Africa Region Working Paper Series 22702 Number 12 Public Disclosure Authorized TOUR15IMIN AFRI1CA lainT. Chris,tie Poreen E. Crompton Public Disclosure Authorized February 2001 .. - Q~~~~~~~~~~~~~~~~~~ Q~~~~~~~~~~~~~~~~~~ Public Disclosure Authorized Q~~~~~~~~~~~~~~~~~ Public Disclosure Authorized TOURISM IN AFRICA February 2001 Africa Region Working Paper Series No. 12 ABSTRACT The quality of Africa's resource endowment for tourism is exceptional, but most countries have only barely developed their tourism potential. The continent receives about 4% of all international travelers and tourism receipts, but tourism is "significant" (>2% GDP and >5% exports) in about half of SSA countries. Countries in Africa are now focusing on tourism as a source of growth and diversification, but with only limited policy guidance from most donors, despite the sector's potential. At present, the World Bank Group (WBG) provides limited support for tourism and has no overall sector strategy, though the CDF, PRSP and CAS are helping to define such strategies in a few countries. This paper gives a broad overview of issues in tourism in Africa and suggests guidelines to assist countries to develop a more coherent framework for tourism. Given its cross-sectoral nature, tourism can only grow sustainably if it is integrated into the country's overall economic, social and physical planning policies. Where national attractions are shared with neighboring countries, joint or regional promotion and marketing can be effective. Partial measures are unlikely to address vested interests, underlying economic relationships and generic social or physical constraints effectively. Government's role is to create the policy framework that will encourage for-profit private investment, and that, in combination with regulatory frameworks, will ensure good economic returns and linkages with other sectors. To be sustainable, tourism requires an open dialogue between the government, the private sector, civil society and local communities to ensure consensual decisions and the generation of economic benefits for a broad spectrum of the population. National policies must conserve the country's cultural and environmental heritage to preserve the resource base on which tourism is based. AUTHORS'AFFILIATION AND SPONSORSHIP lain T. Christie, Consultant and Forner Lead Specialist, Private Sector and Finance, Africa Region, The World Bank Email: [email protected] Doreen E. Crompton, Consultant, Tourism and Environment Email: [email protected] THE WORKINGPAPER SERIES The Africa Region Working Paper Series expedites dissemination of applied research and policy studies with potential for improving economic performance and social conditions in Sub-Saharan Africa. The Series publishes papers at preliminary stages to stimulate timely discussion within the Region and among client countries, donors, and the policy research community. The editorial board for the Series consists of representatives from professional Families appointed by the Region's Sector Directors. Editor in charge of the series: Antoine Waldburger, AFTM3, Email: awaldburger(worldbank.org For additional information visit the Web site http://www.worldbank.org/afr/wps/index.htm The findings,interpretations, and conclusionsexpressed in this paper are entirelythose of the author(s), they do not necessarily represent the views of the World Bank Group, its Executive Directors, or the countries they represent and should not be attributed to them. Tourism in Africa lain T. Christie, Consultant, Private Sector and Finance, Africa Region, The World Bank Email: Ichristieiworldbank.org Doreen E. Crompton, Consultant, Tourism and Environment Email: [email protected] February 2001 The authors wish to thank all those who commented on the paper and those who gave liberally of their time in the many one-on-one discussions that were held; and also to those who attended the presentation made to the tourism network. We would like to mention in particular Alan Gelb, Demba Ba, Tyler Biggs, Chuck Humphreys, Agi Kiss and Jean-Roger Mercier in the Africa Region. IFC made many useful comments, particularly Caroline Cain and Maurice Desthuis Francis. MIGA also commented on the report, in particular Karen Millett and David Bridgman, based on their experience in investment promotion. Tia Duer and her colleagues gave us valuable insights on matters of cultural heritage. Outside reviewers included: Rosemary Stevenson, then at DFID; Scott Wayne, World Travel and Tourism Council; and IDI Consultants, led by Matt McNulty, former chief executive of the Irish Tourist Board. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s), they do not necessarily represent the views of the World Bank Group, its Executive Directors, or the countries they represent and should not be attributed to them. TOURISM IN AFRICA TABLE OF CONTENTS Executive Summary ............................................................. i TOURISM IN AFRICA ............................................................ 1 Travel and Tourism in the World Context ............................................................. 1 Travel and Tourism in Sub-Saharan Africa ............................................................. 1 Africa's Increasing Market Share ............................................................. 2 The Tourism Product ............................................................. 5 Competitiveness of the Tourism Market ............................................................. 6 The Sustainability of Tourism ............................................................ 12 Economic Sustainability ............................................................ 13 Environmental Sustainability ............................................................ 19 Poverty and Social Inclusion ............................................... 22 Current Constraints to the Development of Tourism in Africa . ............................................23 Policy Framework For Tourism in Africa ................................................ 33 Integrated Strategy for Sustainable Tourism ............................................................ 36 Policy Requirements For Specific Categories Of Tourism ...................................................... 37 Next Steps ............................................................. 43 LIST OF BOXES AND CHARTS Box 1: World Travel and Tourism Council ................................................ 1 Box 2: Importance of Tourism to African Countries ........................................................... 2 Box 3: The World Tourism Organization ............................................................. 4 Box 4: The Leading Hotels of the World in Africa .. I1....................................... Box 5: The U.N. Commission for Sustainable Development and Tourism .. 12 Box 6: The Economic Rate of Return of Hotel Projects ........................................................... 13 Box 7: Economic Benefits of Tourism ............................................................ 17 Box 8: Government Revenues from Tourism-Related Taxes .................................................. 18 Box 9: Tourism Satellite Account ............................................................ 20 Box 10: South Africa Travel and Tourism Forecast: Baseline Case . 21 Box 11: Air Transport Trends and Economics in Western and Central Africa .. 25 Box 12: Tourism and Critical Mass ............................................................ 26 Box 13: Financing of Hotel Projects ............................................................ 27 Box 14: Safety and Security in West Africa ............................................................ 30 Box 15: Issues Related to National Parks in Kenya ......................................... 39 Box 16: Community-based Tourism ............................................................ 41 Box 17: Cultural Tourism in Africa ............................................................ 42 Box 18: A Tourism Workshop in Zimbabwe ............................................................ 44 Box 19: Development Guidelines ............................................. Annex. 15 Box 20: Architectural, Landscape I)esign and Site Planning ......................... Annex . 16 Box 21: Example of Use Zoning for Archaeological Site Conservation ............ Annex..... 17 Borobudur National Archaeological Park in Java, Indonesia Box 22: Example of Regional Tourism Plan Analysis ................................. Annex..... 18 Chart ] :Tourism Channels of Distribution ... 6 Chart 2, Airplane Pricing ... 9 Chart 3: Tourism as an Entry Point .... 14 LIST OF ANNEXES ANNEX 1: OVERVIEW OF THE STRUCTURE OF THE INTERNATIONAL TOURISM tNDUSTRY ................................................................................................. ANNEX 2: THE GREENING OF TOURISM .... 8 ANNEX 3: PHYSICAL PLANNING FOR TOURISM .... 14 ANNEX 4: OVERVIEW OF TOURISM ISSUES IN COTE D'IVOIRE, GHANA, MAURITIUS, SOUTH AFRICA AND SADC COUNTRIES .... 20 ANNEX 5: SELECTED DONOR STRATEGIES FOR TOURISM .... 44 ANNEX 6: IFC, MIGA AND TOURISM .... 50 ANNEX 7: THE WORLD BANK'S TOURISM PROJECTS DEPARTMENT (1969-1978) .... 54 STATISTICAL APPENDIX: TOURISM MARKET TRENDS .... 63 EXECUTIVE SUMMARY i. The purpose of this paper is to assist the Africa Region to determine whether the Bank can play a more strategic role in tourism. Africa is recognized internationally for the quality of its resource