MEKONG PRIVATE SECTOR DEVELOPMENT FACILITY. Sustainable Tourism. Kate Lloyd-Williams, Program Manager, Tourism, IFC-MPDF
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1 MEKONG PRIVATE SECTOR DEVELOPMENT FACILITY Sustainable Tourism Kate Lloyd-Williams, Program Manager, Tourism, IFC-MPDF Improve Sustainability of Tourism Sector Sustainable Business Practices Sector Growth Investment Climate barriers Tourism Working Groups (PPD) FIAS - Value Chain CB Visa & Airline policy study Doing Business Tourism Indicators Destination Marketing & Promotions move to PPP: Mktg Prom. Board Tourist Surveys (data) CB, LS Access to Finance constraints - LS Mkt Devt: Potential: IFC-Oxfam HK (competitiveness, growth, impact) Bus Edge SME Mgt Training modules: Financial, Mktg, HR skills Stay Another Day (SADI) Business case for broader benefits (direct) Cleaner Production: Energy Efficiency CB, Water LS IFC-Oxfam Mkt Devt: Supply-side assessment of current linkages / propoor impact leading to. Value Add 2 Firms / Linkages potential for local sourcing, pro-poor Scoping CSR e.g. Garment Better Work (ILO) expand to Tourism Bus Edge SME practical Sustainability Module ($ focus)
2 World Hotel-link link The online travel services site for the developing world Originally IFC-MPDF project. In March 2006 spun-off as a separate business with strong sustainability component. >1000 properties, countries 65% 3 star or below el_site_developing_world/$file/travel_site_developing_world.pdf 1. Caring for the customer 2. Caring for the destination
3 Unsustainable tourism emerging fast The third poorest province in Cambodia Siem Reap Province % of households below the poverty line by district Srei Sanam 92% Kralanh 51% Puok 42% Angkor Chum 50% Varin 70% Angkor Thom 85% Banteay Srei 95% Svay Leu Legend < 10% 10-29% 30-49% 50-69% 70-89% > 90% no data Siem Reap 12% Sotr Nikom 58%
4 Why Stay Another Day? Short length of stay Low average spend High leakage Low occupancy Hard to differentiate other than on price V. few repeat visits Increasingly evident sustainability issues Some really good examples already Sustainability? Economically: Show me the money Socially: Broader social benefits Environmentally: Conserves / preserves resources for future generations
5 Stay Another Day - Objectives A richer experience for the tourist Increase the length of stay, referrals, repeats Improve local benefits from industry Make the business case for Sust. tourism Win : Win : Win How can I Improve my business MPDF Facilitation role Help the community, environment, culture Visitors - more than just the temples?
6 Example: Angkor Hospital for Children Help ID, package tourist products and promotions Fam tour for hotels/gh Negotiate discounted customer service training Pilot Siem Reap Hotels and Guesthouses (to 19) Things to do besides the temples booklet Articles e.g. CHA magazine Destination Cambodia, in-flight magazines, regional press Good initial impact
7 Varying degrees of assistance Direct Assistance Educate & communicate Pilot participants = Product Development, marketing, training Tourism businesses / NGOs etc. Other stakeholders Tourism industry Travellers Small, expanding core group Sustainable Tourism Forum 11 Initiatives
8 An opportunity to understand (and order) the products Results I am definitely going to work more with those NGOs, because we can both help community (NGOs) and have more options for our clients Great Angkor Tours I will encourage our guests to visit one or more of these places and make donation or purchase goods to contribute to the local community Palm Village Hotel Immediately we saw examples of: More visitors More sales More donations Referrals Volunteers More activities added to local tours New partnerships.and it is early days
9 2007 Expand across Cambodia, Laos 70 organisations 100,000 Booklets Camb 30,000 Laos Articles e.g. in-flight magazines, regional press, International press another- day.org Stakeholder engagement Support for Change Wider Industry Restaurants Transport (FITs) Associations Local Govt Tour Ops & T. Agents Hotels & GH Unaware How can we move them up? Aware Understanding Acceptance Commitment Ownership
10 Potential business benefits? Bou Savvy Guesthouse revenues up 40%, profits up 74% Actively promotinge to guests Phnom Bok Hotel (2 star) No other marketing activities Strong commitment from management to link to community 50% guests through word of mouth referrals (European market developed v. rapidly) Original 11 increased to 20 actively Impact to destination Handicapped International Now seeing 30% visitors through Stay Another Day Donations up x 10 in first month $70 to $800 pcm Donations 2006 $8,350; For 2007 up 14% so far Angkor Hospital Now 40% visitors through Stay Another Day 2006 $48k Donations, Jan-Feb 2007 $13k (up 71%) Sangkheum Centre 20-40% visitors through Stay Another Day Getting harder to attribute but initiatives seeing significant increase
11 What could the POTENTIAL Impact be? 1% visitors stayed one more day 5% visitors spend another $10 $1.2m to the most disadvantaged Co-ordinated campaign to Stay Another Day worked in Ubud, Bali? Improved reputation? Garments Is Hilton the new Nike? : CSR Asia Widespread media interest BBC World Service CNN.com Associated Press (++) Reuters (related article) Leisure & Travel Asia Regional press Inflight magazines (Laos, Bangkok) Along the theme Conde Nast Traveller April 2006, May 2007
12 2007 Expand across Mekong 70 organisations 150,000 Booklets Cambodia 30,000 Laos Engaging Local and International Tour Operators, Embassies, Tourist Info etc. Articles / Case studies e.g. in-flight magazines, regional press, International press another-day.org Key Lessons Learned Listen to businesses, who listen to customers Accentuate the positive (Jungle Book) Start small, think big, be flexible Monitor and adapt Siem Reap -> Cambodia, Laos ( Vietnam) Website Next Steps?
13 Where could we go from here? Booklets/flyers can address FIT today Increasingly being used by Local Tour Ops International Tour Ops for tomorrow Case Studies to improve Camb/Laos brand Website multi-destination / country? Donations online Partnerships? Intrepid, Sust Travel Int? Intrepid? WHL? SGBI, Ashoka, Google Foundation..??? Your thoughts / Ideas?? Tourism Market Development Assessment IFC & Oxfam Hong Kong partnership Maximise potential for growth with pro-poor impact Maximise Donor / Govt ROI
14 Bamboo & Rural Poverty How to solve poverty at scale? sustained rural market growth at scale How to achieve sustained rural market growth? Supply? Supply chains based on production potential? Demand? i) Strategic analysis of market potential ie demand ii) Assist best pro-poor impact markets to tap demand Is bamboo a candidate pro-poor market for a strategic, demand-driven approach? Impact Potential (1) Jobs, Financial Impact by Product Jobs per ha (Farmers Workers FTE) Medium value processing eg chopsticks, panels Low Value Bulk Processing eg paper, charcoal Raw Culms for construction ,000 1,500 2,000 2,500 3,000 Local pro-poor financial impact per ha (USD ) Premium processing Pro-poor measured eg flooring, Full laminate time furniture equivalent via labour & input jobs (FTE) cost base data from Flooring throughout VN the businesses. Mat supply board VN chain from from 1 ha bamboo Bamboo Woven mat sector VN ~75% Chopsticks VNpro-poor Paper + pulp VN Pro-poor impact rate: Charcoal, briquets, China returns to the poor Charcoal, briquets, Laos throughout the Raw culms VN supply chain from 1ha bamboo
15 .. Impact Potential (3) Depends on Industry Mix Supply chain industry mix scenarios for 50,000 ha Jobs per ha (Farmers Workers FTE) Premium Medium value Low value bulk Raw 15% 5% 5% 55% Raw 40% 80% 5% 20% 20% 55% 15% 15% 30% 40% Medium Mix $31m 16,500 jobs Bulk Mix $21m 9,500 jobs New Industry Mix $40m 20,000 jobs 0.10 Raw Mix $20m 8,500 jobs ,000 Local pro-poor Financial Impact per. ha (USD ) Impact Potential (4) Depends on Policy & Action 0.50 Jobs per ha (Farmers Workers FTE) Thanh Hoa, Viet Nam 2006 Med $31m Bulk Raw$21m Raw $20m New $40m Mature New $72m Mekong Potential next 5-10 years? Viet Nam, Laos Current Policy Direction? Anji China, 2006 New Mix. Impact via High Bamboo cost+ High Labour cost ,000. Local pro-poor financial impact per ha (USD)
16 Siem Reap Mapping: IFC-OHK (will add ODI) Supply Side Employment Supply chains/ sourcing: Hotels Restaurants Shops Services (e.g. Laundry) (Transport) Impact? Demand Side Current Markets Local spending and Impact by Segment Supply Side Interventions Best Practices? Potential? Demand Side Potential Scenarios Strategic Marketing Potential thoughts to discuss Other destinations / projects where Stay Another Day could expand? where WHL is appropriate to increase market access? (contact John Mckenzie, IFC) What good practices Pro-poor tourism? Business Edge SME training We are not maximising synergies between IFC & WBG need to talk now at the least Keen to keep updated in ST thinking
17 Other presentations available please ask World Hotel-Link overview, and details Business Edge Management training presentation, detailed modules etc. Stay Another Day details Tourism Sector development framework to maximise and qualify potential for propoor growth IFC Contact in LAC: Juan Gonzalo Flores, IFC LAC Kate - KLloydwilliams@ifc.org To download the booklets:
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