Investment Climate Advisory Services T Group World Bank Success Stories: PLANTING THE SEED FOR TOURISM GROWTH IN THE SOLOMON ISLANDS The Solomon Islands boasts spectacular dive sites, a World enhancing investment promotion marketing strategies, War Two heritage, and a unique Melanesian culture. Yet, streamlining the processes facing tourism investors, the country lags behind its Pacific island neighbours Fiji improving transport links, and strengthening training and and Vanuatu in attracting the investment dollars needed to quality standards in the industry. These areas were identi- build the facilities and services expected by overseas fied as impediments to tourism investors in a diagnostic tourists. report prepared by IFC in 2009. Prior to IFC’s report, no research had examined the barriers to tourism sector Boosting investment in tourism is now a priority for the growth, making it difficult for the government to initiate government, and, with IFC’s help, a Tourism Task Force has reform efforts. The strategic focus allows the Tourism Task been established. For the first time, tourism businesses Force participants to exchange ideas on the key topics, owners and government policy makers are coming together and, with IFC’s assistance, talk is steered towards specific with the goal of creating an investor-friendly environment reform measures that can meet the needs of both govern- for tourism entrepreneurs. ment and business. Increasing tourist numbers will not only put Solomon Since its launch, the Tourism Task Force has met regularly Islands on the tourist map, but will also help to reduce and members are strengthening their ties and relationships poverty in the small island nation by developing infrastruc- by working together. Barney Sivoro, who works for the ture and providing local jobs and opportunities for small- Solomon Islands’ Tourism Department, and serves as the and medium-size businesses to benefit from holiday Tourism Task Force’s Secretariat, says he is “very happy” makers visiting the Pacific island nation. with the progress of the forum so far. “I am particularly pleased with the level of commitment shown by the differ- BRINGING BUSINESS AND GOVERNMENT ent key stakeholders from the various government minis- TOGETHER TO CATALYSE REFORM tries and also from the private sector. This sort of coopera- tion has never been done in the past and it is pleasing to Launched in May 2010, the Tourism Task Force is focused note that members are starting to realise the different roles on improving the investment climate for tourism by they can play in helping the growth of the industry.” With the challenge of improving domestic transport a key priority for the Tourism Task Force, a subset transport working group has been cooperating with those preparing the National Transport Plan, a project led by the Asian Development Bank. Both sides have been working together to identify the tourism priorities for the transport plan, such as looking at which airstrips have to be upgraded, and making sure that the needs of the tourism sector are incor- porated into the plan. “Having market-ready products and services along with the required infrastructure is a priority because this will help increase visitor arrivals and yield.” Sivoro adds, “We need to Tourism infrastructure, Solomon Islands both create the demand, and be able to facilitate the travel.” Enabling public private dialogue is an Investment Climate Advisory Service of the World Bank Group in partnership with: LOOKING AHEAD Results IFC will play an advocacy role in engaging development partners to support certain priorities identified by the Tour- • Value of Solomon Islands tourism industry ism Task Force. Opportunities will be explored to link infra- expected to double from USD $14 million structure needs to donor projects in transport, and small to $30 million by 20191 business development priorities to rural livelihood initia- tives. • Annual visitor arrival total remains below 20,000 per year, compared to 90,000 in “The Tourism Task Force is a small seed now being planted Vanuatu and 114,000 in Papua New Guinea and it’s up to us to maintain it or expand it to become a (2008 figures)2 partnership model for the growth and development of tourism in the country,” says Sivoro. “In my view, the Task •Tourism Task Force established to address Force should be fully supported and become stronger and eleven key constraint areas effective as it is the only forum for public and private sector coordination and cooperation. The challenge will be in maintaining everyone’s enthusiasm, so it is important that • IFC will support Tourism Task Force plan what we are doing really has some impact and produces ning and encourage links between donor tangible results.” projects and tourism priorities 1 Source: World Travel and Tourism Council Tourism Satellite Accounts 2 Source: National Tourism Office Tourism attraction, National Museum of the Solomon Islands Contact: Jonathon Kirkby IFC Pacific Program Manager, Investment Climate Advisory Services Ph: +61 (2) 9235 6519 Fax: +61 (2) 9235 2533 Email: JKirkby@ifc.org