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Marketing Linkage Of Tourism 
& 
hospitality sector 
Presented By: Ravindra Singh Krishna, 
(MA Tourism Administration III Semester)
Tourism 
Tourism provides a wide range of economic opportunities, especially for 
developing and least developed countries: 
Transport, communications, infrastructure, education, security, health, 
immigration, customs, accommodation, agriculture and creative 
industries
Inclusive Tourism 
Aim? 
•to foster linkages and interaction between the different actors in the tourism industry 
•to form partnerships with private actors and stimulates the local economy 
•to promote the integration of women and the active involvement of local communities 
•to emphasise sustainability by taking environmental, social and economic factors into account 
How? 
•by integrating poor local communities in tourism value chains through active entrepreneurial 
participation 
•by ensuring tourism products/services meet international requirements 
•by providing market expertise, capacity building, policy advocacy, and formal market linkages 
•by working with existing tourism destinations and supply sectors
THE TYPICAL VISITOR JOURNEY
A SIMPLIFIED TOURISM VALUE CHAIN 
(EX. INDIA)
United Nations 
Steering Committee on Tourism for Development 
Delivering as One for 
Tourism 
The SCTD is an innovative approach to Delivering as One: Delivering as One for 
Tourism, as a sectoral approach. It is a transformational partnership. 
SCTD main objectives: 
1. Support Developing countries needs for implementing tourism for development in 
an integrated approach, building on the strengths of each UN agency 
2. Monitor progress of development through DTIS (Diagnostic of Trade 
Integration Study), as well as through new econometric models 
3. Mobilize necessary financial resources through existing funding 
mechanisms (such as EIF), and work towards the creation of a Multi Donors Trust 
Fund for Tourism (for LDCs, and countries -ODA eligible). 
4. Mainstream tourism in the global development agenda, as an instrument for 
development, poverty reduction and a green growth.
SCTD Tourism Services Portfolio 
“Tourism for Development” 
Integrated Tourism 
Development 
The SCTD provides specialized tourism assistance aimed to maximize tourism’s 
capacity to support countries in reaching their development goals, while preserving 
their cultural and environmental assets. The Services Portfolio on Tourism for 
Development compiles the services available to LDCs and developing countries. 
The Services Portfolio makes available over 50 types of services organized around four pillars: 
Areas of intervention Implementing agencies 
UNWTO 
ITC 
UNDP 
UNEP 
ILO 
UNESCO 
UNIDO 
UNCTAD 
WTO 
BBuilding good governance and sustainability in tourism 
Promoting investment in the tourism economy 
Fostering the poverty reduction impact of tourism 
Encouraging human resources development 
1 
2 
3 
4
3. Fostering the poverty reduction impact of tourism 
Reducing poverty by developing value-chain linkages between the tourism 
industry and local producers of goods and services in LDCs 
A. Rationale for working on business linkages for poverty reduction 
-90% of DTIS linked to tourism state the creation of business linkages as key 
challenge. 
-Increasing interest by hotel chains, restaurants and tour operators to invest more in 
local sourcing. 
-Limited capacities and skills of entrepreneurs to meet quality requirements of hotels, 
restaurants and tour operators. 
B. Objective of joint support 
- Maximise the tourism industry’s positive impact on local producers and service 
providers & entrepreneurs (e.g. agro-food, creative industries, services). 
- LDCs able to take advantage of the complementary institutional and technical 
strengths of the different SCTD/UN Agencies (ITC, UNWTO, UNCTAD, UNDP and ILO).
3. Fostering the poverty reduction impact of tourism 
Applying an integrated approach to developing sustainable & inclusive 
business linkages 
A. In-depth feasibility assessment identifying products and services currently sourced 
from abroad by the tourism industry that could potentially be met by local supply. 
B. Facilitate stakeholder meetings to identify business opportunities for the tourism 
industry and how a demand-driven approach can link them with local producers. 
C. Enhance supply capacity, consistency and quality characteristics of local products 
and services to meet demand requirements of tourism industry and their customers. 
D. Cross-cutting: Strengthen support services by trade and tourism support entities 
and affected communities through the development of institutional capacities.
ASSESSMENT OF TOURISM VALUE CHAIN & SERVICE 
PROVIDERS
PRO-POOR INCOME MAPPING 
WsP: woman a significant proportion 
WiM: Women in majority 
EM: Ethnic minority
Linking agriculture to tourism markets 
The Module on Agriculture illustrates possible interventions and 
partnerships between agro products and the tourism industry . 
Aim: To provide farmers and fishermen with the tools they need to assess the 
tourism market, and buyers with the skills to develop sustainable partnerships with 
local producers. 
The target audience: 
•Representatives of farmer community institutions 
•Potential and existing private sector partners 
•Government representatives involved in 
the tourism sector or other related industries 
•Local support organizations (NGOs)
Linking environmental management and climate change 
to tourism markets 
The Environment Management and climate change module shows how to 
manage tourism developments optimally in terms of the environment. 
Aim: To encourage governments, businesses, communities and people to ‘act locally 
while thinking globally’. Information on efficient and effective energy use, 
reduction in wastes, recycling and re-use and guidelines on 
environmental management for eco-hospitality . 
The target audience: 
•Micro, small and medium-sized enterprises (MSME’s) 
•Producer groups, governmental bodies 
•Community institutions & NGOs 
•Tourism industry (Tour operators, Hotels, Restaurants)
Linking artists to tourism markets 
The artistic-cultural training module shows ways to develop local artistic and 
cultural services and marketing these through the tourism value chain. 
Aim: to develop and market local artistic and cultural services. 
The target audience: 
•Public sector offices 
•Private sector associations 
•NGOs supporting the artistic sector 
•Artists’ associations/organizations 
•Private tourism sector (Hotels, Tour operator) 
•Individual artists
Linking handicraft to tourism markets 
The Module on Handicraft products indicates ways for artisans on how to adapt 
their products to international requirements (quality, trends, design…) and link their 
products to tourist markets. 
Aim: to increase the artisans’ income and to provide facilitators with the know-how to 
develop sustainable business linkages between handicraft producers and the tourism 
markets. 
The target audience: 
•Micro, small and medium-sized enterprises 
(MSME’s) 
•Producer groups and associations 
•Governmental bodies 
•NGOs supporting the craft sector
Linking hospitality to tourism markets 
The Hospitality Management manual describes how the hospitality and catering 
industry operates optimally to fulfil guest expectations and needs. 
Aim: To establish an appealing and suitable teaching method for tourist 
establishments in developing countries focus on typical gaps and barriers. 
The target audience: 
•Micro, small and medium-sized enterprises 
(MSME’s) 
•Community institutions and NGOs 
•Tourism industry (Hotels, Restaurants)
Impact Measurement Tool 
Tailor-made for the following sectors: 
• Agro-food products 
• Creative Industries 
• Inclusive Tourism 
Undertaken at 3 stages of the project: 
• start, prior to project implementation (baseline) 
• half-way to be able to take corrective actions 
• completion of project in order to assess final 
impact 
Face to face interviews with beneficiary 
households 
Survey 
A. Social indicators 
B. Economic indicators 
C. Community development 
D. Project-specific information 
(agriculture, textile or tourism 
sector)
Social indicators: 
- Housing situation 
- Literacy and education 
Economic indicators: 
- Annual income 
- Ownership of assets/livestock 
Community development: 
indicators: 
- Nutrition 
- Access to facilities (education, infrastructure, 
health services) 
-Membership of co-operatives 
Product-specific information: 
- Materials used and availability 
- Environmental impact 
Indicators
EXAMPLES OF APPLYING THE IMT - 
RESULTS OF INCLUSIVE TOURISM PROJECT IN INDIA 
SOCIAL INDICATORS: EDUCATION LEVEL – FAMILY MEMBERS 
RESULTS: DECREASE IN ILLITERACY 
37% 
22% 
11% 
5% 5% 5% 
10% 
4% 
2% 
10% 
47% 
12% 
8% 7% 5% 5% 5% 2% 
50% 
40% 
30% 
20% 
10% 
0% 
Illiterate Basic 
education 
not 
completed 
High 
school 
completed 
Pre-school High 
school not 
completed 
Basic 
education 
completed 
Literate University 
completed 
University 
not 
completed 
% of total beneficiaries 
Education level - family members 
2005 2007
RESULTS: APPLYING THE IMT 
ECONOMIC INDICATORS: FAMILY INCOME LEVEL 
RESULTS: INCREASE OF HOUSEHOLDS INCOME 
7% 
32% 
27% 
11% 
4% 3% 4% 
1% 
10% 
6% 
22% 
39% 
14% 
6% 5% 
2% 1% 
6% 
50% 
40% 
30% 
20% 
10% 
0% 
Up to 1/2 
MS 
1/2 - 1 MS 1 - 2 MS 2 - 3 MS 3 - 5 MS 5 - 10 MS More than 
10 MS 
No income Doesn't 
know/No 
answer 
% of total households 
Family income level 
2005 2007 MS :minimum salary
learnt 
• Economic sustainability: 
• Focus on income generating backward linkages 
• Create corporate linkages on local and international level to achieve 
win-sin situation (Cruise ship companies, Hotel chains, etc.) 
• Tap on existing tourism destinations 
• Work only with commercially viable and already existing sectors 
• Coordinated assistance by involving several UN agencies (SCTD) 
• Use enhanced tourism supply capacity as spring board for exports
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Presentation on market linkages

  • 1. Marketing Linkage Of Tourism & hospitality sector Presented By: Ravindra Singh Krishna, (MA Tourism Administration III Semester)
  • 2. Tourism Tourism provides a wide range of economic opportunities, especially for developing and least developed countries: Transport, communications, infrastructure, education, security, health, immigration, customs, accommodation, agriculture and creative industries
  • 3. Inclusive Tourism Aim? •to foster linkages and interaction between the different actors in the tourism industry •to form partnerships with private actors and stimulates the local economy •to promote the integration of women and the active involvement of local communities •to emphasise sustainability by taking environmental, social and economic factors into account How? •by integrating poor local communities in tourism value chains through active entrepreneurial participation •by ensuring tourism products/services meet international requirements •by providing market expertise, capacity building, policy advocacy, and formal market linkages •by working with existing tourism destinations and supply sectors
  • 5. A SIMPLIFIED TOURISM VALUE CHAIN (EX. INDIA)
  • 6. United Nations Steering Committee on Tourism for Development Delivering as One for Tourism The SCTD is an innovative approach to Delivering as One: Delivering as One for Tourism, as a sectoral approach. It is a transformational partnership. SCTD main objectives: 1. Support Developing countries needs for implementing tourism for development in an integrated approach, building on the strengths of each UN agency 2. Monitor progress of development through DTIS (Diagnostic of Trade Integration Study), as well as through new econometric models 3. Mobilize necessary financial resources through existing funding mechanisms (such as EIF), and work towards the creation of a Multi Donors Trust Fund for Tourism (for LDCs, and countries -ODA eligible). 4. Mainstream tourism in the global development agenda, as an instrument for development, poverty reduction and a green growth.
  • 7. SCTD Tourism Services Portfolio “Tourism for Development” Integrated Tourism Development The SCTD provides specialized tourism assistance aimed to maximize tourism’s capacity to support countries in reaching their development goals, while preserving their cultural and environmental assets. The Services Portfolio on Tourism for Development compiles the services available to LDCs and developing countries. The Services Portfolio makes available over 50 types of services organized around four pillars: Areas of intervention Implementing agencies UNWTO ITC UNDP UNEP ILO UNESCO UNIDO UNCTAD WTO BBuilding good governance and sustainability in tourism Promoting investment in the tourism economy Fostering the poverty reduction impact of tourism Encouraging human resources development 1 2 3 4
  • 8. 3. Fostering the poverty reduction impact of tourism Reducing poverty by developing value-chain linkages between the tourism industry and local producers of goods and services in LDCs A. Rationale for working on business linkages for poverty reduction -90% of DTIS linked to tourism state the creation of business linkages as key challenge. -Increasing interest by hotel chains, restaurants and tour operators to invest more in local sourcing. -Limited capacities and skills of entrepreneurs to meet quality requirements of hotels, restaurants and tour operators. B. Objective of joint support - Maximise the tourism industry’s positive impact on local producers and service providers & entrepreneurs (e.g. agro-food, creative industries, services). - LDCs able to take advantage of the complementary institutional and technical strengths of the different SCTD/UN Agencies (ITC, UNWTO, UNCTAD, UNDP and ILO).
  • 9. 3. Fostering the poverty reduction impact of tourism Applying an integrated approach to developing sustainable & inclusive business linkages A. In-depth feasibility assessment identifying products and services currently sourced from abroad by the tourism industry that could potentially be met by local supply. B. Facilitate stakeholder meetings to identify business opportunities for the tourism industry and how a demand-driven approach can link them with local producers. C. Enhance supply capacity, consistency and quality characteristics of local products and services to meet demand requirements of tourism industry and their customers. D. Cross-cutting: Strengthen support services by trade and tourism support entities and affected communities through the development of institutional capacities.
  • 10. ASSESSMENT OF TOURISM VALUE CHAIN & SERVICE PROVIDERS
  • 11. PRO-POOR INCOME MAPPING WsP: woman a significant proportion WiM: Women in majority EM: Ethnic minority
  • 12. Linking agriculture to tourism markets The Module on Agriculture illustrates possible interventions and partnerships between agro products and the tourism industry . Aim: To provide farmers and fishermen with the tools they need to assess the tourism market, and buyers with the skills to develop sustainable partnerships with local producers. The target audience: •Representatives of farmer community institutions •Potential and existing private sector partners •Government representatives involved in the tourism sector or other related industries •Local support organizations (NGOs)
  • 13. Linking environmental management and climate change to tourism markets The Environment Management and climate change module shows how to manage tourism developments optimally in terms of the environment. Aim: To encourage governments, businesses, communities and people to ‘act locally while thinking globally’. Information on efficient and effective energy use, reduction in wastes, recycling and re-use and guidelines on environmental management for eco-hospitality . The target audience: •Micro, small and medium-sized enterprises (MSME’s) •Producer groups, governmental bodies •Community institutions & NGOs •Tourism industry (Tour operators, Hotels, Restaurants)
  • 14. Linking artists to tourism markets The artistic-cultural training module shows ways to develop local artistic and cultural services and marketing these through the tourism value chain. Aim: to develop and market local artistic and cultural services. The target audience: •Public sector offices •Private sector associations •NGOs supporting the artistic sector •Artists’ associations/organizations •Private tourism sector (Hotels, Tour operator) •Individual artists
  • 15. Linking handicraft to tourism markets The Module on Handicraft products indicates ways for artisans on how to adapt their products to international requirements (quality, trends, design…) and link their products to tourist markets. Aim: to increase the artisans’ income and to provide facilitators with the know-how to develop sustainable business linkages between handicraft producers and the tourism markets. The target audience: •Micro, small and medium-sized enterprises (MSME’s) •Producer groups and associations •Governmental bodies •NGOs supporting the craft sector
  • 16. Linking hospitality to tourism markets The Hospitality Management manual describes how the hospitality and catering industry operates optimally to fulfil guest expectations and needs. Aim: To establish an appealing and suitable teaching method for tourist establishments in developing countries focus on typical gaps and barriers. The target audience: •Micro, small and medium-sized enterprises (MSME’s) •Community institutions and NGOs •Tourism industry (Hotels, Restaurants)
  • 17. Impact Measurement Tool Tailor-made for the following sectors: • Agro-food products • Creative Industries • Inclusive Tourism Undertaken at 3 stages of the project: • start, prior to project implementation (baseline) • half-way to be able to take corrective actions • completion of project in order to assess final impact Face to face interviews with beneficiary households Survey A. Social indicators B. Economic indicators C. Community development D. Project-specific information (agriculture, textile or tourism sector)
  • 18. Social indicators: - Housing situation - Literacy and education Economic indicators: - Annual income - Ownership of assets/livestock Community development: indicators: - Nutrition - Access to facilities (education, infrastructure, health services) -Membership of co-operatives Product-specific information: - Materials used and availability - Environmental impact Indicators
  • 19. EXAMPLES OF APPLYING THE IMT - RESULTS OF INCLUSIVE TOURISM PROJECT IN INDIA SOCIAL INDICATORS: EDUCATION LEVEL – FAMILY MEMBERS RESULTS: DECREASE IN ILLITERACY 37% 22% 11% 5% 5% 5% 10% 4% 2% 10% 47% 12% 8% 7% 5% 5% 5% 2% 50% 40% 30% 20% 10% 0% Illiterate Basic education not completed High school completed Pre-school High school not completed Basic education completed Literate University completed University not completed % of total beneficiaries Education level - family members 2005 2007
  • 20. RESULTS: APPLYING THE IMT ECONOMIC INDICATORS: FAMILY INCOME LEVEL RESULTS: INCREASE OF HOUSEHOLDS INCOME 7% 32% 27% 11% 4% 3% 4% 1% 10% 6% 22% 39% 14% 6% 5% 2% 1% 6% 50% 40% 30% 20% 10% 0% Up to 1/2 MS 1/2 - 1 MS 1 - 2 MS 2 - 3 MS 3 - 5 MS 5 - 10 MS More than 10 MS No income Doesn't know/No answer % of total households Family income level 2005 2007 MS :minimum salary
  • 21. learnt • Economic sustainability: • Focus on income generating backward linkages • Create corporate linkages on local and international level to achieve win-sin situation (Cruise ship companies, Hotel chains, etc.) • Tap on existing tourism destinations • Work only with commercially viable and already existing sectors • Coordinated assistance by involving several UN agencies (SCTD) • Use enhanced tourism supply capacity as spring board for exports

Editor's Notes

  1. ITC helps to analyse the typical visitor’s journey to identify opportunities for local producers and providers of services to supply to tourists
  2. Recent example of analysing the Indian tourism value chain and possible backward linkages
  3. 4 areas of intervention, we’ll look especially at fostering poverty reduction, the area where ITC works in with its inclusive tourism approach
  4. CBT IT Based on narrow definition of tourism Tourism conceived as a system Partial Holistic Linkages : forward & backward, linear Vertical & horizontal integration, framework Geographical based and focusing on a ‘target group’ of a community Focus on the community as a whole; oppressed sectors of population, indigenous minorities. Assessment of tourism potential on the community Assessment based also on their interaction and relationship with social capital. Lack of attention to opportunity cost and market demand Aim is to scale up impact on poverty and to help the poor access international market Empower as a linear Empower as a multidimensional concept