WORLD BANK INVESTMENT IN TOURISM:ACHIEVING THE TWIN GOALS

UNWTO 27th Meeting

of CSA and CAP

Maldives, June 4, 2015

Stefania Abakerli

WHY TOURISM MATTERS?

TOURISM DELIVERS

SOURCE: UNWTO & WTTC

TOURISM TRANFORMS (IF WELL PLANNED AND MANAGED)

Offers greater potential for inclusive growth: it is consumed at the source, necessitates relatively low levels of capital investment, is labor intensive, accommodates low skill-levels, has a high multiplier effect, and is complementary to human development by providing infrastructure and nurturing entrepreneurship.

Stimulates local economic development for every dollar spent on tourism a further US$ 3.2 are generated in GDP across the entire economy. In under-developed regions, every US$ 1mi in tourism sales generates twice as many jobs as the same dollar amount in financial services, communications or automotive manufacturing.

Promotes inclusion: globally, travel & tourism employs 50% women and twice young entrepreneurs.

Major source for the conservation of cultural heritage and environmental assets of countries and communities.

THE WORLD BANK EVOLVING APPROACH TO TOURISM AS A DRIVER OF DEVELOPMENT

1950s

1970s

1990s

2000sToday

Europe post-war reconstruction of infrastructure and city landmarks

France

Large-scale resort infrastructure developments

Dominican Republic

Social and cultural identity associated with infrastructure and service delivery

Bosnia

Local economic development and sustainability focus

Honduras,Georgia

Integrated and programmatic approach

India

REBUILDING NATIONS

83 million tourists, 7% of French GDP in 2013

1,570 French cities and towns bombed between June 1940 and May 1945

FranceWorld Bank First Reconstruction Loan, 1947

HEALING AND BRIDGING COMMUNITIES

Bosnia-Herzegovina Mostar Cultural Heritage Pilot Project,1998–2004

Project became the symbol and the focus of both local and international efforts

to bridge the differences which surfaced during the war

550,000 foreign tourists in 2014, from almost none in 1999

HARNESSING THE ECONOMIC POTENTIAL OF URBAN ASSETS

Twin shocks to the Georgia economy in the 2000s, increased poverty and unemployment

to 22 and 18 percent, respectively, and widened regional disparities

More than 2,000 jobs and 30 firms created, and historic neighborhoods revitalized

Georgia Old Tbilisi Pilot, 1999-2004

FULFILLING SOCIAL INCLUSION HondurasRegional Development in the Copan Valley, 2003-2008

60% increase in the number of small enterprises linked to tourism value chain, most led by women and/or indigenous groups

Department of Copan among the poorest in the country:

49% average illiteracy rate 55 % malnutrition rate

75% HH Unmet Basic Needs

VALUING PEOPLE HERITAGE FOR LASTING DEVELOPMENT IMPACTSIndiaCulture and Tourism Development Program, 2011-ongoing

• Multiple engagements at central (UD, Tourism, Culture, SME, Tribal), state and city levels.• Support to major GoI schemes to test new approaches and show transformative results.• Expertise and resource leveraged through key partnerships with reputable agencies.

TOURISM IN SOUTH ASIA REGION:UNLOCKING ITS POTENTIAL FOR INCLUSIVE GROWTH

THE REGION ASSETS

• More than 1 billion people; 5,000 years of history

• Over 40 built and natural World Heritage Sites; 1700+ languages; 200+ million

craftspeople and tens of thousands of unique monuments and sites – assets that

underpin the region’s unique identity, traditions and socioeconomic fabric.

• Home to the world’s tallest mountain (Everest), largest mangrove forest (Sundarbans), with 1,061 protected areas and the Himalayas providing fresh water for one-third of humanity – ecosystems take up around 3.6% of the world’s surface but contain 16% of its flora and 12% of its fauna.

• In 2013, it attracted about 11 million international and over 750 million domestic and intra-regional tourists – people contact and socioeconomic vibrancy.

• Contributed US$149.2 billion to its economy and generated 6.5% of regional GDP in 2011.

BUT, UNMATCHED POTENTIAL FOR GROWTH

6 million

23 million

39 million

India Mexico Paris

International Tourist Arrivals (2011)

SOME REGIONAL ISSUES

• Home to around 550 million people living on less than US$1.25 a day.

• Pockets of poverty both geographically and economically separated from leading areas.

• Lack of alternative job opportunities and infrastructure deficit stunting growth and development.

• It needs to add about 1 million jobs every month for the next 20 years.

• The world’s least integrated region.

• Tourism, despite its potential, is in most countries, not really understood, effectively structured and well positioned.

A WORLD BANK PROGRAM ON INCLUSIVE GROWTH IN SOUTH ASIATHROUGH TOURISM DEVELOPMENT

OBJECTIVES

• To position tourism value as an endogenous and creative driver for the region’s

inclusive growth

• To improve the living conditions of the poor living near tourist draws in established and emerging destinations

• To improve the work conditions and nurture entrepreneurs linked to the tourism value chain across the region

• To overcome societal and individual poverty cycles in cities and destinations

APPROACH: RESTRUCTURING THE SECTOR IN AN INCLUSIVE MANNER

Focus on increasing net benefits for the local communities and the assets

conservation.

Approach not specific to particular tourism market segments or volume but is

related to the structure and management of the sector.

It addresses policies, programs, regulations and investments promoting

integrated value chain linkages, reducing barriers, and unleashing the latent

potential to transform assets into means for increasing the wellbeing of local

poor populations.

It combines and balances two objectives: higher local spending per tourist, and a

greater share reaching the local population.

AREAS OF SUPPORT

Policy making and systems development – Centering county and state policies on inclusion and sustainability; facilitating dialogue, awareness raising and participatory policymaking.

Destination governance – Diversifying destinations and dispersing tourism benefits to secondary and tertiary areas, especially in low income regions.

Products development and asset management – Supporting the integrated planning, development and management of destinations and products with increased pro-poor linkages; rehabilitating attractions; facilitating partnerships and private sector performance.

Infrastructure and services provision – Improving visitor access and flows, with low-impact infrastructure benefitting local populations

Local economic development – Increasing local inputs into tourism supply chains by stimulating micro and small tourism enterprises, boosting local artisans, increasing employment opportunities for the poor, supporting improved service delivery with mutual benefits to communities and visitors.

SUBPROGRAM 1: HISTORIC CITIES AND HERITAGE VILLAGES

• Immense wealth• Unplanned urban and regional growth, neglect Subprogram: Management of cultural landscapes and assets for increased competitiveness

and livability in cities and improved living conditions in rural areas

SUBPROGRAM 2: THE BUDDHIST CIRCUIT

• 8 major and 18 complementary sites important to 450 million Buddhists worldwide• Decades of ineffective development, straining infrastructure and sites Subprogram: Definition and validation of the product identity, provision of services,

SME development, protection of assets and promotion for communities’ inclusive growth

SUBPROGRAM 3: THE SACRED GANGES ROUTE

• 1,560 miles long, 52 cities and 48 towns• 400 million people live in the Ganga River basin• Severe health issues, pollution, unplanned

urban development, etc. Subprogram: Integrated riverfront development

investments to rebalance human-river relationship

SUBPROGRAM 4: ANALYSIS OF TOURISM DEVELOPMENT IN SAR

• Together with UNWTO• Analyze the role and

importance of tourism in South Asia

• Current and potential future performance of tourism in the region, its drivers and challenges

• Recommend practical actions at policy level to unlock opportunities and overcome constraints for tourism as a driver of inclusive economic development in the region.

THANK YOUSABAKERLI@WORLDBANK.ORG