Transformation through Tourism: Harnessing Tourism for Growth and Improved Livelihoods
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1 Transformation through Tourism: Harnessing Tourism for Growth and Improved Livelihoods
2 Africa has experienced unprecedented economic growth over the last five years.
3 Africa is on the Move Africa is poised for a growth takeoff much as India was 20 years ago and China was 30 years ago. Real GDP rose 4.9% each year from 2000 to 2008, faster than the 3% global average. Inter-regional cooperation is increasing. Armed conflicts have declined, democracy is on the rise, macroeconomic conditions have improved, and microeconomic reform is underway across the region. New Jobs are Needed Despite great progress, more jobs are needed. There are currently more than 200 million unemployed young people in Sub Saharan Africa (SSA) and 10 million more job seekers every year. The World Bank s Africa Finance and Private Sector Development Strategy aims to create 130 million jobs by 2020 through six key industries: agribusiness, construction, ICT, light manufacturing, mining, and tourism. Tourism can provide them.
4 The Challenge Tourism is complex. For economic growth and sustainability it needs to be managed. When poorly managed, cultural and natural assets can deteriorate, crime can increase, women and children may be mistreated, economic benefits may leak out of the economy. As a dynamic cross-cutting private sector activity, tourism requires public sector support to ensure economic productivity and the sustainable use of resources. The Opportunity From a small base of just 6.7 million visitors in 1990, SSA attracted 28.1 million visitors in Already one in twenty jobs in SSA is in travel and tourism. New analysis indicates women manage more than 50% of hospitality businesses in SSA. From this base, tourism provides multiple opportunities for growth and improved livelihoods. Travel and tourism are significant and underdeveloped opportunities in Africa. millions of visitors to SSA
5 Tourism is an Effective Development Tool International tourism has shown almost uninterrupted growth since the 1950s and has almost doubled over the past decade. In 2010, travel will generate 30% of the world s service exports, 6% to 7% of all jobs, and 5% of all economic activity. The tourism sector is an entry point for policy reform and regional development. Tourism diversifies exports, triggers infrastructure improvements, and is a beacon for pro-business policies. Mauritius, South Africa, Cape Verde, and Rwanda show how improvements to the investment climate benefit not only the tourism sector but also other sectors of the economy. Tourism is growing faster in the world s emerging and developing regions than in the rest of the world. In 2007, tourists spent US$295 billion in developing countries, almost three times the total amount of international development assistance. Tourism benefits women and young people and contributes to poverty alleviation. Tourism generates income for biodiversity conservation and cultural heritage protection. Tourism can also change perceptions of a country. Rwanda, Mozambique, and Ethiopia show how tourism enhances investor confidence, increases national pride, and serves as an engine of growth. Biodiversity Conservation Cultural Heritage Benefits Cross-sector Linkages Poverty Alleviation Technology and Skills Transfer TOURISM GROWTH Foreign Exchange Earnings Direct and Indirect Employment Social Inclusion and Other Social Benefits Diversification of Exports SME Growth in 2010, tourism worldwide will generate: 30 % OF THE WORLD s SERVICE EXPORTS OF TOTAL WORLD EXPORTS 6 % 6 % -7 % 5%and OF ALL JOBS OF ALL ECONOMIC ACTIVITY
6 The Constraints Standing in the way of job creation and private sector tourism development are five inter-related constraints: Unpredictable Business Environment Political instability, high crime rates, unsafe roads, poor building practices, and lack of health facilities are major constraints to tourism development in SSA. Institutional Weaknesses Tourism requires genuine coordination between multiple government agencies, private sector bodies, civil society organizations, and community stakeholders. In many SSA countries, support services for tourism are missing or inadequate. Inadequate Access Africa s distance from generating markets creates an acute need for higher quality and more competitive infrastructure. Air transport, and access to land, utilities, and finance are all constrained by the high cost of doing business in Africa. Low Level of Linkages Tourism has the potential for considerable pro-poor impact in SSA but is often regarded as elitist. Constraints to tourism value-chain development in SSA include poor quality products, low tourism awareness, lack of business knowhow, and limited access to loans. Price/Value Mismatch SSA destinations often fail to deliver high quality service because: tourism ministries in SSA lack the knowhow and leadership to implement plans; tourism associations fail to address the training needs of their members; a disconnect exists between tourism schools and the skills needed by tourism businesses.
7 Diverse Stages of Development = Big Opportunities Africa s many countries are at different stages of development. Some have been involved in tourism for more than five decades. Others may have economies in transition or are just emerging as vibrant destinations. Tourism destinations are dynamic and their needs change over time. Different solutions are needed for different destinations. The Africa Region Tourism Strategy will offer a range of services based on individual country needs. Social, environmental, and cultural sustainability are fundamental guiding principles. TOURISM Development Involvement Institutionalization Stagnation or Release Rejuvination Decline Exploration TIME
8 The vision is Transformation through Tourism : Harnessing tourism for growth and improved livelihoods.
9 The Strategy To achieve its vision, the Africa Region Tourism Strategy will implement a fourpillar framework over the next five years. We will work together for Africa to have: effective public institutions; skillful tourism managers and a motivated tourism workforce; integrated valuechains; and internationally competitive tourism products. SUCCESSFUL TOURISM SECTORS POLICY REFORMS CAPACITY BUILDING PRIVATE SECTOR LINKAGES STRONG FOUNDATION Health, Safety, Security, Political Support PRODUCT COMPETITIVENESS SUCCESSFUL TOURISM INDUSTRIES Policy Reforms Tourism requires a sound policy and investment framework that addresses economic, social, and environmental issues. Tourism public institutions need to be agile, create a transparent environment conducive to growth, and catalyze long-term private investment. A key goal, to be achieved through joint analysis of the problems and opportunities, is to achieve a positive business enabling environment through policy reform. Focused institutional support for client countries over the next five years will address policy issues. Key products will include: policy and regulatory framework assistance, tourism monitoring assistance, public/private dialogue, rapid tourism assessments, and crisis response and recovery. SUCCESSFUL TOURISM INDUSTRIES Private Sector Linkages Private sector linkages create forward and backward linkages between tourism and other sectors of the economy to stimulate enterprise development and growth. Over the next five years, the Africa region will work with client countries to support value-chain development at local, national, and regional levels. This will be achieved through analytical and operational work including: valuechain mapping and analysis, partnership development (PPPs), matching grants for MSMEs, support to professional associations, and access to finance. SUCCESSFUL TOURISM INDUSTRIES Capacity Building Capacity building empowers client country tourism ministries, tourist boards, tourist associations, and tourism professionals to provide quality service and make better use of tourism knowledge and information. Over the next five years, the Africa region will work collaboratively with client countries to identify their capacity development needs and find appropriate capacity development tools. Services will include: technical assistance, south-south exchanges, MSME training, technical/vocational education, institutional capacity assistance, and entrepreneurship initiatives. SUCCESSFUL TOURISM INDUSTRIES Product Competitiveness Tourism product competitiveness focuses on developing partnership projects to improve access, upgrade infrastructure, and reinforce destination positioning. Over the next five years, the Africa region will work with client countries to assess the current state of tourism products, evaluate opportunities for product competitiveness, assist with product development, and share destination positioning expertise. Interventions will focus on the promotion of growth poles and clusters of tourism attractions and services to stimulate economic development in particular areas.
10 POLICY REFORMS AFR Region ACHIEVING IMPLEMENTATION Development of Strategic Client Country relationships Internal and External Partnerships FOUR PILLARS SUCCESSFUL TOURISM SECTORS CAPACITY BUILDING ACTIONS PRIVATE SECTOR LINKAGES STRONG FOUNDATION Health, Safety, Security, Political Support ASSISTANCE PLATFORMS Advisory Services Africa Region Tourism Strategy Africa Region FPD Knowledge Prioritizing and Implementing Interventions FPD Global Practices Lending PRODUCT COMPETITIVENESS Reserach, Monitoring and Evaluation Assistance Platforms The implementation of the Africa Region Tourism Strategy will require close partnership and collaboration with client countries, public and private sector stakeholders, and the development community. Knowledge The knowledge platform, led by AFTFP, is the analytical hub for sector information and analysis. Knowledge tools include a comprehensive tourism database profiling sector activity in 47 African countries and knowledge resources encompassing sector activity, benchmarks, success stories, and strategic reviews. Advisory Services The advisory services platform will provide analytical services to client countries such as advice on institutional reform, reimbursable technical assistance, policy notes, regional forums, south-south exchanges, and cluster planning. It will disseminate regional, topical, and country-specific tourism knowledge products and provide a forum for discussion. Lending The lending platform will provide carefully targeted loans to support the tourism sector. Interventions, informed by the knowledge and advisory services platforms, will include growth poles and cluster support, capacity building, and support for private sector linkages. Making It Happen The implementation of the strategy requires partnerships within the region, across The World Bank Group, and with external stakeholders. It also requires the prioritizing of interventions within and across countries. Research, monitoring, and evaluation will continuously inform this process. THE AFRICA REGION TOURISM STRATEGY
11 Next Steps Africa is on the move. New jobs are needed. Tourism can provide them. Over the next five years, we will listen, learn, and partner with you to achieve Transformation through Tourism.
12 Journey with us! Be a part of Transformation through Tourism. Africa Region Finance and Private Sector Development printed on recycled paper using soy-based inks
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