Tourism Value Chains:

Conservation International’s
Innovative Approach

An innovative approach to economic

growth, poverty reduction and creating
business incentives to conserve
biodiversity
Where are we engaged in
tourism?
 Different types of interventions for tourism
and development

Private sector:
inclusive business
models Tourism for local
Market access to economic
supply chains development
Tourism
Sector/Destination
MSEs
development
pact

Niche tourism

Not s focused
d im n

pove
Tourism
i

Development
scal micro

Infrastructure

rt y
uffic
Joint venture
e an

deals Attracting FDI

Too

iently
Community based Tourism promotion &
tourism arrivals

Source: ODI/ SNV 2007

 Mapping organizational interventions in
tourism and development

Private sector:
inclusive business
Market access to models Tourism for local
supply chains Tour Ops, Hotel economic
Oxfam, chains, TOI, TF, development
RT, FFT-SA
Tourism farmer projects Mesopartner
MSEs Sector/Destination
SNV, STEP?
development
Craft support
pact

Niche tourism MTDP (IFC/ADB)

Not s focused
d im n

pove
i

Development WB? Tourism

scal micro

Conservation, Infrastructure

rt y
heritage (inc WB)

uffic
EU
Joint venture
e an
Too

deals AWF, MAFISA Attracting FDI

iently
UNCTAD IFC, IFI’s
- SNV
Community based
tourism - Pro-invest Tourism promotion
NGOs, CI - EU - training UNWTO & arrivals

Source: ODI/ SNV 2007

 Economic Activities that are Globalized
Require Multi-scale Responses

We Align Scale of Planning and Action to Scale of Biodiversity and Threat

Isolated Conservation Projects (CI as Implementer)

Integrated Multi-scale Conservation Strategies

(CI as Facilitator and Provider of Technical and Financial Resources)

ƒ The same kind of response is required in tourism development:

ƒ Trans-boundary issues
ƒ Scale & Scope/ Depth & Breadth
ƒ Similar response: facilitate, TA & fund
ƒ Not running ecolodges anymore!
What is a Value Chain &

Why has the tourism program adopted a

Value Chain-based Approach?

The full range of activities that are value enhancing and go into
bringing a product or service to market.

• Value Chain-based approaches used widely in private sector and for

the past several years, the economic development community

• This concept has been extended beyond individual organizations &

can be applied to whole supply chains and distribution networks
 Value Chain Analysis:

What is it?

Value chain analysis focuses on the dynamics of inter-linkages within

the productive sector, especially the way in which firms and countries
are globally integrated

• Value Chain Analysis is a systematic way to understand end-market

segmentation, market value, the functions and roles of actors in the value
chain, their interconnected relationships, their constraints and
opportunities, costs, distribution of benefits, factors in the enabling
environment and supporting services markets affecting their
competitiveness

• The results of this analysis are a sector-wide vision, strategy and project
implementation processes that will lead to greater industry
competitiveness, increased benefits to conservation and human wellbeing
The Value Chain Framework
in Tourism
Project Areas

Ankeniheny-
Zahamena
Corridor (CAZ)

Menabe
Region
 Tourist’s Budget
4%
4%-- Tour Operators
Not retained in destination

55%-- International
Airlines

55%

14%--
Transportation
(75% airfare)

19%-- Hotels/
Restaurants
14%
In-country

5%-- Shopping/
Entertainment
19%

4%-- Attractions
5%
Site

4%
 Only one airline servicing the
destination constrains growth,
access to the region,
competitive pricing

No local excursion assembler

limits options for tourists,
increases costs for TOs, and
hinders marketing of MSEs

No local products and services

catering to high-end market—
high-end tourists fly in/ fly out
and do not stay in region—large
leakage

Several missed opportunities to derive more benefit

from tourism by offering more entertainment,
cultural, historical, or shopping opportunities for
tourists to spend more money locally. The lack of
infrastructure in community managed protected
areas hinders the ability of communities to derive
benefits from tourism

Over-utilization of marquee natural

resource attraction and no means to
extract local benefits

Lack of local input provisioning

reduces local benefits derived
from tourism industry and
limits economic opportunities
 Not enough high-end/ higher-
end lodging options to meet
the demand, land tenure issues

Guides are occupying the empty

niche of local excursion assembler.
They wield an unusual amount of
power, yet are not providing
professional, quality services in either
guiding or excursion arranging

Several unmet opportunities to increase local benefits

derived from tourism while providing tourists more
diversified experiences (no nighttime entertainment,
cultural attractions, limited shopping opportunities, few
historical attractions)& natural resources are not well
utilized-- not enough diversity in the utilization, and
areas are not well exploited (in terms of value derived
from natural attractions that could fund economic or
social development and better environmental protection)

Few locally sourced inputs limits

the local benefits derived from
tourism
 Results to Date (year 2 of 3 year project)

2006* 2008**
% of project beneficiaries considered “very poor” (PAT) 11% 4.5%
# micro or small enterprises participating in project 221 771
% women owned/managed MSE participating 14% 37%
% change in revenue community managed PAs -- 38%
# improved policies/ laws (concessions in PAs inc) -- 5
# industry associations adopting new guidelines 0 15
# of outbound TO linked with local Tour Operators ~200 3,348
# of public-private dialogue mechanisms utilized -- 29
# of new sector- specific support services for MSEs 0 6
*Baseline year
**results for 2008 only, not cumulative figures