Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012




         Governance Sy...
Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012




Consultant’s Report Fe...
Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012




    Foreword

This bus...
Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012



At the heart of the iss...
Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012


The consultants wish to ...
Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012




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Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012


6 Contacts and Sources f...
Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012




      Business Plans a...
Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012



EXECUTIVE SUMMARY

This...
Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012


structures, resource req...
Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012



Document Contents
Once ...
Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012


Africa, the Americas, As...
Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012



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Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012


STSC Marketing Strategy ...
Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012


A key initial challenge ...
Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012




[

    1. Recommendati...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012




                      ...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012




          A1. A Workin...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012

consumer information. Cer...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012

In stewarding this allian...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012

       Provide a forum wi...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012



  Figure A 2. STSC Gove...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012



The Four Key Program Ar...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012

lack of mutual recognitio...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012

region managing direct co...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012



At this stage, the STSC...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012




The Vision Part III: C...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012



Resourcing each develop...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012

Using Synergy to Capacity...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012

To achieve both a key don...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012

To turn the vision into t...
Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012




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  1. 1. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 Governance Systems, Business and Marketing Plans for Setting up and Running the Sustainable Tourism Stewardship Council (STSC) Output for Tender: International Accreditation System and Consolidation of National Sustainable Tourism Systems to Facilitate Competitiveness and Market Access for SMEs Component 2, Activities 2.9 and 2.10. (Tender coordinated by the Rainforest Alliance) STSC Business and Marketing Plan Development Process Gordon Sillence (with Supporting Information Supplied by Matthew Wenban-Smith) February 2007 Final v 3bi
  2. 2. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 Consultant’s Report Feb 2007 2
  3. 3. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 Foreword This business strategy document has been produced after a period of research and consultation with key stakeholders in the field of tourism certification during 2007, in fulfillment of the contract International Accreditation System and Consolidation of National Sustainable Tourism Systems to Facilitate Competitiveness and Market Access for SMEs - Component 2, Activities 2.9 and 2.10 STSC Business and Marketing Plan Development Process1. It takes full account of the research and recommendations described in the report “Sustainable Tourism Stewardship Council: raising the standards and benefits of sustainable tourism and ecotourism certification” (Rainforest Alliance, Final report, March 2003); UNEP’s Consultative Meeting on Sustainable Tourism Certification held in Rio de Janeiro in October 2005; the June 2006 Rainforest Alliance special session on the STSC in London; and other reports, conferences, meetings and recommendations by the main stakeholders in the STSC development process. The document’s main purpose is to ensure that there is a clear, common vision shared between the key actors in all global regions and that a step-by-step process is described so that those taking on the responsibility for implementing that common vision have a guiding working document to facilitate the path ahead. The reader is advised to read the executive summary to see a document summary and find out how this document is structured, then read the working vision chapter in Section A. Therefore, alongside the elaboration of the vision (which has involved a wide degree of consultation among the key stakeholders), contents includes in-depth supporting material such as the elaboration of a business plan that covers capacity building, marketing and development strategies, and a roadmap stakeholders can follow to reach the goal of establishing a viable organization that manages a global accreditation system for the sustainable development of the tourism sector. Each stakeholder should find references in these more detailed technical sections to their place in the overall process and those that have made comments should be able to note how their recommendations has been included. [More and more people are recognizing the need for sustainable production and consumption (SCP), but few realize how to manage all the economic, environmental and social interactions of this global process. The development of new global institutions of governance to match the business arrangements of the globalization process is essential. The United Nations has driven this concept through the development of Agenda 212. The Millennium Goals3 and the World Summit on Sustainable Development’s Plan of Implementation4 provide all the arguments necessary to support the creation of an STSC. They are the current commonly-agreed processes designed to guide stakeholders to move from ruthless economic development towards more sustainable patterns of consumption and production. Certification provides a measurable tool to gauge and monitor the true sustainability of such a transformation. 1 Coordinated by the Rainforest Alliance 2 Johannesburg Plan of Implementation (JPOI) UN 2002 3 www.milleneumgoals.org 4 www.johannessburgsummit.org Consultant’s Report Feb 2007 3
  4. 4. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 At the heart of the issue is a stakeholder value system – do we buy the green product, or go for the cheaper one? Do we as Westerners or Africans use regional products, or do we buy from China? Outcomes to these types of questions and depend on the knowledge and values of stakeholders taking these decisions. The clarification of the ethics of sustainable development is a current social debate taking place in the dialogue between governments and civil society and in the movement towards corporate social (and environmental) responsibility (CSR). At a fundamental level, the work of the STSC is about helping to create the value system of sustainable development5, a value system that is currently lacking in the mainstream public sector and private market activity, yet absolutely necessary as a guide to all tourism stakeholders’ responsible behavior.] The opportunity exists for the STSC to provide a common political platform which should unify the public and private sectors and local communities in a joint process of ‘good governance’6 of tourism sector activity. Within Agenda 21and within the creation of a framework of programs for sustainable consumption and production7, the tourism sector can be singled out as having the proportionate ability to do great harm and great good, depending on how it is conceived, implemented and managed. The tourism sector is a primary driving force of the globalization process often described as having a cross-cutting influence on the agricultural, forestry, energy and industrial sectors of national economies, and is currently considered to be the world’s largest growth industry. Certification of the quality of sustainable development in the tourism sector will therefore have a worldwide and cross-sectoral effect. This makes the travel and tourism business a clear common focal point for governments, business and civil society organizations who operate in all related sectors to pull together in the multi-stakeholder capacity-building efforts that are necessary at a global level to local level.] Recent actions at the highest level of global administration8 show how the subject of certification is clearly on the global agenda. In conclusion to the forward, the reader is reminded that this document represents a great deal of the embodied energy that many people have put into the STSC up to now from all corners of the world over a long period of time. Sponsors will be working with a range of dedicated and knowledgeable partners who will also continue their positive contributions to the work of bringing the STSC into being. Capacity-building the STSC over the next five years requires the multi-stakeholder effort that is necessary to achieve sustainable consumption and production, How that can be done successfully is elaborated in the three key sections of this document. It can be enacted upon immediately by taking action on the recommendations that are at the end of each chapter. 5 Law of Sustainable Development M Decleris DG Environment 2000 The value system of sustainable development is stated as the 12th and most fundamental principles that should act as a guide to responsible action. 6 ‘Good governance’ makes explicit the need for the five qualities of openness, participation, effectiveness, accountability and coherence in public administration processes. 7 JPOI section III Changing unsustainable patterns of consumption and production 8 UNEP Marrakech Process Minutes Dec 2006 Consultant’s Report Feb 2007 4
  5. 5. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 The consultants wish to thank all those who have participated in the preparation of this report by providing direct feedback and guidance, including: Alfredo Dueñas SmartVoyager, Ecuador Alice Crabtree TIES Asia-Pacific, Australia Amos Bien The International Ecotourism Society, Costa Rica Ariane Janer Instituto Hospitalidade, Brazil Cathy Parsons, independent certification specialist Chris Thompson UK Federal Tour Operator, FTO Eugenio Yunis UNWTO David C. Gibson Representing the Africa Travel Association Harro Boekhold Representing VISIT Herbert Hamele Ecotrans, Germany Heiko Crost Fee (Blue Flag), Germany Jason Keating, Green Globe 21 Jennifer Seif FTTSA, South Africa Jose Augusto Pinto PCTS Brazil Jose Luis Cabada Representing USTOA Lois Peeler Aboriginal Tourism Australia, Australia Michael Conroy Yale Program on Forest Certification Naut Kusters ECEAT-Project, Netherlands Reinaldo Figueiredo ANSI Accreditation Department, USA (observer) cc: Steven Bipes Regina Reyes Green Deal Guatemala Neel Inamdar Conservation International, U.S.A. Paul Hohnen GRI Paulo Meozzi European Environment Agency Steve Noaks, PATA’s Sustainable Tourism Committee Stefanos Fotiou UNEP – Sustainable Tourism Task Force Susan Azevedo BCSD Portugal Tania Arantes Ministry of Tourism, Brazil As well as the following Rainforest Alliance’s staff and collaborators : Annemieke Wijn Bernward Geier Brendan May Tensie Whelan Chris Wille Diane Jukofsky Karin Kreider Nancy Vallejo Richard Z. Donovan Henk Campher With particular thanks to: Ronald Sanabria and Silvia Rioja of the Rainforest Alliance Sustainable Tourism program and Herbert Hamele of Ecotrans, Germany, for their ongoing accompaniment and facilitation of the consultancy process. Consultant’s Report Feb 2007 5
  6. 6. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 Contents Foreword....................................................................................................................... 3 Contents........................................................................................................................ 6 EXECUTIVE SUMMARY ............................................................................................... 9 Section A - The STSC Working Vision Introduction to the Vision...................................................................................... 19 The Vision Part I - STSC Structure and Function.................................................... 21 Governance Structure ........................................................................................... 21 STSC Activities....................................................................................................... 21 STSC Structure and Function – Satellite View .................................................... 22 The Four Key Program Areas of the STSC. ............................................................. 24 a) STSC Outsourced Accreditation Program ...................................................... 24 b) STSC International Standards Program .......................................................... 24 c) STSC Marketing Program.................................................................................. 25 d) STSC Training and Support Program .............................................................. 25 The Vision Part II – Phased and Timed Establishment of the STSC ..................... 25 1. The Network Phase 2007 ................................................................................................. 25 2. The Partnership Phase 2007-8 ...................................................................................... 26 3. The Accreditation Phase 2008 -2012 .......................................................................... 26 The Vision Part III: Capacity-Building the STSC Process ...................................... 28 Stakeholders Supporting the Vision .................................................................... 30 Section B - Details Behind the Vision 1 STSC’s Specific Characteristics - the Global Organization Framework............ 33 2 An Implementation Strategy for the Establishment of the STSC – Networking, Partnership and Accreditation Development..................................... 42 Network Phase ....................................................................................................... 42 Partnership Phase.................................................................................................. 42 Accreditation Phase............................................................................................... 43 3 Specific Operational, Administrative and Financial Needs of the STSC to meet the Implementation Strategy ....................................................................... 48 4 A Business Model of Financial Sustainability –Planning Revenues to Guarantee the STSC’s Sustainability ....................................................................... 57 Focus on potential funding sources and strategies for raising funding. ......... 64 Focus on revenues from STSC services . ........................................................... 68 5 Marketing Strategy – Growth and Development Strategies that Reflect Sectoral Conditions ................................................................................................... 71 A Seven Step Marketing Program for Raising the STSCs Profile...................... 74 Building a Marketing Alliance among ‘the Coalition of the Willing’ .................. 75 Networking Marketing Technical Infrastructure across Networks & Regions 76 The Marketing Message......................................................................................... 78 Consultant’s Report Feb 2007 6
  7. 7. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 6 Contacts and Sources for Information & Support – a Stakeholder Grid .......... 83 7 Timetabling Implementation: 2006 -2012 Multi-Stakeholder Road Map............ 87 Multi Stakeholder Roles ........................................................................................ 88 8 Conclusion............................................................................................................... 95 SECTION C - Decision Support Tools 1 A Table of Governance and Institutional Characteristics of Each Phase.......... 99 2. Financial Planning Spreadsheets for the Networking Partnership & Accreditation Phases............................................................................................... 111 3. 0perational Procedures & Financial Spreadsheets - Accreditation Phase A) STSC Governance Structures- Options for the Accreditation Phase.. 117 B) Spreadsheet of Accreditation Phase Income - Expenditure Options.. 117 C) Explanation-Discussion of the Accreditation Phase Spreadsheets.... 117 4 : UN Type II Partnership Registration Form ...................................................... 118 5: DestiNET .............................................................................................................. 125 6 WSSD Framework of Programmes on Sustainable Consumption and Production ................................................................................................................ 127 7. Glossary of terms................................................................................................. 129 8: Bibliography and Websites................................................................................ 133 9: About this Consultancy...................................................................................... 135 Project Outputs & Deliverables .......................................................................... 135 Consultant’s Report Feb 2007 7
  8. 8. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 Business Plans and Marketing Strategy for Setting up and Running the Sustainable Tourism Stewardship Council. A NOTE ON CONTRACTED CONSULTANCY OUTPUT DELIVERABLES DETAILED IN THIS DOCUMENT: The following chapters are matched with the number of each contracted output. Introduction to a Working Vision for the STSC (output 1) The Global Structure (output 2) Business Plan: o Growth Strategy (output 3) o Financing, (outputs 4 & 5) o Marketing (output 6) Key Stakeholders (output 7) Roles and Responsibilities (output 7) Timetable of Development 2006 -2012 (output 8) A full list of the project outputs and deliverables is available in section C ch 8 of this document. An accompanying project final report discusses the preparation of this document in detail. Consultant’s Report Feb 2007 8
  9. 9. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 EXECUTIVE SUMMARY This document describes a common strategic vision and accompanying technical implementation process for the development of the Sustainable Tourism Stewardship Council (STSC). A working vision is presented as to how the STSC goes about setting up a global tourism certification accreditation process, with an accompanying standards, marketing and training range of services. Additionally, it contains more detailed technical descriptions of each part of the process. In its totality the document therefore covers the following chapter subjects: Section A - THE VISION 1) A Working Vision for Setting Up and Running the STSC Section B – THE DETAILS 1) The Global Structure of the STSC 2) Business Plan: A 3-Phase Growth Strategy 3) Specific Operational Needs 4) Financing the Capacity-building Process 5) A Seven Step Marketing Strategy 6) Key Stakeholders 7) A Multi -Stakeholder Roadmap: Roles and Responsibilities 2006 - 2012 Section C – THE TOOLS 1) A Table of Governance for the STSC Development Phases 2) Operational Procedures & Financial Planning Spreadsheets for the Networking and Partnership phases 3) Operational Procedures & Financial Planning Spreadsheets for the Accreditation phase 4) UN Type II Partnership Process 5) DestiNET Portal on Sustainable Consumption and Production (SCP) for the Tourism Sector 6) WSSD Plan of Implementation, CSR and the Framework of Programs on Sustainable Consumption and Production (SCP) 7) Glossary of Terms 8) Bibliography and Web References 9) About this Consultancy Any potential funder can read this document and gain a clear idea of what they will be funding, how much it is going to cost, and what are the expected results. Additionally, the document provides the business case for developing an STSC – donor and funding money is a good investment that has a breakeven and payback point (see section B ch 4). A self-sufficient STSC functioning as a global umbrella for sustainable tourism certification programs will serve to help engineer more responsible tourism sector activity. For a full financial picture the Excel Workbook ‘STSC Business Plan Overview’ will take the reader directly to the heart of financial issues. Document Structure In this document, section A provides a working vision of the form and function of the STSC. Following on from this one can explore detailed descriptions of governance Consultant’s Report Feb 2007 9
  10. 10. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 structures, resource requirements and capacity building measures, marketing strategies and time-tables of implementation in Section B. Section C contains a comprehensive set of annexes that describe useful tools to help those responsible for STSC implementation, including a discussion of alternative choices to those presented in the primary recommendations. It also includes a glossary of terminology and a bibliography to mitigate the use of technical, business and political language (which may not be a part of everybody’s common vocabulary). Sections B and C provide the detail for the vision described in section A, which leads to a certain overlap of content. However, the document is not intended as a novel to be read from cover to cover, but as a technical manual in which some sections are more relevant for some people, and other sections for other people who may have to read the document at a different stage of the STSC’s development cycle. Therefore the three sections structure the STSC message for different audiences and show different depths of details of the same STSC development process, and may be read independently of each other. Taken as a whole, the document enables the reader to see the substance and implications behind the overall global vision. As such stakeholders will be able to read about who will be involved and what needs to be done. In particular, potential funders will be able to see a comprehensive profiling of activities and the necessary funding being sought to realize this process. The STSC concept has always been based on the premise that marketing certified products in the global marketplace requires a globally recognized, trustworthy accreditation process than can independently verify the claims of national or regional certificates, brands, and labels. Success in the marketplaces for forest, marine and organic products has provided models that have now been applied to the tourism sector. The threat of not being seen to deliver the required level of transparency and credibility needs to be countered by clear governance structures with transparent policy-making and accountable council members, directors and staff. A poorly resourced, dysfunctional international council will not win global business or consumer confidence. A clear and common vision is fundamental to achieving a positive STSC process, a vision that needs to be shared and even ‘owned’ by those who are intent on making the process happen. Supporters will need to understand the idea that accreditation brings added value to certification programs, and for those organizations that assist the development of certification initiatives, accreditation assures quality and credibility for those initiatives. Mission The core mission of the STSC is to enhance the sustainability of tourism operations by ensuring better environmental and social performance, and improved economic benefits to local communities and to certified businesses worldwide. The STSC will achieve this mission through the setting up of a global stakeholder partnership responsible for the development of a trustworthy international standard setting and accreditation system. This system will guarantee independently verified, internationally recognized certainty and transparency for all tourism sector certification programs. At the same time it will offer training, support and marketing services to certification bodies and other stakeholders in order to increase the both the number and quality of certified sustainable tourism enterprises. Consultant’s Report Feb 2007 10
  11. 11. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 Document Contents Once this vision has been elaborated in Section A, Section B continues by going into the details behind the vision document. It starts by clarifying the global organization framework (ch1), showing how the sub-global territorial regions can be related to a multi- stakeholder global body. A Three phase Implementation Strategy involving Networking, Partnership and Accreditation Development Phases (ch 2) is then detailed on a step-by- step quarterly basis. Figure 1. Three-phased Development of the STSC Core Governance Body & Staff Knowledge STSC Network Temporary Steering Phase Committee covering 2007 global regions 0 STSC Partnership Executive Partnership Board– Phase Four way multi-stakeholder Development 2007 - 2008 component Officer And four way regional STSC representation Global 12 seats Knowledge Network on Sustainable Tourism STSC Certification Stakeholder Council 32-40 Members Accreditation Organisation STSC Board of Phase Directors 2009 - 2012 12 Executive Director and Program Staff 7-13 3 Phase Development Strategy The STSC-Network phase (estimated at 6 months) shows a design for a global knowledge network on sustainable tourism certification, covering the global regions of Consultant’s Report Feb 2007 11
  12. 12. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 Africa, the Americas, Asia and Pacific, and Europe. This phase is intended to develop communication and broaden the membership base. In the following STSC-Partnership phase (18 months) the knowledge network members start working together with a common purpose, organized in a multi-stakeholder democratic structure with an executive board at the helm. A four way division between Intergovernmental organizations, donors and national government; tourism intermediaries and associations; certification bodies; and NGO and consumer groups is recommended, with options on social environmental and economic chambers for reaching agreements on standards. The final 3rd STSC phase sees a functional global organization overseeing the four separate but related program areas: accreditation, standards, training and marketing. Here a stakeholder council, board of director and executive staff of 7 -9 employees, modeled on similar bodies such as the FSC and MSC The Financial Bottom line The elaboration of this 3 phase process allows the specification of the Operational, Administrative and Financial Needs of the STSC to meet the framework and strategy requirements (Cf Section B ch 1, 2, & 3). Staffing levels, office space, IT requirements, legal fees and committee meeting schedules are detailed. The intention is that donors and supporters can clearly see what resources the STSC needs and how they will be deployed, by whom, and when, in the efforts to make the global tourism process more sustainable. ]. Therefore a Business Model of Financial Sustainability is defined in section B ch 4, laying out the full costs and revenue generation calculations. Seed funding in the STSC-Network and STSC-Partnership phases is needed to precede core funding for the STSC-Accreditation phase, and the network and partnership phases are structured to have very low overheads in order to meet the reality of raising funds in these initial stages The bottom line of the STSC is provided in both table and graphical formats below figures 1 and 2. It shows that after the initial funding process, the STSC will be in a position to generate sufficient revenues to be self-supporting by the year 2017. The figures reveal an organization with a core staff of 7 - 9people, with an annual revenue stream of $643,600 US dollars, and annual costs averaging $1,238,463 million USD at the end of this business plan in 2012. After this point the STSC appears capable of increasing its revenues to over $1.2 million by 2017. to meet the average annual cost of the project (estimated to be US $1,238,463.) Yearly minimum and maximum levels of funding (See graph 1), show an annual funding line of US$1.3 million can be plotted to ensure financial capacity is guaranteed year on year for cash flow purposes, though recommendations are made for funding levels that meet the maximum requirements expressed in this business plan (figure 5). Whatever payment breakdown is chosen, the total figures over a six year period for developing a full scale accreditation organisation range between a minimum of US $ 4,849,366 and a maximum of US $7,498,767, depending on how optimistic the revenue forecasts have been. For the final five years, funding is reduced annually until a breakeven point is attained ten years from now Consultant’s Report Feb 2007 12
  13. 13. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 Minimum & Maximum Funding Requirements 3,000,000 Income from Services 2,500,000 Total Costs US Dollars 2,000,000 M inumum Funding Requirement 1,500,000 M aximum Funding Requirement 1,000,000 Recommended Funding Level 500,000 Linear (Minumum Funding Requirement) 0 Linear (Maximum Funding Requirement) Linear (Recommended 1 2 3 4 5 6 Funding Level) Annual Breakdown Income from Services 5,000 70,000 113,542 445,052 813,620 1,202,188 Total Costs 266,700 450,400 1,392,200 1,385,050 1,566,170 2,370,259 Minumum Funding Requirement 261,700 380,400 1,278,658 950,000 752,549 1,226,060 Maximum Funding Requirement 266,700 450,400 1,392,200 1,385,050 1,566,170 2,370,259 Recommended Funding Level 358,550 358,550 1,695,417 1,695,417 1,695,417 1,695,417 STSC Phases years 1 to 6 (2007 -2012) Figure 2. Income and Expenditures with Funding Requirements 2007 - 2012 To achieve this development of services, the following estimates provide an indication of targets that the STSC will have to meet to be self sufficient (Figure 2). The graph in Figure 4 shows the point at which total income from services reaches a sufficient level to cover costs. This occurs after a 10 year period in 2017. In the table, the revenue figures are given in terms of targets, which are then given a financial value for the likely revenue for the year 2017 of US $1,261,000. This revenue proves to be sufficient to meet a cost efficient STSC operation that functions on an annual budget of just over US $1.2 million. Figure 3 STSC Point of Self Sufficiency 2017 2013 2014 2015 2016 2017 2017 Projected STSC Self sufficiency Income INCOME Estimates of End-Users US$ STSC Members 207 227 250 275 303 249669 Training Events 1049 1154 1269 1396 1536 383933 Number of Accreditations 6 4 4 2 2 4,000 Accreditation renewals 28 30 32 32 32 32,000 Trademark Marketing Fees 490 539 593 652 717 591454 A Total Income 821423 903565 993922 1093314 1261056 1,261,056 EXPENDITURE Staff costs 721,770 650,650 652,602 654,560 656,523 656,523 Legal, Technical, Design 468,000 351000 352,053 353,109 354,168 354,168 Travel & Events 328,000 246000 184500 185,054 185,609 185,609 Office Costs 48,400 48,400 48,545 48,691 48,837 48,837 B Total Costs 1,566,170 1,296,050 1,237,700 1,241,413 1,245,137 1,245,137 Profit- Loss Projection (A – B) -744,747 -392,485 -243,778 -148,099 15,918 15,918 Consultant’s Report Feb 2007 13
  14. 14. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 Breakeven Projection 2,500,000 Revenue from Services Minimum Funding Projection 2,000,000 Total Cost Maximum Funding 1,500,000 US$ 1,000,000 500,000 0 1 2 3 4 5 6 7 8 9 10 11 Revenue from Services 5,000 70,000 13,542 1 445,052 813,620 1,202,188 821 ,423 903,565 993,922 1 ,093,314 1 ,056 ,261 Minimum Funding Projection 261,700 380,400 1,278,658 950,000 752,549 1,226,060 777,423 428,316 283,316 1 ,590 91 0 Total Cost 266,700 450,400 1,392,200 1,385,050 1 ,566,1 70 2,370,259 1,566,170 1,296,050 1,237,700 1 ,41 ,241 3 1,245,137 Maximum Funding 266,700 450,400 1,392,200 1,385,050 1 ,566,1 70 2,370,259 1,566,170 1,296,050 1,237,700 1 ,41 ,241 3 1,245,137 Year of Operation 2007 -2017 Figure 4 A Self-Sufficient STSC 2017 In graphical format a second calculation (Figure 4 above) shows target figures from the self-sufficiency estimates being met, with mimimum and maximum funding levels show for the whole period. To realize this vision of the STSC’s development, the following guide to levels of funding are therefore recommended: 1. The STSC should find the Networking and Partnership phase funding separately from final STSC-Accreditation phase funding. 2. the STSC should look for donors to pay US$1.7 million per annum for the four year start up period to 2012. 3. The funding review in 2012 should deal with the final five-year declining funding requirements needed to complete the STSC’s self sufficiency Figure 5 Recommended Funding Request Levels Funding Implications US $ US $ Recommended Levels for Request for Funds Funding Level Recommendations Total Annual Average 2007 Network Phase (6 months) 87,200 358550 2007-8 Partnership Phase (18 months) 629,900 358550 2009 -2012 Accreditation Phase (4 years) 6,781,667 1695417 2013 -17 Post Funding Review (5 years) 1,680,645 336129 Total 2007 -2017 9,179,412 9,179,412 This level of funding will create a surplus cash flow can be drawn down on during periods of low revenues, and will provide stability at the end of this business plan. Consultant’s Report Feb 2007 14
  15. 15. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 STSC Marketing Strategy – Developing Multi-Stakeholder Collaboration A Marketing Strategy is incorporated into the business plan ( Section B ch 5), reflecting current sectoral trends. The strategy includes marketing the STSC itself to establish a global brand as well as promotion of certified sustainable tourism businesses. Two further projects develop a strong IT marketing capability for the STSC and also bring it into the wider sustainable development process of Agenda 21. The execution of this strategy is linked to the development of a framework of progammes for sustainable consumption and production, corporate social and environmental responsibility initiatives and cross-marketing with other accreditation organizations. The people and organizations who are key actors or potential supporters are then pinpointed in a stakeholder grid ( Section B ch 6). Finally, chapter 7 in Section B shows the timetabling of the implementation program in a Multi-Stakeholder Road Map to the year 2012, with roles and responsibilities defined to ensure the realization of the STSC on a global scale. Useful Administrative Tools for Those who will be Responsible for Implementation In Section C, a set of potential tools for the stakeholders to use to make these steps are offered for consideration, such as European Environment Agency’s Sustainable Tourism Portal – DestiNET and the United Nations WSSD Type II Partnership process. They are current tools constructed for the purpose of building the technical and institutional support networks considered necessary for Agenda 21 implementation. Behind such tools the Global Ethics (UNWTO Global Ethics) and guidance on sustainable tourism implementation (Making Tourism More Sustainable – A Guide for Policy makers ‘UNEP UNWTO Publication 2005) that should be guiding all stakeholders are clearly elaborated, and can provide a solid common bond between stakeholders at the table. Facing the Challenges Ahead Capacity-building the STSC is possible and this business and marketing plan shows how, under current circumstances, pragmatic opportunities to obtain further support and funding exist in the contemporary tourism sector development process. What is needed is that the STSC links the issue of a global sustainable tourism accreditation process to the issues of good governance, sustainable consumption and production and corporate social and environmental responsibility. Within the existing multi-stakeholder mix of global actors, networking and partnership-building offer the means of meeting the challenge of finding agreement, obtaining resources and accessing opportunities available in these related (SCP,CSR and good governance) processes. Between 2007 and the year 2012 there is a great deal to be done. The strength of the process lies in the large number of stakeholders who support the creation of an STSC, the five years of careful planning that has gone into it up to now, and a certain dedication of those individual professionals within organizations involved in the implementation of the concept of sustainable development itself. On the other hand, the weakness of the process lies fundamentally in having no clear source of finance for the core program, accompanied by a similar lack of resources in those organizations which have initiated and developed the process. Consultant’s Report Feb 2007 15
  16. 16. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 A key initial challenge is to bring to the same table all programs that feel strongly about their standards to share with the others and define common requirements that all accredited programs should look for in the field. The multi-stakeholder roadmap (section B ch8) shows how this can be agenda-ed, discussed and timetabled for agreement. Additionally, funding the institutional building process is seen as the most difficult challenge that the STSC executives will have to face, but heart can be taken from other similar accreditation schemes such as the Forestry Stewardship Council (FSC) or Marine Stewardship Council (MSC) who met and overcame the same challenges. Utilizing the energies and synergies of the existing supporters is one way of ensuring bottom up progress, whilst work is conducted to find major sponsors. By widening the network, it should be possible to attract corporate sponsorship, intergovernmental funding, national funding, and even regional contributions. The aim is to place the STSC firmly in the wider global process of sustainable development, and in particular those sub-sects focused on Sustainable Consumption and Production, and Corporate Social Responsibility. It is therefore within the matrix of stakeholder interaction around these sustainability themes that STSC-Network and STSC-Partnership should grow and emerge into the STSC-Accreditation process, with each partner contributing in some way to the overall structure and function, whether that be in-kind/financial assistance or dialogue around standards. Next Steps In conclusion. this consultancy has been conceived around developing a working vision of the STSC and then providing a set of business planning and marketing strategies which make up the main part of this document set. Readers should be able to go to any level of detail of the STSC three stage process and see what the goals of the STSC are, how the vision can be manifested, by whom, with what, and by when The next steps of development can now quickly move towards a slightly enlarged Temporary Steering Committee based on the existing steering committee, with invitations going out organizations who’s presence helps round off the multi-stakeholder nature of the temporary committee. This group should then agree on: • a short term work program 2006/2007 as defined in the network stage tasks • a work group to make this happen Further consultation and discussion is then needed by the STSC stakeholders themselves to qualify, modify and endorse this document accordingly, It is therefore recommended that the options available in this report be circulated to prospective STSC members and supporters for review and comment. Comments should be collated, and made publicly available. They should then be considered by a balanced sub-committee, established by the interim STSC Board, and a model adopted as necessary to achieve the broadest possible support Therefore, in each chapter a series of recommendations are stated with the intention of labeling the elements of the work programme. The STSC-Network Phase developments elaborate milestones that this work group needs to meet to achieve its goal, ie, forming the global knowledge network on tourism certification Consultant’s Report Feb 2007 16
  17. 17. Business Plan and Marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 [ 1. Recommendation for STSC Work Programme: 1) Agree to set up a work group and adopt the above text as the summary overview of the STSC capacity building strategy 2007-2012, with the intention to discuss and act upon each specific chapter recommendation. ‘That’s the end of the Executive Summary. … Section A now talks you through the full STSC Vision in more detail …’ Consultant’s Report Feb 2007 17
  18. 18. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 A Vision for Setting Up and Running the Sustainable Tourism Stewardship Council Section A A Working Vision of a Sustainable Tourism Stewardship Council Consultant’s Report Dec 2006 18
  19. 19. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 A1. A Working Vision for Setting up and Running the Sustainable Tourism Stewardship Council. Introduction to the Vision The following text provides the basis of a shared vision of those who wish to set up a Sustainable Tourism Stewardship Council (STSC). It outlines the need for an STSC, its mission and key goals, and the phased development of all the requirements and characteristics covering the time period of 2006 -2012. At the centre point of the global vision for the STSC are the thousands of administrative departments, the hundreds of thousands of Micro/Small and Medium Enterprises (SMEs), the global corporations, and the millions of consumers who are in some way aware of- or involved in - making their consumption and production of tourism goods and services more sustainable. It is important to make sure that the knowledge base and decision support systems that these people then use to make their decisions are truthful, trustworthy, and transparent, so that these stakeholders can enjoy some certainty, reliability, and credibility in their consumption habits or production endeavors in any part of the global tourism market-place. Figure A1. An overview of the global tourism sector (This diagram shows stakeholders, territorial areas and potential certification points that monitor and report on sustainable tourism processes) Global Tourism Sector Value Chain Map Tourism Sector Destination Tourism Sector Knowledge Network Landscapes Market place Americas Europe Asia – Pacific Africa Business to Consumer Business to business Certification links links points For businesses and consumers to see what goods or services are truly part of the sustainable tourism process in this global marketplace, the role of certification systems are increasingly important in a world of marketing greenwash and lack of clear Consultant’s Report Dec 2006 19
  20. 20. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 consumer information. Certification systems offer a measurable benchmark of the sector’s moves towards responsible tourism practices by its numerous and diverse range of stakeholders. The existing certificates, awards, eco-labels - on a world wide basis – all require one thing in common – trustworthiness. There is both a need and an opportunity to make these certificates more acceptable and more visible internationally, by independently guaranteeing their credibility, and in doing so, ensuring agreement on conformity to a globally-acceptable benchmark or quality standard. In order to implement such a global credibility system, existing certificates and other interested organizations must take on the challenge of setting up a transparent international multi-stakeholder network that can in turn agree on common standards, then promote and support the overall development of certification processes. Reaching agreement, monitoring, networking and helping resource existing certification schemes, or establishing new ones at appropriate parts of the supply chain, requires a high level of interaction between many organizations and institutions - governmental, private sector and non-governmental. Up to now, the promoters of the Sustainable Tourism Stewardship Council have enabled this diverse range of stakeholders to act cooperatively and coherently in the global marketplace in a loose network, and are now moving towards a stronger and better-resourced partnership. Mission In view of this situation, the core mission of the STSC is to enhance the sustainability of tourism operations by ensuring better environmental and social performance, and improved economic benefits to local communities and to certified businesses worldwide. The Objectives The STSC will achieve its mission through the establishment of a global accreditation, standards, training, support and marketing organization, in order to increase the number and quality of certified sustainable tourism enterprises in the global marketplace. A trustworthy international standards setting and accreditation system will guarantee independently verified, internationally recognized certainty and transparency for all tourism sector certification programs. At the same time it will offer training, support and marketing services to certification bodies and other stakeholders in order to increase the both the number and quality of certified sustainable tourism enterprises. Listed specific objectives that set the targets in the program of implementation of this vision include: • The establishment of a global multi-stakeholder knowledge network on tourism certification. • The establishment of a global multi-stakeholder partnership to capacity-build the STSC. • Design and development of a global governance organization to implement the STSC mission. • Development of a trustworthy international standards setting process. • Development of a trustworthy international accreditation system. • Establishment of training & support systems. • Establishment of a global marketing service for certifying bodies and their end- certificate holders. • Provision of information to governments, NGOs, consumers, tour operators and other industry players about sound, accredited certification programs. • Increasing the number and quality of certifying bodies. • Increasing the number and quality of certified sustainable tourism enterprises. Consultant’s Report Dec 2006 20
  21. 21. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 In stewarding this alliance, there is a unique and valuable role to be played by the all members of the STSC – international and national government bodies, industry and business leaders, NGOs and other Civil Society groups - to design and oversee the global standard setting, accreditation, training support and marketing systems for certificates. At this point of development the STSC would be able to facilitate standards setting and accreditation, provide training, support, and a set of common marketing tools, pass on best practice information and offer international contacts. In such a system certification bodies can benefit from independent standard-setting and accreditation, and certified products and services from any part of the globe will be able to be show-cased in a truly global sustainable tourism market place. The Vision Part I - STSC Structure and Function This section of the vision describes ‘where we want to get to’ in setting up the STSC and its standard setting, accreditation, training, support and marketing functions. If the process to set up the STSC is successful, what will STSC look like, and what will it be doing? Governance Structure Firstly, the process will involve the creation of a legal entity which is currently being called “The Sustainable Tourism Stewardship Council” (STSC). The STSC itself will be an organization with characteristics similar in concept to the Forest Stewardship Council (FSC), Marine Stewardship Council (MSC) or International Federation of Organic Agriculture Movements (IFOAM). Its detailed organizational structure has been designed by looking at which good practices in these existing services can best implement STSC’s own unique tourism sector mission. As a legal entity the STSC will own STSC’s intellectual property on behalf of its members, including the copyright of its international standards, policies, procedures, logos, slogans, etc. The good governance principles of openness, participation, transparency, accountability and effectiveness9 will guide the management ethos of the STSC governing body and executive. The STSC will have a broad membership of key stakeholder organizations (e.g. NGOs, certification bodies, sustainable tourism service providers and public sector bodies) drawn from all global regions. The membership will elect a Board of Directors and also nominate members of a Stakeholder Council, who will be in turn be formally appointed by the Board of Directors. The Stakeholder Council will have economic, environmental, social and technical chambers representing members from all global regions, focusing on technical and political issues and allowing the board to concentrate on governance and strategic guidance for the STSC. The board of directors will appoint an Executive Director to lead the day-to-day operations of the STSC including the appointment of staff to oversee the four main program areas: standard setting, accreditation, marketing and training/support. (See Section B1 for details) STSC Activities The governance body, through its executive staff and membership organisations, will conduct the following activities: 9 EU Better Regulation Package June 2002 Consultant’s Report Dec 2006 21
  22. 22. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 Provide a forum within which associated members can share experiences and develop solutions to shared challenges with a view to continually improving the positive social, environmental and economic impacts of sustainable tourism. Promote the concept of sustainable tourism, educating and informing consumers and other stakeholders about its importance and value, and lobbying for its support and development. Increase credibility of sustainable tourism certification programs by ensuring that certification is objective and transparent by developing, promoting and maintaining international common standards to provide a clear and consistent framework for the recognition of credible regional, national or local sustainable tourism certification schemes. Set up and promote an (IAF/ISEAL)-endorsed international accreditation program to give potential consumers confidence in the credibility of participating sustainable tourism certification schemes in all parts of the world. Ensure that there are training and development programs in place to help service providers understand and meet STSC’s international standards, and that associated schemes are as widely accessible as possible. Provide information to consumers, tour operators and other industry players about sound, accredited certification programs, and ensure that there is an effective marketing program in place to maximise the added value for service providers who meet STSC’s international standards. Aim to increase participation of sustainable tourism products and services in national/regional schemes, increase the beneficial social and environmental impacts of those schemes and improve their own financial viability. Guide the establishment and development of new certification programs in countries where these are non existent but in coordination with other programs around the world. Reduce “greenwashing” and false sustainability claims by accrediting only credible, independent certification programs. STSC Structure and Function – Satellite View The diagram on the following page provides a ‘satellite’ view overview of the STSC final structure. In Section B ch 1 of this document, Functions of each aspect of this structure are given in more detail in a series of more specific ‘aerial’ views. The fine detail is provided in the business plan and marketing outputs (Section B 5&6), which provide a ground view of particulars– costs of premises, salaries, travel budgets, campaigns, etc. and also in a series of technical appendices in Section C. Consultant’s Report Dec 2006 22
  23. 23. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 Figure A 2. STSC Governance Structure and Function – Satellite View - STSC International Membership - Stakeholders from a Public Sector, NGOs, Certification bodies and Tourism Businesses Global Knowledge Network STSC Stakeholder STSC Board of Council Directors 12 32- 40 Executive Director and Program Staff 7-13 STSC STSC STSC STSC International Training Marketing Accreditation Standards and Program Program Program Support Program STSC technical STSC-contracted working groups accreditation body/ies STSC-endorsed ‘STSC-accredited’ training bodies certification bodies ‘STSC-accredited, STSC-trained certified tourism service service providers providers Consultant’s Report Dec 2006 23
  24. 24. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 The Four Key Program Areas of the STSC. Figure A 2 refers to four main program areas which are described below: The premise of the STSC business plan is that STSC must ensure that the objectives of each of these programs are delivered in the most cost-effective way possible without compromising credibility of transparency. Given STSC’s international scope it is likely that delivery of its marketing and its training & support functions will be highly decentralized, but that some central capacity in terms of strategic planning and coordination will be maintained. This means involving existing initiatives in the implementation work program. In terms of international standards development, STSC will certainly wish to maintain control over the approval of any STSC standards, but it has the option of outsourcing the development process if it wishes. The following paragraphs outline the key functional objectives of the four STSC program areas. a) STSC Outsourced Accreditation Program ‘Outsourcing the accreditation function has several advantages that are relevant to a potential STSC: • Outsourcing should allow economies of scale, which can be more cost-efficient and possibly lower accreditation fees for certification programs. • Outsourcing accreditation removes an implicit conflict of interest on the part of the standard setter that might wish to offer training and technical assistance to certification programs trying to reach accreditation.’ 10 It is recommended that the STSC will not implement its own accreditation functions. Keeping this function ‘in house’ might raise conflict of interest issues and costs. STSC will however ensure that certification bodies issuing certificates of compliance with STSC standards are properly accredited through ISEAL/IAF processes. There are two simple models for doing this: by entering into an exclusive contract with an existing international accreditation body; and/or by requiring accreditation by an IAF-affiliated national accreditation body. The financial and technical implications of outsourcing will be explored in the development of the STSC business plan (section B 3 & 4) and is given in more concrete terms in the IAS example cited in the Notes to the Budget (part III). The “STSC-accredited” certification bodies are certification bodies that have received accreditation by the accreditation body(ies) contracted by STSC. They are not accredited directly by STSC, but have received an accreditation which is recognized by STSC. Similarly the “STSC-accredited, certified service providers" are not certified directly by STSC, but they have been certified by a certification body which, in turn, has received an accreditation which is recognized by STSC. The three remaining programs are probably less sensitive in terms of conflict of interest concerns. Nonetheless these concerns may still exist, for example in the relationship between the marketing program and the international standards program. Perhaps more critical are the questions of cost and effectiveness in terms of delivering the programs’ objectives. b) STSC International Standards Program An international STSC standard is needed because without one accreditation cannot take place. Such a standard needs to be developed based on the existing experience and on standards that are being applied nationally or regionally. Fragmentation and 010 STSC Feasibility Report 2003 p172 Consultant’s Report Dec 2006 24
  25. 25. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 lack of mutual recognition among existing standards make it difficult for the buyers and consumers to understand the different labels and certificates. The STSC International Standards program will ensure that STSC international standards are developed in accordance with internationally recognized Codes of Good Practice. STSC International Standards will specify the international requirements which service providers must meet in order to receive ‘STSC endorsement’, and consequently to benefit from STSC based marketing, claims and promotion. At this stage the STSC will research criteria for an international standard and will develop a policy on the regional and local differences. Initially, certification programs would not be assessed against criteria/standards, however they could first consider their operations against the ISO 65 Guide on procedures for operating a certification body, as well as the feasibility of international standards based on the information collected 0by the STSC Standards Committee. c) STSC Marketing Program The STSC Marketing program will aim to maximize the marketing benefits available to ‘STSC-endorsed’ service providers. A seven-step programme initially addresses the need to market the STSC itself, then develops a globally coordinated programme to promote national, regional and local certificates and their end-users (see section B ch5) . d) STSC Training and Support Program The STSC Training and Support program will aim to ensure that service providers around the world have access to reliable guidance and advice on such things as the requirements for STSC endorsement, how to implement these requirements, and how to achieve certification of compliance with these requirements. The support program will ensure that certification bodies receive sufficient training where required, and also help with policy and communication issues. The Vision Part II – Phased and Timed Establishment of the STSC The STSC 2003 feasibility report recommended a three stage development process which is updated now as the STSC-Network, STSC-Partnership and STSC- Accreditation phases. Section B3 details a timetable of activities to be undertaken in each phase between 2007 -2012. Over this 6 year period, the partnership phase and consequent foundations for an accreditation capability is expected to be attained within a two year period. 1. The Network Phase 2007 The STSC Temporary Steering Committee is to move the STSC from its current loose ‘Network Phase’ towards a more specifically defined Sustainable Tourism Certification Knowledge Network. The STSC needs to establish itself as a global knowledge network on accreditation and standards setting for the sustainable tourism sector. Whether the issue is global benchmarks or baseline standards, environmental and socio-economic criteria/requirements, national accreditation system development, supply chain management, etc, there is some part of the STSC that deals with the issue. The multiple types of stakeholders interested in these issues need to be made aware of the STSC process and brought into a partnership pool that will nourish the establishment phases. The sub-global regional players will be the main drivers of coherence in this process. At this stage the membership structure of the STSC will be clarified, with each global Consultant’s Report Dec 2006 25
  26. 26. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 region managing direct communications with regional stakeholders, yet internationally unified in the STSC Members organization. Where, how and when to register the STSC as a legal entity will be decided at this stage. Goals can be agreed, and communications channels opened on a more formal and regular basis. The transformation the current loose network to this Knowledge network will be marked by the establishment of this information-sharing system and its user group. Policy and communication tools to facilitate a more formal networking process that clarify the tasks of good governance, legal formation, improved stakeholder communication and internal capacity building processes may include the establishment and/or use of existing Internet sites and other information mechanisms and alliance to maximize outreach. These mechanisms can then act as communications and information management tools for the knowledge network membership. Note that this phase, by building on the existing global networking efforts, should not take longer than six months. 2. The Partnership Phase 2007-8 Once this knowledge network is functional, stakeholders will be in a position to organize themselves into a more substantive ‘STSC-Partnership Phase’. The key objective of this STSC-Partnership Phase is to establish the necessary decision- making organization and infrastructure to permit STSC accreditation of sustainable tourism certification schemes. It is at this stage that the STSC's governance structure can be more formally defined, establishing an initial chambered Stakeholder Council, an acting Board of Directors and (still temporary) executive body. A development officer is expected to be appointed in this phase to coordinate fundraising and administrative processes. Both seed funding and full funding need to be accessed during the STSC-Partnership phase, so there will be a need for effective fundraising, supported by key partner organizations. An initial legal entity may be established to hold funds, manage employees and run STSC's own communication and work program. The STSC in the partnership phase will be geared towards fundraising, providing guidance to countries seeking to establish or upgrade certification programs, and reaching agreement on standards and processes. There will be a strong focus on the key tasks required to establish an effective accreditation capacity. STSC training, marketing, membership and support capacities will all be developed during this phase. The brand image will be developed in this phase Tools to facilitate the partnership phase can include the signing of stakeholders up to a UN Type II Partnership. This would enable the stakeholders to formalize the network structures, making the establishment of a fully functional STSC the key goal of the partnership. (See section C ch4, where a filled in example of the form exists) 3. The Accreditation Phase 2008 -2012 Here the STSC will achieve its final objective - when an adequately funded and resourced executive body will have an ever-growing capacity to support and promote "STSC-accredited" sustainable tourism certification programs and their certified tourism operations. The STSC-Accreditation Phase will see the full realization of STSC standard setting, accreditation, marketing, training and support programs. "STSC accreditation" will be provided by an appropriately qualified body independent of STSC. STSC itself will offer participating eco-labels and certification programs a range of marketing and capacity building initiatives. These programs would not necessarily be managed ‘in house’ but possibly outsourced, depending on the cost-benefit scenario for each program. Consultant’s Report Dec 2006 26
  27. 27. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 At this stage, the STSC is likely to have a global membership base with organizational representatives taking seats on a 32 seat Stakeholder Council, appointed by a Board of Directors composing of 12 elected members, with an executive team of 7 - 9 staff members to carry out the day to day work of delivering the STSC mission on behalf of its membership. The staffing level will reflect the STSC’s ability to raise funding, which will ultimately be reflected in the provision of services which are of value to its members and funders. Should substantial funding become available at an early stage of the partnership, the launch of the accreditation phase can be bought forward. Figure A 3. Three-phased Development of the STSC Core Governance Body & Staff Knowledge STSC Network Temporary Steering Phase Committee covering 2007 global regions 0 STSC Partnership Executive Partnership Board– Phase Four way multi-stakeholder Development 2007 - 2008 component Officer And four way regional STSC representation Global 12 seats Knowledge Network on Sustainable Tourism STSC Certification Stakeholder Council 32-40 Members Accreditation Organisation STSC Board of Phase Directors 2009 - 2012 12 Executive Director and Program Staff 7-13 Consultant’s Report Dec 2006 27
  28. 28. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 The Vision Part III: Capacity-Building the STSC Process The detailed financial and technical implications of this proposed 3-phased STSC structure will be explored in the STSC business plan (see section B chs 4 & 5). Before this it is necessary to show the types of activities that lead to the implementation of the 3rd phase (STSC- Accreditation.] Human and Capital Resource needs of the STSC Readers need to examine the tables and graphs in section 2 ch 5 The aim of an STSC of this report to gain a full picture of the human and capital capacity-building program resources required by the STSC. The recommended governance is to establish the fully process involves running a membership organisation with a functional STSC. This can stakeholder council of 32-40 representatives, plus a board of 12 be achieved in small steps directors. The suggested staff team consists of an Executive if necessary, depending on Director, Communications/Resource Development Officer, funding success. Seed Personal Assistant, IT Officer, Finance Officer, a Standards & funding or in-kind support Accreditation Officer, Marketing Director and Training Director, for a project coordinator is plus interns. Travel and Meetings budgets make up the main the first step, in parallel expenses outside of salaries, with the average annual cost of the with a small working group project estimated to be US $1,238,463. However it is more scouting for and dealing realistic to look at yearly minimum and maximum levels of funding with specific funding (See graph figure A4), in which an annual funding line can be opportunities across the plotted to ensure financial capacity is guaranteed year on year for global regions. This then cash flow purposes. Whatever payment breakdown is chosen, will lay the foundation for the total figures over a six year period for developing a full scale full funding for a secretariat accreditation organisation range between a minimum of US $ and project teams, 4,849,366 and a maximum of US $7,498,767, depending on how preferably housed in a optimistic the revenue forecasts have been. credible international institution. Minimum & Maximum Funding Requirements 3,000,000 Income from Services 2,500,000 Total Costs US Dollars 2,000,000 M inumum Funding Requirement 1,500,000 M aximum Funding Requirement 1,000,000 Recommended Funding Level 500,000 Linear (Minumum Funding Requirement) 0 Linear (Maximum Funding Requirement) Linear (Recommended 1 2 3 4 5 6 Funding Level) Annual Breakdown Income from Services 5,000 70,000 113,542 445,052 813,620 1,202,188 Total Costs 266,700 450,400 1,392,200 1,385,050 1,566,170 2,370,259 Minumum Funding Requirement 261,700 380,400 1,278,658 950,000 752,549 1,226,060 Maximum Funding Requirement 266,700 450,400 1,392,200 1,385,050 1,566,170 2,370,259 Recommended Funding Level 358,550 358,550 1,695,417 1,695,417 1,695,417 1,695,417 STSC Phases years 1 to 6 (2007 -2012) Figure A 4. Graph of Projected Income and Expenditures 2007 - 2012 Consultant’s Report Dec 2006 28
  29. 29. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 Resourcing each development stage of the STSC process will be achieved through a combination of fundraising and collaborative initiatives. On the one hand, national, sub-global and global funding applications need to be made to both the public and private sectors in the search for principle donors. On the other hand, willingness to pay on the part of individual sustainable tourism enterprises and certification programs will be actively encouraged in order to provide a membership based income stream. In between, initiatives from the STSC members will also be encouraged for targeted actions that contribute to the realization of the overall global structure. Figure A5 Breakeven Projection 2017 Breakeven Projection 2,500,000 Revenue from Services Minimum Funding Projection 2,000,000 Total Cost Maximum Funding 1,500,000 US$ 1,000,000 500,000 0 1 2 3 4 5 6 7 8 9 10 1 1 Revenue from Services 5,000 70,000 13,542 1 445,052 813,620 1,202,188 821,423 903,565 993,922 1,093,31 4 1 ,056 ,261 Minimum Funding Projection 261,700 380,400 1,278,658 950,000 752,549 1 ,226,060 777,423 428,316 283,31 6 1 ,590 91 0 Total Cost 266,700 450,400 1,392,200 1,385,050 1 ,566,170 2,370,259 1,566,170 1,296,050 1,237,700 1 ,41 ,241 3 1,245,1 37 Maximum Funding 266,700 450,400 1,392,200 1,385,050 1 ,566,170 2,370,259 1,566,170 1,296,050 1,237,700 1 ,41 ,241 3 1,245,1 37 Year of Operation 2007 -2017 To realise this breakeven point the following estimates of STSC service use, revenues and costs have been made|: Figure A6 STSC Point of Self Sufficiency 2017 2013 2014 2015 2016 2017 2017 Projected STSC Self sufficiency Income INCOME Estimates of End-Users US$ STSC Members 207 227 250 275 303 249669 Training Events 1049 1154 1269 1396 1536 383933 Number of Accreditations 6 4 4 2 2 4,000 Accreditation renewals 28 30 32 32 32 32,000 Trademark Marketing Fees 490 539 593 652 717 591454 A Total Income 821423 903565 993922 1093314 1261056 1,261,056 EXPENDITURE Staff costs 721,770 650,650 652,602 654,560 656,523 656,523 Legal, Technical, Design 468,000 351000 352,053 353,109 354,168 354,168 328,000 246000 184500 185,054 185,609 185,609 Office Costs 48,400 48,400 48,545 48,691 48,837 48,837 B Total Costs 1,566,170 1,296,050 1,237,700 1,241,413 1,245,137 1,245,137 Profit- Loss Projection (A – B) -744,747 -392,485 -243,778 -148,099 15,918 15,918 Consultant’s Report Dec 2006 29
  30. 30. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 Using Synergy to Capacity-build the STSC An undertaking like this needs one or several major donors to come forward. They will be adopting the role of primary supporters, who, perhaps alongside other partners, can reduce the financial burden of the STSC process to the point of self-sufficiency. At that same time as the three phases of STSC development are being realised, three key process have been identified that may be synergistic to the STSC mission. 1) The 2002 -2012 UN World Summit on Sustainable Development’s Johannesburg Plan of Implementation included a framework of programs for sustainable consumption and production (SCP). UN Member states are expected to deliver their SCP programs in which certification of tourism supply chain products and services can play a key part. 2) Corporate Social Responsibility (CSR) has become a major issue in the field of sustainable development, and key tourism corporate stakeholders are fully aware of expectations of them and their required roles vis-à-vis sustainable tourism development. 3) The globalization of the world’s economy and its representation on the Internet presents a window of opportunity in the development of international electronic business-to-business and business-to-consumer marketing and of green purchasing eContent. A primary supporter (one who can contribute to the financial requirements) may come from stakeholders involved in any of these processes. With the concept of mutual benefits and partnership in mind, the STSC may help such stakeholders realise their own sustainability goals. Similarly, capacity building that is founded on membership resources can equally draw on these synergistic processes and others to undertake specific tasks detailed in the business plan. Stakeholders Supporting the Vision In conclusion to this vision, attention should not rest on the objectives, but turned towards the organizational drivers of the vision, and those people who will realize it. A core team of stakeholders has steered the vision to this new level of organisation. Recently over 60 letters of support for the STSC process have come from across the globe and hundreds of individuals showed support during the consultation activities leading to the preparation of the STSC feasibility study. Multi-stakeholder representation and categorization of the STSC members has been achieved by establishing: • a nine key stakeholder classification model • four overall stakeholder categories • four territorial regions Specification of representatives of each group has facilitated the development of the clear governance structure shown in this vision. Active participation of all stakeholders working in coherent partnership actions will ensure continued support of the STSC initiative. In all three phases of the STSC’s development it will be up to the stakeholders who fill the boxes of this membership grid (see Figure A 6) to take an active role in supporting those aspects of the STSC business plan which are synergistic to their own organizations' aims and activities. (see Section 2 ch7). Consultant’s Report Dec 2006 30
  31. 31. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 To achieve both a key donor and a bottom up-funded process, the stakeholders need to see each other acting together as ‘a coalition of the willing’ actively contributing to partnership development in order to give the subject or certification the weight and attention it deserves in the global development of sustainable tourism. Any stakeholder reading this document who can see the value of the STSC’s contribution to sustainable tourism, and see the clarity of preparation and planning that has bought it to this point, could use the STSC as a vehicle to support the common effort to reach sustainable development goals as a whole. Over the next 5-7 years the STSC can oversee the creation and emergence of a tourism brand - a household logo or slogan - recognizable by consumers as a trustworthy mark showing a sustainable tourism process is governing this or that product/service. This brand can accompany the logos or seals of accredited certification programs to makes green purchasing on a global basis that much easier. That brand needs to be championed by the stakeholders in the coalition to the point where this vision is made into reality. Figure A7. STSC Stakeholder Grid that identifies members of the Knowledge Network on Sustainable Tourism Certification Stakeholder Category Africa Americas Asia & Europe Global Pacific Certification bodies certification programs accreditation organizations Donors, Government and Intergovernmental Representation governments intergovernmental institutions donor and financial institutions Private Sector Intermediaries, tour operators tourism services industry associations tour operators NGOS Consumer associations NGOs and consumer associations tourists Consultant’s Report Dec 2006 31
  32. 32. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 To turn the vision into the actual establishment process, the practical next steps of development can quickly move towards the current coordinators (Rainforest Alliance et al) constituting a slightly enlarged Temporary Steering Committee, with invitations going out organizations who’s presence helps round off the multi-stakeholder nature of the temporary committee. This group should then agree on: • a short term work program 2006/2007 as defined in the network stage tasks • a work group to make this happen 2. Recommendation for STSC Work Programme: 1) Adopt the above text as the working vision for the STSC. This should then be regarded as the blueprint that accompanies the executive summary, and acts immediately as a guide for the work of the temporary steering committee. ‘That’s the end of the Vision document. Section B now talks you through the full STSC Governance System, Business Plan and Marketing Strategy in more detail …’ Consultant’s Report Dec 2006 32
  33. 33. Business Plan and marketing Strategy for the Sustainable Tourism Stewardship Council 2007 -2012 8. Conclusion 7. A Multi-Stakeholder 1. The Global Road Map Organization 2007 -2012 Framework 6. A 2. An Stakeholder Section B Implementation Grid of Strategy for the Contacts for Specific Establishment Information Characteristics of the STSC and Support of the STSC . 5. Marketing 3. Specific Operational, Strategy Administrative and Growth and Financial Implications Development Projects of the Implementation 2007 - 2012 Strategy 4. A Business Model of Financial Sustainability Cost & Revenue Accounts 2007-2012 Consultant’s Report Dec 2006 33

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