1. Nathan Associates Inc. Briefing Maputo February 17, 2005 USAID s Northern Mozambique Tourism Development Project

2. Agenda Project Background –Design Phase Field Research Value-Chain Approach Implementation Framework Timeline and Next Steps

3. Objectives of Design Phase Field Visits and Team Composition –Cabo Delgado –Nampula –Niassa –Cross-cutting Themes Framework Development Working Group Consultation with Minister Sumbana 1. The Design Phase – Field Research The Design and Implement approach to the project has allowed for a far more in-depth assessment of potential interventions and initiatives

4. Selection On-Trip Post-Trip Segmenting Demographics Planning window What is planned in advance Role of travel agent or distribution channel Information sources Trip motivations Travel partner or group Disposable income Price/value decision factors Final selection criteria Preferred package and method of purchasing Experiences desired Value Proposition Arrival/Departure Border formalities- visas, immigration, customs, baggage, transport Specific needs –Accommodations –Restaurant –Retail –Entertainment –Transportation –Activities –Services Resulting experience Experience feedback Frequency of returning to a destination Planning After On the Frontier, Bermuda Competitiveness Project 1. The Design Phase – The Value Chain Approach The Value Chain segmentation starts at the planning phase of a holiday and extends through to the post-trip analysis for any segment of the market

5. Servi ces Activit ies Shopping Purchases Shopping Purchases Taxat ion Food & Drink Attractio ns Infrastructur e - Airlines - Shipping Companies - Car Hire - Coach - Taxi - Ports - Roads - Airports -Telcom - Builders -Fitting Developer s - Utilities - Hotels - Other Accommod ation - Camping - Food - Drink - Farm Produce - Fruit -Restaurant - Retail - Craft - Art - Books - Guides - Admission Tours -Equipment Hire - Diving - Rock Climbing - Nature Reserve - Guides - Medical Health Business - Telephone Exchange - Hair Dressing - Taxation Streams to Gov-t - Landing - Entry - VAT - Duty Accomm odation 1. The Design Phase – Value Chain Approach The on-trip component audit guide provides a framework for a detailed analysis of what the Government and the Private sector need to address

6. Step 1 Step 2 Step 3 Step 4 Step 5 Analyze Current Situation Set Tourism Strategy Develop a Value Delivery System Articulate Competitive Positioning Strategy Execution 1. The Design Phase – Value Chain Approach The Value Chain Approach provides an effective tool to define where constraints occur and where project interventions can have the greatest effect

7. Agenda Project Background –Design Phase Field Research Value-Chain Approach Implementation Framework Timeline and Next Steps

8. Implementation Framework Our overall implementation plan will incorporate eight areas. 1. Ensuring Synergies with GOM National Tourism Strategy 2. Addressing USAID s requirements 3. Creating an overarching, umbrella framework; the Northern Mozambique Tourism ARC 4. Designing an Institutional Framework which promotes public:private sector partnerships 5. Addressing key Policy Reform and Enabling Environment constraints 6. Designing a Marketing, Branding and Promotion strategy for Tourists and Investors 7. Creating an Integrated Destination Management Approach in Cabo Delgado 8. Leveraging Resources for New Tourism Development in Nampula and Niassa

9. 1. Ensuring Synergies with GOM National Tourism Strategy By 2020 Mozambique is Africa s most vibrant, dynamic and exotic tourism destination, famous for its outstanding beaches and coastal attractions, exciting eco-tourism products and intriguing culture, welcoming over 4 million tourists a year. Conservation is an integral part of tourism and the combined benefits constitute a significant contribution to National GDP bringing wealth and prosperity to communities across the Country. Strategic Plan for the Development of Tourism in Mo ç ambique (2004 – 2013) The Government of Mozambique has a clearly thought out and articulated Strategy and Vision for developing tourism

10. Focus: Provinces of Cabo Delgada, Nampula, Niassa and Zamb é zia. Exclusive destination for affluent segments, mainly marketed to international markets. Image of exclusive island destination with strong cultural influence. Unspoiled wilderness of Niassa to be cherished and used for further niche development (luxury eco-tourism, adventure, backpackers, hunting). Northern Mozambique can become Mozambique s most exclusive destination. Marketing and product development initiatives should strongly feature the exclusive and unique character of Northern Mozambique. Exclusive small resorts will arise along the coast and islands of Cabo Delgado. Icons of the North are the Pemba, the Quirimbas, Ilha de Mo ç ambique, Reserva de Niassa and Lago Niassa. Exclusive eco-tourism (adventure, birding, hunting, lake based) to be developed mainly in remote areas of Niassa and Cabo Delgado Province. Strategic Plan for the Development of Tourism in Mo ç ambique (2004 – 2013) 1. Ensuring Synergies with GOM National Tourism Strategy The focus for developing tourism stresses the exclusive nature of the north of Mozambique and the opportunities for targeting niche markets

11. Activities must contribute to increasing earnings, jobs and tourist numbers The Project must identify, prioritize and address critical policy issues which constrain tourism development Synergies with other donor initiatives need to be identified to ensure that the USAID initiative adds value The extent to which an environmental program needs to be incorporated must be assessed The role of local communities and the extent to which they can benefit from the project must be considered An effective implementation mechanism must be established Benchmarking will need to be undertaken in order to measure the impact of the project 2. Incorporating USAID s requirements The Project falls under USAID s Strategic Objective Seven which aims to increase labor-intensive exports

12. 3. Creating an overarching framework The Northern Mozambique Tourism ARC aims to promote Actions for Regional Cooperation. We used criteria to define priority interventions The intervention needs to have a direct links with providing goods and services to a customer set The intervention must have buy-in by all stakeholders Opportunities for business linkages should be sought Opportunities for gender integration into tourism development need to be considered All environmental issues must be highlighted Any policy implications must be elaborated Duplication with other donor or private sector activities needs to be avoided Are there opportunities to leverage other sources of funding

13. 3. Creating an overarching framework The Northern Mozambique Tourism ARC covers the geographic area where the majority of Project interventions are envisaged

14. Mission: To develop Northern Mozambiques tourism economy through a results-driven partnership of private sector, government and NGOs, with donor assistance to sustainably expand economic growth, job creation, entrepreneurial opportunities, social benefits, and national/provincial revenue base. Participatory Stakeholder Process –Private Sector –Government –Civil Society Regional Representation –Regional Coordinators –Intra-Regional Cooperation and Linkages 4. The Institutional Framework Previous experience in working with multiple stakeholders to develop tourism has demonstrated the value of an inclusive approach

15. New Approaches to Enduring Problems –Experiments with Ibo and Ilha da Mozambique Support and Advocacy for Multi-Sectoral Policy Reform Initiatives Spreading Information: Increasing Awareness and Access to Regulations Supporting New Policy Initiatives identified through ARC Forum Explore Mechanisms for Self Regulation 5. Policy reform and Institutional Change Policy reform and support in enforcement of existing and new policies will form an important cornerstone of project initiatives

16. Demand/supply analysis; quality assurance; market research; ICT Benchmarking; Information Systems and Decision Support Image Enhancement/Branding Geotourism Map Guide Potential Niche Market Opportunities –Aquatic Adventures: Sport Fishing, Scuba diving, Water Sports –Birding –Cultural/Archaeological –Hunting & Photography Safaris –Health & Wellness –Ecotourism –SAVE ( Scientific, Academic, Volunteer and Education ) 6. Marketing, Branding and Promotion We see two main sets of customers in terms of defining markets – the Tourist and the Investor. Within these customer bases broad categories exist.

17. 6. Marketing, Branding and Promotion We will use a range of tools to update and validate existing market analysis in strategic and new markets, for the north of the country

18. Priority focus building on existing resources: –Ibo Tourism Development Strategy –Cultural Heritage Development –Cooperative Marketing and Promotion –Upgrading Visitors Center –HRD/Training/BDS: Supporting Catholic University –Community Outreach (artisanal activities) –Catalytic Events Ameliorating obstacles and constraints: –Coastal Zone Management –Pemba Beach Land Use Plan Prepare projects for Tourism-Focused Enabling Infrastructure Priorities –Pemba Airport; airstrips –Northern Coastal road Develop other tourism proposals eligible for MCC funding –Health Services (eg. Hyperbaric chamber) –Agricultural Linkages 7. Creating an Integrated Destination Management Approach in Cabo Delgado Cabo Delgado provides an opportunity to build on established tourist infrastructure and services, to provide a relatively quick impact.

19. (Adapted from Strategic Plan for the Development of Tourism in Mo ç ambique (2004 – 2013)) Capitalize on Marine and Coastal Assets Capitalize on Marine and Coastal Assets Develop Eco-tourism and Wildlife Products Develop Ecotourism and Wildlife Products Integration Southern Africa Linkages with Southern Africa Capture the Strength of Culture Strengthen Local Communities and Culture Strategic Nicheand Source Markets Strategic Nicheand Source Markets Destination Mozambique Destination: Pemba/ Quirimbas/ Ibo Spatial Focus PATI, TFCA, Routes, Regions Spatial Focus PATI, trip circuits An Integrated Destination Management Approach will focus initially on the Pemba area and the Quirimbas National Park/Archipelago 7. Creating an Integrated Destination Management Approach in Cabo Delgado

20. US Department of Interior: Capacity Building and Training in Protected Area Management, Visitor Services, and Resource Management (Niassa) Developing proposal for Destination Management Plan for Ilha de Mozambique/Lumbo Prepare projects for Tourism-Focused Enabling Infrastructure Priorities –Airport and airstrip upgrades –Roads and bridges –Water and sanitation Develop other tourism proposals eligible for MCC funding: –Business Development Service/Guide; MICE Expansion –Health support services (eg. Malaria programs) –Agriculture linkages 8. Leveraging Resources for New Tourism Development in Nampula and Niassa Before meaningful increases in tourist arrivals can be achieved substantial development investment needs to be made in Nampula and Niassa

21. Agenda Project Background –Design Phase Field Research Value-Chain Approach Implementation Framework Timeline and Next Steps

22. February 20: Initiative recommendations to be submitted by team members March 5: Draft Implementation Plan Completed (for circulation and comment by team) Consultation with Stakeholders (proposed) and further revisions March 30: Draft Submitted to USAID for review and comment May 1: Project Implementation Commences (proposed)