Tourism & Local Economic Development Harold Goodwin Centre for Responsible Tourism Hollings 1

Programme Introduction – Harold Goodwin Introductions – all Jo Hendricx Thomas Cook Hugh Felton, ABTA, Surfing Suzannah Newham, Travel Foundation Jen Bobbin, JUSTreport Becs Armstrong, wages in the hotel industry and an opportunity to hear from others 2

Whats the challenge? The tourism industry is the worlds biggest industry – WTTC & satellite accounts. Focus is on international arrivals and earnings at national level – rather than yield or net value. Very little local data Development agencies tend to be ambivalent about tourism – Earns foreign currency - IFC – Doesn't create proper jobs - DFID 3

Hyperbole The industry makes claims based on 1.Macro economic methods 2.Repetition: ecotourism and CBT 4

Why does this matter? Tourism brings relatively wealthy people to places where they create an additional local market. A big opportunity in some marginal areas. The tourism sector needs to demonstrate net benefit, significant livelihood impacts at local level Donors and practitioners need to know which forms of intervention are most likely to deliver most benefits. Who benefits? Practitioners need to be able to demonstrate that they are not the major beneficiaries of donor funded projects 5

Previous Engagement Tourism, Conservation and Sustainable Development – livelihood impacts Tourism and Poverty Elimination => Pro-Poor Tourism Partnership – net benefits to the economically poor Confidential evaluation projects for Dutch Gvt. Community-Based Tourism MSc Project Reports 6

Opportunity The Centre for Responsible Tourism wants this to be a major focus of our research work We will be creating PhD places to work on the measurement of the local economic impact of tourism at business, household and village level using accountancy methodologies. SDGs look likely to emerge from the UN system. 7

Industry engagement Some parts of the sector are looking for this – Kerala Responsible Tourism Network – A group of hotels in India – A Lodge near Cape Town – ASSET members in The Gambia – A lodge in the Peruvian Amazon – A Tour Operator ……. 8 Three examples ………… If we can engage the economically poor in the data collection, and ensure that they own and can use their own data, we also empower then.

Village Ways Village No of BagsVWCT expenditure on materials and labour Other handicraft income Total craft earnings in the village Dalar Kathdara ,560 Risal Supi Total ,289 9 Village Ways Charitable Trust Purchases of Bags to March 2013 Source VWCT multiple producers for each bag.

FamilyBPLNo. in HHInvolvementAnnual VW income % of household income MN2Member5, % IN6Member, Landlord7, % BN4Member. Cook9, % JY6Member3, % FN4Member12, % DN4Member7, % CN4Member. Cook9, % HN4Member7, % LN3Member7, % KN5Member1, % NN6Member4, % SN7Guide10, % UN4Guide10, % VN4Guide10, % XY6Guide10, % YY5Guide10, % TN8Guide10,0005.0% WN6Guide10,0005.0% Supi: Employment Income from Village Ways by Household

Dec 2006 UNWTO Pilot Course T&PA11 Tanzanian Coffee Farm

Dec 2006 UNWTO Pilot Course T&PA12

Dec 2006 UNWTO Pilot Course T&PA13

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15 Revenue from Coffee Tours and Campsite, 2005 – investment ± $30,000 #CampsiteCoffee tourLunchTotal Sale s MonthGroupspax USD June July ,484 August ,264 September ,131 October ,025 November December Totals ,626

16 Distribution of Revenues June – December 2005 Total Earnings USD% Coffee Co-operative Office, Community Development Fund Tour guides (farmers)7797 Food,9679 Camp. Maintenance7947 Campsite Office721 Camp. Security,2182 Miscellaneous. Fund,28- Farmers for visits to their land31- Total distributed Retained undistributed167016

17 Estimation of net income accruing to individuals by group

18 Cost Benefit Community perspective, small investment in training and use of communal land Return on investment – 1/3 of costs earned back in first 6 months Goodwin H & Boekold (2010) Beyond Fair Trade - enhancing the livelihoods of coffee farmers in Tanzania Chap 12, pp in Jolliffe L Coffee Culture, Destinations and Tourism Channel View Publications, Clevedon

GiGs IMPACT (2008) Improved lives for Farmers GiG has worked with over 1000 Gambian producers (indirectly benefiting 5000 people), 90% of whom are women GiG is enabling farmers to move from subsistence to commercial farming. 4 million dalasi (approx. 98,000 GBP) directly into the hands of poor Gambian farmers for purchase of over 210 tonnes of produce Reduced Imports: GiG has reduced imports and increased consumption of locally grown produce, with benefits to local farmers and the environment.

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ASSET: The Gambia DFID funded project to improve market access for small scale producers – guides, fruit sellers, juice pressers, craft sellers, taxi drivers and bumsters. Action research: research – intervention – research Engaged the beneficiaries in data collection. 21

Official Guides Lack of promotion and negative presentation by the formal sector Too much competition with the sector. Bumsters are retrained as official guides – licensed Bumsters? Tourists bargaining too hard Incomes increased by 33%

Juice Pressers Registered association – Badging – Self-regulation overseen by GTA – Fixed prices and no hassling Income more than doubled Require access to clean water and toilet facilities

Kotu Beach Fruit sellers 2001/2002 earnings increased %

Craft Markets Reduce Hassle through codes of conduct. Demonstrations of craft working New products Labelling and interpretation Tailor made to order

Development Impacts: increased incomes. Fruit sellers: 50-60% Juice Pressers: 120% Guides: 18-30% Kotu Beach Craft Market: 300% and 43 new jobs. 60,000 British tourists spend £8.30/day in the informal sector - £5m / year

Industry engagement Some parts of the sector are looking for this – Kerala Responsible Tourism Network – A group of hotels in India – A Lodge near Cape Town – ASSET members in The Gambia – A lodge in the Peruvian Amazon – A Tour Operator ……. 27 If we can engage the economically poor in the data collection, and ensure that they own and can use their own data, we also empower then.