South Asia Subregional Economic Cooperation Tourism Development Plan
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ASIAN DEVELOPMENT BANK AND SOUTH ASIA SUBREGIONAL ECONOMIC COOPERATION TOURISM WORKING GROUP TOURISM RESOURCE CONSULTANTS LTD, NEW ZEALAND IN ASSOCIATION WITH METCON CONSULTANTS PTE LTD, NEPAL December 2004 SOUTH ASIA SUBREGIONAL ECONOMIC COOPERATION Photo Credits: Les Clark Lisa Choegyal Department of Tourism, Bhutan Department of Tourism, India Nepal Tourism Board © 2005 Asian Development Bank All rights reserved. This book was prepared by staff and consultants of the Asian Development Bank (ADB). The analyses and assessments contained herein do not necessarily reflect the views of the Asian Dvelopment Bank, or its Board of Directors, or the governments its members represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequences of their use. The term “country,” as used in the context of ADB, refers to a member of ADB and does not imply any view on the part of ADB as to the member’s sovereignty or independent status. Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel (63-2) 632-4444 Fax (63-2) 636-2444 www.adb.org Asian Development Bank. 2004. South Asia Subregional Economic Cooperation Tourism Development Plan Publication Stock No. 111304 ii ABBREVIATIONS ABBREVIATIONS ABTO — Association of Bhutan Tour Operators ACAP — Annapurna Conservation Area Project ADF — Asian Development Fund ACT — Association for Conservation and Tourism ADB — Asian Development Bank ASEAN — Association of South East Asian Nations APETIT — Asia Pacific Educational Training Institute for Tourism ASI — Archaeological Survey of India BBIN — Bangladesh Bhutan India Nepal BIMST-EC — Bay of Bengal Initiative for Mult-Sectoral Technical and Economic Cooperation (formerly Bangladesh India Myanmar Sri Lanka Thailand—Economic Cooperation) BPC — Bangladesh Parjatan Corporation BZ — buffer zone CAREC — Central Asia Regional Economic Cooperation CBO — community-based organization CI — Conservation International DFID — Department for International Development, United Kingdom DDC — district development committee DMC — developing member country (of ADB) DNPWC — Department of National Parks and Wildlife Conservation DOA — Department of Archaeology DONER — Department of Development of the North East Region DOT — Department of Tourism ECOSS — Ecotourism and Conservation Society of Sikkim EIRR — economic internal rate of return ENVIS — Environmental Information System for Ecotourism EU — European Union FDI — foreign direct investment FICCI — Federation of Indian Chambers of Commerce and Industry FIRR — financial internal rate of return GEF — Global Environment Facility GMS — Greater Mekong Subregion HMTTI — Hotel Management and Tourism Training Institute, Bhutan HRD — human resource development ICIMOD — International Center for Integrated Mountain Development ICIMOS — International Commission on Monuments and Sites IDBI — Industrial Development Bank of India IFC — International Finance Corporation IITTM — Indian Institute of Tourism and Travel Management IMF — International Monetary Fund INGO — international nongovernment organization INTACH — Indian National Trust for Arts and Cultural Heritage JBIC — Japan Bank for International Cooperation JICA — Japan International Cooperation Agency iii SOUTH ASIA SUBREGIONAL ECONOMIC COOPERATION KCA — Kanchenjunga Conservation Area, Nepal KCC — Khangchendzonga Conservation Committee, Sikkim KEEP — Kehedi Ecotourism and Ecodevelopment Promotions KMTNC — King Mahendra Trust for Nature Conservation LDT — Lumbini Development Trust LTO — local tourism organization MBNPBZ — Makalu-Barun National Park and Buffer Zone MFI — multilateral financing institution MOCAT — Ministry of Civil Aviation and Tourism, Bangladesh MOCTCA — Ministry of Culture, Tourism and Civil Aviation, Nepal MOF — Ministry of Finance MOT — Ministry of Tourism MOU — Memorandum of Understanding NATHM — Nepal Academy of Tourism and Hotel Management NCD — Nature Conservation Division, Bhutan NEC — North Eastern Council NEDFI — North East Development Finance Corporation NGO — nongovernment organization NRI — non-resident Indian NTB — Nepal Tourism Board NTO — national tourism organization OCR — Ordinary Capital Reserves PAP — Protected Area Permit PATA — Pacific Asia Travel Association PIO — person of Indian origin PPP — private-public partnership PPT — pro-poor tourism PRC — People’s Republic of China RCNP — Royal Chitwan National Park RSPN — Royal Society for the Protection of Nature, Bhutan SAARC — South Asian Association for Regional Cooperation SABF — South Asia Business Forum SADB — South Asia Development Bank SADF — South Asia Development Fund SAGQ — South Asian Growth Quadrangle SASEC — South Asia Subregional Economic Cooperation SATTE — South Asia Tourism and Travel Exchange SEDF — South Asia Enterprise Development Facility SME — small and medium enterprise STIDP — Second Tourism Infrastructure Development Program SNP — Sagarmatha National Park SNV — Netherland Development Organisation SPCC — Sagarmatha Pollution Control Committee STDU — Sustainable Tourism Development Unit STF — Sustainable Tourism Forum STN — Sustainable Tourism Network TA — technical assistance TAAI — Travel Agents Association of India TAAS — Travel Agents Associated, Sikkim iv ABBREVIATIONS TAR — Tibet Autonomous Region TDC — Tourism Development Committee TDP — Tourism Development Plan TIF — Tourism Investment Fund TFCI — Tourism Finance Corporation of India TMI — The Mountain Institute TOAB — Tour Operators Association of Bangladesh TRC — Tourism Resource Consultants TRPAP — Tourism for Rural Poverty Alleviation Program TSF — tourism service fee TWG — Tourism Working Group UNDP — United Nations Development Programme UNEP — United Nations Environment Programme UNESCAP — United Nations Economic and Social Commission for Asia and the Pacific UNESCO — United Nations Educational Scientific and Cultural Organisation UP — Uttar Pradesh VDC — village development committee VFR — visiting friends and relatives WHS — World Heritage Site WTO — World Tourism Organization WTTC — World Travel and Tourism Council WWF — World Wide Fund for Nature/World Wildlife Fund NOTE In this report, “$” refers to US dollars v SOUTH ASIA SUBREGIONAL ECONOMIC COOPERATION Map of the South Asia Subregional Economic Cooperation Subregion vi ABBREVIATIONS CONTENTS Page Map of South Asia Subregional Economic Cooperation Subregion vi Executive Summary ix I. INTRODUCTION 1 A. Background of the SASEC Tourism Development Plan 3 B. Terms of Reference for Preparation of the TDP 3 C. Approach and Methodology 4 D. Acknowledgements 6 E. Format of the TDP 7 II. THE PLANNING CONTEXT 9 A. Background of SASEC 11 B. Profile of SASEC Countries 13 C. World Tourism 18 III. ANALYSIS OF SASEC TOURISM 25 A. Tourism Patterns 26 B. Tourism Development Agendas 40 C. Tourism Attractions 51 D. Issues and Constraints 59 IV. STRATEGIES FOR SUBREGIONAL COOPERATION IN TOURISM 65 A. Previous Decisions of Tourism Working Group 67 B. Core Strategic Directions 68 C. Broad Strategies 69 D. Additional Principles 70 V. SASEC TOURISM DEVELOPMENT FRAMEWORK 71 A. Structure of the Framework 73 B. Generic Programs 75 C. Product-Focused Programs 94 D. Programs Focused on the Private Sector 106 E. Key Area Programs 108 VI. IMPLEMENTATION ARRANGEMENTS 113 A. TWG and its Development Partners 115 B. Mobilizing Resources 118 C. Public-Private Partnerships 127 D. Enhancing the Pro-Poor Benefits of Tourism 129 E. Managing the Impacts of Tourism 132 F. Relationships with other Regional Groupings 134 vii SOUTH ASIA SUBREGIONAL ECONOMIC COOPERATION VII. DEVELOPMENT MATRIX AND ACTION PLAN 139 APPENDIXES 1. Ideas from Planning Workshops 159 2. South Asia Subregional Economic Cooperation Tourism Investment Fund 172 3. Economic and Financial Analysis of the Tourism Development Plan 181 4. Key Area Development Concepts 190 5. Format for Submitting Project Ideas to the Tourism Working Group 203 6. Participants in the Planning Process 208 7. Documents Consulted 221 viii ABBREVIATIONS Executive Summary Tourism is a priority sector in the South Asia poverty, (ii) branding that focuses on SASEC’s Subregional Economic Cooperation (SASEC) products and not on the SASEC subregion itself, program. At its second annual meeting, the SASEC (iii) initiation of joint marketing before the Tourism Working Group (TWG) identified the introduction of measures to ensure product quality, preparation of a subregional tourism masterplan (iv) repositioning the subregion as a tourist- as a priority and requested support from the Asian friendly destination, (v) facilitating the Development Bank (ADB) to prepare the plan. TWG development of a more competitive tourism refined this request at its third meeting, agreeing industry, and (vi) improving tourism links with that it should be a subregional Tourism neighboring countries. With these strategic Development Plan (TDP or “the Plan”), and that it directions in mind, TWG will embark on its own should build upon existing tourism plans in each agenda of subregional activities. In the future, TWG of the four SASEC countries: Bangladesh, Bhutan, will be open to the introduction by any interested India and Nepal. TWG also agreed that the Plan stakeholder of new activities into the agenda. should establish a thematic framework for future As a framework for the initial activities of TWG, tourism development, and that planning should the TDP presents seven subregional programs and start with two common themes: Ecotourism 23 projects. The programs begin