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Towards a Sustainable Tourism Industry in Eastern Africa

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Towards a Sustainable Tourism Industry in Eastern Africa UNECA SRO-EA Tourism Study Towards a Sustainable Tourism Industry in Eastern Africa A Study on the Challenges and Opportunities for Tourism Development 2011 3 UNECA SRO-EA Tourism Study Copyright ©2011 By the United Nations Economic Commission for Africa www.uneca.org All rights reserved. The text and data in this publication may be reproduced as long as the source is cited. Reproduction for commercial purposes is forbidden. Disclaimer This report is the result of the analysis of a study commissioned by the United Nations Economic Commission for Africa, Eastern Africa Sub-region Office (UNECASRO-EA) . However, the report does not purport to represent the views or the official policy of the institution or of any SRO-EA member country. 4 UNECA SRO-EA Tourism Study Acknowledgment This study was commissioned by the United Nations Economic Commission for Africa Sub- region Office for Eastern Africa (UNECA SRO-EA) to inform appropriate policy and strategy formulation to facilitate sustainable tourism development in the Eastern Africa region. The research was undertaken by Geoffrey Manyara under the direct supervision of Abdoulahi Mahamat, Joseph Baricako and Andrew Mold, and overall guidance of Antonio Pedro, the director of UNECA SRO-EA. In addition, special thanks go to Ray Mutinda and Shem Maingi from Kenyatta University in Kenya for their assistance during the course of the study. Finally, UNECA would like to take this opportunity to acknowledge with thanks all the tourism stakeholders that provided valuable information during the study and to all the participants of the 15th Inter-Governmental Committee of Experts including government officials, private sector representatives, civil society and members of academia drawn from the Eastern Africa region, for their constructive criticisms and peer review that helped refine this study. 5 UNECA SRO-EA Tourism Study Executive Summary The key objective of this study is to build a source of information on the status of tourism development in Eastern Africa with a view to helping policy makers and other stakeholders to outline policies and strategies towards the development of a sustainable tourism industry in the sub-region. The study, therefore, entails an assessment of the extent and importance of the tourism sector in Eastern Africa, identification of the key issues and challenges confronting the development of the sector, identification of good practices, comparative analysis of successful tourism-based economies in Africa and around the world, an analysis of lessons to emulate, and an outline of policy options and strategies that will, in the long term, contribute to the development of a resilient and well integrated tourism sector in the sub-region. This study builds on both primary and secondary data sources. The study was elaborated through a critical review of literature related to tourism and economic development, tourism in developing countries, regional integration and tourism development. The findings show that significant linkages exist between tourism in LDCs’ and poverty alleviation as well as economic development. It is worth noting that, tourism is not a single activity, but an agglomeration of many separate and related activities that include transport, accommodation, food and beverage services, cultural entertainment, conventions and trade fairs, sports and recreation. It can be therefore assumed that the greater the inter-sectoral linkages between the tourism sector and the other sectors, the greater the economic multiplier effects. The industry contribution, as such, to the GDP in the region ranges between 3.8% on the lower level as is the case with Burundi and 46.4% on the higher level for Seychelles. Owing to the fact that tourism has been identified as one of the key sectors to drive economic development and that most of the prevailing Eastern Africa models have not brought about significant socio-economic development, particularly in terms of poverty alleviation, a number of strategies have been proposed to enhance greater tourism linkages. These are, boosting procurement from local enterprise; partnerships with neighbours; supporting local cultural and heritage product development coupled with enhancing the capacity of local entrepreneurs to deliver these products; and encouraging tourist expenditure within the local economy. This study further notes that Eastern Africa does not rank favourably as a competitive destination. Key reasons to such unfavourable rankings are the lack of conducive policy and regulatory framework as well as uncertainties in the business environment which do little to encourage investment. In addition, though the region ranks fairly well in terms of the state of its natural resources, the human resources necessary to develop the industry are generally ill equipped or not properly trained and the cultural resources that could expand the range of tourism products remain unexploited respectively. 6 UNECA SRO-EA Tourism Study In the face of broadly similar challenges, Eastern Africa governments should seek to address these issues by establishing policy interventions that are targeted towards ensuring that tourism in Eastern Africa is competitive and sustainable. An analysis of growth diagnostics within the Eastern Africa region clearly indicate that there are ideal challenges, emerging opportunities, existing weaknesses and future threats that may have a real impact on the growth of the tourism industry. In order to influence and sustain growth, appropriate measures should be taken by key stakeholders to improve the regulatory framework; Travel and Tourism business environment, infrastructure; human, cultural, and natural resources. There needs to be a conducive policy and legislative framework facilitating foreign ownership and FDI, well-protected property rights and few visitor restrictions, to guarantee the development of the tourism industry. Planned and direct private-sector-led investment on weak sectors within EA tourism-based economies can provide a direct impetus for growth. Political stability, security, health and hygiene as well as environmental sustainability are areas for further enhancement and prioritization. Government expenditure on the sector, strong destination-marketing campaigns, and country-level presence at key international tourism fairs need to be equally enhanced. An open skies policy as well as a liberalized environment would be an ideal driver for tourism to the region. The business environment as well as infrastructure need to be improved to service tourists’ needs and encourages investment by the private sector. Access to tourism sites is a key factor that would increase accessibility of the destination. There several strategies that can be employed in the development of efficient transport infrastructure. First and foremost, successful development of infrastructure requires public-sector led initiatives including appropriate policy framework, careful infrastructure development planning and setting up coordinating agencies. The significance of ICT in the tourism industry cannot be overstated given the increasing importance of the online environment for the distribution and promotion of the travel and tourism products. E-Tourism continues to be a significant distribution and marketing strategy for tourism in the developed countries. The implementation of a unique tourism development strategy depends on the partnership between public and private sector. At every stage of implementation, there is a need for governments to stimulate private investment by creating a favourable context for investment in general with specific tourism-related fiscal, financial and other incentives. An understanding, of the positioning of destinations in terms of price competitiveness relative to their respective competitors can be a strategic development tool for the tourism industry. Demand patterns need to be assessed in light of the dynamics in price competitiveness. The Eastern Africa region needs to leverage on its ease of availability in skilled manpower in countries such as Kenya. This remains a significant challenge for the majority of countries in the region. However, tapping into this opportunity can only be realized through regional integration 7 UNECA SRO-EA Tourism Study and formulation of appropriate policies and legislation that encourage labour mobility across the region. The study conclusively identifies a unified approach to tourism development under the umbrella of regional integration - an urgent requirement in terms of the potential benefits that could accrue to the region if it is be sold as single destination. To achieve this goal, it is essential that the steps towards developing an Eastern Africa Master Tourism Plan be given prominence among the member countries. The development, therefore, of the master plan would map out the developmental agenda for the region as well as to chart out a vision for the tourism sector. This would entail a consultative stakeholder approach to clearly identify key issues and priorities for tourism development in Eastern Africa. Parallel to the master plan is the need for a regional destination management organisation (DMO) whose key functions would primarily entail internal destination development (IDD) and external destination management (EDM) functions. Further to selling Eastern Africa as a single destination, considerations for a single visa for international visitors to the region are highly recommended. As a means of meeting HR challenges, it is important that the
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