Knowledge Series Tourism for Development Tourism Diagnostic Toolkit TOURISM DIAGNOSTIC TOOLKIT 1 © 2019 The World Bank Group Rights and Permissions 1818 H Street NW The material in this publication is copyrighted. Copying and/or Washington, DC 20433 transmitting portions or all of this work without permission Telephone: 202 473 1000 may be a violation of applicable law. The World Bank Internet: www.worldbank.org encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. This publication is a product of the staff of the World Bank Group. The World Bank Group refers to the member institutions For permission to photocopy or reprint any part of this work, of the World Bank Group: The World Bank (International Bank please send a request with complete information to the for Reconstruction and Development); International Finance Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, Corporation (IFC); and Multilateral Investment Guarantee MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Agency (MIGA), which are separate and distinct legal entities, Internet: www.copyright.com each organized under its respective Articles of Agreement. We All other queries on rights and licenses, including subsidiary encourage use for educational and non-commercial purposes. rights, should be addressed to the Office of the Publisher, The The findings, interpretations, and conclusions expressed in World Bank Group, 1818 H Street NW, Washington, DC 20433, this publication do not necessarily reflect the views of the USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org Directors or Executive Directors of the respective institutions of the World Bank Group or the governments they represent. The World Bank Group does not guarantee the accuracy of the data included in this work. TOURISM DIAGNOSTIC TOOLKIT 3 About the Facility for Investment Acknowledgments Climate Advisory Services (FIAS) The development of this toolkit is based on the experience This publication was developed with funding provided by FIAS and practice of a range of WBG tourism specialists and Development Partners under the FY17-21 FIAS strategy, as external advisors, as well as lessons drawn from tourism sector well as support from FMTAAS. Through the FIAS program, the operations across the WBG. It draws extensively from the World Bank Group and donor partners facilitate investment original Tourism Sector Diagnostic (TSD) Tool developed for climate reforms in developing countries to foster open, the use of IFC’s Advisory Services in East Asia and the Pacific. productive, and competitive markets and to unlock sustainable That work was led by Jennifer Bartlett and John Perrottet private investments in sectors that contribute to growth and with inputs from consultants Dain Simpson and Tim Martin, poverty reduction. The FIAS program is managed by the World support of management and staff of the IFC/FIAS Global Bank Group. Tourism Advisory team, as well as resources provided by Private Enterprise Project - Pacific donors and a grant from IFC’s Innovation Fund. The preparation of this current publication was led by John Perrottet and Louise Twining-Ward with support from Shaun Mann, Hannah Messerli, Hermione Nevill, Wouter Schalken, Carolyn Cain, Damien Shiels, Wendy Li, Nidal Mahmoud, Jose Miguel Villascusa, Talia Salem and Vera Zhou. Send feedback to tourism@worldbankgroup.org 4 TOURISM DIAGNOSTIC TOOLKIT Table of Contents ACRONYMS 6 ANNEXES 42 GLOSSARY 6 I. DIAGNOSTIC CHECKLISTS 42 EXECUTIVE SUMMARY 8 II. BENCHMARKING CHECKLISTS 60 SECTION ONE: III. STAKEHOLDER LISTS TOURISM AT THE WORLD BANK GROUP 10 AND INTERVIEW GUIDES 61 Why Tourism for Development? 10 Public Sector 61 The World Bank Group Tourism Offer 11 Private Sector 62 Sustainable Tourism Global Solutions Group 12 Individuals and Civil Society 63 Other Institutions 63 SECTION TWO: THE TOURISM ECOSYSTEM 14 Stakeholder Interview Guides 64 SECTION THREE: IV. SAMPLE TOURISM INDUSTRY SURVEYS 69 DIAGNOSTIC PROCESS 28 Local Tourism Industry Survey 69 Guide to Checklists 35 Travel Trade Survey 78 SECTION FOUR: V. SITE ASSESSMENT CHECKLIST 84 NEXT STEPS 40 VI. SAMPLE TERMS OF REFERENCE (TOR) 85 VII. SAMPLE REPORT TABLE OF CONTENTS 86 TOURISM DIAGNOSTIC TOOLKIT 5 ACRONYMS TERM DEFINITION BTOR Back To Office Report GDP Gross Domestic Product GP Global Practice FCI Finance, Competitiveness & Innovation MICE Meetings, Incentives, Conventions and Exhibitions (also referred to as the Meetings Industry) PDO Project Development Objective PPP Public-Private Partnership ODA Overseas Development Assistance OTA Online Travel Agency (e.g. Expedia, Travelocity, Orbitz) TTCI World Economic Forum’s Travel & Tourism Competitiveness Index TTL Task Team Leader UNWTO United Nations World Tourism Organization WEF World Economic Forum WTTC World Travel & Tourism Council GLOSSARY Note: The terms defined below are done in the context and purpose of this document. Definitions are not intended to be universal. Most have been adapted from the United Nations World Tourism Organization (UNWTO). TERM DEFINITION Accommodation Any kind of housing (commercial or non-commercial) where a tourist stays a night or more. Average daily rate The average room rate calculated on the gross room revenue divided by the total number of (ADR) rooms occupied. Destination A place defined by the market as a unique location of a size capable of attracting visitation. Destination The leading tourism organization, which may encompass the various authorities, stakeholders Management/ and professionals of a destination, and facilitates tourism sector partnerships towards a Marketing collective destination vision. Organization (DMO) Destination and A list of a destination’s key attractions and stakeholders. stakeholder mapping Distribution channels Produces the link between the suppliers of travel services and the consumer. It is a system of distribution that makes the product available. Domestic tourist A visitor traveling within his/her country of residence whose trip includes an overnight stay outside of their usual area. If a trip does not include an overnight stay, he/she is classified as a same-day visitor, or excursionist. F&B revenue Revenue derived from food and beverage sources in a hotel. Free Independent An individual (or small group of <10) traveling and vacationing with a self-booked itinerary. Traveler (FIT) They did not purchase a pre-packaged holiday. Inbound tourism The activities of a non-resident visitor within the country of reference. International tourist An international traveler who, with respect to the country of destination, is (a) on a tourism trip, (b) is a nonresident traveling to a country or a resident traveling outside of it, and c) is not renumerated by the destination country. If a trip does not include an overnight stay, he/she is classified as a same-day visitor, or excursionist. Length of stay Number of nights spent in one destination. MICE A generic term which covers the segment of the market which travels for the purpose of meetings, incentives, conferences and exhibitions, usually planned well in advance. 6 TOURISM DIAGNOSTIC TOOLKIT Occupancy rate The percentage of the total number of guestrooms, which are occupied by guests on any given date. Outbound tourism The activities of a resident visitor outside the country of reference. Package tour A travel product that bundles together travel products from different suppliers. Packages typically include: return transportation, ground transfers, baggage handling, accommodation, one or more meals per day, and applicable taxes. Car rentals, recreation and entertainment, and gratuities may be included, but are more often supplementary. RevPAR Revenue per available room. Gross rooms revenue divided by the number of available rooms. Total RevPAR measures revenue from all sources (including F&B) divided by available rooms. Room night A room being occupied by one or more guests for one night. Same-day visitor A traveler taking a trip to a main destination outside his/her usual environment, for less than (or excursionist) 24 hours. Also called a day visitor. Supply chain A tourism supply chain (TSC) is defined as a network of tourism organizations engaged in different activities ranging from the supply of different components of tourism products/ services, such as flights and accommodation to the distribution and marketing of the final tourism product at a specific tourism destination. Sustainable tourism Tourism that takes full account of its current and future economic, social, and environmental impacts, addressing the needs of visitors, the industry, the environment, and host communities. Tour operator Also called receptive tour operator, an inbound tour operator is a local business that provides (inbound) itinerary planning, product selection and coordinates the reservation, confirmation and payment of travel arrangements on behalf of their overseas clients, such as wholesalers or retail travel agents. Tour operator Outbound tour operators package products and experiences together to enable travel by (outbound) residents from one country to another. Tour wholesaler A company that purchases in bulk from travel service providers, packages travel products, and markets these products through travel agents or directly to the public. Tourism A social, cultural, and economic phenomenon, which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes for more than 24 hours and less than one year. Tourism expenditure The amount paid for the acquisition of consumption goods and services, as well as valuables, for own use or to give away, for and during tourism trips. It includes expenditures by visitors themselves, as well as expenses that are paid for or reimbursed by others. Tourism product A combination of tangible and intangible elements that make up a tourism experience, such as natural, cultural, and manmade resources, attractions, facilities, services, and activities around a specific center of interest, which represents the core of the destination-marketing mix and creates an overall visitor experience, including emotional aspects for the potential customers. A tourism product is priced and sold through distribution channels and it has a lifecycle. Tourism Satellite An international standard developed by United Nations World Tourism Organization to present Account economic data relative to tourism within a framework of internal and external consistency with the rest of the statistical system through its link to the System of National Accounts. It is the basic reconciliation framework of tourism statistics. Tourism segment A way of describing components of visitor demand in accordance with common attributes, such as origin, socio-demographic characteristics, and motivations for travel. Segments are often matched with a range of travel services, i.e. transportation, accommodation, activities/ services/products consumed while on travel. Tourist A visitor (domestic, inbound, or outbound) is classified as a tourist (or overnight visitor), if he or she says at least one night (but less than a year), for any main purpose (business, leisure, or other personal purpose) other than to be employed by a resident entity in the country or place visited. Trip Travel by a person from the time of departure from his/her usual residence until he/she returns (round trip). Trips taken by visitors are tourism trips. TOURISM DIAGNOSTIC TOOLKIT 7 Executive Summary Tourism is recognized as a key sector for job creation and sustainable development. Consequently, the demand for tourism solutions among World Bank Group (WBG) client countries is growing. To meet this demand, the tourism specialists in the Finance, Competitiveness & Innovation Global Practice (FCI GP) have developed this Tourism Diagnostic Toolkit as a comprehensive reference for project and operational teams conducting diagnostic activities to guide the design and scoping of tourism projects. The Tourism Diagnostic Toolkit provides systematic guidance for identifying and assessing opportunities and constraints in the tourism ecosystem, as well as identifying potential points of entry for WBG interventions. The toolkit includes information on the WBG’s current tourism offer and the tourism diagnostic process, a set of indicators and checklists for conducting secondary research. It also includes a process to assess the country’s readiness for sustainable development of its tourism sector. This toolkit should be used in tandem with FCI’s Tourism Theory of Change.1 The Tourism Diagnostic Toolkit is part of an evolving set of FCI tourism resources, which are available for project teams to use as part of their work on tourism projects. 1 Twining-Ward, L; Messerli, H; Sharma, A & Villascusa Cerezo, JM (2018). Tourism Theory of Change. World Bank Group, Washington, DC. 8 TOURISM DIAGNOSTIC TOOLKIT The Diagnostic Process The tourism sector diagnostic process follows four main steps: PROJECT PLANNING DESK RESEARCH IN-COUNTRY ASSESSMENT ANALYSIS AND REPORTING Since tourism is a multi-stakeholder sector that influences and is influenced by many parts of the economy, the toolkit contains guides for desk research and in-country investigations to help streamline the process. The Tourism Theory of Change can further assist specialists in targeting areas of focus. Diagnostic Outcomes This diagnostic process aims to improve the success of tourism projects by helping specialists to accurately pinpoint the key challenges and develop solutions to address them. These solutions include initiation of policy reforms that remove restrictions affecting the sector, identification of public and private investments in tourism and related infrastructure, support for organizations that improve firm-level capability, development of alternative access to finance solutions, and capacity building.2 2 For more information on how the Tourism Diagnostic Toolkit can drive value for your project or organization, please contact FCI’s Global Tourism team at tourism@worldbankgroup.org TOURISM DIAGNOSTIC TOOLKIT 9 Section One: Tourism at the World Bank Group WHY TOURISM FOR DEVELOPMENT? President Jim Yong Kim further highlighted the sector’s ability to create jobs, attract foreign investment, and conserve wildlife Tourism is a powerful driver of economic growth and job creation, and biodiversity. The objective of tourism development from particularly for emerging economies.3 Worth US $7 trillion and the World Bank perspective is to transform tourism assets growing,4 tourism is the largest service sector in the world and into reliable sources of income; to create sustainable jobs; accounts for 10.4 percent of global Gross Domestic Product and to address market failures that restrict growth, inclusion, (GDP).5, 6 Tourism’s contribution to global GDP is forecasted to and investment in tourism. Tourism also has an important grow an average of 3.8 percent per year over the next 10 years. role to play in the completion of the SDGs, particularly SDG 12, An effective engine for employment generation, the sector Sustainable Production and Consumption. supports 313 million people worldwide, or one in ten jobs.7 There are many ways tourism can contribute to sustainable Tourism can play an integral role in fulfilling the World Bank development. Some of the most important ones are Group’s (WBG) twin goals of ending extreme poverty and highlighted below. For more, refer to the WBG document boosting shared prosperity. At the WBG Tourism Forum in 2015, 20 Reasons Sustainable Tourism Counts for Development.8 Figure 1: 20 Reasons Sustainable Tourism Counts For Development Sustainable Resource Efficiency, Environmental Economic Growth Protection, and Climate 1. Stimulates GDP Growth 13. Facilitates Conservation 2. Increases International Trade 14. Raises Climate Change Awareness 3. Boosts International Investment 15. Propels the Blue Economy 4. Drives Infrastructure Development 5. Supports Low-Income Economies Cultural Values, Diversity, and Heritage Social Inclusiveness, Employment, and Povery Reduction 16. Protects Cultural Sites 17. Sustains Intangible Culture 6. Creates Jobs Efficiently 7. Promotes Inclusive Growth 8. Strengthens Rural Communities Mutual Understanding, 9. Revitalizes Urban Areas Peace, and Security 10. Improves Access to Income via Travel Tech 18. Spreads Philanthropy 11. Benefits Women 19. Cultivates Intercultural Understanding 12. Bolsters Artisans 20. Aids Post-Conflict Recovery As defined by the International Monetary Fund (IMF). 3 4 United Nations World Tourism Organization (UNWTO). (2017). Tourism highlights, 2016 Edition. World Travel & Tourism Council (WTTC). (2018). Travel & Tourism Global Economic Impact & Issues 2018. 5 https://www.wttc.org/-/media/files/reports/economic-impact-research/documents-2018/global-economic-impact-and-issues-2018-eng.pdf 6 United Nations World Tourism Organization (UNWTO). (2017). 2017 Annual Report. World Travel & Tourism Council (WTTC). (2018). Travel & Tourism Global Economic Impact & Issues 2018. 7 https://www.wttc.org/-/media/files/reports/economic-impact-research/documents-2018/global-economic-impact-and-issues-2018-eng.pdf World Bank Group. (2017). 20 Reasons Sustainable Tourism Counts for Development. Tourism for Development Knowledge Series. 8 https://openknowledge.worldbank.org/handle/10986/28388 10 TOURISM DIAGNOSTIC TOOLKIT THE WORLD BANK GROUP • Improve business environment. This involves reducing TOURISM OFFER regulatory constraints that inhibit access and growth. These constraints often include ineffective licensing, The WBG works across many fronts in tourism, including registration, and investment approval processes; excessive providing governments with sector policy advice, taxation; ineffective aviation policies; and restrictive visa strengthening governance on national and sub-national levels, requirements. The WBG also works to increase the capacity improving training and education for people to secure jobs of regulatory bodies to manage improved systems. and to provide a quality product, investing in infrastructure • Enhance firm performance. These activities are designed and hotel properties, protecting the natural environment and to improve firm performance through financial mechanisms, cultural heritage, building inclusive value chains, and ensuring enable access to technology, build quality and standards, communities benefit from tourism. expand skills, and develop and strengthen supply chains. • Expand market opportunities. The WBG helps clients The WBG’s objective is to build mobilize public and private investment and works with competitive, sustainable, and destinations to improve public-private coordination and commercialize key assets. This includes identifying inclusive destinations, which and creating new markets, appraising investment opportunities and working to ensure that they are ready help countries achieve their to take to market. The WBG also assists governments in development objectives. defining the type and scale of public investment programs that are necessary to support tourism and to ensure that Competitive: destinations that are attractive, easy to access communities benefit from them. and operate efficiently, and where the sector can make a Sustainability Products positive contribution to economic development.9 • Policy direction and good leadership. The WBG also Sustainable: tourism that takes full account of its current helps governments to set effective tourism policies and future economic, social, and environmental impacts; and and plans, strengthen sector governance and delivery addresses the needs of visitors, the sector, the environment, mechanisms, improve research and marketing standards, and host communities.10 and capacity building. Inclusive: tourism development that brings broad benefits • High-quality assets. Another core product is developing across the population, including women, youth, indigenous high-quality tourism assets, which may include diversifying groups, and those marginalized through geography, conflict, tourism product offerings, improving last-mile access, and or climate-related events.11 upgrading tourism-related infrastructure. The ownership and management of sites and the ability to maintain The World Bank works on tourism in the following ways: them in the long term are important focuses on this area. Competitiveness Products Inclusion Products • Strengthen competitive position. The WBG carries • Inclusive supply chains. The WBG works to further the out research and analysis to help client governments inclusion of marginalized and under-serviced groups in the understand and define their competitive positions; tourism supply chain through supply-chain linkages, skills identify the barriers to growth; strengthen their product development, adoption of new technologies, and stakeholder offerings; and identify new opportunities for growth. engagement, with a special emphasis on gender equality. 9 The competitiveness of a destination depends on: i) the competitiveness of the firms that supply services in the destination and ii) the supply-side factors that must exist at a destination that determine its image and attractiveness. (Enright, M., 2004). 10 United Nations World Tourism Organization (UNWTO). (2016). International Year of Sustainable Tourism for Development 2017. 11 Bakker, M., & Messerli, H. (2015). Inclusive growth versus pro-poor growth: Implications for tourism development. Tourism and Hospitality Research, 17(4), 1-8. TOURISM DIAGNOSTIC TOOLKIT 11 • Human Capital. The World Bank assists clients in SUSTAINABLE TOURISM GLOBAL improving destination quality, development impact, SOLUTIONS GROUP and inclusiveness, through new and strengthened small and medium-sized enterprise (SME) links, upskilling, The WBG’s work in tourism is coordinated through the employment services directed at local labor markets, Sustainable Tourism Global Solutions Group (GSG), which and support for community engagement in planning, represents the full range of tourism’s needs, drawing development, and entrepreneurship opportunities. members from all parts of the WBG. The GSG fosters open communication, collaboration, and knowledge exchange This work is a combination of rapid-response support and across the WBG on project design and implementation. longer-term engagement. With rising demand to develop the The WBG’s tourism offerings, combined with natural tourism sector, the World Bank Group is increasing its capacity and cultural heritage conservation, management and to design and help implement solutions that cut across infrastructure, and livelihoods improvements can lead to Global Practices, Cross-Cutting Solutions Areas (CCSAs), IFC transformational impact with a focus on sustainable growth, and MIGA. Interventions typically draw on a wide range of job creation, and poverty alleviation. expertise from across the WBG. Many parts of the World Bank Group are active in tourism including Global Practices, Cross-Cutting Solutions Areas, IFC and MIGA. Finance, Competitiveness & Innovation Global Practice (FCI) works in partnership with governments and the private sector to assist at critical stages along the tourism development process. FCI provides detailed industry diagnostics and rapid assessments; helps countries develop integrated solutions that build competitive, sustainable, and inclusive destinations; and offers financing and technical advice to implement those solutions. FCI includes tourism sector specialists with deep industry experience in both the public and private sectors in such fields as policy, strategy and planning, accommodation and tour operations, market analysis, marketing and promotions, training and skill development, finance and investment. The FCI Global Tourism team plays a key role in the scoping, diagnostic and design phases. It is often the entry point for the development tourism projects within the WBG. 12 TOURISM DIAGNOSTIC TOOLKIT TOURISM DIAGNOSTIC TOOLKIT 13 Section Two: The Tourism Ecosystem Figure 2: A Typical Tourist’s Points of Contact and Services TOURIST ORGANIZATION TRANSPORT ACCOMMODATION EXCURSIONS SHOPPING OF TRAVEL Excursion and event Travel agent Airlines Hotels Commercial retail operators Tour operator Cruise lines Lodges Local guides Local bazars Experiences offered Individual Car rental services Camping place through digital Artisanal centers (online booking) platforms Other transport Peer-to-peer services accommodation Natural assets in tourist destinations Flora, fauna, environment, historical sites, identity groups Source: Adapted from Inrate. A typical tourist interacts with many different suppliers the policy and legal frameworks that are necessary to produce, in organizing a trip. Travelers take various forms of deliver and regulate the tourism products and experiences we transportation (planes, trains, boats, cars) to reach their travel purchase. The tourism ecosystem is complex, involving multiple destination and to move around when they get there. When actors, sub-sectors, markets, stakeholders, and potential they arrive, visitors stay in hotels, with friends or family, or in intervention entry points. Teams need to understand the other lodgings. They consume goods and services provided by structure of the tourism sector, the relationships between the individuals or enterprises and enjoy activities available. Some main drivers of supply and demand, key stakeholders, and the of the tourism expenditure stays in the destination, while other language of tourism before starting a diagnostic assessment. spending goes to other international suppliers along the way. These transactions and related industries are all part of the People who travel away from ‘tourism sector’. However, our experience as a consumer tells us little about the home for more than 24 hours processes, distribution systems, transaction mechanisms or are tourists. 14 TOURISM DIAGNOSTIC TOOLKIT Travelers travel agencies (OTAs) like Expedia and Booking.com or researched through metasearch companies like KAYAK. People travel for many reasons: for work (business trips), Intermediaries like tour companies or wholesalers assemble holidays (leisure), education, shopping, medical, religious, and other tourism products (e.g. “5 nights in the Bahamas with sports, as well as visiting their friends and relatives. air, accommodation, meals, and transfers included” or a These are examples of market segments. Each segment can “21-day Patagonia Safari by Intrepid”). These firms aggregate potentially contain dozens of ‘sub-segments’. For example, individual elements (accommodation, transport, activities) into within the leisure segment, people might be interested in tour packages. They do this by contracting to buy the separate the beach, adventure, sightseeing or walking experiences. parts of the package in bulk and in advance from individual These segments are defined by their activity preferences suppliers. Some tour operators specialize in segments, such or their purpose of visit. Segments can also be defined by as activities (bird-watching or scuba diving), geographic the demographic or personal characteristics of the traveler locations (Indian Ocean Islands), age groups (adventure tours (income, age, gender, education), their method or mode for 18-35s), or price groups (luxury travel). of travel (cruise, land, air), travel booking method (group, When tourism companies develop a product, it is vital to package, FIT, etc.), or expenditure level of the visit (high- identify who the buyer is: a tour company, wholesaler or end or luxury, economy, budget). These segments require distribution channel (B2B), or the end consumer (B2C). For different levels of service and organization at the destination the meetings, incentives, conventions, and exhibition (MICE) and are very important in creating product development and market, the buyer may be a professional conference organizer marketing strategies. (PCO). They are buying on behalf of their clients, such as an industry association that is holding the conference or event. Linking travelers to products The consumer weighs many factors while making their travel Complex relationships decisions, including: Behind the scenes, there is a complex web of supplier • The appeal of the destination and its comparative relationships needed to assemble the product and deliver advantage: “What can I do there?” it to the consumer. The customer rarely sees or interacts with many of the necessary product distribution channels or • Access: “How do I get there and how long does it take?” organizations that bring a travel experience to market. Some • Competitiveness: “Am I getting good value for my money?” of these are shown on the following page. Many people book their travel in advance, arranging transportation, accommodations, and sometimes even specific activities before they leave home. Increasingly, travelers may research and book travel on the internet, or through a travel agent or a tour operator. These links between a consumer’s travel destination and the travel suppliers are ‘distribution channels’. They determine how the ‘products’ developed by the suppliers of goods and services find their way to the ‘market’ where consumers can purchase them. Some products are sold directly to the consumer (buying a hotel room as a ‘walk-in’ or through the hotel’s website). Others are sold by intermediary companies, such as online TOURISM DIAGNOSTIC TOOLKIT 15 For tourism to work efficiently, it requires the harmonious interplay of activities organized and managed by a large number of groups that go well beyond the consumer and the service provider. 16 TOURISM DIAGNOSTIC TOOLKIT Figure 3: Tourism Product Distribution Channels SUPPLIERS AIRLINE WEBSITE AIRLINE SALES OFFICE/CALL CENTRE TRANSPORT PROVIDER (E.G. AIRLINE, CAR RENTAL) GLOBAL DISTRIBUTION SYSTEMS (GDS) INBOUND TOUR WHOLESALE OPERATOR (ITO)/ Advertising and sales TOUR TRAVEL DESTINATION directing to: OPERATOR AGENT MANAGEMENT ONLINE TRAVEL (OFFSHORE) COMPANY (DMC) EBOOKING SYSTEMS HOTEL HOTEL SALES OFFICE/ CALL CENTRE TOURIST HOTEL WEBSITE OTHER TOURISM PRODUCTS AND SERVICES E.G. LOCAL TOURS local labor (hotel staff, tour guides, drivers), utilities, fuel distributors, etc. ATTRACTIONS Suppliers to tourism operations, e.g. taxis, food producers, handicraft artisans, RESTAURANTS TOURISM DIAGNOSTIC TOOLKIT 17 In such a complex system, achieving optimal alignment focusing on those that match well with their natural (national among these pieces takes effort and planning from a variety parks, beaches, etc.) or manmade endowments (cultural and of entities. historic heritage, conference centers, shopping malls, events, etc.). In this way, they leverage their comparative advantages. As the tourism sector comprises several sub-sectors, the By targeting the right segment, operators and policymakers diagnostic process must consider a very wide range of suppliers, can be both more effective and more competitive. including accommodation, food and beverage, transport (e.g. aviation, cruise, rail, car rental, taxi), travel services (e.g. retail How are products reaching the market? Whether a hotel travel agents, tour operators, tour guides) and recreation or runs at full capacity, can offer a large variety of local fruits for attraction sub-sectors. While this might make it more complex breakfast, or can provide onsite car rental options depends than a typical sector analysis, understanding the destination’s on ‘access’ – both in terms of the infrastructure needed key products and how they get to market is an essential first to transport tourists, as well as the channels developed to step. facilitate the movement of goods. In virtually every destination the WBG operates in there is a market failure in the tourism The following key questions will help teams develop a quick sector related to access. Raw materials and basic ingredients, initial understanding of the dynamics of a destination, the such as efficient transport systems, are not aligned to ensure structure of the industry and the relationships between the the ‘product’ is available to visitors. components. This toolkit provides detailed checklists and guidelines to build What products are selling and why? Asking this question on these initial questions to develop a full diagnosis which will allows practitioners to view the sector by those segments identify and assess all the market failures that affect the health commercially active, expressed both in terms of market share of tourism in a destination. and contribution to the economy. What is driving tourists to consume these goods and services? Are they visiting for Tourism Stakeholders business, pleasure, or both? Are they attending conferences or For tourism to work efficiently, it requires the harmonious engaging in cultural heritage excursions? The question “What’s interplay of activities organized and managed by a large selling?” captures both the activities and experiences tourists number of groups that go well beyond the consumer and seek, as well as the offer provided to them. the service provider. Understanding the destination’s key Who’s buying? A major determinant of what the destination stakeholders, their roles in tourism, and their relationships is offers depends on the demographic of those visiting. Where the next crucial step in scoping tourism-specific interventions. do they come from? How old are they? How much are they The following figure describes the groups of stakeholders spending? Successful enterprises and destination management involved, and briefly describes their role in the sector’s organizations understand the value of these questions and development and operation. The annexes include detailed lists subsequently target specific markets by organizing themselves of stakeholders and the type of questions to ask as part of the to supply the products these market segments seek, typically by diagnostic process. 18 TOURISM DIAGNOSTIC TOOLKIT Figure 4: Tourism Stakeholders LOCAL COMMUNITIES PUBLIC SECTOR As direct or indirect Includes national and sub- suppliers, staff, resource national agencies responsible owners, beneficiaries of for tourism, investment, infrastructure investment environment, infrastructure, and those adversely affected land management, by tourism. immigration, health, etc. TOURISTS TOURISM SUPPLIERS As defined by tourist market Providers of primary tourism segments, including purpose products and services (e.g. of visit, special interest hotels, airlines, cruise/rail/ activity, geographic source, car rental companies, travel demographic profile, etc. agents, online booking agents, tour operators, INVESTORS restaurants/bars, and May be suppliers themselves attractions). or financiers of/shareholders in the operation, including INDIRECT SUPPLIERS commercial banks and funds. Suppliers to tourism operations (e.g. food DEVELOPMENT PARTNERS producers, handicraft Development agencies artisans, taxis) and other supporting tourism indirect suppliers (e.g. sector directly (e.g. fuel, security, furniture, training) or indirectly (e.g. construction materials, infrastructure). education providers, etc.). TOURISM DIAGNOSTIC TOOLKIT 19 Structure of the Tourism Sector In addition to knowing the stakeholders, it is also important for project teams to understand the wider structure of the tourism sector including the local policy framework and governance mechanisms, which affect how the sector functions. This is essential to identifying where the WBG should intervene to ensure that tourism work aligns with both the WBG and client goals. By visualizing the sector’s needs from a structural perspective (see figure below), the potential for WBG intervention becomes better defined and points of entry can be identified more clearly. The figure below shows the tourism ecosystem and how various components fit together. Figure 5: Tourism Sector Structure LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 SECTOR MANAGEMENT ENABLERS TOURISM ENTERPRISES RESOURCE BASE AND GOVERNANCE CLUSTERS (JOBS AND (SUSTAINABILITY) GROWTH) Vision Training and Goods and Services Natural Environment Education Supplying Tourism Legal and Sector Policy Access and Transport Culture and Heritage Regulatory Licensing Sector Strategy and Standards Accommodation Urban Areas Public Institutional Investments and Activities, Facilities Arrangements Access to Finance and Attractions Image and Institutions Marketing Competitive Community based Sustainable Physical and Civil Society Inclusive Value Chains Infrastrucutre Involvement Planning and Security, Health Monitoring Results and Safety Framework Environmental Information and Cultural and Statistics Management Public Private Business Efficiency Dialogue Mechanism and Competitiveness 20 TOURISM DIAGNOSTIC TOOLKIT Successful Destinations come. Next are destination enablers. These include efficient visa regimes, easy air access and basic tourism infrastructure, For a destination to be consistently successful, it must provide such as lodging and ground transportation. On the next level more than just experiences that tourists enjoy. It must meet the are the attractors. These are the core tourism products, sites, complete range of needs which make the total visitor experience and experiences, as well as the business enabling environment seamless, enjoyable and memorable. It also must be managed for private-sector growth. Destination enhancers are quality in a sustainable way that meets the needs and expectations of service, environmental standards, and technology. Finally, at the host communities. This is shown in a pyramid below. the apex are the delighters, which are the factors that inspire At the bottom of the pyramid are the basic preconditions visitors to return and recommend the destination to family and required of every tourism destination: safety, security, and friends. A successful tourism destination delivers on all these health. Without these in place, very few visitors are likely to needs in a smooth and seamless manner. Figure 6: Hierarchy of Destination Needs DELIGHTERS Quality Innovation Marketing ENHANCERS Service Experience Environment ATTRACTORS Product, Culture, Business, Climate and Cost ENABLERS Visas, Political Support, Air Access, Hotels PRECONDITIONS Security, Safety, Health, Infrastructure Source: World Bank Group. TOURISM DIAGNOSTIC TOOLKIT 21 By improving the alignment Destination of needs, destinations become As tourism covers several sub-sectors, a diagnostic must more competitive, sustainable, consider the accommodation, food and beverage, transport (e.g. aviation, cruise, rail, car rental, taxi), travel services (e.g. and inclusive. retail travel agents, tour operators, tour guides) and recreation and attraction sub-sectors. Understanding the destination’s The FCI Approach key stakeholders, identifying key suppliers and distributors, and how tourists currently purchase tourism experiences, There are often many points where tourism does not work efficiently due to tourism’s complex structure with multiple helps to highlight ways to expand business opportunities and sub-sectors and the need for close alignment between identify constraints to growth. agencies and the public and private sectors. This is true for almost every tourism destination and is particularly relevant for the destinations where the World Bank Group works. Market In some cases, the raw assets (the natural, cultural, and Realizing tourism’s potential requires a destination to be man-made endowments) and other basic elements, such as appropriately positioned in the marketplace. For emerging infrastructure, products, and markets, are not well aligned. destinations, prevailing market perceptions should be In other cases, the government policy makes markets considered before determining a competitive positioning inefficient and does not support tourism’s growth. based on strengths of current and potential tourism supply In designing interventions, it is not only essential to understand (attributes and product) compared to tourist market demand. the barriers to sector growth, but also to understand the Benchmarking destinations against other comparable and sequence of interventions which will have the best chance competitive destinations can help identify opportunities and of success. A very competitive business environment will not areas for intervention. lead to new investment if poor visa or transportation services mean visitors prefer to go elsewhere. Interventions can be targeted and sequenced to have Business Environment the maximum impact on sector and economic growth by For prospective investors, a destination must offer a systematically identifying the barriers, exploring opportunities competitive positioning within the tourist market and a for improvement and then assessing them in the context of competitive business environment (including a positive the industry structure and the framework for delivery. enabling policy and institutional framework, as well as ease of A sound diagnostic approach assesses the critical factors access to cost-competitive inputs). These conditions are also that can enable or impede the sustainable development of a critical for the expansion of local business opportunities within country’s tourism sector. To do this systematically, this toolkit the tourism industry. organizes the factors into the sector’s three key drivers: Destination, Market, and Business Environment. These are elaborated in the following sections of this toolkit. 22 TOURISM DIAGNOSTIC TOOLKIT TOURISM DIAGNOSTIC TOOLKIT 23 While it is important to be as thorough as possible, there • Major private sector institutions (and their role) in sector. are times when a more rapid assessment is required. In this • Major regulatory constraints and issues related to sector case, the process can be streamlined by focusing on the (on-site consultation). core indicators or sector health by using a rapid assessment process. These indicators are shown below. Competitive position (the destination’s relative position to key competitors) Guidelines for Rapid Assessment RANKINGS Context (basic information needed to understand the • WEF Ranking with identified competitive advantages sector) and disadvantages. • WBG Doing Business Ranking with identified competitive IMPORTANCE AND MACRO SETTING advantages and disadvantages. • Size of sector (revenues, turnover, # visitors). • Any other specialized rankings (e.g. MICE, adventure • Sector share of GDP, employment and exports. travel). • Growth and trends (GDP, employment, visitor numbers). BENCHMARKING COMPETITIVE POSITION • Level of tourism investment. • Tourism offering in terms of natural assets, cultural • Tourism share of foreign exchange. assets, and quality of visitor experience. SUPPLY • Current tourist product offerings, positioning and • Main tourist attractions (and locations). performance (e.g. beach tourism, ecotourism, sporting • Number of existing hotels (by segment). events, business travel, religious travel, cultural events, learning opportunities). • Large brand operators already in market. • Price competitiveness in terms of total cost to average • Number of tour operators (by segment). visitor, e.g. average air ticket costs and tax, average hotel DEMAND room rates (by segment), fuel prices. • Visitor behavior: purpose of visit, average length of stay, • Safety and security in terms of the general perception average daily expenditure (by category). of the market, crime rates and natural disaster threats. • Occupancy rates of existing hotels (by segment). • Tourism sector prioritization and leadership (government • Leading source markets, segments and demographics of support). consumers (domestic/international). • Quality of tourism sector policy rules and regulations • Market access: airlift (number of flights, seats and (aviation policy, visas, environmental conservation, taxes, distance to major markets). incentives, licensing, zoning, standards, certifications, • Demand for new investment (who wants to invest, expat work permits). where and why). • Quality of tourism related infrastructure (e.g. # hotel rooms, # airports, # flights per day, seat availability, POLICY AND INSTITUTIONAL CONTEXT quality of roads, road density, rental companies, ICT • Existing tourism policy, master plan and strategy (up- quality/connectivity). to-date, approved, implemented). • Quality of human resources (e.g. labor availability and • Identify previous tourism work, conclusions drawn by quality, tourism training programs, language skills, local other donors, MFIs, and consultants. universities). • Existing World Bank Group projects. • Key market concerns (e.g. seasonality, access to finance, • Major public institutions (and their role) in sector. government support). 24 TOURISM DIAGNOSTIC TOOLKIT Opportunities assessment (possible market, policy and institutional entry points) OVERALL COUNTRY OPPORTUNITY ASSESSMENT • Potential new sources of economic growth and sources of comparative advantages, e.g. natural and cultural assets, labor costs, unique offerings, improved linkages. • Potential new/expanded product opportunities, e.g. sun, sand, and sea, other natural offerings, sports and events, adventure activities, cultural offerings, MICE. • Potential new/expanded market opportunities: socio- economic profiles and geographic origin such as diaspora, students, backpackers, young professionals, millennials, business travelers, families, couples, and retirees. POTENTIAL POLICY AND INSTITUTIONAL CONSTRAINTS • Government marketing and promotion of the tourism sector. • Quality and coherence of tourism related policy documents and whether they are being used and enforced in practice. • Access to land (availability, type and security of title, use as security). • Visitor access (visas and border controls, transport costs, visitor taxes and charges). • Investor access (capital restrictions, ‘prohibited list’). • Burden of regulatory approvals, inspections, registration and licenses for new tourism sector investors by category (e.g. hotels, restaurants, taxis, tour operators, etc.). • Barriers to trade for key imports (construction materials, labor, food). • Input costs (land and construction, utilities, labor, consumables). • Potential issues with labor force (e.g. restrictive work visas, quotas, high minimum wage, social security, hiring/firing regulations, training, gender issues). • Adequacy and efficiency of environmental and conservation policies. TOURISM DIAGNOSTIC TOOLKIT 25 Typical Interventions The following table shows some common tourism development objective of ensuring destinations are competitive, sustainable constraints that are likely to be identified in a diagnostic and inclusive. It also illustrates some suggested approaches to assessment and how they relate to the wider development address these constraints. Table 1: Common Tourism Constraints and Suggested Approaches PROBLEMATIC BUSINESS ENVIRONMENT SUGGESTED APPROACHES • Burdensome licensing, regulatory, and legal frameworks • Regulatory reform • Outdated and contradictory laws • Investment promotion • Poor tourism investment environment • Visa facilitation • Ineffective incentives for tourism • Development of concession frameworks • Visa and access cost and burden and other PPP mechanisms • Government and SOEs crowding out private sector • Tendering provision of services to the • Poor public-private dialogue (PPD) private sector • Low security and visitor safety • Improved Infrastructure COMPETITIVE • Infrastructure constraints CONSTRAINTS LOW PERFORMING FIRMS SUGGESTED APPROACHES • Low product quality • Quality improvement programs • Difficulty accessing finance • Improved access to finance • Closed markets for private sector • Reform ‘reserved’ list to open markets • Lack of access to land • Opening access to public land • Lack of legal know-how • Land title guarantees • Poor marketing and market access • Capacity building • Poor working conditions • Supply chain development or strengthening • Weak SME support and incentives • Utilization of new technology • Low management and business development capacity LACK OF CLEAR POLICY DIRECTION SUGGESTED APPROACHES • Poor prioritization and vision • Tourism planning • Lack of integrated destination planning • Tourism policies • Lack of data on demand and supply • Tourism marketing and research • Limited public-sector capacity • Improved standards and capacity • Poor service quality • Licensing and regulation simplification • Lack of public sector investment • Poor marketing and promotion SUSTAINABILITY • Lack of clear direction on visa policy CONSTRAINTS LOW PERFORMING ASSETS SUGGESTED APPROACHES • Poor inter-agency coordination • Governance and coordination • Poor visitor and site management • Product development • Limited income from tourism • Site management and development • Lack of environmental and heritage regulations • Poor heritage and culture management • Poor natural assets management • Outdated and undifferentiated product • Infrastructure constraints LOW STAKEHOLDER ENGAGEMENT SUGGESTED APPROACHES • Low female inclusion • Business support INCLUSIVENESS • Lack of community involvement and consultation mechanism • Online engagement CONSTRAINTS • Weak supply chain • Skills development • Low youth involvement • Stakeholder engagement • High geographic concentration • SME strengthening • Low tourism awareness • High degree of informality 26 TOURISM DIAGNOSTIC TOOLKIT TOURISM DIAGNOSTIC TOOLKIT 27 Section Three: Diagnostics Process A sound diagnostic process is essential to determining the Others, such as tour wholesalers or airlines, may be in key source nature and scope of interventions. The first step towards markets or elsewhere. The annexes provide details on the types effective project design is knowing the status of market demand, of stakeholders to interview and what questions to ask. destination needs, industry structure, and organizational The following four steps are critical to most diagnostic setting, as well as the priorities of the destination stakeholders. assessments, including tourism diagnostics. The scope, The diagnostic process involves diverse types of activities level of detail, goals and activities will shape the diagnostic including desk research, surveys, interviews, destination activities. For example, a project including a strong investment assessment, analysis, and reporting. Knowing which component requires a deeper investment policy assessment to stakeholders will reveal which kind of information is essential. be conducted in-country. Similarly, if the focus of the project is As the tourism sector involves many sub-groups, teams will likely to be the MICE market, consultation with local meeting need to cast a wide net. Many of these will be in the country. planners and visits to meeting venues will be essential. Figure 7: Diagnostic Process PROJECT PLANNING • Establish a Team • Develop a Scope of Work (objectives, method, outputs) • Design an Implementation Plan (activities, time, budget) DESK RESEARCH • Conduct a Literature Review • Identify Benchmarks • Produce Destination and Stakeholder Maps IN-COUNTRY ASSESSMENT • Execute Stakeholder Consultation (including interviews, focus groups, and workshops) • Visit Sites to Assess Product Quality • Carry Out Additional Analysis as Required by Project (e.g. product, marketing, environment, gender) ANALYSIS AND REPORTING • Analyze Information • Draft Report and Validate • Finalize Report 28 TOURISM DIAGNOSTIC TOOLKIT Project Planning mapping. Proper desk research increases the efficiency of the in-country assessment. Literature review. This is a critical part of the diagnostic The first stage of the diagnostic is establishing the team. process so that the team understands the context, the Well-balanced teams require global experience and local current situation, what research has already been done, and knowledge, qualitative and quantitative research skills, cross- the scope of previous tourism projects in the destination. cultural relationship ability, and an eye for both the big picture The team should identify and review all relevant documents, and the details. such as recent studies on the destination, tourism plans, Depending on the scope of the project, the project will need relevant laws, and reports like World Economic Forum’s the following roles: Travel & Tourism Competitiveness Index (TTCI) and UNWTO • Team leader Tourism Barometer and the WTTC’s Country Reports. The core indicators are shown in bold in Annex I. The checklists in the • Local coordinator annexes provide the fundamental questions for this research • Subject-matter expert(s) determined by the project’s and potential sources of information. These questions focus examine the economic, political, and social context; regulatory • Subject matter researcher and analyst framework for tourism; governance and leadership; demand • Administrative support analysis; product analysis, and more. It is critical to identify the data gaps from research and questions to follow up while on The next step of planning is preparing the diagnostic’s Scope mission. Of Work (SOW), which is usually handled by the Task Team Leader (TTL). The SOW is an important document that helps Through the literature review, teams should be able to identify ensure the team is clear on outlines of the objectives, activities, the tourism sector’s primary sources of growth based on its roles and responsibilities, methodology and outputs. comparative advantages, products, segments, and source markets. A preliminary understanding of the country’s It is also good practice to prepare Terms Of Reference (TOR) constraints should also emerge. Examples may include for the task team. This is also required if the task or parts of environmental and sustainability concerns, infrastructure it are to be handled by a consultant. The annexes include a gaps, lack of government prioritization, and institutional sample TOR. constraints. Once the SOW and TOR are finalized, the TTL or the team can Benchmarking. The next step is to benchmark the create an implementation plan. It may be as simple as a table destination’s performance against comparator countries. with a list of activities, timeline, and responsibilities or a full- Relevant comparator countries can be selected based on the scale Gantt chart. similarity of their tourism products or segments; similarities in the size or structure of the economy; countries that are Desk Research vying for the same source markets, or a selection of regional competitors. Depending on the project time frame and budget, project teams can benchmark two to four comparator Once the framework for the diagnosis is agreed, the project countries. Sometimes the client will specify or be interested team can begin the initial analysis. This includes the literature in suggesting comparators. A detailed benchmarking checklist review, benchmarking, and destination and stakeholder shown in Annex II. TOURISM DIAGNOSTIC TOOLKIT 29 Destination and stakeholder mapping. This can help plan the experiencing the existing product and services through site in-country assessment and maximize efficiency of the mission. visits. The two key components of the field assessment are: Many resources can assist with destination mapping, Stakeholder consultation. This is the most critical part of which describes tourist flows and points of interest. Check the onsite diagnostic. This process should start at the highest destination coverage in guidebooks, TripAdvisor, blogs and level to confirm the mission objectives and set expectations other tourism websites; review tour operator itineraries with the client. High-level discussions should also be used to for destination inclusion and evaluate other sources for verify the big picture and desired long-term outcomes of a destination information. In parallel, project teams should work tourism intervention (see Theory of Change box on page 34). with the local WBG office to identify the main stakeholder Interviews should then follow with key government agencies, groups and where they are located. Annex III features a industry associations, and owners and managers of tourism detailed list of stakeholders. businesses. Annex III also lists essential interview questions for different groups of stakeholders. In-country Assessment Site assessment. This is usually undertaken to verify or review key sites and those prioritized as having the potential for development. During site visits the team should consult This is the most important part of the diagnostic process as tour guides, review visitor log books or registers, informally it enables the team to use first-hand knowledge to identify interview tourists, visually document the site through and verify constraints to growth, check assumptions about photographs or video, and meet with site managers. The destination opportunities and assess the capacity and team should note access routes, any infrastructure shortfalls readiness of the institutions to drive improved performance (parking, signage, restrooms), any value additions (souvenirs, of the sector. Activities involved in the assessment include: restaurants, gift shops), or value addition gaps. Annex IV stakeholder consultation through interviews, focus group features a site assessment checklist, which goes into more discussions and surveys, destination assessments, and detail. Adapted from FCI’s Promoting SME Growth in Agribusiness Diagnostic Toolkit 30 TOURISM DIAGNOSTIC TOOLKIT FIELD MISSION TIPS quality of questions over quantity – focusing on priority areas for discussion established prior to the interview. Planning: Grouping respondents through focus group discussions, Before conducting stakeholder interviews, the team should industry meetings or townhalls may help to reach broader schedule an initial meeting with the Country Management audiences. Unit (CMU) team to confirm objectives and seek any insights It may also be appropriate to survey the key stakeholders in from the country team. advance. Annex IV features a sample survey for in-country For many meetings, formal letters will need to be sent at least tourism businesses and a survey for the travel trade which two weeks ahead of time. may be in source markets outside the destination. As new stakeholders or documents for review are referenced Analysis: during interviews, team members can keep a running list of Leaving adequate time in the schedule for team discussion is documents and action items that arise from meetings. critical. Team discussion can take up to 20-30 percent of the Conducting interviews and surveys: team’s time during this stage. Interviewers find nightly or bi-nightly team discussions useful to share what they The diagnostic team needs to conduct sufficient interviews to have heard during the interviews, confirm understanding, ensure the project has enough data to identify emerging trends and identify further areas for analysis, particularly when and to gain representative views and diversity of opinion. interviewers separate to cover more stakeholders. While teams should plan key meetings, it is important to It is helpful for teams to develop and adopt a standard interview allow flexibility for impromptu meetings and changes in notes template, which will facilitate better analysis and report agenda as new issues arise, depending on the cultural context. writing at a later stage. It is suggested that notes are prepared Given interviewees’ time constraints, teams should prioritize at the end of each week (if not nightly) in the template. TOURISM DIAGNOSTIC TOOLKIT 31 Analysis, Validation and Reporting The results of this first round of analysis can be presented in an impediments response framework which lays out the key constraints to sector growth, along with a set of proposed The final steps in the diagnostic process are analysis, validation solution-based activities. The framework may also identify and report writing. Following the field mission, a Back to possible lending or advisory instruments, partners, and an Office Report (BTOR) or Aide-mémoire will help capture the assessment of likely sequencing and prioritization, along with main findings and generate consensus around key constraints an expected timeline for implementation of the proposed and suggested means to address these. The additional activities. An example is shown on the following page. qualitative and quantitative research gathered onsite will This framework can then be used during the validation process. be used to deepen the analysis and develop initial findings. A series of small team and larger team meetings can be used Validation to validate and enhance the recommendations and review Either preceding or in conjunction with the development of risks. Developing the Theory of Change is a good way to focus the diagnostic report, the diagnostic team, along with project the discussions at this point (see the section on page 34). leaders and client representatives, should host a validation Analysis workshop with key stakeholders who participated in the diagnostic process. Unlike the initial stakeholder workshop Following data gathering, the diagnostic team synthesizes which involves stakeholders from across the ecosystem, its learnings to define and articulate its understanding of this workshop typically is conducted with key influencers the challenges that are constraining tourism development. and champions that have emerged throughout the process. Analysis of each of the drivers (destination, market and The validation workshop offers two key benefits. First, it business environment) can help articulate key constraints to brings key stakeholders together to confirm that the outputs competition, sustainability and inclusiveness. This analysis accurately reflect the supporting ecosystem and needs of should convey: a) where the opportunities lie; b) what the most the sector. Second, by presenting findings to stakeholders, critical constraints are; and c) who are the key stakeholders particularly those that are potential implementation partners, and potential partners. Significant tourism development the team continues to develop commitment and local expertise will be needed to conduct the analysis. ownership for future solution development. This workshop The analysis relies on an objective assessment of the facts may also include early discussions around potential solution that have been collected and analyzed individually. However, development. Solution development should be based upon subjectivity is introduced by analyzing these facts within the results from the diagnostic process and be informed by known environment and the impact that the reviewers deem expert opinion, best practices from comparable contexts this may have on the outcome. For this reason, the process and commitment of local partners. It is recommended that is best completed in a small group situation where local and the team conducts a cost-benefit analysis of the approaches international team members review the potential impact that considered, taking into consideration such factors as perceived the findings may have on the intended outcome. short- and long-term impact, financial viability, as well as ease The team needs to be well aware of the broad environmental and risks associated with implementation. context into which a future intervention would be positioned Reporting and the interactions between the assessment areas (e.g. increased competition through revised aviation policies could Once the key constraint areas and possible interventions are result in the lowering of airfares and dramatically reduce the discussed and validated, they can then be consolidated into costs of travel to the destination, attract more visitors or the design of an overall program. It is important to include the higher in-country expenditure, make markets more accessible, context of the destination economy, priorities and government and deliver higher profits to in-country suppliers). development plan at the start of the written report. 32 TOURISM DIAGNOSTIC TOOLKIT Example of Impediments Response Framework PROPOSED TIMELINES/SEQUENCING AND PARTNER SUPPORT OPPORTUNITY POSSIBLE INSTITUTION/ PRIORITY KEY CONSTRAINT AREA PROPOSED ACTIVITIES YEAR 1 YEAR 2 YEAR 3 PARTNERS INSTRUMENT FOR GOALS Q1/Q2 Q3/Q4 Q1/Q2 Q3/Q4 Q1/Q2 Q3/Q4 Establish mechanism for review 1. Lack of overall Public- of National Tourism Authority Act Sector leadership and and review of role and functions of Gov and PS Continue structure in the development key agencies in line with Tourism (via NTA, IFC Advisory High Mobilize Endorse Ongoing Proposal of tourism. Development Plan recommendations, Cabinet) Severity of constraint: Major including consultation program and including the private sector. PROPOSED TIMELINES/SEQUENCING AND PARTNER SUPPORT OPPORTUNITY POSSIBLE INSTITUTION/ PRIORITY KEY CONSTRAINT AREA PROPOSED ACTIVITIES YEAR 1 YEAR 2 YEAR 3 PARTNERS INSTRUMENT FOR GOALS Q1/Q2 Q3/Q4 Q1/Q2 Q3/Q4 Q1/Q2 Q3/Q4 i) Improve infrastructure at key IBRD Govt High Mobilize Continue Ongoing priority airports IPF 2. Inadequate transport ii) Improve international/domestic air Gov (Cabinet) IFC Advisory High Study Mobilize Ongoing infrastructure. services connectivity Severity of constraint: iii) Identify cruise port infrastructure Significant and service needs via an audit of port IBRD Gov and PS High Study Endorse Mobilize infrastructure and market needs ASA assessment PROPOSED TIMELINES/SEQUENCING AND PARTNER SUPPORT OPPORTUNITY POSSIBLE INSTITUTION/ PRIORITY KEY CONSTRAINT AREA PROPOSED ACTIVITIES YEAR 1 YEAR 2 YEAR 3 PARTNERS INSTRUMENT FOR GOALS Q1/Q2 Q3/Q4 Q1/Q2 Q3/Q4 Q1/Q2 Q3/Q4 i) Design and implement a system of national tourism quality standards ii) Develop and deliver enhanced industry workplace training to support 3. Poor management of the product quality improvements and link visitor experience in terms of to industry standards standards, consistency and iii) Undertake visitor exit surveys quality. and share results with industry to Severity of constraint: Major encourage improvements. Encourage industry to undertake their own customer satisfaction surveys, and act on feedback to improve their product offering. Government Government with support from WBG Government with possible support from a Development Partner Private Sector Private Sector with support from IFC/WBG Private Sector with possible support from a Development Partner TOURISM DIAGNOSTIC TOOLKIT 33 This contextual assessment should provide the general rationale summarize desired outcome, critical constraints to growth and for why the tourism sector is being prioritized. The main storyline suggested interventions. These can be summarized in a Theory for tourism should flow from this and be consistent throughout of Change diagram such as below. An example of a diagnostic the remaining sections. For example, if it is an emerging report ‘Table of Contents’ is provided in Annex VII. destination with high-quality, nature-based tourism assets, then the report should support this with evidence showing visitor Tourism Theory Of Change numbers, environmental resources, demand statistics on nature- Every project benefits from a Theory of Change. The FCI tourism based tourism, and connection to the government’s environment team has developed a Tourism Theory of Change to guide or tourism policy. If it is a post-conflict country in recovery, team leaders and specialists in fully exploring the dimensions of demonstrate the history of previous tourism success and any a problem before taking on a project. No Theory of Change is indications of ability to bounce back after crisis and address permanent. Change continues, assumptions evolve and solutions health, safety, access and marketing issues. It is also important to and programs improve over time. The checklists featured in the have a section linking proposed interventions to WBG priorities: annexes should be used to diagnose development challenges, Maximizing Finance for Development (MFD) and the role of and map and consult stakeholders. the private sector; inclusion and gender issues; and technology, environment and climate-related issues. The team should also Only once data has been systematically collected and interpreted reflect on the quality of supply, the comparison with benchmarks and the country situation is fully understood, should the team and the strength of the institutions. The final section should begin program planning and project design. Figure 8: Tourism Theory of Change 2018 DEVELOPMENT CHALLENGES RECOMMENDED FCI TOURISM INTERVENTIONS INTERMEDIATE OUTCOMES LONG-TERM OUTCOMES RESTRICTIVE REGULATORY INVESTMENT VISA OPEN BUSINESS MACRO REFORM PROMOTION FACILITATION ENVIRONMENT ENVIRONMENT COMPETITIVE HIGH- DESTINATIONS WEAK PRIVATE FINANCIAL CAPACITY SUPPLY PERFORMING SECTOR MECHANISMS BUILDING CHAINS FIRMS POOR TOURISM TOURISM QUALITY MARKETING CLEAR POLICY INSTITUTIONAL POLICY & GOVERNANCE STANDARDS & RESEARCH DIRECTION PLANNING VISION SUSTAINABLE UNDER-PERFORMING PRODUCT SITE SITE HIGH-QUALITY DESTINATIONS ASSETS DEVELOPMENT MANAGEMENT DEVELOPMENT ASSETS NARROW INCLUSIVE SKILLS STAKEHOLDER WIDE BENEFIT BENEFIT PROGRAMS DEVELOPMENT ENGAGEMENT DISTRIBUTION DISTRIBUTION INCLUSIVE DESTINATIONS 34 TOURISM DIAGNOSTIC TOOLKIT GUIDE TO CHECKLISTS Often, lack of desired demand or poor supply-demand matching impedes tourism development. A demand analysis A series of checklists are featured in the annexes of this can identify valuable market segments and potential gaps in publication and have been developed to assist project teams attracting them. in assessing the critical factors that can enable or impede a country’s sustainable development of its tourism sector. The The Business Environment: Perceptions of the business factors reflect the sector’s three key drivers. Accordingly, the enabling environment affect existing or potential business checklists are organized by: activity, levels of investment and the capacity of the destination to meet demand. These factors cover overall economic The Destination: Characteristics of the destination relating performance and governance, the regulatory framework for to the tourism offering (supply), management and support for tourism, as well as the quality of human resources and gender tourism in the destination by the host community, local industry, equity performance. and government. Destination factors such as government The annexes provide useful checklists and resources for the prioritization and leadership of the tourism sector, quality of diagnostic process. The checklists are presented to assist both the tourism offering and ease of access and infrastructure for desk research as well as in-country stakeholder discussion. visitors can present binding constraints or opportunities for Each set is divided up into several different thematic areas growth of the sector. showing the rationale or relevance of the indicator, likely The Market: Detailed patterns of demand along with market sources of information and typical questions which can be perceptions and activity affect existing or potential demand. asked in stakeholder interviews. Figure 9: Key Checklist Areas and Sub-Topics DESTINATION Tourism Prioritization and Leadership Destination Management Capacity Tourism Specific Controls and Regulations Tourism Economy Tourism Offering Supply of Tourism Products and Services Transport Infrastructure Tourism Support Infrastructure Social, Political and Environmental Stability MARKET BUSINESS ENVIRONMENT Demand Analysis Country Data Visitor Profiles Governance Destination Image and Appeal Economic Structure Marketing and Promotion Effectiveness Tourism Regulatory Framework Competitor Analysis Human Resources Gender TOURISM DIAGNOSTIC TOOLKIT 35 Desk Research Guidelines Annexes I and II contain indicative indicator and benchmarking checklists which can be used in desk research. A summary of the key indicators which can be identified through initial desk research is shown below. Destination Factors & Indicators TOURISM PRIORITIZATION AND LEADERSHIP Is there a tourism policy? What is its status and current implementation? Is there a tourism master plan? Status and implementation? Is there a tourism strategy? Status and implementation? Is there a National Tourism Organization (NTO) and/or tourism association website? DESTINATION MANAGEMENT CAPACITY Is there a coordination mechanism for managing tourism development across different government agencies? Is there a formal and effective mechanism for public-private co-ordination in tourism? Is there a destination marketing body and is it adequately resourced? Do key destinations have effective destination management organizations? TOURISM SPECIFIC CONTROLS AND REGULATIONS Are there specific taxes and charges on tourists? Are there visa waiver programs? Are there visa restrictions or barrier controls that make it difficult to travel to the destination? How much do visas cost? TOURISM ECONOMY (FIVE-YEAR TRENDS) Tourism exports contribution to GDP (US$) Tourism exports contribution to GDP (% of exports) Tourism GDP growth (% change year-on-year) Tourism sector jobs (number) Tourism sector jobs (% employment) Direct employment in tourism sector Indirect employment in tourism sector TOURISM OFFERING What are the key natural and cultural attractions? Which tourism segments are attracted to the destination? (e.g. adventure, family, cruise, culinary, religious, health, etc.) SUPPLY OF TOURISM PRODUCTS AND SERVICES Accommodation Supply Categories and classification of accommodation Number of resorts/hotels Total number of guest rooms Total number of guest beds Rooms by type of accommodation • Hotels and resorts • Bed and Breakfasts (B&Bs) 36 TOURISM DIAGNOSTIC TOOLKIT • Apartments and motels • Homestays Tour Operators, Travel Agencies, Activities What is the size and structure of key associated services? (e.g. number and type of businesses) • Tour operations • Food and beverage • Attractions and activities TRANSPORT INFRASTRUCTURE Number of international entry points with customs clearance Number of international airports serving the destination Accessibility (quantity, frequency, and capacity) of international air access from key source markets Number of international airlines servicing country Number and capacity of cruise ships facilities Are there protective government policies that affect price and supply of transport services? Is there adequate road capacity for passenger transport and routes? TOURISM SUPPORT INFRASTRUCTURE Adequacy of utility infrastructure (power, water, telecommunications) Availability of ATMs/exchange facilities in key tourism locations Solid-waste management capacity Wastewater treatment (%) Health and hygiene (clinics, hospitals, etc.) SOCIAL, POLITICAL AND ENVIRONMENTAL STABILITY How frequently does crime against tourists occur? Has the destination been a target of terrorism attacks in the past two years? What are the threats of natural disasters or adverse climate conditions? What is the country’s risk management and mitigation strategy? Market Factors & Indicators DEMAND ANALYSIS (FIVE-YEAR TRENDS) Annual international visitor arrivals (total) Annual domestic visitors/trips Visitor arrivals growth (% change year-on-year) Number of cruise ship port calls (annual) Number of cruise passenger disembarkations (annual) Annual overnight visitors Annual day visitors Annual leisure tourist arrivals (total) Leisure arrivals growth (% change year-on-year) TOURISM DIAGNOSTIC TOOLKIT 37 Key source market (overall visitors) # 1 Key source market (overall visitors) # 2 Key source market (leisure visitors) # 1 Key source market (leisure visitors) # 2 Key source market (business visitors) # 1 Key source market (business visitors) # 2 Visitor arrivals change relative to global average High season (months) Low season (months) Future demand projections VISITOR PROFILES Average leisure visitor length of stay (nights) Average visitor expenditure (US$) Total expenditure per night (US$) Domestic visitor average expenditure (US$) Average domestic visitor length of stay (nights) Purpose of visit (%) - leisure Purpose of visit (%) - business Purpose of visit (%) - other Return visitors (%) DESTINATION IMAGE AND APPEAL Country Brand Ranking Assessment of the destination’s unique selling proposition MARKETING AND PROMOTION EFFECTIVENESS Is there a tourism marketing and promotion agency? What is the annual marketing budget? Describe efforts related to market research Effectiveness and alignment of distribution channels COMPETITOR ANALYSIS Analysis of competitor destinations globally and regionally National Tourism Office (NTO) marketing budget in main competitor destination ($/visitor) Business Environment Factors & Indicators COUNTRY DATA Region Lending category (IDA, etc.) Income group 38 TOURISM DIAGNOSTIC TOOLKIT Minister responsible for tourism Deputy minister responsible for tourism Population (size) GOVERNANCE Government Effectiveness score Rule of Law score Political Stability and Absence of Terrorism/Violence score Control of Corruption score Transparency International ranking ECONOMIC STRUCTURE GDP (current US$) GDP per capita (current US$) GPD growth (annual %) TOURISM REGULATORY FRAMEWORK Nature and cost of licensing Are tourism businesses subject to foreign investment restrictions? Existence of additional costs and charges for tourism businesses HUMAN RESOURCES Number of tourism training institutions Number of accreditation agencies Capacity of training facilities by qualification type What % of tourism employees have formal/in-house tourism training? GENDER Women’s labor force participation rate (% of female population ages 15+) Gender indicators (literacy, etc.) Global Gender Gap Index ranking (WEF) UNDP Human Development Index (female) UNDP Human Development Index (male) Life expectancy at birth (female) Life expectancy at birth (male) Guidance for In-Country Research Annex III contains stakeholder lists and interview guides for in-country research. Annex IV contains sample tourism industry surveys, both for in-country industry representatives, as well as for travel trade respondents. It should be noted that some of these are likely to be in key origin markets, rather than in the country itself. It is important to ensure that the views of a wide range of stakeholders who influence tourism activity are canvassed. The Annexes provide a list of tools and instruments to capture this information in a thorough and systematic way. While these checklists and survey instruments comprise a comprehensive and exhaustive list of factors and indicators, it is not expected that teams will obtain answers to every question. Rather, each team should at least try to secure responses for the core indicators shown in the tables. The tables also include additional indicators enabling more in-depth and extensive information to be obtained if needed. TOURISM DIAGNOSTIC TOOLKIT 39 Section Four: Next Steps After completing the diagnostic process, including benchmarking, stakeholder interviews, and assessment, the team should be ready to deliver advice on the critical factors constraining tourism development. This can then be used to inform project design, identifying potential points of entry for WBG interventions based on a prioritization of the binding constraints, as well as the most prospective opportunities which are actionable and achievable in a given time frame. Upon completion of the diagnostic assessment, the team should develop a high-level draft work plan for presentation, consultation and verification with clients and other stakeholders. Management will decide on next steps based on the outcomes of the diagnostic, client interest, and available funds. The diagnostic process outlined in this report, along with the annexes, are the foundation for a sound diagnosis of the tourism sector. The Global Tourism team welcomes additional questions and feedback at tourism@worldbankgroup.org 40 TOURISM DIAGNOSTIC TOOLKIT TOURISM DIAGNOSTIC TOOLKIT 41 Annexes I. DIAGNOSTIC CHECKLISTS 1. DESTINATION FACTORS AND INDICATORS *Indicators in bold are core indicators. 1.1 TOURISM PRIORITIZATION AND LEADERSHIP Rationale: Government recognition and commitment to tourism as a key export industry, is a critical factor in the success of a destination. This enables tourism to be positioned within the broader economic, social and environmental policy framework of a country, affording it the priority required to achieve sustainable growth. This recognition needs to go beyond tacit support evident in many emerging destinations. It must be demonstrated through strong sector leadership in policy and planning for the sector and through the empowerment of agencies responsible for managing it. INDICATOR SUGGESTED SOURCES Is there a tourism policy? Describe the status and current National Tourism Organization implementation. Is there a tourism plan? Describe the status and current National Tourism Organization implementation. Is there a tourism strategy? Describe the status and National Tourism Organization current implementation. Does tourism have cabinet level status National Tourism Organization (i.e. Is represented by a Minister)? Which public institution (ministry, statutory body, etc.) National Tourism Organization if any, is responsible for tourism policy? If so, describe role. Is the tourism policy effective in supporting the industry? National Tourism Organization Describe current tourism legal framework. National Tourism Organization Is there a National Tourism Organization and/or tourism Web search association website? If so, describe its current status. Are there destination guide books? Others (online) If so, describe coverage. Describe access to information for international visitors and Others (TripAdvisor, Expedia) availability of products for online reservation? 42 TOURISM DIAGNOSTIC TOOLKIT 1.2 DESTINATION MANAGEMENT CAPACITY Rationale: Beyond high level government commitment, industry growth requires effective management (planning, coordination and implementation) of the destination’s development and promotion by local institutions – public and private. INDICATOR SUGGESTED SOURCES Does the tourism development plan take a ‘whole National Tourism Organization of government’ approach – is there a mechanism for managing tourism across different government agencies? How much funding is allocated to implementation of National Tourism Organization tourism planning? Is tourism planning effectively implemented? Describe. National Tourism Organization Is there a formal and effective mechanism for public- National Tourism Organization private coordination in tourism? Describe. Is the destination marketing body suitable resourced? National Tourism Organization Describe. Do key destinations have destination management Tourism website organizations? Describe. 1.3 TOURISM SPECIFIC CONTROLS AND REGULATIONS Rationale: Tourism development can be enabled or impeded by controls and regulations specific to the tourism industry or specifically affecting the tourism industry. INDICATOR SUGGESTED SOURCES Are there visa waiver programs? National Tourism website Are there visa restrictions that make it difficult to travel National Tourism website to the destination? How much do visas cost? National Tourism website Tourist visa (US$) National Tourism website Business visa (US$) National Tourism website How many days does it take to process visas? National Tourism website Tourist visa National Tourism website Business visa National Tourism website/visa office Are there specific taxes and charges on tourists? National Tourism Organization Are there restrictions on foreign investment in the Laws and regulations/Government tourism sector? and business surveys TOURISM DIAGNOSTIC TOOLKIT 43 1.4 TOURISM ECONOMY Rationale: Understanding where tourism fits in the overall economy as well as its total contribution to economic growth and jobs is essential for measuring its capacity to contribute to economic policy, in addition to identifying high-level development objectives and meaningful interventions to contribute to sector growth and sustainable management. INDICATOR SUGGESTED SOURCES Tourism exports contribution to GDP (US$) WTTC Country Reports Tourism exports contribution to GDP (% of exports) WTTC Country Reports Tourism GDP growth (% change year-on-year) WTTC Country Reports Tourism sector jobs (number) WTTC Country Reports Tourism sector jobs (% employment) WTTC Country Reports Direct employment in tourism sector WTTC Country Reports Indirect employment in tourism sector WTTC Country Reports Is there a Tourism Satellite Account (TSA)? Tourism Satellite Account/ National Tourism databases Full-time vs. part-time employment in tourism sector Tourism Satellite Account/ National Tourism databases Total foreign direct investment in tourism (US$) Tourism Satellite Account/ National Tourism databases Tourism’s share of foreign direct investment (%) Tourism Satellite Account/ National Tourism databases Total domestic direct investment in tourism (US$) Tourism Satellite Account/ National Tourism databases Tourism’s share of domestic direct investment (%) Tourism Satellite Account/ National Tourism databases Sub-sector investment data, if available (e.g. is investment in Tourism Satellite Account/ hotels separate from investments in restaurants/travel agents?) National Tourism databases Number of investment approvals (annual) Tourism Satellite Account/ National Tourism databases Value of investment realized (US$) Tourism Satellite Account/ National Tourism databases Fiscal revenue generation from tourism Tourism Satellite Account/ National Tourism databases Tourism tax revenues e.g. sales, value added tax (VAT), Tourism Satellite Account/ room/bed, airport/exit, aircraft landing fees, corporate National Tourism databases income, payroll, social security, import duties, and property 44 TOURISM DIAGNOSTIC TOOLKIT 1.5 TOURISM OFFERING Rationale: The foundation of any destination’s tourism industry is its offering to visitors. This relates to tourism assets (natural, cultural or created) and activities, plus products and services that enable the assets and activities to be leveraged. The tourism offering (supply) is essentially the bundling of these assets, activities, products and services to create a destination experience. This experience must be compelling and accessible. It must be of suitable and consistent quality. It must meet market demand. INDICATOR SUGGESTED SOURCES What is the size and structure of key associated Tourism Satellite Accounts/ services? (e.g. number and type of businesses) National Tourism Organization Food and beverage Tourism Satellite Accounts/ National Tourism Organization Transportation Tourism Satellite Accounts/ National Tourism Organization Attractions and activities Tourism Satellite Accounts/ National Tourism Organization Which tourism segments are present in the destination? National Tourism Organization (e.g. ecotourism, cruise, culinary, etc.) What are the key attractions? National Tourism Organization Country's # 1 niche/special interest activity National Tourism Organization Country's # 2 niche/special interest activity National Tourism Organization Country's # 3 niche/special interest activity National Tourism Organization Other niche/special interest activities National Tourism Organization Promising new tourist segments National Tourism Organization How many World Heritage Sites or other protected areas of WEF T&T Global Competitiveness Report natural/cultural significance exist? What are the quantity, types, and quality of the natural National Tourism Organization/TripAdvisor assets? What are the quantity, types, and quality of the cultural National Tourism Organization/TripAdvisor assets? What are the quantity, types, and quality of the created National Tourism Organization/TripAdvisor assets? What is the regional distribution of visitation? National Tourism Organization Price competitiveness National Tourism databases Total cost to average visitor National Tourism databases Average air ticket cost from main source markets Online travel agency Average hotel room rate (by segment) Online travel agency Average fuel price World Bank database Describe the current status of the MICE market National Tourism website Number and capacity of convention centers National Tourism website TOURISM DIAGNOSTIC TOOLKIT 45 1.6 SUPPLY OF TOURISM PRODUCTS AND SERVICES Rationale: A destination’s ability to provide products and services that contribute to the tourism experience and meet demand is an indication of current success as well as its potential for growth. Essential products and services include accommodation; food and beverage outlets; local tour operators and tour guides; visitor information facilities and tourist shops/markets. INDICATOR SUGGESTED SOURCES Accommodation Supply Categories and classification of accommodation Tourism Satellite Account/ National Tourism databases Total number of guest rooms National Tourism databases Industry associations Total number of guest beds National Tourism databases Industry associations Rooms by type of accommodation National Tourism databases Industry associations • Hotels and resorts National Tourism databases • Bed and Breakfasts (B&Bs) Industry associations • Apartments and motels • Homestays Number of resorts/hotels National Tourism databases Industry associations Total number of rooms 5 years ago National Tourism databases Industry associations Total number expected in next 5 years Industry associations Presence of international brand hotels Tourism Satellite Account/ National Tourism databases Presence of domestic/regional brand hotels Tourism Satellite Account/ National Tourism databases Average occupancy rate for international hotels National Tourism databases Industry associations Average occupancy rate for domestic hotels National Tourism databases Industry associations Rooms breakdown by star rating National Tourism databases Industry associations Accommodation Supply Categories and classification of accommodation Tourism Satellite Account/ National Tourism databases Total number of guest rooms National Tourism databases Industry associations Total number of guest beds National Tourism databases Industry associations Rooms by type of accommodation National Tourism databases Industry associations • Hotels and resorts National Tourism databases • Bed and Breakfasts (B&Bs) Industry associations • Apartments and motels • Homestays 46 TOURISM DIAGNOSTIC TOOLKIT Number of resorts/hotels National Tourism databases Industry associations Total number of rooms 5 years ago National Tourism databases Industry associations Total number expected in next 5 years Industry associations Presence of international brand hotels Tourism Satellite Account/ National Tourism databases Presence of domestic/regional brand hotels Tourism Satellite Account/ National Tourism databases Average occupancy rate for international hotels National Tourism databases Industry associations Average occupancy rate for domestic hotels National Tourism databases Industry associations Rooms breakdown by star rating National Tourism databases Industry associations Average occupancy rate by star rating National Tourism databases Industry associations Average daily rate (ADR) by star rating National Tourism databases Industry associations RevPAR by star rating National Tourism databases Industry associations Issues of seasonality by star rating Industry associations Investment yield by star rating Industry associations Key established investors in accommodation National Tourism Organization Market share of the largest resort/hotel (% over total sales) Industry associations Amount of national, state or provincial-owned shares in National Tourism Organization resorts/hotels (%) Tour Operator Supply Key inbound tour operators/destination management National Tourism Organization companies Number of tour/special interest suppliers National Tourism Organization Market share of the largest tour operator (% over total sales) National Tourism Organization Number of tour guides by type of registration National Tourism databases (international/regional/local) Industry associations TRAVEL AGENCY SUPPLY Number of retail travel agencies National Tourism Organization Market share of the top three travel agencies (% over National Tourism Organization total sales) Amount of national, state or provincial-owned shares in National Tourism Organization travel agencies (%) OTHER PRODUCTS AND SERVICES Number food and beverage outlets National Tourism Organization Number of visitor information facilities National Tourism Organization Adequacy of tourism shops and markets National Tourism Organization TOURISM DIAGNOSTIC TOOLKIT 47 1.7 TRANSPORT & INFRASTRUCTURE Rationale: Growth of a destination’s tourism sector requires inbound and local transport infrastructure and associated services to enable visitor access to the destination’s tourism offerings. This is also critical to enabling delivery of tourism business supplies. Sector growth will be impeded if, for example, airline services frequency is low or unreliable or does not enable connections for travelers between key tourism locations. Similarly, poor maritime port, railway or road infrastructure will impede growth where marine or land travel is the primary means of visitor access to and within a destination. INDICATOR SUGGESTED SOURCES Visitors' main modes of transport National Tourism website Number of international entry points with customs National Tourism website Number of international airports serving the destination National Tourism website/OTAs Number of regional airports that serve the destination National Tourism website/OTAs Accessibility (quantity, frequency, and capacity) of National Tourism databases/OTAs international air access from # 1 source market Accessibility (quantity, frequency, and capacity) of National Tourism databases/OTAs international air access from # 2 source market Number of international airlines servicing country National Tourism databases/OTAs (weekly) Number of domestic airlines servicing country (weekly) National Tourism databases/OTAs Are ride-hailing services such as Uber able to operate in the Laws and regulations country? Are services such as Uber subject to the same rules and Laws and regulations regulations as traditional transport services? Number of ports with capacity for 100+ person vessels National Tourism databases Main cruise itineraries Online travel websites Quality of roads (score 1-7, 7 is best) WEF T&T Global Competitiveness Report Road density (% total territorial area) WEF T&T Global Competitiveness Report Main routes (km road) National Tourism databases Travel times between tourism areas and transport nodes National Tourism databases/ Online travel agency Describe aviation policy Laws and regulations Does the aviation policy conflict in any way with the Laws and regulations tourism policy? (e.g. limit airport slots, give preference to the national airline, high airport fees, etc.) Travel time to destination from key source markets Airline/Travel websites Availability of other international access options to the Travel websites/OTAs destination Are there protective government policies that affect price Laws and regulations/ and supply of transport services? Government and business surveys In the airline sector In the road transport sector In the maritime transport sector In the railway transport sector Are the air transport services to the destination tied to the Laws and regulations/ tourist package or available separately? Government and business surveys 48 TOURISM DIAGNOSTIC TOOLKIT Is there adequate flights, capacity, routes, and pricing to Laws and regulations/ meet the needs of the sector? Government and business surveys Is there adequate road capacity for passenger transport and Laws and regulations/ routes, and pricing to meet the needs of the sector? Government and business surveys Is there adequate vessel capacity for passenger transport, Laws and regulations/ and routes, and pricing to meet the needs of the sector? Government and business surveys Is there adequate capacity for passenger rail transport, Laws and regulations/ routes, and pricing to meet the needs of the sector? Government and business surveys Are costs of (multimodal) transport services competitive Laws and regulations/ within the region and not an impediment to the tourism Government and business surveys services? Statistics on air safety? National statistics Statistics on road safety? National statistics 1.8 TOURISM SUPPORT INFRASTRUCTURE Rationale: Beyond existing travel and tourism products and essential transport infrastructure, development and delivery of the tourism offering requires supporting infrastructure and services. Without appropriate supporting infrastructure, including ICT, financial infrastructure, water, energy, sanitation and medical and security services, opportunities for sustainable investment in tourism products are limited, as is destination appeal. INDICATOR SUGGESTED SOURCES Civil infrastructure score (score 1-7, 7 is best) WEF Global Competitiveness Report Transport infrastructure score WEF Global Competitiveness Report Electricity and telephone infrastructure score WEF Global Competitiveness Report Waste and utilities coverage (%) International Benchmarking Network (IBNet) Comparative cost of construction ($) National statistics ICT use score WEF Global Competitiveness Report Internet use (% population) WEF Global Competitiveness Report Solid waste capacity International Benchmarking Network (IBNet) Wastewater treatment (%) International Benchmarking Network (IBNet) Availability of ATMs/exchange facilities in key tourism Visa Global ATM Locator locations Tourism infrastructure score (score 1-7, 7 is best) WEF Global Competitiveness Report Electricity supply score WEF T&T Competitiveness Report Health and hygiene score WEF T&T Competitiveness Report Safety and security score WEF T&T Competitiveness Report Is HIV/AIDS a concern for tourists? World Health Organization Country Data Is food-born illness a concern for tourists? Visitor surveys/Other (TripAdvisor) Are tropical diseases a concern for tourists? World Health Organization Country Data Is water safety a concern for tourists? Visitor surveys/Other (TripAdvisor) TOURISM DIAGNOSTIC TOOLKIT 49 1.9 SOCIAL, POLITICAL AND ENVIRONMENTAL STABILITY Rationale: Tourism development can be impeded by conditions unique to the locale. These conditions may be of a societal nature (e.g. civil unrest, high crime, exploitation of people, corruption, lack of awareness about or support of tourism), political (e.g. political instability, corruption) or environmental (e.g. degradation of natural resources, extreme climatic conditions or threat of natural disaster). These conditions affect a destination’s ability to attract tourists and investment as well as its ability to develop and manage tourism supply. INDICATOR SUGGESTED SOURCES Social Stability How frequently does crime against tourists occur? National statistics Has the destination been a target of terrorism attacks in National statistics the past five years? Political Stability Has the destination been affected by political unrest in Economist Intelligence Unit the past five years? Environmental Stability What activities, if any, are impacting tourism World Bank Country Profiles environmental resources? What are the threats, if any, of natural disasters or World Bank Climate Change Knowledge adverse climate conditions? portal Are environmental considerations affecting the seasonality World Bank Climate Change Knowledge of the destination? If so, describe. portal Are conservation and environmental policies effective? World Bank Climate Change Knowledge portal Annual deforestation (% change) World Bank Little Green Data Book CO2 emissions per capita (metric tons) World Bank Little Green Data Book Access to improved water source (% total population) World Bank Little Green Data Book Access to improved sanitation (% total population) World Bank Little Green Data Book Are there sustainability indicators associated with the Laws and regulations/ development of tourism in the destination? Are these Global Sustainable Tourism Council monitored regularly? Is it mandatory for development projects to follow Laws and regulations environmentally friendly practices and standards? Are these adequately implemented? Are there any regulatory barriers to adopting Laws and regulations environmentally friendly practices? Does the government incentivize the use of environmentally Laws and regulations friendly practices? Do hotels, other tourism accommodations and service Laws and regulations/ providers generally use environmentally friendly practices? Global Sustainable Tourism Council Disaster Risk Management Does the country keep data on disasters? National statistics Has the tourism sector been impacted by major natural News outlets disasters over the last five years? What, if any, is the country's risk management and Laws and regulations mitigation strategy? 50 TOURISM DIAGNOSTIC TOOLKIT 2. MARKET FACTORS AND INDICATORS 2.1 DEMAND ANALYSIS Rationale: The increasing or falling demand for a destination reflects whether its overall appeal is growing or declining. Market performances, where available, are tangible measures of a destination’s position in this regard, as well as identifying how resilient the destination is to external impacts. INDICATOR SUGGESTED SOURCES Annual international visitor arrivals (total) UNWTO Annual domestic visitors/trips UNWTO Visitor arrivals growth (% change year-on-year) UNWTO Annual cruise visitors National Tourism databases Number of cruise ships/port calls/disembarkations to National Tourism databases destination (annual) Annual overnight visitors National Tourism databases Annual day visitors National Tourism databases Annual leisure tourist arrivals (total) UNWTO Leisure arrivals growth (% change year-on-year) UNWTO Key source market (overall visitors) # 1 UNWTO Key source market (overall visitors) # 2 UNWTO Key source market (leisure visitors) # 1 UNWTO Key source market (leisure visitors) # 2 UNWTO Key source market (business visitors) # 1 UNWTO Key source market (business visitors) # 2 UNWTO Visitor arrivals change relative to global average UNWTO High season (months) National Tourism databases Low season (months) National Tourism databases Future demand projections National Tourism databases TOURISM DIAGNOSTIC TOOLKIT 51 2.2 VISITOR PROFILES Rationale: A sound knowledge of who is visiting the destination and why, as well as the nature and patterns of visitor flows and expenditures, is essential to understand what is driving demand now, how this impacts the economy and how the patterns of future demand might change. INDICATOR SUGGESTED SOURCES Average leisure visitor length of stay (nights) UNWTO Average visitor expenditure (US$) UNWTO Total expenditure per night (US$) UNWTO Domestic visitor average expenditure (US$) UNWTO Average domestic visitor length of stay (nights) UNWTO Purpose of visit (%) - leisure National Tourism databases Purpose of visit (%) - business National Tourism databases Purpose of visit (%) - other National Tourism databases Return visitors (%) National Tourism databases Describe the current efforts regarding the implementation National Tourism databases and collection of visitor surveys. To what degree does overall product and service supply Visitor surveys/TripAdvisor meet visitor expectations? Do visitors request services, products and experiences that Visitor surveys/TripAdvisor are not available? What is the nature of visitor feedback (complaints, surprise Visitor surveys/TripAdvisor and delight, etc.)? 2.3 DESTINATION IMAGE AND APPEAL Rationale: Overall appeal of the destination offering indicates its tourism success and development potential. Appeal can counter-balance barriers – if appeal is strong enough, some barriers will be less influential. Barriers may include: high cost of access (to and within destination), ease/difficulty of access, safety and security concerns, health concerns, lack of availability of things to do, lack of product (e.g. accommodation, transport), social concerns (e.g. sex tourism), and environmental concerns (e.g. degradation through environmental damage). INDICATOR SUGGESTED SOURCES Country Brand Ranking Bloom Consulting Country Brand Ranking Destination slogan Tourism website Describe destination’s unique selling proposition Tourism website 52 TOURISM DIAGNOSTIC TOOLKIT 2.4 MARKETING AND PROMOTION EFFECTIVENESS Rationale: The effectiveness of a destination’s marketing directly impacts market demand. If a destination appropriately positions and brands itself according to both its tourism offering and what its target markets are seeking, the likelihood of converting interest to purchases and securing a growing share of that target market is supported. Also influencing propensity for conversion is the effective use of distribution channels to reach the target markets. INDICATOR SUGGESTED SOURCES Is there a tourism marketing and promotion agency? Tourism website If so, describe its activities. Is there a tourism marketing and promotion website for Tourism website consumers? If so, describe. What is the annual marketing budget, if any? Tourism website Describe efforts related to market research. Tourism website How rigorous and reliable is the market research? Tourism website What are the key distribution channels and how well National Tourism Organization/ matched are they to current and future demand? Visitor surveys/TripAdvisor 2.5 COMPETITOR ANALYSIS Rationale: Understanding which destinations form the most direct competition will help benchmark and position the destination amongst its competition, making it easier to identify strengths and weaknesses. This should be based on both supply considerations (what the destination has to offer) as well as demand (observing consumer behavior to identify the most direct competition). INDICATOR SUGGESTED SOURCES Competitive destinations globally (countries) TripAdvisor Competitive destination regionally (countries) TripAdvisor Arrivals to main regional competitor (number) UNWTO Government budget for tourism in competitor destinations National Tourism website (Total US$) NTO marketing budget in main competitor destination National Tourism website (US$/visitor) TOURISM DIAGNOSTIC TOOLKIT 53 3. BUSINESS ENVIRONMENT FACTORS AND INDICATORS 3.1 COUNTRY DATA Rationale: Country data is important as a first step to understanding the economic conditions in the country, as well as guiding the type of assistance and instruments the WBG can use delivering our assistance. The environment for investment in tourism is dependent on the economic and political environment of the country and its overall appeal as an area for Private Direct Investment (PDI). This includes such aspects as political stability, economic stability, economic performance and investment conditions. INDICATOR SUGGESTED SOURCES Region World Bank - World Development Indicators Lending category World Bank - World Development Indicators Income group World Bank - World Development Indicators Sub-national structure Economist Intelligence Unit Country description Economist Intelligence Unit Ruling political party Economist Intelligence Unit Date of last national election Economist Intelligence Unit Date of next election Economist Intelligence Unit Head of state Economist Intelligence Unit Head of government Economist Intelligence Unit Deputy head of government Economist Intelligence Unit Minister responsible for tourism Economist Intelligence Unit Deputy minister responsible for tourism Economist Intelligence Unit Population (size) UN Data Country Profiles Population growth rate (average annual %) UN Data Country Profiles 3.2 GOVERNANCE Rationale: Understanding measures of the strength of governance and rule of law is helpful in assessing the extent to which the government is likely to be effective in addressing issues and taking action to remove barriers and foster growth. Further, investors require a transparent environment in which to invest so that they can reliably estimate costs and feel confident there is no risk of unfair or preferential treatment of competitors. INDICATOR SUGGESTED SOURCES Voice and accountability score (out of 100) World Bank Governance Indicators Government Effectiveness score World Bank Governance Indicators Regulatory Quality score World Bank Governance Indicators Rule of Law score World Bank Governance Indicators Political Stability and Absence of Terrorism/Violence World Bank Governance Indicators score Control of Corruption score World Bank Governance Indicators Political Rights score (1 = Most Free, 7 = Least Free) World Bank Governance Indicators Civil Liberties score (1 = Most Free, 7 = Least Free) Freedom House - Freedom in the World Indicators Overall Freedom Status Freedom House - Freedom in the World Indicators Statistical Capacity Indicator (out of 100) Statistical Capacity Indicator Corruption Perceptions Index score (out of 100) Transparency International 54 TOURISM DIAGNOSTIC TOOLKIT 3.3 ECONOMIC STRUCTURE Rationale: Understanding the overall economic conditions within the country provides a sound basis for assessing tourism’s relative economic importance, as well as forming a basis for measuring its capacity to contribute to growth and its linkages to other sectors of the economy. The ease of doing business, the level of investment activity in tourism and its rate of growth indicates the potential for further investment in the sector. Specific location or sub-sector studies assist in identifying where investors are active. INDICATOR SUGGESTED SOURCES Currency World Bank - World Development Indicators GDP (current US$) World Bank - World Development Indicators GDP per capita (current US$) World Bank - World Development Indicators GPD growth (annual %) World Bank - World Development Indicators Total investment (% of GDP) IMF Economic Outlook database Macro-economic stability Economist Intelligence Unit Fiscal deficit/surplus Economist Intelligence Unit Exchange rate World Bank - World Development Indicators Inflation, consumer prices (annual %) World Bank - World Development Indicators Interest rates (average) for last 3 years (lending) World Bank - World Development Indicators Labor force (total size) World Bank - World Development Indicators Unemployment (% of labor force) World Bank - World Development Indicators Main industry/earner (% of GDP) World Bank Country Profiles Secondary industry/earner (% of GDP) World Bank Country Profiles Other industry/earners (% of GDP) World Bank Country Profiles Population at national poverty level (%) World Bank - World Development Indicators Ranking position: Doing Business with identified IFC Doing Business competitive advantages and disadvantages Overall ease of doing business IFC Doing Business Starting a business IFC Doing Business Dealing with construction permits IFC Doing Business Registering property IFC Doing Business Getting credit IFC Doing Business Protecting minority investors IFC Doing Business Paying taxes IFC Doing Business Trading across borders IFC Doing Business Enforcing contracts IFC Doing Business Resolving insolvency IFC Doing Business Key economic challenges Economist Intelligence Unit Net official development assistance (ODA) received per World Bank Country Profiles capita (US$ million) National development plan World Bank Country Profiles Current account balance (US$ million) World Bank - World Development Indicators TOURISM DIAGNOSTIC TOOLKIT 55 3.4 TOURISM REGULATORY FRAMEWORK Rationale: Sector growth can be positively affected by a regulatory and legal environment which facilitates the PDI process. Evidence of complex, time-consuming, non-transparent or administratively cumbersome procedures can act as a deterrent, when compared with environments where the investment process is simplified. Prospective investors will consider any additional procedures that are required in the operation of a business prior to deciding to invest and whether a formal licensing system exists which is transparent and has reasonable requirements. INDICATOR SUGGESTED SOURCES Is there a system for tourism business registration? Laws and regulations/ If so, describe. National Tourism Organization What licenses are needed to run tourism businesses? Laws and regulations/ National Tourism Organization Is the cost of obtaining tourism business licenses a Surveys/Consultations with investors/ significant charge on business operating costs? professional advisors Transferability of licenses with the sale and transfer of a Laws and regulations/ business or property National Tourism Organization Are tourism businesses subject to foreign investment Laws and regulations/ restrictions? National Tourism Organization Are tourism businesses subject to specific development Laws and regulations/ approval processes? National Tourism Organization 56 TOURISM DIAGNOSTIC TOOLKIT 3.5 HUMAN RESOURCES Rationale: Development of the tourism sector is not possible without a sufficient pool of appropriately skilled labor. Travel and tourism requires a broad range of skills ranging from business management to hotel-specific hospitality management and operations, to specialized product development and marketing, tour guiding, customer service and more. In order for the destination to meet market demand, attract investment and sustain growth, any shortfalls in the availability of local skilled labor must be addressed by accessing labor from elsewhere in the short term and building suitable skills locally in the long term. INDICATOR SUGGESTED SOURCES List certifying agencies for tourism Certifying agencies Training institutions for tourism Certifying agencies Who is in charge of standards for tourism training? Certifying agencies How does tourism fit in within the national training system? Training institutions Number of tourism training institutions Training institutions Number and range of tourism training courses available Training institutions relative to demand for mix of tourism skills Number of accreditation agencies Training institutions Number of training facilities Training institutions Capacity of training facilities by qualification type Training institutions Tuition fees Training institutions Is there public and/or private support given to training Training institutions institutions or to in-house training of workers? If so, describe. Is the content of tourism training courses suitable and Training institutions focused on local skill gaps? Language skills of workers Training institutions What % of tourism employees have formal/in-house Training institutions tourism training? Number of certified employees Training institutions Is there a mismatch in graduates and positions relative to Training institutions managing jobs available? Any graduate/employee tracking data Training institutions What is the percentage of the local people in management Training institutions positions? Is there a program in place to train and license tour guides? Training institutions Who operates the program to train and license tour guides? Training institutions Are training programs available for other sectors linked to Training institutions the tourism sector (e.g. immigration and customs officers, taxi drivers, etc.)? TOURISM DIAGNOSTIC TOOLKIT 57 3.6 GENDER Rationale: While tourism can be a strong source of jobs for women and youth, it is important to identify any barriers to participation, engagement and advancement within the sector for tourism to be truly inclusive. Sources of discrimination can include access to job opportunities, wage levels, and employment conditions, as well as access to finance. INDICATOR SUGGESTED SOURCES Is the country a signatory of the Convention on the UN Convention on the Elimination of all Elimination of all Forms of Discrimination Against Women Forms of Discrimination Against Women (CEDAW)? (CEDAW) If so, when did they sign and have reports on progress UN Convention on the Elimination of all been issued? Forms of Discrimination Against Women (CEDAW) Women's labor force participation rate International Labor Organization Statistics (% of female population ages 15+) Gender indicators (literacy, etc.) World Bank Gender Data portal Global Gender Gap Index ranking WEF Global Gender Gap Report UNDP Human Development Index (female) UNDP Human Development Report UNDP Human Development Index (male) UNDP Human Development Report Life expectancy at birth (female) UNDP Gender Development Index Life expectancy at birth (male) UNDP Gender Development Index Expected years of schooling (female) UNDP Gender Development Index Expected years of schooling (male) UNDP Gender Development Index Mean years of schooling (female) UNDP Gender Development Index Mean years of schooling (male) UNDP Gender Development Index Estimated gross national income per capita (2011 PPP US$) UNDP Gender Development Index (female) Estimated gross national income per capita (2011 PPP) UNDP Gender Development Index (male) Female share of employment in senior and middle World Bank Gender Data portal management (%) Are there any gender-related issues and/or Training institutions discriminatory practices? Does the law prohibit discrimination by creditors on the WBG Women, Business and the Law 2016: basis of gender in access to credit? Getting to Equal Do unmarried men and unmarried women have equal WBG Women, Business and the Law 2016: ownership rights to property? Getting to Equal Do married men and married women have equal ownership WBG Women, Business and the Law 2016: rights to property? Getting to Equal United Nations Development Program (UNDP) Human UNDP Human Development Report Poverty Index 58 TOURISM DIAGNOSTIC TOOLKIT TOURISM DIAGNOSTIC TOOLKIT 59 II. BENCHMARKING CHECKLISTS Following desk research, benchmarks are useful ways to set a baseline and learn from other destinations. Rankings and indices are useful sources of information, although few exist purely for tourism. Suggested indicators are shown below. INDICATOR SUGGESTED SOURCES Overall Tourism Sector WEF Global T&T Competitiveness overall rank WEF T&T Global Competitiveness Report Business environment WEF T&T Global Competitiveness Report Safety and security WEF T&T Global Competitiveness Report Health and hygiene WEF T&T Global Competitiveness Report Human resources and labor market WEF T&T Global Competitiveness Report ICT readiness WEF T&T Global Competitiveness Report Prioritization of travel and tourism WEF T&T Global Competitiveness Report International openness WEF T&T Global Competitiveness Report Price competitiveness WEF T&T Global Competitiveness Report Environmental sustainability WEF T&T Global Competitiveness Report Air transport infrastructure WEF T&T Global Competitiveness Report Ground and port infrastructure WEF T&T Global Competitiveness Report Tourist service infrastructure WEF T&T Global Competitiveness Report Natural resources WEF T&T Global Competitiveness Report Cultural resources and business travel WEF T&T Global Competitiveness Report Adventure Tourism Adventure Tourism Development Index overall rank Adventure Tourism Development Index Safety Adventure Tourism Development Index Health Adventure Tourism Development Index Natural Resources Adventure Tourism Development Index Adventure Resources Adventure Tourism Development Index Entrepreneurship Adventure Tourism Development Index Humanitarian Adventure Tourism Development Index Cultural Resources Adventure Tourism Development Index Infrastructure Adventure Tourism Development Index Image Adventure Tourism Development Index Sustainable Development Adventure Tourism Development Index 60 TOURISM DIAGNOSTIC TOOLKIT III. STAKEHOLDER LISTS AND INTERVIEW GUIDES The following are examples only. Each team should decide and extract those questions that are most appropriate to their destination. PUBLIC SECTOR TYPE SUB-TYPE UNITS/DIVISIONS/ STAFF DEPARTMENTS Tourism promotion Research and statistics Ministers Tourism investment Directors Ministry of Tourism Strategic planning Technical Staff Tourism policy Heads of Division Certification and standards Policymakers Product development Other ministries (e.g. culture, Ministers Immigration and visas transport/civil aviation, environment, Directors Protected areas/parks education, foreign affairs, economy, Technical Staff Cultural heritage, artisans/handicrafts, natural Heads of Division monuments, museums resources, etc.) Policymakers Tourism investment Directors-Managers Investment promotion agency Research and statistics Technical Staff SMEs Heads of Division Directors-Managers NATIONAL Tourism funds Investment strategy Technical Staff LEVEL Heads of Division Directors-Managers National statistics institute Tourism division/unit Technical Staff Heads of Division Directors-Managers Marketing, research and Tourism promotion agencies Technical Staff statistics Heads of Division Directors-Managers Tourism institutes Research and statistics Technical Staff Heads of Division Other public-sector tourism Tourism promotion Directors-Managers organizations (e.g. tourism Research and statistics Technical Staff administration, tourism organization, Tourism investment Heads of Division tourism development authorities, etc.) Strategic planning Resource management bodies Directors-Managers (national parks, museums and Research and statistics Technical Staff monuments, etc.) Heads of Division Nationally managed attractions Regional government Tourism offices Other regional tourism institutions Directors-Managers REGIONAL (e.g. regional tourism board) Technical Staff LEVEL Resource management bodies Heads of Division (national parks, museums and Policymakers monuments, etc.) Sub-national statistical institutes Regionally managed attractions TOURISM DIAGNOSTIC TOOLKIT 61 Tourism one-stop-shops Municipalities Directors-Managers Resource management bodies LOCAL Technical Staff (national parks, museums and LEVEL Heads of Division monument, etc.) Policymakers Locally managed attractions Tourism offices PRIVATE SECTOR TYPE SUB-TYPE SPECIFIC UNIT/DIVISION/ STAFF Chambers of commerce Hotel associations and federations Directors INDUSTRY Tour operator associations Presidents ASSOCIATIONS Travel agent associations Restaurant associations Representatives SME associations Accommodation services (e.g. hotels, hostels, Airbnb, Managers HomeAway) Owners Business development Food and beverage (e.g. restaurants, bars) Procurement Marketing and promotion Tour guides Tours and Local Tour Companies Interpreters Airline, buses, railway, and cruises companies (e.g. managers, owners, business Transport operators development, procurement, marketing and promotion) DIRECT TOURISM Airport representatives SERVICE PROVIDERS Vehicle rental companies Managers Outfitters Attractions and activity providers Guides Marketing and promotion Directors Agents Travel agencies Marketing and promotion Business development Directors Agents Tour operators Marketing and promotion Business development Artisans and crafters Farmers and fishermen Producers EXTERNAL INDIRECT Musicians and entertainers (e.g. dancers, performers) Sellers SUPPLIERS/ Other goods and services individual suppliers Intermediaries PROVIDERS (e.g. furniture, security, laundry) Marketing and promotion Logistic providers Supplier's cooperatives (e.g. agri, farm) 62 TOURISM DIAGNOSTIC TOOLKIT Specialized tourism advisory/consulting firms Accounting firms Consultants BUSINESS Real estate/valuation firms Agents ADVISORS Engineering/construction contractors Experts Investment advisory firms INDIVIDUALS AND SOCIETY TYPE SUB-TYPE INDIVIDUALS International INVESTORS Domestic Trade unions Leaders WORKERS Individuals (national and foreign) Representatives Individuals (local and international) Individuals VISITORS Consumer networks, clubs and societies Directors Travel media and social media users Influencers Community councils Chiefs LOCAL Ethnic groups Leaders COMMUNITIES Tribal groups Representatives Citizens associations Tourism-focused NGOs Directors LOCAL Other NGOs (human development, rural development, Technical Staff NGOs environment, social and community) Volunteers OTHER INSTITUTIONS TYPE INSTITUTIONS UNITS/DIVISIONS STAFF Research Marketing and promotion Destination management Human resource development organizations Director DESTINATION Product development Destination marketing Departments Directors MANAGEMENT Crisis management response organizations Technical Staff ORGANIZATIONS Internal communications Conservation organizations Policymakers Information management Convention bureaus Destination planning Strategy and policy formulating INSTITUTIONS DEPARTMENTS STAFF Education and training bodies Governing councils (incl. vocational training) Finance and administrative Universities, colleges, Specific departments Director-General TRAINING and teaching bodies (F&B, services, hotel Director-Principal INSTITUTIONS Research institutions management, entrepreneurship) Teachers Accreditation & certification agencies Directorate of studies Director of Studies Technical experts and advisory Private sector liaison bodies (e.g. internships) INSTITUTIONS DEPARTMENTS STAFF Country Management Units WBG & IFC Tourism divisions (or similar) Regional development banks Project leaders and European Commission Regional departments technical staff working in DEVELOPMENT EuropeAid Technical departments tourism or related projects PARTNERS National development agencies Program management units (SME development, International NGOs market access, investment Embassies promotion, agribusiness and agriculture) TOURISM DIAGNOSTIC TOOLKIT 63 STAKEHOLDER INTERVIEW GUIDES 1. MINISTRY OF COMMERCE AND SME PROMOTION INDICATOR What is the role and function of the agency? What is the state of the business climate? Is tourism prioritized within the government? What type of businesses are most dynamic? What is the track record and focus on tourism? How has this changed? What do SMEs find most difficult? What types of data are collected, and may we access it? 2. INVESTMENT PROMOTION AGENCY/FINANCE OFFICIALS INDICATOR Is there an investment promotion agency? Amount of FDI in tourism by location and asset type (# and value) Amount of DDI in tourism by location and asset type (# and value) What are the current staffing, capacity level and budget of the investment promotion agency? What is the availability of investment promotion materials? How are investors’ rights protected and disputes solved? Are there protected industries, occupations, or sectors? If so, which ones? Is competition regulated? If so, how? How is intellectual property protected? How is insolvency/bankruptcy managed? What types of data are collected? How many major corporate failures in which international investors were involved occurred in past 5 years? How many major corporate failures in the tourism sector in which international investors were involved occurred in the past 5 years? What is your view of domestic investor interest in the tourism sector? What is your view of foreign investor interest in the tourism sector? What is the private investor and financial market participation in/appetite for tourism? What is the investment sentiment and any survey data available? What are the prevailing tourism business ownership models? What type of businesses are most active? What are the immigration policies for workforce? What are the minimum wage requirements? Are there social security regulations for workers? What are the hiring/firing regulations? Is there a presence of corporate social responsibility? Are there restrictions on FDI on products and services? 64 TOURISM DIAGNOSTIC TOOLKIT Are there incentives for foreign investment? What incentives does the government offer to reduce developmental and operational costs and encourage new tourism developments? Is there equal and level playing field for various accommodation types? (e.g. are Airbnb and other similar accommodation providers – shared economy – subject to the same regulatory environment (taxes, fire and safety standards, etc.)? What incentives are provided for product development? (e.g. any grants or programs at a community level to encourage community-based tourism?) What financial services are available to foreign investors? How accessible is credit and how is it accessed? What type of credit is available for local investors/SMEs? What insurance options exist and how are these accessed? How do developers fund their projects? What types of equity players invest in the destination? How do the private and public sectors work together for new developments (any PPPs)? Does the country have a one-stop shop for investors? Are there restrictions to acquiring land or property? If so, describe. How is land or property taxed? How easy/difficult is it for investors to access land? Are there unsecured property rights? If so, describe. Access to government and customary land? Are there issues with land use rights? 3. INVESTORS AND PROFESSIONAL ADVISORS (LEGAL/ACCOUNTING/PROPERTY) INDICATOR Investor perceptions of ease of establishing a business/investing in tourism What are the main barriers for investment in tourism? Investor perceptions of attractiveness of investment returns from tourism Ease of compliance with regulatory procedures Conditions surrounding protection of tourism investment assets Investor perceptions of restrictions relating to the competitive environment Ease of access to land for tourism developments Investor perceptions of assistance for potential tourism investments Availability of professional assistance for potential tourism investments Availability of timely and relevant data to support tourism investment decisions Ease of securing local financing for tourism investments Availability of financial services (asset, business, mortgage insurance, audit services) Investor perceptions of cost/availability of suitable labor to support tourism investments Investor perceptions of input costs for tourism investments (utilities, labor, materials) Costs of construction for tourism projects (US$/m2 for range of classes of construction) Incidence of investment failures in tourism in the last five years TOURISM DIAGNOSTIC TOOLKIT 65 4. INDUSTRY ASSOCIATIONS INDICATOR What are the proposed investments in accommodation? Private Sector Destination Management Capacity Are there any industry associations? Which private institutions (business associations and business councils) operate in the location? Does the association have an effective private sector tourism management plan in sync with government destination plans? What is the level of professionalism within industry association? What is the level of private sector support of NTO marketing initiatives? How do direct suppliers of and indirect suppliers to tourism products do business? Private Sector Destination Management Capacity Is there a formal mechanism for effective public-private tourism sector coordination/dialogue? Is it effective in raising and resolving tourism management issues? What level of cooperation between public and private sector exists? What government/industry public private dialogue is underway to progress tourism? Format? Objectives? Perceptions about its effectiveness? Opportunity to improve? Marketing, Promotion And Destination Appeal How does the destination perceive the effectiveness and adequacy of their brand? How are the marketing campaigns perceived? How does the tourist experience match the image/brand the destination sells? What is the role of the private sector in destination marketing? What barriers exist to travel to the destination and how do they affect the traveler’s decision-making process of choosing it (costs, safety and security, attractions, etc.)? Tourism Offering What activities are linked to accommodation and tourism assets? What is the size and structure of the distribution channels? What are distributors’ roles in packaging and selling the destination? What is the availability of suitable accommodation to meet demand (from perspective of in-market industry clients)? Gender How are women represented in private-sector leadership? Do women have professional associations? How are women and men represented in different parts of the tourism value chain? Do these patterns suggest gender-role stereotyping? In which tourism roles do women play an important role or predominate? In which accommodation roles are women underrepresented? In which tour operators and transport roles are women under-represented? What types of firms do women tend to run (large, medium, small or micro, formal/informal, rural/urban, years in operation)? What is the management structure? What are the sector-specific constraints to business regulation, licensing, and taxation? How do women business owners most commonly get/receive information? 66 TOURISM DIAGNOSTIC TOOLKIT Do women have equal access to finance? What are the maximum loan windows for women and men? What resources do women business owners need to improve their efficiency, productivity, and effectiveness? Are there skill and capacity differences between women and men? What are women’s unpaid work expectations? What is the technology gap between women and men? What resources do women employees need to improve their efficiency/productivity and effectiveness? What resources do women business owners need to improve their efficiency, productivity, and effectiveness? How and why are women’s needs different to those of men in the tourism sector? 5. TOUR OPERATORS AND TRAVEL AGENCIES INDICATOR Are domestic tour operators part of or have exclusivity contracts with international tour operator groups? Are domestic tour operators present in regional/international markets (origin markets)? Do international tour operators have exclusivity contracts with domestic hotels? Do international tour operators invest in marketing the destination country as a unique destination? Is there a strong collaboration between domestic and international tour operators, which has positive effects on: • A good understanding of market requirements? • The ability to secure competitive discounts from hotels and airlines? • Optimizing product pricing and participating effectively in sales promotion campaigns? Can travel agencies in the destination countries sell tourist packages? Are ancillary services (entertainment activities, technicians, handicraft, etc.) available? 6. PRIVATE SECTOR SME ASSOCIATION INDICATOR Role of association Size and number of members What sector is most represented? Are there any tourism firms? Do any of your members' businesses supply tourism firms? Are there opportunities for member businesses to supply tourism firms (e.g. food, furniture, services, crafts)? What types of problems do your members face? What needs to be done to make business easier? 7. PRIVATE SECTOR BUSINESSES INDICATOR How is business currently – growth/decline over last 5 years? What has changed in the last five years? Where do most visitors come from? Why do visitors come? Are consumers/tourists happy? Do consumers/tourists request services/products/experiences that are not available? What are consumers’/tourists’ complaints in general (e.g. long immigration queues, poor quality tour guides, etc.)? TOURISM DIAGNOSTIC TOOLKIT 67 What are the biggest challenges of running a business in this country? What are the main barriers to specific operations (e.g. business regulations, marketing, etc.)? What are main barriers to overall growth of the sector (e.g. access to finance, destination image, poor planning, etc.)? Do you have difficulty finding trained staff? Are you planning to expand in the future? What are the main investment opportunities in this sector? What overall changes would you like to see in the sector by in the next two years? What projects/plans are in the pipeline that would impact this initiative? What are their timelines? 8. COMMUNITIES AND CIVIL SECTOR INDICATOR How are local communities involved in the tourism offering and promotion? Do they have a sense of pride and ownership? Do they have knowledge, skills, experience to adequately protect the destination’s tourism assets? How are they consulted and involved, if at all, on new developments? How is culture weaved into the tourism product offering of the destination beyond cultural sites to visit? (i.e. local food, dances, local art, local clothes, hotel architecture and decorations representing the local culture, local music, authentic local experience). Are the poor involved in the tourism value chain in any way? How much do communities benefit from tourism? Are there conflicts between communities and tourism? Are women constrained in their ability to travel, either because of domestic responsibilities or because of cultural or religious factors? Do women carry a disproportionate share of housework and childcare? 68 TOURISM DIAGNOSTIC TOOLKIT IV. SAMPLE TOURISM INDUSTRY SURVEYS LOCAL TOURISM INDUSTRY SURVEY PREAMBLE This survey provides the opportunity for you to have your say on the impediments and opportunities to sustainable development of the tourism sector in [COUNTRY]. It is being conducted as part of the World Bank Group’s Tourism Sector Diagnostic (TSD) assessment. The aim of the project is to identify and prioritize constraints and opportunities regarding the development of the tourism industry, with a view to determining solutions that can be supported through future assistance programs. We shall collate responses to obtain average scores, but additional comments on each section are welcome. Your feedback will remain confidential and only aggregate scores will be released. SECTION 1: GENERAL INFORMATION Your Name: Organization: Position/Title: Address: Phone: Email: Date: SECTION 2: TOURISM SECTOR PRIORITIZATION AND LEADERSHIP 2.1 In your view, what level of priority does your Government give to tourism sector development? No Priority Very High Priority (please circle) 0 1 2 3 4 5 2.2 Do you believe [COUNTRY]’s tourism policy is effective in supporting development of the sector? Highly Ineffective Highly Effective (please circle) 0 1 2 3 4 5 2.3 How effectively do you believe the legal system in [COUNTRY] meets the needs of the tourist industry? (e.g. controls or setting standards on unsafe or unscrupulous operators). Highly Ineffective Highly Effective (please circle) 0 1 2 3 4 5 2.4 How strongly do you agree with the statement: “Effective tourism leadership in [COUNTRY] is demonstrated through the Government’s implementation of a strategic tourism plan (e.g. a Master Plan)” (On a scale where 0 = strongly disagree and 5 = strongly agree). Strongly Disagree Strongly Agree (please circle) 0 1 2 3 4 5 2.5 What level of support do you believe community has for tourism in general? Strong Opposition Strong Support (please circle) 0 1 2 3 4 5 TOURISM DIAGNOSTIC TOOLKIT 69 Section 2 Comments: SECTION 3: DESTINATION MARKETING BY TOURISM SECTOR STAKEHOLDERS 3.1 How effective is the [COUNTRY] [INSERT RELEVANT NTO] Marketing Strategy in growing tourism in [COUNTRY]? Highly Ineffective Highly Effective (please circle) 0 1 2 3 4 5 3.2 Are you a member of the [COUNTRY] Industry Association? (please circle) 1. Yes 2. No 3.3 How effective do you believe [INSERT RELEVANT Tourism Industry Association (TIA)] is in delivering on industry needs and achieving outcomes for sector growth? Highly Ineffective Highly Effective (please circle) 0 1 2 3 4 5 3.4 a) Do you participate in cooperative destination marketing activities with: If yes – what is your If no – what is the (please circle) approximate annual spend? reason for this? (i) [Name TIA] Yes No (ii) [Name NTO] Yes No (iii) Other tourism business Yes No b) If yes to any of the above, how effective are these cooperative marketing opportunities? (please circle) Highly Ineffective Highly Effective (i) [Name TIA] 0 1 2 3 4 5 (ii) [Name NTO] 0 1 2 3 4 5 (iii) Other tourism business 0 1 2 3 4 5 c) If no, would you participate if more/better opportunities were available? (please circle) (i) [Name TIA] Yes No (ii) [Name NTO] Yes No (iii) Other tourism business Yes No Section 3 Comments: 70 TOURISM DIAGNOSTIC TOOLKIT SECTION 4: GOVERNMENT & PRIVATE SECTOR TOURISM COORDINATION 4.1 Do you participate in public-private dialogue (PPD) between government and tourism private sector? (please circle) 1. Yes 2. No – not interested 3. No – no opportunity 4.2 If yes: How effective do you believe the current opportunities for dialogue between government and the tourism sector are in raising and resolving tourism management issues? Highly Ineffective Highly Effective (please circle) 0 1 2 3 4 5 4.3 How effective is coordination amongst agencies with responsibilities for aspects of tourism development (e.g. Ministers, Tourism Board, Other Government Departments, and Tourism Associations)? (On a scale where 0 = highly ineffective and 5 = highly effective). Highly Ineffective Highly Effective (please circle) 0 1 2 3 4 5 Section 4 Comments: SECTION 5: ENVIRONMENTALLY SUSTAINABLE TOURISM DEVELOPMENT 5.1 How appropriate is the level of stringency for environmental regulation of tourism development in [COUNTRY]? Highly Inappropriate Highly Appropriate (please circle) 0 1 2 3 4 5 5.2 How effective is the government’s communication about environmental regulations to the tourism sector? Highly Ineffective Highly Effective (please circle) 0 1 2 3 4 5 5.3 How adequate is the government’s policing of environmental regulations in relation to tourism developments? Highly Inadequate Highly Adequate (please circle) 0 1 2 3 4 5 5.4 How seriously are human activities impacting on the destination’s tourism appeal? Serious Impacts on Tourism Appeal No Impact on Tourism Appeal (please circle) 0 1 2 3 4 5 5.5 Are the sustainability requirements and environmental regulations governing new projects likely to deter potential investors? Major Deterrent to Investors Not A Deterrent to Investors (please circle) 0 1 2 3 4 5 TOURISM DIAGNOSTIC TOOLKIT 71 Section 5 Comments: SECTION 6: COMMUNITY LINKAGES TO TOURISM BUSINESSES 6.1 For accommodation providers only: For your accommodation business, how reliable is the local supply of: (please circle) Highly Unreliable Highly Reliable a) Food and Beverage 0 1 2 3 4 5 b) Furniture and Furnishings 0 1 2 3 4 5 c) Building Materials 0 1 2 3 4 5 d) Handicrafts 0 1 2 3 4 5 Section 6 Comments: SECTION 7: MANAGING A QUALITY VISITOR EXPERIENCE 7.1 In your opinion how effective are [COUNTRY]’s system of managing standards for tourism and related businesses? (please circle) Highly Ineffective Highly Effective a) For accommodation 0 1 2 3 4 5 b) For other tourism suppliers (e.g. local transport services, tour 0 1 2 3 4 5 operations, restaurants, etc.) 7.2 Do you regularly undertake customer/visitor satisfaction surveys? (please circle) 1. Yes 2. No If yes, how often: 7.3 What is your opinion about the degree to which visitor expectations are matched with visitor experiences in [COUNTRY]? No Match Excellent Match (please circle) 0 1 2 3 4 5 7.4 Are there taxes or charges on tourists which negatively influence the views they have about [COUNTRY] as a travel destination and are seen as unreasonable by them (e.g. bed tax, services tax, departure tax, visa fees, other)? (please circle) 1. Yes 2. No If yes, explain: 72 TOURISM DIAGNOSTIC TOOLKIT 7.5 To what extent do you believe barrier controls at the point of entry for visitors (e.g. long delays, bribery, other) threaten [COUNTRY]’s tourism appeal? Serious Impacts on Tourism Appeal No Impact on Tourism Appeal (please circle) 0 1 2 3 4 5 Section 7 Comments: SECTION 8: HUMAN RESOURCES AND TRAINING 8.1 How easy is it to source staff locally with suitable training and/or work experience for your tourism business? (On a scale where 0 = very difficult and 5 = very easy). (please circle) Very Difficult Very Easy a) Staff with higher education 0 1 2 3 4 5 b) Staff with vocational training 0 1 2 3 4 5 c) Staff with work experience 0 1 2 3 4 5 8.2 How easy is it to source staff locally with suitable attitude and service standards for your tourism business/es? (please circle) Very Difficult Very Easy Now 0 1 2 3 4 5 Next 5 years 0 1 2 3 4 5 8.3 How well equipped do you believe secondary (high) school graduates are to enter the tourism industry? Poorly Equipped Very Well Equipped (please circle) 0 1 2 3 4 5 8.4 Do you sponsor in-house or external training programs for staff? (please circle) 1. Yes 2. No 8.5 If you are familiar with tourism training courses: How would you rate the tourism training available in [COUNTRY] in terms of: a) Course content relative to skills required by the industry? (please circle) Very Unsuitable Very Suitable a) Higher education courses 0 1 2 3 4 5 b) Vocational tourism courses 0 1 2 3 4 5 b) Number of places offered relative to demand for skill requirements of industry? (please circle) Very Unsuitable Very Suitable a) Higher education courses 0 1 2 3 4 5 b) Vocational tourism courses 0 1 2 3 4 5 c) Modes of delivery (e.g. full/part time, distance, etc.) available relative to training needs?) (please circle) Very Unsuitable Very Suitable a) Higher education courses 0 1 2 3 4 5 b) Vocational tourism courses 0 1 2 3 4 5 TOURISM DIAGNOSTIC TOOLKIT 73 d) Location of courses (e.g. where courses are offered and the time required to attend?) (please circle) Very Unsuitable Very Suitable a) Higher education courses 0 1 2 3 4 5 b) Vocational tourism courses 0 1 2 3 4 5 8.6 Would/does your business hire foreign employees? (please circle) 1. Yes 2. No (Skip to Section 9) a) How easy is it under current procedures to hire foreign employees to meet your skill needs? Very Difficult Very Easy (please circle) 0 1 2 3 4 5 b) In your experience, how long does it take to secure a work and residency permit for foreign employees? Time needed (in weeks): c) Is the cost of obtaining or extending a sponsored working visa for foreign staff an impediment to hiring? (On a scale where 0 = major impediment and 5 = not a concern). Major Impediment Not a Concern (please circle) 0 1 2 3 4 5 Section 8 Comments: SECTION 9: ACCESSIBILITY AND TRANSPORT INFRASTRUCTURE 9.1 What is your view of the ease of access for visitors to key tourism locations within the destination? Very Difficult Very Easy (please circle) 0 1 2 3 4 5 9.2. Is the road access to the main tourist destinations suitable for coach or car? (please circle) 1. Yes 2. No 3. I don’t know 9.3. Is there currently enough ground transportation to meet the tourism and local demand? Highly Unsuitable Very Unsuitable (please circle) 0 1 2 3 4 5 Section 9 Comments: 74 TOURISM DIAGNOSTIC TOOLKIT SECTION 10: ACCOMMODATION INFRASTRUCTURE 10.1 What is your view on the availability of accommodation in [COUNTRY] to meet current tourism demand? (please circle) Supply Inadequate Supply Adequate a) Number of rooms available 0 1 2 3 4 5 b) Range of accommodation 0 1 2 3 4 5 10.2 In your view, will there be sufficient existing and new rooms in place to meet expected growth in demand over the next three years? Over Supply and Demand Balance Under Supply and Demand Balance (please circle) 0 1 2 3 4 5 Section 10 Comments: SECTION 11: OTHER INFRASTRUCTURE AND SERVICES CAPACITY TO SUPPORT TOURISM 11.1 What is your opinion about the ongoing reliability of the following services for your business? (please circle) Highly Unreliable Highly Reliable a) Telephone service 0 1 2 3 4 5 b) Internet service 0 1 2 3 4 5 11.2 Do you accept payment from guests/customers by credit card or debit card? (please circle) 1. Yes 2. No 11.3 What is your opinion about the adequacy of the following services for tourists in the main tourist areas of [COUNTRY]? (please circle) Highly Unreliable Highly Reliable Access to safe drinking water 0 1 2 3 4 5 Reliability of electricity supply 0 1 2 3 4 5 Supply of health and medical services 0 1 2 3 4 5 Sanitation services 0 1 2 3 4 5 Police and security services 0 1 2 3 4 5 11.4 To what degree do you believe the expansion of accommodation and visitor services is limited by reliability and access to: (please circle) Severe Constraints No Constraints a) Water supply? 0 1 2 3 4 5 b) Energy supply? 0 1 2 3 4 5 c) Waste management services? 0 1 2 3 4 5 11.5 For accommodation providers only: Do you offer internet facilities to guests? (please circle) 1. Yes 2. No TOURISM DIAGNOSTIC TOOLKIT 75 Section 11 Comments: SECTION 12: INDUSTRY PERFORMANCE 12.1 For accommodation providers: What is the approximate average annual increase or decrease in room nights sold in the past three years? >10% decline 5%-10% decline 0-5% decline No change 0-5% increase >5% increase (please circle) 0 1 2 3 4 5 12.2 Do you have an estimate of the proportion of repeat visitors for your business (i.e. % who have previously used your property or service)? 0 >5% 5%-15% 15%-30% 30-50% >50% (please circle) 0 1 2 3 4 5 Section 12 Comments: SECTION 13: BUSINESS OPERATIONAL REQUIREMENTS 13.1 Do you have to secure one or more licenses to operate your business? (please circle) 1. Yes 2. No a) Based on your experience is it difficult to secure a new license? Enter Type of License Required Very Difficult Very Easy 0 1 2 3 4 5 0 1 2 3 4 5 0 1 2 3 4 5 a) Based on your experience is it difficult to renew a license? Enter Type of License Required Very Difficult Very Easy 0 1 2 3 4 5 0 1 2 3 4 5 0 1 2 3 4 5 13.2 Is the cost of securing and renewing your licenses a significant cost to your business? A Significant Cost Not Significant (please circle) 0 1 2 3 4 5 76 TOURISM DIAGNOSTIC TOOLKIT 13.3 Do taxes or charges which are specific to the tourism industry (e.g. bed taxes, transport charges) represent a significant addition to the cost of doing business? A Significant Cost Not Significant (please circle) 0 1 2 3 4 5 Section 13 Comments: SECTION 14: OTHER COMMENTS WE SHOULD CONSIDER Thank you for completing this survey. Your answers will remain confidential. Only average scores will be released in results. TOURISM DIAGNOSTIC TOOLKIT 77 TRAVEL TRADE SURVEY PREAMBLE This survey provides the opportunity for you to have your say on the impediments and opportunities to sustainable development of the tourism sector in [COUNTRY]. It is being conducted as part of the World Bank Group’s Tourism Sector Diagnostic (TSD) assessment. The aim of the project is to identify and prioritize constraints and opportunities regarding the development of the tourism industry, with a view to determining solutions that can be supported through future assistance programs. We shall collate responses to obtain average scores, but additional comments on each section are welcome. Your feedback will remain confidential and only aggregate scores will be released. SECTION 1: GENERAL INFORMATION Your Name: Organization: Position/Title: Address: Phone: Email: Date: SECTION 2: YOUR COMPANY’S BUSINESS TO [COUNTRY] 2.1 How long has your company been selling travel products and services to [COUNTRY]? 2.2 How is [COUNTRY] included in your tour operations program? (E.g. FIT, GIT, group series, niche programs? On request only?) 2.3 How many passengers has your company booked to [COUNTRY] in the past 5 years? 5 years ago 4 years ago 3 years ago 2 years ago 1 year ago Section 2 Comments: SECTION 3: STRENGTH OF MARKET APPEAL FOR [COUNTRY] 3.1 How would you rate the attraction value of [COUNTRY]’s tourism assets relative to competing destinations? No Value Very Little Some Value Medium High Value Very High (please circle) Value Value Value a) Natural Assets 0 1 2 3 4 5 b) Cultural Assets 0 1 2 3 4 5 c) Man-made Assets 0 1 2 3 4 5 d) Overall 0 1 2 3 4 5 78 TOURISM DIAGNOSTIC TOOLKIT 3.2 How would you rate [COUNTRY]’s market appeal in terms of availability of compelling products and services? No Market Very Limited Limited Average High Market Very High (please circle) Appeal Market Market Market Appeal Market Appeal Appeal Appeal Appeal a) Nature-based products 0 1 2 3 4 5 b) Culture-based products 0 1 2 3 4 5 c) Other man-made products 0 1 2 3 4 5 e) Overall tourism offering 0 1 2 3 4 5 3.3 How has the level of market appeal for [COUNTRY] changed during the past 3 years? Dramatically Decreased Dramatically Increased (please circle) 0 1 2 3 4 5 3.4 How would you rate [COUNTRY]’s strength of appeal in terms of offering a unique, globally/regionally significant ‘must-see’ site/s or ‘must-do’ activity/ies? Very Weak Very Strong (please circle) 0 1 2 3 4 5 3.5 How would you rate [COUNTRY]’s strength of appeal in terms of value for money? (On a scale where 0 = very weak and 5 = very strong) Very Weak Very Strong (please circle) 0 1 2 3 4 5 3.6 How would you rate [COUNTRY]’s strength of appeal in terms of ease of organizing travel arrangements? (On a scale where 0 = very weak and 5 = very strong). Very Weak Very Strong (please circle) 0 1 2 3 4 5 Section 3 Comments: SECTION 4: BARRIERS TO MARKET APPEAL To what extent do the following factors impede market appeal for tourism to [COUNTRY]? (please circle) Significant Barrier Not a Barrier a) Cost of international access to 0 1 2 3 4 5 [COUNTRY] b) Cost of travel within [COUNTRY] 0 1 2 3 4 5 c) Ease/difficulty of access to the 0 1 2 3 4 5 [COUNTRY] d) Ease/difficulty of travel within 0 1 2 3 4 5 [COUNTRY] TOURISM DIAGNOSTIC TOOLKIT 79 (please circle) Significant Barrier Not a Barrier e) Quality/safety of transport 0 1 2 3 4 5 services to [COUNTRY] f) Quality/safety of transport 0 1 2 3 4 5 services within [COUNTRY] g) Cost of accommodation in 0 1 2 3 4 5 [COUNTRY] h) Availability of accommodation in 0 1 2 3 4 5 [COUNTRY] i) Quality of accommodation in 0 1 2 3 4 5 [COUNTRY] j) Lack of things to see/do in 0 1 2 3 4 5 [COUNTRY] k) Cost of other tourism products 0 1 2 3 4 5 and services in [COUNTRY] l) Availability of other tourism 0 1 2 3 4 5 products and services in [COUNTRY] m) Standard of other products and 0 1 2 3 4 5 services in [COUNTRY] n) Safety and security concerns in 0 1 2 3 4 5 [COUNTRY] o) Health concerns in [COUNTRY] 0 1 2 3 4 5 p) Social issues (e.g. poverty, human 0 1 2 3 4 5 rights issues) in [COUNTRY] q) Environmental issues (e.g. natural 0 1 2 3 4 5 resource degradation) in [COUNTRY] Section 4 Comments: SECTION 5: TRANSPORT AND ACCESS 5.1 What is your opinion on the adequacy of air transport to and within [COUNTRY], specifically in relation to the following? (please circle) Inadequate Adequate a) Frequency of flights to [COUNTRY] 0 1 2 3 4 5 b) Availability of seats 0 1 2 3 4 5 c) Suitability of airline schedules 0 1 2 3 4 5 for connections to key tourism locations in the destination d) Suitability of airport facilities/ 0 1 2 3 4 5 services e) Availability of reliable internal 0 1 2 3 4 5 flights for local travel 80 TOURISM DIAGNOSTIC TOOLKIT 5.2 What is your opinion on the adequacy of cruise transport to and within [COUNTRY] specifically in relation to the following? (please circle) Inadequate Adequate a) Ease of access to [COUNTRY] 0 1 2 3 4 5 by boat/ship b) Frequency of cruises to 0 1 2 3 4 5 [COUNTRY] c) Availability for bookings 0 1 2 3 4 5 d) Suitability of schedules 0 1 2 3 4 5 e) Suitability of cruise port facilities 0 1 2 3 4 5 5.3 What is your opinion on the adequacy of ground transport/infrastructure within [COUNTRY] specifically in relation to the following? (please circle) Inadequate Adequate a) Ease of access to [COUNTRY] 0 1 2 3 4 5 by road travel b) Quality of road infrastructure 0 1 2 3 4 5 c) Facilities for road travel (e.g. 0 1 2 3 4 5 customs, fuel stops, safety) d) Supply of local transport options 0 1 2 3 4 5 according to demand 5.4 What is your opinion on the adequacy of rail transport/infrastructure within [COUNTRY] specifically in relation to the following? (please circle) Inadequate Adequate a) Ease of access to [COUNTRY] 0 1 2 3 4 5 by train b) Frequency of trains to destination 0 1 2 3 4 5 c) Availability for bookings 0 1 2 3 4 5 d) Suitability of schedules 0 1 2 3 4 5 e) Suitability of train facilities/services 0 1 2 3 4 5 5.5 What is your opinion on the relative ease of market access to/within [COUNTRY] specifically in relation to the following? (please circle) Inadequate Adequate a) Availability of flight routes to 0 1 2 3 4 5 [COUNTRY] with uncomplicated, convenient connections b) Ability to secure seats on 0 1 2 3 4 5 preferred flights c) Ability to access key tourism sites/ 0 1 2 3 4 5 locations within [COUNTRY] Section 5 Comments: TOURISM DIAGNOSTIC TOOLKIT 81 SECTION 6: ACCOMMODATION SUPPLY 6.1 What is your opinion on adequacy of accommodation in [COUNTRY] specifically in relation to the following? (please circle) Inadequate Adequate a) Number of suitable quality rooms 0 1 2 3 4 5 b) Range of suitable types/options 0 1 2 3 4 5 Section 6 Comments: SECTION 7: SUPPLY OF OTHER TOURISM PRODUCTS AND SERVICES 7.1 What is your opinion on the adequacy of the supply of the following in meeting demand? (please circle) Inadequate Adequate a) Food and beverage outlets 0 1 2 3 4 5 b) Local tours/tour operators 0 1 2 3 4 5 c) Tour products to meet demand 0 1 2 3 4 5 Section 7 Comments: SECTION 8: [COUNTRY]’S BRANDING AND MARKETING 8.1 What is your opinion on the effectiveness of [COUNTRY]’s brand positioning and marketing in attracting and generating tourism sales? (please circle) Very Ineffective Very Effective a) Brand positioning 0 1 2 3 4 5 b) Marketing 0 1 2 3 4 5 8.2 What is your opinion on the effectiveness of the overall region’s brand positioning and marketing in attracting and generating tourism sales? (please circle) Very Ineffective Very Effective a) Brand positioning 0 1 2 3 4 5 b) Marketing 0 1 2 3 4 5 8.3 How well do you think the visitor’s actual experience matches their expectations No Match Excellent Match (please circle) 0 1 2 3 4 5 8.4 What is your opinion about the quality and quantity of [COUNTRY] destination information available for your market? Insufficient Information Sufficient Information (please circle) 0 1 2 3 4 5 82 TOURISM DIAGNOSTIC TOOLKIT Section 8 Comments: SECTION 9: VISITOR EXPERIENCE 9.1 Are there taxes or charges on tourists which you believe negatively influence their views about the destination (e.g. bed tax, departure tax, visa fees)? (please circle) 1. Yes 2. No 3. I don’t know If yes, list: 9.2 To what extent do you believe barrier controls (long delays, difficult questioning, intrusive customs or bribery) at ports and airports generate negative perceptions for visitors to [COUNTRY]? Serious Concern No Concern (please circle) 0 1 2 3 4 5 Section 9 Comments: SECTION 10: OTHER COMMENTS WE SHOULD CONSIDER Thank you for completing this survey. Your answers will remain confidential. Only average scores will be released in results. TOURISM DIAGNOSTIC TOOLKIT 83 V. SITE ASSESSMENT CHECKLIST NAME OF ATTRACTION: NAME OF OBSERVER: DATE OF VISIT: NAME/POSITION OF CONTACT: ITEM COMMENTS Site conditions Location Size/dimensions Opening hours/days Description of activities Key elements of attraction Quality ranking of facilities Links to other attractions: stand-alone or part of wider itinerary Access considerations Distance/mode from main destination hub Points of access, entry, exit Public transportation and parking (private vehicles, coach) Support facilities Signage Restrooms Concessions Accommodation Ownership Management responsibility and arrangements Visitor statistics Visitor capacity Visitor management Market Types of visitors observed Pricing Quality of visitor experience Visual Impact Ease of visitor movement Cultural authenticity Visitor behavior Health and safety issues Cleanliness Summary of key strengths and weaknesses Areas for improvement and opportunities for future development 84 TOURISM DIAGNOSTIC TOOLKIT VI. SAMPLE TERMS OF REFERENCE the future to present a high-level profile of supply and demand in the region. (TOR) Investment analysis: Collect data and analyze the investor INTERNATIONAL TOURISM EXPERT FOR SECTOR market, including levels of FDI and domestic investment, and SCOPING STUDY types of tourism projects being developed (and pipeline). Background Identify specific investors and categorize types of investors, access and availability of finance, size of projects, market [Client] has requested World Bank Group to provide support segment, and typical structure of deals. An indication of in developing their tourism sector. [Client] has requested a current and likely future investor demand is important. tourism diagnostic assessment of the key opportunities and constraints within the sector, with a specific focus on [insert]. Government priorities: Clearly identify government priorities in the sector (thematic, geographic, etc.) as they This TOR establishes the scope of work to conduct a relate to destination development and the private sector, and preliminary sector diagnostic scoping that will be made any challenges envisaged in achieving their targets. This is available to the client. It will also serve to guide the discussion likely to be further refined during meetings with the client. for potential WBG engagement, going forward. Constraints: Compile a list of constraints related to investing Overview of Tourism Sector in Client Country in or operating a tourism business from the private sector [Insert] perspective – identified and validated through stakeholder consultation. Objectives of the Assignment Product/market opportunities: Assess existing products The objective is to undertake a rapid assessment of the in terms of quality, pricing, fit with markets, and standards. tourism sector in [client country], focusing on the constraints Identify and analyze potential opportunities for growth within and opportunities facing the sector. the destination (new products, new segments, new markets, This piece of work will build a profile of the sector as it is now, enhanced regulatory frameworks, different geographical but also what it will look like into the future. It will include focus, under-exploited assets, PPP opportunities, etc.) analysis of the market (supply and demand), investment, validated through stakeholder consultation. regulatory environment, operating environment, and overall destination development, as well as constraints, opportunities, Donor mapping: Compile a brief profile of other donors and recommendations for meeting government targets and (including WBG initiatives), NGOs, and organizations involved priorities. The assessment will be submitted to the client to in the tourism sector (or directly related fields) and their key inform their future policy decisions and will also inform potential areas of focus/intervention. tourism project design (technical assistance) for the WBG. Institutional analysis: Meet with and interview key Scope of Work institutions responsible for driving growth in the sector, including private sector associations. A brief assessment of The expert consultant will carry out the following activities: their focus areas, their capacity and current challenges should Conduct a thorough diagnostic assessment through be undertaken. desk review of all available literature on the tourism sector Gap analysis and recommendations: The consultant will including donor reports, press articles, and national plans and indicate (where possible) which of the identified constraints strategies. and opportunities in the sector are being successfully addressed Pre-scoping mission in country to: a) meet with the client by the client, donors, associations or existing initiatives, and to further refine the focus of work and agree on deadlines where the gaps remain. Of these gaps, the consultant will and objectives; and b) interview key private sector investors/ propose brief recommendations, a proposed workplan, and operators, government officials, donors, NGOs, civil society, priority actions according to level of impact (if fixed) and level and other relevant stakeholders. The WBG will provide some of effort (to fix). This will involve some basic quantification of logistical support to this mission, but it is expected that the projected development impact (opportunity cost, investment consultant will also help to research and plan the itinerary, generated, jobs created, etc.). including stakeholders to meet. Deliverables Market analysis: Collect data and analyze the overall tourism A draft outline of the report following the mission clearly market; arrivals, spend, length of stay, guest profile, number showing the direction of the assignment for the direct approval of rooms, quality of hotels, occupancies, brands, grading, etc. of the assignment supervisors. including a summary of recent market history and trends. The consultant should build in approximate likely projections for A draft report allowing for full feedback from the WBG. TOURISM DIAGNOSTIC TOOLKIT 85 A final report documenting: VII. SAMPLE REPORT TABLE OF • Client’s priorities in the sector and focus of the assignment. CONTENTS • Market and investment analysis of tourism sector (supply Tourism Diagnostic Final Report: [insert country] and demand), as pertaining to the priorities of the client. Prepared for the World Bank Group by [insert TTLs/ • An institutional review of relevant bodies, and donor consultant/firm] mapping of the sector. [insert date] • Main constraints and opportunities within the sector as faced by the private sector, and at a broader destination- Contents development level. These should be framed within the 1. Executive Summary context of the client’s priorities. 2. Background The Consultant may be asked to assist the WBG in making 3. Government Vision and Priorities (summary of key technical presentations, addressing issues, and responding to targets, priorities in sector) questions. 4. Institutional Analysis Work program and timetable (indicative) 5. Benchmarking Comparator Destinations TASK LEVEL OF EFFORT (DAYS) 6. Tourism Sector (background to destination, key statistics, volumes, attractions, etc.) Pre-mission diagnostic 10 7. Supply and Future Supply assessment 8. Demand and Future Demand Mission and stakeholder 20 interviews 9. Tourism Investment 10. Destination Growth Constraints Draft report write-up 10 11. Destination Growth Opportunities Revisions for final report 5 12. Mapping of Donor (and other Actor) Involvement Qualifications 13. Gap Analysis and Recommendations The consultant will have at least 10 years of professional experience in the tourism sector and must demonstrate the skills required to undertake the tasks set out under this TOR, including: • Thorough understanding of the tourism private sector, including operations. • Experience working in the regulatory environment for tourism. • Thorough understanding of investment climate issues in the tourism sector and of the processes for mobilizing investment for tourism projects. • Good communicator with strong analytical capabilities • Thorough understanding of sustainable tourism, pro- poor tourism, and strategies for inclusive growth. • Experience of the region will be an added advantage. Reporting The consultant will report to [insert TTLs]. 86 TOURISM DIAGNOSTIC TOOLKIT TOURISM DIAGNOSTIC TOOLKIT 87 Email us at tourism@worldbankgroup.org Engage with us on social media at #tourism4dev © 2019 The World Bank Group 88 TOURISM DIAGNOSTIC TOOLKIT