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«Abstract for trade information services ID=41656 2010 S-15.09 INC International Trade Centre (ITC) Inclusive Tourism: Linking the Handicraft Sector ...»

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TECHNICAL

PAPER

INCLUSIVE TOURISM

LINKING THE HANDICRAFT

SECTOR TO TOURISM MARKETS

INCLUSIVE TOURISM

LINKING THE HANDICRAFT

SECTOR TO TOURISM MARKETS

Inclusive Tourism: Linking the Handicraft Sector to Tourim Markets

Abstract

for trade information services ID=41656 2010 S-15.09 INC International Trade Centre (ITC) Inclusive Tourism: Linking the Handicraft Sector to Tourism Markets.

Geneva: ITC, 2010. xi, 41 pages (Technical paper) Doc. No. SC-10r-182.E Training module providing facilitators with the know-how to develop sustainable business linkages between handicraft producers and tourism markets presents a detailed analysis of the tourism-related

handicraft value chain; explains how to further develop a tourism-related handicraft value chain through:

vertical business linkages; producer groups and associations (horizontal business linkages); increasing producer competitiveness on product design, quality, timeliness and quantity; training producers on costing and pricing; improving sales promotion; and supporting government initiatives; includes case studies, and a bibliography.

Descriptors: Tourism and Travel Services, Poverty Reduction, Artisanal products, Value Chain, Case Studies.

For further information on this technical paper, contact Ms Marie-Claude Frauenrath (frauenrath@intracen.org) _____________________________________________________________________________________

English The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations.

ITC, Palais des Nations, 1211 Geneva 10, Switzerland (www.intracen.org) Views expressed in this paper are those of consultants and do not necessarily coincide with those of ITC, UN or WTO. The designations employed and the presentation of material in this paper do not imply the expression of any opinion whatsoever on the part of the International Trade Centre concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

Mention of firms, products and product brands does not imply the endorsement of ITC.

This technical paper has not been formally edited by the International Trade Centre.

Digital image on the cover: © ITC © International Trade Centre 2010, revised 2012 ITC encourages the reprinting and translation of its publications to achieve wider dissemination. Short extracts of this technical paper may be freely reproduced, with due acknowledgement of the source.

Permission should be requested for more extensive reproduction or translation. A copy of the reprinted or translated material should be sent to ITC.

ii

–  –  –

The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations. ITC's mission is to enable small business export success in developing and transition-economy countries, by providing, with partners, sustainable and inclusive development solutions to the private sector, trade support institutions and policymakers.

The Inclusive Tourism Programme was established to foster the tourism industry’s potential to contribute to development and poverty reduction. It aims to reduce the negative impact of tourism and instead enhance linkages between local vulnerable men and women living in and adjacent to tourism destinations and the tourism sector. The programme promotes interventions that create inclusive tourism business models, promoting stakeholder partnerships and the inclusion of local producers and service providers into tourism supply chains. It enables local producers and service providers to supply the required goods and services and provides buyers with the skills to develop sustainable partnerships with local producers. The programme assesses potential local supply capacity and facilitates access to markets, thus reducing the amount of products and services imported from external suppliers.

The Programme emerged from the Export-led Poverty Reduction Programme (EPRP) that was initiated in 2002 and has been implemented in 27 countries in three main sectors: agriculture, crafts, and tourism.

EPRP assisted vulnerable producer communities in developing countries in gaining access to international and tourist markets so as to increase pro-poor income, create jobs and contribute to improving livelihoods.

The potential value chains are numerous and relate to all the products and services that an international tourist may require while enjoying holidays. By matching labour-intensive products and services in demand with the capacities of poor communities, the Programme creates new job and income opportunities, develops a basis for the accumulation of capital and technology and provides the foundations for fostering other dimensions of economic and social development in the beneficiary communities.

Adopting a local approach to economic development, it works directly with the poor to integrate them into the tourism value chains. In this context it has a focus on ‘mainstreaming’, that is, to link poor communities to major tourism destinations in contrast to community-based tourism (CBT) that tend to deal with isolated rural communities which have little or no prior tourism development. Economies of scale indicate that such ‘mainstreaming’ has a greater capacity to reduce poverty than the pro poor tourism approach of much rural CBT development.





The Inclusive Tourism Opportunity Study Guidelines are used to guide counterparts and consultants to reveal suitable inclusive tourism project opportunities, using a value chain approach to identify linkages with tourism stakeholders and to integrate key sectors such as agriculture, crafts, artistic performance and services into the tourism value chain.

The Inclusive Tourism Training Modules are used in a train-the-trainer scheme at the implementation stage of projects to capacitate project stakeholders in the areas of agriculture, hospitality services and creative industries product development and linkages to the tourism industry as well as managing environmental impact.

This Core Training Module provides an introduction to the tourism sector, and how it can contribute to poverty reduction. It provides an overview of the potential involvement of local people and ways to expand the tourism supply chains, while recognising socially and environmentally sustainable practices.

SC-10r-182.E iii Inclusive Tourism: Linking the Handicraft Sector to Tourim Markets This Module on Handicraft Products indicates ways for handicraft producers in developing countries on how to become better integrated in the tourism value chain in order to increase their income, and to provide facilitators with the know-how to develop sustainable business linkages between handicraft producers and tourism markets.

The Opportunity Study, which will be undertaken in potential project areas, will determine where the training modules should be implemented, which of the modules (if not all) should be implemented, and to whom the training should be offered.

The Opportunity Study Guidelines and the training modules help facilitators in different project phases:

Project design Opportunity study guidelines

–  –  –

The target audience includes micro, small and medium-sized enterprises (MSME’s), producer groups, association representatives, governmental bodies, community institutions and non-governmental organizations (NGOs) and the tourism industry (tour operators, Hotels, Restaurants) who will find useful information for developing their businesses.

–  –  –

The Core Training Module provides an introduction to the tourism sector, and how it can contribute to poverty reduction. It provides an overview of the potential involvement of local people and ways to expand the tourism supply chains, while recognising socially and environmentally sustainable practices.

The Module on Agriculture uses international examples to provide a realistic account of what interventions and partnerships are possible between agro products and the tourism industry, including the challenges that both producers and buyers may face. The aim of the module is to provide farmers and fishermen with the tools they need to assess the viability of accessing tourism markets, and buyers with the skills to develop sustainable partnerships with local producers.

The Module on Environmental Management is a tool on how to manage tourism developments optimally in terms of the environment, especially in the context of climate change and global warming, with the need for governments, businesses, communities and people to ‘act locally while thinking globally’.

The Module on Handicraft Products indicates ways for handicraft producers in developing countries on how to become better integrated in the tourism value chain in order to increase their income, and to provide facilitators with the know-how to develop sustainable business linkages between handicraft producers and tourism markets.

The Module on Tourist Hospitality Management is a tool to train employees in the hospitality sector. It describes how the hospitality and catering industry operates optimally while fulfilling guest expectations and needs.

The Module on Artistic and Cultural Performance shows ways to develop local artistic and cultural talents as well as trade services in developing countries through the tourism value chain.

–  –  –

The International Trade Centre (ITC) wishes to acknowledge with deep gratitude the dedication of all contributors to this guide.

The present guide is the work of Alfons Eiligmann. Special thanks to Fabrice Leclercq and Marie-Claude Frauenrath for their overarching guidance and comments.

–  –  –

Briefly stating the goals and objective of the following segment. Pointing out the knowledge that should be obtained at the end of the session.

–  –  –

Providing key definitions and reference of issues.

Providing the “recipe” of concepts or instruments. Listing the different steps to be taken in the implementation of the concept.

Giving examples to illustrate statements and showing experiences, or introducing exercises for the practical application of subject.

Formulating a summary of the principal statements having been covered in a session in an effort to stress the most important facts in a checklist format.

–  –  –

MODULE OUTLINE

1. Aim of the handicraft module

The aim of the Inclusive Tourism handicraft module is:

To show ways how handicraft producers in developing countries can be better integrated in the tourism value chain in order to increase their income, and To provide facilitators with the know-how to develop sustainable business linkages between handicraft producers and tourism markets.

Poor people in developing countries often lack resources, skills and employment, which keeps them from reaching a family income above the poverty line. They have limited access to education and mostly rely on subsistence farming in rural areas or poorly-paid occasional jobs in urban centres. Handicraft production, based on traditional skills and with low investment requirements, is one of the few possibilities which poor people have to help them increase their income.

Handicraft production is an important area of job creation in the informal sector. Subsistence farmers gain additional income from household-related handicraft production and for the urban poor, the production of handicrafts is an alternative in an environment where employment opportunities are few. In Viet Nam, craftsmen are reported to generate an income which is on average 60% higher than the average income of the rural population (Ngo Duc Anh, 2005).

In countries attracting a large number of international visitors, the tourism sector offers many opportunities for poor people to sell handicrafts, as tourists spend significant amounts of money on souvenirs and other craft products. Tourism is growing, increasing from a mere 25 million international tourists in 1950 to 925 million in 2008. Forecasts predict that this figure will reach 1.4 billion tourists by 2020. Worldwide, travel and tourism is expected to grow at a level of 4.0% per year over the next ten years, creating an opportunity for every country in the world to be part of this process and to share the benefits (WTTC, 2009).

Key stakeholders involved in tourism and handicrafts can benefit from this training module in several ways:

–  –  –

Government representatives in developing countries should be interested because:

Tourism is a large and growing service sector, which generates foreign exchange;

Tourism can be used to benefit poor handicraft producers as the number of international tourists increase;

Strengthening the handicraft sector ensures that tourists choose to buy more locally produced handicraft items rather than imported products;

Handicraft production can help diversify the tourism product to include home-stays, cultural experiences and facilitate the promotion of responsible tourism principles;

Experience gained from pilot projects can be replicated by government organizations for large scale impact.

Development agencies and donors should be interested because:

Handicraft production is a labour intensive industry that can support a number of part-time and fulltime employees, both skilled and unskilled;

Supporting and mediating partnerships between tourism enterprises and handicraft producers is a valuable role for development partners;

Employment creation in rural areas reduces migration into cities.

Non-governmental organizations are often interested because:

NGOs can assist handicraft producers negotiate supply conditions with local shops;



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