe Division for Technology, Industry and Economics within the United Nations EnvironmentProjectme (UNEP). SNV (Netherlands Development Organisation) and the Nepal Tourism Board(NTB) were implementing partners.

The project was implemented between August 2006 June 2008 and had a total budget of

USD379,384 made up of USD355,005 from the European Commission (EC) and USD24,378 in-kind support from the three partners UNEP, SNV and NTB.

The project was designed to expand business opportunities for tourism entrepreneurs (fromtour operators to hotels) in Nepal by building their capacity to develop and deliver responsibletourism products, understand how to market themselves as a responsible travel company andby linking them to the European sustainable tourism market. In many ways marketingincentives were used to encourage behaviour change towards more responsible businesspractices.

Four training events were held. The first focused on the principles of sustainability anddeveloped action plans for sustainable practices within their company. The second reinforcedthe principles behind sustainable business operations and finalized action plans. The thirdfocused on building capacity to market sustainable tourism products and the forth connected

the companies with the global sustainable tourism market but mainly focused on the Europeanmarket allowing MAST-Nepal companies to pursue business linkages after project completion.

Only companies who were committed to their action plans were invited to participate in thethird and fourth training events. This resulted in 23 out of the original 30 companiescompleting the project.

For the MAST project responsible tourism practices involve 3 key areas: economic - increase tourism benefits to the poor and improve the livelihoods of

the Nepalese people

environmental - minimize tourism related environmental damage socio-cultural preserve and promote the local socio-cultural lifestyle.

The project had three specific objectives:a) To build capacity within tourism intermediaries in Nepal on development of more

sustainable tourism products.b) To improve the marketing of sustainable tourism products by tourism companies in

Nepal and Europe.c) To raise awareness in Nepal and Europe for industry, public authorities and civil

society on the benefits and tools to develop, implement and market sustainabletourism activities.

An impact assessment was completed directly after the project finished and cited successfulbenefits. However, marketing and private sector development projects can have an impact lagtime of at least two years. It can take a business that long to realise profit or other benefits.So another impact assessment was conducted two years after project completition betweenJune and July 2010.

3. Scope and MethodsThe purpose of this impact assessment was to get a sense of any long-term benefits for director indirect beneficiaries from the MAST Nepal project two years after completion. In what wayshave MAST participants benefited from the project and has the project produced sustainableresults?

After some initial desk research and survey development, businesses were asked a number ofquestions that focused on the action plans developed under the MAST project; what werebusinesses still doing, what additional responsible practices has the business adopted, and


6/27

Page 6 of 27

what had stopped or changed and why. Businesses were also asked about market linkages andif MAST had assisted to develop these. As SNV would like to secure funding for a MAST PhaseII, the business interviews were also used to collect information on the businesses perceptions(with hindsight) of the MAST project and what they would like to see improved or included in asecond phase project.

The results of the business interviews are to be used for:

This impact assessment A documentary film profiling responsible tourism in Nepal

5 minute You-tube videos for the MAST Nepal website and for businesspromotion Case studies of the businesses Media and other marketing promotional activities Proposal for a MAST Phase II.

4. Limitations of the AssessmentUndertaking an impact assessment two years after project completion has some benefits aswell as some weaknesses. Many companies enjoyed being able to reflect on the project andfound their initial perceptions of the project had changed with time. Those who were initiallycritical reflected on how much they had learnt and how MAST had made some permanentchanges to their company, approach and mindset.

However, some businesses had lost the participating staff member to other employment and

were unable to answer many questions and others had forgotten commitments made or whatthey had learnt from the project and what they learnt elsewhere. Additionally, a number ofcompanies found it difficult to isolate MAST impacts from other influences. In short, the impactassessment findings have an unnatural bias towards participants with good memories andrecord keeping methods and the most interested and responsible companies.

All 23 participating companies were contacted for this impact assessment. Bandipur VillageResort was un-contactable and Gangotri Tours and Travels and Raaika Tours and Travel had acomplete staff turnover and ownership so were unable to participate in this assessment. Anadditional company, Responsible Treks, was interviewed for this assessment because it is anew company started by the MAST participant from Highlander Trekking & Expedition. 3interviews were conducted over bad telephone lines and 18 were in person. Only 4 indirectbeneficiaries were interviewed due to time and resource constraints.

Verifying information and data triangulation was not used.

5. Participating CompaniesA wide range of tourism companies from trekking to rafting, bird watching tours to bikingexpeditions, cultural heritage excursions to jungle safaris, and luxury hotel accommodation tovillage home stays all with varying degrees of sustainable business capacity participated in theMAST project. Eight businesses started their company less than ten years ago, sevenbusinesses started their company less than twenty years ago, three businesses started their

company less than twenty years ago, while three had been operating for more than twentyyears.

MAST participating company names appear below: Amazing Tours and Travels Tours and Travels Balthali Village Resort Bandipur Village resort (unable to get in contact for this assessment) Dhulikhel Mountain Resort Dream Nepal Travel and Tours Travel and tours Eco Trek International Gangotri Tours and Travels (New owner. MAST participants have left. Did not

participant in assessment.) Ghalegaun Village Resort Highlander Trekking & Expedition Himalayan Encounters


7/27

Page 7 of 27

Last Resort Manang Tours and Travels Mowgli's Eco Adventure Tours Naulo Travels Nepal Mountain Bike Tours Raaika Tours And Travels (MAST participants have left. Did not participant in

assessment.)

Rhino Resorts Social Tours

Syangboche Panaroma Resort (Everest Resort) Explore Nepal Pty. Ltd. Three Sisters Adventure & Trekking Tiger Mountains Ultimate Descent Pty. Ltd.

6. ResultsThe following sections try to segregate and elaborate on some of the main results and benefitsof the MAST project as articulated by the participating businesses two years after the projectwas completed. Quotes are used from the businesses interviewed where possible to bettercapture the participants views. In some instances, quotes are anonymous as per request fromthe business.

In general the MAST project can be regarded as a win-win sustainable business development

project. Businesses gained immense benefits and so did their staff, the local people, theenvironment, and the Nepalese economy either directly or indirectly from the project. Twoyears later participating businesses are convinced that responsible travel makes sense:

Amazing Tours and Travels explains, MAST taught us to be responsible because it isimportant and because we should give to the community but in fact we areresponsible because it is good for business. The communities are there and so weexist. Helping them ensures our sustainability.

Three Sisters Adventure & Trekking suggests that, Everyone does business for theirliving so why not combine it with helping others? It doesnt cost much. As a humanbeing we should try our best to improve.

Everest Resort articulates, If we do business we should respect others and ifpossible we have to create income for others also. If we are more responsible then itcreates satisfaction for ourself. If we try to sell something without responsibility thenit is not long lasting. Also tourists like us being sustainable.

All participating businesses cited multiple benefits from the MAST project that can be broadlygrouped into the following categories: Improved business attitude; learning the benefits andvalue of being responsible; becoming more client focused and asking for feedback; improvedorganisation/planning skills; how to position your business in the market; how to developresponsible tourism products; a more developed meaning of responsible travel andsustainability; the value of marketing material development; the benefits of E-communication;the importance of motivating staff; supply chain management; how and why to teach othersabout the environment; how networking and collaboration is important for business; newbusiness ideas and inspiration; and, decreased operating costs.

The graph below categorises these benefits and lessons according to frequency of thelesson/benefit appearing in participants answers.


8/27

Page 8 of 27

Benefits & Lessons Learned From MAST

0 2 4 6 8 10 12 14 16

Attitude to business

Benefits & value of being responsible

Client/feedback focused

Organisation/planning skills

Positioning in the market

Product development

Developed meaning of RT

Value of marketing

E communication

Motivating staff

Supply chain management

Environment teaching

Networking & collaboration

New ideas/inspiration

Decreased operating costs

MAST had 23 participants but was hopeful that it would affect the broader tourism industry inNepal so that the projects benefits would be wider than just among the direct recipients. Thisimpact assessment collected evidence that an environment for responsible travel has beenstimulated in Nepal.

6.1 InnovationOne indicator of a project affecting broader change in an industry occurs when businesses whohave not participated in the project begin to show traits or copy the behaviours of those whohave participated.

Four MAST companies (without prompting) proudly commented that they have noticed other

non-MAST companies copying what they do in terms of responsible behaviour, mostparticularly associated with working with local communities and environmental education.Another three companies (without prompting) mentioned that they have noticed othercompanies their competitors - now positioning themselves as responsible in themarketplace. To the disappointment of the MAST participants these other companies are notdisplaying any responsible behaviour. They are merely using the term responsible as amarketing gimmick because they noticed that MAST participants are attracting more business.

The fact that other businesses are copying MAST participants is evidence of the replicabilityand usefulness of MAST to the marketplace. It shows that MAST companies are regarded asinnovators and that a responsible travel approach is worthy of imitation or copying. When aproject indirectly influences market actors, aside from direct beneficiaries and their targetedbeneficiaries, it can be regarded as having successfully influenced the wider sector or market.Other examples illustrating how MAST has stimulated the environment for responsible travel in

Nepal appear in the following sections.

6.2 MAST Change AgentsEvery development project has to make certain assumptions about the socio-cultural realityduring planning and often during implementation. What a capacity building project tries toachieve is that knowledge passed onto participants is adapted by those participants to suittheir local reality. Participants begin to own the knowledge and make it work for them. Thisprocess of local adaptation leads to more culturally appropriate social change that issustainable.


9/27


10/27

Page 10 of 27

because participants need to see role models in action to capture their imagination andconfidence that they too can do more.

6.3 Methodological ApproachWhile choosing the right participants is important for a sustainable capacity building project sois the methodological approach adopted. It is easier to encourage participants to go on andimplement new things after a project than it is to create an environment where failures andmistakes are not roadblocks to innovation.

Learning collaboratively along with facilitating collective critical reflection and discussion is saidto support innovation. According to the Last Resort MAST was successful in this regard, SNVallowed us to be critical and we realized how much we learnt from the MAST project eventhough we were sceptical at first. I realize that I learnt a lot more than I realized at the time.We have good memories of the project.

When participants are put in an environment where they are not merely passive recipients ofinformation but actors in the process of knowledge development and change then they aremore likely to develop a stronger sense of collegiality and innovation. This should then lead togreater action outside the formal learning environment that affects the broader industry. Acapacity development project should aim for this methodological approach so that experientiallearning is regarded as an important step in a process and not seen as a one off if anyattempts to implement change fail.

Responsible Travel Alliance case studyThe Last Resort explains, Just after MAST we tried to start an organisation with 7 companies from MASTbut everyone wanted to do their own thing. It just didnt work so we had to stop meeting.

But Govinda (another MAST participant) and I are going to teach the other companies from the PlanetFinance training that SNV linked us with about responsible travel practice. We have given them guidelinesfor developing responsible travel practices and we will check their plans soon.

We feel that we need some way of checking if we are being responsible enough. During MAST we got lotsof ideas. So the purpose of the alliance is that we can monitor each other in terms of how responsible weare being.

We have written documents to see if we can register the alliance as a formal organisation. Lets see how itworks. I hope we can help each other with being more responsible.

The alliance is all trekking and travel companies and all from the Planet Finance France trip. They [theother businesses] seemed to see the value of being responsible from the tourism fair we attendedtogether. They just couldnt answer the tour operators questions about responsible travel as well asGovinda and I could.

6.4 Supply Chain Capacity Building and ManagementAn environment for responsible travel has also been stimulated in Nepal through supply chainmanagement. A number of MAST companies realised that in order to honestly promotethemselves as responsible, their supply chain should also be responsible.

Tiger Mountain manager, Marcus Cotton explains that MAST helped us look at thesupply chain. You cant purchase something that isnt there but you can try harder tofind things. He says that, Supply chain management is a problem if you want toreally be responsible. We go and tell our suppliers that we need to know how you

make this to see if it is environmentally friendly but they are suspicious and think thatyou want to copy their product. He has persevered and discovered that payingsuppliers within 3 days promotes trust and a better relationship with suppliers.

In another example, Dhulikhel Mountain Resort delivered some of the MAST training to theirsupply chain and also to a tourism related association. The manager organized a workshop forhis hoteliers and the Hotel Association of Nepal about what responsible travel means and howto keep premises nice and green and clean. The manager also joined the HAN environmentcommittee in 2009 and explained that it was difficult to introduce environmental changes atfirst because tourism businesses were struggling to survive with the global financial crisis.


11/27

Page 11 of 27

However, he persevered and said that MAST gave him enough information and inspiration tojoin the HAN environment committee. The manager has also started an environmental NGO,NETIF. He explains, MAST encouraged us to go in full fledge and do more and plan for it.

The fact that MAST companies have taken MAST teachings to heart and are now encouragingtheir supply chain to be responsible is clear evidence of improved capacity. Companies likeAmazing Tours and Travels has encouraged over 50 businesses in their supply chain to commit

to responsible travel. In some cases the owner of Amazing Tours and Travels has had toeducate his supply chain on the benefits of environmental and cultural preservation. There are

at least 3 hotels or guest houses plus additional restaurants and tea houses in every placethey visit that have committed to responsible actions in order to ensure Amazing Tours andTravels send them business. The vehicle hire company Amazing Tours and Travels usesensures they have economical unleaded petrol vehicles for his tour groups rather than

providing the diesel guzzling vehicles he use to hire. The Indian company he partners with forborder region tours now also try to source local guides when they arrive, rather than bringingguides with them from India. The guesthouse he uses in these remote areas now tries toconserve water in the running of the lodge even though at first the owner did not think waterconsumption was a problem for his generation. Being responsible is not just a saying, it is away of operating, and clearly some MAST companies have captured the essence of responsibletravel.

Internationally Amazing Tours and Travels has shared their responsible travel policy withpartners in Bhutan and in India and is currently discussing the policy with a Tibet partner.

Given the Chinese governments control of guides and tourism to Tibet this particular companymay only be able to make some small commitments to the policy but has been convinced byAmazing Tours and Travels that it is worth the effort. Taking MAST teachings internationally isa great outcome for a small budget development project and is clear evidence that MAST hashad an impact on the broader tourism industry and stimulated an environment for responsibletravel.

6.5 Action PlansAnother objective of the MAST project was to build capacity of tourism intermediaries in Nepalon sustainable tourism products. There is already evidence sighted above about participantsinfluencing associations and other tourism related organisations and another way thisobjective was achieved is through the commitment to responsible actions. All companies hadto commit to at least three responsible actions associated with the three MAST pillars:economic, social and environmental. These action plans involved different stakeholders from

staff to local businesses and people. The reason MAST started with 30 companies and endedwith 23 is because seven companies did not demonstrate commitment to their action plansand were asked to leave the project, illustrating the projects emphasis on implementingresponsible actions and that accountability processes were in place during the project.

The development and commitment to action plans was a new concept for a number of MASTparticipants. The focus on action plans and making responsible commitments taught manybusinesses the value of planning more systematically for responsible outcomes.

Himalayan Encounters explains that What MAST compelled us to do was to makecommitments. This was good because it acted as a catalyst. Some things we

hadnt planned or had put off it made us focus on. It compelled us to developaction plans that we then felt compelled to do. Before MAST we didnt do a lot ofplanning. We just normally did things on the spot.

Of the action plan commitments, training local people to be guides was the most popular with10 companies making this commitment followed by 8 companies committing to energyefficiency and 8 to buy more local produce or use more local businesses and 7 committed tobetter waste management. There were many other commitments that involved tourismintermediaries such as promoting womens empowerment, developing cultural shows andproducts that educate tourists about the local people, reduce waste consumption and promotea more diverse, locally hired workforce. Nine MAST companies said the project gave them newideas and inspired them to do more. The action plans are clearly successful. For many MAST


12/27

Page 12 of 27

companies being responsible in now a part of their main business model and they plan forresponsible results.

16 out of 20 companies met 100% of their action plan commitments and all of thesecompanies have continued to develop and implement responsible actions demonstrating theongoing affect MAST is having on these businesses and the sector. At least one third of thesecompanies were already undertaking responsible activities before MAST. For example Eco

Treks was sponsoring a local school and a disadvantaged student and Social Tours wasrunning an environmentally friendly office and a community based volunteer program. For

these more advanced companies one of the main lessons cited from the MAST project wasreassurance that they were on the right track.

As Ultimate Descent explains, MAST made us sharpen our focus, our thoughts,

and plans. We do things in a more systematized and organised way now. MASTwas eye opening in that some of the small things we were doing we should dobetter or more of because they are important. MAST helped us stick more to theresponsible tourism aspects of the business.

6.6 MAST PillarsThe action plans were developed in line with the three MAST pillars:

44 out of 74 action plan commitments concerned the environment. 17 out of 74 action plan commitments concerned the local economy. 17 action plans concerned the socio-cultural pillar and 7 of these focused on

womens empowerment.In many instances it is difficult to separate actions into the three pillars because the benefitsoverlap as the following will illustrate.

6.6.1 Environmental PillarAccording to the MAST project document the Environmental pillar is about conserving andmanaging resources, especially those that are not renewable or are precious in terms of lifesupport. This pillar requires action to minimize pollution of air, land, and water, and toconserve biological diversity and natural heritage. All respondents commented on thestrength of MASTs environmental focus: Energy efficient light globes, promoting a paperlessoffice, water safety and consumption reduction, and even kitchen garbage and waste

management was covered.

Regardless of the level of prior exposure to environmental issues all companies gained somenew knowledge and were inspired to do more to help the environment. Ghalegaun VillageResort has educated 15 honey hunters on bee ecology and sustainable harvesting practices sothat his honey collecting tours will continue. The manager from Dhulikhel Mountain Resortadvocates that we must look after the environment because it is our product.

Amazing Tours and Travels were surprised to learn that, Going sustainable doesntmean you drain your resources just that you make use of your resources in smarterways and this increases your profit margin.

Explore Nepal explains that you have to be responsible for inviting visitors to thiscountry so they do not damage the eco system or hurt the culture of this country.

He goes on to explain that tourism is generally an industry that is bad for the environment andsights the first stage of tourism involving air travel as his reference point. He says this doesnot mean the tourism industry should not help to protect the environment. For example, heplants trees for every visitor who buys a complete package tour. By doing this he reduces eachtourists CO2 emissions. He also gives funding to the local community for improved cooking

stoves which save up to 1.4 tones of CO2.

He concludes, To sustain Nepal tourism industry all business should be sustainableand not over use resources or nature.


13/27

Page 13 of 27

Even companies like Tiger Mountain who are advanced in terms of their environmentalconservation approach admit that you can always find more to do in terms of environmentalpreservation. For example, during MAST they replaced the battery torches that guests usewith wind up torches. Marcus explained that in two years we covered the cost of the torcheswith the savings from buying batteries and it helps the environment and sends a goodmessage to the guests about being more aware of the environment while they are in Nepal.

6.6.2 Economic PillarAccording to the MAST project document the economic pillar is about generating prosperity at

different levels of society and addressing the cost effectiveness of all economic activity.Crucially, this pillar is about the viability of enterprises and activities and their ability to bemaintained in the long-term. It is possible to spread tourism benefits widely throughout Nepalwhen local people, their products and businesses are included in company supply chains.

Amazing Tours and Travels explains that Before MAST we didnt care that we usedinternational brands of beer on our tours. We never suggested the local Everest Beerbecause we thought tourists wouldnt like it. But to be more culturally appropriatewe suggest tourists try the local beer and other local products and the tourists feelhappy to do this. This maybe a small contribution but when it goes to totality it doeshave direct impact on local peoples lives and the local economy.

Manang Tours and Travels is using more home stay accommodation in his local area and thisgives the home owners USD15 per night and NPR100 (USD1.3) per meal. Before this only

larger hotels would get any benefit from tour groups.

The community around Balthali Village Resort has benefited in multiple ways from the resortsdevelopment. Not only has the resort built the first road to the community which has openedup trade but the owner always gives 1-2 rupees more for vegetables than the market price.We want to keep our villages happy. It doesnt make much difference to us. My community isnow proud of the resort because it has made the village well known. The community seemshappy to return the favour as they take more pride in cleaning the rubbish from around thevillage and protect the environment which ultimately helps the resort attract more tourists.Also a number of locals now have solar energy like the resort.

Amazing Tours and Travels explains the multiple benefits from integrating the economic andsocio-cultural pillars of MAST, The local people are happy to welcome us and so are ourassociates. We used to go to a Tharu village and we were hesitant to go to this or that house

because people were not that welcoming. We felt we were intruding with their privacy or dailylife. But now we share with them and visit their museum and pay the entry fee and thisbenefits them and they have new social skills in their community and now they welcome us totheir stores. We thought we were forcing commercialization on them but now we dont feelthat because we promote local to tourists and this money helps the locals.

Action plan commitments have clearly had an affect on tourism intermediaries who nowpromote tourism in their community and assist in developing more sustainable and responsibletourism products.

6.6.3 Socio-Cultural PillarAccording to the MAST project document the socio-cultural pillar is about supporting socialprogress, respecting human rights and equal opportunities for all in society. This pillar requiresan equitable distribution of benefits, with a focus on alleviating poverty. There is an emphasison local communities, maintaining and strengthening their life support systems, recognizingand respecting different cultures and avoiding any form of exploitation.

The socio-cultural pillar of MAST encouraged companies to think about social and cultural

promotion and preservation. For example, Manang Tours and Travels developed some culturaltours that preserves the local culture which is dying out and lying in ruin. We encourage thelocals to not break down the old houses but preserve them. People do not value our traditionalarchitecture.


14/27

Page 14 of 27

Social Tours feel they are doing better on the cultural side of tourism since MAST. They showvolunteers cultural knowledge and have made tourism about cultural emersion throughactivities such as home stays. Raj, the owner, explains that it is important to make tourism apositive tool for change.

Companies like Tiger Mountain have plans to take the social pillar to a new level whereby thelocal community participates in business management processes:

Tiger Mountain - Case Study

Tiger Mountain has a long history of being a responsible resort. One new initiative worthy of mention thatTiger Mountain started after MAST is a Sustainable Action Group (SAG). SAG is a forum of Tiger Mountainemployees who want to be involved in developing and examining the companys responsible tourismpolicies. One of their ideas was to pack guest picnic lunches in recyclable containers and another was toinvolve the community in litter collection.

Most of Tiger Mountains staff are from the local area so they have great influence over the localcommunity. SAG gives them the opportunity to involve more of their family and villages in environmentalmanagement and the businesses environmental project. The next SAG meeting will discuss moving thewaste project to the local school parent management body so it will be fully integrated into thecommunity.

Tiger Mountains manager explains that a future plan is to involve community members in the SAG so thatthe resort and community are harmoniously sharing ideas and moving towards the same environmentaland social conservation goals.

Dhulikhel Mountain Resort also discovered that integrating the local community into theirbusiness ultimately helps their business. One of their action plans was to involve localdisadvantaged youth in a cultural dance show that would be performed at the resort whenthere were enough guests. The manager explains that, We can entertain our guests now andwe have a good relationship with the locals now. Business is picking up. You cannot run abusiness in Nepal without showing you are different and must include locals or you wontsurvive. You will be closed down.

The Last Resort added a community service aspect to their team building package that is soldto schools. The package now offers wealthy international school students the opportunity tointeract with the local community. The manager explains that We teach the rich kids how tolearn from poor not just that it is one way where they bring in technology and teach the poorhow to use it. In fact we make the rich kids keep their phones and gadgets at home when theyvisit the community. They stay in a poor kids house and look at how they do their farmingand other activities. The local community also gets financing from this aspect of the package.

The Last Resort is delighted by how successful the package has become. Last year we onlyhad 5 groups and already we have had 12 groups in the first half of this year. Another fewschools have made bookings and specifically asked for the community project but we haventbeen promoting it. So they must have heard about it elsewhere. I know the Dubai school hadrecommended it to another school in the UK who are coming next year because of thecommunity emersion aspect. All the schools seem to love the community aspect of the projectand the local people enjoy the experience too.

Social Tours explains how the emphasis on society and culture improved their workforce.Next time we started hiring people we talked about how we should employ women. We nowhave 3 women and 4 men in our office, 1 woman guide and we are training 2 others at themoment. Our gender ratio used to be 1-17. We talked about this issue before MAST but whenstaff heard about it from other people [i.e. during the MAST training] then they started to takeaction. Ethnicity was also an issue but now we have 5 ethnicities in the office. Five differentcompanies made commitments to womens empowerment during MAST.

The action plan commitments have led to the development of more responsible tourismproducts that promote diversity, involve more tourism intermediaries, and spread the benefitsfrom increased tourist numbers more widely throughout Nepal.


15/27

Page 15 of 27

6.7 Attitude to BusinessAside from achieving project objectives MAST has convinced a number of participants toimprove their business practices. Eight participants commented that MAST helped to changetheir attitude to business. Naulo Travels explains how his perception of business changed afterMAST. He never used to think about plastics or reducing his electricity bill or paperconsumption nor did he think about his business image, I was narrower focused before anddidnt think about sustainability and marketing. MAST taught me that I can enhance mybusiness by doing little things.

Three Sisters Adventure & Trekking commented that MAST increased their holisticview of business, We didnt think about the business as a whole before MAST. Itwas eye opening for us that it would be very good to have women everywhere: inthe guest house, working behind the desk and not just as guides. MAST widened

our focus away from just one side of the business.

The owner of Balthali Village Resort learnt some foundational business skills from the MASTproject.

He explains, I was a good guide but not a good businessman until MAST. I learnthow to improve my website and use newspapers to advertise and how to keep

clients happy.

Like many MAST participants he began his career as a tourism guide and eventually started

his own tourism business but never had any formal business training. MAST helped him todevelop confidence as a businessman. He now reinvests his money in his business.

Being a guide is easy money in terms of tips. You can be social and you just chatwith people and thats how you earn more money. You dont need to invest anymoney or anything to earn money but as a business you do.

Rhino Resorts now develops products and marketing material after researching a specificmarket to target. For example the owner explained that if he wants to do business with aGerman Tour Company then he has to have a product that suits German tourists. He focuses

on what tourists want and need and then develops products to reflect that. His attitude tobusiness was less client focused before MAST.

The above examples illustrate better business acumen which will lead to better business

outcomes and a stronger tourism sector with happier tourists. If the best tourism businessesin the sector operate as responsible then an environment for responsible travel will continue toinfiltrate the sector.

6.8 MarketingThe final objective of MAST was to improve the marketing of sustainable tourism products bytourism companies in Nepal. This was to be achieved by improving the way businessespromote themselves and by showing businesses that there is a market for sustainable andresponsible behaviour. Marketing incentives were used to promote responsible behaviourchange. Businesses have clearly learnt that marketing is something they can do themselves(not just a reward) to generate business opportunities.

6.8.1 Code of Conduct and Responsible PolicyThe action plans were instrumental in helping companies appreciate the value of puttingresponsible commitments on paper and the methodological approach of MAST encouragedthem to take ongoing action. But what companies realised after MAST is that to marketyourself as responsible requires proof.

Everest Resort explains some additional benefits they received from developingresponsible action plans, We have more documents that we follow and recordthings on and have principles written down. So it is easy to give information toEuropean markets. 15-20% of their European tour operators ask about their


16/27

Page 16 of 27

responsible practices and they now have documents ready to share with themwhich helps with their legitimacy.

Out of 21 MAST companies 14 now have a code of conduct or responsible travel policy togovern them and their suppliers actions. Below is a copy of Amazing Tours and Travels policythat can be found on their website. You can clearly see MAST principles and practices reflectedin the policy illustrating the ongoing impact and influence of the MAST training.

The following are the policy guidelines in respect of responsible tourism that Amazing Tours and

Travels have set for ourselves. We cannot claim that we have achieved every point to our completesatisfaction, but continue to pursue to reach the goal.

As far as possible we will use local equipment. We will hire the equipment from qualified hiringagencies so that the money gets more evenly spread in the economy.

In most destinations we will aim to where possible to purchase our food from locally producedsource.

We encourage clients through our leaders, the literature and slide shows to act in a responsibleway and with an insight and understanding of the host destination.

We will work together with our stakeholders in this business (hotels, hiring agencies, guides,other companies etc.) to implement the highest of standards and work out an agenda on howthese standards can be met.

We will develop long term partnerships with our stakeholders, hence establishing long lastingeconomically stable relationships.

We will take into consideration environmental, cultural and economic issues when looking at toursthat we develop.

We will ensure that our operations do not disrupt or lead to the displacement of local people. Sowe ensure that our type and scale of tourism is appropriate to local conditions and operate withinthe limits set by local appropriate infrastructure and carrying capacity.

We aim to take responsibility for maintaining and improving the environment. We look for appropriate systems for minimizing water and atmospheric pollution from tourism

developments.

We aim to achieve zero litter policies. We aim to integrate environmental considerations into all economic considerations. We will provide regular and ongoing training, in the principles and practices of responsible

tourism, both to our staff in the office and those employed out of the office.

We will provide financial support for local economic, developmental and environmental projectsgiving back to the community which is supporting our business.

We aim to reduce the levels of energy use in our offices and by our staff by recycling wherepossible and reduce paper use by increased training and use of computer technology.

Tiger Mountain explains that MAST helped confirm the need for marketing. It confirmed in mymind the need to quantify what we are doing. You cant just say you are green you have toprove it but it is very hard to quantify all these things. This is why Tiger Mountain isundertaking annual responsible travel audits similar to Social Tours. This assists them tomarket themselves as responsible as it provides proof to potential clients.

6.8.2 How to Deal with International Tour OperatorsMAST participants realised that a new level of professionalism is required when dealing withinternational tour operators and that securing business from international tour operators is

essential for business survival.

Nepal Mountain Bike Tours explains that, Interconnection with travel agencies isimportant for business. International tour operators need me to be veryprofessional and neat and clean when I deal with their clients. We need to talk tothem in a certain way and get their feedback.


17/27

Page 17 of 27

The Last Resort explains that, International companies really try and test you.They ask you all sorts of questions about being responsible so that you cant fakeit. If you understand their language then you can give proper answers to theirquestions and they will give you business.

6.8.3 How to Develop Marketing MaterialA number of MAST companies had never been taught about how to develop marketingmaterial. Thirteen participants sighted marketing material development as one of the mainlessons and benefits they received from the MAST project. The brochures and advertising

material of some companies appeared amateur and unprofessional before the MAST project.

Rhino Resorts developed new brochures after MAST, MAST taught how to makean attractive brochure, how to mention what your business practices and havenice pictures. I spent more money developing my brochures than what I wouldhave before MAST because MAST taught me the value of advertising.

Ghalegaun Village Resort uses more photos and less words in his brochures now and NauloTravels improved his visiting card by making it more simple with less content. Balthali VillageResort improved his website, visiting cards and brochure and even has a letter pad andenvelope printed with his company logo and contact details.

6.8.4 How to Position Yourself in the MarketMany companies were unaware of their added value or how to sell their strengths. They werenot aware of how they were different to their competitors and that there was value inpromoting difference. The idea of niche markets and responsible travel was new. Thirteenparticipants sighted positioning in the market as a main lesson/benefit from MAST.

Rhino Resorts learnt about fair trade and how to compete with other resorts. We need tomake a basic standard and make a specialization or a niche area to sell more in the market.Whoever I talk to in Europe they are very interested to hear about MAST and want to knowwhat I learnt. They are interested to see the products I developed under MAST especiallyagro-based tourism companies and are interested to know about my responsible work.

Everest Resort changed their name from Syangboche Panaroma Resort because they realisedthat no one outside of Nepal knew that Syangboche was in the Everest region.

Himalayan Encounters explains that MAST taught us the value of promotingourselves as responsible. Unless we talk about the good things we do people wontknow about it or why they should choose us. So now we package the good thingswe are doing and have it heard.

Even companies such as Three Sisters Adventure & Trekking, who were already doing whatcan be categorized as responsible travel, learnt the benefit of marketing themselvesdifferently, We were doing these things but had no idea it was a value we had that we couldpromote. The tourist eye sees differently to us and we didnt think that way before Nowadays we get womens group from many European countries. Last year we had 30 womenfrom a German company. We never really tapped into womens only groups before MASTtaught us the benefit of niche markets.

6.8.5 How to Sell Responsible TravelSelling a responsible product is easier than selling a product without additional value. Asexplained by The Last Resort,

The first thing is the whole sales staff and company has started being plainhonest with clients. We even tell clients about some of our initiatives that haventworked. To be responsible and to sell it you really have to do it because customerswill ask you questions and you will be found out if you lie. Our sales staff sayselling our product is much easier when we add the responsibility dimension. Ithelps them when they can just say things as they are rather than feeling stressedin case they get caught out for saying something not entirely true.


18/27

Page 18 of 27

The Last Resort have also begun marketing in new ways such as advertising on responsibletravel websites like RT.com - people tell us they heard about us from that site but I dontknow how to quantify how much business it has brought us.

7. Attribution and Impact FiguresWhile the above provides ample evidence that the MAST project exceeded its objectives andassisted businesses to develop acumen and generate more business, impact figures aremissing. Development projects that involve marketing and private sector related development

often struggle to demonstrate business impact within project timeframes. It can take at leasttwo years to begin to see profit increases from business development and with marketingchanges it can take even longer.

As Govinda Bhatta from Amazing Tours and Travels explains about international travelcompanies, operators do not change right away. You have to stay close and maintain therelationship so if their current supplier makes a mistake you are there to help them out.Amazing Tours and Travels has had continual contact with 4 international tour operators hewas networked with during MAST. He anticipates they will send him business soon but it is along-term affair to secure new business from international tour companies. He is working on apresentation for one operator who will participate in a travel fair. The operator asked him todevelop a CD where he mentions the MAST Nepal training and what he learnt andimplemented so he can show it at the trade fair. Any business interests that are generatedfrom this will be passed onto Amazing Tours and Travels.

Another tour company from Amsterdam contacted Amazing Tours and Travels because theywanted to know more about the MAST certificate that appeared on his web site.

Govinda explains, They asked us lots of questions about responsible travel likewhat different things we did with MAST and what the training involved and whatwe have implemented since MAST ended. I could tell they were trying to test myknowledge on being responsible and they were obviously satisfied with myanswers because in October they will send us 4 people. This is a test and if it goeswell which we know it will - then they will send us one group every week inOctober, November and February with about 16 people in a group. In January andDecember they have promised to send 2 groups per month.

Proving impact is difficult and calculating impact figures from marketing projects is evenharder. For example how does one calculate the additional business an improved websitegenerates especially if business records are poor making before and after comparisonsdifficult to verify? For example, Last Resort honestly explained that it was difficult to isolateMASTs contribution to the overall business:

Our sales staff say it has helped them to sell more and upgrading the website hashelped. Two years ago [the end of the MAST project] customers would come andstay for 1 or 2 nights at the most but now all our email booking stay for 4 plusnights and they say it is because they would like to see how we are helping localcommunities.

The Last Resort updated their website during MAST to explain how a certain amount of eachproduct goes towards helping the local community. The sales manager explains that there is alink to MAST but it is difficult to quantify.

This impact assessment has been able to generate some impact figures that are directlyattributable to MAST but most evidence relies on the opinions of businesses and not harddata. If there is a MAST phase II then a baseline of company business records should becollected along with other data and marketing material that will allow for benchmarking andcomparisons over time.


19/27

Page 19 of 27

7.1OverheadsSix MAST companies who were new to the idea of responsible travel did not realise that theycould reduce their overhead costs just by becoming environmentally friendly.

Manang Tours and Travels saves about 40% on overhead costs now that he is more energy-efficient and uses e-ticketing which saves paper. He now does electronic filing and taught hisstaff to minimize printing to be more ecologically friendly and turn off the lights when theyleave a room. He also saves money by purchasing locally. He explains that buying the producehe needs for his tours in Kathmandu and transporting them to the site of the tour costs an

additional 20%. He explains that MAST promoted minimizing the environmental impact of mybusiness.

Everest Resort discusses how a reduction in their overhead costs has improved their bottom

line, We use to pay 6-7 rupees for 1 litre of water but now we have our own water tank wesave this money. Sometimes we do not collect enough water and have to buy some but overallwe save more than 60-70% on our monthly water bill. However, this does not account for theset up cost of the tank which was NPR1, 300, 000 (USD17, 800).

7.2Profits & New BusinessTen companies were clearly able to make a link between profit increases and the MASTproject. However, many could not validate the information due to a lack of record keeping. Afew companies could give some evidence of profit increases and they appear below. There arealso five businesses involved in MAST that have stagnated or reduced their profit and theirexplanation is the global financial crisis and Nepals unstable political situation which has adirect bearing on tourist numbers. For example, three businesses were interviewed the dayafter a week long protest strike (known as a bundh) finished in Kathmandu. All threebusinesses had tour groups cancel their trips at the last minute and openly discussed the priceof extortion payments to keep their business running during the bundh. These factors have a

direct bearing on overheads, profit loss and the overall tourism pie. This obviously impacts onthe benefits the MAST project could have generated but is beyond the control of MAST.

Roughly fifty per cent of the companies involved in MAST were surprised to discover that beingresponsible is good for business. As one MAST participant explained, We never could haveimagined such benefits from becoming sustainable. Most of these businesses were scepticalabout becoming responsible at first because they thought it would cost them money. NauloTravels explains the business potential for adopting responsible travel practices is that localshelp make tourism sustainable by managing the local area. This will sustain business andprofit in the long run.

Rhino Resorts believes that he receives about 25% of his new business from other MASTparticipants and since the MAST project ended he has an extra 20% of European clients peryear. He attributes this to MAST because he now targets that market. Three SistersAdventure & Trekking believes MAST has generated at least 10% increase overall in theirbusiness and again cite the increase in European clients as a result of improved targetedmarketing. Before MAST Three Sisters Adventure & Trekking Companys clientele involvedmajority American tourists (45%) and only 20% European trekkers. Since MAST they still havethe same amount of American trekkers but now they only make up 25% of their totalbusiness. The number of Europeans has taken over and now makes up 45% of their clientele.

Lucky Chhetri, one of the owners, attributes this to MAST.

As a result of the MAST certificate appearing on a Nepali companies website (the companywishes to remain nameless due to confidential profit figures provided) the company hasgenerated USD168, 000 worth of new business, most of which is spent on local hotels, food,entrance fees etc and a little bit on ticketing. This is a conservative estimate and does not lookat the companies over all profit increase since the MAST project ended only that directlygenerated from a relationship with one international tour company that resulted from MASTrelated contacts. The proportion of profit the Nepali travel company receives from this newbusiness contact is USD20, 000.

Mowgli's Eco Adventure Tours attributes 50% of new business to MAST also via the certificateon his website and understanding how to position himself in the market better.


20/27

Page 20 of 27

Normally we have few clients through friends but through MAST we have linkageswith China and Germany, Spain etc. Ive made linkages internationally with touroperators and bird clubs. One travel agent from Spain sent 3 people in December2009 and is sending 2 more in February. A China company interested in bird watchingbooked 13 people but cancelled with the strike this year but may come next year. 2Germans came for 21 days bird watching. I met all these contacts through MAST.

Ghalegaun Village Resort used to get about 50 international tourists per year before the MAST

project but now that he has upgraded his marketing materials and begun promoting himself asa responsible company he attracts at least 90 international guests per year.

International companies ask me about sustainable tourism and then include my

resort in the package they sell. European tourists want sustainable products.Additionally, before the MAST training we had 200 domestic tourists per year. Nowwe get 500 - 600 Nepali tourists per year Because I know more I can talk more toschools and colleges about how important it is to be sustainable. These talks help meto get business.

Himalayan Encounters explains that MAST gave us a link to a couple of big companies

overseas and we spent the last 2 years working with them. They send us about 70people per year. We have another two possible international companies but we are stillin the talking phase but hope to get some more people through them.

Everest Resort also estimates that they receive an extra 15% business per annum since theybegan promoting themselves as a responsible resort. Not only do they have more guests buttheir guests also stay for longer. The profit increase (after staff salaries and operating costs)from the additional guests is close to USD3, 000.

It is clear that many participants can cite an increase in business as a result of MAST butquantifying and isolating figures is challenging. This is compounded by the fact that businessesare reluctant to disclose profit margins and actual figures. The best option was to askbusinesses to estimate percentages of change that they had observed.

7.3Indirect BeneficiariesGiven the pillars of MAST and the action plan commitments made, MAST benefits do not endwith the business. They trickle down to the local economy. For example, Dream Nepal Travel

and Tours discusses the benefits to local people from a new product he developed duringMAST to promote a new cultural tourism area. He takes around 200 - 300 Nepali students and40 international tourists hiking each year in the Chewunda Yeti area and uses a local lodge foraccommodation. Aside from accommodation he spends NPR120, 000 (USD1, 640) locally onfood per year.

Everest Resort committed to upgrade their hotel furnishings during MAST with fair trade andother locally made products. In total they spent about NPR500, 000 (USD6, 850) onrefurbishing the hotel. As they also changed their buying patterns to source more fresh localproduce. They attribute the NPR5-6, 000 (USD70) of local fruit and vegetable per week(including cost of porter to carry) as a benefit the local people get from MAST. This is a

considerable economic boost to an isolated local mountainous area.

MAST has had a developmental impact that is wider than just increasing the amount of

vegetables and other products purchased locally. However, other types of impacts are veryhard to quantify but have inherent value as the stories below illustrate.

Balthali Village Resort - case studyBalthali Village Resort has trained 5 local guides as part of his commitment during MAST. He offers a localguided walk with every room booked. Local guides earn NPR5-10, 000 (USD70-140) in a month dependingon how busy it is (NPR500 -1, 000 (USD7-14) per day depending on their English skills) plus tips. He alsobuilt a road to the village. This helps locals to take their surplus products to Kathmandu. They weregrowing vegetables before MAST but not as much because they had no alternative market. Now they growvegetables as an income source not just for consumption.


21/27

Page 21 of 27

During MAST Balthali Village Resort committed to buying local products whereas he use to buy inKathmandu. He laughed when he explained that last winter he bought all the green vegetables in thevillage, Before the hotel started you couldnt buy much in my village because we didnt have manytourists. But since the road and MAST the hotel is doing better and so is the village. Before MAST trainingthere were very few clients in my hotel. I was everything waiter, host, handyman, I was everywhere.

He explains how his business has grown, Four years ago I had 100 foreigner guests per year. Two yearslater I had about 250 per year. This year I have booking for about 400 - 500 European tourists and 250-300 Nepalis per year. From October we have good bookings 61 Germans for 18 days. This gives lots of

local jobs and I will need to hire more local guides.

Local people now understand tourism and how it can help. I offer a cultural project in the hotel wherelocal people come to talk with guests and dance in the hotel. I dont pay them for the dance but they getabout NPR2, 000 4, 000 (USD27 54) in tips. After the dance the guests interact with the children sothey can practice their English. The kids were shy at first but are now more open with tourists. Touristshave also helped the local school by donating computers and funding tuition for poorer children. Even thepoor get help from MAST because more tourists come and offer things to my community.

Dhulikhel Mountain Resort has trained local disadvantaged youths to perform a cultural danceat the hotel. The hotel paid for costumes and a chorographer to teach them traditional dances.They earn about NPR5, 000 (USD68) per dance plus food. They have earned half a million

rupees (USD6, 850) since they commenced the dances and do 20 projects per month for theDhulikhel Mountain Resort. The manager said the tourists are happy and so is the localcommunity. The dance troop is allowed to borrow the hotels costumes and routines and

perform at other resorts as well. For the youth involved it is their only means of earning anincome around school hours and many of them are using their savings for college and highereducation. According to the owner of Dhulikhel Mountain Resort this impact is 100%attributable to MAST because that is where they got the cultural dance idea.

Rhino Resorts also organised a cultural dance show focusing on the local Tharu ethnic people.The local youth were unaware of their traditional dances so the resort found a teacher to helpthem choreograph a show for the resort. They also made traditional costumes. The groupdance every night there is a guest and do about 4 different dances. They earn NPR3, 000(USD41) in total per dance plus tips which range from NPR5-15, 000 (USD68 - 205).

When on a tour, the owner of Ghalegaun Village Resort talks to schools along the trek aboutthe save the Himalaya environmental protection project. In 1 year he estimates that hespeaks to about 4000 -5000 students which includes the talks he gives for free to Kathmandu

schools. While he admits that he was doing talks before MAST he now talks more about ecotourism and protecting the environment for tourism and the benefit of tourism to theeconomy.

Last Resort - case studyLast Resort started a local tender policy during MAST which is still running. This is where we tender in thelocal population for goods and services and suppliers of food and beverages. We use to just source fromKathmandu. Were not saving any money from doing this because we could get things a little cheaper inKathmandu but the local community now has their own money to build their own schools and developthemselves. We ask the community to put any profit they make into community development but it ishard to police this. Last year we spent NPR1200, 000 (USD16,400) on local tender and so far this year ithas been about NPR400, 000 (USD5, 500).

Even if we dont save costs we do save the environment in terms of a reduction in transportation andpetrol to get the goods from Kathmandu. Our main motivation to keep buying locally is that we have

better relations with local people and have established goodwill. Weve never been stopped because of abundh because locals are on our side. Other companies who operate in the area have demands placed onthem such as pay NPR15, 000 (USD205) to the VDC so you can operate during the bundh but we dont.

We were doing some things right prior to MAST but now we do it differently. Before we gave to localschools or the community and didnt care how it was spent. Now we are more involved with thecommunity and help them aside from just handouts. We have a responsible travel policy that focuses onhealth, education and women.

We are also committed to improve our waste management and to use energy efficient light bulbs duringMAST. We are still doing this and saving 40% on our electricity bill per month.


22/27

Page 22 of 27

Tourism can have immense benefits for the local population. When a project like MASTemphasises the local and gets companies to make commitments then there is a multidimensional, more widely spread benefit from increased tourism. MAST participants haveclearly seen the value in involving more local people in their business.

8. Summary of Impact FiguresTo summarise some of the impact figures: Six MAST companies reduced overhead costs; tencompanies were clearly able to make a link between increased client numbers, new business

and the MAST project:

Balthali Village Resort has an additional 400 guests per year. Ghalegaun Village Resort has 40 more international tourists and 250 additional Nepali

tourists per year. Himalayan Encounters attracts an extra 70 tourists per year. Rhino Resorts receive 25% of new business from other MAST participants and since

the MAST project ended has an extra 20% of European clients per year. Three Sisters Adventure & Trekking attributes a 10% increase in business to MAST. Mowgli's Eco Adventure Tours attributes 50% of new business to MAST. USD20,000 increase in profit for one business from MAST contacts and USD168, 000

increased spend on local services and products. Everest Resort receives an additional USD3, 000 profit per annum.

And, all participants cited multiple indirect benefits including:

Dream Nepal Travel and Tours spent an additional USD1, 640 on the local economy. The Last Resort spent USD16, 400 on local produce in 2009 that used to be purchased

in Kathmandu. Everest Resort spent USD6, 850 on local products for hotel refurbishing and spend

approximately USD70 per week on local produce that used to be purchased inKathmandu.

Balthali Village Resort built the first road to Balthali and pays local guides USD70 - 140per month and local dancers USD27 54 per performance.

Dhulikhel Mountain Resort has generated USD6, 850 income for the local dance troop which has secured higher education opportunities for the dancers.

Rhino Resorts also through a local dance show generates between USD41 205 inincome for local people.

Ghalegaun Village Resort has educated approximately 5000 Nepali students onenvironmental conservation and tourism benefits and 15 honey hunters on beeecology and sustainable harvesting.

The Last Resort has educated approximately 500 internationally wealthy students onNepali culture and lifestyle.

Manang Tours and Travels employed 3 new staff to manage the new responsibleproduct he developed after MAST.

Collectively MAST companies have deliberately introduced 15 women into the maledominated tourism industry through employment.

9. Recommended ImprovementsDuring the impact assessment participants were asked about recommendations to improve theMAST project along with suggestions for a new MAST project. Most participants were candid

and while all appreciated the MAST project and valued the opportunity to participate they alsohad some suggestions for how to improve the project. As one business explained, you can

always improve with hindsight but 95% was good.

9.1Course ContentThe majority of participants commented that the course was too theoretical and should havehad more practical application and be tailored to the Nepalese context. There were alsocomments about inconsistency: some sessions were apparently too theoretical and others toobasic. While some participants enjoyed having access to international experts others felt thisshould have been better balanced with local experts. A majority of businesses wanted the


23/27

Page 23 of 27

project to be more practical with real examples from local companies, Internationals dontunderstand Nepal. MAST should draw on more local knowledge not fly in experts fromuniversities. We need practical training. The information was not tailored to the Nepali oreven Asian context and this could have been strengthened by involving more Nepalis in theplanning and content delivery.

Participants felt the project could have achieved more if time was spent establishing joint

directions and learning foundations. Four participants commented that the MAST projectshould have had a steering committee comprising of more experienced Nepali businesses or

involved more participants in the planning. For example, There was not enough mutuality ofrespect for what everyone brought to the table. Lip service was paid only. Also I never knewwhere the project was going until it got there. The project needed a steering committee of afew of the key players.

9.2Business ManagementSix participants would have liked MAST to focus more on the business management side oftourism. For example one business said, Computer and IT skills should have been covered aswell as more on using the media to promote business and latest ways to market electronicallyand what software to use to develop your own marketing material.

9.3Selection ProcessesFour participants had comments on who was selected for the training and how businesses

were grouped. For example, Trainings had a value. But people should have been clustereddifferently according to their level of knowledge and current practice. There were people whowere advanced in responsible travel and people who were new to responsible travel all in onesession and all trying to learn at the same pace. Taking smaller classes or working with acoach would have been better. Another participant commented that only those with influencesuch as managers should have participated and not just any staff member, MAST should haverequired the executive of the company to attend and they could bring juniors along if theywanted.

9.4Marketing IncentivesThere were also a number of criticisms about the fan trip. The majority of participants thoughtthe selection of only 3 companies was done poorly and all companies should have had theopportunity to present themselves internationally for equity reasons. One company explainedthat they Didnt like how MAST only chose 3 people to travel and promote Nepal overseas.

They were not the best choice. Participants voted and the three companies with the mostvotes went overseas to represent all MAST businesses. As one business said, The award thingwas a mess. How to pick who travelled abroad was not well done.

There were also concerns about how MAST companies were represented overseas even byone of the companies who went on the fan trip, We went to different countries and had flyersto give out but not enough money for flyers and so we ran out. MAST should have had lesscocktail functions and more money for advertising. Participants also felt that there shouldhave been more time to prepare for these fan trips and more information given on how tomanage and present yourself at a tourism fair. Additionally, The fan trip should have giventhe participants knowledge about the country and local culture but it was too rushed andshould have had more tour operators involved.

9.5Issues in CourseThree businesses commented on the need to do more for the gender aspect of the social pillarand two others thought that gender was irrelevant. Some businesses committed to recruitingfemale staff but could not retain them, or they hired more female guides but then didnt knowhow to manage the discrimination they faced. One business suggested SNV and other donorsshould lobby the government to reduce the load allowed to be carried by male porters so thatmore female porters could be hired. Women are physically unable to carry the heavy loadsthat males can which makes them less cost effective than hiring males.

Five other companies felt that MAST should have been area based or emphasised localcommunity development. As one explained, The project should focus more on the rural side


24/27

Page 24 of 27

and on smaller or newer tourist destinations. There should have been less focus on existingareas and the city because the big agencies do not need assistance or market promotion.

Some of these companies had tried to implement home stay programs unsuccessfully. Thisinvolved homeowners investing money in setting up their houses for international visitors byinstalling a sit down toilet and purchasing beds. Unfortunately the businesses were not able tosell many home stay packages and the homeowners have not recuperated their initial

investment. This has been a cause of some tension between the businesses and locals. MASTparticipants not only felt that the project should have prepared them better for such a scenario

but that there should have been some project funds dedicated to support new touristdestinations and responsible products.

9.6Location of Training ProgramFive smaller companies commented that the training was ill placed at a 5 star resort. As oneexplained, The next training should be at a local rural eco hotel. These participants felt thatMAST should have practiced what it preached by using locally owned hotels that operatedoutside the main tourist zone for the training site.

9.7Follow Up AssistanceHalf the participants commented that they wanted more follow up from MAST. In order tocement the learning from MAST and keep the momentum alive, participants would havebenefited from 6 -12 month follow up processes. Participants felt that they had more questions

and ideas to discuss once they reflected on the initial learning. Participants requested that anyphase II of MAST has more follow up and ongoing collaborative learning factored into it.

Participants commented that follow up action from SNV by way of emails or meetings wouldhave reminded them of their commitments and prompted further action and also becausegood capacity development requires reflective space to learn. It allows people time toexperiment with what they have learnt, apply the knowledge and then reflect on what hasworked and seek new knowledge and information for trouble shooting and understanding in acollaborative space. This final dimension of a capacity building methodology was missing fromthe MAST project.

10. Recommendations for MAST Phase IIMost businesses had a wish list for a second MAST project illustrating the value and potentialthey saw from the first MAST and the need for sectoral tourism projects in Nepal. MAST phase

II cannot do everything so a strategic approach that manages stakeholder expectations will berequired.

Generally businesses wanted a longer holistic project that covered systemic issues in thetourism industry: MAST and donors are not touching the larger issues. It is not aboutcompanies but destinations and government policy that is important.

10.1Longer and More Sustainable ProjectOne company said they had no recommendations except to continue the project, In Nepalmany projects are short and this approach is unsustainable. So the next MAST project shouldbe longer and more sustainable.

Another company explained, If you went to the tourism board or a hotel association andasked what they thought of MAST they wouldnt know what it was. MAST should have been alaunching of a process not a one-off. MAST should be integrated into a sustainable tourisminitiative so it is owned by the tourism industry and focuses on more holistic problems withinthe industry.

10.2Policy Change & Government of Nepal (GoN)More than half the participants felt that a MAST phase II could really add value by bringing thegovernment and private sector together and by supporting multi-actor change processes. They

also felt that donors and SNV should be building the capacity of the government to developbetter, more sustainable tourism plans and policies.


25/27

Page 25 of 27

As one business explained, MAST should operate in the space where his businesscannot, I cant walk up to the Nepal tourism board and tell them what to do but adonor could. They could make the whole tourism industry better. Another said,The concept [of MAST] should be mainstreamed throughout the whole industry,including the policy of the government. So maybe together we could influence thegovernment to develop a sustainable tourism policy.

Four businesses felt that GoN is actively pursuing policies that are harmful to the sustainability

of Nepals tourism industry:

The last policy campaign for tourism was tourism for all but this is only possibleif the tourism is sustainable but the government does not focus on this. Tourism is

a very competitive industry and the way it currently operates in Nepal isunsustainable. There should be barriers to entering the tourism industry and MASTcould help with this. One criterion should have a responsible travel principle.

Businesses appeared quite frustrated with the GoN, the government makes its own ruleswithout talking to Private Sector. Also the government is not looking after tourists, forexample there are no public toilets in tourist areas. The government should be investing in

long term investment in Nepal and not spend so much on marketing. Leave marketing to thebusinesses. Businesses felt concerned that Nepal is not matc

mast-nepal project (marketing assistance for sustainable tourism) impact assessment

Documents