E2208 Public Disclosure Authorized Sri Lanka Sustainable Tourism Development Project Public Disclosure Authorized Social Management Framework (SMF) Public Disclosure Authorized Sri Lanka Tourism Development Authority Ministry of Tourism, Sri Lanka July 12, 2009 Public Disclosure Authorized List of Contents Page List of Tables iv List of Maps iv Abbreviations Used in this Report v Executive Summary 1 1.0 Introduction and Background 3 1.1 Objectives of this Report 3 1.2 Components of the Project 4 1.2.1 Component 1 4 1.2.2 Component 2 4 1.2.3 Component 3 5 1.3 Sustainable Tourism and Sri Lanka 6 1.4 World Bank Safeguard Policies 6 1.5 Identification of Project Clusters 7 1.6 Socio-geographical Profile of Proposed Tourism Clusters 9 1.6.1 Trincomalee/ Nilaveli 9 1.6.2 Arugam Bay 10 1.6.3 Passikudah/ Kalkudah 10 1.6.4 Kalpitiya 11 1.7 Profile of Local Communities in TDAs 12 1.8 Nature of Land Tenure in the TZs 13 2.0 Potential Impacts of the Project Components and Mitigation Strategies 14 2.1 Impacts of Component 1 14 2.1.1 Issues arising due to devolution of authority 14 2.1.2 Issuing of licenses and approvals 14 2.1.3 Listing of products on the Sri Lanka Tourism Promotion Bureau (SLTPB) booking website 15 2.1.4 Public Private Partnership (PPP) Model 15 2.2 Mitigating Strategy and Guidelines 15 2.2.1 Improve awareness and transparency 15 2.2.2 Training and capacity building 16 2.3 Impacts of Component 2: Primary Issues 16 2.3.1 Zoning 16 2.3.2 Land Use Plans 17 2.4 Impacts of zoning and land use plans 18 2.4.1 Increase in land prices 18 2.4.2 Uninformed land transactions 18 2.4.3 Restriction of livelihoods 18 2.4.4 Pressure on resources 19 2.4.5 IDP claims on land ownership in the tourism zones 19 2.5 Mitigating Strategy and Guidelines 19 2.5.1 Consultations with stakeholders 19 2.5.2 Identify issues through community participation 20 2.5.3 Work with local government on mitigating measures 20 2.5.4 Communication and awareness activities 21 2.5.5 Provide support for those with changes in livelihoods 21 2.5.6 Establish a Grievance Redress Committee (GRC) 21 2.5.7 Social Impact Assessments (SIAs) 22 2.6 Investment in tourism in the project areas 22 2.7 Mitigating Strategy and Guidelines 23 2.7.1 Identify and work with Micro, Small and Medium Enterprises (MSMEs) that can supply the tourism cluster 23 2.7.2 Provide skills training to local people to find employment in the tourism sector 23 2.7.3 Hire an NGO to work with local communities 24 2.7.4 Encourage the purchase of local products and services for sub-projects 24 2.7.5 Communication and awareness 24 2.8 Cultural Impacts 24 2.8.1 Tourists may not be aware of local customs and traditions 24 2.8.2 Harassment of tourists 24 2.8.3 Sexual and other risks of tourism 25 2.9 Mitigating Strategy and Guidelines 25 2.9.1 Communication and awareness 25 2.9.2 Coordinate with other organizations undertaking related activities 26 3.0 Impacts of Component 2: The Secondary Issues 26 3.1 Land- related issues 26 3.1.1 No involuntary land acquisition 26 3.2 Mitigating Strategy and Guidelines 27 3.3 Development of cultural sites 28 3.3.1 Promotion of cultural sites 28 3.3.2 Selection of cultural sites 28 3.4 Mitigating Strategy and Guidelines 28 3.4.1 Communication and awareness campaigns 28 3.4.2 Training and employment for local community 29 3.4.3 Obtain consensus on site selection for sub projects 29 3.4.4 Develop cultural sites in line with internationally recognized guidelines 29 3.5 Vulnerable groups 29 3.5.1 Exclusion of vulnerable groups 29 3.6 Mitigation Strategy and Guidelines 30 4.0 Impacts of Component 3 30 4.1 Assistance for compiling applications for matching grants 30 4.2 Mitigating Strategy and Guidelines 30 4.2.1 Improve awareness and transparency 30 4.2.2 Recruitment of a Process Consultant 30 4.2.3 Grievance Redress Mechanism (GRM) 31 5.0 General mitigating Strategies to adopt throughout the project 31 Work Process Map 33 Appendices Appendix A: Land Acquisition, Related Acts/ Policies and Procedures 34 Appendix B: Generic Guidelines/ TOR for Social Impact Assessment 42 Appendix C: Generic Guidelines for Continuous Social Impact Assessment (CSIA) 44 Appendix D: UNESCO guidelines on Protection and Management of World Heritage Sites 45 Appendix E: Details of Project Components and Sub-Projects 48 Appendix F: Terms of Reference (TOR) given to the social consultant responsible for compiling this report 53 Appendix G: Terms of Reference of Grievance Redress Committee (GRC) and Staffing Specifications 58 Appendix H: National Program on HIV/AIDS 59 Appendix I: Maps of Tourism Zones chosen for the Project 61 List of Tables Page Table 1: Details of TDAs which form Project Clusters 7 Table 2: Tourism Sites in Trincomalee 9 Table 3: Tourism Sites in Arugam Bay 10 Table 4: Ethnic Composition in the Districts in the East 12 Table 5: IDPs in the Eastern Province in 2007 13 List of Maps Map 1: Tourism Zones 8 Abbreviations Used in this Report CBO Community Based Organization CSIA Continuous Social Impact Assessment DMS Destination Management System DS Divisional Secretariat DSOs Divisional Secretariat Offices GN Grama Niladhari GRC Grievance Redress Committee GRM Grievance Redress Mechanism HIES Household Income and Expenditure Survey HIV Human Immune Deficiency Virus HSZ High Security Zone IDPs Internally displaced persons/people LAA Land Acquisition Act LDO Land Development Ordinance of 1935 LTF Local Tourist Forum MoU Memorandum of Understanding MSMEs Micro, Small and Medium Enterprises NCACP National STD and AIDS Control Program NGO Non Governmental Organization NIRP National Involuntary Resettlement Policy PAPs Project Affected Persons/People PCRs Physical Cultural Resources PCU Project Coordinating Unit PIU Project Implementation Unit PPF Project Preparation Facility PPP Public Private Partnership PS Pradeshiya Sabha RP Resettlement Plan RDA Road Development Authority RCF Resettlement Compensation Framework RMU Resettlement Monitoring Unit SIA Social Impact Assessment SLTDA Sri Lanka Tourism Development Authority SLTPB Sri Lanka Tourism Promotion Bureau SMEs Small Medium Enterprises SMF Social Management Framework STDs Sexually Transmitted Diseases STIs Sexually Transmitted Infections TDAs Tourist Development Areas TZs Tourism Zones WB World Bank Executive Summary This Social Management Framework (SMF) is for a sustainable tourism project under the Sri Lanka Tourism Development Authority (SLTDA) of the Ministry of Tourism. It outlines the major impacts of the project on local communities and points out possible mitigatory strategies for the identified impacts. It addresses the impacts that would be felt by local citizens in general, and local businessmen, potential external and internal investors etc., in specific. The SMF forms an integral part of the Project Implementation Manual of the Sustainable Tourism Project. The project is an attempt to bring the concept of sustainability to the tourism industry in Sri Lanka. As a result, the project aims to build upon the recommendations of the World Summit on Sustainable Development to ‘develop community based initiatives on tourism to build the capacities to diversify tourism products, while protecting culture and traditions and effectively conserving and managing natural resources.’ The project will be implemented under the purview of SLTDA with the support of the provincial governments. The authority vested in the central government will be devolved to the provincial governments in order to obtain efficiency in service delivery. Further objectives of the project are the development of highly localized tourism-related infrastructure and the improvement of product content and supply chains that are aligned with sustainable tourism. The project comprises three main components each dealing with the above three objectives. The components and their sub-projects can be summarized as follows: 1) Improving efficiency of the institutional framework: Component 1 will develop an efficient institutional framework that involves the devolution of authority to the provincial governments in issuing permits, approvals etc. 2) Establishment of tourism related local infrastructure: Component 2 of the project is likely to have the strongest impact on the local community. It involves the development of master plans, establishment of Project Preparation Facility (PPF) and financing tourism related infrastructure facilities. 3) Supporting business models that are the basis of sustainable tourism through matching grants. The major negative impacts of Components 1 are related to communication and knowledge. These issues can be summarized as follows: 1. Miscommunication between central and provincial governments in the process of devolving powers of issuing permits, licenses etc. 2. Lack of clarity between the SLTDA and Provincial councils on the roles and functions. 3. Delays in obtaining licenses and permits due to ignorance of applicants about the procedures involved. 4. Inability to reach standards required for getting listed on the Sri Lanka Tourism Promotion Bureau (SLTPB) booking website due to ignorance of businessmen about the criteria involved. 5. Disadvantages caused for some stakeholders through the Public Private Partnership (PPP) model. Methods of improving awareness and transparency of the processes involved in obtaining permits and in getting listed on the SLTPB website, and training and capacity building of relevant individuals and groups are suggested as mitigatory strategies for the first three impacts listed above. The PPP model per se is not expected to disadvantage certain groups/ individuals in the community. However, the zoning and land use frameworks that would be developed with the assistance of the PPP unit would place certain limitations on people’s livelihoods, ability to benefit from rising land prices and put pressure on resources in a given region.