7 shaun mann-general presentation on wbg integrated tourism solution

1. AN INTEGRATED
WBG SUSTAINABLE
TOURISM
SOLUTION
J U L Y , 2 0 1 5

2. 1
OUR OBJECTIVE
To alleviate poverty and boost shared prosperity by leveraging tourism
as a driver of growth and jobs to help clients achieve prosperous and
inclusive communities
Mega trends shaping the WBG approach to tourism
• Global share of tourism in emerging economies rose from 3% in 1950 to 43% in
2010: tourism is more important than ever for our clients.
• Many of our clients have a better understanding of economic benefits and
linkages and connections to other sectors such as infrastructure,
environment, urban, coastal management, private sector development.

3. WHY TOURISM MATTERS
Globally, travel & tourism employs 50% women and 50%
youthEvery $1 spent on tourism generates $3.2 in GDP across the
economy
Strong link to the twin goals -- poverty reduction and boosting shared prosperity --
and a driver of sustainable growth
2
A source of preservation of cultural and environmental assets for future
generations

4. 1947
1970s
1990s
2000s
Going
Forward
First loan:
Europe post-
war
reconstruction
of
infrastructure
and city
landmarks
Large-scale
enclave resort
infrastructure
developments
Dominican
Republic
Egypt
Bali
Mexico
Turkey
Sustainable
development
concept takes
root and
tourism is
supported
through
environment
projects
Kenya
Uganda
South
Africa
Multi-sector
approach,
sustainability
focus integrated
with cultural
heritage
Honduras
Georgia
Jordan
Integrated multi-
sector
programmatic
approach by WBG
(IBRD/IDA, IFC,
MIGA)
India
Albania
Tanzania
Peru
Ecuador
3
THE EVOLVING WBG APPROACH TO
SUSTAINABLE TOURISM

5. 4
THE EVOLVING WBG APPROACH TO
SUSTAINABLE TOURISM
The Good Stuff
Substantial portfolio: 2014 WBG estimated tourism portfolio is $3.6B
A core of expertise: 20-30 experienced project managers & other technical
specialists are spread across the WBG
The Challenges
Inconsistent understanding of tourism across the WBG, compounded by the lack of a
common definition make it difficult to assess the portfolio and measure impact
Moving to an integrated approach leads to higher transaction costs internally and
requires greater mobilization of country level political economy

6. 5
Moving from our current segmented offers . . .
Building
Communities
 Enhancing
livelihoods
 Promoting
entrepreneurship
 Skills development
Mobilizing
Investments
 Identifying & financing
investments
 Designing and
implementing PPPs
 Commercializing key
assets
Valorizing Cultural
Heritage and
Protecting the
Environment
 CH conservation and
management
 Downtown rehab
 Coastal zone
management
Improving
Infrastructure
 Access to basic
services
 Transport and
mobility
 Business facilities &
leisure
infrastructure
Strengthening
Markets
 Improving market
offering
 Removing regulatory
constraints
NEW VALUE PROPOSITION: AN INTEGRATED SUSTAINABLE
TOURISM SOLUTION
5

7. Integrated Client Offer
• Common objective
• Bundling development solutions for
clients (IFC, IDA/IBRD, MIGA)
• Coordinated implementation
leveraging global expertise through
GPs
• Evidence-based approach focused on
twin goals and sustainability
NEW VALUE PROPOSITION: AN INTEGRATED SUSTAINABLE
TOURISM SOLUTION
Improving
Infrastructure
Strengthening
Markets
Building
Communities
Mobilizing
Investments
Valorizing
Cultural
Heritage &
Protecting the
Environment
 Identify clients where
WBG sustainable tourism
interventions can lead
to a transformational
impact
 Invest in analytics and
assessment to
demonstrate impact
Building partnerships
 Build partnerships in both
operations and knowledge
sharing
 Tour operators, airlines,
management companies
 UNWTO, WTTC, WWF,
UNESCO, World Youth
Forum, National
Geographic, ICAO, IATA
Working with internal
and external clients
. . . to an integrated approach
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8. Coordinated tourism solution - GEORGIA
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Why Georgia?
• Twin shocks to economy in 2008 reversed a
positive growth trend (conflict with Russia
and global financial crisis)
• Poverty increased to 22% and unemployment
to 18%
Georgia requested WBG assistance to:
• Promote Local Economic Development in
lagging regions
• Establish new tourism destinations to boost
tourist arrivals and spending
• Share global knowledge and operational
experience in Cultural Heritage and
Sustainable Tourism
WBG Role:
• Collaborative approach with IDA/IBRD, IFC,
and MIGA
• Catalyze private sector investment
• Leverage donor funding
PUTTING IT IN PRACTICE

9. 8
WBG response
• US$200 million Regional Development Program targeting four
regions.
• Integrated approach to tourism, cultural heritage & municipal
infrastructure, marketing & promotion, workforce development,
institutional capacity building, aiming at leveraging private
sector and maximizing economic and human development
impacts
Close partnership of IDA/IBRD-IFC
• Joint preparation and implementation
• IFC credits to investors incentivized under the project (Pi4Pi)
• Joint WB-IFC Advisory analytical work (Tourism Strategies,
Destination Management Organization, revival of Tskaltubo town
as a World Class thermal water and spa destination)
• Rolling out of the Georgia program in Armenia and Azerbaijan
Transformational results
• Regeneration of historic cities and improved tourism
infrastructure
• 25% increase in arrivals and spending; 30% increase in beds
PUTTING IT IN PRACTICE
Coordinated tourism solution - GEORGIA

10. ONE OF THE SEVEN WONDERS OF THE
WORLD…
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SURROUNDED BY SLUMS AND A POLLUTED
SACRED RIVER
OPPORTUNITY
• Unrivaled potential - 5,000 years of history, 200 million
craftspeople, 30 UNESCO World Heritage Sites
• Protection of emblematic natural and cultural assets
• India gets 1/7th the number of tourists as Paris
• Huge unmet domestic and international market demand
and associated need for private investment
• Improved local living conditions and livelihoods; bringing
people out of poverty
• US$ billions in locally earned tourist expenditures
• Improved government services delivery
BINDING CONSTRAINTS
• Many communities completely disconnected from
tourism income streams
• Infrastructure gaps
• Poorly targeted private sector investment
• Skills gaps
• Product quality deficiencies
• Lack of institutional capacity
• Poor image
• Complex bureaucracy stifling investment
PUTTING IT IN PRACTICE
Integrated tourism solution - INDIA

11. The WBG is delivering a comprehensive program, anchored in the Country Partnership Framework,
that draws together states and localities in a series of related interventions.
Program strongly supported by Prime Minister & State Governments
WB investment lending under preparation for asset
development, productive livelihoods, urban regeneration,
valorization of cultural assets, and environmental
enhancement
WB/IFC technical assistance, advisory, and Knowledge
Services to develop the Buddhist Circuit, & Public-Private
Dialogue platforms to link & mobilize stakeholders at the
destination level
IFC investments & PPPs engaging international and local
investors in hotels and tourism-related assets and
infrastructure
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PUTTING IT IN PRACTICE
Integrated tourism solution - INDIA