Scott Wayne, President of SW Associates, conducted a clinic on tourism as a tool for international development with MSFS students at Georgetown University's School of Foreign Service. The clinic provided an opportunity for students to discuss how tourism can be a tool for international development and source of sustainability. Note: The Value Chain example is based on data provided by a tour operator in Tanzania.

1. International Travel & Tourism
Development
MSFS Clinic
Presented by:
Scott Wayne, President, SW Associates
Sustainable Development through Tourism

2. Agenda
• Introductions
• What is Tourism?
• What is a Tourism Economy? Why is it difficult to measure?
• Value chain analysis.
• What are the Key Components of the Travel and Tourism
Industry?
• SWOT analysis
• What are the Implications for a country’s domestic and
foreign policies, as well as development programs?
• Examples of Components, Policies and Plans from your
experiences based on geographic and subject specialties,
and interest areas. Positive and Negative impacts and
implications?
• A few examples from Scott’s recent experiences.

3. • International Conference on Travel &
Tourism Statistics, Ottawa, June 1991.
• Concepts, Definitions, Classifications of
Tourism Demand, Supply & Expenditures
• Challenge of defining: Tourism is a
demand concept that refers to all activities
of visitors.
• Private Sector, Demand Driven with
Government Guidance (& Hindrance)
What is Tourism?

4. "Tourism comprises the activities of persons
traveling to and staying in places outside
their usual environment for not more than
one consecutive year for leisure, business
and other purposes."
UNWTO Definition of Tourism

5. • Tourism that takes full account of its
current and future economic, social and
environmental impacts, addressing the
needs of visitors, the industry, the
environment and host communities.
UNWTO Definition of Sustainable
Tourism

6. Classification of Inbound Travellers
Multiple
Purposes
of Travel
What are the
implications
for the
destination’s
economy?

7. • Direct effects = Increase in
number of tourists staying overnight in
hotels increases sales increases in
hotel wages and salaries, taxes, and
supplies and services are direct
effects.
Measuring Direct, indirect, and induced Economic
Impacts of Tourism
• Induced effects = Changes in
economic activity resulting from
household spending of income
earned directly or indirectly as a
result of tourism spending.
– For example, hotel and linen
supply employees supported
directly or indirectly by tourism.
• Indirect effects = Changes
resulting from various
rounds of re-spending of the
hotel's receipts in other
backward-linked industries
(i.e., industries supplying
products and services to
hotels).
– Changes in sales, jobs,
and income in linen supply
industry, for example,
represent indirect effects.
– Businesses supplying
products and services to
the linen supply industry
represent another round of
indirect effects.

8. TRAVEL & TOURISM INDUSTRY
Accommodation, recreation, catering,
entertainment, transportation, and
other related services
TRAVEL & TOURISM ECONOMY
Printing/Publishing,concrete, utilities,
financial services, furnishing &
equipment suppliers, foods, security,
administration, ship building,
beverage supply, iron/steel, aircraft
manufacturing,wood, mining,
chemicals, textiles, oil/gas suppliers,
plastics, sanitation services, metal
products, computers, resort
development, wholesalers, rental car
manufacturing, laundry services.

10. From Booking to Tours &From Booking to Tours &From Booking to Tours &From Booking to Tours &
Services InServices InServices InServices In----CountryCountryCountryCountry
Booking
• Agency
• Online
• Tour operator
Transportation
• Air
• Car rental
• Taxi
• Ferry
Accommodation
• Hotels
• Apartments
• Shops in hotels
Food & Beverages
• Restaurants
• Bars
• Food kiosks
• Food souvenirs
Handicrafts
• Shops
• Craftsmen
• Workshops
Tourism Assets
• Natural – Wildlife,
Parks, Mountains,
Lakes
• Cultural –
Archaeological sites,
museums, art, music.
Leisure & Tours
• Tour guides
• Tours
• Wellness
Support Services
• Info Centers
• Grocery
• Laundry
• Banking

11. From Purchase Overseas toFrom Purchase Overseas toFrom Purchase Overseas toFrom Purchase Overseas to
Money Entering TanzaniaMoney Entering TanzaniaMoney Entering TanzaniaMoney Entering Tanzania
At long last, I haveAt long last, I haveAt long last, I haveAt long last, I have 8 days and8 days and8 days and8 days and
$8000$8000$8000$8000 to visit the Serengeti andto visit the Serengeti andto visit the Serengeti andto visit the Serengeti and
Ngorongoro! My travel agent isNgorongoro! My travel agent isNgorongoro! My travel agent isNgorongoro! My travel agent is
booking with a great operator.booking with a great operator.booking with a great operator.booking with a great operator.
Joe paid for his dreamJoe paid for his dreamJoe paid for his dreamJoe paid for his dream
trip. I subtracted mytrip. I subtracted mytrip. I subtracted mytrip. I subtracted my
24% commission24% commission24% commission24% commission andandandand
booked with the “Onbooked with the “Onbooked with the “Onbooked with the “On
Safari” Agency.Safari” Agency.Safari” Agency.Safari” Agency.
Mike called me to bookMike called me to bookMike called me to bookMike called me to book
Joe’s Trip. He paidJoe’s Trip. He paidJoe’s Trip. He paidJoe’s Trip. He paid
$6080. I deducted my$6080. I deducted my$6080. I deducted my$6080. I deducted my
14% commission14% commission14% commission14% commission andandandand
transferred $5228 totransferred $5228 totransferred $5228 totransferred $5228 to
the Serengeti Lodge.the Serengeti Lodge.the Serengeti Lodge.the Serengeti Lodge.
$5228 to$5228 to$5228 to$5228 to
TanzaniaTanzaniaTanzaniaTanzania

12. What happens when theWhat happens when theWhat happens when theWhat happens when the
money enters Tanzania.money enters Tanzania.money enters Tanzania.money enters Tanzania.
Ok, “On Safari” sent me $5228Ok, “On Safari” sent me $5228Ok, “On Safari” sent me $5228Ok, “On Safari” sent me $5228
for Joe’s stay offor Joe’s stay offor Joe’s stay offor Joe’s stay of 8 nights.8 nights.8 nights.8 nights. MyMyMyMy
staff and I are glad to have thestaff and I are glad to have thestaff and I are glad to have thestaff and I are glad to have the
business, but first things firstbusiness, but first things firstbusiness, but first things firstbusiness, but first things first –––– aaaa
few taxes and feesfew taxes and feesfew taxes and feesfew taxes and fees to pay.to pay.to pay.to pay.
AyAyAyAy yiyiyiyi yiyiyiyi…let’s see what…let’s see what…let’s see what…let’s see what
we have to pay. I’m allwe have to pay. I’m allwe have to pay. I’m allwe have to pay. I’m all
for paying our fairfor paying our fairfor paying our fairfor paying our fair
share, but this isshare, but this isshare, but this isshare, but this is
painful. Let’s do thepainful. Let’s do thepainful. Let’s do thepainful. Let’s do the
math.math.math.math.
Serengeti Lodge Serengeti Lodge
Ok, I start with $5228Ok, I start with $5228Ok, I start with $5228Ok, I start with $5228
and then pay VAT, TDLand then pay VAT, TDLand then pay VAT, TDLand then pay VAT, TDL
and Park Fees , whichand Park Fees , whichand Park Fees , whichand Park Fees , which
leaves me with $4800leaves me with $4800leaves me with $4800leaves me with $4800
$4800$4800$4800$4800
remainingremainingremainingremaining

13. What happens when theWhat happens when theWhat happens when theWhat happens when the
money enters Tanzania.money enters Tanzania.money enters Tanzania.money enters Tanzania.
I don’t want to bore youI don’t want to bore youI don’t want to bore youI don’t want to bore you
with a long list and we dowith a long list and we dowith a long list and we dowith a long list and we do
not want to whine, but wenot want to whine, but wenot want to whine, but wenot want to whine, but we
need to mention a fewneed to mention a fewneed to mention a fewneed to mention a few
numbers.numbers.numbers.numbers.
So here is what happens:So here is what happens:So here is what happens:So here is what happens:
$4800 less $4368 for$4800 less $4368 for$4800 less $4368 for$4800 less $4368 for
Cost of sales, Salaries,Cost of sales, Salaries,Cost of sales, Salaries,Cost of sales, Salaries,
Marketing and Overhead =Marketing and Overhead =Marketing and Overhead =Marketing and Overhead =
$416.$416.$416.$416.
Then I pay the Corporation TaxThen I pay the Corporation TaxThen I pay the Corporation TaxThen I pay the Corporation Tax
of 38% and am left with $256.of 38% and am left with $256.of 38% and am left with $256.of 38% and am left with $256.

14. What happens when theWhat happens when theWhat happens when theWhat happens when the
money enters Tanzania.money enters Tanzania.money enters Tanzania.money enters Tanzania.
So…the Lodge is good forSo…the Lodge is good forSo…the Lodge is good forSo…the Lodge is good for
Government: Over $1500 inGovernment: Over $1500 inGovernment: Over $1500 inGovernment: Over $1500 in
payments from a single visitor’spayments from a single visitor’spayments from a single visitor’spayments from a single visitor’s
stay.stay.stay.stay.
It is also good for the staff andIt is also good for the staff andIt is also good for the staff andIt is also good for the staff and
their families. And good for ourtheir families. And good for ourtheir families. And good for ourtheir families. And good for our
guests.guests.guests.guests.
But a business is supposed to beBut a business is supposed to beBut a business is supposed to beBut a business is supposed to be
profitable and the math is not adding upprofitable and the math is not adding upprofitable and the math is not adding upprofitable and the math is not adding up
well for me.well for me.well for me.well for me.
Either I increase prices, which is going toEither I increase prices, which is going toEither I increase prices, which is going toEither I increase prices, which is going to
make me less competitive, or I close andmake me less competitive, or I close andmake me less competitive, or I close andmake me less competitive, or I close and
find a more profitable business.find a more profitable business.find a more profitable business.find a more profitable business.
Or I work with HAT and the Government toOr I work with HAT and the Government toOr I work with HAT and the Government toOr I work with HAT and the Government to
find “Winfind “Winfind “Winfind “Win----Win” Solutions!Win” Solutions!Win” Solutions!Win” Solutions!

15. • What are the implications for domestic and
foreign policy, as well as for development
programs?:
– Infrastructure
– Human Resource Development
– Product Development and Marketing
– Policymaking and Investment Climate
Main Industry Components

16. Tourism-Related Infrastructure (1)
• Transport
– Aviation
– Ground
– Maritime
• Domestic
– Development
Strategy Priorities
• Foreign
– Open Skies
– Bilateral Air
Agreements
– Law of Sea,
Territorial Waters
• Development
– Financing
– Concessions
– PPPs

17. • Pacific Islands
Air Services
Agreement
• Yamoussoukro
Declaration
Concerning The
Liberalization Of
Access To Air
Transport
Markets In Africa
• Others?
Multilateral Air Agreements

18. Tourism-Related Infrastructure (2)
• Information &
Communications
Technology
– Internet
– Telecom
– Other wireless
• Domestic
– Development
Strategy Priorities
• Foreign
– International
ownership
– Sea cable access
• Development
– Financing
– Concessions
– PPPs
– Implications

21. Tourism-Related Human Resources
• Human
Resources
– Education
– Vocational
Training
– Labor Growth
• Domestic
– Education &
Labor Policies
• Foreign
– Movement of
Labor &
Immigration
• Development
– Public system
level vs Private
sector needs
– PPPs
– Job creation

22. GOVERNMENT
1 . Government tourism authorities (GTA's) should actively communicate
the importance and contribution of the tourism industry.
2 . G TA’s should increase public awareness of career opportunities in the
travel and tourism industry.
3 . GTA’s should increase the number of tourism training and educational
institutions.
4 . GTA's should establish joint private-public sector task forces where
training is not required by law.
5 . GTA's and educational institutions should establish a series of no/low
cost teacher training courses.
6 . GTA's should regulate and/or certify all external tourism training and
educational institutions.
7. Mexico’s Ministry of Tourism, national education authorities and tourism
industry representatives should establish a tripartite council to set out
standards for skills.
THE TRAVEL AND TOURISM INDUSTRY
1. Travel and tourism employers should increase the budgets assigned to
human resources development.
2 . The Mexican travel and tourism industry should create a national body to
serve as a unified voice.
3 . The Mexican travel and tourism industry must strive to restructure itself
from an industry that employs people in jobs, to an industry that offers
lifetime careers .
4 . The Mexican travel and tourism industry should create more realistic
employment expectations.
5 . The Mexican travel and tourism industry should provide more
opportunities for internships and practical training.
6. The Mexican travel and tourism industry must improve the level of its
employees’ skills in the areas of foreign languages, computers and safety
and security skills.

23. Sierra Leone
Vanuatu

25. • Product &
Experience
Development
– Tours
– Activities
– Events
• Product Segments
– Examples: Specialty
Travel Index
Product Development & Marketing
• Tailored to market
targets
• Market Research.
How?
• Traditional & Social
Media
• Marketing: The Four
P’s

26. Product Experiences

27. Product Experiences & Branding
• Name an experience, place or activity that
epitomizes your hometown or country. A brand
experience?
• Cincinnati
• Argentina
• Manila
• Providence
• Beirut
• Mexico City
• San Francisco
• Dayton, Ohio
• Providence
• Beirut

28. The Experience Economy
Evolution of the Birthday Cake & Party
Place Branding Influences
Investment and Policy

29. • Tourism Policy
• Investment Policy
• Land Tenure
• Labor
• Health
• Economic & Trade
• Relationship with
Private Sector
Policymaking & Investment Climate
Disruptors: The Sharing Economy

31. Zambia Tourism Policy

32. SWOT analysis & Tourism

33. • How do your geographic and subject
specialties and interests affect and are
affected by the travel and tourism
industry?
• Positives and negatives.
• Morocco, Argentina, Lebanon, Mexico,
Nepal, Sri Lanka…
• Internet access, the sharing economy,
human rights, sustainability…
Examples from your experience &
backgrounds

34. • Cook Islands (Energy & Waste management)
• Fiji (Infrastructure improvements, Education)
• Vanuatu (Land, Product Diversification,
Cruise Growth effects)
• Papua New Guinea (Product Diversification,
Education, Infrastructure, Tourism Strategy)
• Saudi Arabia (Vision 2030, economic
diversification through development of
cultural assets)…
Some Other Recent Examples
from Scott’s Experience

35. Thank you!
Scott Wayne
SW Associates, LLC – Sustainable
Development through Tourism
Scottwayne@gmail.com
www.sw-associates.net
@scottwayne1