IMT-GT Tourism Strategic Framework 2017–2036 and Action Plan 2017–2021 -MALAYSIA-THAILAND GROWTH TRIANGLE

IMT-GT Tourism Strategic Framework 2017–2036 and Action Plan 2017–2021 The views expressed in this publication are those of the author and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use.

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ADB encourages printing or copyright information exclusively for personal and noncommercial use with proper acknowledgment of ADB. Users are restricted from reselling, redistributing, or creating derivative words for commercial purposes without the express, written consent of ADB. Foreword iii

Contents

1 Introduction 1 2 Overview of the IMT-GT Tourism Sector 2 2.1 Biogeography 2 2.2 Market Connectivity 2 2.3 Market Demand and Supply 3 2.4 Product Lineup 4 2.5 Institutional Framework 5 2.6 Key Issues for Subregional Cooperation in Tourism 6 2.7 Potential Cross-Border Thematic Circuits and Routes 7 3 IMT-GT Tourism Strategic Framework 10 3.1 Rationale and Strategic Goals for Cooperation in Tourism 10 3.2 Strategic Directions and Programs for 2017–2021 10 3.2.1 Building Interconnectivity 11 3.2.2 Building Sustainability, Competiveness and Inclusiveness 12 3.2.3 Positioning the Subregion as a Single Destination 12 3.3 Key Results Indicators 13 4 Action Plan 2017–2021 15 4.1 Road Map for Implementation 15 4.2 Knowledge Dissemination Plan 16 4.3 Implementation Approach 22 4.4 Updating the Strategy and Action Plan 23 References 24

iii iv Foreword

Abbreviations

ADB Asian Development Bank AEC ASEAN Economic Community ASEAN Association of Southeast Asian Nations ATSP ASEAN Tourism Strategic Plan CAGR compound annual growth rate CBO community-based organization CIMT Centre for Indonesia-Malaysia-Thailand Subregional Cooperation CIQS customs, immigration, quarantine and security DMO destination management organization EA executing agency FDG focus group discussion GDP gross domestic product GMS Greater Mekong Subregion IA implementing agency IB implementation blueprint IMT-GT Indonesia-Malaysia-Thailand Growth Triangle ICT information and communication technology JBC Joint Business Council KPI key performance indicator MICE meetings, incentives, conferences, and events MRA mutual recognition agreement MSMEs micro, small and medium enterprises NGO nongovernment organization NTO national tourism organization PPP public-private partnership RORO roll-on/roll-off SASEC South Asia Subregional Economic Cooperation TA technical assistance UNEP United Nations Environment Program UNESCO United Nations Educational, Scientific and Cultural Organization UNWTO United Nations World Tourism Organization UVP unique value proposition WEF World Economic Forum WGT working group on tourism WTTC World Travel and Tourism Council WWF World Wildlife Fund

NOTE In this report, “$” refers to US dollars. iv 8 Implementation Blueprint 2012–2016 Foreword v

(iii) Banda Aceh–Medan–Pekanbaru–Palembang Economic Corridor (a road corridor running south to north through ); (iv) Melaka–Dumai Map Economic Corridorof IMT-GT (a maritime corridor linking Sumatra and Peninsular Malaysia); and (v) Ranong–Phuket–AcehEconomic Economic Corridor. Corridors

Figure 2. The Five IMT-GT Economic Corridors

o o 98 00'E Chumphon 104 00'E MYANMAR CHUMPHON Ranong INDONESIA-MALAYSIA-THAILAND RANONG GROWTH TRIANGLE A n d a m a n S e a Surat Thani PHANG NGA SURAT Nakhon Si Thammarat Phang Nga THANI NAKHON SI o THAILAND N o 8 00'N THAMMARAT 8 00'N PHUKET Phuket Krabi Phatthalung Ranong– Phuket– Aceh KRABI Trang PHATTALUNG Economic Corridor 0 50 100 150 200 250 TRANG Songkhla Pattani Kilometers SATUN SONGKHLA Straits of Malacca Satun PATTANI Economic Corridor NARATHIWAT Kuah Yala Narathiwat Langkawi Island Kangar Extended PERLIS YALA Kota Bahru Songkhla–Penang–Medan Alor Star KEDAH Economic Corridor George Town Kepala Batas Banda Aceh Sigli Penang Island Kuala Terengganu Bayan Lepas Lhokseumawe KELANTAN PENANG S t r a i t s o f M a l a c c a TERENGGANU S o u t h C h i n a S e a Langsa Ipoh NANGGROE PERAK ACEH DARUSSALAM PAHANG Belawan Medan Kuantan Banda Aceh--Medan-- Binjai Tebing Tinggi SELANGOR PENINSULAR Shah Alam Pekanbaru--Palembang MALAYSIA Economic Corridor KUALA LUMPUR NEGERI Kisaran Subang SEMBILAN Pematang Siantar Sepang Seremban Melaka--Dumai Simeulue Island Batu Berendam MELAKA Rantau Prapat Economic Corridor Melaka JOHOR NORTH Sibolga SUMATRA Senai Dumai Johor Bahru SINGAPORE Island Aek Kanopan Riau Islands Tanjung Pinang Pekanbaru RIAU ISLANDS

0o R I A U Lingga Islands 0o Rengat Pariaman Teluk Kuantan

Siberut Island WEST I N D O N E S I A SUMATRA Bangka Island Jambi J A M B I Pangkal Pinang BANGKA S U M A T R A BELITUNG IMT-GT Province/State Palembang Economic Corridor SOUTH SUMATRA National Capital Pagai Islands Provincial/State Capital Lahat City/Town Bengkulu o o 4 00'S Airport 4 00'S Baturaja National Road BENGKULU Other Road LAMPUNG J a v a Lampung Provincial/State Boundary S e a International Boundary Bandar Lampung Boundaries are not necessarily authoritative.

This map was produced by the cartography unit of the Asian Development Bank. The boundaries, colors, denominations, and any other information shown on this I N D I A N O C E A N map do not imply, on the part of the Asian Development Bank, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information.

98 o 00'E 104 o 00'E

IMT-GT 11-1106d AV Source: IMT-GT Indonesia-Malaysia-Thailand Growth Triangle Implementation Blueprint 2012–2016. Thisp. 8. map was produced by the Cartography unit of the Asian Development Bank (ADB). The boundaries, colors, denomination, and any other information shown on this map do not imply, on the part of ADB, any judgement on the legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information. v vi Map of IMT-GT Economic Corridors

IMT-GT Provinces and States Indonesia Malaysia Thailand Aceh Perlis Chumphon Kedah Ranong West Sumatra Penang (Pulau Pinang) Phang Nga Riau Perak Surat Thani Riau Islands Selangor Phuket Jambi Kelantan Nakhon Si Thammarat South Sumatra Negeri Sembilan Krabi Bengkulu Melaka Phatthalung Bangka-Belitung Trang Lampung Songkhla Satun Pattani Narathiwat Yala Source : https://www.adb.org/countries/subregional-programs/imt-gt Foreword vii

TheG Imt- t Tourism Sector Strategic Framework

IMT-GT Vision 2036: “To be an integrated, innovative, inclusive and sustainable subregion by 2036.”

IMT-GT Tourism Sector Goal: Sustainable, inclusive and competitive cross-border circuits and routes

1. Improving connectivity 2. Enhancing the sustainability, 3. Marketing the subregion as between key areas of the inclusiveness, and a single destination based on subregion to support thematic competitiveness of the thematic cross-border circuits/ cross-border tourism subregion as a destination routes and destinations circuits and routes

Strategies and Programs

1.1 Facilitating air connectivity 2.1 Developing and implementing 3.1 Preparing IMT-GT Tourism approvals, especially for IMT-GT IMT-GT tourism human resource Marketing Strategy and two-year air charter carriers development programs rolling promotion plan

1.2 Completing strategic 2.2 Adopting, expanding 3.2 Undertaking circuit/route transportation and ICT and implementing the ASEAN destination product improvement connectivity infrastructure Tourism & Competency Standards and diversification programs

3.3 Undertaking programs 2.3 Harmonizing the collection 1.3 Developing new air, land to increase community and analysis of tourism statistics and sea route connections engagement in tourism supply in the subregion chains in circuits

vii

Foreword 1 1 Introduction

The tourism sector has been identified, along with agriculture, agro-based industry and halal products, as a lead focus area whose growth and development will underpin the achievement of the vision of the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) as an integrated, innovative, inclusive and sustainable subregion by 2036, and as a key socio- economic pillar in the implementation of the ASEAN Economic Community. As noted in the Leaders’ Declaration on the adoption of IMT-GT Vision 2036, critical to enabling the integration and growth of the three lead sectors are appropriate initiatives in transportation and ICT connectivity, trade and investment facilitation, environment and human resource development, and education and cultural development.

The strategic framework and action plan for the integration and development of the tourism sector in the IMT-GT subregion between 2017 and 2021 has been based on the overall strategic framework set forth in the Leaders’ Declaration on the IMT-GT Vision 2036, the Implementation Blueprint 2017–2021, and national, provincial and ASEAN tourism strategic plans; and on surveys and consultations with public, private, and community stakeholders in the subregion.

The report first gives the background to the sector in terms of its resources, scope and development, past subregional cooperation efforts, the ASEAN and IMT-GT strategic context and programmatic implementation approach, key issues and constraints, and opportunities for developing a highly competitive, sustainable, inclusive and integrated tourism sector. The report then proposes the long-term goal for the tourism sector in the context of the overall vision for the IMT-GT, and goes on to identify the strategic directions and programs that should guide cooperation in tourism between the countries of the subregion. Next, the report identifies specific programs and related projects with timelines that should be implemented between 2017 and 2021. Finally, the report sets out the recommended implementation arrangements for the action plan, suggests relevant key performance indicators (KPIs), and outlines a knowledge dissemination plan to communicate the strategy and action plan to key stakeholders within and outside the subregion.

1 2 2 Foreword Overview of the IMT-GT Tourism Sector

2.1 Biogeography

The biogeographic area within which the IMT-GT is located encompasses parts of the Philippines, Borneo, Sumatra, Peninsular Malaysia and Southern Thailand. This area, which has some of the oldest and most biologically diverse rainforests and marine resources on the planet, is referred to by archeologists as Sundaland. Overlaying its landscape are ethnic tribal groups, the remnants of ancient civilizations influenced by Malay, Chinese, Hindu, and Buddhist culture, and in more recent times by Islamic and Christian culture. Its unique natural and cultural heritage has been recognized by UNESCO, which has listed five World Heritage Sites in the area, and by ASEAN, which lists seven ASEAN Heritage Parks. However, arguably its most important asset is its multiplicity of ethnic groups living in harmony with each other, and having a long history of trade and openness to visitors since ancient times. These and other factors add up to a substantial capacity for increased tourism, subject to the adoption of sustainable development and management practices. Key concerns affecting the area’s forests, national parks and marine resources include such extractive activities as wildlife poaching and trafficking, timber extraction, animal grazing, overfishing and overuse of key areas by tourism. Developing a coordinated approach across the subregion on these issues would help to ensure the long-term sustainability of its tourism sector. 2.2 Market Connectivity

The subregion is connected to the long- IMT-GT Subregional Air Interconnectivity haul markets of Europe, Middle East and the Americas, as well as to major regional markets in Southeast Asia, East Asia and South Asia, through global air hub gateways in Bangkok, Kuala Lumpur, Jakarta and Singapore. These in turn are connected to regional international airports in Penang, Langkawi, Medan, Batam, Aceh, Phuket, and Hat Yai. Air travel between regional international airports and domestic airport points in each IMT-GT area is provided by domestic carriers. By sea, the subregion is accessible from Singapore to Batam and Pulao Bintan, from Java, and from Peninsular Malaysia. By land, the Thailand and Malaysian components of

2 Overview of the IMT-GT Tourism Sector 3

the IMT-GT are accessible by dual- and four-carriageway roads from Singapore and Bangkok, while within Sumatra, road transport connects most of the main tourism points. By rail, the Thailand and Malaysian components of the subregion are accessible from Singapore and Bangkok. However, the inter-subregional connectivity necessary to provide new cross-border tourism activity and packaging opportunities remains incomplete. In particular, air connectivity between the Thailand and Indonesia areas of the subregion needs to be strengthened; the proposed roll-on/roll-off (RORO) link between Melaka and Dumai needs to be completed; overly restrictive and cumbersome approval requirements for small air charter operations between the secondary international airports of the subregion need to be modified; and a pro- active approach to air and sea route development taken.

2.3 Market Demand and Supply

As shown in Table 1, in 2015 it is estimated that the subregion attracted around 27.9 million international tourist guests in accommodation establishments, staying an average of 3 to 5 days (median of 4 days), with median spending of $97.50 per day; and 44.3 million domestic tourist guests in accommodation establishments, staying an average of 2 to 3 days (median of 2.5 days), and median spending of $40 per day.

Table 1. Comparison of Current vs Forecasted Tourism Arrivals in Accommodations (in millions)

Year 2015 Year 2021 % Growth p.a. to 2021 Country Foreign Domestic Foreign Domestic Foreign Domestic Indonesia 1.8 12.4 3.7 25.6 12.70 12.80 Malaysia 8.7 16.4 7.1 23.3 –2.54 6.00 Thailand 16.3 15.5 31.5 26.8 9.94 9.55 Total 27.9 44.3 42.3 75.7 7.16 9.32 Source: Based on IMT-GT Country Data with 2010–2015 trend line forecasts to 2021.

While domestic tourism is more evenly distributed within each area of the subregion, more than 70% of total international tourism is concentrated in seven destinations, namely Phuket and Krabi in Thailand; Penang, Langkawi, Selangor and Melaka in Malaysia; and Batam and Bintan in the Riau Islands in Indonesia. Finding ways to better distribute the income and employment generated by tourism in the subregion would help to achieve the inclusiveness objective of cooperation in tourism.

Supporting tourism flow are 9,696 registered hotel establishments (mostly in the 2- to 3-star category) with a capacity of 425,792 rooms, of which 98,386 rooms were in Sumatra, Indonesia; 126,832 rooms in Peninsular Malaysia; and 200,574 rooms in Southern Thailand.1 Data on employment per establishment and room for Indonesia and Thailand indicate that the subregion’s hotel sector employs around 511,000 people. It is noted that there is

1 Source: National Tourism Office Data on hotel establishments and room capacity. 4 IMT-GT Tourism Strategic Framework 2017–2036 and Action Plan 2017–2021

considerable variation in facility and service standards for similar facilities such as 3-star hotels within and between the areas of the subregion, and in hospitality staff skill levels, particularly in the key areas of food and beverage preparation and food and beverage service. Discussions with industry operators indicate that the quality of trained entry-level staff varies considerably, and that substantial investment is required to complete their training in-house; and that although most operators are aware of the need to adopt green standards in operation, few have implemented these. In addition to the accommodation establishments, there is also a large number of tourist transportation, tour operation, and guide services. State and provincial consultations and observation indicate that there is no common standard for these services within and between the three IMT-GT areas. Addressing these constraints will be essential to achieving sustainable, inclusive and competitive tourism in the subregion

Key growth markets for the subregion are:

• the more affluent cities of the IMT-GT countries themselves and Singapore, where there is interest in short break vacations (2 to 3 days) in: resorts and cities offering entertainment, restaurants and shopping; heritage sightseeing tours; opportunities for visiting friends and relatives; ecotourism adventures; cruises; health, wellness and medical treatment; meetings and events; and marine tourism; • the regional markets of East Asia, notably the People’s Republic of China, India in South Asia, and Australia in Oceania, where there is interest in longer one- or two-country experiences (5 to 7 days) focused on resort stays; sightseeing; marine activities; cruises; eco-tourism adventure; and visiting friends and relatives; and • the long-haul markets of Europe, the Middle East and the Americas, interested in multi-country resort stays; nature and cultural sightseeing; marine activities; cruises; eco-tourism adventure; health, wellness and medical treatment; attending meetings and events; and visiting friends and relatives. 2.4 Product Lineup

The current lineup of tourism products in the three country areas of the subregion is focused primarily on single country-based island, coastal and city resort experiences supported by day sightseeing trips, traditional nature and culture sightseeing, and limited ecotourism adventure, marine, cruise and medical tourism products. Moreover, two- and three-country cross-border tourism products are as yet quite limited. More attention needs to be given to diversifying the product offerings and creating greater product complementation between the countries, including: new, more interactive heritage-based sightseeing products; expanded health, wellness and medical tourism products; marine tourism products, particularly sailing, yachting, and marine sports; regular and specialized pocket cruise tourism; adventure and ecotourism in mountains and forests; and events tourism based on festivals, competitions, conferences and exhibitions linked to the natural and cultural heritage of the subregion.

Surveys among international tour operators working in the regional markets outside the IMT-GT countries, and those working in long haul markets, indicate that the IMT-GT Overview of the IMT-GT Tourism Sector 5

subregion has little, if any, recognition as a single destination, and is more likely to be associated with Southeast Asia. Developing a stronger level of market awareness of the subregion as a single destination within the ASEAN destination marketing framework will be essential in working towards the goal of sustainable, inclusive, and competitive tourism.

2.5 Institutional Framework

The institutional arrangements for the planning, development and promotion of tourism are quite well worked out within each area of the subregion, but are quite limited at the subregional level. Based on observations and consultations with provincial/state destination management organizations (DMOs), key concerns were: frequent staff turnover; limited budgets and low priority for subregional cooperation; lack of skills in key areas such as tourism demand and supply data collection, research, tourism policy, planning, and promotion; collaborating with other agencies on the environment, sanitation, infrastructure, safety and security; and limited collaboration with the private sector. There is considerable variation in DMO capability between the three areas of the subregion across the range of DMO skills. Raising current skill levels and collaboration practices benchmarked to best practice cases would help to achieve a more coordinated approach to subregional cooperation in tourism.

With recovery in the overall economic situation, it is likely that international and domestic tourism growth will average between 5% and 8% per annum through to 2021.

2.6 Key Issues for Subregional Cooperation in Tourism

The main strengths, weaknesses, opportunities and threats for subregional cooperation to achieve a sustainable, inclusive and competitive pattern of tourism are summarized in Table 2.

A review and evaluation of the subregion’s tourism sector and its prospects, given its competitive strengths, weaknesses, opportunities and threats, suggest that developing a more sustainable, inclusive and competitive tourism in the subregion needs to address the following issues:

• the absence of a strategic framework to inform and guide cooperation in the tourism sector—as well as the related absence of a coherent cross-border spatial framework for cooperation in tourism; • a limited range of new products outside the usual island, coastal and city resort and sightseeing offerings, and the need to diversify this range if the subregion is to attract longer-staying and higher-spending markets; • incomplete transport connectivity between key areas of the subregion, notably between Sumatra, Indonesia and major tourism centers in Southern Thailand, and lack of RORO connections between Malaysia and Indonesia; • limited market awareness of the subregion as a single destination; 6 IMT-GT Tourism Strategic Framework 2017–2036 and Action Plan 2017–2021

Table 2. Key Tourism Sector Strengths, Weaknesses, Opportunities and Threats

Key Weaknesses: Key Strengths: • Significant imbalances in distribution of • Globally attractive tourism resources and tourism. destinations, with large, well-established • Incomplete inter-IMT-GT connectivity. markets and ample capacity for expansion. • Narrow product line, lack of market • Well-developed linkages to national, awareness, and lack of a marketing strategy regional and global markets. to generate awareness. • Large, young, increasingly well-educated • Limited participation by provincial/state HR base. and local governments, the private sector • Presence of a strong and vibrant private and local communities. sector. • Inconsistent standards for facilities, • Supporting IMT-GT and ASEAN Economic tourism human resource services, and Community framework, and agreements. safety and security. • Supporting national, provincial, and state • Cumbersome and uncoordinated governments. transportation and cross-border access regulatory policies. • Inadequate destination infrastructure outside the main tourist destinations and cities. • Absence of a strategic framework to guide tourism cooperation initiatives.

Key Opportunities: Key Threats: • Tap the large international and domestic • Lack of compliance with environmental markets in the three IMT-GT countries. controls and protection of natural and • Complete subregional air and sea cultural heritage, resulting in loss of connectivity. rainforest and rainforest biodiversity. • Facilitate cross-border movements, • Annual smoke haze due to inability to reign enhance human resources, and adopt in rainforest clearing and burning. common standards under the ASEAN and • Natural disasters: IMT-GT cooperation frameworks. –– volcanic eruptions, earthquakes, and • Integrate tourism with agriculture, trade tsunamis; and investment, and halal products and –– climate change-induced storm surges services. and flooding; and • Provide a coherent spatial framework –– insect-borne diseases such as malaria for positioning the subregion as a single and dengue. destination in ASEAN. • Political instability and terrorism. • Move to a more evenly distributed, • Regional geopolitical conflict. inclusive, diversified and high-yield pattern of tourism, emphasizing quality. • Ensure that key threats are mitigated through adoption of appropriate design and safety standards, cessation of rainforest clearing and burning, and adopting “smart- security systems.” • Prepare long-term strategic framework and rolling five-year action plans to guide cooperation.

Source: The SWOT was prepared by ADB consultant Ludwig Rieder. Overview of the IMT-GT Tourism Sector 7

• weak tourism human resource capacities in the destination management organizations in provinces and states, in tour operation, hospitality and guiding skills, and in skills for local communities to engage more effectively in the tourism supply chain; • inconsistent facility quality and poor service standards in the tourist facilities and services outside the major resort and city destinations and for branded hotel and resort properties; • unsustainable forest clearing and burning, and cross-border tourism projects; and • growing safety and security risks for tourists.

These issues will need to be at the core of the cooperation agenda in the implementation blueprint for 2017–2021 and beyond. In particular, a coherent spatial framework is essential to the sustainable, inclusive, and competitive development of subregional tourism.

2.7 Potential Cross-Border Thematic Circuits and Routes

A logical spatial framework for developing cross-border tourism is essential, in order to guide IMT-GT working groups and key stakeholders in designing interventions for addressing strategic issues. Since the appropriate spatial framework for subregional cooperation in tourism is cross-border tourism, this framework would comprise thematic cross-border circuits and routes, and their destinations, attractions and products. The selection of appropriate thematic cross-border circuits and routes should be based on the following criteria:

• already connected, or easy to connect to air, road, and sea gateways in the subregion; • clusters of diverse activity themes in and around the gateways, such as adventure; sightseeing; medical health and wellness; meetings, incentives, conferences, and events (MICE); cruises; marine sports such as yachting, scuba, snorkeling, free diving and surfing; and leisure resort experiences; • sufficient environmental, social and economic capacity, and capacity to manage and mitigate adverse impacts; • complementarity of tourism resources, facilities and services in the main destination centers that can be packaged under single themes; and • strong market and private sector interest.

Based on a consideration of these factors, and subject to validation by market research, three thematic circuits are proposed: a marine circuit, a heritage circuit, and an ecotourism and adventure circuit.

Marine Circuit connecting the main tourism centers of Phuket-Krabi-Langkawi-Penang- Sabang-Phuket. This circuit would connect destinations in the vicinity of the main centers such as the marine national parks of Ko Tarutao Marine National Park ASEAN Heritage Park in Satun, the Ao Phang-Nga Marine National Park and Similan Marine National Park in Phang Nga Province and related centers, as well as the islands surrounding Phuket, Krabi, 8 IMT-GT Tourism Strategic Framework 2017–2036 and Action Plan 2017–2021

Langkawi, and Aceh. Potential existing and new product/activities that can be promoted in this circuit are:

• cruises (main and smaller, specialized pocket cruises); • yacht sailing and island-hopping circuits and routes; • marine sports such as diving, surfing (wave, wind and kiteboarding), sailing, marine life encounters; and • experiencing the culture of traditional fisher folk communities.

These could be packaged as one-, two- or three-country programs depending upon the length of stay of the target visitor. The circuit could be highlighted by promoting existing and new events such as marine festivals, yacht regattas, surfing competitions, deep diving competitions, and the hosting of national and international marine conferences and exhibitions, etc.

Cultural Heritage Circuit connecting Southern Thailand with the Malaysian Peninsula, and across to Indonesia by air or sea in the vicinity of Melaka. This three-country circuit would connect destinations in Songkhla, Pattani, and Nakhon Si Thammarat in Southern Thailand with Kedah, Perak, Penang, and Melaka down the Utara Corridor, or via Kelantan to Mersing and Melaka down the East Coast Economic Corridor, and Medan, Pekanbaru, Jambi, and Palembang, Samudera, among others in Sumatra, Indonesia. Potential existing and new product/activities that can be promoted in this route are:

• participating in traditional cultural events, music and cultural festivals; • exploring pre-historic and ancient historic sites such as the UNESCO-listed Archeological Heritage Site of the Lenggong Valley and the Srivijay monuments and relicts and volunteering at archaeological site digs; • experiencing local culture through home stays; • shopping for art and crafts, and appreciating the cuisine of the subregion; and • following in the route of famous historic figures such as Zheng He and revered Monk Luang Pu Tuad, visiting the old Malay, Chinese, Arab trader and colonial towns and ports, and experiencing the Islamic heritage of the subregion.

A well-researched proposal for the development of a “Livable Old Towns” cross-border circuit/routes has already been prepared by Thailand, and is ready for implementation. The heritage circuit could be highlighted by promoting existing and new events such as music and cultural festivals (cuisine, art and craft, dance, etc.), hosting international conferences and exhibitions on culture, and creating iconic museums.

Ecotourism Adventure Circuit based on exploring and experiencing the oldest forest flora and fauna on earth by connecting the major national parks and forests of Indonesia (such as the iconic UNESCO-listed “Tropical Rainforest Heritage of Sumatra”), with the major national parks and forests in Malaysia such as Belum-Temengor Forest Complex and Ulu Muda Forest Reserve, both well within reach of Thailand’s national parks and forests, as well as Taman Negara Pahang National Park, and the UNESCO-listed Langkawi Geopark; and the national parks and forests of Thailand such as Ko Tarutao Marine National Park,an ASEAN Heritage Park in Satun, Nam Tok Than To Forest Park, Banglang National Park, Si-Po Waterfall National Park and Khao Luang National Park, among others. Potential existing and new product/activities include: Overview of the IMT-GT Tourism Sector 9

• Trekking, mountain biking, and “climbing above and caving below” adventures in protected areas such as national parks, forests and geo-parks; • River and sea kayaking, tubing, and rafting; • One-, two- and three-country short and extended bicycle tours; • immersion in forest and coastal communities based on home stays, camping and eco- lodges; and • wildlife encounters and conservation volunteering.

The circuit could be highlighted by creating a transnational park system recognized by ASEAN and international conservation organizations such as Conservation International (CI) and the World Wildlife Fund (WWF); creating trans-border national parks and forests between Malaysia and Thailand for joint management; promoting existing and new events and festivals related to conservation, forest and marine themes; and hosting international conferences and exhibitions in the main centers near the parks.

The above spatial framework of thematic circuits and routes provides a platform for addressing connectivity, product development, market awareness, quality, human resources development, community participation, project sustainability, and safety and security issues arising from the analysis of strengths, weaknesses, opportunities and threats. 10 3 Foreword IMT-GT Tourism Strategic Framework

3.1 Rationale and Strategic Goals for Cooperation in Tourism

The overall rationale for cooperation in tourism among the countries of the subregion rests on the premise that the tourism sector is one of the few sectors of the subregional economy with the capacity for sustainable and inclusive development; and is why it has been selected as one of the three drivers of economic growth. In this context the IMT-GT Vision 2036 goal for tourism is: “Sustainable, Inclusive and Competitive Cross-Border Tourism.” The strategies for achieving this goal are to:

• diversify and enhance the IMT-GT tourism destinations and products; • improve inter- and intra-IMT-GT area connectivity and travel facilitation; • intensify marketing of the subregion as a single destination; • undertake capacity building and human resources development; • raising the quality of the subregion’s tourist destinations, facilities and services; • developing sustainable, inclusive and competitive tourism circuits/routes and their destinations and products; and • ensuring the safety and security of tourists.

Given the proposed cross-border thematic circuits/routes framework, the IB 2017–2021 should prioritize putting in place the enabling framework for “sustainable, inclusive and competitive thematic cross border tourism” by:

• building the necessary platform for greater subregional interconnectivity and facilitation of thematic cross-border travel; • building the necessary platform for sustainability, inclusiveness and competitiveness in the thematic cross-border circuits; and • promoting the subregion as a single destination offering a diverse set of highly attractive cross-border thematic circuits/routes products, to the IMT-GT national, ASEAN regional, and long haul markets.

3.2 Strategic Directions and Programs for 2017–2021

In the context of the Vision 2036 goal for the tourism sector: “Sustainable, Inclusive and Competitive Cross-Border Tourism”, the tourism initiatives under the vision of IB 2017–2021 can be logically clustered into three strategic directions:

10 IMT-GT Tourism Strategic Framework 11

• Improving connectivity between strategic areas of the subregion to support the development and packaging of selected thematic cross-border tourism circuit development; • Enhancing the sustainability, inclusiveness and competitiveness of selected thematic cross-border circuits; and • Providing the platform for marketing the subregion as a single destination based on developing, packaging, and promoting selected thematic cross-border circuits/ routes and destinations.

The main programs for undertaking these strategic objectives for IB 2017–2021 are set out below.

3.2.1 Building Interconnectivity

To build the necessary platform for interconnectivity and competitiveness, consideration should be given to undertaking the following strategic interconnectivity and travel facilitation projects:

(a) the Phuket to Sabang air and sea route in the IMT-GT Ranong-Phuket- Aceh Economic Corridor and related air and seaport; customs, immigration, quarantine, and security (CIQS); and cruise and marine center improvements and development; (b) the Melaka to Dumai RORO route in the Dumai-Melaka Economic Corridor, requiring the development of a RORO facility on the Melaka side, together with related CIQS facilities and services; (c) move to facilitate small air charter operations between the international rated airports of the subregion to initiate interconnectivity for small groups travelling for medical, adventure, and nature and culture sightseeing activities, by removing unnecessary restrictions, simplifying application procedures and practices, and reducing application processing times to make it feasible for tour operators and carriers to work out specialized programs and packages; (d) further explore the development of new air routes and, where necessary, infrastructure improvements and CIQS facilities between Langkawi, Phuket, Hat Yai, Songkhla, Medan, Bintan, Pekanbaru, Batam, Jambi, Palembang, Bukkittingi, Padang and Bengkulu, and to major destination airports at Silangit near Lake Toba, Gunung Sitoli on Pulao Nias, and Sinabang on Pulau Simeulue; (e) prioritize the completion of the Tebingtinggi-Kuala Tanjung and Tebingtinggi- Parapat Toll Route on the trans-Sumatra Economic Corridor; and (f ) strengthening strategic destination ICT infrastructure, and e-Tourism by increasing the number of fast WIFI spots, installation of sensors to improve tourist security and emergency response at key points, and number of mobile applications to facilitate visitor activities.

Taken together, these will open up new one-, two- and three-country cross-border thematic circuits/routes and related product development opportunities based on one or more combinations of resort, marine, cultural heritage, ecotourism, adventure, cruise, MICE, health and wellness and medical tourism activities. 12 IMT-GT Tourism Strategic Framework 2017–2036 and Action Plan 2017–2021

3.2.2 Building Sustainability, Competiveness and Inclusiveness

Increasing the competitiveness, as well as the sustainability and inclusiveness of the subregion’s tourism destinations, facilities and services in selected cross-border thematic circuits and routes by:

• adopting and implementing in these destinations the ASEAN Tourism Standards for green hotels, food and beverage services, public restrooms, home stays, ecotourism, heritage tourism, and community-based tourism; • developing and implementing a new standard for “halal destinations” with possible adoption as an ASEAN standard; • adopting and implementing the ASEAN Tourism Competency and Curriculum Standards program under a mutual recognition agreement (MRA); • developing and implementing a specialized capacity building program for enhancing: οο sustainable and inclusive tourism planning, development, marketing, and destination management (including safety and security) capabilities of local, provincial/state, regional and national government destination management organizations and officials; οο the capacities of local communities to participate directly and indirectly in the tourism supply chain at the local, provincial/state, regional, national and international levels; and οο hospitality and service skills of existing tourism enterprise personnel; and • harmonizing the collection and analysis of tourism statistics within the destinations of the selected cross-border thematic circuits and routes.

These initiatives will help to raise the sustainability of tourist facility development and operation in the thematic cross-border circuits and routes; increase the competitiveness of their tourist facilities and services; enhance the capacity of provincial and state DMOs to manage the development of sustainable, inclusive and competitive tourism in their areas; and enhance the capacity of local communities to engage in the tourism supply chain.

3.2.3 Positioning the Subregion as a Single Destination

To market the subregion as a single destination based on developing, packaging, and promoting selected thematic cross-border circuits/routes and destinations, priority will need to be given to:

Preparing an overall marketing strategy to 2021 and a two-year rolling marketing action plan and program in line with that of the ASEAN Tourism Strategic Plan. This plan should include:

• market research by the IMT-GT countries among tour operators and carriers in key markets2 to test thematic cross-border circuit proposals such as the “Livable Old Towns” or geo-park adventures, competing products, market product/activity preferences, length of stay and competitive pricing points, and likely level of visitors in the future; • in light of the results of the market research, preparation of a market positioning and branding strategy for the subregion’s thematic cross-border circuits and their

2 Key markets include the IMT-GT countries, other ASEAN countries, other Asia and Pacific countries, and long haul markets in the Middle East, Europe and the Americas. IMT-GT Tourism Strategic Framework 13

destinations and products under a single destination concept, including a monitoring and evaluation system and possible incorporation into the ASEAN Tourism Marketing Strategy and Action Plan; and • proposed implementing arrangements for the financing, coordination, supervision, and monitoring and evaluation aspects of the plan.

Subject to market research confirmation of proposed thematic cross-border circuits, improving, diversifying and packaging the selected circuits by expanding and enhancing clusters of attractions around the key gateways/destinations; and including projects to link surrounding communities to the tourism supply chain of the cluster and related circuit/s. This will require a study that would:

• identify the target destinations within the selected thematic circuits, their cluster of existing destinations, and opportunities for diversifying and enhancing their offered attractions; • assess the structure and value of the existing tourism supply chain in the target destinations and identify areas of supply where local communities and local producers could participate; • identify community issues and concerns in relation to tourism and the ways they may engage in it; and • design a tourism supply chain community participation program setting out: οο the type and scale of participation; οο awareness and capacity building needs; οο credit and mentoring support program; and οο a monitoring and evaluation framework.

An example of this is already available in the Thailand proposal for the “Livable Old Towns” circuit or route and again in the MICE and medical tourism value chain.3 Here there are opportunities to connect local communities to the transportation, organic food production, art and craft production, and facility operations and procedures, as well as nature and culture sightseeing activity components of the supply chain at the destination.

Based on achievements and lessons learned from IB 2012–2016, the subsequent IBs would focus on completing what remains to be done, or adjusting the strategic approach, and expanding the number of thematic circuit/route offerings. 3.3 Key Results Indicators

In the context of the IMT-GT Vision 2036 tourism component, and the proposed scope, goal, objectives, and strategies that could be pursued in IMT-GT IB 2017–2021, some reasonable targets for 2021 are set out below:

1. Growth and dispersion of international tourism receipts, as indicated by: 1.1 Number of international tourist arrivals in accommodation establishments increases by 6.6% annually.

3 This includes: foreign visitors in need of healthcare à hospital agent or internet à medical facilitator à airport pickup, transport, patient admittance à planned hospital procedure, accommodation and services à hospital care management, intervention, operation à tourism package while recovering à transport and airport drop à post medical treatment at home base 14 IMT-GT Tourism Strategic Framework 2017–2036 and Action Plan 2017–2021

1.2 Secondary destinations share of international tourist arrivals in accommodation establishments increases from 20% to 27% (+7%). 1.3 Average length of stay of international tourist arrivals increases from 4 to 4.25 days. 1.4 International tourist expenditure per day (based on Thailand data) increases by $5 to $105 at 2015 prices. 2. Increase employment in the tourism sector as indicated by: 2.1 Incremental jobs sustained annually in the accommodation subsector increases by 151,700 jobs to 662,700. 3. IMT-GT is more environmentally, socially and economically responsible as indicated by: 3.1 Fifty percent of hotels, tour operations, and destinations are certified as sustainable (from zero). 3.2 Local suppliers of goods and services to hotels increase from an estimated 30% to 50%.

It should be noted that given that the IB 2017–2021 will be mostly about building the platform for interconnectivity, competitiveness, sustainability and inclusive development, even with a substantially ramped-up single destination promotion program, the overall volume, length of stay and expenditure results could not be expected to increase that significantly over what they are today. While some modest increases in the volume, length of stay and expenditure, have been set by 2021, more important is the distribution of this expenditure away from the seven major destinations. Given the huge size of the employment generated in the subregion, every 1% shift in the share of tourism between the seven top destinations and the rest could have a significant impact on the distribution of employment and entrepreneurial opportunities outside the top seven provincial/state destinations. Foreword4 15 Action Plan 2017–2021

4.1 Road Map for Implementation

Based on the suggested activities identified in the three core strategic programs, the action plan comprises four core projects and related subprojects and activities:

A project to improve tourism air and sea interconnectivity, information and communication technology (ICT) connectivity, and travel facilitation in the IMT-GT subregion based on implementing four subprojects:

• infrastructure and regulatory initiatives to enable small air charter and scheduled services between Sabang and Phuket and other points in Thailand, and Langkawi and Penang in Malaysia, and completing plans to develop a RORO service between Melaka and Dumai; • simplifying air charter approval requirements to enable small IMT-GT air charter operators to operate services between the international airports of the subregion and creating a third-level IMT-GT international airport designation at strategic domestic airports, based on provision of mobile CIQS facilities; • participating in regional airline route conferences and hosting an annual IMT-GT route conference; and • designing and implementing projects to improve ICT connectivity within the priority destinations in the thematic cross-border circuits and routes of the subregion.

A project designed to raise the competitiveness, sustainability and inclusiveness of the tourism sector in selected thematic cross-border circuits/routes based on implementing four subprojects:

• adopting the ASEAN Tourism Standards and developing and implementing a new Halal Destination Standard; • Adopting and implementing the ASEAN Competency and Curriculum Standards; • Undertaking tourism human resource destination capacity-building among provincial and state DMO officials, hospitality and tourism workers, and local communities; and • Harmonizing the collection, analysis, and reporting of tourism demand and supply statistics.

A project to formulate the IMT-GT Marketing Strategy and Two-Year Action Plan involving implementation of three subprojects:

• undertaking market research to inform the selection of thematic cross-border circuits/routes and related product development and marketing strategy;

15 16 IMT-GT Tourism Strategic Framework 2017–2036 and Action Plan 2017–2021

• preparation of the related marketing strategy and action plan; and • based on the market research, selecting initially one thematic cross-border thematic circuit/route for development, packaging and marketing involving: οο the provision of well-developed and diverse clusters of attractions and activities in the vicinity of the main air and sea gateway destinations in each area of the selected thematic cross-border circuit/route; and οο undertaking interventions in the vicinity of the cluster of attractions and activities in the main air and sea gateway destination of the selected thematic circuit to increase local community participation in the tourism supply chain in these areas.

Table 3 summarizes the essential features of the projects in terms of their titles, expected benefits, description, timing, budget where available, and organizations responsible for implementation.

4.2 Knowledge Dissemination Plan

This component seeks to obtain buy-in to the IMT-GT Strategic Framework and Action Plan from key stakeholders, notably provincial/state governors, local governments, DMO officials, the tourism industry, training institutions and academics by informing them about the IMT- GT Tourism Strategic Framework and Action Plan. The plan involves:

• Preparation of knowledge products on the IMT-GT Tourism Strategic Framework and Action Plan, including: οο Internet-based products for inclusion in social media sites and blogs, design of a page for the IMT-GT web site, etc. οο Production of brochures, maps and other printed documents οο Production of PowerPoint presentations for conferences and seminars οο Production of a three-minute video • Distribution of the knowledge products through: οο Social media sites and blogs οο The IMT-GT website οο Electronic media products such as Discovery and National Geographic documentaries, and current affairs shows οο Seminars, workshops and other meetings οο Direct mail • Establishment of a knowledge dissemination institutional structure in the IMT-GT Secretariat to sustain implementation of the knowledge dissemination program, and to monitor and evaluate results.

The plan should be implemented once the IMT-GT Tourism Strategic Framework and Action Plan have been agreed upon. Action Plan 2017–2021 17 continued on next page on next continued Responsible Organizations Responsible WGT Lead Country WGT on Group Working and ICT as Transportation as country transportation well organizations. As above As above As above Lead Country WGT on Group Working and ICT Transportation Country civil aviation organizations. regulatory on Tourism Group Working on Tourism Group Working Lead Country on a on Tourism Group Working basis with Working convergence and ICT on Transportation Group on Tourism Group Working Lead Country Budgets None Preparatory Studies Technical $250,000 $500,000 $800,000 be advised To Required None be as would None on Tourism Group Working Cost No p.a. $25,000 cost No Timing Q3–Q4 2017 2018 Q1–Q3 Q42018–Q2 2019 Q3 2019–Q4 2019 Q1 2020–Q4 2021 Bi-annually Q3–Q4 2017 Q1 2018–Q4 2018 Q1 2019–Q 4 2019 Q1 2020–Q4 2021 2018 Q1–Q2 and Q3 2020, Q3 2019, Q4 2021 Semi-annually ourism Strategic Framework 2017–2036 and Action Plan 2017–2021 and Action 2017–2036 Framework ourism Strategic T t -G Outcome 1: Increase in cross-border receipts in cross-border Outcome 1: Increase t Description m Preparing a position paper for presentation to the a position paper for presentation Preparing and ICT seeking its on Transportation Group Working support for taking up both projects needs and deficiencies Assessing the infrastructure the existing to upgrade requirements CIQS software international airport and seaport for subregional and Melaka in Sabang passenger operations financing plans, design, feasibility evaluations, Preparing implementing and maintenance project operations package for each infrastructure arrangements design and construction for procuring contracts Preparing supervision services to implement the packages component implementation and commissioning Project and evaluation Monitoring a position paper setting out the case for Preparing period for charter the approval speeding up and extending air carriers certified smaller IMT-GT by operations meetings to discuss subregional one or more Holding of air processing for fast on a uniform system and agree charter operations civil the countries in their respective Implementation by authorities aviation of the services of the provision and evaluation Monitoring preparing and states, In partnership with the provinces and an annual route strategy development a route based on the selected thematic program development circuits/routes cross-border with carriers, conference an annual route Organizing serving area outside the IMT-GT including those from markets and long-haul other regional and development of route and evaluation Monitoring and action strategy development to the route adjustments plan as required. • • • • • • • • • • • • • The main activities include: The main activities include: The main activities include: 1.1 Improving connectivity to support development of thematic cross-border tourism circuits and routes tourism circuits thematic cross-border to support of development connectivity 1.1 Improving Table 3. Summary of Projects for the I for Projects of 3. Summary Table Revised Strategy Strategy Revised and Action Plan Elements and Action acilitating air charter approval acilitating air charter approval acilitating airline route abang Airport/Seaport abang Airport/Seaport S Port RORO & Melaka Developments. cruise, Open up new marine, and ecotourism heritage, and products circuit adventure and promote opportunities, diversity product destination tourism intraregional Increase and length of stay, volumes, expenditure of Better balance in the share tourism among the countries and the benefits of tourism spread inclusive widely—more more F requirements. F development. Increase interconnectivity to less interconnectivity Increase accessible destinations and Higher length of stay expenditure inclusivity Greater and and intra-air inter- Increase sea connectivity and length of stay Increase expenditure inclusivity Greater

• • • • • • Expected benefits: Expected • • • benefits: Expected benefits: Expected 1.1 1.2 1.3 18 IMT-GT Tourism Strategic Framework 2017–2036 and Action Plan 2017–2021 continued on next page on next continued Responsible Organizations Responsible Working Group on Tourism Group Working on Tourism Group Working Group and ICT Working Transport on Tourism Group Working with ASEAN working WGT and Group Working Tourism national government related responsible organizations certifying and for setting, and key of standards, regulation sector stakeholders. private with in convergence WGT on Education Group Working partners, UniNet and Culture industry, and provincial/state, and local community stakeholders Budgets No Cost No Cost No be determined To Cost No Cost No Cost No $25,000 in seed $150,000 3 years funding over for $25,000 consultations, needs analysis and capacity preparing building programs over $150,000 3 years Timing Q1–2 2018 Q1–2 Q1 2018 Q2 2018–Q4 2021 Semi annually Q3–Q4 2017 2018 Q1–Q2 Q3–Q4 2018 Q1 2019–Q4 2021 Q3–Q4 2017 2018 Q1–Q2 Q3–Q4 2018 Q3–Q4 2018 Q1 2019–Q4 2021 Description Outcome 2: Increase in employment in cross-border circuits or routes circuits in cross-border in employment Outcome 2: Increase Holding consultations with the UniNet partner education consultations with the UniNet Holding to sponsor the subregional institutions and training capacity building program; needs a capacity building and training Undertaking beneficiaries to ascertain the analysis among the target type and scope of capacity building required; an ongoing capacity building program, Preparing for and budget proposal arrangement institutional financing; and financing for the program; Arranging the Implementing and monitoring evaluation program; Identifying the main destinations in the thematic circuits in the thematic circuits the main destinations Identifying to improving priority should be given where and routes ICT infrastructure for a position paper setting out the destinations Preparing to Group and ICT Working discussion with the Transport determine an action plan Implementation of the plan of progress and evaluation Monitoring consultations and discussions with the related Holding and country Groups and ASEAN Working IMT-GT required issues and concerns, agencies to ascertain key to and approach reforms, policy and regulatory implementing the ASEAN Standards; and Standards Destination of the Halal a draft Preparing to undertaking consultations among the stakeholders Standards; Destination the Halal agree a among the stakeholders and agreeing Preparing with timelines for the implementation of program and the new Halal Standards, ASEAN Tourism existing and Standards; Destination the Implementing and monitoring evaluating program. • • • • • • • • • • • • • The main activities include: The main activities include: The main activities include: ourism 2.1 Enhance the sustainability, inclusiveness, and competitiveness of the subregion as a single destination focusing on selected thematic cross-border circuits thematic cross-border on selected focusing as a single destination the subregion of and competitiveness inclusiveness, 2.1 the sustainability, Enhance Revised Strategy Strategy Revised continued and Action Plan Elements and Action ourism human resource ourism human resource destination capacity building destination F Implementing ASEAN T and developing Standards Halal and implementing new Standards Destination T Provincial and state DMO and state Provincial in effective more personnel are their tasks services human resource Tourism competitive. more are more Local communities are engaged in the tourism supply chain Tourism facilities and services Tourism and competitive sustainable more human resource Tourism more competencies are competitive of penetration market Increased tourism segments Islamic

• • • • • • 2.1 Expected benefits: Expected 1.4 ICT. acilitating destination Expected benefits: Expected 2.2 Table 3 Table Action Plan 2017–2021 19 continued on next page on next continued Responsible Organizations Responsible WGT NTOs in collaboration NTOs in collaboration WGT DMOs with provincial/state Council Business and Joint (JBC) WGT in collaboration with in collaboration WGT other the provinces/states, private WGs, IMT-GT and community-based sector, organizations. Budgets $75,000 or lower or lower $75,000 if done by cost NTOs No Cost No $25,000 $10,000 $50,000 Timing Q2–Q3 2017 Q3–Q4 2017 Q3–Q4 2017 Q3–Q4 2017 Q3–Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018–Q 4 2021 Description Undertaking desk top review of earlier market research research of earlier market desk top review Undertaking country level, IMT-GT conducted at the ASEAN, studies the and profile to establish outbound markets and key and potential markets existing subregion’s of global international tour Conducting Internet survey intermediaries trade carriers and other travel operators, to: among others in order and Wego, Advisor such as Trip patterns and markets, travel current identify and profile as a of the subregion of awareness and determine level and its competing destinations destination and potential markets existing and profiling Identifying of and determine level patterns and trends, and travel of and the extent of the subregion, recognition market programs cross-border of subregional packaging thematic tourism offerings based on Market-testing thematic heritage and ecotourism adventure marine, to identify those that and routes circuits cross-border appeal the strongest have the subregion’s of having Determining the likelihood included in their programs products cross-border Undertaking a review/evaluation of the existing tourism of the existing a review/evaluation Undertaking data collection, analysis and demand and supply statistics to stakeholders and circulating system distribution to discuss the with stakeholders a conference Holding a deficiencies and needs to devise tourism statistics taking into account these, and plan to address strategy in this area; ASEAN initiatives to implement the plan for enhanced Design a project and hardware including related tourism statistics, and capacity building training requirements software monitor and evaluate Implement project, • • • • • • • • • The main activities include: The main activities include: 3.1 Marketing the subregion as a single destination based on thematic cross-border circuits/routes and destinations circuits/routes on thematic cross-border based as a single destination the subregion Marketing 3.1 Outcome 3: More environmentally, socially and economically responsible and safe tourism in cross-border circuits or routes circuits and safe tourism in cross-border socially and economically responsible environmentally, Outcome 3: More Revised Strategy Strategy Revised continued and Action Plan Elements and Action ndertaking marketing ndertaking marketing U to inform the research formulation of the marketing and selection of strategy and products thematic circuits De tourism and its impact on supply More strategic approach to approach strategic More and development product marketing impact market Improved provincial/state by buy-in Greater sector DMOs and the private Provincial and state DMO and state Provincial in effective more personnel are their tasks cross-border Better effective tourism marketing indication of change reliable More due to specific interventions.

• • • • • • 3.1 Expected benefits: Expected 2.3 a data base on veloping Expected benefits: Expected Table 3 Table 20 IMT-GT Tourism Strategic Framework 2017–2036 and Action Plan 2017–2021 continued on next page on next continued Responsible Organizations Responsible WGT in collaboration with in collaboration WGT DMOs and JBC provincial/state Lead country in WGT with other country collaboration NTOs Lead country in collaboration WGT with other country NTOs with other collaboration country NTOs Budgets No cost if done by if done by cost No NTOs neutralShould be cost sponsorshipson based and participation fees $15,000 a. below See 3.1.3 Timing Q1–Q2 2018 Q1–Q2 Q3 2018 In Q4 2018 Q4 2018–Q4 2021 2018Q3 2017–Q4 p.a. $150,000 Lead country in WGT omotion program in omotion program culating this among public and Description titutional and ongoing financing the objectives and targets of the marketing strategy strategy of the marketing and targets the objectives of the based on the conclusions and recommendations output; research market segmentation, positioning market a single destination strategy; and branding based on market strategy development the product related destinations and circuits cross-border verified and priced, packaged to be developed, and products to the market; and promoted strategy; and distribution the promotion action plan with detailed rolling of the two-year a draft Marketing budget in line with the ASEAN Tourism action plan; and rolling implementing for the proposed recommendations financing, including the institutional, arrangements, supervision, and monitoring coordination, arrangements. evaluation ganizing the First IMT-GT Tourism Forum and Forum Tourism IMT-GT ganizing the First orking with the travel industry to package the product the product to package industry orking with the travel ased on the result of the market research output, research of the market ased on the result B and action strategy a marketing and circulating preparing for: plan position paper setting out recommendations Or and action plan to strategy marketing the draft presenting to obtain feedback finalize stakeholders Publishing the plan and cir including posting in the subregion, stakeholders private and country websites; ASEAN and related on the IMT-GT, Setting up the ins action plan for implementing the marketing arrangements W offerings Implementing the annual pr tour (carriers, industry partnership with the travel and accommodation operators) operators • • • • • •

a. b. c. d. a. b. The main activities include: The main activities include: –2018 packaging and packaging –2018 Revised Strategy Strategy Revised continued and Action Plan Elements and Action implementation of a marketing implementation of a marketing action and two-year strategy plan program promotion Pr Initial 2017 Highly focused approach to Highly focused approach and promotion packaging product of awareness market Stronger as a single destination subregion of tourism benefits. Better spread

• • • Expected benefits: Expected benefits: Expected 3.2 and eparation 3.3 Table 3 Table Action Plan 2017–2021 21 Responsible Organizations Responsible WGT in collaboration with in collaboration WGT DMOs and provincial/state sector private As above As above As above Lead Country WGT private DMOs, provincial/state sector and community based organizations Budgets None required None required None be determined To be determined To cost No p.a.$150,000 with in collaboration WGT Timing Q4 2017–Q1 2018 Q4 2017–Q1 2018 Q1–Q2 Q3 2018–Q4 2020 Q4 2018–Q4 2021 Semi-annually 2018 Q1–Q2 Q3–Q4 2018 Description Working with the travel industry to package the product the product to package industry with the travel Working offerings in program Implementing the annual promotion tour (carriers, industry partnership with the travel and accommodation operators) operators Selecting at least one cross-border thematic circuit thematic circuit one cross-border Selecting at least circuits/routes the proposed testing based on market above in 3.1.2 to be undertaken research in the market (good Old Towns” candidates include the IMT “Liveable Voyages” He “Zhang of Thailand, Indonesia’s proposal and Malaysia’s Circuit, and Marine and Yacht route Circuit) Geo-parkproposed Adventure product improvements, destination required Identifying and design of necessary opportunities, diversification and implementation arrangements interventions and capacity building to support awareness Undertaking local community participation greater thematic circuit/route Implementing the cross-border interventions development product destination and evaluation Monitoring • • • • • • • The main activities include: The main activities include: Revised Strategy Strategy Revised continued oss-border circuit/route circuit/route oss-border and Action Plan Elements and Action packaging and promotion and promotion packaging 2019–2021 S implementing thematic cross- heritage and marine, border products. ecotourism adventure Cr More environmentally, socially environmentally, More and economically sustainable pattern of tourism. of multi- in volume Increased country international tourism Increase length of stay and length of stay Increase expenditure of tourism benefits Better spread local economic Strengthened linkages. participation by Increased local communities through and small and micro employment business creation to manage negative Safeguards social impacts

• • • • • • • Expected benefits: Expected 3.4 and designing, electing, Expected benefits: Expected 3.5 Table 3 Table Source: Based on WTG agreed projects and consultants’ cost estimates in discussion with IMT-GT countries. in discussion with IMT-GT estimates and consultants’ cost projects on WTG agreed Based Source: 22 IMT-GT Tourism Strategic Framework 2017–2036 and Action Plan 2017–2021

4.3 Implementation Approach

The overall approach to the implementation of the Tourism Strategic Framework and Action Plan is shown in the following diagram. This indicates that the overall lead for implementation will be the IMT-GT Tourism Ministers to whom the IMT-GT national tourism organizations (NTOs) report on results of the implementation programs. The IMT-GT NTOs will engage in regular dialogue with partners and with Centre for IMT-GT Subregional Cooperation (CIMT). The WGT is responsible to the IMT-NTOs for supervising, monitoring and evaluating progress, and reporting results. Except for subregional marketing activities, all implementation is to be undertaken by project implementation units comprising public and private sector partners at the national/provincial/state/regional level in the IMT-GT countries. The project implementation units are in turn supervised by three project steering committees or task forces:

Implementation Arrangements

Dialogue Partners

IMT-GT Other IMT-GT Tourism Ministers Working Groups

Provincial/State Centre DMOs for IMT-GT Subregional IMT-GT NTOs Cooperation Industry Partners (CIMT) Community Organizations IMT-GT Tourism Working Group International

IMT-GT Sustainable and IMT-GT Tourism IMT-GT Product Competitive Inclusive Interconnectivity Development and Tourism Steering Steering Committee Marketing Steering Committee or Task Force Committee or Task Force or Task Force

Project implementation units at the national and provincial/state/regional level comprising public and CIMT private technical representatives Action Plan 2017–2021 23

• Tourism Interconnectivity Steering Committee or Task Force is responsible for overseeing and coordinating the inputs of the responsible organizations for the implementation of the three tourism interconnectivity subprojects. • Tourism Sustainability and Competitiveness Steering Committee or Task Force is responsible for overseeing and coordinating the inputs of the responsible organizations for the implementation of the three subprojects to enhance the sustainability, inclusiveness, and competitiveness of the subregion as a single destination. • Marketing and Product Development Steering Committee or Task Force is responsible for overseeing and coordinating the inputs of the responsible organizations for the implementation of the three marketing and product development subprojects.

The connectivity, the sustainability and competitiveness, and the product development component of the thematic circuits will be implemented by project implementation units in individual IMT-GT country areas, while the marketing project components dealing with market research, formulation and implementation of the marketing strategy will be undertaken at the subregional level by a marketing coordinator based either at the CIMT in Putrajaya or the Malaysian Ministry of Tourism and Culture in Kuala Lumpur.

The CIMT would also provide secretariat support to the IMT-GT WGT and the three Steering Committees or Task Forces supervising the implementation of the specific projects at the country level.

4.4 Updating the Strategy and Action Plan

To adjust both the Strategy and Action Plan in terms of the strategic framework, target indicators, programs and detailed project activities, it is proposed that:

• the Tourism Strategic Framework and Action Plan be posted on the IMT-GT website; • a suitable project implementation tracking system, similar to that used in the BIMP-EAGA sub-region in South East Asia, be adopted; • an annual progress report be prepared by the CIMT; and • on the basis of the annual progress report, the WGT conducts a review of the strategic framework and action plan and recommends any changes required to the NTOs for approval. 24 Foreword

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