Knowledge Series Tourism for Development Demand Analysis for Tourism in African Local Communities DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 1 © 2018 The World Bank Group Rights and Permissions 1818 H Street NW The material in this publication is copyrighted. Copying Washington, DC 20433 and/or transmitting portions or all of this work without Telephone: 202 473 1000 permission may be a violation of applicable law. The World Internet: www.worldbank.org Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. This volume is a product of the staff of the World Bank Group. 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World Bank Group, 1818 H Street NW, Washington, DC 20433, The findings, interpretations, and conclusions expressed USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org. in this volume do not necessarily reflect the views of the This report was prepared by Acorn Tourism Consulting Limited Directors or Executive Directors of the respective institutions for the World Bank Group with contributions from Hermione of the World Bank Group or the governments they represent. Nevill, Talia Salem and Louise Twining-Ward. The World Bank Group does not guarantee the accuracy of the data included in this work. 2 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 3 Contents Executive Summary 6 1. Introduction: Definitions, Background and Methodology 8 2. Global Trends for CBT and Adventure Tourism 12 3. Market Characteristics 18 4. Traveling Characteristics 24 5. Trip Practicalities: Planning and Booking 28 6. Expectations and Motivations 31 7. Expenditure, Price Issues and Length of Stay 32 8. Recommendations 36 Acronyms ABTA Association of British Travel Agents FIT Fully Independent Traveler ATTA Adventure Travel Trade Association HVLD High-value Low-density CAGR Compound Annual Growth Rate NGO Non-Governmental Organization CBT Community-based Tourism OTA Online Travel Agent DMC Destination Management Company S.A.V.E. Scientific, Academic, Volunteering EU European Union or Educational Purposes 4 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 5 Executive Summary Overview of Tourism in Local Communities UK, Germany, France and Netherlands. CBT tourists share in Africa many characteristics of the adventure tourist across the broad demographic groups of Baby Boomers, Generation Demand Analysis for Tourism in Local Communities in Africa X and Millennials, and these can be further categorized by estimates that this kind of tourism, hereafter called spending power and time availability, as: Community-Based Tourism (CBT), is undertaken by around 20% of adventure tourists to the African continent, accounting • Time Rich/Cash Rich for 3.8% of all tourist arrivals. The CBT market is segmented • Cash Rich/Time Poor into four main types of product: • Time Rich/Cash Poor • CBT Experiences One of the major global travel trends today is the increasing • CBT Experiences with Accommodation (Homestay) demand for authentic travel experiences, as increasing • Tour of Multi-CBT Experiences numbers of tourists seek to immerse themselves in • CBT Volunteering Adventures local cultures and environments to generate a greater understanding of the destination and culture. Consultations The market for CBT in Africa is driven by CBT Volunteer with tour operators show there is an increasing interest in Adventures, which accounts for more than one half of CBT (53.6%), and the market is well established with a presence in CBT experiences as part of a wider trip, although there is most African countries. The segment has strong ties with the a level of expectation from CBT tourists wanting to stay conservation sector, supporting the long-term sustainability overnight that revolves around authenticity, comfort and of African wildlife and the environment, while providing cleanliness. economic benefits for local communities. Key Recommendations for CBT Enterprise The market for other types of CBT is less developed. Development The number of CBT visitors taking part in CBT Experiences with Accommodation (Homestays) is particularly low as a The high yielding Cash Rich/Time Poor market segment (which result of poor-quality accommodation supply and subsequent includes families) is particulalry underserved by CBT in Africa. lack of demand. There is a wider range of CBT Experiences that There is an opportunity to develop CBT products—especially do not involve accommodation, present in varying degrees more CBT Experiences with Accommodation to try to capture throughout established and emerging destinations, which more of this market. This requires a shift in the types and play an important role in growing supply and generating standard of product that is currently on the market market demand. Based on this study, the following recommendations are Europe and North America are the major source markets provided for practitioners involved in the creation and for CBT, and the most prominent markets include the USA, management of tourism products in local communities in Africa. 6 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES Tourists seek to immerse themselves in local cultures and environments to generate a greater understanding of the destination and culture. 1. Establish Cultural Integrity tourist routes. Such routes are typically either tour operator Authenticity is the most important factor for visitors, itineraries or routes used by independent tourists who are consequently, it is essential that products and services are making their own travel arrangements. developed with sensitivity and a high degree of ownership 5. Value-driven Pricing from the community concerned. Pricing is a less sensitive issue as CBT tourists are prepared 2. Sustainability and Community Involvement to pay relative high amounts for authentic experiences and It is crucial to establish all types of CBT in conjunction with accommodation they consider to be of value to the community. local communities in order to avoid any negative impacts that Consequently, transparency is important so the CBT tourist may arise, such as conflicts between community members, believes they have made an important contribution. and facilitate the sharing of benefits. CBT experiences should be underpinned by internationally recognized sustainable 6. Keys to Success best practice. The key areas that will support the development and successful delivery of CBT to the African continent have been 3. Meeting Tourist Expectations identified as: Understanding the expectations of the international CBT tourists is crucial to developing a successful CBT experience. • Development of products in reasonably close proximity For accommodation providers, a reasonable level of comfort to major tourist sites (up to 4-6 hours’ travel away) and cleanliness is paramount. where cultural assets are strong and/or aligned with key tourist routes and circuits. 4. Destinations and Location • Food is a growing global cultural trend and could be an While immersive community experiences are the primary important growth driver for the CBT market. draw, being close to a major attraction, such as a safari park, recreation area or cultural site, can act as a tourism driver • CBT development should be appropriate for the key to the region. Consequently, CBT opportunities should be markets, with particular consideration to authenticity, conveniently located so they are easily accessible from current comfort and cleanliness. DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 7 1. Background, Definitions and Methodology 1.1 Background 1.2 Scope of Project and Definition Sustainable tourism is a proven tool for development, benefitting The report is concerned with tourism products and services that communities in destinations around the world. As demand are delivered by and/or based in local communities in Africa. for global tourism continues to grow, the opportunities for The product being sold is linked to the community and generally sustainable development and inclusion also increase. The World provides some form of authentic experience of the community. The report uses the term Community-Based Tourism or CBT to Bank Group supports the development of the tourism sector encapsulate this, and is further defined as: and its contribution to our twin goals of reducing poverty and increasing shared prosperity. • Accommodation homestays in ‘underserved’ areas (remote areas, poorer neighborhoods, marginalized or informal The rise of the digital economy and the many digital platforms settlements). that promote direct interaction and commerce between • Experiences within these communities, such as guided tourism service providers and consumers provides an walks, tours, classes, etc. opportunity for greater inclusion in the sector. Inclusion in this context refers to individuals, entrepreneurs or small businesses The definition does not explicitly refer to CBT as being a collective that were previously excluded from sector participation due to project (as per the more traditional definition of CBT), but more discriminating factors such as their gender, age, size, capacity or to the environment in which the tourism product is developed. Products and experiences may be delivered by collectives, location. There is some evidence1 to suggest that, in theory, digital cooperatives, associations, and also individuals, but all offer an platforms in tourism can facilitate greater access to markets for element of culture, authenticity and local experience. CBT in this excluded groups, including local communities and the hosts or report falls under the umbrella of ‘responsible tourism’, defined experience-providers in those communities. In Africa, however, as making better places for people to live in and better places for there is little known about the market for such products and people to visit. what the shape of this demand might look like. It is important to consider the characteristics of demand (the tourists) before 1.3 Methodology developing further supply. The research to assess the characteristics, size, and scale of the This report aims to provide a market overview that describes the CBT tourism market was comprised of two phases: primary and main characteristics and size of current and future demand for secondary research. From this research recommendations were tourism products delivered by and based in local communities made. in Africa. If demand is better understood, supply can be better Primary Research developed and better placed to take advantage of the market Individual telephone consultations were carried out with 10 access opportunities offered by the growth in digital platforms. selected tour operators and destination management companies Increased supply that is performing well will yield development (DMCs).2 Their selection was based on the overarching criteria that results for marginalized communities and help to increase the tour operators travel to or are based in Africa, and include CBT shared prosperity. experiences of some nature within their African travel portfolios. 1 Bakker, M & Twining-Ward, L.(2018). Tourism and the Sharing Economy: Policy & Potential of Sustainable Peer-to-Peer Accommodation (English). Washington, D.C.: World Bank Group. 2 Tour Operators and DMCs Interviewed: African Connection Tourism (Senegal), African Impact (South Africa), Audley Travel (UK), Aventour (Madagascar), Explorations Company (UK), Lokal Travel (USA), Maisons du Voyage (France), Red Rocks Initiative (Rwanda), Travelworks (Germany), and Transfrontier Parks (South Africa and Mozambique). 8 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES Secondary Research 1.5 Benefit and Risk Analysis of CBT Extensive desk-based research was conducted, consulting 1.5.1 Benefits a wide range of trusted sources such as the Adventure Travel Trade Association (ATTA) and the World Tourism The potential benefits of CBT to the communities are varied Organization (UNWTO), that have been built up over many and multiple, including: years’ experience. Findings from the Tour Operator interviews • Brings external recognition and attention to a community. were amalgamated within the research. • Diversifies economic activities for the community. 1.4 Development of the Sector • Stimulates community pride and protection of community resources. The sector first evolved through volunteer projects supporting communities across the developing world, typically • Involves and encourages the participation of women and coordinated by non-governmental organizations (NGOs), young people. such as the USA’s Peace Corps and the UK’s Voluntary Service • Provides an alternative form of income, which in turn Overseas (VSO). Today, there are hundreds of similar NGOs helps safeguard the livelihoods and well-being of both and tour operators that continue to place volunteers and local and indigenous communities. interns in projects that help empower communities all over • Facilitates natural or cultural resource-based the world. conservation, such as where the main product is wildlife The sector has grown significantly over recent years, driven or cultural heritage. by the changing needs of an increasingly discerning tourist • Empowers local communities to form joint ventures and their demand for an authentic travel experience that go with external organizations/companies. hand in hand with the desire to make a positive contribution In exchange for these benefits, the tourist can expect to enjoy: to the places they visit. Shorter CBT experiences emerged through the provision of short-stay tourist accommodation • An experience they can only have in this community, in local homes, known as homestays, and during their stay, learning first-hand about a community’s lifestyle and guests often get involved in community-led activities, such traditions from the community itself. as preparing a meal or helping with the harvest. Now, many • A deeper connection to the destination. communities run village tours, teach handicraft-making and • The knowledge that their tourism contribution supports cooking, conduct safari drives and operate a multitude of trips cultural preservation, long-term habitat conservation, to enhance the tourist experience and maximize benefit for and species preservation and other forms of conservation. the community. Hence, successful CBT projects are mutually beneficial, whereby tourism provides local employment and • Transparency about whom their tourist dollar supports income for the community, while the tourist and hosts enjoy and feeling good about helping a community with a meaningful and immersive cultural exchange. limited economic resources. DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 9 1.5.2 Risks whereby the community begins to resent visitors (too many, too few, poor visitor behavior). Resentment and Conversely, the development of CBT can be challenging, for a number of reasons: poor visitor management damage the visitor experience - particularly the authenticity - and will cause it to fail. • Rivalries within communities on account of the complexities of traditional hierarchies and jealousies that 1.6 Community-Based Tourism can arise, as other community members not involved in CBT do not benefit from a new income stream. The CBT sector is wide-ranging, and there is commonality • Lack of local skill, expertise, economic awareness and between the products within it, how they are developed by information can lead to poor implementation of the the community, marketed and sold; consequently, no specific product and external exploitation by third parties. standard has been universally accepted. For the purposes of • Infrastructural challenges, such as water supply, power this report, CBT has been segmented into four main product and access (roads, airports). types in order to identify appropriate source markets of • Quality of tourism product, such as poor accommodation visiting tourists. However, it is important to note there is or food with improper sanitation that do not meet often overlap between these: international tourism standards. • CBT Experiences (2-3 hours, up to one day). • Neglect of other daily community tasks in favor of CBT • CBT Experiences with Accommodation (Homestays) activities, that causes a breakdown of the community’s (1-3 nights). normal routines, social cohesion and necessary tasks. • Negative impact of tourism: If not managed appropriately, • Tour of Multi-CBT Experiences (7-14 nights). a situation of overtourism or ‘voyeurism’ could arise, • CBT Volunteering Adventures (any duration). 10 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES Tourism provides local employment and income for the community, while the tourist and hosts enjoy a meaningful and immersive cultural exchange. The distinction between the different CBT products is outlined 3. Tour of Multi-CBT Experiences as follows: • Duration: 1-2 weeks. 1. CBT Experiences • Details: Holiday trips are usually pre-booked, and may • Duration: 2-3 hours, half-day or day-long trips. or may not be guided, extending over one or two weeks • Details: CBT Experiences often commence from an in Africa, and typically involve elements of CBT within urban destination or tourism hub, or from hotels in a wider trip. An example includes a hiking holiday in rural locations. Such experiences include visits to local Atlas Mountains, staying overnight with local families/ plantations; culture walks around local villages; meeting communities en route, enjoying traditional food and local people over food/drink; food trails, cooking and other becoming immersed in the local culture. At either end of local handicraft-making classes; enjoying meals with local the holiday, it is likely that participants will stay in hotels families; attending festivals and events; shopping in local and take part in other activities that are not considered to markets; guided trips to view wildlife in parks close by. be CBT. • Typical Providers: Communities, villages, collectives, • Typical Providers: Holidays arranged by inbound or cooperatives, associations, NGOs and individuals. in-country tour operators; supported by local ground • Booking: Can be booked independently as an individual operators or NGOs; community or network of homes activity, or pre-booked as part of a longer trip through a within a community. tour operator. • Booking: Usually pre-booked as part of a longer trip. 2. CBT Experiences with Accommodation 4. CBT Volunteering Adventures (Homestays) • Duration: Any. • Duration: 1-3 nights, sometimes longer. • Details: The market for longer CBT experiences usually • Details: Homestays are typically a trip to stay with a involves volunteering or internship projects, helping local local community, or more than one community, for one communities to build schools or other infrastructure or more nights, and get involved with community-led projects; teaching English or sport; conservation projects; activities, such as cooking, handicrafts, animal husbandry, or getting involved in healthcare initiatives such as malaria harvesting, festivals, and other celebrations/rituals. prevention or sexual health. Volunteering of this nature Also includes visits to wildlife and nature conservancy projects, such as in safari lodges/camps run by communities is popular amongst ‘gap year’ students, students taking for nature/community-based tourism in private reserves a year off before they before they go to university, and and parks. Accommodation is provided in Homestays in people taking a career break between jobs. Participating a family home or in purpose-built accommodation in the in a Short CBT Experience whilst volunteering is a ‘day off’ community. activity. • Typical Providers: Usually supported by local ground • Typical Providers: Communities and projects identified operators or NGOs, although some homestays and lodges by NGOs working in region; supported by specialist tour manage their businesses and handle bookings themselves. operators. • Booking: Can be booked independently as an individual • Booking: Usually pre-booked, either directly with activity, or pre-booked as part of a longer trip. community or NGO or through a specialist operator. DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 11 2. Global Trends for CBT and Adventure Tourism 2.1 Size of the CBT Market in Africa In 2017 tourist arrivals to Africa grew by 9%, more than any other continent and ahead of Europe at 8.4%. Tourist arrivals in Africa are forecasted to reach 74 million in 2018. Africa is a major global destination for Adventure Travel, and the Adventure Travel market is estimated to account for half of all leisure arrivals.3 The CBT sector is included within the Adventure segment and it is estimated that CBT in some form is undertaken by around 20% of adventure tourists to Africa, accounting for 3.8% of all tourist arrivals to the continent. Table 1: International Tourist Arrivals and CBT Visitors to Africa, 2018 Visitor Types to Africa 2018 (est.) % Share of CBT Notes: Overnight Visitors (tourists) to Africa 74,000,000 - i Leisure Tourists to Africa (38%) 28,120,000 - ii Adventure Tourists to Africa (50% of Leisure) 14,060,000 - iii CBT Elements included in Adventure Trips (20%) 2,800,000 100.0% iv CBT Visitors segmented by CBT Type CBT Experiences 500,000 17.9% iv CBT Experiences with Accommodation (Homestays) 250,000 8.9% iv Tours with Multi-CBT Experiences 550,000 19.6% iv CBT Volunteering Adventures 1,500,000 53.6% v Notes: See footnote for details of sources4 3 World Tourism Organization UNWTO (2018). Tourism Barometer Volume 16. March/April 2018 Statistical Analysis; Acorn Tourism Consulting Ltd analysis 4 Notes: i. World Tourism Organization UNWTO (2018). Tourism Barometer Volume 16. March/April 2018 Statistical Analysis; World Travel and Tourism Council: Travel and Economic Impact Africa 2018, March 2018 https://sp.wttc.org/-/media/files/reports/economic-impact-research/regions2018/africa2018.pdf ii. World Tourism Organization UNWTO (2018) Tourism Barometer Volume 16. March/April 2018 Statistical Analysis; Acorn Tourism Consulting Ltd analysis iii. Mintel, Adventure Tourism in Africa 2016; Acorn Tourism Consulting Ltd analysis iv. Acorn Tourism Consulting Ltd Tour Operator research in June 2018 v. Mintel, Volunteering in Sub-Saharan Africa 2014 12 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES Based on a literature review into the niche markets of consequence of poor quality of supply and therefore lack adventure tourism, volunteer tourism, safari tourism and of demand. volunteer tourism in Africa, along with tour operator research • CBT Volunteering Adventures account for more than half undertaken for this study, it can be said that: of all CBT experiences (53.6%) in Africa, and the market is • Half a million visitors take part in CBT Experiences in well established on the continent. Africa currently, accounting for 17.9% of CBT experience UNWTO’s annual growth projections for arrivals to Africa types, and account for more than twice as many in 2018 are between 5% and 7%,5 with more conservative experiences as those with accommodation/homestays. longer-term growth of 5% predicted to 2023. CBT, however, is • The number of visitors participating in CBT Experiences expected to grow more rapidly, between 7% and 10% annually with Accommodation (Homestays) are low as a to 2023. Table 2: Forecasts of International Tourist Arrivals and CBT Visitors to Africa, 2023 Visitor Types to Africa 2018 (est) 2023 Forecast Scenarios Notes: Forecast Forecast Growth Rate: 5% Growth Rate: 7% Overnight Visitors (Tourists) to Africa 74,000,000 77,700,000 79,180,000 i Leisure Tourists to Africa (38%) 28,120,000 29,526,000 30,088,400 ii Adventure Tourists to Africa (50% of Leisure) 14,060,000 14,763,000 15,044,200 iii CBT Elements included in Adventure Trips (20%) 2,800,000 2,940,000 2,996,000 iv CBT Visitors segmented by CBT Type Forecast Forecast Growth Rate: 7% Growth Rate: 10% CBT Experiences 500,000 535,000 550,000 iv, vi CBT Experiences with Accommodation (Homestays) 250,000 267,000 275,000 iv, vi Tours with Multi-CBT Experiences 550,000 588,500 605,000 iv, vi CBT Volunteering Adventures 1,500,000 1,605,000 1,650,000 v, vi Notes: See below for sources cited6 5 World Tourism Organization UNWTO (2018). Tourism Barometer Volume 16. March/April 2018 Statistical Analysis 6 World Tourism Organization UNWTO (2018). Tourism Barometer Volume 16. March/April 2018 Statistical Analysis World Travel and Tourism Council: Travel and Economic Impact Africa 2018, March 2018 https://sp.wttc.org/-/media/files/reports/economic-impact-research/regions2018/africa2018.pdf i. World Tourism Organization UNWTO (2018). Tourism Barometer Volume 16. March/April 2018 Statistical Analysis; Acorn Tourism Consulting Ltd analysis ii. World Tourism Organization UNWTO (2018) Tourism Barometer Volume 16. March/April 2018 Statistical Analysis; Acorn Tourism Consulting Ltd analysis iii. Mintel, Adventure Tourism in Africa 2016; Mintel, Volunteering in Sub-Saharan Africa 2014 iv. Acorn Tourism Consulting Ltd, Primary research with Tour Operators in June 2018 v. Mintel, Volunteering in Sub-Saharan Africa 2014 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 13 2.2 Global Trends for CBT and Adventure Tourism As adventure travel continues to grow, ATTA’s Travel Trends to Watch in 2018 identified a number of experience and product Globally, the trend for authentic experiences is growing, with trends that would have a positive impact on international ‘authenticity’ and ‘discovering a different way of life’ being key experiential travel: features that CBT participants are keen to experience. More and more tourists seek to immerse themselves in local cultures • Being local as the ultimate adventure: as adventure travelers become more discerning, they increasingly seek and environments to generate a greater understanding of the to experience their choice of destination as ‘temporary destination and the culture. As a result, CBT is considered locals’, seeking a personal connection to a shared as part of the adventure tourism niche, one of the fastest experience based on interest, relations and authenticity. growing and most rapidly evolving travel niches in the world Food and culinary adventures offer exceptionally strong today. bonding experiences and authentic connections with a In the face of global challenges that include climate change, destination and the residents. political upheavals, natural disasters and terrorism, the • As the desire for ‘experiences’ increases, research has sector is continuing to show high levels of resilience, and uncovered that participants are also actively motivated by according to US-based Adventure Travel Trade Association a desire for personal growth and learning. Consequently, (ATTA), which conducts research on the global adventure tour operators are focusing closely on incorporating travel market, the global value of the adventure travel market more elements within a trip to deliver the motivating was ‘conservatively’ estimated to be US$683 million in 2017, factors required. CBT falls directly into this arena. registering a 21% CAGR since 2012.7 However, a study published Adventure travel booking platform TrekkSoft concurred that by Allied Market Research estimated the global adventure ‘Experiences’ were the number one travel trend in its 2018 market was worth US$445 billion in 2016 and projected the Travel Trend Report, highlighting that at the heart of the guest market would reach US$1,336 billion by 2023, registering a experience is the experience itself. CAGR of 17.4% from 2017 to 2023.8 Consequently, opportunities The growth in demand for adventure and experiential travel is in the adventure travel sector remain buoyant as the trend for driving demand for CBT experiences. authentic, unique experiences is set to continue its growth trajectory. 2.3 Online Supply of CBT Products In the UK market, the number one trend in the Association of There are no published statistics on international visitor British Tour Agencies’ Travel Trends Report 2018 saw ‘Responsible demand for CBT. Therefore, analysis has focused on the Tourism’ taking the top spot, with research revealing that available supply of CBT products to identify the regions where almost 70% of respondents believe that travel companies CBT is attracting most visitors. should ensure their holidays help the local economy. There are three large online travel agents (OTAs) that Public awareness has been rapidly increasing over issues that specialize in selling ‘responsible tourism’ and CBT products include human rights, working conditions and environmental including Responsible Travel, which was established in 2001 impact, which has had a direct impact on the profile of CBT. and is the largest global online aggregator of responsible Adventure Travel Trade Association and the George Washington University (2013). Adventure Tourism Market Study 2013. 7 8 Doshi, Y & Das, D (2018). Global Adventure Tourism Market Opportunities and Forecasts 2017-2023; Allied Market Research. Retrieved from https://www.alliedmarketresearch.com/adventure-tourism-market 14 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES The growth in demand for adventure and experiential travel is driving demand for CBT experiences. tourism holidays with sites in the UK and USA. Lokaltravel. org and Visit.org are US-based sites that offer lodging, short experiences and multi-day trips. An analysis of the CBT products offered by these specialist OTAs identified that the market is strongest in Central and South America (with a 43.4% share of products offered), followed by Asia (25.3%). By contrast, African products only accounted for 12.9%. Table 3: Analysis of CBT Experiences Offered by Specialist Responsible Tourism OTAs, 20189 Continent Responsible Lokal Travel Visit.org All % Share Travel Experiences Central/South America 46 223 281 550 43.4% Asia 119 55 147 321 25.3% Europe 16 5 209 230 18.1% Africa 101 4 58 163 12.9% Australasia 3 0 1 4 0.3% Source: Responsible Travel, Lokal Travel, Visit.org Based on the products sold by these specialist OTAs, CBT products in Asia are most widely available in India, Cambodia, Thailand and Vietnam. In Central and South America, Peru offers the most CBT products, followed by Mexico, Colombia, Brazil and Costa Rica. In Africa, Morocco and South Africa are the two countries that currently offer the most CBT products, which are usually CBT Experiences with Accommodation (Homestays). 9 Central/South America - Argentina, Bolivia, Brazil, Chile, Costa Rica, Cuba, Ecuador, Guatemala, Jamaica, Mexico; Nicaragua, Peru; Asia - Cambodia, India, Indonesia, Japan, Laos; Maldives, Mongolia, Nepal, Philippines, Sri Lanka, Thailand, Vietnam; Europe - Armenia, Bosnia-Herzegovina, Croatia, Estonia, Finland, France, Georgia, Greece, Greenland, Iceland, Italy, Latvia, Norway, Portugal, Russia, Scotland, Slovenia, Spain, Sweden, Turkey; Africa - Ethiopia, Kenya, Lesotho, Morocco, Rwanda, South Africa, Tanzania, Zambia; Australasia - Australia, New Zealand DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 15 2.4 CBT Products in Africa worth US$5 billion with 4 million participants, and among international adventure tour operators, more than half (55%) 2.4.1 Established and Emerging Destinations offered volunteer trips within their portfolio of itineraries. There is very limited data on CBT in established and emerging Nature-based and Conservation-driven Tourism African destinations. CBT Experiences with Homestay Accommodation are present in Morocco and South Africa, Safari-based CBT is a distinct niche within the broader CBT Africa’s two leading countries for inbound visitor arrivals, segment that is typically African. Conservation continues to be although numbers are far fewer than in Asia or the Americas. a pressing issue, and tourism has become an important way to support long-term sustainability of African wildlife and its CBT products are more limited in developing tourism habitats while providing economic opportunities for local destinations such as Ethiopia, Senegal, and Zambia. Where people. Communities who live within reserves and wildlife there is less alternative visitor accommodation available, CBT products are emerging. areas work closely with local organizations (either commercial operators or NGOs) to manage the environment sustainably Recent research conducted to identify the CBT products offered (habitats and wildlife) through tourism (full-service lodges, in Ethiopia, Senegal, and Zambia by European tour operators, game drives, and other tourism activities), and the communities showed that homestay, village or camping accommodation benefit directly from tourism income in a multitude of ways that was used most frequently in Zambia (accounting for around include economic, employment, training, and empowerment. 40% of the nights offered on tours). This number was more than double the amount used in Senegal (19%) and Ethiopia There are a range of safari-based CBT products in East and (15%). However, the accommodation offered in Zambia Southern Africa, and countries like Botswana, Tanzania involved limited interaction with local communities, and and Zimbabwe offer a variety of ‘high-value, low-density’ Ethiopia offered the highest proportion of immersive CBT (HVLD) tourism products that have a direct benefit to local experiences.10 communities. HVLD tourism, as a formula, is being increasingly adopted in other safari regions, with the emphasis on benefits 2.4.2 Differentiation of CBT in Africa to local communities. This conservation-driven tourism gives Based on Acorn’s research, the market for CBT in Africa is Africa a competitive edge. largely driven by the volunteer and conservation sectors, and CBT Volunteering Adventures account for more than half of 2.4.3 Lack of Awareness all CBT on the continent (53.6%). There is low awareness of CBT in Africa, particularly Short CBT CBT Volunteering Adventures Experiences with or without Accommodation (Homestays). The current market is largely based around CBT Volunteer The CBT experiences available in Asia and Europe are well- Adventures which encompasses both volunteering and covered by travel influencers, prominent bloggers and digital internships. The sector is well established and has some content creators who play a key role in informing travel presence in the majority of African countries. In 2015, decisions today. Specialist CBT operators to Asia and Central Mintel estimated the global market for volunteering to be and South America feature a large range of CBT products. Acorn Tourism Consulting Ltd analysis 10 16 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES However, by contrast, CBT as a broader sector is largely undeveloped in Africa beyond CBT Volunteer Adventures, which are well established. An analysis of more than 500,000 English language travel blogs11 showed that there is virtually no coverage of CBT products in Africa by travel influencers. 2.5 Concluding Comments Although awareness of CBT in Africa is low, there is a range of CBT experiences on the continent beyond volunteering adventures, particularly in the fields of nature and conservation-based CBT in East and Southern Africa, and emerging destinations are playing an important role in growing supply and generating market demand. 11 Blogs published on www.blogilicious.com DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 17 3. Market Characteristics 3.1 Key Source Markets 3.3 Demographics of Adventure Tourists As shown in Section 2, the CBT niche segment is closely Mintel’s reports on travel in Africa (Adventure, Cross- aligned with the adventure tourism market, and consequently Continental, Driving Holidays, Safaris, Volunteering) provide the characteristics of this segment can be used to profile the detailed demographics of adventure visitors to the continent, CBT market. which is a useful guide to the demographics for CBT tourists. Europe and North America are the primary source markets Baby Boomers and the 65+ by volume for adventure tourism, and the top nations for Born between 1946 and 1964 (aged between 54 and 72 in adventure tourists include: 2018) Boomers have dominated the mainstream traveling • Europe - UK, Germany, France, Netherlands. Secondary population for decades. They are a wealthy and discerning countries include Scandinavia, Italy, and Belgium.12 group of travelers numbering around 71 million in the USA • North America - USA13 and Canada. and are choosing to remain active as they age and seek new • Adventure tourists also originate from Australia, New and authentic experiences. In an aging era, the world’s older Zealand, and South Africa. population is set to continue to outpace that of the younger population over the next 35 years. Credit card company Visa 3.2 Profile of Adventure Tourists estimates that by 2025, travelers over 65 will represent one out of every eight international departures, and this generation According to ATTA, 49% of adventure tourists are aged will continue to travel into their retirement as adventurous, between 41-60, with an average age of 47; a further 20% are wealthy tourists focused on adventure combined with aged between 20-39. Adventure tourists are slightly more comfort.14 Therefore, Boomers are a key target group for CBT likely to be female (51%) and many travel as couples (37%) and in Africa. in groups (26%). Solo travelers and families account for 18% and 19% respectively. Adventure tourists are generally well- Generation X educated and affluent. The world’s third-largest consumer group at around 66 Table 4: Profile of Adventure Tourists, 2018 million in the USA, Gen Xers (born between 1965 and 1980) wield considerable spending power, as they are still working 60% 49% 51% full-time and spend more money on travel compared with 50% their younger and older counterparts. Family life is very much 37% a priority for this group of consumers, and therefore budgets 40% 26% are tighter and travel patterns often line up with the school 30% 19% year. This group is another core group for CBT experiences. 20% 18% 10% Millennials 0% The Millennials, born between 1981 and 1996, are the Aged Female Travel as Travel in Family Solo world’s largest consumer group numbering around 2 billion 41-60 Couples Groups Groups Travelers worldwide, with 74 million in the US, according to the U.S. Source: Adventure Travel Trends Snapshot, March 2017; ATTA Census Bureau. Centre for the Promotion of Imports from Developing Countries CBI Ministry of Tourism Affairs, the Netherlands (2018) 12 What is the demand for tourism services in developing countries? Retrieved from https://www.cbi.eu/market-information/tourism/trade-statistics/ Adventure Travel Trade Association (2017). Adventure Travel Trends Snapshot, March 2017. 13 Visa (2016) ‘UK households set to spend £63.4 billion on international travel by 2025.’ Retrieved from https://www.visa.co.uk/newsroom/uk-households-set-to- 14 spend-ps63-4-billion-on-international-travel-by-2025-1450883?returnUrl=/newsroom/listing?tag=travel 18 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES Travel is deeply important to tech-savvy Millennials who are driven by experiences as an antidote to the frantic, busy pace of their lives. Deloitte estimates that by 2025, Millennials will comprise three-quarters of the global workforce.15 Driven by social networking, Millennials rely heavily on word-of-mouth in their decision-making processes and are driving the online travel market. According to Allied Market Research, the Millennial market is estimated to be worth US$1.1 billion by 2022, registering a CAGR of 11.1% between 2016 and 2022. They are a core target group for CBT, as travel is deeply important to tech-savvy Millennials who are driven by experiences as an antidote to the frantic, busy pace of their lives. As they place a premium on experiences, they seek value for money that extends beyond merely cheap travel. They look for something new when they travel: more adventurous, more local and more personal, demanding exhilarating activities to satisfy their quest for personal fulfilment and new experiences. Younger Millennials are likely to be the core consumer group for CBT Volunteering Adventures to Africa, particularly those who take a ‘Gap Year’ between school and university, or a break before employment, and have the time for a lengthier experience on the African continent. Analysis of the US population by consumer group shows how demographics will shift over time as the population ages and according to Pew Research, a US-based market research institute, Baby Boomers reached their peak in 1999 at 78.8 million. Millennials are forecast to peak in 2036 at 76.2 million and Gen Xers, currently at their peak of 66 million, are predicted to outnumber Boomers by 2028 when there will be 64.6 million Gen Xers and 63.7 million Boomers. 15 Deloitte (2014) Big demands and high expectations The Deloitte Millennial Survey Deloitte Millennial Survey. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/gx-dttl-2014-millennial-survey-report.pdf DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 19 Table 5: US Population by Consumer Group, 2016 to 2050 80 70 60 50 Millions 40 30 20 10 0 2016 2018 2028 (est) 2036 (est) 2050 (est) Silent Generation (aged 73-90) Baby Boomers (aged 54-72) Generation X (aged 38-53) Millennials (aged 22-37) Source: Fry, R (2018) Millennials projected to overtake Baby Boomers as America’s largest generation, March 2018; Pew Research Center 20 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 3.4 CBT Adventure Tourists • Key Motivation: Authenticity, but price is an issue; keen to ‘see how other people live’ and ‘give something back’. Global CBT adventure tourists share many of the characteristics • CBT: Key group for CBT Short Experiences without/ of a broader adventure tourist, but a key motivation is the ‘feel with Accommodation (Homestays); Holidays with a CBT good’ factor of an immersive cultural experience and ‘making Element. a difference’ to local lives. Consequently, CBT adventure tourists span the three major demographic groups of Baby • Trip Duration: 1-2 weeks. Boomers, Gen Xers, and Millennials, and can be categorized Time Rich/Cash Poor: Personal Fulfilment, Supporting further by their spending power and time to travel. Communities, Volunteering Time Rich/Cash Rich: Seeking a Unique Experience • Age: 18-30. • Age: 50+. • Demographic: Well-educated, budget for travel limited • Demographic: Largest traveling group on account of • Life Phase: Gap year students, taking a break between having time and money. They are well-educated, travel jobs, retired, traveling for Scientific, Academic, frequently, have a good budget for travel and often like Volunteering or Educational purposes: (S.A.V.E.) tourists. to combine authenticity with luxury. • Travel Style: Solo or with groups. • Life Phase: Empty nesters, moving into retirement or • Key Motivation: learn new things, personal development. retired. • CBT: Key group for CBT Volunteering Adventures. • Travel Style: Couples; may also travel in small groups. • Trip Duration: Any. • Key Motivation: Authenticity; prepared to pay for a unique experience; ‘trip of a lifetime’; affluent, therefore 3.5 CBT as Soft or Hard Adventurers pricing is not an issue. Adventure tourism is often segmented by the nature of • CBT: Key group for CBT Short Experiences without/ activity involved in an adventure trip according to ‘soft’ or with Accommodation (Homestays); Holidays with a CBT ‘hard’ adventure. Hard adventure requires a significant level Element. of fitness and skill, often demands specialist equipment and • Trip Duration: 2-4 weeks. can involve a high level of personal risk; examples include mountaineering, canyoning and high adrenaline sports such Cash Rich/Time Poor: Desire for Authenticity and to Give as paragliding. By contrast, soft adventure is less physically Back to the Community demanding and deemed low personal risk, such as hiking, bird • Age: 30-49. watching, and CBT. • Demographic: Well-educated, well-traveled. In full- Hard adventure is estimated to account only for 10-15% of time employment, work commitments mean disposable adventure travel and soft adventure, therefore dominates income is more limited. the adventure tourism market by a considerable margin on • Travel Style: Couples or family groups with young or account it is low risk and more accessible to travelers of all school-age children.16 fitness levels, and therefore attracts a larger customer base. 16 Families are a key target market for CBT globally but in Africa the market is more problematic on account of safety and health concerns. Nevertheless, there are opportunities to attract the family market in destinations where the two issues are perceived to be less important, for example South Africa. DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 21 Consequently, while both markets are growing strongly, the soft adventure market was forecast to grow by 17.8% between 2017 and 2023, according to Allied Market Research.17 With this knowledge and based on the level of interest in CBT, the CBT tourist can be further segmented by their interest in hard and soft adventure activities:18 • Hard CBT Adventure requires the ultimate authenticity, a genuine cultural experience and to live as locally as possible with no luxuries. They are likely to be driven by additional activities, such as mountaineering or long- distance trekking. • Soft CBT Adventure accounts for the largest group and the one with the most potential for growth. They also desire authenticity, but require relatively easy access to CBT product, comfort, cleanliness, and some facilities. Soft CBT Adventure is predominant amongst the Time Rich/Cash Rich consumer who are driven by the desire for a unique experience. 17 Doshi, Y & Das, D (2018). Global Adventure Tourism Market Opportunities and Forecasts 2017-2023; Allied Market Research. Retrieved from https://www.alliedmarketresearch.com/adventure-tourism-market Centre for the Promotion of Imports from Developing Countries CBI Ministry of 18 Foreign Affairs, the Netherlands (2018). What are the opportunities for community-based tourism from Europe? Retrieved from https://www.cbi. eu/market-information/tourism/community-based-tourism/community-based- tourism-europe/ 22 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 23 4. Traveling Characteristics 4.1 Travel Groups broader purpose than just CBT but include one or more CBT elements. Group composition includes couples, family groups, Research with tour operators revealed that typical travel and groups of friends. groups for CBT experiences are Fully Independent Tourists (FIT), small groups and S.A.V.E. travel groups. The profile and S.A.V.E. Travel Groups demographics of the types of CBT Adventure Tourists outlined This group is comprised of individuals that are traveling for in Section 3.4 above span each of the following three travel Scientific, Academic, Volunteering or Educational purposes, to groups: volunteer or undertake an internship for a set period. Group Fully Independent Tourists (FIT) composition includes individuals, but could also include corporate groups for team building, or groups of university or This group makes all their own travel arrangements and books other students taking part in activities as part of their courses. trips directly with local tour operators on the ground or with communities they found themselves. An authentic experience 4.2 Travel Experiences and Market is essential, and backpackers are common in this travel group. Segmentation Composition is either as individual travelers or in couples. The different types of CBT experiences appeal to different Small Groups market segments. In the Table below, the target travel groups This type of traveler commonly uses a specialist tour operator, have been segmented, breaking out Families and Couples as either booking a pre-organized trip off-the-shelf or tailor- subgroups of Small Groups, to indicate which CBT experience makes a trip around specific needs. A trip is likely to be for a is most likely to attract them. Table 6: CBT Experiences by Market Segment CBT Product Small Groups Of which, sub-groups: S.A.V.E. Families Couples CBT Experiences CBT Experiences with Accommodation Tour of Multi-CBT Experiences CBT Volunteering Adventures Source: Acorn Tourism Consulting Ltd 24 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES It is evident that the CBT Experiences product appeal to the broadest market and has the potential to drive the growth of CBT in Africa. 4.3 Duration of Trip Most trips with a CBT element last for one to two weeks as holiday patterns in the USA and Europe are generally established around holiday entitlement. American tourists have a shorter holiday entitlement, usually around 15 days a year, while Europeans are typically entitled to more annual holiday, around 25 days every year. However, with a large CBT customer base of retirees, tour operators report that trips with a CBT element that extend beyond 15 days are increasingly common. Those on a CBT Volunteering Adventure are usually less time- constrained, and trips can last from one or two weeks to several months or a year. DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 25 4.4 Mode of Transport and However, as a huge continent with limited intercontinental Multi-destination Travel airlift, traveling between countries can be lengthy, and crossing borders is often a time-consuming process, which For guided trips, tour operators typically arrange and facilitate can be a barrier to multi-destination travel. Nevertheless, it is the mode of transport for their clients. reasonably common to drive through two or more countries Independent (FIT) visitors make their own travel arrangements on a self-drive holiday, particularly between southern African (air, self-drive, public transport) and ease of access to a CBT countries of South Africa, Namibia, and Botswana. location will play its part in selection. If located on a well- In East Africa, the open-visa scheme introduced to encourage traveled route in the country such as the Garden Route in intra-African tourism visits between Kenya, Uganda and South Africa, or a published trekking route in Ethiopia’s Simien Rwanda has encouraged more cross-border arrivals between Mountains, or Mount Kilimanjaro in Tanzania, the visitor can all countries. Kenya’s Ministry of Tourism reported that, from choose between the type of available accommodation and 2015-2017, visitor arrivals from other nations had grown associated CBT experience they purchase. significantly, stimulated by the visa scheme. For example, However, when developing CBT experiences, careful thought arrivals from Uganda were up by 20.6% in 2017. about the time it takes to reach the communities from likely Other countries have adopted similar visa-free systems to starting points should be considered; around 4 hours is stimulate visitor arrivals, including Namibia, Ghana, Nigeria, considered the upper limits of traveling time, according to and Benin. The African Continental Passport was launched in tour operators. 2016 with the aim of enabling visa-free travel for all African citizens across the continent by 2020. Many operators offer multi-destination trips that span across African countries. An assessment of operators’ As travel between countries in Africa becomes easier, for both popular itineraries that include more than one country could regional and international visitors, the demand for a wider identify potentially suitable locations for CBT products. variety of accommodation can be expected to grow. 26 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES Many operators offer multi-destination trips that span across African countries. DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 27 5. Trip Practicalities: Planning and Booking 5.1 Travel Research and Planning Tour of Multi-CBT Experiences The Internet is a key research tool for CBT tourists who Inbound tour operators liaise directly with local ground are increasingly researching and planning their trips online, operators, destination management companies (DMCs) gathering information on and sharing their travel experiences and accommodation providers. Many operators providing using sites including: this type of holiday are aimed at the high-end, small-group market, and there are multiple operators in the USA, UK and • Peer-review sites, e.g. TripAdvisor; Europe, which cater to the adventure tourism market. • Influencer and travel blog sites; CBT Volunteering Adventures • Travel holiday portals, e.g. Responsible Travel, Lokal A range of specialist tour operators coordinate CBT Travel, Visit.org; and Volunteering Adventures for volunteers and/or interns, • Social Media platforms, e.g. Instagram, YouTube, making all necessary arrangements including travel, visas, Facebook. accommodation, and local transport. The market for tour operators is strong in the UK as the ‘gap year’ culture has 5.2 Booking CBT Products endured for many decades, and in 2013 the gap year market Tour operators report that the North American market is was estimated to be worth US$480 million annually.19 Globally more likely than the European market to use a tour operator there are many not-for-profit organizations that supply to plan and arrange the whole trip, and that CBT is typically volunteers every year to Africa, such as VSO and Frontier in only one element of a pre-booked trip. However, some clients the UK and the Peace Corps in the USA, as well as commercial are keen on booking their own CBT experience once in the operators including Gap360, The Leap and Gapforce. country, when they have the opportunity to find out for themselves what is available. CBT Experiences/CBT Experiences with Accommodation (Homestays) Independent travelers usually book this type of experience via a local operator on the ground that works directly with communities. There are also a number of online platforms for experiences such as Visit.org and Lokaltravel.com. For those on package holidays, the tour operator typically makes the arrangements; consequently, relationships between local ground operators and inbound operators are important. Mintel (2014). Volunteering in Sub-Saharan Africa, May 2014. 19 28 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 29 The quest for authentic experience is an increasingly important trend recognized by the tourist industry worldwide. 30 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 6. Expectations and Motivations 6.1 Travelling to Africa In addition to authenticity, the quality of the experience is paramount. Accommodation must be of a good standard, As one of the world’s most challenging destinations for travel, and a high level of cleanliness is essential, especially when Africa is a destination highly favored by the adventure traveler, it comes to food safety. All visitor types require this. no matter what the primary purpose of travel might be (CBT, Basic facilities are acceptable, but beds should have a mattress safari, multi-activity). As the market has grown and evolved, with bed linen and towels. It is acceptable for facilities to be tourists’ motivations for adventure travel have become more simple, such as a ‘hole in the ground’ toilet and a bucket of important and are now vital considerations for the tourism water for a shower. This level of basic living is considered part sector. The quest for authentic experience is an increasingly of the experience, and so long as it’s safe, clean and the food important trend recognized by the tourist industry worldwide, is safe for international visitors to consume, it contributes to regardless of destination or type of trip. the success of the experience. 6.2 Motivations of the CBT Tourist to Africa For those on high-end guided holidays, standards of accommodation and facilities need to be higher, such as Most, if not all, involvement in CBT activities in Africa are proper bathroom facilities and purpose-built accommodation motivated by the desire to enjoy an immersive, cultural or lodges, but the principles of authenticity and hands-on experience alongside the desire to help, knowing that the involvement remain the same. money spent on CBT will reach the community. Participants are also keen to ‘see how other people live’, knowing that their own lives are likely to be very different, but also to take part in activities in a hands-on way, not just be an observer. While CBT tourists are prepared to travel between 4-6 hours to visit a community for a CBT experience, particularly those seeking a truly authentic, ‘off the beaten track’ experience, product that is situated close to an existing tourist sight is likely to benefit from increased visitor interest. 6.3 Expectations from CBT Experiences Authenticity is key to the success of a CBT experience for all types of CBT visitors, which creates and fulfills the expectation that the visitor will have a one-of-a-kind experience, is the primary factor in choosing a CBT tourism product. For the visitor, feeling truly immersed into a different culture and believing that they are making a real difference is the essence of a successful CBT experience. Visitors also want to be assured that they are not disrupting community life, disturbing privacy, or offending local culture and customs.20 20 Acorn Tourism Consulting Ltd research DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 31 7. Expenditure, Price Issues and Length of Stay 7.1 Adventure Tourism Trips • Couples or Family groups with young or school age children. ATTA’s research with adventure tour operators reveals that adventure tourism is a lucrative sector attracting high-value • Key group for CBT Short Experiences without/with customers with an average spend per trip of US$3,000 and Accommodation (Homestays); Holidays with a CBT have an average trip length ranging on average from seven Element. days (Europe/North America/South America) to nine days • Likely Average Daily Spend: US$100-250. (Africa).21 Time Rich/Cash Poor - Personal Fulfilment, Supporting Adventure tourism is also proving profitable for destinations Communities and Volunteering with tour operators estimating that 65% of the per guest trip spend remains in the local region, further estimating a per • Millennials, typically at the start of the work careers guest spend of US$145 on local handicrafts or souvenirs. or embarking on a career break. Disposable income is limited, they seek a value product that extends beyond 7.2 Spending Characteristics of Market Segments merely cheap. As a sub-segment of adventure tourism, CBT tourists can be • S.A.V.E. or CBT Volunteer Adventures. relatively high-spend visitors although price sensitivity varies • Likely Average Daily Spend: up to US$100. between the different market segments and is driven by Bearing in mind how general behaviors differ across the perceived value. market segments outlined above, the research has uncovered Time Rich/Cash Rich - Seeking a Unique Experience that CBT tourists across all income brackets are often • As affluent Baby Boomers and Gen X’ers, this group have prepared to pay more for unusual and exclusive activities, a good budget for travel and are less sensitive to pricing. with some willing to spend a lot for extraordinary and remote They are prepared to pay more for a unique experience experiences, for example: and will be guided by the experience on offer, rather than • Annually 2,000 people take a trip to Transfrontier Parks the price. in the Kalahari and pay UK£500 per person per night for • Predominantly couples. May also travel in small groups a trip to a remote desert area, 720km from the nearest or with families. airport. • Key group for CBT Short Experiences without/with • Boomers are looking for an exceptional, unique trip and Accommodation (Homestays); Holidays with a CBT are prepared to pay for it, e.g. US$100-200 per night for Element; traveling for 2-4 weeks. an eco lodge that includes CBT activities; US$100 per day • Likely Average Daily Spend: US$250+. for CBT day trips based on Lokal Travel prices. Cash Rich/Time Poor - Desire for Authenticity and to Tour operators have stated that initially, upon inquiry, Give Back to the Community clients can be surprised at the relatively high prices of a CBT • Younger Gen Xers in full-time employment, often with experience. However, once the concept has been explained families and/or other commitments means they enjoy and clients understand the community receives a high less disposable income for travel. percentage, they are happy to pay. ATTA (2017). Adventure Travel Trends Snapshot 2017. 21 32 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 7.3 Pricing of CBT Product on the Market There are no standard pricing structures for CBT product; the table below gives an indication of the full and diverse range of product and prices currently on the market. Table 7: CBT Product and Pricing CBT Product Country Guide Price CBT Experiences Real City Tour (3.5 hours) South Africa UK£3.50 pp Traditional Cooking Class (2.5 hours) Rwanda US$23 pp Discovery Tour (2 hours) Malawi US$21 pp Adventure Tour (1 day) Tanzania US$437 pp CBT Experiences with Accommodation (Homestays) Rural Homestays in KwaZulu-Natal South Africa US$35-53 pppn Atlas Mountains Homestay Morocco UK£8-24 pppn Journey through Mountains of Tigray (3 nights) Ethiopia US$624 pppn Tours of Multi-CBT Experiences Tailormade Ethiopia Holiday (2 weeks) Ethiopia £2,483 Cultural Holiday in Ghana, Togo and Benin (2 weeks) West Africa £2,249 Tribal Lands of Cameroon (2 weeks) Cameroon £2,325 Omo Valley Cultural Holiday (2 weeks) Ethiopia £2,395 CBT Volunteering Adventures Wildlife Conservation Adventure (2 weeks) Madagascar £945 Orphanage Volunteer in Tanzania Tanzania £738 Zambia Eco-Construction (6 weeks) Zambia £1,749 Medical Internship (8 weeks) Ghana £1,879 Sources: Calabash; Lokal Travel; Visit.org; Responsible Travel; Tesfa Tours; Frontier; Gap360 Notes: CBT Volunteering Adventures prices exclude international flights. DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 33 Analysis of CBT product on the market reveals that: • Tours of Multi-CBT Experiences are the most expensive; consequently, the key markets are the Time Rich/Cash Rich consumers and to a more limited extent, Cash Rich/ Time Poor. • Short CBT Experiences with Accommodation offers good-value CBT product, but the lack of adequate availability shows that product is not currently meeting the needs of the Cash Rich/Time Poor segment. • CBT Volunteering Adventures offers the Time Rich/Cash Poor segment a good range of opportunities that fit within a variety of budgets. In conclusion, the development of more CBT Experiences with Accommodation represents a pivotal opportunity to attract the underserved Cash Rich/Time Poor segment. 7.4 Length of Stay and Duration of CBT Component Research with tour operators offering holidays to Africa uncovered some distinct trends with regard to length of stay of holiday trips to Africa and the duration of CBT elements. • 70-80% of leisure trips to Africa are for 7-14 days. • The remainder of trips, those between 1-6 nights and more than 15 nights, are broadly evenly spread by 20%. • The most popular CBT element is a half/full-day experience without accommodation. • While the sample size was small, the operators offered insight into current tourism experiences with CBT. It was noteworthy that the operators reported that around 50% of their clients requested CBT as part of the trip. Nevertheless, this figure should be treated with caution. Increasing the supply of good quality CBT experiences with homestay accommodation is likely to improve the take-up of CBT experiences that last longer than a few hours. 34 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 35 8. Recommendations for Product Development 8.1 Key Factors for Developing CBT Product Urban townships or communities located on the outskirts of cities and towns can have potential for product development Based on the research of tour operators and the existing CBT due to their gateway location, e.g. Cape Town, South Africa; products, the key criteria for establishing a successful CBT Kigali, Rwanda. Most inbound CBT visitors from Europe and product are: North America will arrive via major urban hubs, and some • A unique experience with an emphasis on cultural will stay a few days before heading out. This gives urban immersion. communities an opportunity to attract the CBT visitor to an experience they may not have considered. • Higher quality of accommodation. • Ensures security and safety. 8.3 Sustainability and Best Practice • Emphasis on cleanliness and health of international visitors Traditional communities, particularly those in more isolated • Ease of access and proximity to markets and other areas, are very sensitive. NGOs working with communities attractions. where CBT has been introduced, identify the potential to create • Economies of scale. community problems such as the undermining of community • A discernible and actual benefit to the community. values; jealousy between those who benefit directly and those that don’t; an influx of vices such as cigarettes, alcohol • Sustainability of the experience. and drugs; lack of respect for traditional hierarchies; and theft of valuables brought into the community by tourists (e.g. 8.2 Cultural Integrity cameras, iPads). Authenticity is the most important factor for visitors; therefore, Poorly conceived CBT development will not only have to meet market demand, it is essential that the CBT visitor has negative impacts on the community involved, but is also in an insight into daily life, unique cultures and the experience of danger of destroying the product that creates the market a different way of life through an overnight stay. Hands-on appeal. Establishing any CBT needs to be done in conjunction activities give a more immersive experience and help with a with local communities and be underpinned by internationally bonding experience (cooking, working with animals, harvesting, recognized sustainable best practice. enjoying communal meals, and handicraft-making). Consequently, communities that have distinctive tribal cultures 8.4 Standards that Meet Tourist Expectations often appeal most to tourists, as they offer an experience that To develop CBT Experiences with Accommodation, there is is the most different to the life of the CBT tourist, e.g. a need to understand the expectations of the international • Masai in Kenya and Tanzania. CBT tourist, in particular standards for accommodation where cleanliness and private toilet facilities are the absolute • Berber nomadic tribes in North Africa. minimum. There is a need for homestay accommodation to • Tribes of Southern Ethiopia. offer a reasonable level of comfort, and safety and cleanliness • San (Bushmen) of Southern Africa. is paramount. 36 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES The basic standards for accommodation are: • Trekking routes, e.g. Atlas Mountains, Morocco; Mount Kilimanjaro, Tanzania; Mount Meru, Kenya; Simien • Beds with bed linen. Mountains, Ethiopia. • Towels. • Cultural circuits, e.g. Northern Ethiopia; West Africa • Bathroom with toilet and lock. (Ghana; Sierra Leone; Liberia). • Food that is simple, locally produced and safe to consume. • Trekking gorillas and chimpanzees, e.g. Uganda, Rwanda, DRC. 8.5 Destinations, Location and Scale • Land-based adventure activities, e.g. Victoria Falls, Livingstone, Zambia; balloon safaris, Kenya and Tanzania; Currently, the most popular countries for CBT Experience with canoe (moroko) safaris, Botswana; Namibia (multiple high- Accommodation are known to be South Africa and Morocco, adrenaline adventures such as dune boarding). and there are multiple CBT Volunteer Adventure opportunities throughout the continent. There is some evidence to suggest • Water-based adventure activities, e.g. Lake Malawi, Malawi (water sports); Quirimbas Archipelago, Mozambique that several African countries have plans in the pipeline to (diving); Kenya (deep sea fishing). increase CBT and develop homestays. However, more detailed research will be needed to identify which countries are making Food tourism is one of the key trends across the world today, significant inroads into product development strategies for and culinary experiences can be effective ways to create an CBT. immersive cultural experience and drive revenues locally to farmers, cooks, and other suppliers. Consider culinary hotspots While an immersive community experience is the primary that might be suitable for developing a trail, e.g. wine production attraction, being close to a major attraction can act as a or coffee plantations in Ethiopia, and tea plantations in Kenya driver to the area, particularly for Short CBT Experiences with and Malawi. Accommodation (Homestays). Many such attractions are There are many CBT experiences in deprived urban areas such remote, and suitable accommodation that meets the needs as South African townships, which rely on CBT. However, of the CBT/adventure tourist is likely to increase the length of a rural location is important for CBT Experiences with stay. Accommodation (Homestays), as rural experiences offer good While there are some exceptions, newly establishing CBT potential for getting involved in community activities over a longer period of time. products are therefore strongly advised to orientate their offer towards an existing demand driver. This means the It is advisable to develop CBT products in an integrated way, development of the product should be seen in the context of with some scale. Much of the demand comes from groups, and the wider destination and its offer, recognizing that in most this is unlikely to change in the short-medium term. Groups will cases tourists will select the destination or location first, and need to be accommodated or provided for by enough products then consider CBT products within it. Some examples of and services to cater to them all in one place. The development established routes or tourism hubs are listed below. of a number of accommodation products, together with a range of services or experiences, allows for groups to stay, but also for • Safari routes, e.g. Northern Circuit, Tanzania. shared resources, shared learnings between entrepreneurs and • Conservation areas, e.g. Botswana, South Africa, Namibia. the development of a coherent brand identity around the offer. DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES 37 8.6 Pricing Consequently, successful CBT product development on the African continent will require careful attention in several key Pricing is a less sensitive issue than other tourism niches as areas, which are: CBT tourists are prepared to pay relatively high amounts for experiences and accommodation that they consider to be • CBT Experiences with Homestay Accommodation product authentic, and that will benefit the community. However, should be developed in reasonably close proximity to major transparency is essential combined with successful delivery of tourist sites (4-6 hours’ travel away, maximum) where the expected experience for the CBT visitor to believe they have cultural assets are strong and/or aligned to coincide with made a positive contribution. Comparisons with other product key tourist routes and circuits. on the market would be a useful exercise (see Section 7.3, Table • Food and cooking are important cultural trends globally, 4) to establish some broader pricing parameters by destination. and could be important growth drivers for both urban and Target markets, levels of service, cost of product and more, are rural CBT Experiences when executed properly. other pricing considerations. • CBT product supply should be appropriate to appeal to the 8.7 Conclusion three key markets outlined in Section 3.4 and consideration to the primary needs of these markets must be met, In Africa, CBT Experiences without accommodation are namely authenticity, comfort, cleanliness and safety. currently driving the market, and there is evidence to support the demand for increased authentic experiences. The high- The success of existing CBT product and the demand for yielding Cash Rich/Time Poor segment (which includes authentic experiences bodes well for the increase of CBT and families) is underserved in Africa, and there is an opportunity the associated benefits accruing to the communities. It is hoped to develop CBT products - especially more CBT Experiences this research goes some way towards filling a knowledge with Accommodation to try to capture more of this market. gap across the continent and can help guide future product This requires a shift in the types and standard of product that is development in Africa, particularly in light of the market access currently on the market. opportunities now afforded by digital platforms. A limitation of this research has been the absence of demand data from There is concern about the standard of homestay accommodation. CBT tourists are interested in homestay regional and domestic markets in Africa, which are believed to accommodation, but currently the standard of comfort, safety represent additional and markedly different market segments and particularly cleanliness, are too low for most CBT tourists. for CBT products. Potential future research into this area will Consequently, development of the sector demands a clear aim to analyze this gap. Questions and comments should be understanding of market expectations of authenticity and sent to tourism@worldbankgroup.org. quality, which underscore basic comfort and cleanliness. The lack of suitable homestay supply is not meeting current demand for ‘living cultural’ experiences in Africa, and tour operators concur there is a demand for CBT experiences in Africa - especially around food and gastronomy, but current supply is neither numerous enough nor of a high enough standard. To ensure the sustainability of the CBT experience and accommodation offer, the development of any CBT products will need to be done in close cooperation with the communities, using international best practice. 38 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES Email us at tourism@worldbankgroup.org. Engage with us on social media at #tourism4dev. © 2018 The World Bank Group 40 DEMAND ANALYSIS FOR TOURISM IN AFRICAN LOCAL COMMUNITIES