GSTAGlobal SustainableTourism AlliancePROJECT DEVELOPMENTFOR SUSTAINABLE TOURISMA STEP BY STEP APPROACH5Sustainable Tourism: International Cooperation for DevelopmentO N L I N E TO O L K I T A N D R E S O U R C E S E R I E S2

Sustainable Tourism: International Cooperation for DevelopmentON L IN E TO O L K IT AND RE S O U RCE S E RIE S 51ST101. Global TourismAchieving Sustainable GoalsST102. Project Development for Sustainable TourismA Step by Step ApproachST103. Tourism Destination ManagementAchieving Sustainable and Competitive ResultsST104. Tourism Investment and FinanceAccessing Sustainable Funding and Social Impact CapitalST105. Sustainable Tourism Enterprise DevelopmentA Business Planning ApproachST106. Tourism Workforce DevelopmentA Guide to Assessing and Designing ProgramsST107. Tourism and ConservationSustainable Models and StrategiesST108. Scientific, Academic, Volunteer, and Educational TravelConnecting Responsible Travelers with Sustainable DestinationsST109. Powering TourismElectrification and Efficiency Options for Rural Tourism Facilities

GSTAGlobal SustainableTourism AlliancePROJECT DEVELOPMENTFOR SUSTAINABLE TOURISMA STEP BY STEP APPROACHSustainable Tourism: International Cooperation for DevelopmentON L I NE TO O L K I T AN D R ES O U R CE S ER I ESPrimary AuthorEileen GutierrezContributorsRoberta Hilbruner, USAIDDonald E. Hawkins, George Washington UniversityThis publication is made possible by the support of the American People through the United StatesAgency for International Development to the Global Sustainable Tourism Alliance cooperative agreement#EPP-A-00-06-00002-00. The contents of this publication are the sole responsibility of the author(s) anddo not necessarily reflect the views of USAID or the United States Government.

Table of ContentsTable of Contents . 1Preface. 2Acronyms . 4Unit 1 — Sustainable Tourism Project Concept Development. 5Unit 2 — Developing Sustainable Tourism Projects for Funding . 11Unit 3 — Working with Stakeholders . 15Unit 4 — Providing Background and Context. 26Unit 5 — Value Chain Analysis . 40Unit 6 — Major Activities, Monitoring Plans, and Project Timelines. 44Unit 7 — Describing Project Management Structure and Estimating Project Costs. 57Unit 8 — Project Concept Submissions. 66Glossary . 71References. 74In accordance with Title 17 U.S.C. section 107, any copyrighted material herein is distributedwithout profit or payment for non-profit research and educational purposes only. If you wish touse copyrighted materials from this publication for purposes of your own that go beyond “fairuse,” you must obtain permission from the copyright owner.International Institute for Tourism StudiesThe George Washington University 2201 G Street, NWWashington, DC 20052

PrefaceThis course introduces the participant to developing a sustainable tourism project thatcontributes to international development goals. Upon finishing the course, participants willhave the tools necessary to complete a successful project concept note or similar proposal atthe design stage. Participants will gain an understanding of standard requirements for conceptplanning and design and how best to gather needed information. Participants will learnapproaches to rapidly assess project areas and write project goals, objectives, and activitiesthat embrace the principles of sustainable tourism. Upon completion of this course,participants will be able to construct a concept note for submission to bi-lateral, multi-lateral,and other donors for sustainable tourism projects.The target audience consists of professionals engaged in development assistance indeveloping countries and working on sustainable tourism projects, including staff from donors(such as USAID), government agencies, NGOs, consulting firms, universities, businesses,and related entities. Some specific examples of audiences which would benefit include: Local authorities such as a destination management organization, tourism office,promotion agency, or organization exercising governance power over tourist activitiesPublic, semi-public, or civil society administrators or professionals responsible for thedevelopment, promotion, or organization of tourism activitiesDestination management companies responsible for managing commercial activitiesfor city, theme park, or resort destinationsLocal, public, or private tourism operators offering transportation, lodging, food, space,attractions, events, or others concerned with enhancing the long-term sustainabilityand competitiveness of tourism destinationsConsultants involved in tourism planning and developmentUniversity professors teaching tourism or planning coursesWhether developing a canoe trip or a national ecotourism investment program, eachsustainable tourism project passes through a life cycle which generally begins with developinga project concept. The project concept note or proposal is a key planning and design tool,which most funding organizations require as part of their approval process. It describes inclear terms the projects goals and objectives; the background surrounding the issues; the keychallenges and opportunities involved; main activities planned; how outcomes may bemeasured; the organizations involved and their roles; and a budget estimate.Producing a successful sustainable tourism project concept involves early project planningand coordination efforts. For sustainable tourism this planning typically involves a rapidassessment process of economic, environmental, and social contexts where stakeholders’involvement greatly facilitates an understanding of the project area and agreement on projectgoals, objectives, and activities.Context mapping, value chain analysis, and other participatory approaches such as Systemwide Collaborative Action for Livelihoods and the Environment (SCALE ) and the TourismAssessment Process (TAP) are tools that rapidly gather information for a sustainable tourismProject Development for Sustainable Tourism/2

project concept note. They guide the participant on how to assess: the structure of the tourismindustry; supply and demand; environmental and social considerations; and, potential projectactivities and strategies. By employing participatory approaches throughout these earlyassessments organizers can identify organizations and individuals needed to support andimplement the project.Donors will often require that the concept note include a performance plan and potentialindicators, i.e., number of hectares under improved environmental management as a result ofthe project. Indicators can be economic, environmental, or socio-cultural and reflect themeasured area or activity. Donors may also require standard formats, such as a logicalframework, casual models, and results framework to summarize major goals, objectives,activities, and performance indicators.This course provides a general introduction to tools used by sustainable tourism developmentprofessionals to complete project concept notes. A major output of this distance learning isthat participants develop a concept note for a sustainable tourism project. Participants wouldutilize one or more courses which follow to further develop specific content related to a chosenarea of focus, such as investment and finance, business planning, and tourism destinationmanagement.The majority of the information in this course exists thanks to the dedication of professionalswho have invested uncountable hours synthesizing their experiences in the field. In particular,Roberta Hilbruner of the Social Change Communication/Sustainable Tourism Developmentunit at USAID and Dr. Donald Hawkins, Eisenhower Professor of Tourism Policy at TheGeorge Washington University have ceaselessly supported sustainable tourism as adevelopment approach and captured many lessons learned in this field of growing importance.Their contributions to this course have been instrumental.The Global Sustainable Tourism Alliance Management Partners — Academy for EducationalDevelopment, The George Washington University, Solimar International, and The NatureConservancy — provided helpful guidance.We would like to express our deep appreciation and gratitude to a number of individuals whoshared their knowledge and experience in the production of this publication, particularly to oureditor, Jon Kohl and to Annessa Kaufman and Kristin Lamoureux of George WashingtonUniversity.We also express our appreciation to the World Tourism Organization and its ThemisFoundation for permission to utilize information from their publications and to pilot test thispublication.Eileen GutierrezProject Development for Sustainable Tourism/3

AcronymsAED — Academy for Educational DevelopmentAETS — Alianza Ecuatoriana del Turismo Sostenible/Ecuadorian Sustainable TourismAlliance ProgramAOTR — Agreement Officer Technical RepresentativeCBO — Community-based OrganizationCDF — Comprehensive Development FrameworkDFID — UK’s Department for International DevelopmentDSTA — Dominican Sustainable Tourism AllianceGDP — Gross Domestic ProductGEF — Global Environmental FacilityGSTA — Global Sustainable Tourism AllianceGSTA/PD — Pay Dogon (Mali) Sustainable Tourism Alliance ProgramGW — The George Washington UniversityHIV/AIDS — Human Immunodeficiency Virus/Acquired Immunodeficiency SyndromeIAD — Inter-American Development BankIPCC — Inter-Governmental Panel on Climate ChangeLFA — Logical Framework ApproachMDGs — Millennium Development GoalsMOU — Memorandum of UnderstandingNGO — Non-Governmental OrganizationNRM — Natural Resource ManagementNTFP — Non-Timber Forest ProductsNWP — Nature Wealth and PowerPMP — Performance Monitoring PlanRFA — Request for ApplicationsRFP — Request for ProposalsSAVE — Scientific and Volunteer TourismSCALE — System-wide Collaborative Action for Livelihoods and the EnvironmentSME — Small- and Medium-Sized EnterprisesSWOT — Strengths, Weaknesses, Opportunities, and ThreatsTAG — Technical Advisory GroupTAP — Linking Tourism, Conservation and CommunitiesUN — United NationsUNED — United Nations Economic DevelopmentUNWTO — United Nations World Tourism OrganizationUSAID — United States Agency for International DevelopmentProject Development for Sustainable Tourism/4

Unit 1 — Sustainable Tourism Project ConceptDevelopmentAt the end of this unit, participants will be able to: Understand where the project concept fits in the project life cycle.Understand the information donors need and the key criteria they use to evaluateprojects for funding.Become familiar with major sustainable tourism development themes.Introduction: Project Life CycleDevelopment projects typically have a life cycle (Figure 1.1) that begins with projectpreparation and planning, then approval, that leads into detailed activity planning andimplementation, and ends with completion and final reporting.Figure 1.1. Project Life Cycle (IAD, 2011a)Developing a concept is part of the preparation phase. During preparation and planningorganizers may identify a general project concept based on an obvious issue, for example,developing tourism enterprises that provide jobs and income without degrading ecosystems.They may also target sources of funding such as aid banks, donors, and governmentprograms. Equally important is identifying potential implementing agencies — eitherorganizations or people with enough expertise and experience to carry out project activities.Once organizers articulate these basic project aspects, they need to elaborate the specificobjectives and goals. Organizers should work in concert with stakeholders to develop goalsand objectives through a participatory process which captures results in a document that canbe shared with potential funders before advancing to detailed activity planning andProject Development for Sustainable Tourism/5

implementation. The United States Agency for International Development (USAID) definesfour steps that lead to a well-designed project (2011a).1. Clearly define the problem2. Develop a results-oriented program description3. Establish a system for monitoring and evaluating performance and forreporting, using, and sharing performance information4. Agree upon responsibilities for performanceOrganizers define a project concept during preparation in a written document. Organizationsmay refer to this document with various names, for example, project concept note or projectabstract or technical application. Organizers often use the project concept to garneragreement or approval from project stakeholders and supporters such as donors andgovernment. For this course, we focus on how to develop a project concept document thatdescribes a “results-oriented” sustainable tourism project that can be submitted for funding byan aid bank or donor. Results represent the highest level of impact that a project may achieveand are “a significant, intended, and measurable change in the condition of a customer, hostcountry, institutions, or other enti