TOURISM AND DEVELOPMENT Agendas for action Nertherlands Development Organisation October 2007 TOURISM AND DEVELOPMENT Agendas for action October 2007 Copyright SNV East & Southern Africa 2007 SNV Netherlands Development Organization East & Southern Africa Region P. O. Box 30776, 00100 Nairobi, Kenya Tel: +254 20 3873656 Fax : +254 20 3873650 Email : [email protected] Website : www.snvworld.org Photo credits: Kenya - Reinout van den Bergh Mozambique - Luis Sarmento SNV Rwanda - Dominique Verdugo SNV Tanzania - Birgit Steck SNV Ethiopia - Reinout van den Bergh SNV Layout and design by Imagine Works Ltd Nairobi, Kenya Printing by English Press Ltd Nairobi, Kenya 2 Table of Contents Abbreviations and Acronyms ...................................................................................................................................................7 Foreword ....................................................................................................................................................................................................... .9 Introduction ........................................................................................................................................................................................................10 Why focus on government action to boost the local economic impacts of tourism? .......................10 Five case study countries .....................................................................................................................................................................11 Tourism data for the case study countries, 2004 ............................................................................................................11 Benefits to the poor from tourism and areas to consider for government action ..............................11 Analytical approach used in the case studies .....................................................................................................................12 Government incentives for boosting impacts on pro-poor tourism in Kenya............................................................................................................................................................................................15 Summary ............................................................................................................................................................................................................16 Introduction ......................................................................................................................................................................................................16 Tourism situation in Kenya ..................................................................................................................................................................16 Policy context ..................................................................................................................................................................................................17 Current policies and pro-poor elements ......................................................................................................................................17 Government commitments to making tourism pro-poor ..................................................................................................17 Tourism policy status analysis ...........................................................................................................................................................19 Key opportunities for making tourism pro-poor .....................................................................................................................20 Current benefits and costs to the poor from tourism in Kenya ..........................................................................20 Current government incentives on the poor .......................................................................................................................22 Promotion of tourism skills and employment opportunities for the poor ................................................................22 Facilitating supply chain linkages between tourism businesses and local entrepreneurs .............................24 Enabling poor entrepreneurs to develop tourism businesses and access the market directly ..................25 Promoting craft production and sales by the poor ................................................................................................................26 Incentives for formal partnership between private operators and residents .......................................................27 Influence over private sector .............................................................................................................................................................27 Facilitating other destination-level linkages between tourism business and local entrepreneurs and residents ...........................................................................................................................................................28 Development of tourism products and segments well served by the poor ...........................................................29 Sharing revenue from taxes and fees with local people ...................................................................................................29 Maximising local benefits from infrastructure and services ............................................................................................29 Managing trade-offs and resources ................................................................................................................................................30 Disruption and cultural infringement .............................................................................................................................................30 Participation by the poor .......................................................................................................................................................................30 Conclusion ..........................................................................................................................................................................................................31 References .........................................................................................................................................................................................................32 3 Mozambique: An analysis of government incentives for increasing the local Economic impacts of tourism ..........................................................................................................................................................33 Introduction: Current tourism situation ..................................................................................................................................34 Government policy on tourism and pro-poor tourism.................................................................................................35 Local economic benefits from tourism: current context ...........................................................................................40 Assessment of current government incentives for boosting impacts ............................................................43 Promotion of tourism skills and employment opportunities for the poor ................................................................43 Helping poor suppliers enter the tourism supply chain......................................................................................................44 Enabling poor entrepreneurs to operate tourism businesses .........................................................................................46 Promoting craft production and sales by the poor ................................................................................................................47 Influencing the behaviour of the established private sector ...........................................................................................48 Facilitating linkages between private operators, local people and other stakeholders within a destination ...................................................................................................................................49 Developing tourism products and segments well served by the poor ......................................................................50 Sharing revenue from taxes and fees with local people ...................................................................................................51 Maximising benefits to local people from tourism infrastructure and services ...................................................51 Managing trade-offs between residents and tourists over resources .......................................................................52 Managing cultural disruption ..............................................................................................................................................................52 Enabling participation by the poor in making policy and plans .....................................................................................53 Conclusion: .......................................................................................................................................................................................................53